A Messy Business Indeed
By Joye Brown; Joye.brown@newsday.com
LINK to videoAnd so it grows, with today’s installment of lawyers, law firms, school districts, school board members and superintendents
caught in the glare of public scrutiny.It’s a mess. And by the time the state attorney general and federal Internal Revenue Service and FBI are finished, it could spread to districts across Long Island.
But wait. Weren't they supposed to be taking steps to root out this kind of abuse? The theft of millions of dollars in public money in the Roslyn school system sent district administrators to prison; so did a 2006 grand jury investigation of Suffolk County’s 70 school districts.
That September, the Suffolk grand jury issued a scathing report, which found three major problems:
- Lack of oversight and internal controls by those charged with the responsibility to safeguard
taxpayers’ money.
- Large expenditures of public funds for compensation and fringe benefits to school
administrators that
are largely hidden from taxpayers and designed to be beyond taxpayer control.
- The public pension system for school district employees is being defrauded of millions of
dollars in taxpayer money.
So it’s 2008 and residents are livid – again! – over a series of Newsday reports about a system of education that has allowed private lawyers to earn money, and state pensions, by contracting to do legal work. What’s changed?
“There’s been virtually no change in anything,” Thomas Spota, Suffolk’s district attorney, said yesterday.
And nothing will change until Long Island starts seeing the local education system for what is is.
BIG BUSINESS.
Long Island’s more than 170 school districts account of more than 8 percent of the region’s economy. That’s a $9.3-billion industry. And it’s bred healthy cottage industries of law firms, administrators, consultants and vendors of all kinds who rely on it for their livelihoods. Like any system, the primary goal of Long Island’s business of education is to keep itself in business. It’s like a political party that favors players who are well connected. It’s stronger than any democratic branch of government because there’s no loyal opposition, no organized system of checks and balances to keep things honest.
It’s a system so entrenched that the public’s only recourse is to turn down budgets. And even when they do, they have no control of 65 percent of the budget. What happens? Children lose programs. Some parents have to find ways other than buses to get their kids to school. And they lose teachers, the newest and least powerful in the system. Raises don’t stop; personal contracts for administrators – which the grand jury determined to include perks from cars to district contributions to private pension plans – don’t get renegotiated. Nor do contracts for law firms or the public relations firms that represent some districts.
That stuff’s set in stone by the superintendent and the school board long before the budget debate and the vote. The system protects itself. It’s tailor-made for abuse, all in the name of local control. There’s much to admire about Long Island’s system of educating children. Its schools – with the exception of those we keep racially and economically isolated – are among the best in the nation.
There’s reason to love our schools. But how long will that love be blind?
QUESTION: Why would an attorney for a private law firm want to get onto a public payroll such as a school district? ANSWER: Because you would become a member of the New York State Employees Retirement System. For every year you’re listed as a part-time or full-time public employee, you accumulate credits toward your retirement pension. The more time you accumulate in the system, the higher the percentage of you final average salary you receive in your pension benefit. The formula for figuring out one’s retirement benefit is basically the percentage of years in the system multiplied by the average of the highest three years of salary.
Newsday.com
More schools involved in lawyer, pension scandalBY SANDRA PEDDIE AND EDEN LAIKIN
sandra.peddie@newsday.com; eden.laikin@newsday.com
February 21, 2008
Six more Long Island school districts listed two private attorneys as employees, enabling them to earn state pensions, while also paying their law firms more than $1 million in fees, state and district records show.
The disclosure of two more lawyers receiving public benefits while working as private attorneys for school districts comes as state and federal probes into the practices of attorney Lawrence Reich broadened. On Tuesday, Reich's former law firm, Ingerman Smith, turned over its files on Reich to the Federal Bureau of Investigation and the IRS, and New York State Attorney General Andrew Cuomo has opened both a civil and criminal investigation.
Newsday reported last Friday that Reich was employed as a full-time employee of five school districts at the same time, while his firm, Ingerman Smith of Hauppauge, also was on retainer to the districts. Of the two additional attorneys, one only worked only part-time, while the second worked at one district at a time.
Under IRS rules, an individual cannot be treated as both an employee and independent contractor for the same job. The story brought a nearly immediate reaction from the FBI, which that same day subpoenaed Ingerman Smith's records.
The new disclosures -- which bring the total number of school districts involved to 11, and adds two more law firms -- suggests the practice of putting private contractors on public payrolls may be more widespread.
Records reviewed by Newsday show that Carol Hoffman, currently a partner at the Garden City law firm of Jaspan, Schlesinger and Hoffman, was listed as an employee at different times at four school districts. The districts were Plainedge and Bethpage, where she was listed as full time, and East Rockaway and Lawrence, where she was listed as part time.
