Lynch, Daniel ~ LDC Case ~ Plea Agreement

COIJNI'Y COURT OI] THE S]'ATE OF NEW YORKCOTJNI'Y OF MONROF]

'IItE PITOPLE OF'THI: S]-A]'E Ot'NEW YORK

-agalnst-

DANIEL LYNCH.

Def'endant.

sTAl'E Ot'NEW YORK )

) ss.:C]OUNT'Y OIr MONROE )

L I, Daniel Lynch, the undersigned defendant, have been charged in the Countycourt of the State of New york, Monroe county, by Indictment Number l007AG/13 (the"lndictment"), with the crimes of Grand Larceny in the Second Degree, a class ..c,,felony,

rnviolation ofPenal Law $ r55.40(r) (two counts)rl Money Laundering in the Second I)egree, aclass ''c" t'elony- in violation of penal Law g 470. r5(r )(bxii)(A) and (iii) (two counls): Gra'dl,arceny in the fhird Degree, a class "D" felony. in violation of penal Law $ l 55.35 (six c,unrs]:Money Laundering in the 1'hird Dcgree, a class "D" felony, in violation of penal Law $470. I 0( I xbxixA) and (iii) (one count); conspiracy in the Fourth Degree, a class .,8,' felony, inviolation ofPenal Law $ 105.10( l ) (one count); Falsifying Business Records in the Firsr Degree,a class "E" felony, in violation of pcnal Law $ r 75. r 0 (two counts); and combination inRestrainl of l'rade and Competition. a class "fr" felony, in violation ofGeneral Business Law $$340 and 341. also known as a violation ofNeu, york State's Donne y Act (fbur counts).

'ln a decisior and order dated April 23,2015, the coun severed count l9 llom the rest ofthe counts in IndictmentNumber l007AG/l3 count lg char8es Grand Larceny in the seconJ oegree and is one ofthe two GranJ Lo.".nyin the second Degree charges relerenced hcrein. Although severed, this piea agreemeni i".l"j.l "

pi., i" i** rsa'.::[it'n" "*-*ent berween thc court and defendani Lynch, and alreed to bv the office ofrhe Attomey

2. My atlorney is Michael Schiano, who is present in court with me today. I am

satisfred with the representation provided to me by my attomey. I understand that I have a right

to have an attomey throughout the proseculion and trial ofthese charges and ifI cannol allbrd an

attomey, one would be appointed lbr me.

3' I have been advised o1, and understand, the nature ofthe charges againsl me, the

elements ofthe offense with which I am charged, and the range of permissible sentences.

4. By pleading guilty r am giving up the following rights, which I have discussed

with my attomey:

a. I understand that by pleading guilty I am giving up my righl to a trialby a l2-person jury drawn from a broad cross_sectron ol- the

communlty.

b. I understand that by pleading guilty I am giving up my right to have

the People produce witnesses to testify against me.

c. I understand that b1 pleading guilty I am giving up my right to have

my anomey cross_examine any witnesses who may testify against

me.

d. I understand that by pleading guilty I am giving up my right to havemy atlorney producc witnesses to testify for me.

e. I understand that by pleading guilty I am giving up my right toremain silent and my right to either testify or not testii/ at trial.

f, I understand that by pleading guilty I am giving up my righr to have

the People prove my guilt beyond a reasonable doubt by a unanimous

verdict of I 2 jurors at trial.

g. I understand that by pleading guilty my plea will operate just like a

conviction of guilly aller ajury trial.

h. I understand that by pleading guilty, ifl have a defense to this charse.

I am giving up my right to present that def.ense at trial.

i. I understand that by pleading guilty I am giving up my right to claim

that the police did anything illegal in regard to this charge, and my

right to a hearing to determine if that police conduct was, in l'act,

illegal.

j. I have been advised ol'and understand that I am pleading guilry ro a

l-elony. and ifl am lbund guilty ol'a second f'elony within ten years, I

will be sentenced to a State Conectional Facility as a Second Felony

Offender lbr a maximum and minimum period of time.

