Showing posts with label campaign finance scandal. Show all posts
Showing posts with label campaign finance scandal. Show all posts

Wednesday, May 14, 2014

Anybody But Quinn Super PAC donor deflects questions about FBI investigation into campaign corruption

"I don’t have any comment on any of that."

Anybody-But-Quinn-Super-PAC-Cover-Up

Mayor Bill de Blasio's cousin, John Wilhelm, was the former leader of the union, UNITE HERE! The union made a large contribution of $175,000 to the animal rights group New Yorkers for Clean, Livable, and Safe Streets (NY-CLASS) on June 1, and, two days later, NY-CLASS regifted the same large contribution to a Super PAC that was funding a flood of TV attack ads against former City Council Speaker Christine Quinn, who was the leading Democratic mayoral primary candidate at the time. When Mr. Wilhelm was asked by The New York Daily News to identify who directed UNITE HERE! to make the donation to NY-CLASS, Mr. Wilhelm replied that he had "no comment."

The size and timing of the union's campaign contribution are enough to raise questions about coordination between the mayor's cousin and the anti-Quinn attack Super PAC, but the way that UNITE HERE! structured the donation to pass-through NY-CLASS first in order to get to the anti-Quinn attack Super PAC raises further legal problems, because the pass-through contribution was cloaked in "anonymity for months," The New York Daily News reported. NY-CLASS wasn't required to disclose UNITE HERE!'s contribution until NY-CLASS "began its own campaign spending, an event that occurred on Sept. 7, three days before the Sept. 10 mayoral primary." The $175,000 was practically hidden from voters and activists autonomously working to defeat former Speaker Quinn's mayoral campaign, because NY-CLASS "disclosed the contributions on Sept. 17, 10 days after the primary," The New York Daily News's report added. NY-CLASS's questionable finances have been the subject of a series of reports by Crain’s New York Business reporter Chris Bragg.

The union UNITE HERE! last triggered controversy when its former political director, Maura Keaney, was raising campaign donations from unions on behalf of former Speaker Quinn, even as Ms. Keany was working on municipal legislation involving unions. Ms. Keaney's actions were a "potential violation of the city’s conflicts of interest law," The New York Times reported at the time. At the conclusion of the city's investigation, Ms. Keaney was slapped on the wrist with a $2,500 fine to dispose of the corruption investigation into her political machinations. To dissipate political blow-back to Speaker Quinn, Ms. Keaney served on former Mayor Michael Bloomberg's 2009 reelection race. After Mayor Bloomberg won that election by a slim margin, he paid Ms. Keaney a lottery-sized bonus of $150,000, which more than made up for her ethics fine.

According to federal law, it is illegal for Super PAC's to coordinate their activities with official campaigns of politicians. Does handing off the same, sizable campaign contribution, apparently timed just right, through an intermediary meet the scrutiny test to prove coordination ?

Both NY-CLASS and the anti-Quinn Super PAC shared the same political lobbying firm, The Advance Group, which is headed by Scott Levenson, a political operative who further shares connections with Mayor de Blasio, given their long history of supporting the Working Families Party, one of the mayor's key political supporters. In the last election, Mr. Levenson further attracted scrutiny for possibly coordinating the 501(c)(4) political expenditures of NY-CLASS and other Super PAC monies with official political campaigns that he also managed in his capacity as a campaign consultant. The anti-Quinn Super PAC was known as NYC Is Not For Sale, but it organized under an astroturf campaign known as "Anybody But Quinn."

Sunday, May 11, 2014

Did New York State Election Officials Create a Dual Mandate Loophole to Campaign Finance Caps ? [UPDATED]


SPECIAL NEWS UPDATE: SUN, 11 MAY 2014, 09:30 PM

Now that federal prosecutors have empaneled a grand jury to investigate political corruption, all of a sudden Gov. Andrew Cuomo is pushing changes to the state campaign finance system -- but only after he amassed a $30 million war chest for this year's reelection race.

But the governor wants the state to adopt the New York City campaign finance model, even though this model easily allows for unscrupulous candidates and Super PAC's to engage in campaign finance corruption.

In spectacular articles in The New York Daily News, it was reported the FBI is investigating a Super PAC for possibly violating the law. These articles portrayed former Council Speaker Christine Quinn as the victim, even though Speaker Quinn weakened campaign finance laws in the New York City model.

Christine Quinn's replacement as Council speaker, Councilmember Melissa Mark-Viverito, collected her public matching dollars from the New York City model, then she opened another campaign finance account to go around restrictions of the New York City model.

The only answer real campaign finance reform advocates should support is a ban on all private campaign donations, and, in its place, 100% public financing of campaigns with heightened oversight. Any reasonable person can see how the New York City campaign finance model can be gamed, but maybe Gov. Cuomo can't see straight ?


SPECIAL NEWS UPDATE: FRI, 25 APR 2014, 09:50 AM

Scott Levenson NY-CLASS Christine Quinn Bill de Blasio FBI Investigation into Campaign Corruption photo 2014-04-25TheNewYorkDailyNewsFBIReport_zps189d95ac.png

In the past few weeks, FBI agents have been asking questions about the campaign by the animal rights group NY-CLASS to strong arm former Council Speaker Christine Quinn (center) to support a ban on the iconic horse-drawn carriages, two sources familiar with the matter told The New York Daily News. The horse lobbyists in question include Scott Levenson, and they are linked to Mayor Bill de Blasio (inset). (FBI investigating claim that Christine Quinn was threatened by Scott Levenson for refusing to support carriage horse ban during the mayoral race * The New York Daily News)


PUBLISHED : THURS, 27 MAR 2014, 05:30 PM
UPDATED : SUN, 11 MAY 2014, 01:30 PM

By Approving Double Electioneering Accounts For Melissa Mark-Viverito, Did Election Officials Create a Dual Mandate Loophole to Campaign Finance Caps ?

Last year, New York City Councilmember Melissa Mark-Viverito raised $149,151 in private donations for her primary reëlection race. Because she remained under the $168,000 cap on private donations set by city campaign finance regulations, the New York City Campaign Finance Board granted Councilmember Mark-Viverito's campaign $158,502 in public matching dollars, according to the Campaign Finance Board's formula. City campaign finance rules require that all donations and in-kind contributions to political campaigns be disclosed to the Campaign Finance Board. But last year was the first time when the corrupt Citizens United Supreme Court ruling opened the floodgates of outside independent expenditure Super PAC money in the New York City municipal elections, and Councilmember Mark-Viverito received the benefit of about $26,868 in outside Super PAC spending in a super-heated primary election campaign ; she won her primary bid with barely 36% of the vote. If any of that extra money, which Councilmember Mark-Viverito desperately needed to defeat her five other challengers, was coordinated with her campaign, then she might have exceeded her cap on fundraising.

Since Councilmember Mark-Viverito's district is overwhelmingly Democratic, she faced no serious challenge from the Republican or Liberal party candidates after she won the Democratic primary. Having succeeded at being reëlected, she initiated a semi-private campaign to lobby her fellow councilmembers in order so that she could become selected as the next City Council speaker. Although the spirit of campaign finance laws is to regulate and decrease the corruptive influence of money and lobbyists in elections, Councilmember Mark-Viverito opened a second campaign account during the same election cycle in order to hire a team of lobbyists, this time for the Council speaker race. Instead of campaigning before voters, Councilmember Mark-Viverito sought to persuade her fellow councilmembers to vote for her in the Council speaker race. She also used the second campaign account to make patronage-like donations to other political supporters. Traditionally, the Council speaker race has been an "insider's game," where political party heads, operatives, lobbyists, and special interest operate in backroom meetings to barter for support, obscuring from public scrutiny the true extend of the negotiations that go into determining who becomes the Council speaker. True to tradition, much of the political machinations that went into winning the Council speakership for Councilmember Mark-Viverito were never transparent to the public.