In addition, the records show that Jerome Ehrlich, now a partner of the Garden City law firm of Ehrlich, Frazer and Feldman, was employed part time by two districts, Hewlett-Woodmere and Great Neck simultaneously. That allowed him to retire in 2006 with an annual pension of $34,029, after being credited with working 38.5 years in the state system.
Hoffman, 56, is not yet drawing a pension, records show. Reached yesterday at her second home in Key Largo, Fla., she declined to comment beyond saying only that, "Hundreds and hundreds of people over thousands of years have been doing this."
In an interview, Ehrlich said his arrangement with the districts "started a long time ago," when he said it was a "prevalent practice."
Both Hoffman and Ehrlich were once former partners of Reich, the Centerport attorney who was falsely listed as a full-time employee by five school districts simultaneously, earning a $61,459 pension and health benefits for life. At the same time, the districts paid Ingerman Smith $2.5 million in fees, according to records. Records show that, in one year alone, Reich was credited with working 1,286 days.
In addition to the FBI and Cuomo's office, the New York State comptroller's office announced that it would audit four of the five districts where Reich worked.
Earlier this week, Jaspan, Schlesinger, Hoffman suspended Reich -- who went to the work at the firm last January after leaving Ingerman Smith -- and asked for his resignation.
According to the Jaspan Schlesinger Hoffman Web site, Hoffman worked in the state Education Department Office of Counsel from 1976 to 1979. She later served in the governor's Office of Employee Relations.
She went into private law practice around 1982, Schlesinger said.
State records show she was listed as a full-time employee of the Plainedge school district from 1984 to 1987 and then part time in 1988. From 1989 to 1991, she was listed as part time in East Rockaway, and from 1991 through 1997, she was a part-time employee of the Lawrence school district.
After that, she was listed as a full-time employee of the Bethpage school district until 2003.
Complete records of payments to Hoffman's firm were not available yesterday, but Bethpage school records show that from 2000 through 2004, Bethpage paid the firm $847,106. In addition, the district paid her a $40,000 salary in 2003.
Earlier this week, Steven Schlesinger said he asked Reich to leave the firm because "I don't need the bad publicity." Yesterday in an interview, he said Hoffman's arrangement was different -- and legal -- because she worked at only one school district at a time.
School district records show that Great Neck paid Ehrlich's firm $578,411 from 2000 through 2004. Ehrlich himself earned $8,814 from Hewlett-Woodmere and $51,249 from Great Neck in 2005.
In an interview yesterday, Ehrlich said he thought the practice was legal, but added, "I don't think it's a practice that's continuing."
State records also show that John Gross, a partner in Ingerman Smith, is credited with more than eight years in the state pension system after serving as a part-time attorney for the Village of Northport. At the same time, the village paid Ingerman Smith fees for additional legal work, Gross said.
"That was just the way they did it," he said in an interview. It was "nothing I requested."
Copyright © 2008, Newsday Inc.
From the Editor:
This law firm is the very same that was unfair to former music teacher Dania Hall, who added this to the breaking story:A personal note:
Carol Melnick, Esq. from the notorious law firm Jaspan, Hoffman & Schlesinger is the North Bellmore attorney, and (how many other schools?) who represented North Bellmore and supported the new superintendent's (Mucci's) decision to abruptly fire me from my job as teacher from the North Bellmore School District in 2005, the same date that I was to receive tenure. I got to see every slimey legal document she wrote because I did my case pro se, in a desperate attempt to selvage my job. The legal case was between North Bellmore and myself and was submitted to R. Mills, NYS Commissioner of Education, who of course "dismissed" it. It only took him 2 years to decide my fate and livelihood which destroyed my career. The superintendent did not know me from a hole in the wall. Carol Melnick did not know me from a hole in the wall, but that did not stop her, because that's what they do. That's what they do for a living. This is their livelihood.
D. HallWe filed a freedom of Information request:
The E-Accountability Foundation
Parentadvocates.org
Betsy Combier, President and Editor
betsy@parentadvocates.org
VIA E-MAIL
April 21, 2007
Ms. Toni Ann Cincotta
Records Access Officer
North Bellmore Union Free School District
2616 Martin Avenue
Bellmore, NY 11710-3131
tcincotta@northbellmoreschools.org
Dear Ms. Cincotta:
Under the provisions of the New York Freedom of Information Law, Article 6 of the Public Officers Law, I hereby request to receive E-mailed copies of the following records, or inspect the copies that are located in school district files, pertaining to:
1) all employment contracts that have been issued to Superintendent Dominic F. Mucci
2) all performance reviews that have been issued to Superintendent Dominic F. Mucci in order to comply with §100.2(o)(2)(v) of the Regulations of the Commissioner of Education
3) all records that set forth, or that relate to, the procedures for conducting Superintendent Dominic F. Mucci's performance reviews
4) all records containing statistical tabulations or data that set forth, or that relate to, the rational basis for denying tenure to Dania Hall
5) all records containing factual tabulations or data that set forth, or that relate to, the rational basis for denying tenure to Dania Hall.