5. I acknowledge that I have consurted with my attorney about the immigratronconsequences of my guilty plea, and I have been advised that i1'l am not a United States citrzen,my guilty plea may subject me to immigration proceedings and removal or deportation from theUnited States. I understand that the immigration consequences of my prea will be imposed in ascparate proceeding before the immigration authorities. I wish to plead guilry to the chargedoffcnse(s) regardless ofany immigration consequences ofmy guirty plea, even if my guilty pleawill cause my removal from the united states. I understand that I am bound by my guilty plearegardless ofany immigration consequences of the plea. Accordingly, I waive any and allchallenges to my guilty plea and sentence based on any immigration consequences, and agree notto seek to withdraw my guilty plea, or to file a direct appeal or any kind ofcolrateral attackchallenging my guilty plea. conviction. or sen(ence. based on any rmmigration consequences ol.my guilty plea.

6' Further, in consideration for and as part ofthe plea agreement in this matler, I

hereby waive and relinquish my right to appeal riom any judgment of conviction, and frorn anyproceedings herein that may result fiom this prosecution. I have execuled a waiver ol.right toappeal lbrm provided to me by the office ofthe Altorney Generar. I have been advised o1 myright to appeal, my right to be represented by an attomey on appeal, and my right to have analtomey assigned for me on appeal if I cannot afford one. It is my understanding and intentionthat the plea agreement in this matter wilr be a complete and linal disposition of the matter. lmake this waiver knowingly and voluntarily after having been fulry advised ofmy rights by rnecourt and having had a full and fair opportunity to discuss thcse matters with my attornev.

7. I hereby agree to enter a plea of guilty in accordance with the terms ofthe plea

ofl'er which has been made to me by the Court and agreed to by the Office of the Attomey

General, having consulted with my altomey and having been advised ofall of the rights listed

above.

8. fhis agreement will take effect u'hen and ifapproved by the court presiding over

People v. Daniel Lynch, Monroe County Indictment Number l007AG/13.

9. Notwithstanding that count 19 of Indictment Number l007AG/13 was ordered

severed from the remaining counts and set on a separate trial schedule, I conscnt to consolidation

of all remaining charges againsl me that originated in lndictment Number 1007AG/13, for

purposes ofa disposition pursuant to this agreement.

10. I will plead guilty to four counts ofthe Indictment. in full satisf'action ofIndictment Number l007AG/l:1. Specifically, I will plead guilty to counl rwo of the Indictment,

combination in Restraint ol'Trade and competition, a class "E" felony, in violation of General

Business Law $$ 340 and 341, also known as a violation of New york State's Donnelly Acr;

count lbur of the Indictment, combination in Restraint of rrade and competition, a class ,.8',

fblony, in violation of General Business Law $$ 340 and 341, also known as a violation ofNeu,

York State's Donnelly Act; count five of the Indictment, Grand Larceny in the second Degree, a"C" f'elony, in violation of Penal Law $ 155.40(l); and counl 19 of the Indictment, Grand

[,arceny in the Second Degree, a ''C" I'elony, in violation ofpenal Law $ 155.40(l).

I L I have reviewed Exhibits A, B, C and D to this agreement and by signing this

plea agreement I admit that the facts contained in Exhibits A, B, c and D to this asreemenr are

true.

12. At the time of my plea, I will allocute under oath and admit that the facts

contained in Exhibits A, B, C and D to this agreement are true.

13. I understand thal in accordance with this plea agreement, I will be sentenced to an

indeterminate term of two-and-onc-third to seven vears in state prison on counts five and .

ninetecn. and to an indeterminate tcrm of one-and-one-third to fbur years in state prison on

counts t\4'o and fbur. l'he sentenccs lo be imposed on counts five, nineteen, two and tbur shall

all run concurrent with each other.

14. Further, I understand that in accordance with this plea agreement, I will pay a

total amount of$600,083.70 (six hundred thousand eighty-three dollars and seventy cents) in

restilution and lbrfeiture.

