Energeia, Huntington Pols in Massive Suffolk IDA Corruption Scheme
By Maureen Daly and Niall Fitzgerald
The collapse of Melville fraudster Gregory DeRosa's $50 million "Land Ponzi Scheme" has lit-up a huge conspiratorial scheme of self-dealing land transfers, huge tax givebacks, glaring illegal conflicts of interest, and million dollar government contracts - including tens of millions to fraudster DeRosa from the Town and the Suffolk IDA.
DeRosa, age 43, is facing charges in over a dozen court cases of over $50 million in land and wire fraud, stealing money, creating fake land documents, and defrauding investors.
The people behind the attempted re-zone of 650 acres - one square mile - of Melville from commercial offices into into thousands of high-density apartments are DeRosa and his registered Lobbyist and South Huntington/Melville Water Commissioner Paul Tonna (R-West Hills); DeRosa’s business partner Councilman Sal Ferro (R-Commack), and DeRosa’s land use attorney former Councilman Marc Cuthbertson (D-Northport).
They have set-up a series of interlocking private and government groups to try to rig the Suffolk land use process to "change" Melville into a huge mass apartment city - imposing huge tax increases on current residents, while enriching themselves with tens of millions in re-zone profits.
Tonna Creates "Energeia" as a Secret Land Development Club
Energeia was founded in 2005 by Tonna as a secret "invitation only" construction developers, land use and government regulators club - with deeply religious "secret society" overtones - that members have described as "creepy," and a "cult-like" scheme, to push for mass apartment construction while enriching certain of its member-Trustees.
While Tonna was involved in lobbying municipal governments across Long Island with the goal of enriching Energeia members, Tonna was the main registered lobbyist for DeRosa who enlisted in Energeia at the young age of 27 and with whom Tonna helped “create” Energeia.
At a young age, DeRosa “suddenly” started receiving “favors” procured by a complicated and wide-reaching political web put-together by Tonna, who had previously been a Suffolk County Legislator.
Early members of Energeia include former Suffolk Police Chief James Burke - now a federal convicted criminal felon for
beating handcuffed prisoners and facing current charges for soliciting "blow jobs" from men in a local family park.
And Christopher McPartland, the former "Public Integrity" Chief of the Suffolk DA, who is also now a criminal felon - sentenced to 5 years in prison - who obstructed law enforcement investigations, got cops to lie to the FBI, ran the DA's office as a criminal front, and covered-up violent crimes.
Their end goal was the massive redevelopment of Melville - 650 acres and 100 properties - to create a developers piggybank for DeRosa to build thousands of high-density apartments and reap hundreds of millions - potentially billions - in profits.
The Suffolk IDA "Hires" Tonna Group LIRPC
In February, 2013, Tonna was appointed by then County Executive Steve Bellone (D-Babylon) to become Chair of the Suffolk County Industrial Development Agency (IDA) and its sister agency, the Suffolk County Economic Development Corp (EDC).
Just seven (7) months later, on August 29, 2013, Tonna called an “Emergency Board meeting” to push through a six figure consulting contract for a group called the Long Island Regional Planning Council (LIRPC).
What Tonna did not disclose to his IDA/EDC Board, when they approved the LIRPC consulting contract was that he himself served as the Vice President of the LIRPC - a direct conflict of interest.
Other Board members began to pick-up on Tonna’s scheme and revolted. Steven Rossetti, then a member on the IDA/EDC board, said the “meeting should be stopped because the funding request is defective since all items are addressed to the Suffolk County IDA” and “we are putting ourselves in harm's way.”
Tonna insisted that funding of his group was "necessary," claiming LIRPC is a “think tank” and “a change agent for our region to succeed.” One member noted that funding the group would drain the EDC reserves by 40% and that accepting this contract would result in their agency not acting “independently” anymore.
The Executive Director of LIRPC, Cara Longworth, appeared at the IDA/EDC meeting to push for the “consulting” contract to be approved.
Longworth enlisted and joined Energeia in 2009 - alongside Gregory DeRosa - and they went through Tonna’s intensive “Initiation” process together.
Longworth is now the Regional Vice President of the Empire State Development agency, a NY state government department in charge of giving billions of dollars in loans, grants, and tax breaks to businesses and real estate developers.
The IDA/EDC meeting ended with Tonna forcing a Board vote to approve the “consulting contract." Tonna not only made the motion - but he voted for it, and the motion passed, over some opposition.
Tonna then resigned as Chair and from the IDA/EDC Board - just three (3) days later - after only seven (7) months on the job - claiming he had “conflicts” related to Energeia.
