Farmingdale Store Owner Pleads Guilty to Stealing from LIPA

A Farmingdale store owner pleaded guilty Friday to falsifying records in an attempt to steal thousands from the Long Island Power Authority (LIPA).

According to Nassau County District Attorney Kathleen Rice's office, Thomas Schuman, 45, of St. James, pleaded guilty to second-degree offering a false instrument for filing, and his corporation pleaded guilty to third-degree grand larceny. 

He is paying $35,000 up-front restitution to LIPA, and he will serve 210 hours of community service. He was also fined $1,000.

“Thomas Schuman cheated Long Island electricity ratepayers with his scam and this sentence will ensure that his neighbors don’t end up footing the bill for his greed,” Rice said.  “I’m grateful for the cooperation of LIPA officials to help us bring this defendant to justice.”

From 2009-2011, Schuman, the owner of Four Star True Variety Store on Main Street, participated in LIPA's Compact Fluorescent Light rebate program. The program allows stores to offer rebates from 50 cents to $3 per bulb. The buyer would fill out a rebate form for the store to submit to LIPA, who would reimburse the store.

In December of 2011, it was discovered that Schumer submitted 923 fake coupons and was reimbursed more than $22,000 for them. He told employees to fill out the vouchers with names obtained from the local phone book. 

Schuman and Four Star were found to have stolen an additional $19,200 from the utility as a participant in a LIPA-sponsored advertising program that reimbursed merchants that advertised the sale of CFLs. Schuman would advertise Four Star in the Long Island Penny Saver or Clipper magazine and then submit invoices that inflated advertising costs in order for Four Star to be eligible for a higher rebate.

Assistant District Attorney Vickie Curran of the Government & Consumer Frauds Bureau is prosecuting the case for DA Rice’s Office. Schuman is represented by F. Scott Carrigan, Esq.