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New details in LDC case Part Two
by Sean Carroll
John Maggios Interview with Investigators
Buried in the court file of this case was also a detailed account of a September 18, 2013 interview that Attorney Generals Office Investigators had with defendant John Maggio and his lawyer David Rothenberg. The accounts of this interview were detailed by investigators and are now part of the case against these defendants.
During the interview Maggio was confronted with a series of checks and questions that went along with those checks. Below is some of what is detailed and keep in mind the quotes and notes are those taken by AGs Office investigators and then placed in the court file.
A November 2008 check for $15,000 made out to Maggio from Catalog & Commerce Solutions (CCS) with Treadstone in the memo line. Maggio responded, I see what this looks like, but I have to explain how this worked.
Further explanation revealed the check came from Mike Kelly, a principle at CCS, and that it might have been a case of CCS providing payment to Maggio on behalf of services rendered to Dan Lynch and Treadstone.
When Dan came to me and said he (M.Kelly) is going to put up the $15,000 for the accounting fees I thought that was a smart move for Mike Kelly by investingM. Kelly had made a lot of money in the past by investing with Lynch and he would continue to make money.
A January 2009 check from CCS to Navitech for $10,000 was described as being start-up money and that Lynch had Kelly cut that check. When asked about the whereabouts of an invoice investigators claim Maggio stated, I dont know who would of sent it or if I did.
The investigator reportedly responded with, because to get a payment you send an invoice.
You wont like the answer but it, Maggio responded before stopping mid-sentence and never completing the statement. Of the invoice he later added, I will try to find it.
A November 2009 check from Navitech to John Maggio for $5,000 with John Maggio in the memo line was also brought up. Maggio explained that, It was for rent and then added, Its a slow time of year.
Navitech was headquartered in the same Park Avenue building that Maggios accounting firm operated out of. The building was also owned by Maggio or one of his entities.
There was a rental agreement, nothing in writing but it was $2,500 a month, Maggio explained to investigators.
David Rothenberg, Maggios lawyer, offered 13WHAM News an additional comment saying, He is entitled to charge rent.
A July 2010 check from Navitech made out to Cash for $25,000 was also brought up. I dont remember what it was for, Maggio initially responded before being asked if he had ever taken out cash from Navitech.
I dont know I might have, he responded.
Rothenberg explained to 13WHAM News that, The check was not a cash transaction (and) it was deposited in a bank account. It was made out to cash only because they needed the funds immediately.
Nelson Riveras Interview with Investigators
A week after Maggios interview, co-defendant Nelson Rivera was interviewed at the AGs Rochester field office. The presence of Assistant U.S. Attorney Richard Resnick at this September 25, 2013 interview was also noted and the first documented involvement of federal authorities thus far.
Assistant U.S. Attorney Resnick was also present in court at the November arraignments of all four defendants. Sources have consistently indicated a subsequent federal investigation into these LDC arrangements remains ongoing.
In Riveras interview he stated that he started working for Monroe County in January 2004, and that he had inherited problems that were already in place.
Investigators report that Rivera went on to say that the idea of using LDCs for county projects was brought forward by Dan Lynch and that Lynch named all of the benefits of using an LDC when Rivera first met him in 2004.
An investigators note from this interview also makes reference to former Monroe County GOP Chairman Stephen Minarik who passed away in April 2009.
He (Rivera) added that Stephen Minarik, a local politician was always involved in the political aspect of any of the projects, and that he (Minarik) was involved in making decisions relating to any project that occurred in county government.
Notes from Riveras interview go on to explain that Rivera never met with Minarik.
Investigators questioned Rivera bout a June 10, 2004 email sent out that allegedly contained drafts of the RFPs (Requests for Proposal) for a contract, presumably the one awarded to UTC. Investigators noted that Rivera, viewed the e-mail and said that after looking at the e-mail, its making him rethink his answers.
Further notes stated that Rivera admitted, sending out the email prior to the (RFP) was released on June 18, 2004 and that by doing that, it would give the vendors that received advanced copies a competitive advantage before the process was started over the other vendors.
Discussions with Rivera also dealt with consulting work he did with Lynch for the City of Yonkers on the topic of LDCs. Investigators note that he earned about $9,000 at $100-per hour.
He stated that he was paid in the form of checks made out to him personally, according to those notes. The City of Yonkers reportedly decided not to utilize LDCs for projects that they were consulting about.
How these interviews, responses, and evidence play into the prosecution of this case is yet to be determined. A link to some of the indicted criminal charges could be found or may not exist. A significant amount of paperwork, hundreds of pages, was on file with the court. That included a large amount of materials related to the search warrants granted for Navitech, Maggios accounting firm, Riveras office at City Place, and Lynchs home.
To watch the 5 p.m. report, click here.