County Executive Steve McLaughlin arrested and indicted for allegedly stealing campaign funds

NEW YORK » Attorney General Letitia James announced Wednesday the arrest and indictment of Rensselaer County Executive Steve McLaughlin, 58, for stealing thousands of dollars in campaign contributions.

According to the report, McLaughlin, following his election to County Executive but while still serving in the New York State Assembly, allegedly withdrew $5,000 from his campaign fund and directed that $3,500 of it be given to one of his staffers to pay the candidate’s personal debts.

McLaughlin is charged with third-degree grand larceny for the $3,500 campaign fund theft and first-degree offering a false instrument for filing for the related filing of a financial disclosure report with the New York State Board of Elections on Dec. 4, 2017, claiming that the campaign expenditure was for “consulting,” though it was being diverted for his personal use. If convicted of the felony charges, McLaughlin will be removed from office pursuant to Public Officers Law Section 30(1)(e).

“Elected officials are entrusted to protect and serve, but Mr. McLaughlin allegedly violated that trust by using his campaign funds as a personal piggybank,” Attorney General James stated.

“New Yorkers should have every confidence that the money they donate to their preferred candidates will fund that candidate’s campaign, not personal debts or expenses. My office will continue to root out corruption at every level of government and go after those who abuse public trust for private benefit,” James added.

On Nov. 7, 2017, McLaughlin won the race for Rensselaer County Executive and resigned his Assembly seat in Jan. 2018. It is alleged that also in Nov. 2017, a personal dispute erupted between McLaughlin and a staffer over a $3,500 personal debt owed to the staffer, as well as his possession

of the staffer’s laptop computer and iPad. In response to the staffer’s payment demand, McLaughlin directed a $5,000 check to be drawn from the “Steve McLaughlin for County Executive” campaign fund, payable to Hudson Valley Strategies, a political consulting firm used by McLaughlin. On Nov. 21, 2017, the $5,000 check was deposited into the consulting firm’s bank account. Later that day, a Hudson Valley Strategies principal drafted a $3,500 bank check from the account and delivered it, the laptop, and the iPad to the staffer.

Rensselaer County Legislature Democratic Minority Leaders Peter Grimm and Cindy Doran released the following joint statement calling for McLaughlin to step down.

“For far too long, Rensselaer County residents have endured elections and county governance rife with complaints and allegations of voter fraud, abuse, and most recently voter suppression. Today’s criminal charges, arrest and arraignment of County Executive Steve McLaughlin for Grand Larceny and Offering a False Instrument for Filing by the New York State Attorney General must be taken seriously. As elected Rensselaer County Legislators, we know maintaining the public’s trust is key to the ability to govern, and elected officials must always be held to a higher standard in our democracy. The charges of money laundering of campaign finances for personal use clearly indicate that Steve McLaughlin has violated the public’s trust and confidence in his ability to execute the responsibilities of the office he has been elected to serve. County Executive Steve McLaughlin should do the right thing and resign from his elected position immediately,” the statement from Grimm and Doran read.

The county executive is being represented in court by Capezza Hill, LLP. The law firm did not immediately return requests for comments Wednesday afternoon.

McLaughlin was arraigned Wednesday before Judge Jennifer Sober of Rensselaer County Court and was released on his own recognizance. The third-degree grand larceny charge carries a maximum sentence of two and 1/3 to seven years in prison.

McLaughlin was elected to a second term as the Republican candidate for Rensselaer County Executive last month.