"[It's] a remarkable case. It's one of a kind."

So said State Comptroller Alan Hevesi at a March 2 press conference in Mineola where he announced the findings of an audit by his office of the Roslyn School District embezzlement scandal.

The investigation, which entailed reviewing 57,000 checks and "tens of thousands" of computer records, revealed that $11.2 million was used by school employees, plus their friends and families for personal benefit.

Prior to the release of the audit, it was believed that up to $7.8 million was allegedly "misappropriated" from the district. Throughout the press conference, Hevesi said he preferred the term "misappropriated" to any other.

So far, three district employees---former Superintendent Dr. Frank A. Tassone, former Assistant Superintendent for Business Pamela Gluckin, and former District Account Clerk Debra Rigano---have been arrested and charged on larceny charges.

The bulk of the misappropriated funds were traced back to those three individuals.

According to state auditors, Ms. Gluckin "personally benefited" by "at least" $4,634,012, while Dr. Tassone's personal gain came to $2,407,965. Ms. Rigano's personal gain was $334,452.

Hevesi said that $1,580,274 could not be traced to a specific individual. In addition, 26 individuals, including other school officials and relatives and friends of Tassone, Gluckin, and Rigano had a personal gain of $2,288,462.

The comptroller's office has prepared a 64-page booklet entailing the details of the alleged misappropriations.

For the past several months, some of the specifics of the misappropriated funds have been made public. More were made at the Wednesday press conference.

From the $11.2 million total, $5.9 million were used for personal credit cards for Dr. Tassone, Ms. Gluckin, Ms. Rigano and at least 10 of their family members and friends. Ms. Rigano is Ms. Gluckin's niece.

Hevesi said that both Dr. Tassone and Ms. Gluckin not only charged purchases to their credit cards, but also withdrew cash advances using ATMs. Such cash withdrawals totaled at least $1 million.

In addition, $1,137,939 of district funds was used to make payments on private mortgages and loans for Ms. Gluckin, Dr. Tassone, Ms. Rigano and members of Ms. Gluckin's family.

After that, $609,000 was used for Home Depot purchases, $594,121 for food purchases, $576,586 for salaries and benefits, $255,537 for "Gluckin-owned companies," $249,883 for computers and electronic equipment, $206,798 for private automobiles, $160,171 for insurance premiums, $133,619 for travel expenses, and $112,983 for "other personal expenses."

Under the title of "apparent misuse of district funds," $1,074,547 for was for "related party consultants," $166,945 for postage and shipping, and $64,492 listed as "other questionable expenditures."

In the past, district taxpayers have been treated to stories about certain travel expenses, mortgage payments, and such expenses as dry cleaning bills as part of where the misappropriated monies went.

At the press conference, there was more of the same. Hevesi revealed that district funds went for trips by Dr. Tassone and often several companions to such locations as Las Vegas, New Orleans, Chicago, the states of Colorado, Texas, Hawaii, and Tennessee, plus such overseas destinations as St. Thomas, Morocco, Cancun, Puerto Rico, Thailand, Indonesia, Argentina, and London, England, the latter made on the Concorde.

Ms. Gluckin's travel destinations on credit card statements included trips to Florida, Virginia, Maine, Hawaii, Brazil and Puerto Rico.

Concerning Dr. Tassone's overseas travels, former Board President William Costigan told the comptroller's office that while Tassone's contract permitted him to travel to Europe each year at the district's expense, the Board would not have authorized the trip to London or the lodging, which included a deluxe suite for five nights at $1,812 per evening.

Other expenses on Dr. Tassone's credit cards included purchases from Tiffany & Company for jewelry; Tourneau, also for jewelry; Bloomingdale's for rugs; Gateway computers; Las Vegas health spas; custom tailoring and a heating/plumbing contractor.

Some expenses from Ms. Gluckin's credit cards included those to London Jewelers; Fortunoff; CW Post College (for her daughter's tuition); PC Richards; and Galerie Lassen, an art gallery in Maui, Hawaii.

Hevesi reported that some of Ms. Rigano's credit card expenses included those to Macy's (for jewelry); Lord & Taylor; Bed Bath and Beyond; "purchases and services in Florida"; plus, those for carpeting, rental cars, and hair/nail salons.

The food items, Hevesi said, were "far in excess of the district's educational-program needs." In other words, most of the purchases were for non-school activities.

In addition to travel expenses, Dr. Tassone also received a monthly vehicle allowance and other automotive expenses. However, the audit report "[considers] any payments for automobiles to be in excess of his [Tassone's] car allowance."

Even though Ms. Gluckin did not receive a car allowance, the audit claims that district funds were used for lease payments on "a variety of cars for Gluckin, as well as purchasing a car for her daughter."

