Attorney General Cuomo to Investigate Long Island Legal Scam (MORE, CLICK HERE)

AG Cuomo starts investigation into 5 LI districts
NEWSDAY BY ROBERT E. KESSLER - robert.kessler@newsday.com
February 19, 2008

State Attorney General Andrew Cuomo yesterday started an investigation, parallel to an ongoing federal probe, into possible financial misconduct at five Long Island school districts, issuing a subpoena for records at the Hauppauge law firm of Ingerman Smith, according to a spokesman for Cuomo and an attorney for the firm.

Lawrence Reich, a former partner at the law firm, was listed as a partner at Ingerman Smith while five school districts each reported him as a full-time employee to the state, according to a Newsday investigation. Reich has denied any wrongdoing and could not be reached yesterday.

Newsday reported Saturday that a federal grand jury in Central Islip was looking into fraud at districts linked to Reich.

Eastern District federal prosecutors and FBI agents on Friday issued subpoenas to the districts - Baldwin, Bellmore-Merrick High School, Copiague, East Meadow and Harborfields - seeking their financial records.

An attorney for Ingerman Smith, Joseph Conway, said the law firm had received the state subpoena late yesterday.

John Milgrom, a spokesman for Cuomo, said the state subpoena was issued under laws giving the attorney general the power to probe possible fraud related to state funds.

Newsday reported that Reich was able to collect a state pension of more than $61,000 a year because of his alleged full-time status with the districts.

Robert Nardoza, a spokesman for U.S. Attorney Benton Campbell, declined to comment.

Conway, now in private practice in Garden City after serving as head of the U.S. Attorney's Long Island office, said last night that he had been hired recently to represent Ingerman Smith in its dealings with investigators.

The state subpoena, issued by Cuomo's public integrity division, sought firm records on Reich and his dealings with the districts, Conway said.

He said he has been negotiating with federal prosecutors and FBI agents over the records but that under federal law Justice Department officials must approve the subpoenaing of lawyers' records, which could take several days.

Conway said the state subpoena required the firm to turn over its records by mid-March.