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LDC investigation costs taxpayers money

Updated: Friday, November 8 2013, 10:12 AM EST

Rochester, N.Y. – The LDC indictment alleges that the bid-rigging scheme involved the use of fake contracts and false invoices to steal money. Tax payer’s money is being used to investigate two of the men under arrest for Grand Larceny.

According to the criminal complaint, contracts worth $312 million of tax payer’s money were steered to favored companies.  13WHAM News investigated just how much of that money was stolen.

The complaint said Dan Lynch received $2 million dollars by creating false invoices and submitting them to Navitech. Navitech also paid John Maggio $1.3 million.

The total of $3.3 million is roughly one percent of the $312 million dollar contract with the two LDC’s at the center of the investigation.

But audits by the New York State Comptroller's Office suggest taxpayers are out millions more.

  • $2.5 million - plus interest - from assets sold to one LDC then leased back
  • Another $5.5 million for public safety equipment the county purchased that should have been covered under the contract
  • The audit says taxpayers overpaid one LDC $8 million dollars for services it might never receive.

That makes the total cost to taxpayers, $19.3 million dollars.

County Executive Maggie Brooks said she takes issue with the numbers in the comptrollers audit, though her own internal investigation turned up “irregularities with Navitech,” the company at the center of all this.

LDC investigation costs taxpayers money

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