AEGiS-NYT: 4 Indicted In Scheme To Bilk New York On AIDS Research New York TimesImportant note: Information in this article was accurate in 1984. The state of the art may have changed since the publication date.
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4 Indicted In Scheme To Bilk New York On AIDS Research

The New York Times - December 11, 1984


ALBANY - A former State Assemblyman and three other men have been indicted on charges that they tried to steal at least $250,000 from the state by inflating the cost of an AIDS research project, authorities said today.

The former Assemblyman is Stephen Greco, 65 years old, of Buffalo. He currently holds the $43,500-a-year post of intergovernmental liaison with the state Legislative Commission on State and Local Relations.

Also indicted were John Natarelli, 27, of Rensselaer; Pasquale Natarelli, 74, of Buffalo, identified as an uncle of John Natarelli; and John Szczesniak, 33, of Troy, who authorities described as a research scientist.

According to the indictment, Pasquale Natarelli asked Mr. Greco to use his political influence to insure that a $448,100 grant application prepared by Mr. Szczesniak would be approved by the State Department of Health.

However, the application was rejected, so no money was awarded, the indictment said.

New York has set aside more than $5.7 million to support research projects on AIDS, or acquired immune deficiency syndrome, an often-fatal disease that reduces the body's ability to fight even the most common infections. The disease mainly strikes homosexual men and intravenous drug users.

The indictment said that the conspiracy involved a scheme in which the men claimed the AIDS research project would cost at least $250,000 more than its actual cost.

Mr. Greco and Pasquale Natarelli were to share about $150,000 and John Natarelli was to get about $100,000 for their parts in the conspiracy, the indictment said. Authorities declined to provide details on the roles the Natarellis were to play in the conspiracy, nor did they explain how Mr. Szczesniak was to benefit from it.

Those named in the indictment are each charged with single counts of conspiracy, attempting to commit grand larceny, and offering a false instrument for filing. Conviction on all the charges could carry a combined maximum penalty of nine years in prison.

John Natarelli and Mr. Greco pleaded not guilty at arraignments in Albany County Court today. Mr. Greco was released on $10,000 bail and John Natarelli was free on $20,000 bail.

Pasquale Natarelli has agreed to surrender for arraignment Wednesday, authorities said, and an arrest warrant has been issued for Mr. Szcesniak.


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