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Jun 9, 2009 7:19 PMPublication: The East Hampton Press

New subpoena in East Hampton corruption investigation

Jun 9, 2009 7:19 PM

East Hampton Town’s bond counsel, Fulbright & Jaworski, has received a subpoena from the Suffolk County District Attorney’s office for records of its interaction with the town between January 2006 and April 7 of this year, as part of an ongoing investigation into the town’s finances.

Last month, the district attorney’s Government Corruption Bureau issued subpoenas for Town Supervisor Bill McGintee’s financial disclosure documents, after grilling other members of the Town Board for several hours on May 4.

Word of the new subpoena inadvertently came to light at a Town Board work session on Tuesday after Town Attorney John Jilnicki asked Town Board member Brad Loewen to read a resolution asserting that the town had waived its attorney-client privileges by allowing the bond counsel to give the information to the district attorney’s office.

The board tabled the resolution because it had not yet been discussed in executive session.

Mr. Jilnicki said that he had received the request from the D.A.’s office last week and that the Town Board had already provided the requested documents. He added that the D.A. is now looking to obtain the original documents from the bond counsel, which he said were the same documents already turned over by the town.

Mr. Jilnicki added that he received a phone call from the D.A.’s office last week asking why the town had not responded to a request for the records that the D.A. had issued in April. He said that the town had no record of that request.

Last June, former Town Attorney Laura Molinari quit her post not long after learning that the town’s budget office had claimed in a bond prospectus that she had reviewed and signed off on documents that contained inaccurate information about the town’s financial status when she had not reviewed the information. At the time, she called for the firing of former Town Budget Officer Ted Hults, who resigned two weeks ago. Ms. Molinari then quit after she was told the budget officer would stay on.

It is unclear at this time whether the D.A.’s examination into the bond counsel’s documents will center on the statements that led to Ms. Molinari’s resignation.

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The cat eventually catches the mouse...
By ride the truth wave (125), southampton on Jun 10, 09 12:41 PM
hopefully the cat will catch the rat who first jumped off the sinking ship.she's no hero
By montauk resident (41), montauk on Jun 11, 09 10:43 PM