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Jun 16, 2009 8:00 PMPublication: The East Hampton Press

East Hampton budget officer to be arraigned Thursday

Jun 16, 2009 8:00 PM

Former East Hampton Town Budget Officer Ted Hults was arraigned in East Hampton Town Justice Court Thursday morning on charges stemming from an investigation by the Government Corruption Bureau in Suffolk County District Attorney Thomas Spota’s office, according to DA spokesman Robert Clifford.

Mr. Clifford would only say that Mr. Hults would face misdemeanor or felony complaint charges. He said more details on the nature of the charges would be released at the arraignment at 9 a.m. He said that the charges were not the result of a grand jury indictment but came from a complaint present directly to the court by the prosecutor handling the case.

Mr. Clifford said that Mr. Hults will surrender to District Attorney squad detectives assigned to the Government Corruption Bureau before his arraignment Thursday morning, after which he will be fingerprinted and taken to the court by the detectives who are investigating the case.

A press conference outlining the investigation and announcing the results of the New York State Comptroller’s audit of the town’s Community Preservation Fund will be held at the DA’s office in Hauppauge at noon tomorrow. Mr. Clifford said that information about other potential arrests in the case will be released at that press conference.

Mr. Hults and Town Supervisor Bill McGintee have been at the center of a scandal over the state of the town’s finances. East Hampton is likely to face a deficit of at least $18 million by the end of this year, even though the town had a surplus of about $11 million when Mr. McGintee was sworn into office in 2004.

Mr. McGintee declined to comment on the proceedings. When contacted Wednesday afternoon he said that he was unaware of the press conference to be held in Hauppauge. He referred all comment to his attorney, Marc Mukasey, of the New York firm Bracewell & Guiliani and asked that all future calls for comment be referred to his attorney. Mr. Mukasey could not be reached for comment.

Earlier this week, the town attorney’s office received notice of another in a series of subpoenas for records relating to the town’s finances, this time for records of interactions with the town’s bond counsel, Fulbright & Jaworski.

Mr. Hults came under scrutiny last year after his office used Community Preservation Fund money to cover shortfalls in the town’s general funds. Mr. Hults also came under fire when his office released a bond prospectus that had reportedly been reviewed by former Town Attorney Laura Molinari. Ms. Molinari, who had been a frequent critic of the town’s shoddy finance practices, said at the time that she had never reviewed the documents and called for the firing of Mr. Hults. When Mr. McGintee refused to remove the budget officer, Ms. Molinari quit her job with the town.

Mr. Hults stepped down from his position in mid-May, citing his desire to avoid some town layoffs if he was no longer employed by the town.