Melissa Mark-Viverito photo melissa_mark-viverito_3_zpscc49b72b.jpg

Because of the caps on fundraising, Councilmember Mark-Viverito could not open that second electioneering campaign account through city election regulators at the Campaign Finance Board. Instead, she opened that second electioneering campaign account through state election regulators at the New York State Board of Elections. Subject to no cap in fundraising and ineligible for public matching dollars, that second electioneering campaign finance account allowed Councilmember Mark-Viverito to raise another $100,828 for the Council speaker race. In addition to the resources afforded to Ms. Mark-Viverito by this other $100,000 in contributions, she also benefitted from having employed the services of The Advance Group lobbying firm for free. Councilmember Mark-Viverito also benefited from the lobbying services provided by Alison Hirsch, a union political operative. Ms. Hirsch had been retained by the Progressive Caucus of council members. In an apparent example of how inconsistent the Campaign Finance Board is, it's unknown how the Progressive Caucus paid for Ms. Hirsch's lobbying services or who made campaign contributions to the Progressive Caucus in order for Ms. Hirsch to be paid for her lobbying services, or whether the Progressive Caucus was required to establish a legal political committee with state campaign finance regulators.

How could city and state campaign finance regulators condone two electioneering accounts during the same election cycle for one City Councilmember when all other councilmembers were subjected to a cap in fundraising and limited to one campaign finance account ?

The only way the Campaign Finance Board could approve Councilmember Mark-Viverito's use of two electioneering accounts during the same election cycle would be if the Campaign Finance Board were affirming that New York City would treat a City Councilmember and any leadership post held by that Councilmember as two separate, public offices, also known as a dual mandate. But does a City Council leadership post rise to the level of being treated as a "public office" separate and distinct from the underlying Councilmember's public office ?

On background, a supervisor at the New York State Board of Elections was contacted about two questions : (i) is it legal for an elected official to hold more than one simultaneous publicly-elected office, and (ii) how do state campaign finance regulators treat a second campaign finance account for a candidate, when the same candidate is subject to caps for a first campaign account. In a phone conversation, the supervisor admitted that these questions were too complex. "You could have three election lawyers in a room, and you would get three different answers," the supervisor said. The questions were separately submitted as a FOIL request to the state Board of Elections. Although the request sought the legal reasoning that would allow the Board of Elections to grant Councilmember Mark-Viverito the right to open a second, unregulated campaign finance account, the Board of Elections provided a response nine days after the request was made, describing the underlying request for information as not a "request for records." Instead, the Board of Elections passed the buck to their legal staff. "We have forwarded your request to the Counsel’s Office for their reply," the Board of Elections response read, in part. The Counsel's Office never provided a response. In a further discussion with a Board of Elections official, the official stated that there is no specific statue that prohibits a candidate for elected office to open a state election account for a Council leadership race. When the official was asked how could a campaign finance regulatory authority enable politicians to keep opening serial campaign accounts, when the very act of perpetual, unregulated fundraising violates the spirit of campaign finance regulations, the elections official clung to the reasoning of an absence of a prohibited statute. Even after it was pointed out that press reports questioned the way one political candidate, Councilmember Mark-Viverito, used a state Board of Elections account to finance post-Election Day campaign activities that are otherwise distinctly prohibited by the campaign finance regulatory authority nominally tasked to supervise municipal officeholders, the state elections official clung to the reasoning of an absence of a prohibited statute. The state elections official said that as far as the State Board of Elections knew, the state campaign account established by Councilmember Mark-Viverito was for a race in 2017 cycle. Consequently, the FOIL request was modified to request "copies (preferably in .PDF format, if available ; if not, in physical form) of : any agency application or designation document(s) ; any campaign committee formation documents ; list(s) of campaign committee officers ; written certifications, affidavits, or attestations ; committee registration and information document(s) ; committee authorization status document(s) ; and all other required due diligence documents filed or submitted in respect of any campaign committee(s) for the political candidate Melissa Mark-Viverito that correspond with the establishment of these two BOE campaign finance accounts : Filer ID's : C02515 and C02516." In response, the Board of Elections provided the following documents : Committee Registration : Treasurer and Bank Information, Committee Authorization Status, and Candidate's Authorization For A Committee To Make All Campaign Financial Disclosures. The forms submitted to the Board of Elections, which were signed and attested to by Councilmember Mark-Viverito and her campaign treasurer, Randolph Mark, indicated at first that the campaign committee being formed by Councilmember Mark-Viverito was going to be for an office "TBD" with a date of election "TBD." The date of election was later scratched out and replaced with "2017." Even though it has been widely reported that Councilmember used her state Board of Elections account to finance her Council speakership race, the state Board of Elections refuses to acknowledge that Councilmember Mark-Viverito's campaign committee deliberately deceived the state's campaign finance regulatory authority, and so far the city campaign finance regulatory authority refuses to admit that its public matching dollar system was gamed by Councilmember Mark-Viverito. This is even after many scandals, where politicians, their teams of lobbyists, and questionable donors continue to game the system. Today, the Editorial Board of The New York Daily News opined that if political campaigns can scam the public matching dollar system of the Campaign Finance Board, imagine what kind of campaign finance fraud can be perpetuated through the Board of Elections, if the state's regulator adopted a public matching dollar system ? The Editorial Board singled out how the Board of Elections is a compromised regulatory body : ". . . the see-no-evil Board of Elections . . . is party-controlled and paralyzed in the face of runaway lawbreaking." In an environment where city and state campaign finance regulators don’t even care to reign in the corruptive role of big money donors, special interests, or lobyists, a candidate can do whatever it takes, even violating the law outright in order to keep gaming the broken campaign finance system in New York. Against this backdrop of corruption, Gov. Andrew Cuomo announced that he was dissolving a state commission that was investigating public corruption, thereby decreasing the amount of regulatory scrutiny on corrupt candidates, donors, and lobbyists at the very time when it’s most needed.

There's nothing to stop shady politicians from opening never-ending electioneering accounts or setting up secretive 501(c)(4) organizations to violate the spirit of campaign finance regulations.

A dual mandate is a controversial practise that allows politicians to hold more than one simultaneous elected office. The practise was banned in New Jersey by then Gov. Jon Corzine in 1992 over concerns that such politicians would create conflicts of interest in government. In examples that were noted by The New York Times, sometimes a municipal official would also concurrently hold a state-level office. But in Councilmember Mark-Viverito's case, she is holding what she considers two simultaneous offices : a seat on the City Council subject to a city campaign finance regulations and a leadership post on the same City Council, which is not subject to any city campaign finance regulations. It is said that until recently, Councilmember Mark-Viverito was also a District Leader of the state Democratic Party. She had only won the District Leader race last September, but she reportedly resigned her position, but the Web site for Manhattan Democratic Party still shows her holding the position. It’s not known why Councilmember Mark-Viverito resigned her position, if other elected officials hold a publicly-elected office at the same time when they serve as a District Leader. Although a District Leader is still publicly elected by members of that political party during that political party’s primary race, a District Leader is not a government office. For example, Keith Wright, the chair of the Manhattan Democratic Party and a District Leader, is also a state assemblyman. A search for Councilmember Mark-Viverito’s name with state campaign finance regulators showed no state campaign finance account for her District Leader race. It apparently was never disclosed how Councilmember financed her race for District Leader. Such races can involve considerable expense. In 2010, Lincoln Restler raised $66,066 for his District Leader race, and in 2012, Mr. Restler raised $92,513, demonstrating that a candidate for a mere political party leadership post could use a District Leader race to raise vast amounts of campaign donations, over which campaign finance regulators have limited some say, but impose no overall fundraising or spending cap.

Candidates can further game city and state campaign finance regulations by receiving the benefit of electioneering activities of independent expenditure groups or Super PAC’s. A New York City Democratic Party official, who spoke on background, said that a candidate for District Leader could raise large sums of campaign contributions, like Mr. Restler, according to complex formula that is neither entirely clear or fully transparent, and still receive external help from an independent expenditure group or Super PAC. Mind you, this is only for a political party leadership post that can be served concurrently with a publicly-elected office, which would be subject to its own campaign finance restrictions that could further be augmented by further electioneering activities of an independent expenditure group or Super PAC. What good is a spending cap in one election race, when a candidate has so many options to game the system ? In Councilmember Mark-Viverito’s case, she further opened a third campaign finance account, this time to pay for celebrations and other transition functions, even though she had been re-elected to her Councilmember district, and it remains unclear what transition functions an incumbent office holder needed to conduct outside of her official public duties ?

