Ex-supervisor, businessman accused of stealing Irene relief money
PRATTSVILLE, N.Y. >> A former town supervisor and another resident of this Greene County town are accused of stealing tens of thousands of dollars in state grant money intended for Tropical Storm Irene recovery efforts, according to federal prosecutors.
An indictment unsealed Friday charges former Supervisor Kory O’Hara, 42, and business owner Stephen Baker, 68, with conspiracy to commit wire fraud, wire fraud, and theft concerning a program that received federal funds, according to U.S. Attorney Grant C. Jaquith. O’Hara also was charged with bank fraud and making false statements in a loan application.
Irene caused significant damage in parts of the Mid-Hudson Valley and Catskills in late August 2011. Prattsville, in northwestern Greene County, was among the hardest-hit communities. Most of the damage in Prattsville occurred when the Schoharie Creek, which runs through the town, poured over its banks.
Communities that bore the brunt of Irene’s damage, and their residents, were given millions of dollars in rehabilitation grants. As Prattsville supervisor, O’Hara entered into various grant agreements, including with the state Housing Trust Fund Corp. and the New York Department of State, the announcement of his indictment stated.
The indictment alleges O’Hara
and Baker conspired to fraudulently obtain grant money.
Between 2013 and 2015, according to authorities, Baker provided O’Hara with false invoices from his Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work on O’Hara’s automotive garage, O’Hara’s Service Station, which Moore’s Homes did not perform.
O’Hara then allegedly issued checks to Moore’s Homes reflecting payment of the invoices, but Baker returned the money, prosecutors said.
O’Hara then allegedly submitted the false invoices and reimbursed checks to Prattsville and the state Housing Trust Fund Corp. to fraudulently obtain $24,915 in grant money from the
New York Main Street Program, according to the indictment.
The indictment further alleges that, between 2014 and 2016, O’Hara submitted the same false invoices and reimbursed checks to the New York Department of State and the state comptroller’s office to fraudulently obtain grant proceeds for Prattsville under the Local Waterfront Revitalization Program.
Also, according to the indictment, O’Hara submitted false invoices to obtain grant proceeds from New York State Electric and Gas Corp. and submitted the same false invoices and made false representations to NBT Bank in applying for a business loan in November 2012.
O’Hara and Baker appeared Friday in Albany before U.S. Magistrate Judge Daniel J. Stewart and were released pending a trial before Senior U.S. District Judge Frederick J. Scullin Jr.