Harris Beach to pay Oyster Bay Town $1.25 million to settle loan guarantee lawsuit

The Harris Beach law firm has tentatively agreed to pay Oyster Bay Town $1.25 million to settle the town's lawsuit alleging the law firm engaged in a conspiracy to "misappropriate" taxpayer money through $20 million in fraudulent loan guarantees, according to a draft resolution posted on the town's website.

The Town Board is scheduled to approve the settlement tomorrow.

If approved, the powerful and ubiquitous law firm -- best known for its Democratic political connections -- will make payment to the town within five business days, according to the settlement papers.

The deal will settle all claims by both the town and Harris Beach, which had filed a counter lawsuit against former town attorney Len Genova and former Republican County Executive Ed Mangano, without either side admitting any liability, the papers show.

The Republican-controlled town had filed suit against Harris Beach along with two lenders and former concessionaire Harendra Singh, as well as Genova in 2017 over the alleged loan guarantees to Singh.

Harris Beach claimed to be representing Oyster Bay when when it provided legal opinions to lenders saying the the town had approved loan guarantees for concessionaire Singh and that the deals were legal.

However, Harris Beach was actually Singh's lawyer and was never hired by a vote of the town board. Instead, a deputy town attorney, who admitted accepting bribes from Singh, told the firm it had been hired and waived any conflict of interest.

In its countersuit, Harris Beach claimed it was a victim of a conspiracy drummed up by Mangano and Genova.

A Supreme Court justice subsequently ruled that the law firm should have known that it could not be engaged to work for the town without a town board resolution.  

In addition, three separate courts have found that the loan guarantees were illegal and unenforceable.

Mangano was convicted in federal court of accepting kickbacks from Singh in return for pressuring the town to approve the guarantees. Mangano's wife was convicted on related charges.

The Mangano's are expected to begin serving their sentences this month -- though they have consistently maintained their innocence and are appealing their convictions.

Ironically, federal judge Joan Azrack has indicated that she will demand that Mangano repay the town for the costs of the loan guarantees.

The late Oyster Bay Supervisor John Venditto was acquitted of any wrongdoing.

Harris Beach, which has offices throughout the state, is well-known among Nassau Democrats.
 
William Garry, who wrote the opinion letters,  is the brother of Thomas Garry, a managing partner of Harris Beach's Long Island offices. Thomas Garry is a vice chairman of the Nassau Democratic party and its chief strategist. He chaired Democratic County Executive Laura Curran's transition team after she was elected in November 2017.

Curran appointed then-Harris Beach partner Jared Kasschau as her county attorney. Former Democratic County Executive Thomas Suozzi also worked as counsel for Harris Beach before his election to Congress in 2016. 

Malverne Mayor Keith Corbett, who is seeking the Democratic nod for Congress, also is a partner in the firm.

After Curran won, Harris Beach hired her Republican opponent, former State Sen. Jack Martins,  as the firm moved to extend its influence on Long Island.
 
                                                                                

















 

 


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