COIJNI'Y COURT OI] THE S]'ATE OF NEW YORK

COTJNI'Y OF MONROF]

'IItE

PITOPLE OF'THI: S]-A]'E

Ot'NEW YORK

-agalnst-

DANIEL LYNCH.
Def'endant.

sTAl'E Ot'NEW
C]OUNT'Y OIr

YORK

MONROE

) ss.:
)

I, Daniel Lynch, the undersigned defendant, have been charged in the

County
court of the State of New york, Monroe county, by Indictment Number
l007AG/13 (the

"lndictment"), with the crimes of Grand Larceny in the Second

Degree, a class ..c,,felony, rn
violation ofPenal Law $ r55.40(r) (two counts)rl Money Laundering
class ''c"

in the Second I)egree, a

t'elony- in violation of penal Law g 470. r5(r

)(bxii)(A) and (iii) (two counls): Gra'd

l,arceny in the fhird Degree, a class "D" felony. in violation of penal

Law $ l 55.35 (six c,unrs]:
Money Laundering in the 1'hird Dcgree, a class "D" felony, in violation
of penal Law $
470. I 0( I xbxixA) and (iii) (one count); conspiracy in
the Fourth Degree, a class .,8,' felony, in
violation ofPenal Law $ 105.10( l ) (one count); Falsifying Business
Records in the Firsr Degree,
a class "E" felony, in violation of pcnal Law r 75. r 0 (two
counts); and combination in
$
Restrainl of l'rade and Competition. a class "fr" felony, in violation
ofGeneral Business Law $$
340 and 341. also known as a violation ofNeu, york State's
Donne y Act (fbur counts).

'ln

a decisior and order dated April 23,2015, the coun

severed count l9 llom the rest ofthe counts in Indictment
Number l007AG/l3 count lg char8es Grand Larceny in the
seconJ oegree and is one ofthe two GranJ Lo.".ny
in the second Degree charges relerenced hcrein. Although
severed, this piea agreemeni i".l"j.l pi., i"
rs
berween thc court and defendani Lynch, and alreed to bv
" Attomey
the office ofrhe
"*-*ent
a'.::[it'n"

i**

2.

My atlorney is Michael Schiano, who is present in court with me today. I am

satisfred with the representation provided to me by my attomey. I understand that I have a right

to have an attomey throughout the proseculion and trial ofthese charges and

ifI

cannol allbrd an

attomey, one would be appointed lbr me.

3'

I have been advised o1, and understand, the nature ofthe charges againsl me, the
elements ofthe offense with which I am charged, and the range of permissible sentences.

4.

By pleading guilty r am giving up the following rights, which I have discussed

with my attomey:

a.

I understand that by pleading guilty I am giving up my righl to a trial

by a l2-person jury drawn from a broad cross_sectron ol- the

communlty.

b.

I understand that by pleading guilty I am giving up my right to have

the People produce witnesses to testify against me.

c.

I understand that b1 pleading guilty I am giving up my right to

have
my anomey cross_examine any witnesses who may testify
against
me.

d.

I understand that by pleading guilty I am giving up my right

to have
my atlorney producc witnesses to testify for me.

e. I understand that by pleading guilty I am giving up my right to

remain silent and my right to either testify or not testii/
at trial.

f,

I understand that by pleading guilty I am giving up my

righr to have
the People prove my guilt beyond a reasonable doubt
by a unanimous

verdict of

I2

jurors at trial.

g.

I understand that by pleading guilty my plea will operate just

like a
conviction of guilly aller ajury trial.

h.

I understand that by pleading guilty,

ifl

have a defense to this charse.

I am giving up my right to present that def.ense at trial.

i.

I understand that by pleading guilty I am giving up my right to claim

that the police did anything illegal in regard to this charge, and my

right to a hearing to determine if that police conduct was, in l'act,

illegal.

j.

I have been advised ol'and understand that I am pleading guilry ro a

l-elony. and

will

ifl

am lbund guilty ol'a second f'elony

within ten years,

be sentenced to a State Conectional Facility as a Second Felony

Offender lbr a maximum and minimum period of time.

5.