15. As part ofthe $600.083.70, I agree to pay restitution to Monroe County in the

amounl o1'$200,083.70 (two hundred thousand eighty-three dollars and sevenly ccnts) and I will

lr'aivc my right to a restilution hearing. I will make restitution as follows:

(a) On or before the date o1'my plea, I will provide $180,000 (one hundred eighty

thousand dollars) to my attomey for deposit into his escrow account where it will remain until

my sentencing date.

(b) I will provide the remainder of the restitution in the amount of $20,083.70 (twenty

thousand eighty three dollars and seventy cents), for a total of$200,083.70, to my attomey for

dcposit into his escrow accounl. prior to my scntencing date

(c) On or befbre the date o1 my sentencing, my attomey will provide an escrow check lbr

the full amount ofrestitution in the amount of$200,083.70 (two hundred thousand eighty-three

dollars and seventy cents) to Monroe County.

16. Further, in accordance with this plea agreement, on or before the date of my

sentencing, as part ofthe total amount of$600,083.70, I will execute a forfeiture agreement and

stipulation where I agree to forfeit $400,000.00 (lbur hundred thousand dollars), which

represents a perccntage ol'my earnings from Navitech from approximately 2009 through 2011i,

as follows:

(a) I will immediately liquidate the following accounts and provide the total amount

received from those accounts to my attorncy for deposit into his escrow account

immediately upon receipt and prior to my sentencing date:

(, Morgan Stanley Retirement Account (401K) with an estimated current

value d 5335,000.00 as oJ February 9, 2016, and an estimated gross

distribution o/ $191,300.00 aJier Federal and State Taxes and penalties

are withheld.

(ii) LPL F inancial Retirement Account (101K) 1.rith an estimated c'urrenl

vulue of5118,000.00 as o/ l-ebruary 9. 2016, and an estimared gross

dislribution of 568,110.00 after Federal and Slate T.&es and penalties are

v,ithheld.2

(b) I will provide the $25,000 (twenty-five thousand dollars) that I used to secure bail in

this matter to my attorney for deposit into his escrow account as soon as the release of

that bail money is approved by the Office ofthe Attorney General;

(c) At least three weeks prior to my sentencing date I will provide the Office of the

Attomey General with a swom affidavit which provides an accurate and complete

written accounting of my assets in whatever name and by whomever held and

wherever situated. "Assets" means any interest. direct or indirect, in any real or

personal property, any valuable right and any thing ofvalue whatsoever ("financial

disclosure affi davit").

(d) On or before the datc ol my sentencing, my attomey will provide an escrow check for

the amount received pursuant to fl 16(a) and fl l6(b) to the Oflice ofthe Attorney

General, to be disposed of in accordance with the provisions of CPLR Section I 349.

(e) If, after completing thc acts described in !l 16, I have not provided the full $400,000

lbrfeiture, and the Olfice ofthe Allorney General is satisfred that I am unable to pay

that remainder ofthe $400,000 based on the submission of the financial disclosure

af'fidavit referenced in fl l6(c), I agree to pay the remainder ofthe $400,000 forfeiture

within llve years from the earliest ofthe following, (i) my release from incarceration

from a New York State Department of Corrections and Community Supervision

facility, (ii) a grant of work release, and/or (iii) a grant ofparole, and will enter into a

forfeiture agreement and stipulation as such that will be filed with the Monroe county

Clerk as ajudgment pursuant to Criminal Procedure Law $ 420.10(6).

- Somc ol the lunds from this account will go towards the $200.083.70 in restitution set fonh in tl l5: rhe rcmarnderwrll go towards the fbrfeiture amount set fbrth in { 16.

17. I understand further that this plea agreement in no way releases me fiom civil

liability that I may have.

18. I understand that the Olfice of the Attorney General will not pursue a civil action

pursuant to General Business Law $$ 340 and 341 against me for actions described in counts one

through four of the Indictment.

