Riverhead parks commissioner sues for job back after firing for audit 'misrepresentation'

The ousted Riverhead recreation superintendent who was fired in June amid an AI-generated financial report controversy is asking for his job back in a lawsuit filed this week.

Ray Coyne, who led the parks and recreation department since 2005, was terminated after admitting to using artificial intelligence programs to prepare a financial report for the department and falsely attributing it to an accounting firm.

Though he has admitted initially lying about the origin of the report, the lawsuit argues that Coyne’s actions did not cause harm to the town and that termination was too harsh of a penalty that didn’t factor in his years of service.

"He had for years tried to explain that there were accounting discrepancies related to his department, and it was falling on deaf ears," Adam Weiss, a Glen Cove-based attorney for Coyne, said in an interview. "That’s the only reason he generated this report."

Riverhead Town Attorney Erik Howard said the board’s decision to fire Coyne is "well supported" by evidence presented at a disciplinary hearing. 

"Ultimately, the employee prepared and submitted a fraudulent document to a public body," Howard wrote in an email Thursday. "To argue that such dishonesty does not warrant termination is absurd."

A long-standing dispute over accounting practices led Coyne to make the report, according to the court filing.

Since 2007, Coyne claims he had raised concerns that the town was charging employee benefits to its recreation program fund, which made the department appear to be operating at a deficit. Coyne said during an April disciplinary hearing that he felt "horrible" over what he characterized as a "misrepresentation."

Coyne, the lawsuit says, "raised the issue through proper channels for more than fifteen years" and sent between 150 and 200 emails to town officials in that time period to no avail.

In December, Coyne submitted a document entitled "Independent Forensic Accounting Review" attributed to "Mancini Forensic Accounting & Advisory Group, PLLC." He later admitted using AI to author the report himself so that town officials would take his concerns seriously, according to the lawsuit and disciplinary report.

The town alleged that Coyne submitted the report for "self-serving" reasons after learning that the Riverhead Town Board was considering eliminating his $8,000 annual stipend for running the Youth Bureau, according to a hearing officer’s report.

Weiss called that allegation "preposterous" and said Coyne had already been working on the report before he learned the stipend would be taken away.

Coyne, 52, earned $174,961 in 2025, according to town payroll records. Under his leadership, the department grew from 50 to 150 programs, resident participation doubled and revenue grew from $582,000 in 2006 to over $1 million in 2024, according to the petition.

Since his firing, the department has been led by Ashley Schandel, the former assistant superintendent.

The town, during disciplinary proceedings, cited prior incidents involving Coyne ranging from "poor judgment" and "failure to carry out directives" to "confrontational attitude." Coyne served a two-week suspension in 2019 after being charged with insubordination, according to the hearing report.

The hearing officer wrote that the town followed "progressive discipline" throughout Coyne’s tenure and recommended his termination, adding that he "clearly has lost the trust needed to effectively work with the town supervisor" and board.

Weiss said Mancini is a real firm and member of Coyne’s extended family, but that the report was not released publicly and no town funds were spent. He said Coyne is "optimistic" and wants to return to work.

"He really just wants to get back to finish his service. He was a certain number of years short of retirement," Weiss said.

The lawsuit seeks to annul his termination and for Coyne to be reinstated with back pay and benefits to June 23. It also asks the town to impose a less severe penalty.

Attorneys for Riverhead Town have until Dec. 2 to file a formal response. Court records show Richard Zuckerman, an attorney at the Melville office of Keane & Beane PC, is representing Riverhead in the proceeding.