Ties to school questioned
by Sandra Peddie and Eden Laikin

LINK

February 20, 2006

Three William Floyd school board members who have served over the last eight years have ties to companies that received millions of dollars in business from the district after they were elected, according to district records.

Mark Mensch has been a principal in three companies -- a bus line and two athletic training companies -- that have received more than $9 million. On June 30, 2004, he stepped down from the school board and became the district's athletic director and now makes $119,646 a year.

Board member William Guiducci is a vice president of Long Island Commercial Bank, which handled nearly $20 million last year in school district funds. The district first opened accounts there in July 1998, the same month he started working at the bank.

And board member Patrick Nocerino works as a supervisor in the testing division of Elemco, an electrical contractor based in Bohemia, that has received more than $2.9 million in business from the district.

All three men abstained from voting on the contracts, and Guiducci and Nocerino denied any impropriety. Mensch declined to comment.

The sprawling William Floyd school district, which encompasses Mastic, Mastic Beach and Shirley, is the second-poorest district in terms of taxable wealth on Long Island. In the last 19 months, it has weathered the indictments of six current and former school officials. Three weeks ago, two former top district financial officers pleaded guilty to stealing hundreds of thousands of dollars.

Asked whether William Floyd has a policy on board members or employees having contracts with the district, school officials said they follow the state's general municipal law on conflicts of interest. That law prohibits school board members from working for a company that has a contract with their school district, unless the school board member has no ownership interest and doesn't receive any money as a result of the contract, said Mark Davies, chairman of the state bar association's government ethics committee. He added that abstaining from a vote or disclosing one's interest does not alleviate the conflict.

The Suffolk County district attorney's investigation into corruption at the school district, which has gone on for more than two years, is continuing, said Edward Heilig, chief of the office's economic crime bureau. Although Heilig said he could not comment on specifics of the probe, a letter released by the school district confirms that the DA has subpoenaed records related to an athletic training company tied to Mensch.

In a brief interview, Mensch refused to answer questions about the athletic training company. He said he never worked for his father's bus company, Montauk Bus Service. When asked about court papers in which he said he was an employee of Montauk Bus Service, he referred questions to his attorney. His lawyer agreed to return a telephone call requesting an interview, but did not.

Guiducci and Nocerino, who do not own the companies they work for, said they did not gain financially from the contracts. They also said they disclosed their interests.

Board members serve two-year unpaid terms. Each time a contract was awarded, the vote was unanimous, with the abstentions. In interviews, other board members defended their colleagues. "Since I have been on the board, I have not seen anyone personally benefit," said Robert Vecchio, who was elected in 2003. "Nor should they."

A 'conflict of interest'

Community activist Dominic Licata, however, said he was troubled by the business dealings because "it's a conflict of interest. You're supposed to be the watchdog for the taxpayer, and you're not being the watchdog."

Asked about the board's business relationships with the district, Monroe Freedman, legal ethics professor at Hofstra University, said the board members had created a "a very awkward situation." He said the conflicts arise because it appears that board members could be trading votes for the business deals.

"In my judgment, they shouldn't continue serving at all on the board," he said. "It's an unhealthy situation. From my perspective, it's not a legal matter, it's an ethical matter and a matter of important public policy. And I think it's very unhealthy and undesirable."

Levittown Superintendent Herman Sirois said none of his board members have such conflicts and that they "should be avoided, whether they are legal or not. It has to be a local decision, but we should try to avoid dealing with the perception of impropriety."

Suffolk District Attorney Thomas Spota, who recently empaneled a special grand jury to investigate schools countywide, has publicly criticized the leadership of William Floyd Superintendent Richard Hawkins. He has said that officials have not cooperated fully with investigators and that "it's clear ... that there's something terribly wrong in this district."

'Nothing smells the least bit'

Hawkins, who was appointed by the school board, defended himself and the board. "From a factual standpoint, nothing smells the least bit of anything being wrong. Everything here is being scrutinized, but I don't think this gives anyone pause," he said in an interview.

Responding to concerns raised about board members' business connections to the district, Hawkins said, "It's just perceptual. What we've done is we have disclosed it and abstained from voting. There's nothing wrong with that."

Guiducci was first elected to the board in 1992. In July 1998, he joined Long Island Commercial Bank. On July 8, 1998, records show, on Mensch's motion, the board voted to deposit funds at Long Island Commercial Bank for the first time.

Deposits are an important moneymaker for banks because they invest the funds. They make a profit on the difference between the interest they pay on deposits and the interest they earn on investments and loans.

Guiducci abstained from the vote and disclosed his role. In an interview, he said he was manager of the Shirley branch and that all decisions affecting the account are made in the bank's Islandia office. "I have nothing to do with making those decisions," he said.

Nocerino, who is a supervisor at Elemco, was first elected to the board in 1994. In January 2002, Elemco was the lowest bidder for a $1.5 million co-generation project, a power plant that provides electricity to several school buildings.

