A former town supervisor in Greene County is one of two men facing felony charges with fraud relating to grants extended to Prattsville in the wake of Hurricane Irene, according to a media release from the U.S. Department of Justice.
An indictment unsealed Friday, Nov. 8, charges former Prattsville Town Supervisor Kory O’Hara, 42, and Prattsville resident Stephen Baker, 68, with conspiracy to commit wire fraud, wire fraud, and theft concerning a program receiving federal funds. O’Hara is also charged with bank fraud and making false statements in a loan application.
The media release noted Hurricane Irene caused significant damage to Prattsville in August 2011, resulting in the issuance of millions of dollars in rehabilitation grants to Prattsville and its residents. As town supervisor, O’Hara entered into various grant agreements, including with the New York State Housing Trust Fund Corporation and the New York Department of State.
The indictment charges O’Hara and Baker with conspiring to fraudulently obtain grant funds.
According to the indictment, between 2013 and 2015, Baker provided O’Hara with false invoices from his Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work on O’Hara’s automotive garage, O’Hara’s Service Station, that Moore’s Homes did not perform. O’Hara issued checks to Moore’s Homes reflecting payment on the invoices, but Baker returned all of the money.
O’Hara, who was town supervisor at the time, then submitted the false invoices and fully reimbursed checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain $24,915 in grant proceeds under the New York Main Street Program, the release said.
The indictment further alleges that, between 2014 and 2016, O’Hara submitted the same false invoices and fully reimbursed checks to the New York Department of State and Office of the New York State Comptroller to fraudulently obtain grant proceeds for Prattsville under the Local Waterfront Revitalization Program.
In addition, the indictment alleges that O’Hara submitted other false invoices to obtain grant proceeds from the New York State Electric and Gas Corporation, and submitted the same false invoices and made false representations to NBT Bank, N.A., in applying for a business loan in November 2012.
O’Hara and Baker appeared Friday in federal court in Albany before United States Magistrate Judge Daniel J. Stewart, and were released pending a trial.