I acknowledge that I have consurted with my attorney about the immigratron

consequences of my guilty plea, and I have been advised that i1'l am
not a United States citrzen,
my guilty plea may subject me to immigration proceedings and removal
or deportation from the
United States. I understand that the immigration consequences of my prea
will be imposed in a
scparate proceeding before the immigration authorities. I wish
to plead guilry to the charged
offcnse(s) regardless ofany immigration consequences ofmy guirty
plea, even if my guilty plea
will cause my removal from the united states. I understand that I am bound
by my guilty plea
regardless ofany immigration consequences of the plea.
Accordingly, I waive any and all
challenges to my guilty plea and sentence based on any immigration
consequences, and agree not
to seek to withdraw my guilty plea, or to file a direct appeal
or any kind ofcolrateral attack

challenging my guilty plea. conviction. or sen(ence. based on

any rmmigration consequences ol.
my guilty plea.

6'

Further, in consideration for and as part ofthe plea agreement

in this matler, I
hereby waive and relinquish my right to appeal riom any judgment
of conviction, and frorn any
proceedings herein that may result fiom this prosecution.
I have execuled a waiver ol.right to
appeal lbrm provided to me by the office ofthe Altorney
Generar. I have been advised o1 my
right to appeal, my right to be represented by an attomey on
appeal, and my right to have an
altomey assigned for me on appeal if I cannot afford one. It
is my understanding and intention
that the plea agreement in this matter wilr be a complete
and linal disposition of the matter. l
make this waiver knowingly and voluntarily after having
been fulry advised ofmy rights by rne
court and having had a full and fair opportunity to discuss
thcse matters with my attornev.

7.

I hereby agree to enter

a plea

of guilty in accordance with the terms ofthe plea

ofl'er which has been made to me by the Court and agreed to by the Office of the Attomey
General, having consulted with my altomey and having been advised

ofall of the rights listed

above.

8.

fhis agreement will take effect u'hen and ifapproved by the court presiding over

People v. Daniel Lynch, Monroe County Indictment Number l007AG/13.

9.

Notwithstanding that count 19 of Indictment Number l007AG/13 was ordered

severed from the remaining counts and set on a separate

trial schedule, I conscnt to consolidation

of all remaining charges againsl me that originated in lndictment Number 1007AG/13, for
purposes

ofa disposition pursuant to this

10.

agreement.

I will plead guilty to four counts ofthe Indictment. in full satisf'action of

Indictment Number l007AG/l:1. Specifically, I will plead guilty to counl rwo of the Indictment,
combination in Restraint ol'Trade and competition, a class "E" felony, in violation of General
Business Law $$ 340 and 341, also known as a violation of New

york State's Donnelly Acr;

count lbur of the Indictment, combination in Restraint of rrade and competition, a class ,.8',

fblony, in violation of General Business Law $$ 340 and 341, also known as a violation ofNeu,

York State's Donnelly Act; count five of the Indictment, Grand Larceny in the second Degree, a
"C" f'elony, in violation of Penal Law 155.40(l); and counl 19 of the Indictment,
Grand
$
[,arceny in the Second Degree, a ''C" I'elony, in violation ofpenal Law 155.40(l).
$
IL
I have reviewed Exhibits A, B, C and D to this agreement and by signing this
plea agreement I admit that the facts contained in

Exhibits A, B,

and D to this asreemenr are

true.

12.

At the time of my plea, I will allocute under oath and admit that the facts

contained in Exhibits A, B, C and D to this agreement are true.

13.

I understand thal in accordance with this plea agreement, I will be sentenced to an

indeterminate term of two-and-onc-third to seven vears in state prison on counts five and

ninetecn. and to an indeterminate tcrm of one-and-one-third to fbur years in state prison on

fbur. l'he sentenccs lo be imposed on counts five, nineteen, two and tbur shall
all run concurrent with each other.
counts t\4'o and

14.

Further, I understand that in accordance with this plea agreement, I will pay a

total amount of$600,083.70 (six hundred thousand eighty-three dollars and seventy cents) in
restilution and lbrfeiture.

15.

