“Prosecutors spent part of Monday walking a key witness through bond issues and questionable financial tactics as they laid a foundation for the corruption case against Ramapo Supervisor Christopher St. Lawrence.
In the afternoon, a defense lawyer got his turn with the witness, an underwriter, as St. Lawrence’s jury trial continued in U.S. District Court in White Plains.
[Day Two] On the stand: Ned Flynn, managing director of Jefferies LLC, which was the underwriter for a $25 million bond for the baseball stadium, is on the stand, and spent the afternoon being cross-examined by defense lawyer Michael Burke. He is the first witness in the case.
Key testimony: Flynn discussed documents created for a number of town bond issues that were signed by St. Lawrence and Aaron Troodler, then executive director of the RLDC and a deputy town attorney. In signing them, the pair maintained everything they reported about the town’s and RLDC’s finances was accurate to the best of their knowledge.
Flynn said he never spoke to any other Town Board members about the bond issues in question.
On Thursday, he had testified that his company likely would not have supported the bond offering had it known that a $3.6 million transfer from the RLDC into town funds was a phony receivable, as prosecutors claim.
Today, he said the town auditors, O’Connor Davis, had been asked in 2013 to give tacit approval to a positive general fund balance, including what prosecutors say was a phony line for money said to have been received from the Federal Emergency Management Agency. The auditors would not, citing a lack of information, Flynn said.
He also talked about how important the state of the town’s general fund is to investors, as an indication of the community’s financial health.
In addition to the series of bond issues in question in the criminal case, Flynn discussed how the 2013 FBI raid on town offices seeking documents in the investigation affected other bonds the town needed for infrastructure work along with short-term loans used to make payroll. He said once the criminal investigation became public it affected the interest rate for that portion of town borrowing because the town was seen as a riskier investment.”
For the complete Journal News including the cross examination by St. Lawrence’s attorney, Michael Burke, click here.