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Ah, please please please call me when both Hults and McGuilty are taken away in cuffs!!! As my mother always said, what comes around goes around.
By nauti lady (25), Sag Harbor on Jun 10, 09 2:11 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By nauti lady (25), Sag Harbor on Jun 10, 09 2:11 PM
Oh great! Mike Hartley's back toting The Independent again. The only thing that paper is good for is packing up dishes and lining bird cages. Again I ask, why do you bother reading and commenting here if you don't like what they report?
By RealLocal (76), Bridgehampton on Jun 10, 09 2:17 PM
Who is paying for McGintee's high priced law firm? Why isn't he using a Democrat law firm? All will be unveiled soon. How terribly sad for everyone!
By Waincott Resident (42), Wainscott on Jun 10, 09 2:56 PM
Dang, that is a crazy amount of hangover going on in that pic. crazy.
By C Law (348), Water Mill on Jun 10, 09 3:07 PM
Maybe Mike Hartley is really Rick Murphy, the Independent editor?
By easthamptoner (34), easy hampton on Jun 10, 09 4:12 PM
Hi, Mike, I don't know who realocal is and I would hope you would refrain from personal attacks. Are you Rick Murphy? I don't remember reading anything about an arraignment in the Independent this morning.
By Beth Young (7), Sag Harbor on Jun 10, 09 4:20 PM
Ted didn't leave the Town to save anyone's job. Ted stayed on with the Town until he had enough time in the retirement system to get his pension. As soon as he did he was out the door. Now I guess our tax dollar will be paying for his lawyer, now that he gets his State pension.
By EH123 (22), East Hampton on Jun 10, 09 4:36 PM
Mike: You are not the only one using your real name....my colleague, Beth Young, and I are also using our real names. You are certainly free to express your opinion, but I find it Interesting that someone who considers a paper to be "crappy" would bother reading that paper and commenting on its website. And, to Beth's question: Did you read about the arraignment this morning in the Independent? If so, where is it?
By Brian Bossetta (17), Southampton on Jun 10, 09 5:11 PM
Cut Hults a deal, sings like a canary and down goes the big man. That's how they operate. News conference will be interesting.
By BruceB (142), Sag Harbor on Jun 10, 09 5:27 PM
He looks like the PC guy in the mac commercials. Just a bit more bummed that his system crashed... again.
By ride the truth wave (125), southampton on Jun 10, 09 5:39 PM
You had better believe that McGintee set this all up for Hulse to take the fall. Hulse will be squeezed until he implicates McGintee in some way. I'm sure it will not be difficult.
By bayview (158), Southampton on Jun 10, 09 5:57 PM
I don't think that anyone really gives a crap where the news comes from . On any given day , I'll read any of the local rags . I might even get my news from WLNG . So now you two settle down ... or it's TIME OUT for the both of you !!!
By AndersEn (169), Southampton on Jun 10, 09 7:55 PM
The law firm McGintee retained. Bracewell and Guiliani, yes folks, that Guiliani, specializes in defenses involving white collar crimes! I find Mr. Clifford's statement that information on other potentail arrests in this case will be released at Thursday's press conference interesting. To sum it up, McGintee's standing among the people of East Hampton Town has been so impaired that he should resign his seat immediately after this press conference. At any time the citizens of East Hampton Town should ...more
By BruceB (142), Sag Harbor on Jun 10, 09 8:30 PM
No Mike Hartley, neither I nor any of my family members work for 27east and I can assure you that I am most certainly not Beth Young. However, your posts make it pretty clear that you work for The Independent. I'd hide behind an alias too if I worked for that rag.
By RealLocal (76), Bridgehampton on Jun 10, 09 8:40 PM
this investigation needs to go deeper than hults ,he's a small fish.hope mr.d.a. takes a good hard look at OTHER town departments.remember that the smartest rats always jump the sinking ship first,as i said before, a good start.
By montauk resident (41), montauk on Jun 10, 09 9:46 PM
All of you folks are so pathetic. Do you ever cross the canal?
By J. Totta (104), Sag Harbor on Jun 11, 09 7:24 AM
Ladies and Gentlemen, this is a forum for replying/opining about the "news"...not personally attacking each other. Let's keep it clean.
By nauti lady (25), Sag Harbor on Jun 11, 09 11:50 AM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Paul Canson, Southampton on Jun 11, 09 12:50 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Steven B, Sag Harbor on Jun 11, 09 3:51 PM
Knowx, one of the most thorough and comprehensive people finders, has no record of a Mike or Michael Hartley in East Hampton or surrounding hamlets. No phone listings, no property records, no DMV records, no credit records.
In other words, either Mike Hartley lives in a cave or he doesn't exist.
My money is on Hartley being Rick Murphy.
By easthamptoner (34), easy hampton on Jun 12, 09 3:10 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By slamminsammy (104), Hampton Bays on Jun 12, 09 3:58 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By pinga (90), hamptonbays on Jun 15, 09 8:21 PM
Mike Hartley lives in the trailer right next to us. He gets a bit nasty when he doesn't take his meds.
By we could run this town! (129), wonderful Wainscott on Jun 17, 09 8:40 AM
The Hampton Classic, Horse Show, Bridgehampton