Schenectady company gets costly penalty for fraud scheme

PHOTOGRAPHER: Marc Schultz

The Burdeck Street entrance to William M. Larned & Sons Inc. in Rotterdam is seen in this photo from March 5, 2014.

William M. Larned & Sons formally received its sentence Tuesday for its role in a scheme to bilk another local company out of nearly half a million dollars.

The sentence includes a three-year “corporate integrity agreement” that will ensure an outside auditor monitors the company’s books. Reports will be sent to the Schenectady County District Attorney’s Office.

The company, represented by attorney Karl Sleight, formally pleaded guilty in May to two counts of first-degree falsifying business records, a felony. As part of the deal, prosecutors dropped charges against Timothy Larned, owner of William M. Larned & Sons.

The company admitted two instances of entering false business records to conceal thefts from Plank Construction of Schenectady. The two instances involved two checks totaling $45,000 from 2012.

The company has also now paid $77,000 in restitution and $100,000 in fines. The corporate integrity agreement is expected to cost the company another $250,000 over the life of the agreement.

Judge Matthew Sypniewski imposed the sentence in Schenectady County Court on Tuesday. No victim impact statement was read in court. Jennifer Assini prosecuted.

William M. Larned & Sons is a Rotterdam-based supplier of building materials to construction companies, according to its website. It employs about 80 people, prosecutors have said.

Prosecutors have said the resolution helps ensure the company and its jobs remain, and that its books are being watched. The sides reached the resolution after complicated and lengthy negotiations that included consultations with the victims, prosecutors have said.

Prosecutors initially charged Timothy Larned in March 2014 with grand larceny and money laundering.

After the plea in May, Sleight issued a statement saying Larned asserted his personal innocence from the beginning and that he was pleased the charges were withdrawn. The company, the statement read, took responsibility for the actions of a former employee.

Authorities charged two other individuals in the complicated scheme — Frank Corradi, 51, and Paul DiCocco, 43, both of Rotterdam. Both have since pleaded guilty to related charges. DiCocco worked for Larned & Sons and Corradi worked for Plank. Corradi and DiCocco are awaiting sentencing.

Prosecutors have said DiCocco and Corradi were at the core of the scheme.

The scheme netted nearly $466,000 over the year it was in operation, prosecutors have said. Corradi admitted to taking the money between Jan. 4, 2013, and Jan. 9, 2014.

DiCocco is responsible for paying back $118,000, Corradi for repaying the rest.

Plank filed a lawsuit two years ago in state Supreme Court in Schenectady County against William M. Larned & Sons, Timothy Larned, DiCocco and Corradi, related to the allegations. That lawsuit remains pending, records show.

Reach Gazette reporter Steven Cook at 395-3122, [email protected] or @ByStevenCook on Twitter.