Councilman: town finance department under scrutiny for ‘misuse of town property’

Riverhead financial administrator William Rothaar is again at the center of controversy, RiverheadLOCAL has learned.

The town’s embattled finance officer, who has come under fire for the town’s failure to meet state financial reporting deadlines since 2007, is now fending off allegations that he or others on his staff used town offices and equipment to conduct private business on town time.

The Town Attorney’s office is investigating the matter, according to a source inside Town Hall, who spoke on the condition of anonymity, saying town employees are barred from speaking to the press unless authorized by the town supervisor.

Supervisor Sean Walter would not confirm or deny that an investigation is ongoing. He said in an interview Monday the recent adoption of a computer-use policy by the town in its collective bargaining agreement with a town union “has led to all sorts of rumors.”

“In any case, this is a personnel matter,” Walter said.

Councilman George Gabrielsen told RiverheadLOCAL Monday he was compelled to speak out on the matter, “to stand up for the taxpayers of Riverhead,” even though it involved a personnel issue.

“Using town property to conduct private business is a very serious concern,” Gabrielsen said. He would not say anything further, instead opting to issue a statement, via email Monday, which said, in its entirety:

“In response to your inquiry: The town is currently conducting an investigation of the accounting department into the possible misuse of town property. At this time I cannot release any details as this is an active investigation into a personnel matter.”

The accounting department staff, in addition to Rothaar, consists of deputy financial administrator Scott M. Harrington, also a CPA, and six other people in various job titles: account clerk, account clerk typist, senior account clerk typist, principal account clerk and budget technician, according to the town’s website.

The staff members other than Rothaar and Harrington are members of the Civil Service Employees Union. CSEA unit president Matthew Hattorff said Monday night he has not been informed of any investigation into any activities by any of his unit’s members.

Though Gabrielsen refused to confirm that the investigation involves Rothaar directly, the department head himself has outside business interests, according to information available on the internet.

Rothaar, a licensed Certified Public Accountant registered in New York since September 1994, is a participating provider with the Suffolk County Municipal Employees Legal Service Fund, as a member of the CPA panel, according to the Suffolk County Municipal Employees Benefit Fund website.

A Miller Place resident, Rothaar also serves as a member of the Brookhaven Town Accessory Apartment Review Board. He was appointed to that position, which pays about $10,000 per year and offers full benefits, during the closing hours of the John Jay LaValle administration in late December 2005. Rothaar was Brookhaven Town’s deputy finance administrator at the time. His 12-year tenure with the Town of Brookhaven came to an end after Democrat Brian Foley took office in January 2006. Rothaar began working for Riverhead, first as a part-time consultant, later that year, when longtime financial administrator Jack Hansen became ill.

Rothaar’s current term on the Brookhaven Accessory Apartment Review Board ends Dec. 31.

Rothaar also serves as treasurer of the Chris Cox for Congress campaign committee. Cox waged an unsuccessful campaign for the Republican nomination for congress in 2010. He lost to Randy Altschuler in a three-way primary election last September.

In his capacity as treasurer, Rothaar signed off on all campaign finance disclosure statements and reports filed with the Federal Election Commission on behalf of the Cox campaign, which spent more than $18 million in the failed effort.  See FEC web page displaying index of reports.

While Rothaar was its treasurer, Cox campaign disclosure reports indicated the campaign had a paid finance director on staff, a David Atkins of Manhattan. The disclosure reports did not indicate any payments were made to Rothaar.

Rothaar could not immediately be reached for comment at either his town office number or at the phone number listed on the Suffolk County Municipal Employees Benefit Fund website.