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The Island Child Development Center on Cornaga Avenue was once one of the City’s largest providers of special education services to preschoolers with disabilities.
By Forum Staff
A self-described investor in Island Child Development Center in Far Rockaway, once one of the City’s largest providers of special education services to preschoolers with disabilities, has pleaded guilty for his participation in a scheme that stole millions of dollars in City and State funding between 2005 and 2012 – money that was intended for special needs students between ages 3 and 5, according to Queens District Attorney Richard Brown and State Comptroller Thomas DiNapoli, who made the announcement on Tuesday.
Daniel Laniado was arraigned on Monday and pleaded guilty to first-degree identity theft. Additionally, Brown said, Laniado will pay $82,000 in restitution to the City Department of Education at the time of sentencing, sign a confession of judgment for an additional $1,391,023.15 to DOE, forfeit nearly $8,000 in seized assets and complete a financial disclosure form prior to sentencing, which is scheduled for June 29, 2017. Laniado is expected to be sentenced to a three-year conditional discharge. However, if he fails to pay the $82,000 in restitution in full at sentencing, he will be sentenced to a year of incarceration.
Laniado and his three co-defendants – Rabbi Samuel Hiller, 59, of Far Rockaway, Ira Kurman, 54, of Hewlett, and Roy Hoffmann, 53, of Woodmere – were indicted on the alleged thefts in 2014. All were accused of illegally diverting millions of dollars of the $27 million ICDC received in state funding to their relatives, their for-profit businesses and for personal expenses including jewelry, a family wedding and home renovations.
Rabbi Samuel Hiller had been ICDC’s former assistant director; Ira Kurman had been ICDC’s Executive Director; and Roy Hoffmann had been hired by ICDC to serve as its independent auditor as required by the State.
Hiller, Kurman and Hoffman all previously pleaded guilty to first-degree grand larceny for their roles in the scheme. The three defendants are presently awaiting sentencing, which will include restitution. Hiller has agreed to repay $5 million, Kurman will repay $650,000 and Hoffman will repay $180,000.
Hiller is also expected to be sentenced to one to three years in state prison. However, if he fails to honor all of the terms of the negotiated sentence, he will be immediately sentenced to two to six years in prison.
Brown pointed out that the State’s Education Law requires that the State Education Department meet the physical and educational needs of children with disabilities. Additionally, within the City of New York, the Department of Education contracts with private service providers to deliver services for those who require them, including Special Education Itinerant Teachers who provide education services in children’s homes and other venues.
The thefts were discovered after the Office of Comptroller Thomas DiNapoli notified ICDC and specifically, Ira Kurman, that it planned to conduct a routine audit of SEIT funds provided to ICDC. When state auditors arrived for the meeting, in July 2012, they were informed that Kurman had left his position and had taken his books and records with him. After further investigation, the auditors referred the case to the Queens DA’s Office.
“Government money is not free money and those who treat such funds as their own personal piggy bank will be brought to justice and held accountable for their actions, as was the case of this defendant and his three co-defendants,” Brown said. “The public funds provided to Island Child Development Center were earmarked for special needs pre-schoolers with disabilities, making them the real victims of this fraud.”
DiNapoli added, “More than $1 million in funds intended for special needs preschoolers instead was used by Daniel Laniado to buy diamonds and stock his private supermarket shelves until our auditors and investigators exposed his crime. I thank District Attorney Brown for this fourth and final guilty plea in the multi-million dollar swindle of the Island Child Development Center.”
