By Scott Brinton
Reich, 68, retired from five districts in September 2006. The complete list of districts includes Baldwin, Bellmore-Merrick, Copiague, East Meadow and Haborfields. Only East Meadow, which stopped using Reich's services in 2001, will not be audited, according to Emily DeSantis, a spokeswoman for State Comptroller Thomas DiNapoli. She said the comptroller's office was "focusing" only on those districts that recently reported him as a full-time employee, which made him eligible for state retirement and health benefits.
DeSantis said the comptroller's office sent out "engagement letters" last week, notifying the four districts that they would be audited and asking them to set dates for preliminary meetings with the comptroller's office. At those meetings, which are expected to take place soon, the comptroller's office will review the scope of the audits with district officials.
DeSantis said the audits would not review all of the district's financial dealings, only those related to independent contractors the districts have hired. She explained that a district audit usually takes six months to a year, but that these audits would be "expedited" and completed within a month.
Although Reich was an independent contractor, being listed on the payroll as a full-time employee allowed him to receive state pension credits from the five districts, as well as lifetime health benefits through the Baldwin School District. In total, Reich's state pension is $61,459 a year. The five districts in question have reportedly paid $2.5 million in fees to Reich's firm, Ingerman Smith LLP of Hauppauge, where he was a partner until he retired in late 2007.
Since his retirement, Reich had consulted for the Garden City law firm of Jaspan, Schlesinger, Hoffman, which suspended him on Monday. Reich resigned from the firm on Tuesday. Steve Schlesinger, the firm's managing partner, said, "He was only with us six weeks." Schlesinger said Reich was brought in once or twice a week to give lectures and seminars on education law to young attorneys. He had no clients, Schlesinger said.
A federal grand jury is now investigating whether Reich is entitled to his benefits, and whether he acted in accordance with the law when he took them. According to a published report, Reich, who could not be reached for comment, is denying any wrongdoing, saying that what he did was common practice.
DiNapoli said his office would audit the four districts to determine whether other outside contractors have been listed as district employees and have received state benefits. In a prepared statement, DiNapoli said, "We have decided to take a closer look at this issue to make sure that only those individuals who are entitled to receive a state pension get a state pension."
The Federal Bureau of Investigation last week served subpoenas at all five districts to obtain records of financial dealings with Reich and Ingerman Smith. Additionally, the state attorney general's office opened an investigation into the case on Tuesday.
State Attorney General Andrew Cuomo said in a prepared statement that the state Education Department had referred the case to his office for "potential criminal action."
"We will thoroughly investigate and follow the facts wherever they may lead," said Cuomo. "Public integrity is a major priority of this office."
The Bellmore-Merrick Central High School District issued a statement on Tuesday, shortly before Cuomo announced that his office would investigate the case. It read: "Lawrence W. Reich was employed by the Bellmore-Merrick Central High School District until August 2006. The Bellmore-Merrick Central High School District will fully cooperate with and provide all information regarding the attorney's employment to the state comptroller's office and the U.S. attorney's office."
According to sources in the Bellmore-Merrick district, Reich was listed as a civil service employee until August 2006 and was named as legal counsel to the district. For regular legal matters, he worked separately and apart from Ingerman Smith. When special cases arose outside his areas of expertise, the firm was brought in to handle them. According to sources, he worked extensively on special-education cases.
Reich's contract was renewed annually. The last contract under which he was listed as a civil service employee was renewed in July 2005. The current superintendent, Dr. Henry Kiernan, arrived in the district in October 2005, when Reich's final contract was already in place.
The Bellmore-Merrick district stopped listing Reich as a civil service employee in August 2006, putting him instead on retainer as the district's legal counsel. He remained in that post through the summer of 2007.
Last September, Ingerman Smith took over as Bellmore-Merrick's general legal counsel, and two new attorneys from the firm, Chris Powers and Chris Clayton, have advised the Board of Education at its regular meetings since September. Thus far, Ingerman Smith remains Bellmore-Merrick's law firm.
According to its Web site, Ingerman Smith represents 40 school districts across Long Island. It is among the Island's largest education law firms, founded in 1927. Calls to the firm were not returned at press time. According to FindLaw, an online directory of law firms and their attorneys, Reich was "actively engaged in representation of most of [Ingerman Smith's] school district clients."
Also according to FindLaw, Reich practiced education law for more than 35 years, including 12 years as an associate attorney and section head in the Office of Counsel to the State Commissioner of Education, from 1966 to 1978. Reich, who earned his law degree from St. John's University in 1964, was a director and president of the New York State Association of School Attorneys and a frequent speaker at New York State School Boards Association conventions.
Because of the February vacation, the Bellmore-Merrick district Board of Education had not yet had a chance to deliberate on the Reich matter at press time. Sources, however, said the board would take it up quickly, and it would likely be a topic of discussion at the next Board of Education meeting, scheduled for Wednesday, March 5, at 8 p.m.
Comments about this story? SBrinton-@liherald.com or (516) 569-4000 ext. 203.
