While Mr. Gallagher worked for him, Mr. Ognibene was investigated amid allegations that he had accepted gifts from a building industry consultant. During that investigation, prosecutors also reviewed the work of a company partly run by Mr. Gallagher that sold collectibles on the Internet out of the fourth floor of a local parochial school. Part of the business was the sale of magazines including Playboy and Penthouse, which were wrapped in plastic and intended only as collectibles, Mr. Ognibene said at the time.
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The space was rented to the company to help keep the school financially afloat, and the school forced out Mr. Gallagher’s company once it learned about the sale of the magazines, officials said. No charges were brought against Mr. Ognibene or Mr. Gallagher as a result of that investigation.