| Recommend |
| Comment |
| Email this article |
| Print this article |
| Get news alerts |
| RSS Feeds |
 Share
|
Digg
Mixx
Linked In
Facebook
Twitter
Delicious
Related Articles
Motz appeals eight-year prison sentence
Jun 16, 10 10:08 AM
Motz sentenced to 8 years in federal prison
May 5, 10 10:04 AM
moreQuogue Village Mayor George Motz resigned on Friday, three days after he pleaded guilty in federal court to felony securities fraud for his role in a “cherry picking” scheme that illegally pocketed some $2.2 million for his Manhattan investment firm.
The nearly two dozen people in attendance at the monthly Village Board meeting on Friday, October 16, gave Mr. Motz a standing ovation as he left Village Hall and the position he held since 2002.
“It is with deep sadness and sorrow and with apologies to my community that I formally announce that I will be stepping down as your mayor effective today,” he said, reading from a prepared statement at the beginning of the meeting, before immediately departing. “Nothing that I have done over the past seven and a half years has given me more pleasure and satisfaction than representing you and our very special village.”
Before Mr. Motz left the meeting, Deputy Mayor Randy Cardo thanked him for “the great work [he has] done and [his] service to the community.” Mr. Motz, who was on the verge of tears, then hugged and shook the hands of other village officials before leaving.
Mr. Cardo presided over the remainder of the 40-minute meeting.
According to New York State law, a person convicted of a felony cannot hold public office. Authorities have said that the criminal charges are unrelated to Mr. Motz’s work as mayor of Quogue Village.
It is unclear who will succeed Mr. Motz as mayor. Mr. Motz earned $12,000 annually as mayor and did not accept benefits as part of his compensation. His term expires on June 30, 2010.
Village resident Dick Gardner asked what could be done to show support for the former mayor, who many village residents credit for helping preserve Quogue’s historic Jessup family homestead, also known as the Weathervane.
Quogue Village Clerk Marcia Koziarz said that residents could pick up slips of paper as they exited the meeting with instructions to send letters testifying to Mr. Motz’s character to his Manhattan attorney, G. Robert Gage. The letters are to be addressed to U.S. District Justice Arthur D. Spatt, the judge who will make the final determination as to Mr. Motz’s sentence.
Mr. Motz is scheduled to be sentenced on January 29, 2010. He faces up to 25 years in prison.
Theresa Fontana, owner of The Lily Pad, a consignment shop on Main Street in Quogue, noted in an e-mail this week that she is selling “Friends of George,” or “FOG,” stickers at her shop for $2 each. She said she has already sold 100 stickers, adding that they were paid for by Mr. Motz’s longtime friend and fellow Quogue resident Alexander G. Hesterberg.
Ms. Fontana said that all proceeds from the sticker sales will benefit the Motz family.
“We here in the Village of Quogue, and especially at The Lily Pad, want George to know how much he is admired,” Ms. Fontana said.
Mr. Motz was indicted in August 2008 after a U.S. Securities and Exchange Commission investigation revealed that he had “cherry picked” profitable investments for his Manhattan investment firm, Melhado, Flynn & Associates (MFA). On Thursday, October 15, the company itself pleaded guilty to one count of securities fraud for its part in the scheme that illegally earned the firm more than $2.2 million.
Mr. Motz faces up to 25 years in prison, the maximum sentence allowed for securities fraud, but in court last week prosecutors said federal sentencing guidelines would put Mr. Motz’s sentence somewhere between 12.5 and 15.5 years. He is currently free on $500,000 bail.
MFA, meanwhile, is facing a fine of up to $184 million, according to federal authorities.
Originally, Mr. Motz was also accused of doctoring paperwork to cover up the scheme, but the U.S. attorney’s office agreed to drop that charge.
Prosecutors said Mr. Motz illegally took in more than $2.2 million for MFA between November 2000 and June 2005. He is the president and chief executive officer of the company.
Prior to entering his guilty plea, Mr. Motz admitted to buying blocks of stocks and waiting until the end of the day to see if the trades were profitable. If the trades were profitable, Mr. Motz told the court, he would assign them to the MFA proprietary account. If they were not profitable, Mr. Motz assigned them to one of his clients’ discretionary accounts.
In other news, Daryl Blowes, a representative of IQM2, a Ronkonkoma-based meeting management company, approached the Village Board on Friday to offer his firm’s service to the village. Specifically, the company could make information from public meetings, including minutes and video, available on the village’s website.
He said that for a fee, his company would be able to streamline information, including past resolutions, allowing the village “to provide it on demand” to residents. Depending on the software required, the service could cost the village between $250 and $500 a month, according to Mr. Blowes.
Add a comment
Total comments by East-ender: 1
Not that it's not a sad day for Quogue, but he did it, he admits that he did it, and he's willing to accept his punishment -- which, I suspect, will be far from the maximum, as it sounds as if he's going to work with the prosecution toward other prosecutions.
Total comments by Frank Wheeler: 731
Total comments by JimmyKBond: 120
Total comments by hbtwin: 1
Total comments by lirider: 6
Total comments by kpjc: 68
Total comments by quogue: 12
Total comments by kpjc: 68
Total comments by leavingli66: 8
Total comments by sunsetter: 5
Total comments by EastEnd68: 250
Total comments by DJ9222: 29
What I find most interesting is that there is no plea bargain in place. Virtually every guilty plea includes one. Why is he pleading guilty nakedly? He actually could be sentenced to 15 years in prison.
Would it not be wonderful if his plea without negotiation were indicative of his contrition.
Total comments by highhatsize: 419
Total comments by Frank Wheeler: 731
Thanks for the reference. I suppose that investment house executives found guilty of fraud will be treated more toughly for a few years until the public astonishment at Madoff's Ponzi scheme has abatted.
Total comments by highhatsize: 419
Total comments by concerned east ender: 24
Total comments by Stephen M Takach: 3
Arrogance (wont get caught) and greed does them all in ....Sad way to finish life...God Bless Motz family......
Total comments by Quogonian: 5
George has accepted responsibility. He will be sentenced. Let us pray for him and for his family as they deal with the humiliation and the shame (especially residing in a small community). A hand of friendship instead ... more of a spit in the eye might be more appropriate.
Total comments by JimmyKBond: 120
Total comments by Board Watcher: 83
Total comments by JimmyKBond: 120
Total comments by dianne: 4
But what about the shennanegans in Southampton Town Hall? Are you all going to cry for Linda Kabot, Chris Nuzzi and that Johnny-come-lately from up island, Jim Malone??? I think that Evita said "Don't cry for me Argentina" Isn't it about time ... more we kissed off these self-serving politicos who have done everything to get themselves re-elected, even when it cost people their jobs, careers, savings and homes?
When you go into the voting booth on November 3rd, ask yourself if they're crying for you...it's time to kick these beggers out of office or they'll just do it again.
Total comments by Dodger: 48
Where are our standards???
Total comments by double standard: 133
Total comments by OTISFORDSUCKS: 33
Add a comment