One major issue that good government groups and government reform activists face is to know why city and state campaign finance regulators would accord Councilmember Mark-Viverito the advantage of having so many electioneering accounts during the same election cycle, but deny that right to other candidates seeking a public office, but maybe it has something to do with how city and state campaign finance regulators can’t keep up with the many ways that candidates and their lobbyists make Swiss cheese out of regulations and restrictions ?

In New York, politicians generally shuttle between posts in municipal and state-level elections. Before she was a City Councilmember, Melinda Katz was a legislator with the New York State Assembly. She now serves as Queens Borough President, a municipal post. But she never held any of these posts in a concurrent fashion. Similarly, Thomas Duane ran for a seat in the New York State Senate while he was still a New York City Councilmember. After he won his State Senate race, he resigned from the New York City Council in order to take his state-level post. In New York, however, it appears that a distinction known as double-dipping is allowed, which is separate from a dual mandate. For example, the current New York City schools chancellor, Carmen Farina, came out of retirement to run the city’s public schools in the de Blasio administration. Mayor Bill de Blasio negotiated a deal which allowed Ms. Farina to continue to collect her retirement income at the same time she collected a full salary for serving as the schools chancellor. It's not transparent how the mayor has discretion to approve double-dipping, or when voters approved that councilmembers could treat the seeking of a City Council leadership post as a separate "election." Lobbyists would be interested in maximizing the number of times that candidates could mobilize an army of lobbyists, because lobbyists would be motivated by seeking additional opportunities for compensation, sometimes inflated by public matching dollars, or establishing a special insider access relationship with elected office holders. Contrary to some perceptions, some candidates for leadership posts, who are prolific fundraisers, would also welcome further opportunities to raise money, because the added contributions would give the candidates an unfair advantage over challengers, who are not adept at raising vast amounts of campaign donations. But why would voters deliberately want a situation like this, that would be so susceptible to the corruptive influence of money and lobbyists in determining the leaders of the City Council ?

The Campaign Finance Board was contacted by e-mail to determine its view of dual mandates. "The NYC Campaign Finance Board does not regulate which offices individuals can run for or hold, nor do we have the authority under the law to do so," Campaign Finance Board press secretary Matthew Sollars said in an e-mail. The more campaign finance reform advocates examine the role of city campaign finance regulators, the more it becomes apparent that the regulations have not kept up with the corruptive machinations of politicians or their lobbyists.

Besides the uniqueness of Councilmember Mark-Viverito's dual electioneering accounts, should advocates for campaign finance reform conclude that Councilmember Mark-Viverito's situation disadvantaged her challengers by disallowing her challengers the same opportunities to open serial campaign finance accounts, an unexplained advantage that Councilmember Mark-Viverito enjoyed, or should Councilmember Mark-Viverito's double electioneering accounts be seen as having set a dangerous precedent, whereby an elected official can keep opening electioneering accounts, even after having won a general election, to continue raising money from wealthy and special interest donors in order to arguably campaign for dual mandates or special interest causes ? In the effort to reign in the corruptive influence of money and lobbyists in politics, where can voters expect city and state campaign finance regulators to draw the line ?

The danger of dual mandates and perpetual campaign fundraising in New York City politics

How can a seasoned politician, like Councilmember Mark-Viverito, argue that she can remain eligible for $158,502 in public matching dollars for her primary City Council reëlection race, but still go outside the spirit of campaign contribution caps in order to raise over $100,000 for her run for City Council speaker ? What Councilmember Mark-Viverito seeks to do is to create a backdoor that will allow politicians to treat leadership posts as further elected offices that are separate from the underlying elected office that first permitted a politician the privilege, but not the right, of serving the public.

There's no written guarantee that politicians can keep raising money whenever they want. If they did, this would violate the spirit and nature of campaign finance regulations. What is more, it would treat any leadership race in the same legislative body as a separate "election," thereby leading to never-ending campaign fundraising cycles within government, regardless whether the campaigning would take place before or after what we traditionally view as the first Tuesday in November, or "Election Day." If Councilmember Mark-Viverito can treat the Council speakership as a "separate" election, why didn’t Councilmember Daniel Dromm declare any expenditures in his campaign to be named chair of the City Council Education Committee ? As early as a last December, the press was reporting that Councilmember Dromm was seeking that leadership post. Do city and state campaign finance regulations only require disclosure for some City Council leadership posts, but not all ? Are regulations meant to root out corruption only applied on a voluntary basis ?

In Councilmember Mark-Viverito's view, she has a right to raise money to "lobby" other elected officials for a leadership post the same way she has a right to "campaign" before voters for an elected office. This is an example of the addiction to the corruptive role of money and lobbyists by entitled elected officials, who become unprincipled after they become elected. As a self-identified "progressive," Councilmember Mark-Viverito should be moving away from the corruptive role of money and lobbyists in government, not moving towards it. Likewise, Mr. Restler, who some describe as a reformer, in spite of his dependence on prolific fundraising just to earn a political party leadership post. As it stands, good government groups already criticize other loopholes that allow officials seeking unelected municipal appointments to hire lobbyists cloaked in secrecy to game the appointment process. When officials seeking unelected government appointments, they can hire lobbyists, and how these lobbyists are paid, whether any fundraising is conducted, or other details about the relationship between prospective and elected officials and their corresponding lobbyists are not required to be disclosed to the public. In the example of Ms. Farina, the schools chancellor, it's unknown if she employed a team of lobbyists to negotiate any terms of her employment, including her double-dipping. If she had, there's no rule that would require Ms. Farina to disclose the details pertaining to her lobbyists, how they got paid, or if there was any fundraising to pay for her lobbyists. The same goes with lobbyists, if any, that may have had a role in negotiating the controversial appointment of Willliam Bratton as commissioner of the New York Police Department.

Added to all of the questions of suitability and compliance of twin electioneering accounts and dual mandates is the objectivity of the Campaign Finance Board to review these serious issues. Few advocates for campaign finance reform believe that the city's Campaign Finance Board can be trusted to police the corruptive influence of money and lobbyists in government. Already, three complaints about municipal campaign finance or electioneering violations have been filed at the federal level, because there are reasons to suspect that city campaign finance regulators have become politicized in their review of violation cases. Since the board members of the Campaign Finance Board are selected by a combination of either the mayor or the Council speaker, the board members are not truly independent from influence from City Hall or City Council. When violation cases roll up to either the mayor or to the Council speaker or to political operatives connected to either, as they do in the review of Councilmember Mark-Viverito’s twin electioneering accounts, how can the Campaign Finance Board truly act free of undue influence from either the mayor or the Council speaker ?

When the NYC Is Not For Sale Super PAC was found to have violated reporting requirements, the Campaign Finance Board essentially fined the Super PAC ten cents on the dollar for the infraction amounts. It's been asserted by others that the NYC Is Not For Sale Super PAC acted in concert or to directly benefit the mayoral campaign of Mr. de Blasio, and, in apparent gratitude, Mr. de Blasio consequently attended a key fundraiser for one of the large donors behind the Super PAC last year, an event that was closed to the press, further frustrating transparency. Given the Super PAC's close association with the mayor, it shouldn't come as any surprise that the Campaign Finance Board would levy a proverbial slap on the wrist when the target of an investigation is connected to the mayor. This contrasts greatly to when the Campaign Finance Board dealt a death blow to John Liu's mayoral campaign, one of Mr. de Blasio's challengers, by denying Mr. Liu any public matching dollars in last year's mayoral race. Furthermore, Mayor de Blasio seems to be allowed to set up 501(c)(4) advocacy groups that work in tandem with City Hall without question from the city or state campaign finance regulators.

