NEW YORK DAILY NEWS
Tuesday, April 29, 2014, 10:03 AM
The City Conflicts of Interest Board fined a former Education Department finance boss $ 1,000 for giving inside information to a consultant who was also her lover, documents released Monday show.
Judith Hederman, 45, of Staten Island, resigned from her $ 168,000-a-year job as executive director of the Education Department’s Division of Financial Operations in 2011 as investigators probed her relationship with Jonathan Krohe. His company, Future Technology Associates, did more than $ 74 million in tech consulting for the department from 2006-2009.
Hederman approved a $ 60,000 increase in Krohe’s management fee, according to officials. Krohe was already making $ 200,000 per year to lead a group of consultants the Education Department hired to create an online purchasing system for school principals.
In a settlement released Monday, Hederman, who now works in the private sector, admitted she gave Krohe inside information about his contracts with the city on multiple occasions between 2006 and 2009.
Conflicts of Interest officials said Hederman’s fine “would have been substantially higher had she not suffered the loss of her job, income, and reputation” due to the scandal.
Krohe and his business also came under scrutiny from investigators. In 2011 investigators found that Future Technology Associates overbilled the city by at least $ 6.5 million after it got the contract to build the online purchasing system.
The probe came after a 2009 series by Daily News columnist Juan Gonzalez, who investigated the city’s contracts with Future Technology Associates.
The company no longer does business with the Education Department, but agency officials could not say if the city ever recovered any of the $ 6.5 million.
Neither Hederman nor Krohe was charged with a crime. Neither individual returned calls for comment on Monday.
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