Hardware Store Owner Pleads Guilty to LIPA Scam Charges

John Mitty Monday, December 23, 2013

The owner of a Farmingdale hardware store had just plead guilty to charges that he tried to scam the Long Island Power Authority (LIPA) out of tens of thousands of dollars.  For two years between 2009 and 2001, he was a participant in a rebate program offered by LIPA.  Thomas Schuman, 45, submitted 923 fraudulent Compact Fluorescent Light (CFL) rebate coupons.  Investigators accused him of both a misdemeanor and a felony after the District Attorney office’s investigation revealed that he was forcing his employees to fill out the rebate vouchers in the names of local residents.  He has pleaded guilty on both charges—Filing in the Second Degree (the misdemeanor), and Grand Larceny in the Third Degree.  Schuman owns the Four Star True Value Variety Store on Main Street.  Additionally, he stole $19,200 through an advertising program scam which was connected to CFL discounts. 

In return for his guilty plea, Schuman is being fined $35,000 in restitution fees along with an additional $1,000 fine.  He will not be serving any time, but he will have to put in 210 hours of community service to make up for his damages to the local community.  By cheating LIPA, he cheated LIPA customers and contributed to the problems which have plagued the utilities provider over the past year.

jmitty@longislandyellowpages.com

Appears In: Business News

 

 

• Business News
• Education
• Entertainment
• Jobs & Careers
• Local Events
• Local Steals, Deals & More
• Press Releases
• Restaurants & Food
• Sports & Recreation

Columnists John M.   Show all Columnists