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Former Fiberdyne employees arraigned on fraud, conspiracy charges

By JOLEEN FERRIS

Story Created: Dec 20, 2012 at 6:09 PM EDT

Story Updated: Dec 20, 2012 at 6:12 PM EDT

HERKIMER, N.Y. (WKTV) - Four men formerly employed at Fiberdyne Labs in Frankfort appeared in Herkimer County Court on Thursday to answer charges into fraud and employee theft.

Matthew Paoni, 52, of Richfield Springs; Daniel Caiola, 30, of Frankfort; Michael Caiola, 31, of Herkimer; and Ronald Scalise, 52, of Herkimer face charges that range from grand larceny to conspiracy to falsifying business records.

Authorities say the company "Trans World Optics" was formed while the Caiolas and Paoni were still employed by Fiberyne and mirrored Fiberdyne's Fiber Characterization Division. New York State Police say the charges were based on a criminal investigation that revealed that these employees had used their internal knowledge of Fiberdyne's fiber characterization policies, customer contacts, as well as actual Fiberdyne fiber characterization technicians to fraudulently divert business to the new company. State Police say Scalise assisted the trio in forming the company, which Scalise owned and financed.

All four men entered pleas of not-guilty at their arraignments in Herkimer County Court on Thursday and they are due back in court on January 16 for pre-trial hearings.

A May trial date has been set by the judge.

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