Original article no longer available
The Times Union
By MICHELE MORGAN BOLTON, Staff writer
First published: Wednesday, November 22, 2006
Latham man accused of embezzling more than $1.2 million
ALBANY — The former chief financial officer of the New York State Nurses Association was indicted today on charges he embezzled more than $1.2 million.
John T. Daley, 46, of Latham, was arrested in June in an alleged fraud scam that could yield him 25 years in state prison.
Daley was fired last spring from his $130,000-a-year job with the union that represents about 34,000 nurses in New York and New Jersey after it was learned that a ribbon in a typewriter used to make out checks held a history of his transactions.
After an employee noticed four missing checks, an investigation was begun, revealing what could be four years of alleged fraud and as many as 127 forged transactions.
Daley’s attorney, James E. Long, has said his client’s judgment was impaired over five years by the antidepressant Paxil, which he said was wrongly prescribed.
He said Daley and his wife were liquidating assets to make amends.
In a statement to police, Daley said he acted alone to handle financial problems that began in May 2003.
“This case spotlights the vulnerability of organizations to theft from within,” said Albany County Assistant District Attorney Christopher Baynes. “There is much concern over cybertheft and keeping networks protected from external threats, when often the greatest threat is from within.”
Baynes is prosecuting the case out of District Attorney David Soares’ white-collar crime unit. An arraignment for Daley has not yet been set.