Ex-Director of Food Services for Hempstead Public Schools Steered Contracts to Co-Defendant in Exchange for Kickbacks

WPCNR FBI WIRE. From the Federal Bureau of Investigation. November 30, 2022:

Tuesday, at the federal courthouse in Central Islip, Sharon Gardner, the former Director of Food Services for the Hempstead Union Free School District (“HUFSD”), pleaded guilty to conspiracy to commit honest services wire fraud in connection with her participation in a kickback scheme. 

Gardner’s co-defendant, Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. (“Smart Starts”) and Prince Umberto’s restaurant in Franklin Square, previously pleaded guilty on October 27, 2022 to the same offense and is awaiting sentencing. 

Tuesday’s proceeding was held before United States District Judge Joanna Seybert.  When sentenced, the defendants each face up to 20 years in prison.  As part of their respective pleas, Gardner has agreed to forfeit approximately $120,000 and Caliendo has agreed to forfeit approximately $160,000.

Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG); Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General, Eastern Regional Office; Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; Anne T. Donnelly, Nassau County District Attorney; and Thomas P. DiNapoli, New York State Comptroller, announced the guilty plea.

“Gardner abused her position of trust as a school official in order to enrich herself with kickbacks she used to pay for overseas vacations and home furnishings.  Now she will face the consequences for her greed,” stated United States Attorney Peace.  “This Office will continue to vigorously investigate and prosecute corrupt officials who illegally profit from our public institutions.” 

“As today’s guilty plea demonstrates, the defendant exploited her role in order to take advantage of the taxpayers for her own personal enrichment.  The FBI and our Law Enforcement partners are committed to fighting public corruption and ensuring that those officials who abuse the trust placed in them are held accountable for their actions in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.

USDA-OIG Special Agent-in-Charge Dinkins stated, “The School Breakfast Program (SBP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent.  This joint investigation identified individuals who sought to profit from the SBP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”

“I am proud of the work of OIG Special Agents and our law enforcement partners in holding Ms. Gardner accountable for her criminal actions,” stated DOE-OIG Special Agent-in-Charge Harris.  “We will continue to aggressively pursue those who misappropriate federal funds for their own selfish purposes.  America’s students and taxpayers deserve nothing less.”

“This defendant leveraged her power as a Hempstead School District official to line her own pockets and those of her co-defendant for nearly two years,” stated Nassau County District Attorney Donnelly.

 “Gardner orchestrated the scheme, shirking her responsibilities to follow a legitimate bidding process and handing over the contract to Maria Caliendo, a local restaurant owner who had previously hosted Gardner’s holiday parties. Public funds are precious and finite. Individuals who exploit their positions to access those funds for their own financial gain will be found and prosecuted. I thank our law enforcement partners for their diligent work ensuring these defendants are now held accountable for their crimes.”

“Gardner exploited her position and betrayed the students, parents and taxpayers of the Hempstead School District to enrich herself,” stated Comptroller DiNapoli.  “I thank United States Attorney Breon Peace, Nassau County District Attorney Anne Donnelly, the FBI and the Inspectors General for the Departments of Agriculture and Education for their partnership in holding Gardner accountable for her actions.”  

According to court filings and facts presented at the plea proceeding, Gardner, in her capacity as the Director of Food Services for HUFSD, helped secure lucrative contracts for Caliendo’s company, Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students.  In exchange, Caliendo kicked back a portion of the contract proceeds totaling more than $100,000 to Gardner through fraudulent payroll deposits and other payments.  To conceal the illegal nature of the arrangement, those payments were deposited into a bank account that was created in the name of one of Gardner’s family members.  The kicked back funds were spent by Gardner on international vacations, a leased vehicle, and home furnishings.  Approximately $13,000 in kicked back funds were also withdrawn by Gardner in cash from ATMs located near her home and workplace.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Anthony Bagnuola and Charles P. Kelly are in charge of the prosecution.

The Defendants:

SHARON GARDNER
Age:  56          
Lindenhurst, New York

MARIA CALIENDO
Age:  57
Elmont, New York

E.D.N.Y. Docket No. 22-CR-229 (JS)

REAL ECONOMIC GROWTH IS ONLY 3%.

WHITE PLAINS UP 8% ON TARGET FOR $54.7 MILLION BY JUNE,  A RECORD.

WPCNR QUILL & EYESHADE By John F. Bailey November 29, 2022 UPDATED:

Westchester Sales Tax collections  have grown 11% over 2021, fueled by the extradordinary 8% inflation. Real growth of the Westchester economy is roughly only  3%.

Westchester, through October, according to the New York State Department of Taxation & Finance, has collected $703,206,310 in sales tax receipts through October 11% more than the $657,124,249 the county collected through the first 10 months of 2021.

The county, IF they collect the same revenues from sales taxes they received last October and December,  $61,536, 612 and $94,640, 895, the county will gross  $886,383,917 for the year.

The County, if county resident consumers spend at the current 11% growth rate in sales tax dollars in November and December will earn $17.1 million more putting them over $900 MILLION  ($903,563,342).  

In order to reach the $909,850,000 million in sales taxes budgeted for 2023 by the county financial experts, the county would have to have a 15% increase in the November December  two months in order to reach the $910 Million. It is possible.

 In 2021 the December sales tax went up to $94,640,995  million over $83,763,988 in December of 2021, an increase of 13% in one month one year over the other.

If the county does continue steady in its present growth it may fall short again as it did 6 years ago.

Optimism without reason has got the county into trouble in the last two years of the Robert Astorino administration. Projecting continued growth in the county economy based on an inflation-created revenue surge is going 90 miles an hour down a Dead End street and the brakes are gone (Thank you Hank Snow).

Thanks to covid, the county has had its deficit erased by millions in covid aid which they used to pay off their deficit caused by overoptimistic budgeting 6 years ago, and use the rest of it to replenish their fund balance, which actually should have gone to victims of covid. 

Now, this record sales tax year is being looked on as a perpetual phenomenon. Is the county again betting with chips they do not have?

Maybe. Or as an sportscaster friend of mine Steve Gilmartin of WMAL TV once said after the Washington Senators went 18-10 in their first 28 games, “We were living in a fool’s paradise, my friend.”

This 11%, figure watchers,  is not real growth. It is created by inflation in prices. Consumers cut back. The consumer has fixed income. So when higher prices bring in increased revenue companies and governments gain, but the growth is not real.

It just looks like the economy is growing and happy days are just around the corner.

But the growth is not real.

One trip to the supermarket will tell you that.

How’s White Plains doin’? Steady and Stable. 8% growth Not betting chips they do not have.

The City of White Plains is UP 8% after the first 4 months of its fiscal year with  $18,921,084 in sales tax revenues. If we match last year November December figures, we are sitting on $25,164,856 in revenues for the first 6 months.

If the city economy matches last the first six months of 2022 (when the city gained  $27,335,160 in sales tax revenues), the City of White Plains will post $52.5 million in sales tax receipts a sales tax record. White Plains should benefit from some inflation in those months, too. IF the first six months continue at 8% growth, the city will gain an additional $2,186, 812 dollars creating a final figure of $54,686,828.