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Merrimack Valley

September 30, 2009

State watchdog agency finds Laboy, Reyes, Rivera used press to benefit candidates

LAWRENCE — Embattled Superintendent Wilfredo Laboy, his former assistant Mark Rivera and failed mayoral candidate Israel Reyes all used the School Department's printing press and other resources to help four School Committee candidates and state Rep. Barry Finegold, state investigators concluded.

The state Office of Campaign and Political Finance has now turned its findings over to the attorney general's office, saying evidence "specifically suggests" Laboy, Rivera and Reyes "used and/or authorized" the use of school resources in 2006 and 2007 to support the election of School Committee candidates Omaira Mejia, Peter Larocque, Gregory Morris and Priscilla Baez. All four candidates were considered Laboy's allies. Baez is also Rivera's sister.

There's also evidence that shows Lawrence school resources were used to benefit Finegold, an Andover Democrat who made an unsuccessful bid for Congress in 2007, wrote Michael J. Sullivan, director of the Office of Campaign and Political Finance.

The attorney general's office confirmed it received the Sept. 8 letter from the campaign and political finance office and is reviewing the case. A spokesman refused further comment.

However, Finegold says his name was not forwarded to the attorney general in connection with the printing press scandal that put Laboy out of office on leave.

"(The Office of Campaign and Political Finance) concluded I had no knowledge of this flier and I have been cleared," Finegold said.

The campaign and political finance office, a watchdog agency, provided no further comment on the case and the two-page referral letter from Sullivan. It offers few details and does not specify why the attorney general has been called in to investigate or what criminal charges could result. State law does prohibit the use of public resources to aid or influence political campaigns.

Sullivan wrote that there is evidence indicating that Laboy, Rivera and Reyes did not comply with state law that required them to report contributions or expenditures for a candidate within three business days.

Mejia, Larocque, Morris and Baez were also rapped for failing to properly disclose and report campaign printing, postage and advertising costs, as required by state law.

Sullivan noted Laboy, Rivera, Reyes, Mejia, Larocque, Morris and Baez were all warned this matter was being referred to the attorney general's office. None requested a hearing before the referral was sent along to the state's top prosecutor, Sullivan wrote.

Other investigations ongoing

The campaign and political finance investigation piggybacks a separate investigation by Lawrence police and District Attorney Jonathan Blodgett's office.

Local officers and troopers assigned to Blodgett's office are conducting a separate criminal probe into "financial improprieties" in the Lawrence School Department under Laboy's command.

Laboy remains on paid leave from the School Department while an Essex County grand jury is hearing testimony in the case.

Laboy's home and office were raided and computers seized. Investigators were back at the Essex Street headquarters last Thursday. Two computers were turned over to detectives voluntarily, police said.

In late August, Reyes was identified by the campaign and political finance office as a target in the "concerted effort" to print fliers and other campaign materials with the $489,000 School Department printing press. Reyes denied any wrongdoing and encouraged the attorney general's office to launch a grand jury investigation, however.

The printing scandal came to light last May after Israel Reyes' brother, School Committee member Samuel Reyes, filed a complaint with the Office of Campaign and Political Finance about the illegal printing jobs.

Israel Reyes did not return calls yesterday. Previously, he said he has evidence others "perjured themselves" when they were interviewed by the campaign and political finance office.

"I have nothing to hide and look forward to testifying before a grand jury," Reyes said in August.

Israel Reyes received 713 votes in last Tuesday's primary, trailing in sixth place behind mayoral finalists William Lantigua and David Abdoo.

Rivera was forced out

Rivera resigned in March, forced out by another School Department scandal that involved misuse of the department's software to gather information about political foes, celebrities, professional athletes, newspaper reporters and others.

Rivera's lawyer described the referral of the printing press case to Coakley's office as routine or "par for the course."

"They have to do that," said Murat Erkan of Andover. "It's nothing we are terribly concerned about at this point."

Larocque, who is running for re-election to his District E School Committee seat, was not surprised to hear this matter was referred to Coakley.

"Obviously, I knew it was happening," said Larocque, who previously admitted to having campaign fliers produced in the School Department's print shop on Essex Street. He has said he'd accept whatever discipline was handed down.

Larocque said he cooperated with campaign and political finance and if necessary, would do the same with Coakley's office. He recently wrote out a $100 check to the School Department, which more than covers the $55 in unpaid printing expenses he incurred during the 2007 election.

Larocque said he asked Mary Lou Bergeron, the acting superintendent, to provide him with a list of printing expenses he was provided but never paid for. But when asked how the printing jobs were arranged, Larocque would not elaborate.

"I'm moving forward in a positive direction," he said.

Morris and Baez did not return calls seeking comment. Mejia also could not be reached.

The Office of Campaign and Political Finance has resolved 50 cases this year. Two of those cases, including the Lawrence matter, were referred to the attorney general, a spokesman said yesterday.

Laboy's lawyer Scott Gleason could not be reached for comment.

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