David Denenberg resigns legislative seat, pleads guilty in felony mail fraud case
David Denenberg and his wife Cara leave U.S. District Court in Central Islip on Wednesday, Jan. 21, 2015. Denenberg resigned his seat on the Nassau County Legislature Wednesday after pleading guilty in a felony mail fraud case. Credit: Ed Betz
Longtime Nassau legislator David Denenberg could spend more than 4 years in federal prison after admitting Wednesday that he bilked a client of his former law firm out of $2.3 million.
In rapid sequence the eight-term Merrick Democrat resigned his seat and pleaded guilty to eight felony counts of mail fraud.
"I'm sorry to my family, friends and supporters for all that's happened," Denenberg said afterward. "I dedicated 15 years to public service. And in the future I hope to dedicate myself to public service again."
In U.S. District Court in Central Islip, he explained to Judge Joanna Seybert how he had cheated his client, a Port Washington computer and electronics retailer. "I caused invoices to be prepared and sent . . . that included fees for work that wasn't performed," Denenberg said.
"You knew you weren't entitled to the money? Correct?" Seybert asked.
"Correct," he answered.
Must pay restitution
Under the terms of a plea agreement with prosecutors, he faces a prison sentence of 41 to 51 months and must pay restitution in full. But Seybert could impose a greater or lesser sentence.
Defense attorney Jason Russo of Bay Shore and federal prosecutor Lara Treinis Gatz said in court that restitution has already been paid to the electronics retailer, Systemax.
The fraud came to light in September when Denenberg's former Garden City firm, Davidoff Hutcher & Citron, filed a lawsuit to recover the money and referred the case to federal authorities.
The fraud occurred between November 2006 and June 2014, with Denenberg billing Systemax for $2.2 million for "legal services never rendered," according to court papers. He was also accused of billing the same client for another $126,000 "for expenses never incurred."
"It's a sad day for the residents of Nassau County, who have lost a faithful servant," Russo said after his client entered the guilty plea. "None of what happened had anything to do with the work he has done for the people."
The U.S. Attorney for the Eastern District, Loretta Lynch, said in a statement, "Denenberg used his license to practice law as a license to steal, billing for phantom work to steal money from a client who trusted him. Today's conviction should serve as a reminder that no one is above the law."
Nassau Democrats regroup
Denenberg first was elected to the legislature in 2000. He was born and reared in East Meadow, has an engineering degree from Cooper Union and a law degree from Brooklyn Law School.
He filed his resignation letter Wednesday morning with the county clerk's office, formally surrendering his 19th District seat. It was an expected development, as state law requires the seat of any lawmaker convicted of a felony to be immediately vacated.
According to the county charter, a special election must be held within the next 60 days. Brian Nevin, spokesman for Nassau County Executive Edward Mangano, said the election date will be set later this week.
Nassau Democratic chairman Jay Jacobs said the party Wednesday night was to screen five potential candidates for Denenberg's seat.
"Shakespeare could not have written a sadder ending to what can now only be termed a political tragedy," Jacobs said. "I cannot defend the indefensible, but I can still be sorry for Dave, his family and the constituents who depended upon him."
Minority Leader Kevan Abrahams (D-Freeport) said it's "a hard day for our caucus."
"We are personally saddened for Dave and his family, but are respectful of the judicial process and its outcome," he said.
Nassau Republican Committee spokesman Anthony Santino said the party has yet to select a candidate. "We are just beginning to narrow it down," he said.
The district stretches from Freeport to Seaford, and for much of Denenberg's tenure, voter enrollment was closely split between major parties. But after a GOP-led redistricting process last year, Republicans have an enrollment advantage of 5,658 voters over Democrats, according to Nassau Board of Elections records. The district has 22,355 registered Republicans, 16,697 Democrats and 12,270 voters unaffiliated with any party.
What's Next
Nassau County must hold a special election within 60 days for the seat of former county Legis. David Denenberg (D-Merrick), who resigned Wednesday. Brian Nevin, spokesman for Nassau County Executive Edward Mangano, said the date of the election will be set later this week.
Nassau Democratic chairman Jay Jacobs said the party planned to screen five potential candidates for the seat Wednesday night.
Among them is Rita Kestenbaum, of North Bellmore, who served on the Hempstead Town Board from 1999-2001, Jacobs said. Kestenbaum became known for her work to prevent gun violence after her daughter, Carol, was shot and killed in 2007.
Nassau Republican Committee spokesman Anthony Santino said the party had yet to select a candidate. "We are just beginning to narrow it down," Santino said.
Bob Kessler covers federal law, including law enforcement agencies such as the FBI, DEA, IRS and ATF, as well as the federal courts.
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