Poughkeepsie Journal
Saturday, December 7, 2002
Paroli, who served federal prison time after being convicted in a corruption scandal that rocked the town several years ago, told Judge Charles L. Brieant he did not have the money to pay for an attorney.
''I'm here on my own,'' Paroli said at the first court date in the town's civil suit against the former political leader, former town officials and local businesses. ''I don't have any resources for counsel.''
In addition to 21 months in federal prison, Paroli was also ordered to pay $19,300 in restitution and fined $5,000 at his sentencing two years ago. He was released early based on federal sentencing guidelines.
Meet again in 9 months
Brieant set Sept. 15 as the next conference in the case. Between now and then, lawyers for the town and the more than 20 defendants will go through discovery, where evidence is exchanged, and begin depositions, a lengthy process. If no settlement is reached and the pretrial process goes smoothly, a trial could start sometime next fall.
The town board this year filed the suit, alleging the $6.95 million purchase was part of a larger scheme hatched by Paroli and others to defraud taxpayers and enrich themselves. The suit claims the town board at the time backed the scheme and that bribes and other illegal acts falsely inflated the price of the building, purchased from Thomas and Betty Espie. Repairs and other problems at the facility have since hiked the price to $7.5 million.
About 15 lawyers were present in the courtroom for the approximately one-hour session. Attorneys then met privately to work out scheduling matters.
Most defendants have denied wrongdoing or declined comment.
David Kunz, an Albany attorney whose firm represents the town, said after the court session the town believes it has a good case.
''We feel very confident,'' Kunz said.
But Brieant hinted that some of the defendants named in the complaint may be dropped from the suit because of lack of funds. Former town Assessor Basil ''Bill'' Raucci committed suicide in 1997 after being questioned by authorities about the scandal. Former town Water Superintendent Fred Andros died last week in state prison, where he was serving time on an unrelated murder conviction.
The suit lists Raucci's estate as a defendant and Andros' estate could be added as well.
''You don't get oil out of a dry hole,'' Brieant said. ''If there is a small amount of money, I don't think you want to be pursuing a widow.''
Town lawyers said it remains to be seen what assets the defendants have.
The civil suit follows a four-year state and federal probe into town corruption, much of which focused on the sale of the Tucker Drive property. It led to the convictions of Paroli and four former town employees on graft-related charges. Paroli pleaded guilty to a single count, although that count did not relate to the police/court facility purchase.
No elected officials were ever charged.
Feds took a look
Paroli told Brieant Friday the sale was looked into by authorities during the probe.
'''This issue was thoroughly investigated by the FBI,'' Paroli said, adding that if he is deposed in the civil suit, he may plead the Fifth Amendment and maintain his right to silence.
After court, Paroli said, ''I am happy the matter is under way so we could put it away in the courts and put it to rest.''
When the judge suggested he might find a Dutchess County attorney known from his years as a political leader to help, Paroli said that was unlikely.
''When I was indicted, everyone forgot who I was,'' Paroli said.
The town's suit has sparked questions about the purchase and could lead to an extended court battle. Supporters say it could help recoup money the town believes it was swindled out of.
Others believe the suit could end up costing the town hundreds of thousands of dollars to litigate with no promise of victory.
Brieant cautioned those in court that the suit was not about punishing those who allegedly took part in any scheme, or about vindication for the town.
''This case,'' Brieant said, ''is about money.''
'Sham' lease alleged
Former town attorneys Patrick Moore and Frank Redl are accused of helping the town create a ''sham'' lease with the former owners of the property, part of a larger scheme to falsely pad the building's price. The suit claims the scheme was hatched by Paroli and approved by the former all-GOP town board during an illegal meeting at Paroli's home.
Redl attended Friday's court session, but declined comment.
Former Democratic Supervisor Ann Barcher also attended, speaking with Kunz afterward in the hallway and offering her assistance in the case.
Town officials who were in office at the time of the sale have said the increase was needed to cover extra costs to rehabilitate the building and an increased acreage with the sale.
Key to the town's case is the allegation that officials circumvented the Wicks Law, which requires competitive bidding on various aspects of municipal projects.
The suit also claims officials violated the federal RICO law, or Racketeer Influenced and Corrupt Organizations Act. The law is usually used to prosecute organized crime figures. Several defense attorneys said they planned to challenge that aspect of the case.
Meanwhile, six former town board members have filed suit in Dutchess County Court claiming the Hartford Financial Services Group should pay for their legal fees as promised in the town's policy. The company disagrees and the matter will likely be decided by a judge.
Moore and Redl will have their defenses paid for by the Hartford, although the company would not pay any damages should the town win its case.
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