A former Shandaken town supervisor was indicted after investigators said he transferred $50,000 in town funds to a nonprofit that then issued him a check to cover his own loan.
State and Ulster County officials said the transfer was made without Town Board approval or disclosure of the supervisor's personal financial interest.
The case was detailed in the agency's announcement.
Investigators trace town money to nonprofit
Peter DiSclafani, 68, was charged with third-degree grand larceny as a crime of public corruption and two counts of official misconduct, according to state Comptroller Thomas DiNapoli and Ulster County District Attorney Emmanuel Nneji.
The case involves SHARP, a nonprofit that administered federally funded loans for the town and whose board included DiSclafani through his position as supervisor.
Investigators said DiSclafani approved a $50,000 loan for himself in May 2024 and then unilaterally transferred $50,000 from the town to SHARP.
Two days later, SHARP issued him a check even though the nonprofit otherwise lacked enough money to fund it, authorities said.
Loan undisclosed during collection effort, officials say
The Town Board ended its contract with SHARP on May 5, 2025, and tasked DiSclafani with recovering outstanding loans, according to investigators.
They said he did not disclose his own loan or make payments from May 2024 through December 2025, when he left office, and that auditors later discovered the transaction.
DiSclafani was arraigned before Ulster County Court Judge Bryan Rounds and is scheduled to return Jan. 7.
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