19. I understand that ifl was convicted after trial ofthe top count ofthe Indictment (a

class "C" felony), I could have f-aced a maximum sentence o1'five to fifteen years in Slate Prison

and a line offive thousand dollars or double the amount of my gain from the crime, u'hichever

was greater. Moreover, I understand that if I was convicted after trial of the crime of

Combination in Reslraint of Trade and Competition, a class "E" felony, in violation of General

Business Law g$ 340 and 341, also known as a violation ofNew York State's Donnelly Act, I

could have faced a maximum sentence of one-and-one-third to four years in State prison and a

line ofone hundred thousand dollars or double the amount of my gain fiom the crime, whichever

was greater. I understand that ifl was convicted after trial of all or some ofthe counts ofthe

lndictment, I could have faced a sentence ofup to ten to twenty years in stale prison.

20. I hereby agree to enter a plea olguilty in accordance with the terms of the plca

off'er which has been made to me, having consulted with my attorney and having been advised of

all o1'the rights listed above.

21. I understand these rights, and the terms and conditions ofthis Plea Agreement,

which I have read completely. My plea of guilty is given freely, voluntarily, knowingly, and

without coercion of any kind. No threats or promises have been made to me to induce me to

plead guilty.

22. I am not under the influence o1'alcohol, drugs, or medication, nor is there any

other mental or physical impairment, which prevents me from understanding these proceedings

here or from entering this plea knowingly, intelligently and voluntarily. My mind is clear and my

judgment is sound.

23. This agreement is limited to the Office of the New York State Attomey General

and cannot bind other govemment agencies.

Dated: Rochester, New York,2016

ASSISTANT ATTORNEY GENERALPUBLIC INTEGRITY BUREAU

The above is hereby approved by,

S KEHOEG MONROE COUNTY COURT JUDGE

Agreedby: 'llMf\ {}t^MARY A. CORMAN

Witnessed by,

scHrANo, EsQ.

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EXHTBIT A FACTUAL ALLOCUTION COUNT TWO

From approximately 1998 through March 2009, I was a Sales Executive at SiemensBuilding Technologies, lnc. ("Siemens").

In or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the MonroeCounty (the "County") Chicf Inlbrmation Officer, and others, involving upgradcs to the

County information technology systems (the "lT project"). From its inception. theproject was intended to be llnanced through the use ol'a Local Development Corporalion("LDC").

During the development ofthe IT project, and prior to the release ofany Request forProposal fbr the I'f project (the "RFP") on June 18, 2004, I intended to submit a responseto the RFP through my employer, Siemens.

ln addition to developing thc IT project with Rivera and others, I also participated indrafting the RFP. I attended meetings with Rivera at his County office located at 50West Main Street, in Monroe County, where we worked on dralling the RFP. Rivera alsoprovided copies of drafi RFPs to me to review. I thercfore had knowledge oftheCounty's requests and requirements for the IT projecl that no other responding vendorhad.

Specifically, before the release of the RFP, Rivera provided me with specitic inlbrmationabout the scope of the countv hardware inventory that would be replaced and/ormaintained as part ofthe project.

I know that by developing the IT project with Rivera and others and receiving insideinformation regarding the Counly's requests and requirements lbr the IT project that noother responding vendor had. that Siemens and I had an untair advantage in what wassupposed to be a competitivc process.

From the beginning of its development, the 11'projecl was designed to be financedthrough an LDC. It was my idea to use an LDC to finance the IT project and I planned toinclude the use of an LDC in Siemens' response to the RFP.

l, along with others, formed Upstate Telecommunications Corporation LDC ("UTC')months before the release ofthe RFP to be the financing mechanism for the IT project.UTC was incorporated in or about May 2004. The RFP was released to the public onJune 18, 2004 and contained no reference to the County's plan to utilize an LDC tofinance the project.

I kne*'that the I'f project contract would be awarded to Siemens because ofmy plan touse UTC to llnance the project. 'l he award of the contract to Siemens wasoredetermined.

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I 0. Between the issuance of the RFP on June I 8, 2004, and the due date for responses onJuly 22,2004, Rivera and others assisted me in responding to the RFP by providinginlbrmation and advice regarding Siemens' RFP response.

I l. I know that by receiving inside information from Rivera and others between the date ofthe release of the RFP through the date responses to the RFP were due, Siemens and I had

an unfair advantage in what was supposed to be a competitive bidding process.