The following year, the district awarded $956,532 more in contracts to Elemco, which again was the lowest bidder. Then in July 2005, the board approved an additional $17,030 in work, according to minutes of board meetings.

Each time, Nocerino abstained from voting and disclosed his job there. In an interview, he said, "I work in a different area. I do electric testing."

$1.4M contract in 2001

Mark Mensch was first elected to the school board in 1989. His family runs Montauk Bus, which serves school districts but also offers charters. In court papers, Mark Mensch said he is an employee of the company. Experian, the national credit rating service, lists him as a co-owner.

In July 2001, the school district awarded a $1.4 million contract to Montauk Bus Co., which in July 1997 had filed for bankruptcy, citing $4.6 million in liabilities. The bankruptcy case is pending.

Montauk Bus was the low bidder for the 2001 contract to transport special education students. While Mark Mensch abstained from the vote, he did not disclose any role in the company. Since then, school records show, the district has annually approved contracts with Montauk Bus, paying the company up to $2 million a year. Montauk Bus' annual sales reach about $5 million, according to business records.

That contract was not the only one with a company in which Mensch had an interest. Records show that the board has awarded athletic-training contracts to two Mensch companies since 2001. Because they were considered contracts for professional services, they were not subject to competitive bidding, district officials said.

Mensch abstained from voting and disclosed his role as administrative director of Sports Rehabilitation Network in July 2001. When the board later hired Longwood Sports Network, he abstained from the vote but did not disclose any role. However, business records list him as the company's chief executive officer. To date, the district has paid Longwood $92,727, according to records.

By 2002, Mensch had become embroiled in a bitter legal battle with Southampton Hospital, which had purchased another fitness company from him and sued him for violating a non-compete clause in their contract. At one point, he was even enjoined temporarily from engaging in a sports rehabilitation business. In early 2004, the case was resolved with an undisclosed settlement.

Hawkins, in response to a written question, said he didn't know that a court had ever barred Mensch from engaging in a sports rehabilitation business.

By May, Mensch had decided not to run for re-election to the school board. And in July, he became the district's athletic director.

District officials said they no longer use Mensch's companies for athletic training. However, when a reporter called his district athletic office to ask which company they use, the woman answering the phone referred the reporter to Sports Rehabilitation Network.

Staff writer Karla Schuster contributed to this report.
Copyright 2006 Newsday Inc.

The Mastics-Shirley Citizens Coalition for Honesty and Integrity in our Schools

About:

The Mastics-Shirley Citizens Coalition for Honesty and Integrity in our Schools was formed in January 2006 to voice citizens and parents concerns regarding illegal activity and unethical behavior by William Floyd School District Officials and Board of Education Members.

Our coalition would like to thank DA Thomas Spota and the Suffolk County District Attorneys Office for all their hard work, as well as Newsday for their coverage of the William Floyd School District corruption.

Objectives:

The coalition will strive for real and necessary change with regard to William Floyd School District management. We believe at the very least, School Superintendent Richard Hawkins should apologize to our community and take full responsibility instead of making excuses for the illegal activity of school officials, two of which have already plead guilty. Furthermore, Mr. Hawkins has condoned contracts to School Board members companies, which is highly unethical if not illegal. This is a quote from Superintendent Hawkins in a recent Newsday article: "It's just perceptual. What we've done is we have disclosed it and abstained from voting. There's nothing wrong with that." Indeed Mr. Hawkins, their is something very wrong in supporting such reprehensible and unethical behavior.

Furthermore, Superintendent Hawkins continues to employ a Mr. Dennis Fidotta, recently indicted for filing
a false instrument and official misconduct. While this organization believes in the rule of law that
states a person is "innocent until proven guilty", we do think that Mr. Fidotta should at a minimum be
suspended from his position until the outcome of his trial. Athletic Director Mark Mensch, a former board
member, should also be required to resign from his position because our school district should not practice NEPOTISM in finding and hiring qualified applicants, especially those candidates who own companies that have contracts with our schools. Unfortunately, Superintendent Hawkins would have us believe that this is all quote "just perceptual".

In addition, a majority of our members feel that Superintendent Hawkins should be required to resign as
he has chosen to ignore The New York State General Municipal Law on Conflicts of Interest. That law
prohibits school board members or employees from working for a company that has a contract with their school district. As for those School Board members employed by companies that have received contracts from the district, we believe that they should be required to resign their posts effective immediately. In order to achieve these objectives, this organization will promote the website http://wfsdscandal.50webs.com as well as voice our objections through other media formats.

Finally, our organization would like to state that our concerns regarding school district mismanagement and corruption should not be misunderstood as a lack of support for the vast majority of teachers and school staff that continue to be the exemplary role models our children need and respect, as well as provide the quality education they deserve.

Contact:

Unfortunately, group membership must remain anonymous for fear of retribution either to members or their children who are currently enrolled within the school system.

email: MSCCHIS@yahoo.com