  • RELATED : The Campaign Finance Board is the judge, jury and executioner of New York City's campaign finance law. As Albany eyes the CFB as a model for a statewide public financing system, City & State probes how the agency has wielded its enormous power over city elections. (Cracks in the Campaign Finance Board * City & State)
  • RELATED : Reform advocates and Gov. Andrew M. Cuomo tout New York City's public campaign finance system as a model for the state to follow. But some political figures who insist they support the city Campaign Finance Board's mission are questioning its stewardship. (Campaign Finance Board leadership questioned * Newsday)

Going back to the unknown regulatory reasoning for Councilmember Mark-Viverito's need to establish a second electioneering account outside of the jurisdiction of city campaign finance regulators, how is the Campaign Finance Board going to rule in her case ? Presumably her first campaign finance account is undergoing a post-election audit. The only way the Campaign Finance Board knew that the NYC Is Not For Sale Super PAC had violated disclosure requirements was because investigators found inconsistencies after having cross-checked the Super PAC's reported disclosure filed with the Campaign Finance Board against the reported disclosure filed with the state's Board of Elections. But in Councilmamber Mark-Viverito's case, she couldn't file the Council speaker race disclosure report to city campaign finance regulators, because that report would have violated the spending cap in place for the primary and general election campaigns. The Campaign Finance Board does not have rules for allowing fundraising beyond the general election, nor does it guarantee a politician the ability to perpetually raise campaign donations after Election Day, unless we are witnessing the final politicalization of municipal elections by board members of the Campaign Finance Board, wherein the board members will allow the de Blasio-Mark-Viverito administration to decimate the spirit of campaign finance laws ? Only time will tell.

The questions surrounding Councilmember Mark-Viverito's speakership race add to the largely unexamined role that other Super PAC's, other lobbyists, and the flood of money had in last year's municipal elections, the first time the corruptive influence that the Supreme Court's ruling in Citizens United would be observed in local political races. None of all that is being examined. If the mayor and the City Council were truly progressive, they would be calling for a real investigation of allegations of campaign finance corruption. Unless, of course, it turns out that the elected officials occupying City Hall and City Council were progressives in name only ?


QUESTIONING THE NEW YORK CITY CAMPAIGN FINANCE BOARD

With John Liu's lawsuit against New York City over conflicted city campaign finance regulators, this makes three federal referrals of elections violations, forcing Mayor de Blasio to lawyer-up, recruit special inside election counsel.

After a wave of federal complaints that have been lodged over electioneering violations in last year's municipal elections, Mayor Bill de Blasio has hired a special legal advisor specializing in election law.

Since Mayor de Blasio and City Council Council Speaker Melissa Mark-Viverito, and/or their political operatives, are entangled in some of these federal complaints, it should come as no surprise that Mayor de Blasio is now maneuvering to use his public office to defend himself against allegations of wrong-doing that took place during the electioneering of last year's municipal elections.

The three federal complaints lodged following last year's municipal elections :

  1. GOP consultant E. O'Brien Murray argued to the State Department that Patrick Gaspard, a former top White House aide with a deep history in Gotham politics, violated the federal Hatch Act by getting involved in Mayor de Blasio's campaign -- and City Councilwoman Melissa Mark-Viverito's subsequent election as speaker -- while representing the U.S. in South Africa. (GOP Operative Files Hatch Act Complaint Against U.S. Ambassador Patrick Gaspard * The New York Daily News)
  2. Louis Flores, a local political gadfly who ran a blog and wrote a book criticizing Christine Quinn, has filed a complaint with U.S. Attorney Preet Bharara’s criminal division against Scott Levenson and The Advance Group consulting firm, which came under deep scrutiny during the mayoral campaign. (Federal Complaint Filed Against The Advance Group for Election Work * Politicker)
  3. Former New York City Comptroller and failed mayoral candidate John Liu has filed a federal lawsuit against the city and its Campaign Finance Board. He says the board unfairly crippled his campaign by denying him matching funds in last year's race for mayor. (Ex-NYC mayor hopeful sues Campaign Finance Board * AP/The San Francisco Chronicle)


Emma Wolfe

  • RELATED : Roger Bennett Adler, a special prosecutor investigating the Working Families Party's corrupt relationship with Data & Field Services, a corporation formed by the left-leaning party to provide its candidates with get-out-the-vote staffing and expertise at possibly illegal discounts, has sought an interview with one of Mayor Bill de Blasio's highest-ranking aides, Emma Wolfe, people familiar with the matter said. Data & Field Services, a corporation formed by the left-leaning party to provide its candidates with get-out-the-vote staffing and expertise. Mr. de Blasio was elected in 2009 to become the city's public advocate thanks to, in part, the deeply discounted services of Data & Field. (Prosecutor in Working Families Corruption Case Seeks Interview of de Blasio Aide, Emma Wolfe * The Wall Street Journal)

The impact of the never-ending corruptive influence of money and lobbyists in politics : Has it come back to bite Mayor Bill de Blasio in the ass ?

To continue the mayor's plan to extend his influence across New York City, his administration has installed the lobbying and consulting firm of Berlin Rosen, political operatives who worked on the mayor's campaign, in the media relations role of the mayor's universal pre-kinder initiative. Berlin Rosen will be able to "control" the universal pre-kinder messaging for the mayor this way. Berlin Rosen also serves as consultants to a coalition of major police reform groups, Communities United for Police Reform. The latter allows Berlin Rosen to control the messaging coming from one of the mayor's most politically sensitive quarters : police reform activists. Tampering down police reform activists is all the more important to the mayor, even as the NYPD continues to become embroiled in more racially-profiled controversies. It was reported that another political insider and lobbying firm, Pitta Bishop, helped Council Speaker Mark-Viverito with City Council staffing, and now Pitta Bishop, like The Advance Group, are being paid to lobby the same Council speaker they helped to install by gaming the city’s and state’s campaign finance system. Left out in the lurch as a consequence of the these political machinations are voters, who will have no say in what the messaging will be that comes out of the universal pre-kinder or the police reform movements that are now controlled by the political operatives loyal to the mayor and to the Council speaker.

But the mayor's reliance on outside astroturf groups that double as political operatives for his municipal agenda has its price : his political opponents also have at their disposal the same tactics, and so it was that when Mayor de Blasio sought to place restrictions on the growth of charter schools in New York City, his political opponents organized their own public relations campaign. Buying up TV ad time to broadcast political attack ads, an innocuous-sounding, pro-charter school group named Families for Excellent Schools portrayed Mayor de Blasio as deaf to the grassroots needs of the community, a campaign eerily similar to the one used by NYC Is Not For Sale against Mayor de Blasio's former political nemesis, former City Council Speaker Christine Quinn. Whereas Families for Excellent Schools is structured as two entities : Families for Excellent Schools, Inc., a 501(c)(3) entity and Families for Excellent Schools-Advocacy, a 501(c)(4) entity, NYC Is Not For Sale was set up as a Super PAC. Mayor de Blasio and his supporters decried the Families for Excellent Schools' TV attack ads just like former Council Speaker Quinn had decried the NYC Is Not For Sale's TV attack ads. Confronted last year about the NYC Is Not For Sale campaign, then candidate de Blasio initially defended NYC Is Not For Sale's attack ads, saying, "People decided to speak out, and that's their legal right. But the fact is in our system, everything can and will be disclosed, and that's what the people require," although, contrary to then candidate de Blasio, the Super PAC got into trouble for failing to fully disclose its activities, as "the people require." At the time, Mr. de Blasio added that he'd be open to later reforming campaign finance laws (presumably after NYC Is Not For Sale sank former Speaker Quinn's mayoral campaign). "The important thing is to respect the fact that we may not like the way the law is, but it's the law. I certainly will put energy going forward into trying to further reform the campaign finance system, but so long as the law is the law, people will make choices within it. That is their right, but I will certainly never ask anyone to engage in such behavior." The Campaign Finance Board should be reviewing whether the de Blasio campaign coordinated any activities with the NYC Is Not For Sale Super PAC, but it’s not clear if any campaign finance authority would regulate or restrict how the mayor appears to coordinate official policy with the 501(c)(4) entity that has each of lobbied for an enactment of a universal pre-kinder program for New York City and refused to disclose its contibutors and expenditures, as "the people require."

