Indictment unsealed in LDC investigation
Updated: Wednesday, October 16 2013, 06:13 AM EDT
Rochester, N.Y. - An indictment unsealed late Tuesday afternoon represents the first criminal charges stemming from an ongoing investigation into Monroe County's use of Local Development Corporations or LDCs.
Dan Lynch, a principal in the Navitech Corporation, pleaded not guilty in front of Judge Robert Noonan of Genesee County who was assigned to this case. Lynch is facing three criminal charges: second-degree grand larceny and two counts of falsifying business records. Those charges are related to an act in 2008 and the use of a tent at the senior PGA and how it was paid for.
Navitech Corp was assigned two contracts awarded to two LDCs doing business with Monroe County. Both were harshly criticized in audits by New York State Comptroller Thomas DiNapoli.
In 2004 an LDC called Upstate Telecommunications Corp. (UTC) was formed. In 2005 UTC was awarded a 16-year, $99 million contract to handle phone, telecommunications, technology, and information services for Monroe County. UTC later assigned the contract to Navitech Corp.
In 2010 an LDC called Monroe Security and Safety Systems (M3S) was incorporated and later awarded a 20-year, $224 million contract with Monroe County. M3S was formed to provide and maintain various safety and security systems upgrades and functions for Monroe County. M3S later assigned the contract to Navitech Corp.
Monroe County leaders have maintained that the LDC arrangement provides taxpayers with savings and is an innovative approach to government business.
Comptroller DiNapoli's two audits (UTC in September 2011, M3S in October 2012) criticized the arrangements as lacking oversight and not realizing the taxpayer savings that are claimed. The comptroller also questioned the process with which the contracts were awarded and noted many connections to former county officials existed with Navitech and the LDCs.