State Comptroller DiNapoli and Ulster County Executive Metzger Announce Findings of Gulnick Investigation

A forensic examination and investigation of former Ulster County Commissioner of Finance Burton Gulnick Jr. found no evidence of any crimes committed by Gulnick while he served in his government role, but did find weaknesses in county procedures that could leave it vulnerable to fraud, State Comptroller Thomas P. DiNapoli said today.

"A thorough investigation by my office found no evidence that the former Commissioner committed fraud in his public position," DiNapoli said. "Despite this, we have made several recommendations to Ulster County officials to strengthen financial practices and guard against potential fraud in the future. I thank County Executive Jen Metzger for referring this matter to my office and assuring the county's full cooperation in this examination. I also thank County Comptroller March Gallagher, District Attorney Emmanuel Nneji, and the New York State Police for their work and assistance throughout our inquiry."

"It was pretty shocking to learn less than three months after coming into office that the County's long-time top finance official was accused of pilfering funds from another organization, and I was very worried that he could have exploited his County position to steal from taxpayers," said Ulster County Executive Jen Metzger. "It comes as a great relief that the State Comptroller's Office found no evidence of fraud after an exhaustive 19-month investigation, and the comprehensiveness of the probe gives us great confidence in the findings. I thank Comptroller Tom DiNapoli and his team for their assistance in helping us to bring closure to this chapter and I will continue to do everything in my power to ensure the highest level of fiscal responsibility in Ulster County government."

"I truly appreciate New York State Comptroller DiNapoli and his investigative team for reviewing Ulster County finances considering the criminal actions by our former Commissioner of Finance at other organizations," said Ulster County Comptroller March Gallagher. "From the day I took office, former Commissioner of Finance Gulnick routinely resisted my information and access requests. I look forward to working with the Executive and Legislature to address the State Comptroller's internal controls recommendations, particularly in the areas of cash collection and recording."

In February 2024, Gulnick was sentenced to two years in jail after pleading guilty to stealing over $100,000 total from local not-for-profit, Hurley Recreational Association, and from former County Executive Michael Hein's campaign account. Gulnick had been removed from his position with the Association in February 2023 after the New York State Police opened an investigation into discrepancies in the Association's finances. Unrelated to his positions with the Association or the campaign, at the time of his crimes Gulnick served as Ulster County's Commissioner of Finance.

After his crimes became known, Gulnick chose to resign rather than be placed on leave. In light of the allegations and Gulnick's position in the county, County Executive Metzger requested DiNapoli's office investigate Gulnick's activities in his role at the county to determine if he had engaged in fraud against the public.

County officials initially raised the following concerns for review: potential time theft by one of Gulnick's employees and concerns regarding a $120,000 payout from the county to Gulnick for unused accruals upon his separation from employment; potential theft from estate/trust accounts administered by the county; potential conflicts related to vendors hired in relation to estates administered by the county; and possible theft of cash collections from departmental revenues, including potential theft associated with real property tax collections.

These allegations, as well as various others which arose during the course of the examination, were fully investigated and no evidence was provided or uncovered to support the allegations of fraud.

DiNapoli's office reviewed and analyzed thousands of records, including an in-depth examination of county financial and bank records, estate files, Surrogate's Court records, payroll records, and other pertinent documents. Additionally, investigators conducted dozens of interviews with relevant county officials and employees.

While no evidence of fraud was discovered, DiNapoli's investigators found areas where the county could improve its policies and procedures to strengthen controls and safeguard county assets.

DiNapoli recommended Ulster County:

• Ensure all supervisory adjustments or entries to employee timesheets and/or hours worked be adequately supported with appropriate documentation indicating the reason for the adjustment, entry, or modification;
• Review and revise the Personnel Policy Manual section related to management accruals and payout calculations to ensure equal application of the policy throughout the county;
• Develop policies and procedures over the administration of estates. This should include recordkeeping and reporting requirements, disclosure of conflicts, and vendor procurement for the estates;
• Ensure an estate file with sufficient supporting documentation is maintained for each estate administered by the county, and disbursements from each estate, as well as commission revenues, if applicable, are properly reflected in the county's financial accounting system;
• Review the policies and procedures for the collection of parking fees at the county parking lot to maximize revenue and safeguard cash; and
• Ensure segregation of duties for all points of cash collection and reporting, including parking lot and real property installment payments.

In response, County Executive Metzger thanked the Comptroller's office for its comprehensive investigation and agreed with the Comptroller's findings and recommendations. Specifically, Metzger advised that in response to the recommendations:

• All supervisory employees were notified that they must enter a justification in the "notes" field for all manual time punches. Ulster County Information Services is working to implement software updates to the county's timekeeping system so that the "justification" field must be filled out when supervisory adjustments are made to employee timesheets.
• The personnel director, with input from the county comptroller, will issue guidance to clarify payout calculation procedures and ensure a uniform application of those procedures across all county departments.
• The commissioner of finance will develop written, standardized policies and procedures for the administration of estates.
• The county will ensure all estates files contain sufficient supporting documentation, and all commission revenues are properly reflected in the county's financial system.
• The county will review its policies and procedures for the collection of parking fees at the County Office Building.
• The county will ensure segregation of duties for all points of cash collection and reporting with regard to parking lot fees and real property installment payments.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at [email protected] or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

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