But we saw this week a news report that one of the mayor's political supporters, New York Communities for Change, opted out of a multiple plaintiff lawsuit against the spread of charter schools. New York Communities for Change, which appears to be structured as two separate entities, New York Communities for Change, Inc., a 501(c)(4) entity, and The New York Communities Organizing Fund, Inc., as a 501(c)(3), appears to take political cues from City Hall. After it became clear that Mayor de Blasio was going to support charter schools after he initially communicated that he was going to oppose their spread, New York Communities for Change decided to pull out of the lawsuit in order to stay on the same side on the issue as Mayor de Blasio. But what the charter school debacle showed was that Eva Moskowitz, the charter school administrator who helped to lead the $5 million charter school attack ads on the mayor, was able to hurt the mayor's political poll favorability ratings with her TV attack ads. A recent poll showed that only 39% of poll respondents had a favorable view of Mayor de Blasio's performance. So long as Super PAC's, independent expenditure groups, 501(c)(3) community groups, or 501(c)(4) political entities can mount million-dollar TV attack ads and city and state campaign finance regulators abdicate their responsibilities, public policy will continue to fall victim to big money donors, special interests, and lobbyists. So long as the mayor does nothing about reforming the corruptive influence of big business donors, special interests, and lobbyists in municipal politics, he's going to have to endure being the focus of political attack ads from his wealthy, big business opponents. What will it take for the mayor to follow through on his campaign finance reform promise ? Maybe his approval poll numbers need to sink below 30% ? I'm sure that there are many lobbyists and big business interests in New York City, who'd like to take credit for causing the mayor's poll numbers to sink that low. So long as the law is the law, the law appears to favor more campaign corruption.

Sunday, May 4, 2014

FBI agents seeking to determine if NY-CLASS donors hid Super PAC donations in coordinated effort to influence mayoral election

Federal Investigation Of Campaign Finance Scandal Looks At Coordinated Super PAC Donations

The NYC Is Not for Sale Super PAC TV attack blitz last year against former Council Speaker Christine Quinn brought to the fore years of grassroots discontent and organizing against Speaker Quinn. But FBI agents are investigating whether the hundreds of thousands of Super PAC expenditures were being coordinated behind the scenes by the de Blasio campaign or its surrogates, The New York Daily News reported.

Christine Quinn Bill de Blasio NY-CLASS FBI Investigation Campaign Finance Scandal photo 2014-05-04NY-CLASSFBITheNewYorkDailyNewsScreenShot_zpsd9803b1a.png

According to federal law, it is illegal for Super PAC's to coordinate their efforts with the official campaigns of political candidates. But on May 21, 2013, the attorney Jay Eisenhofer, who was Mayor de Blasio's largest campaign bundler, gave $50,000 to NY-CLASS, the animal rights group leading the charge to ban horse-drawn carriage. Ten days later, on May 31, NY-CLASS gave an equal amount -- $50,000, to the NYC Is Not For Sale Super PAC. On June 1, NY-CLASS received another large donation, this time for $175,000. It came from UNITE HERE!-- a labor union formerly headed by John Wilhelm, the mayor's cousin. Two days after that, on June 3, NY-CLASS sent the same amount, $175,000, to the NYC Is Not For Sale Super PAC, The New York Daily News reported.

If Mr. Eisenhofer and UNITE HERE! contributed directly to the NYC Is Not For Sale Super PAC, their involvement would have been made public within weeks because of campaign finance disclosure rules, but because they funneled their contributions through NY-CLASS, Mr. Wilhelm and Mr. Eisenhofer were cloaked in anonymity for months. The trigger for NY-CLASS to disclose their donors did not take place until NY-CLASS began its own campaign expenditures, an event that occurred on Sept. 7, three days before the Sept. 10 mayoral primary, The New York Daily News reported. NY-CLASS finally disclosed the contributions on Sept. 17, 10 days after the primary. The coordinated campaign contributions were first reported by Crain’s New York Business.

Confronted last year about the NYC Is Not For Sale campaign, then candidate de Blasio initially defended NYC Is Not For Sale's attack ads, saying, "People decided to speak out, and that's their legal right. But the fact is in our system, everything can and will be disclosed, and that's what the people require," although, contrary to then candidate de Blasio, the Super PAC got into trouble for failing to fully disclose its activities, as "the people require." At the time, Mr. de Blasio added that he'd be open to later reforming campaign finance laws (presumably after NYC Is Not For Sale sank former Speaker Quinn's mayoral campaign). "The important thing is to respect the fact that we may not like the way the law is, but it's the law. I certainly will put energy going forward into trying to further reform the campaign finance system, but so long as the law is the law, people will make choices within it. That is their right, but I will certainly never ask anyone to engage in such behavior." But so far, the mayor has betrayed his campaign promise to reform the loose campaign finance laws that allow Super PAC's to game elections. Furthermore, former Speaker Quinn has appeared to be milking the NY-CLASS scandal to portray herself as a victim of shady campaign finances ; meanwhile, she has a long record of political corruption.

If Mayor de Blasio was a true progressive, he would under take real reforms, like banning all private campaign donations in municipal elections, ending the appointment of municipal campaign finance regulators by politicians, and instituting newer, tougher regulations of campaign consultants/lobbyists. But perhaps Mayor de Blasio needs to protect the status quo of the broken campaign system. Judging by his 2013 campaign strategy, his 2017 reëlection campaign may be predicated on such.

Separate from violating campaign finance laws, the roles of NYC Is Not For Sale, NY-CLASS, and the lobbying firm advising them both -- The Advance Group -- had damaging effects on the opportunity for reform in a post-Quinn municipal government. Because of the independent campaign expenditures that nearly totaled $2 million, the influence of NY-CLASS perverted the ability of other issue reformers from being taken seriously by the media. Witness how the media accepted the controversial appointment of William Bratton as police commissioner, even though he still supports unconstitutional tactics, such as stop-and-frisk and the broken windows theory of policing, which unfairly targets low-income communities and people of color -- but does nothing to combat the white collar crimes by political operatives or by Wall Street. Further, NY-CLASS misappropriated the grassroots work by reform activists, including tenants' rights activists like John Fisher, police reform activists, QUILTBAG civil rights activists, and St. Vincent's Hospital activists, who each had separately and collectively spent years organizing to vote the former Council Speaker Quinn out of office. There was even a serialized book, recounting former Council Speaker Quinn's long record of community and political betrayals.

Casting a further pall on Mayor de Blasio's young administration is the outsized influence of lobbyists in City Hall, coordinating 501(c)(4) political campaign spending by loyal political operatives for his universal pre-kinder initiative with City Hall, his failure to reform the city's campaign finance system, and the reluctance by his administration to answer a FOIL request for records pertaining to possible obstruction of justice in the mayor's efforts to bust one of his campaign supports out of jail.

