|
RCBJ-Audible (Listen For Free)
|
Residents Want Independent Audit On Engineer’s Claims; Attorney Michael Burke, Who Is Also Kevin Conway’s Personal Attorney, Hired to Investigate Siemens’ Billing Controversy
On July 6 Clarkstown’s Director of Facilities and Environmental Management Michael Gianatasio was summoned to the Town Attorney’s office while the town locked him out of his office and confiscated his computer. Town Attorney Kevin Conway, who was joined by Michael Burke from Hodges Walsh & Burke of White Plains, told Gianatasio he was under investigation for omissions in his financial disclosure forms from 2023 through 2026.
The meeting followed recent disclosures Gianatasio had made to town officials in memos that flagged “unsupported labor billing” by Siemens International Industry, Inc. for work performed at the Mark Woods playground at Zukor Park in New City.
Gianatasio was put on paid administrative leave for what he said was exposing a “critical financial discrepancy.” He said he was told he was not allowed to have an attorney present at the meeting.
What Gianatasio didn’t know, however, was that Burke, in addition to representing the town, is also the private attorney for Kevin Conway and Conway’s private law firm in a series of recent cases accusing Conway’s law firm of defaulting on two merchant cash advance contracts. Court records show Conway’s firm also defaulted on one installment loan contract and a third merchant cash advance contract.
It is unclear whether Conway disclosed that Burke was representing him and his firm to town officials.
“Certainly the appearance looks inappropriate,” said Robert Schechter, Gianatasio’s attorney. “The town attorney and Mr. Burke should come clean and be honest. They should provide more information. Maybe the Ethics Committee should look into this.”
Burke said he did not have to make this disclosure.
“There is no ethical conflict nor any requirement to disclose unrelated legal matters,” said Michael Burke. “This is nothing more than a desperate attempt by Mr. Gianatasio to use the media to distract from the independent investigation into the alleged misconduct.”
Burke’s firm, Hodges Walsh & Burke has represented the Town of Clarkstown in other matters prior to the Gianatasio investigation.
Conway did not return multiple emails or calls seeking comment. Town Supervisor George Hoehmann did not return an email seeking comment.
Conway’s firm, Kevin T. Conway ESQ P.C. of New City, and Conway individually as guarantor of the debts, has court orders entered against him and his firm in Rockland County Supreme Court, with a third case pending. The cases have been cycling through the courts since last year. Burke represents Conway and his law firm in two of the three cases. A fourth case from Monroe County also charged Conway’s firm with defaulting on a merchant cash advance contract.
After Gianatasio was suspended, RCBJ broke the story. A week later, the Town of Clarkstown announced the town’s Ethics Board would investigate whether the suspended Director of Facilities and Environmental Management had violated his duty by failing to list entities in which he allegedly had a financial stake. Gianatasio says he has not hidden anything from the town and views the ethics complaint as a ruse to cover up for Siemens’ billing and for the town’s unwillingness to address the issue.
Last week, Conway released an “internal audit” prepared by Siemens that allegedly vindicates the company’s accounting practices, according to documents the town attorney released to USA Today and a couple of bloggers. According to several published reports, the documents include a detailed report prepared by Siemens, along with independent review by the Town Comptroller, concluding the Siemens report was accurate and payments issued by the town were proper.
Siemens did not return an email seeking comment.
The town said its independent investigation is being conducted by the law firm of Hodges, Walsh & Burke, Michael Burke’s firm.
Although Clarkstown’s Board of Ethics is still investigating Gianatasio’s case, Conway issued a statement along with the report that said Gianatasio is “not a whistleblower” but “a liar” based on his assertions about Clarkstown’s municipal contract with Siemens. Conway said town records “incontrovertibly debunk” Gianatasio’s claims and show Gianatasio personally approved the payment vouchers in question.
The town also said documents released last week to USA Today and other media will be forwarded to the Clarkstown Ethics Board, which may expand the original investigation into Gianatasio’s alleged failure to disclose prior ownership interests in companies.
Gianatasio has fired back.
In a statement released late last week, he said: “Today the Town Attorney released a statement and hundreds of pages of documents in response to concerns I raised, in good faith, about the Town’s energy performance contract with Siemens. I raised these concerns to protect public funds, and I raised them because, after 28 years as a licensed professional engineer, I reasonably believed the records did not add up. I will not be deterred by these baseless personal attacks. It was highly inappropriate for the Town Attorney to release a press release like this. The people of Clarkstown should be able to see right through this. The documents released today confirm the central problems I identified.”
The Gianatasio case raises a host of questions, including how a whistleblower is treated, whether Clarkstown’s Ethics Board can conduct a fair investigation, and does an internal audit conducted by the company that is the subject of a controversy make sense?
“Before any hearing, before any finding by an impartial body, and while I remain on administrative leave, the Town Attorney publicly stated that I am “a liar”” and asserted “violations” that are baseless,” said Gianatasio. “An investigation is meant to reach a conclusion, not to begin with one. The town has in essence announced that I am guilty of something. Now they want to forward this to the Ethics Board, and this impartial board is supported to somehow ignore this conclusion. I struggle to see how they can be independent.”
Clarkstown residents at a July 14th town board meeting called for an independent auditor to examine the accounting. They have requested a full audit by New York State Comptroller Thomas DiNapoli’s Office of the contract, payments, and work performed to determine the propriety of the charges and payments to Siemens under the ESCO contract.
EPCs are agreements between a municipal government and an Energy Service Company (ESCO). The ESCO designs and installs energy-saving upgrades—like LED lighting, HVAC modernization, or solar panels—with the cost of the project paid for in advance by the municipality. The savings are offset by future utility bill savings. Any shortfalls in savings over time are reimbursed by the ESCO.