12. The Siemens response to the RFP was officially selected as the winning bid for the I'fproject.

13. I understand that my actions as described above in this txhibit A violated GeneralBusiness Law $$ 340 and 341 . also known as New York State's Donnelly Ac1.

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EXHIBIT B FACTUAL ALLOCUTION COUNT FOUR

l. From approximately 1998 through March 2009, I was a Sales Executive at SiemensBuilding Technologies, Inc. ("Siemens").

2. In or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the ChiefInformation Officer of Monroe County, and others, involving upgrades to the Countyinformation technology systems, which was financed through a Local DevelopmentCorporation C'I-DC") called Upstate Telecommunications Corporation ("UTC") (the"UTC project").

3. In or around 2006, I, along rvith Rivera. Robert Wiesner ("Wiesner"), the Director ofSecurity ibr the Monroe County Water Authority C'MCWA'), and others, begandeveloping a comprehensive public sal'ety and security plan fbr the County and theMCWA that, generally speaking, involved upgrading the County's and MCWA's saferyand security systems (the "Public Safety projecl").

4. From the beginning of its development, the Public Safety project was designed to behnanced through an LDC, just like the UTC project had been. lt was my idea to utilizean LDC as a financing mechanism for the Public Safety project.

5. From the outset, I was intricately involved in the development ofthe public Safetvproject because ofmy knowledge and experience in forming and utilizing an LDC tofinance a large project.

6. [n or around the summer or l-all of 2008, I planned to leave Siemens to start my owncompany for the purpose o1'receiving the assignment oflhe UTC contract from siemensand to obtain the contract for thc Public Safety project.

7. In or around the summer or lall of2008, which was prior to the release ofthe Request tbrProposal for the Public Salery project (the "RFp") by the county on February 20,2009, Iintended to submit a response to the RFp through this company that I intended to form.

8 [ formed Navitech Services corporation ("Navitech") which was incorporated on orabout December l, 2008, for the purpose ofreceiving the assignment ofthe UTC contracrtiom Siemens and to obtain the contract for the public Safety project.

9. In or around the summer or I'all of 2008, I, along with Rivera, wiesner and others besandrafting the Request lbr Proposal lbr the public Safety projecr (the.'RFp..).

10. Despite my plan to submit a response to the RFp, between the time we started draftingthe R-F'P in the summer o1'2008 and the date the RFp was released on February 20.2009.I communieared regularly uith Rirera. wiesner and olhers regarding the draliing ol-theRIrP. I also regularly attended meetings with Rivera, Wiesner and others durinq-this timeperiod, olien in Rivera's county olfice located at 50 west Main Street in Monrie

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County, where drafts of the RFP were handed out and discussed. I had draft RFps in mvpossession prior to the NrP release date of February 20,2009.

I l. I know that by receiving this inside information from Rivera, Wiesner and others Drior rothe release ofthe RFP, I had an unfair advantage in what was supposed to be acompetitive bidding process.

12. I knewthat the RFP would include 1en components to the public Salbty project. In oraround thc fall o1'2008, prior to the release oi'the RFI', with the assistanae of wicsner. Ibegan assembling the team that would join Navitech's response to the RFp, thus enablingNavitech to thoroughly respond to alr ten components ofthe RFp. I know thatassembling the team to respond to the RFp months before the RFp was released andmonths before other vendors cven knew thcre would be 1en components to the RFp,Navitech and I had an unrair advantage in what was supposed tobe a competitive bidaineprocess.

13. Between the time we srarred drafting rhe RFp in the summer of 200g and through at leastJanuary 2009, the RI'-P drafls explicitly stated under several different provisionJthat thecounty intended to ut ize an I-DC model 1., finance the public sat'ety project. l knewthat any reference 10 "r,DC" would be removed prior to the final RFp u.i"g ,"l.ur;.I ,othe public.

l4 I know that by removing that specification from the RFp, no responding vendor (exceptfor Navitech, because I had been privy to that inside information anJ u"'"""r. ,iiiri"g

""LDC was my idea from the outset) would know to respond to trr" nrp uy rt'irirg ^"'LDC as a financing model, even though that was the iounty,s preferencl urdp;;. Jknow that this gave Navitech and I an unfair advantage in whai was rrppor.J io u. ucompetitive bidding process.

