Mineola, N.Y- Nassau County Executive Thomas R. Suozzi was joined by District Attorney Denis Dillon in announcing that Nassau County has received $3.2 million in asset forfeiture from defendants in the Benefit Plan Administration (BPA) fraud case.

Nassau County Executive Thomas R. Suozzi, right, was joined by District Attorney Denis Dillon, left, in announcing that Nassau County has received $3.2 million in asset forfeiture from defendants in the Benefit Plan Administration (BPA) fraud case

“The receipt of this check is the final chapter of the BPA scandal that cost county $70 million,” said Nassau County Executive Thomas R. Suozzi. “It was a betrayal of the worst kind, picking the pockets of taxpayers and helping to nearly push county government into bankruptcy,” added Suozzi.

Eleven people have pleaded guilty or been convicted as a result of investigations concerning BPA, the Melville-based Benefit Plan Administration firm. Their crimes included bribery, receipt of bribes, money laundering, filing false income taxes, tax evasion, mail fraud, bankruptcy fraud, obstruction of justice.

 “This case represents a sterling example of coordination between federal and state prosecutor.  Two assistant District Attorneys and one Financial Investigations from my staff joined with Assistant United State Attorney FBI and IRS agents to work full time one an exhaustive investigation and prosecution scandals in worst public scandals in Nassau County History,” said District Attorney Dillion.  This teamwork produced convictions of 11 defendants and the payment of $3.3 million, including today’s check for $3.25 million, in criminal forfeiture to Nassau County.  Combined with the civil settlements obtained in the BPA investigation, Nassau County has received in excess of $22 million in restitution.”

Those involved included a top official of the Thomas S. Gulotta administration, Deputy County Executive Robert McDonald, former Nassau Police Superior Officers Association head William Pattison, former Suffolk Republican leader William Michael Blake, former Suffolk Labor Commissioner Lou Tempera and Albert Isernio, former head of BPA.

The county’s worst scandal in history took hold in 1997 when BPA sought to take over management of the health insurance plan for Nassau employees by bribing Gulotta’s deputy, McDonald. Isernio promised the cash-desperate Republican administration of then-County Executive Thomas Gulotta that the switch to self-insurance from a state-run plan would save $1 million a month through the year 2000. The “false” projected savings ($12 million a year) were used by the Gulotta administration to fill an expected 1998 budget deficit estimated at between $60 to $80 million.

But by the time the contract, along with the bribe payments, was halted 18 months later following complaints, the county ended up losing $70 million, according to federal prosecutors.