As part ofthe $600.083.70, I agree to pay restitution to Monroe County in the

amounl o1'$200,083.70 (two hundred thousand eighty-three dollars and sevenly ccnts) and I will

lr'aivc my right to a restilution hearing. I will make restitution as follows:

(a) On or before the date o1'my plea, I will provide $180,000 (one hundred eighty
thousand dollars) to my attomey for deposit into his escrow account where

it will remain until

my sentencing date.
(b) I will provide the remainder of the restitution in the amount of $20,083.70 (twenty
thousand eighty three dollars and seventy cents), for a total of$200,083.70, to my attomey for

dcposit into his escrow accounl. prior to my scntencing date

(c) On or befbre the date o1 my sentencing, my attomey will provide an escrow check lbr
the full amount ofrestitution in the amount of$200,083.70 (two hundred thousand eighty-three
dollars and seventy cents) to Monroe County.

16.

Further, in accordance with this plea agreement, on or before the date of my

sentencing, as part ofthe total amount of$600,083.70, I will execute a forfeiture agreement and

stipulation where I agree to forfeit $400,000.00 (lbur hundred thousand dollars), which
represents a perccntage ol'my earnings from Navitech from approximately 2009 through 2011i,
as follows:

(a) I will immediately liquidate the following accounts and provide the total amount
received from those accounts to my attorncy for deposit into his escrow account

immediately upon receipt and prior to my sentencing date:

(,

Morgan Stanley Retirement Account (401K) with an estimated current

value

5335,000.00 as oJ February 9, 2016, and an estimated gross

distribution o/ $191,300.00 aJier Federal and State Taxes and penalties

are withheld.

(ii)

LPL

inancial Retirement Account (101K) 1.rith an estimated c'urrenl

vulue of5118,000.00 as o/ l-ebruary 9. 2016, and an estimared gross

dislribution of 568,110.00 after Federal and Slate T.&es and penalties are
v,ithheld.2

(b) I will provide the $25,000 (twenty-five thousand dollars) that I used to secure bail in

of

this matter to my attorney for deposit into his escrow account as soon as the release
that bail money is approved by the Office ofthe Attorney General;

(c) At least three weeks prior to my sentencing date I will provide the Office of the
Attomey General with a swom affidavit which provides an accurate and complete
written accounting of my assets in whatever name and by whomever held and
wherever situated. "Assets" means any interest. direct or indirect, in any real or
personal property, any valuable right and any thing ofvalue whatsoever ("financial
disclosure affi davit").

(d) On or before the datc ol my sentencing, my attomey will provide an escrow check for
the amount received pursuant to

fl

16(a) and

fl l6(b) to the Oflice ofthe Attorney

General, to be disposed of in accordance with the provisions of CPLR Section I 349.

(e) If, after completing thc acts described in !l 16, I have not provided the full $400,000
lbrfeiture, and the Olfice ofthe Allorney General is satisfred that I am unable to pay
that remainder ofthe $400,000 based on the submission of the financial disclosure
af'fidavit referenced in fl l6(c), I agree to pay the remainder ofthe $400,000 forfeiture

within llve years from the earliest ofthe following, (i) my release from incarceration
from a New York State Department of Corrections and Community Supervision

facility, (ii) a grant of work release, and/or (iii)

a grant

ofparole, and will enter into

forfeiture agreement and stipulation as such that will be filed with the Monroe county
Clerk as ajudgment pursuant to Criminal Procedure Law $ 420.10(6).

- Somc ol the lunds from this account will go towards

the $200.083.70 in restitution set fonh in tl l5: rhe rcmarnder
set fbrth in { 16.

wrll go towards the fbrfeiture amount

17.

I understand further that this plea agreement in no way releases me fiom civil

liability that I may have.

18.

I understand that the Olfice of the Attorney General will not pursue a civil action

pursuant to General Business Law $$ 340 and 341 against me for actions described in counts one
through four of the Indictment.