15. Belween the datc ofthe rerease of the RFp on Februar y 20,2009.and the datc responseswere due on April 2,2009,1continued ro receive inronnation fiom Rivera and wiesnerthat other vendors did nor have acoess to, and I know thar this gave Navilech and I anunlair advantage in whar u'as supposed ro be a competirive bid"ding p;;;;.- - "'-"

l6 on or about Aptil2' 2009, Navitech submitted its response to the RFp. Navitech was theonly vendor whose response included the use ofan Lbc model t" n"""* irr. p.";""t,and who responded to all ten components of the RFp.

I 7' on or about April 28' 2009, Navitech was awarded the public Safety contracl. I knewprior to this date that Navirech would be awarded the public Salbty contract. rtrelwaroo1'the contract to Navitech was predetermined.

l S As planned tiom belbre Navitech was fbrmed and as proposed in Navitech,s RFpresponse. I and others worked together to form the Monroe Security and Safety SystemsLocd D^ev^elopment corporation, also known as the M3S LDC as a way,o tnun.'.ir"Public Sal'ety project.

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19. Following the award ol'the Public Sa1'ety contract 1o Navitech on April 28,2009, thecontract had to be approved by the County Legislature belbre being finalized.

20. I know that the Legislature asked about my role with Navitech drrring the approvalprocess. I directed others, including John Maggio ("Maggio"), to minimize my role atNavitech to the Legislature. because I had been so intricately involved in thedevelopment ofthe Public Safety projecr and the drafting of the RFP.

21. Similarly. I was not listed as having any ownership interesr. tille or position withNavitech in order to hide my actual role at Navitech. In reality, I was heavily involved inthe day-to-day operations and strategic decision making of Navitech.

22. I'he contracts betwcen the Ctounty and M3S and M3S and Navitech were ultimatelyapproved by the Legislature.

23. I continued to be involved in the day-to-day operations and strategic decision making ofNavitech during the execution ofthe public Safety project.

24. ln or around the July of2008, I incorporated rreadstone Development corporation.Maggio advised me regarding the fbrmalion of 'rreadstone but was never an ollicer oremployee of 'l'readstone. I was the sole 'freadstone employee.

25. Although I was rcchnically paid through l readstone lbr my work on the public Sal'etyproject, all ofthe lunds flom which I *,as paid came directly liom Navitech.

26. Moreover, on several occasions, even though I was not an employee or oflicer ofNavitech, I would requesl payment from Navitech directly foi reimbursement ofexpenses.

27. Eventually, Maggio and I agreed that we would splir the profits ofNavitech equally.

28. For 1ax purposes. Navitech had no profils, and any prolit from the UTC and public Salbtycontracts was split between Maggio and I pursuant to our agreement.

29. During the course of Navitech's existence, I was paid over 2 million dollars by Navitech.

30. I understand that my actions as described herein violated General Business Law $$ 340and 341, also known as New york State's Donnelly Act.

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EXHIBIT C FACTUAL ALLOCUTION COUNT F'IVE

From approximately 1998 through March 2009, I was a Sales Executive at SiemensBuilding lechnologies, Inc. ("Siemens").

ln or around 2004, I developed a project with Nelson Rivera ("Rivera"), then the MonroeCounty (the "County") Chief Information Officer, and others, involving upgrades to theCounty information technology systems (the "lT contract") which was linanced through aLocal Development Corporation ("LDC") called Upstate TelecommunicationsCorporation ("UTC').

UTC contracted with Siemens to manage and implement the IT contract.

I was involved in the day-to-day operations o1'Siemens' management of the I I'contractand was aware ol'all contracts involved in the project, including the scope ofthosecontracts.

Catalog and Commerce Solutions, LLC ("CCS') is a corporation that provides websitedesign, hosting and maintenance services. In approximately February 2005. ccS enteredinto a contract with UTC to provide technological support to the County, specificallyregarding the redesign and maintenance of the County's website.