Sunday, April 27, 2014

The Nexus of Campaign Donations, Super PAC's, and Legislation : de Blasio's Mayoral Race and the Delayed Horse-Drawn Carriage Ban [UPDATED]

3 Back-to-Back Days of Sordid Coverage in The New York Daily News


SPECIAL NEWS UPDATE: SUN, 27 APR 2014, 08:00 AM
Christine Quinn FBI Investigation de Blasio NY-CLASS Scott Levenson photo 2014-04-27ChristineQuinnFBIInvestigationdeBlasioNY-CLASSScottLevenson_zps2fb7d5ad.png

The FBI questioned ex-Council Speaker Christine Quinn in its probe of alleged carriage horse conniving during last year’s mayoral race, The New York Daily News has learned. (FBI asks Christine Quinn about vicious attack ads launches by animal rights group, probes de Blasio's flip-flop on carriage ban as inquiry widens. * The New York Daily News)


SPECIAL NEWS UPDATE: FRI, 25 APR 2014, 11:30 PM
NY-CLASS Bill de Blasio The Advance Group John Wilhelm FBI Campaign Corruption Investigation photo 2014-04-25FBIInvestigationSpreadingNYCLASSdeBlasioCousin_zps7160dd53.png

FBI agents have been questioning people about each of the pledge then mayoral candidate Bill de Blasio made in March 2013 and the ads launched the following month by animal rights activists attacking former Council Speaker Christine Quinn (far right), The New York Daily News is reporting, adding that FBI agents also appear interested in a $175,000 contribution to the animal rights group NY-CLASS from a union tied to de Blasio's cousin, labor leader John Wilhelm (center). (FBI investigation of mayoral race includes Bill de Blasio's pledge to ban carriage horses * The New York Daily News)


SPECIAL NEWS UPDATE: FRI, 25 APR 2014, 09:50 AM
Scott Levenson NY-CLASS Christine Quinn Bill de Blasio FBI Investigation into Campaign Corruption photo 2014-04-25TheNewYorkDailyNewsFBIReport_zps189d95ac.png

In the past few weeks, FBI agents have been asking questions about the campaign by the animal rights group NY-CLASS to strong arm former Council Speaker Christine Quinn (center) to support a ban on the iconic horse-drawn carriages, two sources familiar with the matter told The New York Daily News. The horse lobbyists in question include Scott Levenson, and they are linked to Mayor Bill de Blasio (inset). This isn't Mr. Levenson's first time in the crosshairs of a serious political corruption investigation. Five years ago, Mr. Levenson was an official of ACORN, a community group that was charged with voter registration fraud. (FBI investigating claim that Christine Quinn was threatened by Scott Levenson for refusing to support carriage horse ban during the mayoral race * The New York Daily News)


PUBLISHED : WED, 23 APR 2014, 11:00 AM
UPDATED : TUES, 29 APR 2014, 09:35 AM

On Richard French Live, Andrew Whitman, Dominic Carter, Jeanne Zaino, and former Rep. Chris Shays engaged in a round table discussion about the controversial role of a Super PAC in last year's mayoral election that has cast a lingering shadow in the current discussions on a delayed proposed ban of horse-drawn carriages in New York City.

What is truly delaying the horse-drawn carriage ban : is it the lack of a draft legislative bill, or is it the federal definition of bribery ?

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Two weeks ago, Mayor Bill de Blasio announced that his planned ban of the horse carriage industry in New York City has been delayed due to unforeseen circumstances, but the circumstances he identified did not include the investigation into the lobbyist Scott Levenson and his lobbying firm, The Advance Group.

The Advance Group is at the center of an investigation by city campaign finance regulators over the circuitous flow of campaign cash between Super PAC's and official campaigns administered by The Advance Group. But many government reform activists do not have confidence in the city's campaign finance regulatory authority, the Campaign Finance Board. The Campaign Finance Board is governed by a Board that routinely makes politically-motivated rulings. For example, last year former Council Speaker Christine Quinn returned what were believed to be $25,000 in straw donations connected to the corruption case of William Rapfogel, and just last week the de Blasio campaign offered to return illegal straw campaign donations -- an option the Campaign Finance Board never gave Mr. de Blasio's challenger, former city Comptroller John Liu, over the same infraction. Few reform activists believe that the Campaign Finance Board's chair, Rose Gill Hearn, who let the massive CityTime fraud scandal exceed $600 million on her watch as head of the city's Department of Investigation, is capable of carrying out thorough corruption investigations of any kind. Cementing the impression that the city campaign finance regulatory authority is incapable of investigating possible campaign corruption at City Hall is the fact that the authority's board is appointed by the mayor and the City Council speaker. Consequently, a blogger filed a civilian crime report with the U.S. Attorney's Office, asking federal prosecutors to investigate the electioneering activities of The Advance Group for possible federal crimes. Mr. Levenson has close ties to both the mayor and to the City Council speaker, and Mr. Levenson administered a million dollar Super PAC to defeat former Council Speaker Christine Quinn's mayoral campaign at the same time when the Super PAC's donors were seen to be closely allied with Mr. de Blasio's mayoral campaign. It is against federal law for Super PAC's to coordinate their independent expenditures with the political campaigns of candidates, but The New York Daily News reported this week that last summer two of Mr. de Blasio's top financial supporters contributed a total of $225,000 to NY-CLASS -- on the same day.

John Wilhelm, cousin to Bill de Blasio photo JohnWilhelm_zps25ae64d5.jpg

"One of the givers was his cousin, John Wilhelm, then head of the union group UNITE HERE!, which wrote out a check for $175,000 to NYCLASS — the biggest contribution NYCLASS had ever received. The other was Jay Eisenhoffer, an attorney. Wilhelm and Eisenhoffer both acted as 'intermediaries' for de Blasio’s campaign, collecting $165,000 for him, records show," The New York Daily News reported.

melissa mark viverito photo: New York City Council Speaker Melissa Mark-Viverito MelissaMark-Viverito-Frown-mmv2e-1-web_zps61f81731.jpg

Equally troubling for Mr. Levenson and his lobbying firm is that they provided free lobbying services for Councilmember Melissa Mark-Viverito's speakership campaign at the same time when Mr. Levenson, along with his Super PAC's and their donors, were pressing for the city to enact a horse-drawn carriage ban. Under federal law, if a lobbyist pays money or makes a gift to an elected official and asks for a favor of the elected official, that's enough to prove a bribe has been transacted. On or about the time when The Advance Group was advising Councilmember Mark-Viverito on her speakership campaign, Councilmember Mark-Viverito established a campaign finance account with the state campaign finance regulatory authority, the Board of Elections, in betrayal of the spirit of campaign finance laws which act to minimize the corruptive role of money in politics. Prior to opening the Board of Elections account, Councilmember Mark-Viverito had already drawn down an entire fundraising cycle of regulated campaign contributions, subjects to fundraising caps, spending limits, and public matching dollar eligibility, in order to win her reëlection to the City Council. Her opening of a second campaign account through the Board of Elections was unprecedented. No law was changed to allow Councilmember Mark-Viverito to establish her Council speakership campaign finance account with the Board of Elections, and it is believed that her predecessor, former Council Speaker Christine Quinn, as corrupt as many activists believed Ms. Quinn to be, never flagrantly violated the spirit of campaign finance laws to this same extreme degree. Moreover, the free lobbying services provided by The Advance Group to Councilmember Mark-Viverito's speakership campaign were never declared as in-kind contributions to the Campaign Finance Board or to the Board of Elections, even though the law requires that donations of services or other gifts to campaign committees must be declared and disclosed. Perhaps to further deceive campaign finance regulators, Councilmember Mark-Viverito publicly announced that she had fired The Advance Group from her speakership campaign after The Advance Group became engulfed in a series of corruption investigations by bloggers and mainstream media, but the truth is that The Advance Group kept working on her speakership campaign, contrary to Councilmember Mark-Viverito's statements to the press. NY-CLASS has a long history with Councilmember Mark-Viverito, stretching back to at least 2010, when she co-sponsored legislation pushed by NY-CLASS to phase out the horse-drawn carriages.

Now that The Advance Group faces at the prospect of more than one investigation into its questionable electioneering activities, the mayor and the Council speaker have delayed the enactment of the horse-drawn carriage ban in a political move some consider to be a possible cover-up of the quid pro quo nature of the crucial roles that The Advance Group's Super PAC monies and its free lobbying services played in the election of the mayor and the selection of the Council speaker, respectively.

To manufacture a delay in the horse carriage ban bill, Councilmember Daniel Dromm has been nominally tasked with the bill's drafting, striking back at Queens Democratic Party officials with whom he broke during the Council speaker race

Queens Democrats have historically supported the horse carriage industry, at least since the time when Thomas Manton was chair of the Queens Democratic Party. After Councilmember Daniel Dromm's recent break with Queens County Democrats during the Council speaker race, the councilmember now very publicly opposes the horse carriage industry -- and ranking Queens Democratic Party officials.

Word on the street for many years was that the reason that former City Council Speaker Christine Quinn wouldn't support a ban on horse-drawn carriages was because the former chair of the Queens County Democratic Party, former Rep. Thomas Manton, was allied with the horse carriage drivers, who are unionized, making them a natural constituency group.

