BY REBECCA BAKER
THE JOURNAL NEWS • APRIL 1, 2008
Dan Culhane scammed his friends and their families out of $1.17 million by convincing them of a future windfall if they would help him retrieve his trust fund.
"It was all a complete lie," said Jeff Leddy of Larchmont, one of Culhane's victims. "When the D.A. knocked on our doors, Dan was still telling us the deal was real."
Culhane, 32, a former star hockey player at Mamaroneck High School, will spend the next 2 1/2 to 7 1/2 years in prison for his scheme. He was sentenced yesterday in White Plains by Westchester County Judge Susan Cacace.
He pleaded guilty to second-degree grand larceny in December. A hockey standout for the Mamaroneck Tigers in the early 1990s, he was convicted of bilking 17 people over several years. He could have gotten 4 1/2 to 15 years behind bars.
Culhane asked his victims, all friends and acquaintances, to help him retrieve an inheritance left by his mother. Once the trust was settled, Culhane promised them a large cash reward for their "investment."
"We thought we were clearing up old taxes for his mom's estate," Leddy said. "There was never a trust."
So far, Culhane has paid back just $120,000 of what he stole.
At least 10 of his victims were in the courtroom yesterday.
Defense lawyer Arthur Aidala asked for a sentence of one to three years, saying the longer Culhane spends in jail, the longer his victims would have to wait for their money.
Culhane apologized to his victims and for embarrassing his family.
"I can't put into words how ashamed I am and how miserable my life has become because of my actions," he said.
His apology meant little to Eugene Augustine, a retired New Rochelle firefighter, who gave $109,000 to Culhane because his son believed his story.
Augustine, 70, said he and his wife were forced to sell their home upstate to make up the loss. His son, Matthew Augustine, lost $139,000 in the scam.
"Matt came to us and asked for money under pretext that we were going to have a windfall coming back," he said. "He was my son, so I believed him."
"As time kept going on, I said something just doesn't fit right here," the elder Augustine said. "Dan kept saying, 'I've got the money coming. Don't worry about it.' "
Aidala said the influence of alcohol played "a major role" in Culhane's crimes.
He handed the judge affidavits from people who said Culhane did not act alone.
Assistant District Attorney Matt Brotman questioned the validity of the affidavits because of the relationships between Culhane and those who wrote them.
Leddy, 39, said he was good friends with Culhane's older brother. He said Culhane promised him millions of dollars.
"He kept telling me, 'Hang in there, it's almost over,' " Leddy said.
Leddy said he was scammed out of $300,000 and lost his business in sports facilities construction. He said he had to move back in with his mother in Larchmont.
"It's been about the worst five years I could have imagined," he said. "He has lied, cheated and swindled from honest people his entire adult life, and has destroyed many lives in the process."
Reach Rebecca Baker at rebaker@lohud.com or 914-694-5064.
