State Comptroller Thomas P. DiNapoli, Oneida County District Attorney Scott McNamara, and the New York State Police today announced the arrest of the long-time superintendent of the Utica City School District (UCSD) Bruce Karam and the former Utica Mayor and UCSD School Board President Louis LaPolla for allegedly using taxpayer funds to pay for political campaigns and a non-school related fundraiser.
“The diversion of funds meant to support the education and well-being of students by high-ranking school officials is an appalling betrayal of the public trust,” DiNapoli said. “Instead of serving the students of the district who they were duty-bound to help, these two defendants allegedly chose to serve themselves. Thanks to my partnership with District Attorney McNamara and the State Police they will now be held accountable for their crimes.”
District Attorney McNamara said: “I echo State Comptroller DiNapoli’s statements and I personally thank the Comptroller’s office and the New York State Police for their assistance in investigating this case of public corruption.”
New York State Police Acting Superintendent Dominick L. Chiumento said, “These individuals deliberately stole funds intended to enrich education for students of the Utica City School District, all for personal fulfillment. Because of the strong collaboration among law enforcement, we were able to expose this fraud. I thank the Comptroller’s office and Oneida County District Attorney’s Office for their partnership in these arrests. The State Police will continue to hold those accountable whose actions hurt our community, and the well-being of children.”
Investigators with the Oneida District Attorney, the State Comptroller, and the State Police determined that Karam was using school money and resources including stamps, envelopes, and other supplies to send election mailers in support of school board candidates that he favored and who determined his contract, salary and authority.
He also is accused of using school resources to send invitations for a non-school related fundraiser for a purported charity run by LaPolla. Fundraiser fliers for the charity were inserted by school district employees during school hours in envelopes the school district paid for, and were mailed using the district’s stamps. LaPolla was allegedly aware that school resources were being used on his behalf.
Karam also allegedly tried to cover up his actions by attempting to persuade school district employees to untruthfully say that these resources were being used for a valid purpose.
The value of the unlawful use of taxpayer funds totaled $14,649, including $9,775 in stamps, $1,015 in supplies, and $3,859 in compensation for hours of work.
Karam served as UCSD Superintendent from 2011 until he was put on leave Oct. 18, 2022. He currently remains on leave.
Karam and LaPolla were both charged with Grand Larceny in the 4th degree and Public Corruption. Karam was also charged with additional counts of Grand Larceny in the 4th degree and Public Corruption, as well as Corruption of the Government in the 3rd degree.
They were arraigned in Oneida County Court by Judge Michael L. Dwyer. Their next court date is Dec. 1, 2023.
Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.