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16 New York City Custodians Are Charged With Embezzlement of DOE Funds and Kickbacks
Vendor secretly tapes the culprits, 9 of whom were doing business with companies operated by Robert Ferramosca of Staten Island. ![]()
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City Custodians Charged In Kickback Scheme May 6, 2005 LINK Sixteen school custodians have been charged with misusing or embezzling more than $529,000 in Department of Education funds and accepting more than $329,000 in kickbacks in separate schemes, investigators said Thursday. Authorities said nine custodians were doing business with companies operated by Robert Ferramosca, of Staten Island, without soliciting multiple bids from unrelated vendors as required under Department of Education policy. Some of the payments Ferramosca received were for goods that weren't ordered from his companies or were never delivered to schools, and in many cases the custodians got kickbacks for a percentage of a fake or incomplete order, the special commissioner of investigation for the city's schools, Richard Condon, said in a letter to schools Chancellor Joel Klein. There was no answer at a telephone number listed for Ferramosca, who Condon said ran or was associated with at least nine companies. Federal prosecutors said the other seven custodians paid a vendor for cleaning and janitorial products that were never delivered. The vendor then allegedly returned half the money to the custodians. Prosecutors said the vendor, who was not named, cooperated with law enforcement and recorded meetings with the custodians. The custodians charged in the first scheme each could face up to 10 years in prison and a $250,000 fine if convicted on a charge of misapplying school property. Some face additional fines or prison time if convicted of embezzling or stealing school property or receiving kickbacks, and one faces additional fines or jail time if convicted of obstructing a federal investigation. The custodians accused in the second scheme each could face up to 10 years in prison if convicted of embezzling, stealing and misapplying school property and up to 20 years in prison and a $250,000 fine if convicted of mail fraud. All the custodians pleaded not guilty when arraigned Thursday afternoon, a Condon spokeswoman said. |