DiNapoli: Troy Housing Authority IT Worker Arrested for Secretly Running Private Business on Housing Authority Time

New York State Comptroller Thomas P. DiNapoli, Rensselaer County District Attorney Mary Pat Donnelly, and New York State Police Superintendent Steven G. James announced the arrest of a former Troy Housing Authority information technology (IT) employee for the alleged theft of $7,089 in wages. Marsden Chen is accused of running his own company, Diagnostic Services & Installations, while clocked in at his job for the housing authority.

"Public time is for public work, not to subsidize one's private business," DiNapoli said. "Mr. Chen allegedly collected his public salary while working for his private business clients. My thanks to Rensselaer County DA Donnelly and State Police Superintendent James for their partnership in safeguarding the public's money from abuses like this."

"Clocking in to collect a public salary while earning income from a private business is theft, plain and simple. I am grateful to the New York State Police and the Office of the State Comptroller for partnering with us as we work together to hold Mardsen Chen accountable for his actions," Donnelly said.

"We will continue to work with our law enforcement partners to ensure that public funds are protected and those who abuse the public trust are held accountable," James said. "This case underscores our shared commitment to integrity and to maintaining the confidence of New Yorkers."

The Troy Housing Authority contacted the State Police when it noticed that Chen was clocking in and out of its timekeeping system but was rarely seen in the office. A joint investigation was carried out by the State Police, DiNapoli's Division of Investigations, and the Office of the Inspector General for the U.S. Department of Housing and Urban Development.

The investigation found that Chen, who was the sole employee of his private company, was allegedly working for his private clients, which included other municipalities, during hours he claimed to be working for the Housing Authority. His company had IT management and support contracts with 17 municipalities, fire and police departments, and non-profits, among other clients. A forensic audit determined that he received over $7,000 in unearned wages from the Housing Authority.

Chen was placed on leave in June 2023 and his employment was terminated in August 2023.

He was charged with grand larceny in the third degree as a crime of public corruption, a class D felony and official misconduct before Judge Anne L. Coonrad in Troy City Court.

The charges filed in this case are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by emailing a complaint to [email protected]or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.