ALTAMONT — Antonio Ferraioli, formerly a leader of Altamont’s Veterans of Foreign Wars Post, was arrested this month on a felony charge — offering and filing a false instrument.

The Albany County Sheriff’s Department says that he intentionally offered a false report of proceeds to the New York State Racing and Wagering Board on behalf of the Altamont VFW. He was arrested on Oct. 13.

Ferraioli, 51, of 6230 Hawes Road, did not return calls from The Enterprise asking for comment about the arrest.

The VFW Post sells bell-jar tickets, which people buy for a dollar apiece. Some of the money from each box of tickets, in a program overseen by the wagering board, goes to those who draw winning tickets, some goes to the group that purchased the box of tickets — in this case the VFW Post, and some goes to the state.

Al Devenpeck, a trustee of the Altamont VFW Post, a veteran of the Vietnam War who joined the post in 1975, sent a letter last year to the 300 members of the post outlining improprieties he believed were taking place at the post. The letter is also signed by Darlene Stanton, from the post’s ladies auxiliary.

Devenpeck said he was prompted to write the letter after he had spent more than $3,000 out of his own pocket to build a new fence around the horseshoe court at the post.
"For a very long time, we have been told that we have no money," he wrote, causing members to pay for things out-of-pocket. He said his request for an outside audit was denied.

This led Devenpeck to obtain copies of invoices from the company that sold the post its tickets, he said.

The same pattern could be seen for two years, he said, but the post had not investigated further back than that.
"We were prevented from going further back because of the cost of the research," he said, stating that copies of checks on microfilm or microfiche had to be paid for.

Last December, Ferraioli resigned, Devenpeck said.
Devenpeck said he felt "sick and disgusted" when the discrepancies came to light.
He called the wagering board a year ago, last October, he said. "They told us that, had we not called, they were a short time away from locking our doors because of 18 months of quarterly commissions not being paid." That amounted to over $2,500, he said.
Asked about the morale at the post in light of the allegations, Devenpeck said, "It’s my opinion the people feel better. Our own house is being put in order."
He also said, "I can assure you of one thing: There is no vendetta nor is there any ax to grind whatsoever. Our only wish is to sweep the dirt off the floor of our own organization."

Enforcement

Daniel Toomey, a spokesman for the wagering board, told The Enterprise on Tuesday, "The matter has been referred to the Albany County Sheriff’s Department. Once the department has concluded its investigation, we will proceed with ours."

Toomey said the board conducts roughly 17,000 investigations annually. While the Altamont investigation was initiated because of accusations of wrong-doing, he said, the majority are routine checks of the system.
Asked about the number of violations annually, he said, "probably hundreds," but they can range from "something simple," like a worker not displaying proper identification to something serious like embezzlement. "If it involves a criminal matter, we’re required to turn it over to law enforcement," said Toomey.

Michael Monteleone, a senior investigator with the Albany County Sheriff's Department, said his department was contacted by field investigators with the wagering board and began an investigation of the Altamont VFW Post several months ago.

The sheriff’s department used documentation gathered by the Altamont VFW and presented it to the Albany County District Attorney’s Office, Monteleone said.

Assistant District Attorney Christopher Baynes reviewed the files from the VFW along with the wagering board’s reports, said Monteleone.
"The avenue of larceny was initially pursued in the complaint," Monteleone said. "We attempted to document it. We presented evidence to the district attorney."

Richard Arthur, spokesman for the district attorney, outlined for The Enterprise a "general principle" his office follows: "We base our charges on what we think we can convict, based on the evidence submitted to the office for review."
Referring to the VFW and other charitable organizations, Arthur said, "The reality is that organizations like this are not set up to deal with crime. They’re generally collegial and trusting. From our point of view, if 12 people had access to the cash register, it’s very difficult to convict one of them."

The charge of offering and filing a false instrument was the only charge the district attorney’s office felt it could successfully prosecute, Monteleone said, although there may be more charges later.
"I wouldn’t say the case is entirely closed," said Monteleone.
Arthur also said, "There may need to be additional things investigated."
Asked what false instrument Ferraioli is accused of filing, Monteleone said, "A quarterly report to the New York State Racing and Wagering Board to document proceeds. Those moneys are required to be deposited in a dedicated bank account. We were able to find a report filed by Mr. Ferraioli that did not match bank records of deposit made."

Ferraioli will appear in City of Albany Police Court, because the instrument was filed in Albany, Monteleone said. Ferraioli is charged with a Class E felony, the lowest of felonies, and can carry a prison term in excess of a year, he said.