District Shivers As FBI Delivers
Wednesday, December 22, 2004
By WHITNEY KVASAGER
HERALD NEWS
PATERSON - FBI agents delivered subpoenas to the Board of
Education offices Monday, and remained tight-lipped about
how they followed up on the effort Tuesday. Special Agent
Stephen Kodak, assigned to the FBI's Newark office, would
not say how many subpoenas were handed off or to whom they
were presented. He also refused to say whether they were
connected to a lawsuit filed this month by Paterson school
district officials against four contractors.
The Morristown-based-law firm of Schenck, Price, Smith
& King, representing the school district, could not be
reached for comment Tuesday night. The district's ongoing
financial and administrative problems have lately come to a
head.
On Dec. 10, district officials alleged 55 counts of fraud
and abuse in four civil suits filed in Superior Court
against Educational Data Services of Saddle Brook, Olympic
Window Installers of Hawthorne, Paint Smart Contractors of
Nutley and PM Auto Body (also known as PM Auto Repair) of
Paterson.
School officials allege that the companies bilked
hundreds of thousands of district dollars by submitting
bills twice, padding costs, taking payment for non-existing
jobs and faking job qualifications.
No one answered the telephone at Educational Data
Services or PM Auto Body on Tuesday night. Neither Paint
Smart representatives nor Russell Babb, co-owner of Olympic
Window Installers, returned messages left by a reporter.
A woman who answered the telephone at the Babb residence
said he would not comment on the matter because it is in
litigation. Louis Milone, accused of conspiring with Olympic
Window to defraud the district, also did not return a
telephone call seeking comment Tuesday night.
Several district officials were unaware of the FBI's
move. Neither Business Administrator William Moffitt nor
Board of Education President Jonathan Hodges had been aware
that agents were in the district.
"No one's spoken to me, so I can't really tell you what's
going on," Hodges said. "I would not be surprised if the FBI
were |pursuing a similar avenue of |concern."
State-appointed interim Schools Superintendent Dennis
Clancy did not return telephone calls to either his home of
office. Assistant Superintendent of Operations Michael
Azzara, and John Sico, an assistant schools superintendent,
did not return telephone calls left by a reporter.
Additionally, Board of Education members Juan "Mitch"
Santiago, Alonzo Moody and Daniel Vergara did not return
telephone calls seeking comment. "That's news to me," said
board member Andre Sayegh when told the FBI had issued
subpoenas. "I'm glad to hear that they're here."
Jon Zlock, spokesman for the state Department of
Education, said New Jersey officials would not comment on
the matter.
Reach Whitney Kvasager at (973) 569-7164 or
kvasager@northjersey.com.
|