Storm damage money potentially misused in Prattsville

PRATTSVILLE, N.Y. (NEWS10) – State and Federal probes have been launched into the town of Prattsville.

The FBI and the State Comptroller seized documents and computers from the town hall.

Locals say the investigation has to do with allegations of the misuse of flood recovery funds following Hurricane Irene.

Homes toppled or moved off their foundations, and piles of belongings ruined from the storm. A few in Prattsville were spared the wrath of the storm in 2011.

“Just a wreck, it looked like a bomb hit the town basically,” Janelle Maurer, owner of the Prattsville Diner, said.

Maurer owns Prattsville Diner and had close the business for four months to rebuild after floodwater rushed through town.

“We saw vehicles floating through town and it was very horrific.”

Governor Andrew Cuomo called Prattsville the worst hit community in the state. With that came state and federal funding. There is now an investigation into whether all that money ended up in the right hands.

The town hired an attorney who says it’s fully cooperating with the investigation.

Town Supervisor Kory O’Hara has also lawyered up. NEWS10 ABC stopped at O’Hara’s Auto Repair Shop where he declined to comment but said he too is cooperating.

Off camera, a local says that rumors about the misuse of funds have run rampant since day one. All the accusations are false, according to and that town official including the supervisor were nothing but helpful.

“I thought they did a fantastic job for what we were all going through and I don’t know what we would have done without Kory they did a great job as far as I could see.”

Many say the town will never be the same. A handful of people have left for good while those who remain brace for the possibility of another flood.

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