19.
class

I understand that

"C" felony), I could have

and a line

ifl

was convicted after trial

f-aced a

ofthe top count ofthe Indictment (a

maximum sentence o1'five to fifteen years in Slate Prison

offive thousand dollars or double

was greater. Moreover, I understand that

the amount of my gain from the crime, u'hichever

if I was convicted after trial of the crime of

Combination in Reslraint of Trade and Competition, a class "E" felony, in violation of General
Business Law g$ 340 and 341, also known as a violation

ofNew York State's Donnelly Act, I

could have faced a maximum sentence of one-and-one-third to four years in State prison and a

line ofone hundred thousand dollars or double the amount of my gain fiom the crime, whichever
was greater. I understand that

ifl

was convicted after trial of all or some

ofthe counts ofthe

lndictment, I could have faced a sentence ofup to ten to twenty years in stale prison.

20.

I hereby agree to enter a plea olguilty in accordance with the terms of the plca

off'er which has been made to me, having consulted with my attorney and having been advised

of

all o1'the rights listed above.

21.

I understand these rights, and the terms and conditions ofthis Plea Agreement,

which I have read completely. My plea of guilty is given freely, voluntarily, knowingly, and
without coercion of any kind. No threats or promises have been made to me to induce me to
plead guilty.

22.

I am not under the influence o1'alcohol, drugs, or medication, nor is there any

other mental or physical impairment, which prevents me from understanding these proceedings
here or from entering this plea knowingly, intelligently and voluntarily.

judgment is sound.

My mind is clear and my

23.

This agreement is limited to the Office of the New York State Attomey General

and cannot bind other govemment agencies.

Dated: Rochester, New York

,2016

Agreedby: 'llMf\ {}t^

MARY A. CORMAN
ASSISTANT ATTORNEY GENERAL
PUBLIC INTEGRITY BUREAU
Witnessed by,

scHrANo, EsQ.

The above is hereby approved by,

KEHOE

G MONROE COUNTY COURT JUDGE

EXHTBIT A FACTUAL ALLOCUTION COUNT TWO

1.

From approximately 1998 through March 2009, I was a Sales Executive at Siemens
Building Technologies, lnc. ("Siemens").

In or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the Monroe
County (the "County") Chicf Inlbrmation Officer, and others, involving upgradcs to the
County information technology systems (the "lT project"). From its inception. the
project was intended to be llnanced through the use ol'a Local Development Corporalion

("LDC").
3.

During the development ofthe IT project, and prior to the release ofany Request for
Proposal fbr the I'f project (the "RFP") on June 18, 2004, I intended to submit a response
to the RFP through my employer, Siemens.

ln addition to developing thc IT project with Rivera and others, I also participated in
drafting the RFP. I attended meetings with Rivera at his County office located at 50
West Main Street, in Monroe County, where we worked on dralling the RFP. Rivera also
provided copies of drafi RFPs to me to review. I thercfore had knowledge ofthe
County's requests and requirements for the IT projecl that no other responding vendor
had.

5.

Specifically, before the release of the RFP, Rivera provided me with specitic inlbrmation
about the scope of the countv hardware inventory that would be replaced and/or
maintained as part ofthe project.

6.

I know that by developing the IT project with Rivera and others and receiving inside
information regarding the Counly's requests and requirements lbr the IT project that no
other responding vendor had. that Siemens and I had an untair advantage in what was
supposed to be a competitivc process.

7.

From the beginning of its development, the 11'projecl was designed to be financed
through an LDC. It was my idea to use an LDC to finance the IT project and I planned to
include the use of an LDC in Siemens' response to the RFP.

8.

l, along with others, formed Upstate Telecommunications Corporation LDC ("UTC')

months before the release ofthe RFP to be the financing mechanism for the IT project.
UTC was incorporated in or about May 2004. The RFP was released to the public on
June 18, 2004 and contained no reference to the County's plan to utilize an LDC to
finance the project.

9.

I kne*'that the I'f project contract would be awarded to Siemens because ofmy plan to
use UTC to llnance the project. 'l he award of the contract to Siemens was
oredetermined.

0. Between the issuance of the RFP on June I 8, 2004, and the due date for responses on
July 22,2004, Rivera and others assisted me in responding to the RFP by providing
inlbrmation and advice regarding Siemens' RFP response.

l. I know that by receiving inside information from Rivera

and others between the date of

the release of the RFP through the date responses to the RFP were due, Siemens and I had
an unfair advantage in what was supposed to be a competitive bidding process.

