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A former Siemens Building Technologies sales executive and current president of Treadstone Development Corp. has been indicted on theft charges, state Attorney General Eric Schneiderman and Comptroller Thomas DiNapoli said in a joint announcement Tuesday.
Daniel Lynch is accused of stealing $75,000 from Siemens Technologies and Upstate Telecommunications Corp., a local development corporation created to upgrade Monroe County’s information technology and copier systems.
LDCs are private non-profits created to provide services to municipal governments.
The indictment alleges that Lynch, 50, of Rochester, and an unnamed individual caused Toshiba Business Solutions to turn in phony invoices to Siemens to pay for part of a tent at the 2008 Senior PGA Championship tournament at Oak Hill Country Club. The scheme was necessary because Lynch could not use Siemens funds for that purpose, the indictment states.
False invoices submitted to Siemens by Toshiba Business Solutions indicated a contractual relationship between Siemens and Toshiba on a UTC copier project. But Toshiba had already contracted directly with UTC for services covered by the contract. Lynch caused fake entries to be made in UTC’s and Siemens’ books to hide the theft, the indictment alleges.
The alleged theft was uncovered by DiNapoli’s continuing statewide investigation of LDCs, and was specifically linked to the comptroller’s 2012 audit of Navitech, an LDC that executed Monroe County public safety contracts, Schneiderman said.
That audit questioned $1.9 million in fees, citing Upstate Telecom and Lynch as a Treadstone principal as recipients of hefty fees passed through Navitech.
Arraigned Tuesday before acting Monroe County state Supreme Court Justice Robert Noonan, Lynch was released on his own recognizance. He was charged with one count of second degree grand larceny and two counts of falsifying business records. The charges carry a maximum 15-year prison term.
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