Former SUNY Upstate Medical School President Pleads Guilty to Misconduct by Abusing Position, Illegally Boosting Pay

The former president of SUNY Upstate Medical University pleaded guilty to abusing his position by using several methods to illegally increase his pay.

New York Attorney General Barbara D. Underwood announced Monday that David R. Smith entered a guilty plea to three counts of official misconduct and must pay more than $250,000 in restitution and fines.

“David Smith brazenly abused his position and exploited those he served in order to line his own pockets – and now he’s facing the consequences,” Underwood said.

According to prosecutors, a joint investigation by the attorney general’s office and inspector general’s office revealed that Smith’s initial salary was negotiated by the then SUNY Chancellor and was subsequently approved by the SUNY Board of Trustees. Allegedly, Smith knew he had to obtain approval from the SUNY Chancellor before receiving raises or increases in his compensation.

Prosecutors say that Smith abused his authority as president of SUNY Upstate to increase his pay without authorization, using several methods, including directing a subordinate to approve an unauthorized raise in the amount of about $28,450 in 2007.

Smith allegedly received the proceeds from that raise through the date of his resignation, totaling approximately $189,412 in additional salary he would not have otherwise earned.

Smith also “submitted, approved, collected and received” unauthorized reimbursements for housing expenses that exceeded his authorized $5,000 per month housing allowance by submitting receipts and credit card statements for reimbursements he was not entitled to, prosecutors say.

Additionally, Smith allegedly directed and oversaw the creation of an unauthorized deferred compensation plan to benefit himself and others without the authorization or knowledge of the SUNY Chancellor.

“Once a top executive at a premier medical school and now a convicted criminal, this defendant shamelessly corrupted his position of trust and exploited the university’s lax oversight for an extraordinary theft. Dr. Smith improperly manipulated and siphoned from numerous funding streams under his control,” Inspector General Catherine Leahy Scott said.

As part of his plea deal, Smith must pay $247,419.95 in restitution and $3,000 in fines. Smith will also be sentenced to three years probation on Dec. 10.

According to prosecutors, if Smith fails to adhere to the terms of his plea deal, he could face up to three years in prison.