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Kory O’Hara, age 45, formerly the town supervisor of Prattsville in Greene County, pleaded guilty to a single charge of wire fraud Monday, July 18, in federal court in Albany.
Prosecutors said while serving as town supervisor, O’Hara entered into various grant agreements meant to help Prattsville recover from the significant damage left in the wake of Hurricane Irene in August 2011.
The storm caused record flooding in the town and left more than 100 homes damaged so badly they were condemned. All 22 of the town's businesses were either heavily damaged or destroyed.
Millions of dollars in rehabilitation grants were later issued to Prattsville and its residents.
O’Hara admitted that between 2013 and 2015, he obtained false invoices from a Prattsville-based modular home business that claimed to reflect construction work that was performed on his automotive garage, O’Hara’s Service Station.
Even though the work was never performed, O’Hara issued checks to the modular home business reflecting payment on the invoices, but the company returned all the money, prosecutors said.
O'Hara admitted to later submitting false invoices and checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain nearly $25,000 in grant proceeds under the New York Main Street Program.
“The New York Main Street Program was designed to make sure that grant money would be used to rebuild Prattsville in the wake of Hurricane Irene,” said US Attorney Carla Freedman.
“As Town Supervisor, O’Hara knew the rules, but chose not to follow them. Instead, he took grant money fraudulently. We will continue to hold public officials accountable who, through fraud, put their own interests above those of their constituents.”
O’Hara now faces up to 20 years in prison and could be fined up to $250,000. He will also be required to pay nearly $25,000 in restitution to the State of New York.
A 71-year-old co-defendant, Stephen Baker, of Prattsville, previously pleaded guilty to offering a false instrument for filing, a misdemeanor, in Prattsville Town Court. The federal charges against him were dismissed.
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