From approximarely october 2005 through April 2009, I engaged in a scheme to defraud,pursuant to a single intent, involving the creation offalse or inflated contracts betweenccS and Siemens and bctwcen ccS and tlrc for the purpose of stealing money tiomthose fblse or inflated contracts to use lbr my personal benefit or the beneflt ofothers.

Specifically, I would come r"rp with a contract value, present that value to a CCSemployee, and ask that employee to prepare a scope of work lbr a contract betweenSiemens and clcS or between UTC and ccS. The contract value that I created wouldeither exceed the value ofwhat ccS would normally charge for the work involved in thalscope of work or in some cases the contract value would be created for a totallyduplicative scope ofwork. I would then facilitate and negotiate contracts betweensiemens and ccS or UTC and ccS based on the ccS employee's scope of work and thecontract value I created, represcnting that the work was necessary and worth the amountso1'the contract.

Because of the strucl.ure ofthe IT project. particularly the use ofan LDC to finance the I fprojecl, I knew that therc would be little to no oversight over contraots withsubconrractors and I took advantage ofthat lack ofoversight by creating inflated or f'alsecontracls with CCIS ibr my own benefit or the benefit ofothers.

some ofthe inflated or false contracts I facilitared as part of this scheme include:

a A prolbssional services agreement between ccS and urc entered into on orabout December 22,2005, under which CCS was to be paid $40.000.00 to

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invesligate and provide an outline lbr business opportunities that leverage Countyassets to provide eloctronic services packages 1o cilizens and businesses. I knowthat the $40,000 contract price thal I created for this contract was an inllatednumber lbr the scopc of work in the contract.

b. A consulting agreement betwecn CCS and Siemens entered into on or aboutMarch 29, 2006. under which CCS was to be paid $70,000 to research E_government opportunities with the County, develop a website lor UTC, anddevelop and provide printed and marketing materials to siemens relating to theUTC project. I kno*,that the $70,000 contract price that I creared tbr th]scontract was an inflated number for the scope of work in the contract. Moreover,I know that a website for U'l'c was not developed under this contract and thal noprinted or marketing materials were created.

c. A professional services agreement between CCS and Siemens entered into on,rabout February 7 ,2007 , under which cCS was to be paid $30,000 annualry tbr aperiod of live years to manage U'fC's website and to develop a projeclmanagement website for UTC. I know that conlract price thit I created fbr thrscontract was an inflated number for the scope of work in the contract. r alsoknow thar a projecl management website foi UTC had been created by ccs yea*prior to this conlract. This contract, although entered into for tive years, was'notrenewed after two years because the IT conlract was transferred from Siemens toNavitech Services Corporation (.'Navitech,,).

d. A prof'essional scr',ices agreement between ccS and Siemens entered into on orabout December 19. 2007 , under which ccS was to be paid $40,000 rbr thedevelopmenl of a proje* managemenr suite for the supiort of siemen. -o-ut'c-managed projects. I know that rhis contract was dupricitive ofprevious

"oni.u"r,and work performed on the rr project and that no sirvices w".e p.uuided unJe.this contract.

10 As part ofthis scheme' I used the proceeds ofthe inflated or rarse contracts ror mybenefit or the benefit ofothers as io ows: Siemens or UTC paid ccS the p.i"" oiir,.contracts previously described. I would then direct the ccS employee to *rit.

"t."t, o.make debit card purchases from the proceeds ol the inflated or false contract.. g";;"approximately May 2006 and April 2009, I directed the CCS employee,"n.'ut. p"y..*,from the srolen proceeds to individuals and entities including, urt not ri-it"ai.,iil""Monroe county Republican Flousekeeping account, John Miggio, Navitech. r,riends orMaggie Brooks, the Northstar christian Aiademy golf classic, Golisano children,sHospital' and myself. I also rnade or directed pui.iu.", be made ibr items ior.y..ri-others, including but not limiled to, televisions, a personal home computer, und;h;;.alarm system.

I I . I know that UTC paid Siemens for the value of the conrracts and that the Countyultimately paid UTC for the varue ofthese contracts. r know, therefore, that I stoleCounty money through the scheme I described herein.