But with the LIRPC contract approved, Tonna remained the “unofficial” overlord of the Suffolk IDA, because his LIRPC now had direct access to IDA business and nearly every IDA project.
Tonna would work over the next decade, during the Bellone years, to “reorganize” and “control” the IDA.
The hiring of LIRPC as "think tank" for the Suffolk IDA/EDC also marked a dramatic shift in the taxpayer funded studies and tax breaks from those government bodies, which - very coincidentally - increasingly benefited Tonna’s private lobbying and business interests.
Tonna and DeRosa’s 2015 Attempt to Re-Zone Melville funded by Suffolk IDA
In 2015, Tonna made his first attempt to push a Melville mass apartment re-zone, to change Melville from commercial office buildings into mass high-density rental apartments.
First, the Suffolk IDA published a taxpayer-funded 2015/2016 study called “Route 110: Corridor Opportunity Analysis.”
The “study” examined which specific plots of land would be re-zoned for mass apartment housing. Just coincidentally, several of those specific plots would later be purchased by Tonna's protege and business partner DeRosa, and DeRosa's G2D Land Development Group.
The IDA “study” urged the Suffolk IDA to use Tonna's LIRPC as "an ally” in implementing the Melville mass apartment re-zone strategy.
Despite the "favorable" IDA Study calling for high density apartment rezoning of Melville, the Huntington Town Board - due to strong opposition from former Supervisor Frank Petrone and former Councilman Gene Cook - rejected the re-zone of Melville being proposed by Tonna and his front groups.
Tonna and DeRosa Take-over the Green Building Council
In 2013, Tonna was named Executive Director of the Long Island Chapter of the Green Building Council (GBC), a formerly sleepy not for profit.
Tonna quickly appointed DeRosa as Co-Chair, Director, and secretary, and the two took over the group - turning it into a “front group” to promote DeRosa’s apartment projects.
Tonna moved the GBC headquarters to DeRosa’s building on 71 New Street in Huntington, which is - coincidentally - where Tonna’s PR Firm “Praxis Public Relations” is also located.
In addition to DeRosa, Tonna brought in a group of his confidantes to serve as GBC Directors - including former Babylon IDA Chief Robert Stricoff, according to filed IRS tax documents.
Tonna had lobbied County Executive Steve Bellone to appoint Robert Stricoff to succeed him as Chair of the Suffolk IDA, but was derailed after Stricoff was accused of financial improprieties and allegations that he collected $125,000 in unauthorized salary increases on an organization he chaired.
Steve Harvey, Vice Chair of the Suffolk IDA, and the "Gateway Giveaway"
Another of Tonna's GBC Board members is Kevin Harvey, a member of the Suffolk IDA.
In 2018, DeRosa went before the Suffolk IDA to get $19 million in taxpayer-funded tax breaks for his "Gateway Plaza" development project to build 67 luxury apartments at 1000 New York Avenue in Huntington - for what was then called the "Gateway Giveaway."
Nearly two acres of almost nearly free land from the Town - right in a prime location at 1000 New York Avenue; a Town-approved Re-zone to build 67 luxury apartments; and now $19 million in taxpayer-funded tax breaks.
The Huntington School District, led at the time by Superintendent Jim Polansky, opposed the tax breaks - arguing that the $19 million in tax breaks for DeRosa's Gateway apartments would blow a huge hole in the School District budget and force the school district - a majority-minority district with many distressed neighborhoods - to raise taxes.
Harvey dismissed the school district's concerns and made the motion to proceed to a vote, and then voted "Yes" to give DeRosa $19 million in taxpayer-funded tax breaks.
Harvey was on the same GBC Board with DeRosa, according to filed IRS tax documents, but not once in the meeting did Harvey disclose that he sat on the board with DeRosa.
Harvey was since promoted by former Suffolk County Executive Steve Bellone, and currently serves as Vice-Chair of the Suffolk IDA.
Sarah Lansdale, Suffolk Director of Planning
Another Tonna-appointed GBC and Energeia member is Sarah Lansdale, Suffolk County’s Director of Planning.
Lansdale is another government holdover, who was appointed to her government office by Bellone. She also sits on the GBC board alongside Tonna and DeRosa.
On August 15, 2024 - just this past summer - Lansdale issued a Suffolk IDA “Staff Report” in support of the Melville mass apartment Re-zone.
