HEMPSTEAD, N.Y. (1010WINS) – Hempstead public school's former director of food services, Sharon Gardner, allegedly secured contracts for food service providers and was paid in kickbacks, according to the Justice Department.
The indictment was unsealed on Thursday. Gardner is being charged with conspiracy to commit honest services wire fraud for favors involving Hempstead School District (HUFSD) contracts.
Among those involved in the alleged scheme is Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. and Prince Umberto’s restaurant in Franklin Square.
According to prosecutors, Gardner favored Caliendo’s company among other cost-effective options. During the 2016-17 school year, she helped secure a contract for Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students.
Caliendo’s company received more than $1.2 million from HUFSD. Gardner allegedly received $100,000 through fraudulent payments, prosecutors said.
“Instead of following the legitimate bidding process for a food services contract, the defendants allegedly used the Hempstead School District as their own piggy bank,” Anne T. Donnelly, Nassau County District attorney said.
To hide the arrangement, the payments were allegedly made into a bank account under one of Gardners family members. Yet, Gardner spent the money on international vacations, home furnishings, leased a vehicle and other things according to prosecutors.
Caliendo, in interviews with investigators, told them that the money was repayment for startup loans from Gardner’s family members.
Caliendo is to be charged with making false statements to a federal agent investigating the incident.
“As alleged, with little regard for the taxpaying public, the defendants secretly steered lucrative food service contracts to themselves and then illegally shared the profits,” stated Breon Peace, United States attorney for the Eastern District of New York.
Peace pressed on the fact that the office will continue the investigation to prosecute those who attempt to corrupt public institutions through bribes and kickbacks.
If convicted, the defendants may face up to 20 years’ imprisonment for the conspiracy to commit wire fraud charge.
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