John Venditto Hit With Additional Defrauding Charges: SEC

TOWN OF OYSTER BAY, NY - The Securities and Exchange Commission (SEC) announced on Tuesday charges against the Town of Oyster Bay and former Town Supervisor John Venditto for allegedly defrauding investors.

According to the SEC’s complaint filed in U.S. District Court for the Eastern District of New York, town officials agreed several years ago to guarantee over $20 million in four separate private loans to the owner and operator of restaurants and concession stands at several town facilities.

The agreement stemmed from the concessionaire’s longstanding close relationship with Venditto, 68, of Massapequa, and other officials that involved gifts, bribes, kickbacks, and political support, according to the SEC.

The SEC’s complaint also alleges that Oyster Bay and Venditto hid the indirect loan guarantees when they should have been disclosed in connection with the town’s 26 securities offerings from August 2010 to December 2015.

According to the complaint, this information was important to current and prospective investors due to the potential impact on the town’s finances.

For example, in one scenario outlined in the SEC’s complaint, the town could have been required to make a termination payment of $16 million (16 percent of the town’s operating budget) within 60 days had the vendor defaulted on the loans.

Investors were deprived of information they needed to understand the town’s true financial condition as they made investment decisions,” Sanjay Wadhwa, senior associate director of the SEC’s New York Regional Office said.

In addition to the SEC's complaint, the U.S. Attorney’s Office for the Eastern District of New York filed a superseding indictment that included securities fraud charges against Venditto, according to the SEC.

Venditto was charged with securities fraud; conspiracy to commit wire fraud related to securities offerings; and 19 counts of wire fraud related to securities offerings.

Last year, Venditto, along with Nassau County Executive Ed Mangano and his wife were arrested and charged with conspiracy to commit federal bribery, fraud and extortion.

Venditto, who served as supervisor since January 1998, officially left his position last year to focus on clearing his name.

Related:

• Details Released in Federal Corruption Indictments Against Ed Mangano, His Wife and John Venditto
• John Venditto to Resign, Looks to Clear His Name
• Oyster Bay Town Officials Indicted For Corruption: DA