Lansdale issued her report in response to a request from Councilman Sal Ferro and Town Supervisor Ed Smyth - who - in coordination with Tonna and DeRosa - filed the Melville mass apartment re-zone resolutions before the Huntington Town Board.
Even though no plans, no studies, no renderings, no schematics, no plat layouts, no architects reports were included in the request - Lansdale gave the requested Melville mass apartment re-zone - a combined 650 acres, the largest apartment development in Long Island history - her official approval.
Lansdale wrote that “staff believes that the new overlay zoning district contains appropriate development guidelines to promote sound development in accordance with good planning practices, and therefore recommends approval.”
By comparison, Lansdale recently just last week issued a “disapproval” of a Starbucks application on Route 110 in Melville - on about 1 acre.
A well-documented, researched and prepared application for a single Starbucks gets rejected by Lansdale - but a slapdash application for the largest apartment development in Long Island history - without a single plan or plat map - or the required SEQRA studies - gets summarily approved by Lansdale.
Jennifer Casey, Suffolk Planning Commission
It is codified into law that the Suffolk County Planning Commission must give the "Approval" for any re-zone, otherwise the local Town Board must have a “super-majority” to override and enact the proposed zone change.
That is why Lansdale's official "Approval" of the Melville mass apartment re-zone was so important to Tonna, Ferro, Smyth, and DeRosa.
Lansdale, as Planning Director, authors the reports and then gives the recommendations to Jennifer Casey, a private Huntington Station attorney, and Chair of the Suffolk County Planning Commission.
Casey is another holdover appointed by former Suffolk County Executive Steve Bellone as the designated "Huntington member" on the Planning Commission.
Interestingly, Casey was recruited and enlisted in Tonna’s Energeia in 2009 - alongside DeRosa - and went through the intensive “Energeia Initiation” process with him.
Casey also presided over DeRosa’s previous apartment applications, and was in charge of overseeing the environmental remediation of DeRosa’s 71 New Street apartment complex in Huntington.
At the September 5, 2024 Planning Commission meeting Casey voted to officially "accept" Lansdale’s report on the Melville apartment re-zone.
Sarah Lansdale is Now..... the Suffolk IDA Chair
Lansdale is not only Suffolk County’s Director of Planning, but was appointed to Chair the Suffolk IDA by former County Executive Steve Bellone in 2022.
In fact, Tonna put out an email to his Energeia members “celebrating” Lansdale becoming Suffolk IDA Chair and then hosted a “gala” with GBC, naming Lansdale their “Public Official of the Year.”
"The Fix" is in on Melville...
Community leaders and elected officials in Huntington have openly expressed their belief and fear that the Melville High-Density Apartment Re-zone plan - the largest Apartment development in Long Island history - is a license for municipal corruption on an unprecedented massive scale.
The Half Hollow Hills School District, which contains Melville, has opposed the Re-zone, writing a strong letter in opposition, and debunking many of the false claims made by Huntington Supervisor Ed Smyth - most notably dismissing Smyth's false claim that SEQRA environmental and traffic studies are not needed, and the impact on the school district from hundreds of additional students - as nonsense.
The Half Hollow Hills School District - the largest school district in Huntington - believes that the Melville Apartments Re-zone would impose a minimum $21 million annual tax increase - a double digit tax increase on homeowners - and require the opening of at least one new school, the hiring of dozens of new teachers, and negatively impact children with disabilities.
“We are concerned that PILOTs or other tax reductions or accommodations through the Town of Huntington and/or the Suffolk IDA will have the opposite impact as has been championed by Town Board Members of increasing the tax base, and would shift the burden to existing residents,” wrote the Half Hollow Hills School Board.
Will Tonna's "Energeia" members - like the land fraudster DeRosa - get their high-density apartment applications priority approved ?
Why do the Melville Apartments Re-zone resolutions take-away the approval process - for Melville only - from the more professional Town Planning Board, and transfer that power directly to the elected politicians on the Huntington Town Board ?
Could you devise a more corrupt system where individual applicants get tens of millions in re-zones from a small band of already compromised and conflicted local elected politicians ?
Would the Energeia-controlled Suffolk Planning Commission give the DeRosa and Energeia applications their "official approval;" and the Energeia-controlled Suffolk IDA then grant massive taxpayer-funded tax breaks - just like they gave $19 million to fraudster DeRosa ?
Will the process - from start to finish - be predetermined and rigged to benefit a small group of wealthy connected developers - and their politician-business partners - who - like DeRosa - got the "insider" information on what land to buy and how to get the taxpayers to pay for it ?
And there is a lot more... Stay tuned.