Under the personal expenses categories, misappropriated funds went to such items as Dr. Tassone's Manhattan parking space, two Manhattan cleaning vendors, a Manhattan storage facility, Mill Square Dry Cleaners in Mamaroneck, Time Warner Cable Company, Dr. Tassone's personal Christmas cards, a one-year health club membership, checks to NY Water, an Aquabot Ultra Pool Cleaner, and to Mandalay Bay, a Las Vegas resort and casino.

Also throughout the press conference, Hevesi maintained that he did not want to give the names of the 26 other individuals---the school officials and friends of Dr. Tassone, Ms. Gluckin, and Ms. Rigano---who also gained from the misappropriations. Some of the misappropriated funds, Hevesi said, were used to inflate salaries of former assistant superintendents in the district.

Hevesi also said he was referring the names of the 26 to Denis Dillon, the Nassau County District Attorney, who, in fact, attended the press conference and introduced the comptroller.

Finally, Hevesi emphasized the significance of holding the press conference in the District Attorney's office in Mineola, implying that more news about the other beneficiaries was forthcoming.

While blasting the misappropriations as a "sordid story," Hevesi also admitted to the "breathtaking diversity in the scheme of doing things" and the creativity of those allegedly involved in the misappropriations.

He was also highly critical of both the old school board and the district's auditor, Miller, Lilley & Pearce.

"No one was watching," Hevesi remarked, while explaining why the misappropriations took place on such a grand scale.

"The board failed in its responsibility for monitoring and overseeing the District's financial activities," the report claimed. "The Board did not routinely review Budget Surplus Reports that would have indicated improper and excessive spending. The board also did not establish policies required by law or sound business practice regarding cash receipts and payments, travel, credit cards, bank account reconciliations and more."

Similar harsh language was used to criticize the district's independent auditor.

"The...auditor had conflicts of interest and performed work that was so flawed and so below professional standards that it failed to identify the millions that were stolen. After the Comptroller's Office released an audit of the independent auditor's failed performance, the firm went out of business," the report noted.

Hevesi used the occasion to recount how the board and the auditors initially handled the scandal.

In October 2002, a local whistle-blower alerted district personnel on what was happening. That whistleblower, Hevesi said, was "blown off" by both Dr. Tassone and Ms. Gluckin.

However, after a district accountant had discovered over $220,000 in misappropriated funds, the board met and decided on a course of action. The funds were linked to Ms. Gluckin; and so the board decided that Ms. Gluckin would repay the district, resign her position, while all the while keeping the discovery from the public.

Hevesi blasted Miller, Lilly & Pearce for not conducting further investigations, while in general performing "appallingly inadequate" audits.

Hevesi also singled out both the district's Treasurer and Internal Claims Auditor for additional criticism.

Both employees, Hevesi said, should have identified the ongoing misappropriations. Instead, both employees "did not do their jobs to ensure that only appropriate and authorized payments were being made."

"There was a complete breakdown of the district's system of internal controls," the report stated. "Tassone and Gluckin could override the system and process payments outside the normal flow of transactions."

As it has done in the past, the comptroller's office listed numerous recommendations to "correct weaknesses" in the district's system of internal controls. They include:

* Require the school board to review Budget Status Reports at least quarterly at a public meeting.

* Establish an audit committee to oversee audit work.

* Require claims to be sufficiently detailed and audited prior to payment.

* Limit computer system access as appropriate for an individual's jobs function.

* Separate duties to reduce the possibility of fraud.

* The board should be adequately trained in areas covering the basics of financial oversight, accountability and fiduciary responsibilities.

* An annual evaluation of district policies and procedures should be conducted by the board.

* Establish policies that specify the circumstances under which employees may travel.

* Establish policies that specify the circumstances under which district employees may receive reimbursements, and require that claims are sufficiently detailed and adequately audited prior to payment.

Hevesi was joined at the press conference by not only Denis Dillon, but also Nassau County Comptroller Howard Weitzman and State Senator Michael Balboni.

"By us working together, we will bring justice to the people of the Roslyn School District," Dillon intoned.

"This is what happens when you get ripped off," said an angrier Howard Weitzman. "[We get] higher taxes, [while robbing] schoolchildren of resources."

"This couldn't have happened at a worse time," said Balboni, referring to a recent State Supreme Court ruling that decrees that more money be sent to the New York City public school system, all at the expense of Long Island schools.

Still, Balboni said the report represented the "first step" by "rooting out corruption and making sure this never happens again."

Peter Mancuso, the district attorney's lead prosecutor in this case, said that restitution for any misappropriated funds would be sought by his office. He said that fresh indictments were under investigation and that his office would be "quick to file charges, if necessary."

Several members of the current Roslyn Board of Education were also present, including Board President Stanley Stern who publicly thanked Hevesi for the "outstanding service" they have performed in detailing the specifics of the scandal and offering recommendations to the board.