Rules Committee Releases Investigation Report on Orange County Industrial Development Agency
November 29, 2021 - Goshen, NY - The Orange County Legislature’s Rules, Enactments, and Intergovernmental Relations Committee has released a report focusing on the validity of signed contracts the Orange County Industrial Development Agency (IDA) had with Galileo Technology Group (GTG) and The Strategic Economic Consortium (TSEC). The credibility of these contracts had come into question following the September 10th guilty pleas of Vincent Cozzolino, Laurie Villasuso, and Edward Diana. All were formerly associated with the IDA and plead guilty to various crimes stemming from a failure to disclose conflicts of interest.
The convictions were the result of an investigation by the Office of the New York State Comptroller and the Office of the Orange County District Attorney at the behest of the Legislature.
In July 2021, the Legislature authorized the Rules Committee to conduct an investigation and issue a report of its findings. The Committee was provided access to thousands of pertinent documents including contracts, project expenditures, and lease agreements. The Committee reviewed IDA attorney engagement letters, meeting minutes, resolutions, and the joint report from the Comptroller and District Attorney.
The Rules Committee finds that Cozzolino, Villasuso, and Diana perpetrated a scheme to defraud the IDA of millions of dollars. Their actions and failure to disclose their conflicts of interest render the contracts executed by Cozzolino, Villasuso, and Diana, void.
The Committee’s report recommends the current IDA Board:
Pursue the appropriate legal action against Cozzolino, Villasuso, and Diana
Hold Cozzolino, Villasuso, and Diana responsible for repayment of every penny they illegally received during their criminal activities. The restitution amounts paid by these criminals in their plea agreements does not represent the gross amounts of money they received during the years they perpetrated their scheme.
Make appropriate civil claims against GTG and TSEC. There is unequivocal evidence that both of these companies benefited illegally from contracts made with the IDA.
Seek any and all appropriate claims and actions against attorney Kevin Dowd. Dowd was retained to render legal services to the IDA and OCFC and failed to properly safeguard the IDA and the OCFC from the criminal acts of the three individuals.
Encourage citizens to serve on boards, such as the IDA. Doing so comes with great responsibility. Board members should make certain that any potential conflicts of interest, perceived or otherwise, are properly disclosed.
The findings in this report are submitted to the entire Legislature, pursuant to Resolution No. 174 of 2021. The Committee reserves its right to continue this investigation, to issue subpoenas, hold hearings, receive evidence, take testimony, and utilize any other lawful information gathering device for evidence not presently before the committee.
The conclusions and recommendations in this report were unanimously approved by the committee. “We stand united against anyone who would betray the public trust for their own personal gain - no matter their name, title, or political affiliation,” Chairman Faggione said.
Link to the full report can be found HERE>