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.
Reaction came from County Executive Edwin Day. “Elected officials are entrusted with the public’s money. When they squander it or use it inappropriately, trust in government is damaged. If these allegations are true, this is a very sad day in Ramapo and all of Rockland,” Day said.
Deputy Town Supervisor Patrick Withers said the charges “cast a dark cloud over our town.” He said the charges are not a surprise since they are coming on the heels of a multi-year federal investigation, but “the nature and extent of the charges are shocking.”
County Legislature Chairman Alden Wolfe said, “Any time an elected official is charged with a crime that betrays public trust, we all suffer.” Wolfe said the legal process will not play out. “In the meantime, taxpayers are concerned about how they might be impacted by the town’s finances. An independent review is absolutely necessary. Ultimately, today’s events remind us that there is zero tolerance for misconduct in government.”
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