Daily Freeman (Kingston, NY)

Ex-supervisor, businessma­n accused of stealing Irene relief money

- Freeman staff

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.

 ?? FILE PHOTO BY WILLIAM J. KEMBLE ?? A house in the Greene County town of Prattsvill­e, N.Y., that was destroyed by flooding from Tropical Storm Irene is shown in September 2011.
FILE PHOTO BY WILLIAM J. KEMBLE A house in the Greene County town of Prattsvill­e, N.Y., that was destroyed by flooding from Tropical Storm Irene is shown in September 2011.

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