In April 2024, the town board authorized $9 million for an Article 9 Energy Performance Contract (EPC) with Siemens to fund lighting, building improvements, and to build a new playground in Zukor Park, to honor the late Councilman Mark Woods. In July 2025, the town board passed a resolution reducing the original playground estimate from $2.8 million to $1.3 million, defining the project as “duly authorized energy-related playground improvements.”
Although the playground did not fit into the framework of an EPC, Gianatasio said Siemens offered to build the playground as part of the contract.
RCBJ examined emails Gianatasio sent to Clarkstown officials in which he outlined what he called “unsupported labor billing” by Siemens International Industry, Inc. for work performed at the Mark Woods playground at Zukor Park in New City. On May 29, Gianatasio wrote to Clarkstown Comptroller Sara DiGiacomo detailing an “unexplained, unsupported labor” discrepancy of $594,469, adding that “a review of the certified payroll records on file by the Department of Engineering & Facilities Management revealed that Siemens Industry Inc. has billed and drawn the entirety of a project’s $680,320 labor budget, certifying the milestone as 100 percent complete.”
He further wrote “a direct review of the certified payroll records submitted for the Zukor Park…validates a total field labor cost of only $85,850. Consequently, there is an unexplained, unsupported labor variance that requires immediate contractor reconciliation.”
In Clarkstown’s statement, the town says the approximately $680,320 in labor-related costs under the Siemens contract, which Gianatasio had publicly questioned, reflected a flat-fee agreement covering procurement, planning, project development, construction management, commissioning, safety, subcontractor expenses, insurance, bonding, contingencies, and other project costs—not just certified payroll. Town officials said emails released with the documents to USA Today and others show Gianatasio and his deputy were informed of what those labor charges included.
Gianatasio Was Never Told Conway Was Being Represented by Burke in Personal Matters
Gianatasio said he was never told by Conway or Burke in the meeting in which he was suspended that Burke was the town attorney’s personal attorney, in addition to representing the town. Burke says there is no requirement to make such a disclosure.
Conway’s law firm is accused of defaulting on a bank loan, according to public court records. He is also a defendant in three cases in which his firm sold over a $100,000 in future receivables at a discount and then defaulted on repaying the receivables his firm sold, according to public court records.
Conway, who is Clarkstown’s Town Attorney, also maintains a private law practice. Conway’s 2026 salary from the Town of Clarkstown is $180,353, according to public records. According to court records, Conway’s firm has about two dozen active cases pending in Rockland County Supreme Court and other courts for private clients.
Regents Bank
In April 2025, Kevin Conway’s law firm borrowed $95,000 from Ascentium Capital, a division of Regents Bank. Conway personally guaranteed repayment of the debt obligation. According to court records, Conway’s firm was obligated to repay the $95,000 along with interest at annual rate of 14.99 percent over 60 monthly payments of $2,234.69. Court records say Conway’s firm made payments in June, July, August, September and October, but defaulted in November.
Regents Bank took Conway’s law firm and Conway to court, and the bank was awarded a default judgment for $116,912.36, with interest.
Conway is represented in that litigation by Michael Burke.
Fundamental Capital | NEXI Finance
According to court records, on September 16, 2025, Fundamental Capital LLC dba NEXI Finance agreed to purchase future receivables from Conway’s law firm and several companies Conway has an interest in including Patriarch Logistics LLC and MSB NYC Development Inc. The financial arrangement is not technically a loan; rather it is a sale of future income sold to a finance company at a discount. The agreements are also known as merchant cash advances. Court records say Conway’s firm and the other companies (affiliated with Conway) sold $89,096.77 in receivables for $62,743.85. Conway guaranteed repayment.
According to court records, Conway’s firm repaid $27,729 and then defaulted on the obligations in October of 2025. An arbitrator entered an award against Conway as guarantor in April 2026 for $77,452.61 plus costs of $15,990.52. A Stipulation of Settlement was recorded on August 3. The Stipulation called for an initial payment of $2,500 and weekly payments of $1,750 until the obligation is satisfied.
Olympus Lending
In a second merchant cash advance default, Olympus Lending LLC dba Olympus Building Capital advanced Conway’s law firm $48,500 against $72,500 in future receivables last August, according to court records. Conway’s firm was obligated to pay $2,416.67 each week until the $72,500 was paid back, according to court records.
The lawsuit says Conway’s firm paid $9,666 between August 14th and September 9th 2025 before defaulting. In February, an arbitrator found in favor of Olympus, entering an arbitration award for $70,783.27. When Conway’s firm didn’t satisfy the arbitration award, Olympus filed suit in Rockland County Supreme Court in May seeking a judgment in that amount.
Michael Burke represents Conway in that litigation and has until August 19 to respond to the petition.
Sound Advance
Conway’s law firm defaulted on a merchant cash advance contract in 2025. According to court records, Sound Advance purchased $44,997 of Conway’s firm’s future receivables in August 2025, netting his firm $27,600. Conway’s firm was obligated to pay $2,646 each week until the $44,997 was paid back. Conway’s firm made payments until it defaulted in October. A judgment was entered against Conway and his firm for $34,000, which was satisfied in full in March 2026.
Merchant cash advances are typically provided by lenders of last resort to businesses with limited or no access to capital. New York courts have wrestled with enforcing the agreements, which are technically not loans, with merchants often complaining of usurious interest rates.