12. The Siemens response to the RFP was

officially selected

as the

winning bid for the

project.
13.

I understand that my actions as described above in this txhibit A violated General

Business Law $$ 340 and 341 . also known as New York State's Donnelly Ac1.

l0

I'f

EXHIBIT B FACTUAL ALLOCUTION COUNT FOUR

l.

From approximately 1998 through March 2009, I was a Sales Executive at Siemens
Building Technologies, Inc. ("Siemens").

2.

In or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the Chief
Information Officer of Monroe County, and others, involving upgrades to the County
information technology systems, which was financed through a Local Development
Corporation C'I-DC") called Upstate Telecommunications Corporation ("UTC") (the
"UTC project").

3.

In or around 2006, I, along rvith Rivera. Robert Wiesner ("Wiesner"), the Director of
Security ibr the Monroe County Water Authority C'MCWA'), and others, began
developing a comprehensive public sal'ety and security plan fbr the County and the
MCWA that, generally speaking, involved upgrading the County's and MCWA's safery
and security systems (the "Public Safety projecl").

4.

From the beginning of its development, the Public Safety project was designed to be
hnanced through an LDC, just like the UTC project had been. lt was my idea to utilize
an LDC as a financing mechanism for the Public Safety project.

5.

From the outset, I was intricately involved in the development ofthe public Safetv
project because ofmy knowledge and experience in forming and utilizing an LDC to
finance a large project.

6.

[n or around the summer or l-all of 2008, I planned to leave Siemens to start my own
company for the purpose o1'receiving the assignment oflhe UTC contract from siemens
and to obtain the contract for thc Public Safety project.

7.

In or around the summer or lall of2008, which was prior to the release ofthe Request tbr
Proposal for the Public Salery project (the "RFp") by the county on February 20,2009, I
intended to submit a response to the RFp through this company that I intended to form.

[ formed Navitech Services corporation ("Navitech") which was incorporated on or

about December l, 2008, for the purpose ofreceiving the assignment ofthe UTC contracr
tiom Siemens and to obtain the contract for the public Safety project.

9.

In or around the summer or I'all of 2008, I, along with Rivera, wiesner and others besan
drafting the Request lbr Proposal lbr the public Safety projecr (the.'RFp..).

10. Despite my plan to submit a response to the RFp, between the time we started drafting

the R-F'P in the summer o1'2008 and the date the RFp was released on February 20.2009.
I communieared regularly uith Rirera. wiesner and olhers regarding the draliing ol-the
RIrP. I also regularly attended meetings with Rivera, Wiesner and others durinq-this time

period, olien in Rivera's county olfice located at 50 west Main Street in Monrie

ll

County, where drafts of the RFP were handed out and discussed. I had draft RFps in mv
possession prior to the NrP release date of February 20,2009.
I

l. I know that

by receiving this inside information from Rivera, Wiesner and others Drior ro
the release ofthe RFP, I had an unfair advantage in what was supposed to be a
competitive bidding process.

12.

I knewthat the RFP would include 1en components to the public Salbty project. In or
around thc fall o1'2008, prior to the release oi'the RFI', with the assistanae of wicsner. I
began assembling the team that would join Navitech's response to the RFp, thus enabling
Navitech to thoroughly respond to alr ten components ofthe RFp. I know that

assembling the team to respond to the RFp months before the RFp was released and
months before other vendors cven knew thcre would be 1en components to the RFp,
Navitech and I had an unrair advantage in what was supposed tobe a competitive
bidaine

process.

13. Between the time we srarred drafting rhe RFp in the summer
of 200g and through at least
January 2009, the RI'-P drafls explicitly stated under several different provisionJthat
the

ut ize an I-DC model 1., finance the public sat'ety project. l knew
that any reference 10 "r,DC" would be removed prior to the final
RFp u.i"g ,"l.ur;.I ,o
the public.
county intended to

l4

I know that by removing that specification from the RFp, no responding

vendor (except
for Navitech, because I had been privy to that inside information
anJ u"'"""r. ,iiiri"g
LDC was my idea from the outset) would know to respond
""
to trr" nrp uy rt'irirg
LDC as a financing model, even though that was the iounty,s
^"'
preferencl urdp;;. J
know that this gave Navitech and I an unfair advantage in whai
was rrppor.J io u. u
competitive bidding process.