I have quoted Commissioner's Regulation §100.2(o)(2)(v) below for your convenience:
"Performance review of superintendent. The governing body of each school district shall annually review the performance of the superintendent of schools according to procedures developed by such body in consultation with the superintendent. Such procedures shall be filed in the district office and available for review by any individual no later than September 10th of each year."
If my request is too broad or does not reasonably describe the records, please contact me at 212-794-8902 so that I may clarify my request. When appropriate, please inform me of the manner in which the records are filed, retrieved, or generated.
If any record has been redacted or denied, please identify which categories of information have been redacted or denied, and cite the relevant statutory exemption(s).
As you know, the Freedom of Information Law requires that an agency respond to a request within five business days of receipt of a request. Therefore, I would appreciate a response as soon as possible and look forward to hearing from you shortly. If for any reason any portion of my request is denied, please inform me of the reasons for the denial in writing and provide the name, business address, and E-mail address of the person or body to whom an appeal should be directed.
Sincerely,
Betsy Combier
CC:
VIA E-MAIL
The E-Accountability Foundation
betsy@parentadvocates.org
Mr. Robert J. Freeman
RFreeman@dos.state.ny.us
Ms. Camille S. Jobin-Davis
CJobinDavis@dos.state.ny.us
Superintendent Dominic F. Mucci
dmucci@northbellmoreschools.org
The reply:April 27, 2007
SENT VIA EMAIL and RETURN RECEIPT REQUESTED / REGISTER MAIL
Dear Ms Combier:
Please be advised that I am in receipt of your FOIL request for records:
1) all employment contracts that have been issued to Superintendent Dominic F. Mucci
2) all performance reviews that have been issued to Superintendent Dominic F. Mucci in order to comply with §100.2(o)(2)(v) of the Regulations of the Commissioner of Education
3) all records that set forth, or that relate to, the procedures for conducting Superintendent Dominic F. Mucci's performance reviews
4) all records containing statistical tabulations or data that set forth, or that relate to, the rational basis for denying tenure to Dania Hall
5) all records containing factual tabulations or data that set forth, or that relate to, the rational basis for denying tenure to Dania Hall
I am currently in the process of reviewing and researching your request. Please be advised that copies of any documents will be supplied at a cost of .25 per copy. After completing my research and determining the cost of your request I will notify you.
If you have any further questions or need to contact me directly, I can be reached at 516-992-3000 Ext. 4005.
Sincerely,
Ms. Toni A. Cincotta
Assistant to the Superintendent
Cc: Carol Melnick, Esq. Jaspan, Hoffman & Schlesinger, District Counsel
Dominic Mucci, Superintendent of Schools
Carol Melnick's bio:Carol A. Melnickcmelnick@jshllp.com
Carol A. Melnick is a partner in the firm's
Education and
Municipal Law Practice Groups, where she handles a wide range of matters as general and labor counsel for public school districts, public libraries and other municipal entities. Ms. Melnick's general counsel background includes policy development, Freedom of Information Law and Open Meetings Law matters, election issues, fiscal management, administrative-level hearings regarding special education matters, student discipline, residency issues, and appeals to the Commissioner of Education and the State Review Officer. In addition, Ms. Melnick litigates special education matters in both State and Federal Courts. Her Labor Law experience includes collective bargaining, contract administration, grievance arbitration, administrative-level hearings regarding employee discipline, practice before the Public Employment Relations Board, practice before the State Division of Human Rights, and counseling on various employment-related matters under the New York State Labor Laws, Fair Labor Standards Act, Family Medical Leave Act, Americans with Disabilities Act, Executive/Human Rights Laws and Title VII. Ms. Melnick frequently lectures on issues relating to special education.
Ms. Melnick received her Juris Doctor degree in 1993 from Brooklyn Law School. She is admitted to practice law in the courts of the State of New York and New Jersey and in the United States District Court for the Eastern and Southern Districts of New York and the District of New Jersey. Ms. Melnick is an active member of the Nassau and New York State Bar Associations, and their respective Education, Labor and Employment and Municipal Law Sections.
B.A., University of Kentucky - 1985
J.D., Brooklyn Law School - 1993
Ellen Belfiore, public school activist, on the NY teacher's chatboardExperience of D. Hall as a teacher on Long IslandNapta - National Association of Teacher Abuse - Editor Karen HorwitzParentadvocates.orgSpeaking as a Teacher - Editor - Sue Lee Schwartz
