NY ANNOUNCES ARREST OF FORMER SIEMENS EXECUTIVE FOR STEALING

(The following is a reformatted version of a press release
issued by the Office of New York Attorney General Eric T.
Schneiderman and received via electronic mail. The release was
confirmed by the sender.) 
October 15, 2013 
A.G. SCHNEIDERMAN & COMPTROLLER DiNAPOLI ANNOUNCE ARREST OF
FORMER SIEMENS EXECUTIVE FOR STEALING FROM MONROE COUNTY PROJECT 
Indictment Issued By Special Grand Jury After Joint
Investigation Of Local Development Corporations By Attorney
General’s Public Integrity Bureau And Comptroller’s Office 
Daniel Lynch Charged With Falsifying Business Records To Steal
$75,000 For PGA Golf Tournament 
ROCHESTER - Attorney General Eric T. Schneiderman and
Comptroller Thomas P. DiNapoli today announced the indictment of
Daniel Lynch, a former sales executive of Siemens Building
Technologies and current president of Treadstone Development
Corporation, for stealing $75,000 from Siemens and the Upstate
Telecommunications Corporation (UTC). UTC, a local development
corporation, is a not-for-profit organization that contracts
with Monroe County to provide upgrades to the County’s
information technology and copier systems. Lynch is charged with
Grand Larceny in the Second Degree, a class C felony, and two
counts of Falsifying of Business Records in the First Degree, a
class E felony. The maximum prison sentence for Grand Larceny in
the Second Degree is five to 15 years in state prison. 
Lynch was arraigned before the Honorable Robert Noonan, Acting
Supreme Court Justice of Monroe County. He was released on his
own recognizance. 
According to the Attorney General’s indictment, Lynch, 50, of
Rochester, caused Toshiba Business Solutions to create and
submit false invoices to Siemens to pay for a portion of a tent
at the 2008 Senior PGA Championship tournament held at the Oak
Hill Country Club. The indictment alleges that Siemens’
corporate policies prevented Lynch from using company funds to
pay for the tent. The false invoices submitted to Siemens by
Toshiba Business Solutions indicated that a contractual
relationship existed between Siemens and Toshiba for the design,
development, and management of a UTC copier project, when in
fact Toshiba had already contracted directly with UTC for those
services. The false invoices submitted to Siemens totaled
$75,000, which Siemens paid to Toshiba. Toshiba then used the
$75,000 to purchase the Senior PGA Championship tent. The
indictment further alleges that Lynch caused false entries to be
made in the business records of UTC and Siemens to conceal the
theft. 
“My office will not tolerate theft of taxpayer dollars, whether
by a public official, or by a contractor for a publicly funded
entity,” Attorney General Schneiderman said. “Those who scheme
to steal from New York taxpayers will be held accountable. I
want to thank Comptroller DiNapoli for his continued partnership
in our mission to root out public corruption and ensure that
taxpayer money is protected.” 
“It is past time to shine a light on the shadow activities of
local development corporations (LDCs),” State Comptroller Thomas
P. DiNapoli said. “As my office has found in audit after audit -
- including one of the Upstate Telecommunications Corp. - LDCs
that operate outside the public eye routinely abuse taxpayer
dollars and must be subject to independent review. I thank
Attorney General Schneiderman and his office for their thorough
work in following up on our audit findings.” 
The criminal investigation stemmed from a 2011 Comptroller audit
which found irregularities in $1.9 million in management fees at
UTC. 
The Attorney General expressed his appreciation to the Office of
the New York State Comptroller for its assistance in this
investigation, particularly its Investigations Unit. 
This case is being prosecuted by Assistant Attorney General Ann
Marie Preissler, with assistance from Legal Support Analyst
Jacqui Brown and Investigative Analyst Brian Selfon, under the
supervision of Public Integrity Bureau Deputy Chief Stacy
Aronowitz and Chief William E. Schaeffer, under the supervision
of Executive Deputy Attorney General for Criminal Justice Kelly
Donovan. The prosecutors were assisted by Organized Crime Task
Force Investigator Christopher Reidy, under the supervision of
Deputy Chief Antoine Karam and Chief Dominick Zarrella of the
Investigations Bureau. 
The charges against Lynch are allegations. All defendants are
presumed innocent until and unless proven guilty in a court of
law. 
New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.ny.gov
Twitter: @AGSchneiderman 
(bjh) NY 
#<873920.660640.3.9.1.0.76>#
 
 
Press spacebar to pause and continue. Press esc to stop.