15. Belween the datc

ofthe rerease of the RFp on Februar y 20,2009.and the datc responses

April 2,2009,1continued ro receive inronnation fiom Rivera and
wiesner
that other vendors did nor have acoess to, and I know
thar this gave Navilech and I an
"'-"
unlair advantage in whar u'as supposed ro be a competirive bid"ding
p;;;;.- were due on

l6

on or about Aptil2' 2009, Navitech submitted its response to the

RFp. Navitech was the
only vendor whose response included the use ofan Lbc model
t" n"""* irr. p.";""t,
and who responded to all ten components of the RFp.

7' on or about April 28' 2009, Navitech was awarded the public
Safety contracl. I knew
prior to this date that Navirech would be awarded the public
Salbty contract. rtrelwaro
o1'the contract to Navitech was predetermined.

S As planned tiom belbre Navitech was fbrmed and as proposed

in Navitech,s RFp
response. I and others worked together to form the
Monroe Security and Safety Systems
Locd D^ev^elopment corporation, also known as the M3S LDC
as a way,o tnun.'.ir"
Public Sal'ety project.

t2

19.

Following the award ol'the Public Sa1'ety contract 1o Navitech on April 28,2009, the
contract had to be approved by the County Legislature belbre being finalized.

20.

I know that the Legislature asked about my role with Navitech drrring the approval
process. I directed others, including John Maggio ("Maggio"), to minimize my role at
Navitech to the Legislature. because I had been so intricately involved in the
development ofthe Public Safety projecr and the drafting of the RFP.

21. Similarly. I was not listed as having any ownership interesr. tille or position with
Navitech in order to hide my actual role at Navitech. In reality, I was heavily involved in
the day-to-day operations and strategic decision making of Navitech.

22. I'he contracts betwcen the Ctounty and M3S and M3S and Navitech were ultimately
approved by the Legislature.
23. I continued to be involved in the day-to-day operations and strategic decision making
Navitech during the execution ofthe public Safety project.

of

24. ln or around the July of2008, I incorporated rreadstone Development corporation.

Maggio advised me regarding the fbrmalion of 'rreadstone but was never an ollicer or
employee of 'l'readstone. I was the sole 'freadstone employee.
25. Although I was rcchnically paid through l readstone lbr my work on the public
Sal'ety
project, all ofthe lunds flom which I *,as paid came directly liom Navitech.
26. Moreover, on several occasions, even though I was not an employee or oflicer of
Navitech, I would requesl payment from Navitech directly foi reimbursement of
expenses.

27. Eventually, Maggio and I agreed that we would splir the profits ofNavitech
equally.
28. For 1ax purposes. Navitech had no profils, and any prolit from the UTC and public
Salbty
contracts was split between Maggio and I pursuant to our agreement.
29. During the course of Navitech's existence, I was paid over 2 million dollars
by Navitech.
30. I understand that my actions as described herein violated General Business
Law $$ 340
and 341, also known as New york State's Donnelly Act.

IJ

EXHIBIT C FACTUAL ALLOCUTION COUNT F'IVE

l. From approximately

1998 through March 2009, I was a Sales Executive at Siemens

Building lechnologies, Inc. ("Siemens").

2.

ln or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the Monroe
County (the "County") Chief Information Officer, and others, involving upgrades to the
County information technology systems (the "lT contract") which was linanced through a
Local Development Corporation ("LDC") called Upstate Telecommunications
Corporation ("UTC').

3.

UTC contracted with Siemens to manage and implement the IT contract.

I was involved in the day-to-day operations o1'Siemens' management of the I I'contract

and was aware ol'all contracts involved in the project, including the scope ofthose
contracts.

5.

Catalog and Commerce Solutions, LLC ("CCS') is a corporation that provides website
design, hosting and maintenance services. In approximately February 2005. ccS entered
into a contract with UTC to provide technological support to the County, specifically
regarding the redesign and maintenance of the County's website.

6.