After Mr. Manton passed away, Rep. Joseph Crowley, became chair of the Queens County Democratic Party. Councilmember Dromm was elected to his post in 2009 as an insurgent candidate without the institutional support of the county Democrats. Recently, Councilmember Dromm and his close colleague, Councilmember James Van Bramer, turned their backs on the Council speaker candidate, Councilmember Daniel Garodnick, who had the support of their former fellow Queens County Democrats. Therefore, Councilmember Dromm's break with his Democratic Party peers in respect of the proposed horse-drawn carriage ban is adding to the bad blood created during the schism over the recent Council speaker race, perhaps indication of a lingering resentment stemming from his unsupported 2009 race for City Council. All this unnecessary political agita.

Steve Nislick NYCLASS Edison Properties LLC photo Steve-Nislick-NYCLASS_zps7cee6296.jpg

Stalling the horse carriage ban bill gives the mayor a political cover story to explain his backpedaling.

A few critics of the mayor's promise to ban the horse-drawn carriage industry point to the special interests that Edison Properties LLC and its former chief executive officer, Steve Nislick, have in emptying the land being used as horse stables by the carriage trade.

At the other end of this fight are animal rights activists, who are trying to change the hearts and minds of the public about animal rights. Animal rights activists make the noble argument that horses have no place in Midtown Manhattan traffic, given the many examples of traffic accidents, injuries, and even deaths caused by what they see as inhumane conditions.

But the real issue of the delay in the ban, the use of the drafting of a bill as a stalling tactic, and the mayor's changing of the timeline to ban the horse-drawn carriages from his first day in office to sometime later this year comes down to investigations of a campaign consulting and lobbying group at the center of the issue's swift rise to prominence.

The Advance Group, headed by the lobbyist Scott Levenson, administered a Super PAC largely funded by donors loyal to Mr. de Blasio to defeat his chief challenger in last year's mayoral race, former City Council Speaker Christine Quinn. The Super PAC donors also included advocates pressing for the horse-drawn carriage ban. Mr. Levenson also advised the 501(c)(4) non-profit animal rights group named New Yorkers for Clean, Livable and Safe Streets, or NY-CLASS, which was conveniently founded by Mr. Nislick, the real estate developer. Mr. Levenson also authorized his firm to provide free lobbying services to Councilmember Melissa Mark-Viverito in her successful bid to be selected as the current City Council speaker. Any legislative ban, once Councilmember Dromm has finished drafting the bill, must have Speaker Mark-Viverito's support. Thanks to Mr. Levenson's crucial support during her speakership campaign, Speaker Mark-Viverito is now indebted to The Advance Group's legislative asks. To cement The Advance Group's role at the nexus for campaign donations, Super PAC spending, and lobbying services that benefitted the mayor and the Council speaker, The Advance Group also is a paid lobbyist to Edison Properties LLC. Edison Properties LLC stands to benefit from banning the horse-drawn carriage trade from the closure of the carriage horses' stables, which would free up that space, which Edison Properties LLC covets, for possible zone-busting real estate development. The Advance Group is getting paid or has positioned itself to benefit from each side of the mayor's promise to ban the horse-drawn carriage trade. And, as if to compensate for The Advance Group's undeclared in-kind contribution of free lobbying services to Councilmember Mark-Viverito's Council speakership race, Edison Properties LLC paid The Advance Group $15,000 at the start of this year, potentially coinciding with the end of Councilmember Mark-Viverito's successful speakership electioneering campaign.

This wouldn't be the first time that allegations involving The Advance Group using a third-party vehicle to structure a payment stream that has, at times, over-lapped with services The Advance Group was providing to a political campaign. The Advance Group became implicated in questionable electioneering work on behalf of City Council Candidate Igor Oberman. "Last April, records show, Mr. Oberman signed off on a six-month, $45,000 lobbying contract with the Advance Group for the portion of the massive Coney Island co-op he runs a part of, Trump Village, at the same time the Advance Group was running Mr. Oberman's political campaign, separately earning $73,000," reported Crain's Insider muckraking journalist Chris Bragg. Mr. Bragg also uncovered The Advance Group's use of a fictitious political consulting firm to help obscure its backroom Super PAC political machinations during last year's municipal elections.

Last year, The New York Daily News examined how politicians and lobbyists are "often connected at the hip" as a consequence of campaign consultants doubling as lobbyists, a troubling situation that is "raising alarms for ethics watchdogs." Among the two-timing campaign consultants/lobbyists singled-out in the article was The Advance Group.

Against the backdrop of The Advance Group proverbially "jamming its blood funnel into anything that smells like money," to borrow Matt Tiabbi's famous phrase, is the crackdown on political corruption being waged by federal prosecutors in New York. Although city and state laws have not kept up with the corruptive role of campaign consultants doubling as lobbyists, federal laws make it easy to prosecute criminal cases against corrupt lobbyists.

Blll de Blasio Scott Levenson The Advance Group NY-CLASS Horse Drawn Carriage Ban Super PAC Pay to Play Bribe Corruption photo bill-de-blasio-Scott-Levenson-The-Advance-Group-NY-CLASS-Super-PAC-horse-drawn-carriage-ban-article-bramhall-0423_zps018b06a4.jpg

Based on the federal definition of a bribe, a corrupt lobbyist doesn’t have to get payback to be guilty. A corrupt lobbyist just has to pay money (like, perhaps, steer donations or make a valuable gift, like the undeclared free provision of lobbying services) to a political candidate or an elected official, and then make an ask for a legislative favour for the lobbyist's client. That’s it : that's sufficient to make the corrupt lobbyist guilty.

No matter how long the mayor or the City Council delay the legislative ban on horse-drawn carriages, or whether the ban ever comes to fruition, it may not have any impact on a possible federal bribery charge, if that is what federal prosecutors find what happened between The Advance Group in respect of the mayor's promise to ban the horse-drawn carriage trade. Perhaps that is why one saw the Editorial Board of The New York Times trying to persuade the mayor earlier this month into abandoning the horse-drawn carriage ban, because the editors suspect that legal troubles may lay ahead.

Since city and state prosecutors are known to rarely, if ever, prosecute public corruption cases involving lobbyists and other corrupt political insiders, and with the notable disbanding of the Moreland Commission, the loose city and state laws that permit shady lobbying activities will not govern any federal review of possibly illegal campaign finance and bribery activities that may apply to The Advance Group's role in the drive to ban carriage horses, no matter how noble the cause may be to animal rights activists.

HORSE POLITICS -- “Mayor de Blasio's position on horse carriages switched as the cash rolled in” by News’ Greg Smith: De Blasio switched positions on the issue, first expressing doubt about a potential ban and later embracing it. Along the way, he pocketed $45,000 in a stream of campaign checks from the anti-carriage crowd, a Daily News review found.

“He was also the beneficiary of a highly choreographed media blitz against his chief rival for City Hall — former Council Speaker Christine Quinn — an effort funded to a great extent by the anti-carriage crowd. … De Blasio’s spokesman, Phil Walzak, did not respond Tuesday to questions about the donations. …

“Checks from anti-carriage supporters like [Wendy] Neu, NYCLASS co-founder Stephen Nislick and others continued through 2009 and into 2010. Meanwhile, de Blasio — then public advocate — stayed neutral when dueling laws to either reform or simply ban the carriages popped up in the City Council. …

“By January 2011, NYCLASS supporters had written $20,400 in checks to de Blasio. One month later, he came around for the first time, declaring support for an outright carriage ban in a Huffington Post story.” (Mayor de Blasio's position on horse carriages switched as the cash rolled in * The New York Daily News with Summary by Capital New York)

The horse-drawn carriage ban is about more than just a corrupt real estate deal for the horse stables ; it's emblematic of a broken political system that keeps giving permanent government insider lobbyists access to elected officials.

The common denominator to the public corruption cases being prosecuted by the U.S. Attorney's Office are the corrupt political operatives that grease the wheels of government.

