DA: Contractor Doctored Hempstead Town Mailings

Nassau County District Attorney Kathleen Rice announced Tuesday that an Oceanside contractor has been charged after he doctored an official Town of Hempstead mailing to portray himself as uniquely authorized to expedite building permits and then mailed the letter to nearly 2,000 flood-ravaged homes in Oceanside.

Mark Rauch, 63, was arrested this morning by DA Investigators and charged with felony counts of forgery in the second degree and criminal possession of a forged instrument in the second degree, Rice said. He faces up to seven years in prison if convicted.

Rice said that on Nov. 26, the DA’s Office was contacted by Town of Hempstead Supervisor Kate Murray and Councilman Anthony Santino, who had heard numerous complaints from Oceanside residents about a letter they had received in the mail.

The letter bore a town seal and contained instructions on how to obtain building permits from the Town of Hempstead Building Department so that homeowners could repair damage to their homes caused by Hurricane Sandy, Rice said.

A similar letter had been hand-delivered to Oceanside residents by the Town before Thanksgiving, but this particular mailing also included the contact information for My Expediter LLC, a company owned and operated by Rauch, Rice said.

The doctored letter implied that Rauch’s expediting service, and its $499 price tag, was either necessary to obtain building permits or that it was approved by the Town to expedite the permit process. Neither is true, Rice said.

The investigation, conducted in conjunction with the United States Postal Inspection Service, revealed that Rauch spent approximately $275 to have the letters delivered to 1,903 Oceanside homes on or about Nov. 23. At the time of Rauch’s mailing, the Town of Hempstead had waived all building permit fees relating to home repair as a result of Sandy in Oceanside.

“Over the last few weeks, we have seen the strength of Nassau County in every home being repaired, ever donation being dropped off, and every community banding together to rebuild,” Rice said. “Unfortunately, there are also scam artists looking to capitalize on the devastation to make a quick buck. Thanks to the people of Oceanside, however, and the quick work of the Town of Hempstead, US Postal Inspection Service, and members of my office, this con man was caught immediately.”

Murray, Santino Propose Waiving of Penalties for Premature Withdrawals for Hurricane Repairs

Supervisor Kate Murray and Sr. Councilman Anthony Santino have proposed that federal legislation be passed waiving penalty fees for premature IRA withdrawal for homeowners seeking to make house repairs in the wake of Hurricane Sandy. The officials also called upon federal representatives to strike down premature withdrawal penalties on other deferred payment investments such as 401K plans.

Although FEMA is administering reimbursements to pay for some damage expenses as well as administering the STEP Home Repair Program, homeowners and businesses may need to initially lay out money for the cost of necessary repairs. At the same time, many Americans have money invested in Individual Retirement Accounts (IRAs) and other deferred payment investments, however, penalties are imposed for premature withdrawal.

Under these dire circumstances, the town said residents need access to their capital, without penalty. For example, if a homeowner needed access to money for a new roof, they would pay a 10 percent penalty for withdrawing the needed funds from their IRA. And, that’s in addition to a $40 administrative fee penalty that is charged by some financial institutions.

Murray and Santino called upon U.S. Senator Charles Schumer, U.S. Senator Kirsten Gillibrand, U.S. Congressman Peter King and U.S. Congresswoman Carolyn McCarthy to propose such legislation and to advocate on behalf of the thousands of families and businesses who are struggling to rebuild their homes and their lives.

Additionally, the town officials requested that federal legislators consider a measure that would implement five-year income averaging for income tax purposes. Such a measure would mitigate the income tax implications of a one-year spike in income associated with a large withdrawal from deferred payment plans that would be utilized for Sandy repairs.