MANHATTAN---The former assistant director of housing management for the New York State Division of Housing and Community Renewal has been sentenced to 12 months and one day in federal prison for his involvement in a series of schemes intended to obtain, illegally, inexpensive "Mitchell-Lama" housing at Southbridge Towers, Inc. for himself and his friends, and to steal thousands of dollars earmarked for the victims of the terrorist attacks of 9/11.

Mark Marcucilli, 50, of Manhattan, was sentenced before U,S, District Judge Barbara S. Jones fter pleading guilty in September 2006 to three counts of conspiracy to commit mail fraud and theft of United States Government funds, three substantive counts of mail fraud, and two substantive counts of theft of Government funds.

According to the complaint, the indictment and materials submitted to the court in connection with MARCUCILLI's sentencing, Marcucilli abused his position as a high-level official with the DHCR by engaging in a series of fraudulent schemes to defraud Southbridge Towers, Inc., a "Mitchell-Lama" cooperative housing project located in lower Manhattan, and the Lower Manhattan Development Corporation, an entity established after the terrorist attacks of September 11, 2001, to help revitalize areas in lower Manhattan affected by the attacks.

As a Mitchell-Lama development, Southbridge Towers was established for the purpose of providing affordable housing for middle-income residents. Mitchell-Lama developments, such as Southbridge, charge rents (or "maintenance" fees) that are considerably lower than the rents or fees that residents would have to pay for comparable housing on the open market. A Mitchell-Lama project such as Southbridge typically has a long waiting list of eligible, middle-class persons. As co-op apartments become vacant, those apartments typically are filled by the next eligible family on the waiting list.

Federal prosecutors say Marcucill defrauded Southbridge, the LMDC, and others by, among other things, obtaining an apartment at Southbridge as his personal residence based on false representations. The apartment had been awarded in his parents' names, and as one can only transfer a Mitchell-Lama apartment to an apartment-mate, Mark Marcucilli represented that his father, co-defendant Fred Marcucilli, resided with him though his father's primary residence was at another address. Additionally, Marcucilli assisted others in obtaining residences at Southbridge and would sometimes assist these people in the illegal subletting (in one case, to co-defendant Carmine Carpinone) or illegal selling of these apartments.

Marcucilli also received $7,000 in grant money from the LMDC by falsely representing that his father lived with him, and assisted a friend in obtaining a grant by falsely representing that the friend lived in Southbridge, when in fact the friend lived elsewhere and had illegally sublet his apartment.

In addition to his prison sentence, Marcucilli was sentenced to two years of supervised release, and ordered to pay restitution of $10,863 to the LMDC and an $800 special assessment.

Marcucilli's co-defendants, his father Carpione, also pleaded guilty to charges arising out of their involvement in the schemes. In February, Carpinone was sentenced to a term of probation.

Marcucilli's father has yet to be sentenced. 3-30-07

© 2007 North Country Gazette