From approximarely october 2005 through April 2009, I engaged in a scheme to defraud,
pursuant to a single intent, involving the creation offalse or inflated contracts between
ccS and Siemens and bctwcen ccS and tlrc for the purpose of stealing money tiom
those fblse or inflated contracts to use lbr my personal benefit or the beneflt ofothers.

7.

Specifically, I would come r"rp with a contract value, present that value to a CCS
employee, and ask that employee to prepare a scope of work lbr a contract between
Siemens and clcS or between UTC and ccS. The contract value that I created would
either exceed the value ofwhat ccS would normally charge for the work involved in thal
scope of work or in some cases the contract value would be created for a totally
duplicative scope ofwork. I would then facilitate and negotiate contracts between
siemens and ccS or UTC and ccS based on the ccS employee's scope of work and the
contract value I created, represcnting that the work was necessary and worth the amounts
o1'the contract.

8.

Because of the strucl.ure

ofthe IT project. particularly the use ofan LDC to finance the I f

projecl, I knew that therc would be little to no oversight over contraots with
subconrractors and I took advantage ofthat lack ofoversight by creating inflated or f'alse
contracls with CCIS ibr my own benefit or the benefit ofothers.

9.

some ofthe inflated or false contracts I facilitared as part of this scheme include:

A prolbssional services agreement between ccS and urc entered into on or

about December 22,2005, under which CCS was to be paid $40.000.00 to

l4

invesligate and provide an outline lbr business opportunities that leverage County
assets to provide eloctronic services packages 1o cilizens and businesses. I know
that the $40,000 contract price thal I created for this contract was an inllated
number lbr the scopc of work in the contract.

b.

A consulting agreement betwecn CCS and Siemens entered into on or about

March 29, 2006. under which CCS was to be paid $70,000 to research E_
government opportunities with the County, develop a website lor UTC, and
develop and provide printed and marketing materials to siemens relating to the
UTC project. I kno*,that the $70,000 contract price that I creared tbr th]s
contract was an inflated number for the scope of work in the contract. Moreover,
I know that a website for U'l'c was not developed under this contract and thal no
printed or marketing materials were created.

c.

A professional services agreement between CCS and Siemens entered into on,r
about February 7 ,2007 , under which cCS was to be paid $30,000
annualry tbr a
period of live years to manage U'fC's website and to develop projecl
a
management website for UTC. I know that conlract price thit I
created fbr thrs
contract was an inflated number for the scope of work in the contract.
r also
know thar a projecl management website foi UTC had been created
by ccs yea*
prior to this conlract. This contract, although entered into
for tive years, was'not
renewed after two years because the IT conlract was transferred
from Siemens to
Navitech Services Corporation (.'Navitech,,).

d.

A prof'essional scr',ices agreement between ccS and Siemens entered

into on or
about December 19. 2007 , under which ccS was to be paid
$40,000 rbr the
developmenl of a proje* managemenr suite for the supiort
of siemen.
-o-ut'cmanaged projects. I know that rhis contract was dupricitive
ofprevious
and work performed on the rr project and that no sirvices
w".e p.uuided"oni.u"r,
unJe.

this contract.

10 As part ofthis scheme' I used the proceeds ofthe inflated

or rarse contracts ror my
benefit or the benefit ofothers as io ows: Siemens or UTC paid
ccS the p.i"" oiir,.
contracts previously described. I would then direct the ccS
employee to *rit.
o.
make debit card purchases from the proceeds ol the inflated
"t."t,
or false contract.. g";;"
approximately May 2006 and April 2009, I directed the CCS
employee,"n.'ut. p"y..*,
from the srolen proceeds to individuals and entities including,
urt not ri-it"ai.,iil""
Monroe county Republican Flousekeeping account, John Miggio,
Navitech. r,riends or
Maggie Brooks, the Northstar christian Aiademy golf classic,
Golisano children,s
Hospital' and myself. I also rnade or directed pui.iu.", be
made ibr items ior.y..riothers, including but not limiled to, televisions, a personal
home computer, und;h;;.
alarm system.

I I . I know that UTC paid Siemens for the value of the

conrracts and that the County
ultimately paid UTC for the varue ofthese contracts. r know,
therefore, that I stole
County money through the scheme I described herein.

