Criminal case resolved with plea bargain. Lazio campaign criticizes 1999 Eastwood Sports Center demolition; Paladino calls it a smear campaign.
The partially demolished Eastwood Sports Center on James Street in Syracuse is seen in December 199 after demolition was halted because of asbestos.Albany, NY — One of the development companies owned by Republican candidate for governor Carl Paladino was hit with a felony charge and fined $500,000 a decade ago for failure to detect asbestos in a Syracuse bowling alley he was renovating and eventually razed.
The bowling alley in question was the Eastwood Sports Center at the corner of James Street and Midler Avenue. The state Labor Department's Asbestos Control Bureau inspected the site and found asbestos during demolition in November 1999.
Paladino said Thursday a licensed inspector’s mistake in the initial inspection and an overzealous federal prosecutor turned what should have been a civil matter into a criminal charge against one of his companies, Ellicott Development Co. of Buffalo. Paladino wasn’t charged in the case involving the commercial property in Syracuse.
Paladino said asbestos was removed properly once discovered and the building was converted into retail space. He says his company acted responsibly.
The criminal case was resolved with a guilty plea entered Sept. 20, 2000 by 4628 Group Inc., a subsidiary of Ellicott Development. U.S. District Judge Howard Munson sentenced 4628 Group on July 31, 2001 to the fine and to two years on probation.
“Yet another dark and disturbing revelation about Mr. Paladino’s judgment and business practices. Once again he has lots of questions to answer,” said David James, spokesman for Rick Lazio, Paladino’s Republican primary opponent.
"Of course the career politicians are attempting to smear me and derail our campaign,” said Paladino, who polls show is gaining on Lazio as Tuesday’s primary approaches. “Ten years ago, the government overreacted to an error by one of my employees. While tearing down an old bowling alley, a hidden ceiling was found which contained asbestos. This was not detected in a survey performed over one year previous.”
Paladino signed the plea bargain to a felony charge.
The agreement stated the company was guilty of “failing to perform a thorough inspection required prior to demolition of a commercial property that contained a jurisdictional amount of regulated asbestos containing material,” according to court records.
On Sept. 20, 2000, Ellicott Development Corp. supervisor Nicholas Ersing, of Buffalo, also pleaded guilty to charges he tried to hide the illegal removal of asbestos from the property. Ersing admitted in U.S. District Court he told Syracuse officials that no asbestos was in the building.
On March 21, 2001, Judge Munson sentenced Ersing to two years on probation and a $2,000 fine.
Assistant U.S. Attorney Craig Benedict prosecuted both Ersing and 4628 Group. Benedict declined to comment today on the case.
The Eastwood Sports Center was run for 50 years by Danny Biasone, the man who invented the NBA 24-second shot clock. Biasone, a member of the Basketball Hall of Fame, founded the Syracuse Nationals. The building was demolished several years after Biasone's death.
Post-Standard staff writer Mike McAndrew contributed to this report. Contact Mike McAndrew at mmcandrew@syracuse.com or 470-3016.
» Previous coverage (2/15/2000): Eastwood Sports Center asbestos removal investigated [The Post-Standard]