Coluccio Stole Approximately $750,000 From the UPOA and Its Welfare Funds
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced that DOMINIC COLUCCIO, the former President of the United Probation Officers Association (the “UPOA”), the union that represents all current and former New York City probation officers, pled guilty to one count of wire fraud in connection with a scheme to steal hundreds of thousands of dollars from the UPOA and the UPOA’s active welfare fund and retirement welfare fund. COLUCCIO pled guilty before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “Dominic Coluccio promised to look out for all the hard-working active and retired probation officers who are members of the UPOA. Instead, as admitted today in federal court, he stole hundreds of thousands of dollars from them to fund his lavish lifestyle. Thanks to the hard work of the DOI and the Special Agents and career prosecutors of the Southern District of New York, Coluccio’s betrayal has been exposed, and he now faces jail time and significant financial penalties.”
DOI Commissioner Jocelyn E. Strauber said: “This defendant, former President of the United Probation Officers Association and Administrator of the Association’s Welfare Funds, used his leadership role to steal hundreds of thousands of dollars from the Association and its taxpayer-funded Welfare Funds, intended to benefit current and retired Department of Probation employees and family members. Today he takes responsibility for that conduct and agrees to pay $684,929 in restitution to the Association. DOI thanks the individuals who reported suspicions about misuse of funds to DOI, prompting this investigation, and the Office of the New York City Comptroller and the United States Attorney’s Office for the Southern District of New York for their commitment to hold accountable anyone who misappropriates public funds.”
According to the Information filed in the case and statements made in court:
The UPOA is a non-profit 501(c)(5) labor organization with the intended purpose of advancing the professional, health, and safety interests of its members – officers and supervisors in the New York City Department of Probation (“DOP” or “Probation”). The UPOA’s membership consists of all active and retired Probation Officers and Supervisors within DOP. COLUCCIO was President of the UPOA from in or about 1989 until in or about 2016.
From in or about 2010 until in or about 2019, COLUCCIO also served as Administrator of UPOA’s Active Welfare Fund and UPOA’s Retirement Welfare Fund (together, the “Welfare Funds”). The Welfare Funds, established through an agreement between the City of New York (the “City”) and the UPOA, are benefit plans that provide supplemental health and welfare benefits (principally dental and vision benefits) to eligible retired and current Probation employees, their spouses, and dependents. Both Welfare Funds are almost entirely funded by the City.
From in or about 2012 up to and including in or about 2019, COLUCCIO was engaged in a multi-faceted scheme to embezzle money from the UPOA and the Welfare Funds and to pay his personal expenses through money from the UPOA and Welfare Funds. COLUCCIO did this in several ways.
From in or about 2012 until in or about 2018, COLUCCIO funded his personal expenses charged to his personal American Express credit card, in part, through money obtained from the UPOA and the Welfare Funds. Specifically, COLUCCIO charged his personal credit card for, among other things, high-end meals and retail items, jewelry, luxury vacations and hotels, and a relative’s college tuition. COLUCCIO then caused the UPOA, typically through electronic transfers, to pay down his personal credit card balance.
From in or about 2012 up to and including in or about 2018, COLUCCIO misappropriated funds from the UPOA and Welfare Funds to fund an unauthorized individual retirement account in COLUCIO’s name. In or about 2012, COLUCCIO, without approval or authorization from the UPOA, created an IRA in the name of the UPOA and a sub-account in COLUCCIO’s name. These unauthorized transfers of funds from the UPOA to the IRA account were in addition to the pension payments COLUCCIO received from Probation and the UPOA.
In or about 2016, at or around the time of his retirement as President of the UPOA, COLUCCIO and the Welfare Funds entered into an agreement pursuant to which the Welfare Funds agreed to pay COLUCCIO, as Administrator of the Funds, “an annual salary equal to the Probation Department Commissioner’s salary. . . .” The annual salary was in addition to COLUCCIO’s Probation pension, UPOA pension, and UPOA severance. Notwithstanding this agreement, COLUCCIO, who effectively controlled the Welfare Funds’ bank accounts and payroll, caused the Welfare Funds to pay COLUCCIO a salary higher than the Probation Commissioner’s salary.
From in or about 2000, up to and including 2020, COLUCCIO submitted and sought reimbursement for medical, dental, and vision expenses that he and his dependents incurred. During that time period, COLUCCIO routinely authorized and concealed overpayments to him, his spouse, and his family members, i.e., payments that exceeded policy limits.
Through the scheme, COLUCCIO stole approximately $750,000 from the UPOA and the Funds.
COLUCCIO, 75, of Bellmore, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. As part of his plea agreement, COLUCCIO agreed to forfeit $750,000 to the United States and to make restitution in the amount of $684,929.00 to the UPOA and the Funds.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOI and the Special Agents of the U.S. Attorney’s Office. Mr. Williams also thanked the New York City Comptroller’s Office Unit of Research and Investigation.