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12. Through the scheme described herein,

I stole $125,083.70 from Monroe County.

13. I understand that my actions as described herein violated Penal Law $ 155.40(l).

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EXHIBIT D
1.

2.

3.
A

I was a Sales Executive at Siemens

From approximately 1998 through March 2009'
Building Technologies, Inc. ("Siemens")
Rivera ("Rivera")' then the Monroe
In or around 2004, I developed a project with Nelson
upgrades to the
(,h" ':County") crtl.r inio".ution officer, and others' involving
which was f,tnanced through a
County information tecnnotoiy systems (the'-lT contract')
-felecommunications
io"ul b.u"lopmenl Corporation i"loc'.t called Upstate
Corporation ("U fC").

a;;;t

IT contract'
U'fC contracted with Siemens to manage and implement the

Iwasinvolvedintheday-to-dayopelationsofsiemens'managementofthelTcontract
the scope ofthose
and was aware ofall contracts involved in the project, including
contracls.

). In approximately December 2007, as an amendment to theIT contract, the C^ounty

with UTC to replace and standardize the County's

copier systems and provide managemenl services (the "copier project")'

.nt.i"d

ir.tto an aclditional contract

o.

1o implement the copier project, U'fC contracted with other companies, including
'l'oshiba Business Solulions. Inc. ("'Ioshiba") and Siemens.

7.

UTC entered into a contract with Toshiba directly where UTC agreed to pay'foshiba
approximately $1.8 million over a period offour years for services to be provided under
the copier project by Toshiba to UTC, including but not limited to "design procurement
and installation services" (the "Toshiba copier contract"). UTC paid Toshiba in full
under the contract.

8.

urc
apart

also entered into a contract with Siemens in or around December 2007,

separate and
liom the overall management contract, to manage the Toshiba copie, proli.t

ltte
"Siemens copier contract"). According_to the Siemen-s
copier contract, UTC wourdpay
Siemens $175.000 Ibr the first year ofihe contract
and smaler amounts over the next
three years. I personally initiated and negotiated
this contract.
9.

I know that the work contracted for under

both the Toshiba copier contract and
the
Siemens copier contract was duplicative.
tru" i"rp.r"
Siemens
copier
conrract was to provide a s.urce of funds 'r.
lbr me usl for my "r,rr.
benelit o, tt. u.n.ni or

others.
10.

ln May 2008, the Senior pGA Championship

tournament (,,pGA

toumament,.) r.r,as held

at oak Hill country crub in Rochestlr.
sp"*...
.ith-"'rou..,u-.nt
purchased charet
packages ilom the pGA to host pa.ti.s
und
*Aer
tents during the
tournament. Chalet packagcs at Oak FIill "tfr..
for the
rur
ruc tournarr
rournament cost approximately

"r.ri,

$100.000.

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I I . Prior to the May 2008 PGA tournament, I entered into an agreement with an individual at
'foshiba that Siemens and Toshiba would share the cosl ofa chalet package. But Siemens
rvould not pay fbr it. So I decided to use the $175,000 Siemens copier conlracl between
Siemens and UTC to pay fbr Siemens'portion ofthe chalet package.
12. In order to facililate payment for the tent, I directed an individual at Toshiba to create
invoices indicating a contractual relationship between Toshiba and Siemens lor the
design, development and management of the copier project, but in reality no contract
between Toshiba and Siemens existed for the design, development and management of
the copier project. These false invoices were provided to Siemens and Siemens in turn
generated payments to foshiba totaling $75,000.00. 'fhat $75,000.00 paid for Siemens,
portion of the chalet package.

13. fhe $75,000.00 came tiom tj'l'c's paymcnt to siemens pursuant to the talse Siemens
copier contract that I created. I know that the county ultimately paid U fc tbr this
contract. I knou'. therelbre, that I used county money to pay lbr siemens'portion ofthe
chalet package. I benefitted lrom sharing the chalet package with roshiba by attending
the PGA tounament and entertaining friends, family, clients, prospective clients and
others at the expense of the county.

l4 l understand

that my actions as described herein violated penar Law 155.40(l).

$

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