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12. Through the scheme described herein, I stole $125,083.70 from Monroe County.

13. I understand that my actions as described herein violated Penal Law $ 155.40(l).

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EXHIBIT D

2.

1.

3.

A

).

From approximately 1998 through March 2009' I was a Sales Executive at Siemens

Building Technologies, Inc. ("Siemens")

In or around 2004, I developed a project with Nelson Rivera ("Rivera")' then the Monroe

a;;;t (,h" ':County") crtl.r inio".ution officer, and others' involving upgrades to the

County information tecnnotoiy systems (the'-lT contract') which was f,tnanced through a

io"ul b.u"lopmenl Corporation i"loc'.t called Upstate -felecommunications

Corporation ("U fC").

U'fC contracted with Siemens to manage and implement the IT contract'

Iwasinvolvedintheday-to-dayopelationsofsiemens'managementofthelTcontractand was aware ofall contracts involved in the project, including the scope ofthose

contracls.

In approximately December 2007, as an amendment to theIT contract, the C^ounty .

.nt.i"d ir.tto an aclditional contract with UTC to replace and standardize the County's

copier systems and provide managemenl services (the "copier project")'

1o implement the copier project, U'fC contracted with other companies, including'l'oshiba Business Solulions. Inc. ("'Ioshiba") and Siemens.

UTC entered into a contract with Toshiba directly where UTC agreed to pay'foshibaapproximately $1.8 million over a period offour years for services to be provided underthe copier project by Toshiba to UTC, including but not limited to "design procurementand installation services" (the "Toshiba copier contract"). UTC paid Toshiba in fullunder the contract.

urc also entered into a contract with Siemens in or around December 2007, separate andapart liom the overall management contract, to manage the Toshiba copie, proli.t ltte"Siemens copier contract"). According_to the Siemen-s copier contract, UTC wourdpaySiemens $175.000 Ibr the first year ofihe contract and smaler amounts over the nextthree years. I personally initiated and negotiated this contract.

I know that the work contracted for under both the Toshiba copier contract and theSiemens copier contract was duplicative. 'r.

tru" i"rp.r" "r,rr. Siemens copierconrract was to provide a s.urce of funds lbr me usl for my benelit o, tt. u.n.ni orothers.

o.

7.

8.

9.

10. ln May 2008, the Senior pGA Championship tournament (,,pGA toumament,.) r.r,as heldat oak Hill country crub in Rochestlr. sp"*... .ith-"'rou..,u-.nt purchased charetpackages ilom the pGA to host pa.ti.s und "tfr.. "r.ri, *Aer tents during thetournament. Chalet packagcs at Oak FIill for the tournarr$100.000. rur ruc rournament cost approximately

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I I . Prior to the May 2008 PGA tournament, I entered into an agreement with an individual at'foshiba that Siemens and Toshiba would share the cosl ofa chalet package. But Siemensrvould not pay fbr it. So I decided to use the $175,000 Siemens copier conlracl betweenSiemens and UTC to pay fbr Siemens'portion ofthe chalet package.

12. In order to facililate payment for the tent, I directed an individual at Toshiba to createinvoices indicating a contractual relationship between Toshiba and Siemens lor thedesign, development and management of the copier project, but in reality no contractbetween Toshiba and Siemens existed for the design, development and management ofthe copier project. These false invoices were provided to Siemens and Siemens in turngenerated payments to foshiba totaling $75,000.00. 'fhat $75,000.00 paid for Siemens,portion of the chalet package.

13. fhe $75,000.00 came tiom tj'l'c's paymcnt to siemens pursuant to the talse Siemenscopier contract that I created. I know that the county ultimately paid U fc tbr thiscontract. I knou'. therelbre, that I used county money to pay lbr siemens'portion ofthechalet package. I benefitted lrom sharing the chalet package with roshiba by attendingthe PGA tounament and entertaining friends, family, clients, prospective clients andothers at the expense of the county.

l4 l understand that my actions as described herein violated penar Law $ 155.40(l).

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