A former town supervisor in Shandaken has been indicted by an Ulster County grand jury for allegedly securing a $50,000 loan using town funds without proper authorization.

Peter DiSclafani, 68, was charged with grand larceny as a crime of public corruption and two counts of official misconduct.

In May 2024, he applied for and was awarded a $50,000 loan from the Shandaken Area Revitalization Project Committee (SHARP), which, among other things, was paid by the town to administer loans under federal grant programs. DiSclafani sat on the board by virtue of his office.

After his loan was approved by the SHARP committee, he allegedly unilaterally transferred $50,000 in town funds to the SHARP committee to fund his loan without disclosing it to the town board or receiving proper town board authorization.

The SHARP committee wrote him a check for $50,000 two days later.

On May 5, 2025, the Shandaken Town Board voted to end its contract with SHARP and tasked DiSclafani with identifying any outstanding loans SHARP had issued using town funds and having them repaid.

DiSclafani allegedly did not disclose his loan to any board member and made no loan payments until the $50,000 payment from the town to the SHARP committee was discovered during a state audit of the town by Comptroller Thomas DiNapoli’s office.

In criticizing DiSclafani’s alleged actions, Ulster County District Attorney Emmanuel Nneji said, “public service requires the best of a public officer even when no one is looking.”