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AG's investigation nets first charges 

A grand jury investigation into Monroe County-affiliated local development corporations, led by the Attorney General's Office, has resulted in its first set of charges.

Today, Dan Lynch, president of Treadstone Development Corporation, a firm that contracts with two county-connected local development corporations, was arraigned on a charge of second-degree larceny and two charges of falsifying business records, says a press release from the Attorney General's Office.

Lynch turned himself into law enforcement officials this afternoon. During his arraignment, he pleaded not guilty and was released on his own recognizance, which means no bail was set.

The AG's office alleges that Lynch stole a total of $75,000 from his former employer, Siemens Building Technologies, and from the Upstate Telecommunication Corporation LDC. The LDC leases computers, phones, and other information technology equipment to the county.

Citing the indictment, the press release alleges that Lynch used a complicated billing arrangement involving UTC and Toshiba Business Solutions to submit $75,000 worth of false invoices to Siemens. The billing scheme was meant to skirt a Siemens policy against entertainment expenses, and the money was used to pay for a party tent at the 2008 Senior PGA Championship at Oak Hill Country Club, the indictment says. (The indictment is embedded below.)

Monroe County Executive Maggie Brooks issued the following statement in response to the charges:

"An officer of a private company that serves as a sub-contractor for a public Local Development Corporation was today indicted on criminal charges. This comes as the result of an investigation in which Monroe County continues to cooperate. The County is now working closely with respected former State Attorney General and U.S. Attorney Dennis Vacco to explore all options to safeguard the continuity of our technology and public safety communications infrastructure. We will continue to do everything in our power to protect the continuity of updated communications technologies for First Responders while making whatever changes are deemed necessary to ensure the efficient and ethical handling of taxpayer dollars."

The press release from the AG's Office says that the charges grew out of a 2011 audit by the Comptroller's Office, which "found irregularities in $1.9 million in management fees at UTC."

Lynch indictment

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