NEW YORK – Ramapo Town Supervisor Christopher St. Lawrence and N.
Aaron Troodler, the former executive director of the Ramapo Local Development
Corporation, were indicted with 22 counts of securities fraud, wire fraud,
and conspiracy in connection with municipal bonds issued by the town and
by the Rockland LDC.
The indictment was unsealed on Thursday.
US Attorney Preet Bharara said his office has brought what is believed
to be the first ever municipal bond-related criminal securities fraud
charges against public officials. “As alleged, Christopher St. Lawrence
and N. Aaron Troodler kicked truth and transparency to the curb, selling
over $150 million of municipal bonds on fabricated financials,”
Bharara said. “I doing so, they defrauded both the citizens of Ramapo
and thousands of municipal bond investors around the country.”
FBI Assistant Director-in-Charge Diego Rodriguez said the men “allegedly
engaged in a complex securities fraud scheme so they could hide public
funds being used for the construction of a stadium and other projects.”
He said the activity allegedly continued even after they became aware
of the town and the corporation tasked with development initiatives were
subjects of a federal investigation.”
The indictment charges that St. Lawrence and Troodler lied to investors
in the town’s and RLDC’s bonds in order to conceal the deteriorating
state of the town’s finances and the inability of the RLDC to make
scheduled payments of principal and interest to its bondholders from its
own money.
Authorities said they lied to investors primarily by making up false assets
in the town’s general fund.
