Legal papers show Oyster Bay strategy for Singh loan guarantees

Newsday

The loan guarantees that led to federal securities fraud charges being made against former Oyster Bay Town Supervisor John Venditto last month started with a legal structure conceived of by the law firm where Nassau County Executive Edward Mangano previously worked, recent legal filings show.

Federal prosecutors in legal filings named Uniondale-based Rivkin Radler LLP as the firm that was hired to find a way the town could indirectly guarantee the first line of credit issued to a town concessionaire. Federal prosecutors allege that from 2010 to 2012, the town guaranteed four loans totaling $25 million. The Securities and Exchange Commission’s civil complaint against Venditto and Oyster Bay last month doesn’t refer to the law firm by name.

“Rivkin Radler . . . was hired to find a way around the New York State Constitution so the TOB [Town of Oyster Bay] could issue the loan guarantees,” federal prosecutors said in a Nov. 14 memorandum of opposition to the defendants’ pretrial motions filed in U.S. Eastern District Court in Central Islip in the criminal corruption case against Venditto and Mangano. Both men were charged with conspiracy to commit bribery, fraud and obstruction of justice. Mangano was also charged with extortion and Venditto was also charged with securities fraud. They have pleaded not guilty.

 

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