Equally important, it seems, is another of the mayor's broken campaign promises : to reform the municipal campaign finance system, which The New York Times recently described as open to manipulation.

The corruptive influence of Super PAC money in the last municipal election cycle is no more different than the role that big money donations have on government policy.

Ironically, one of the many TV attack ads that the NYC Is Not For Sale Super PAC administered by Mr. Levenson broadcast about former Speaker Quinn focused on the $30,000 in campaign contributions she received from the family that controls the Rudin Management Company, a large New York City real estate developer.

When NYC Is Not For Sale asked voters how could they support Speaker Quinn's mayoral campaign for allowing the role of big money donors to influence the luxury condo development that is replacing St. Vincent's Hospital, it could very well ask a version of the same question of the role of the Super PAC money influencing Mayor de Blasio's policy on the proposed horse-drawn carriage ban.

Christine Quinn,Rudin Family,Rudin Management,Mayor 2013 NYC,Campaign Donations,Real Estate Deals,Hospital Closings,St. Vincent's Hospital

In the wake of the three days of back-to-back reporting by The New York Daily News, the mayor keeps denying he had any role in coordinating the corrupt Super PAC spending. Confronted last year about the NYC Is Not For Sale campaign, then candidate de Blasio initially defended NYC Is Not For Sale's attack ads, saying, "People decided to speak out, and that's their legal right. But the fact is in our system, everything can and will be disclosed, and that's what the people require," although, contrary to then candidate de Blasio, the Super PAC got into trouble for failing to fully disclose its activities, as "the people require." At the time, Mr. de Blasio added that he'd be open to later reforming campaign finance laws (presumably after NYC Is Not For Sale sank former Speaker Quinn's mayoral campaign). "The important thing is to respect the fact that we may not like the way the law is, but it's the law. I certainly will put energy going forward into trying to further reform the campaign finance system, but so long as the law is the law, people will make choices within it. That is their right, but I will certainly never ask anyone to engage in such behavior." But so far, the mayor has betrayed his campaign promise to reform the loose campaign finance laws that allow Super PAC's to game elections. Furthermore, former Speaker Quinn has appeared to be milking the NY-CLASS scandal to portray herself as a victim of shady campaign finances ; meanwhile, she has a long record of political corruption.

How can we clean up our election process from the scourge of big-money special interest donors, corrupt Super PAC's, and double-dealing lobbyists ?

Breaking: Vermont Passes JRS 27 To Overturn Citizens United & End Unlimited Campaign Funding photo vermont-money-out-of-politics_zps0c8276b8.jpg

The only answer to clean elections is to ban all private campaign contributions, to fully fund elections with public money, and to institute stricter regulations on campaign consultants and lobbyists. If Mayor de Blasio were a true progressive, he would ban all private campaign contributions in New York City elections as a model for what a new era of real government reform looks like, setting a pattern that could be spread to the rest of the nation. Learn more about why advocates for "clean money" elections want to ban private donations.

While an outright overturning of the corruptive role of Citizens United may be technically impossible to create at a municipal level, there are other actions that City Hall can still nonetheless undertake. Municipal lawmakers and the mayor can repeal the law passed by former Council Speaker Christine Quinn, which weakened campaign finance regulations. There are other municipal steps that can be taken to roll back the corruptive influence that lobbyists and big business and special interest money have on local elections : (i) reforming the do-nothing Campaign Finance Board ; (ii) pressuring progressives to enforce transparency ; (iii) improving Speakership electioneering reporting to make it more difficult for candidates to jurisdiction shop to obfuscate disclosure ; (iv) ending loopholes that allow subcontractor operatives to skirt disclosure requirements ; and (v) ending the provision of free campaign services, including for the Speakership. There are still yet other local reforms that the city can enact. Another important reform that the mayor and the City Council can swiftly enact is to close the corrupt "messaging" cloaking loophole for lobbyists.

One of the principal gains made during the Progressive Era was the spread of voter referenda in state governments across the United States to counteract the outsized influence of corporations on determining government policy. Referenda gave voters a direct say in specific and important government issues, and because corporations now exert so much power over government, people should be given a direct say in corporate governance. The mayor and his municipal legislators should consider enacting a law requiring all corporations domiciled or doing business in New York City, especially those doing business with the governments, to enact reforms to their operative agreements or corporate charters that incorporate "public service" and "socially responsible investing" as business purposes and to create a public, binding stakeholder resolution process to allow city stakeholders to enforce the corporation’s "public service" and "socially responsible investing" business purposes in the way the corporation does business. A stakeholder resolution process would give voters an access point to exert public pressure on corporations to enforce compliance with public ethics. This kind of scrutiny would end the flimsy self-regulation of corporate social responsibility and create public involvement to compel true social responsibility as an influencing purpose on the governance of corporations. Other reforms that the mayor and municipal legislators could consider would be to pressure prosecutors to enforce anti-trust laws against corporations that exert monopolistic-like powers, most especially the typical special interest corporations like public and private money center banks, insurance companies, and real estate developers based right here in New York City. If Mayor de Blasio and the City Council have become too corrupted by their teams of campaign consultants and lobbyists-operatives to enact these kinds of legislative reforms, perhaps the U.S. Attorney's Office can "defeat" the culture of corruption by changing corporate culture by stipulating to these and other novel kinds of reform measures into consented court orders, settlement agreements, deferred prosecution agreements, or other plea agreements with criminally corrupt corporations. Since City Hall and the City Council have become corrupted by the influence of big money donors and corrupt lobbyists, the U.S. Attorney's Office can and should take the lead, through its court cases, to help right our democracy. The U.S. Department of Justice, which oversees the teams of federal prosecutors at the U.S. Attorney's Office is far from being free from political influence. Witness how the DOJ is stalling on a very important Freedom of Information Act Request pertaining to the wrongful targeting of activists for federal prosecution, and other examples of how President Barack Obama has politicized the DOJ. Even within this imperfect system, hopefully a few brave leaders like Preet Bharara and Loretta Lynch, the top federal prosecutors for Manhattan and Brooklyn, respectively, can help reform the DOJ -- and our broader government.

Voters can also learn more about campaign finance reform activist Howie Hawkins' gubernatorial campaign for ideas of what it would look like to reform our corrupt campaign finance system.


QUESTIONING THE NEW YORK CITY CAMPAIGN FINANCE BOARD

With John Liu's lawsuit against New York City over conflicted city campaign finance regulators, this makes three federal referrals of elections violations, forcing Mayor de Blasio to lawyer-up, recruit special inside election counsel.

After a wave of federal complaints that have been lodged over electioneering violations in last year's municipal elections, Mayor Bill de Blasio has hired a special legal advisor specializing in election law.

Since Mayor de Blasio and City Council Council Speaker Melissa Mark-Viverito, and/or their political operatives, are entangled in some of these federal complaints, it should come as no surprise that Mayor de Blasio is now maneuvering to use his public office to defend himself against allegations of wrong-doing that took place during the electioneering of last year's municipal elections.

The three federal complaints lodged following last year's municipal elections :

  1. GOP consultant E. O'Brien Murray argued to the State Department that Patrick Gaspard, a former top White House aide with a deep history in Gotham politics, violated the federal Hatch Act by getting involved in Mayor de Blasio's campaign -- and City Councilwoman Melissa Mark-Viverito's subsequent election as speaker -- while representing the U.S. in South Africa. (GOP Operative Files Hatch Act Complaint Against U.S. Ambassador Patrick Gaspard * The New York Daily News)
  2. Louis Flores, a local political gadfly who ran a blog and wrote a book criticizing Christine Quinn, has filed a complaint with U.S. Attorney Preet Bharara’s criminal division against Scott Levenson and The Advance Group consulting firm, which came under deep scrutiny during the mayoral campaign. (Federal Complaint Filed Against The Advance Group for Election Work * Politicker)
  3. Former New York City Comptroller and failed mayoral candidate John Liu has filed a federal lawsuit against the city and its Campaign Finance Board. He says the board unfairly crippled his campaign by denying him matching funds in last year's race for mayor. (Ex-NYC mayor hopeful sues Campaign Finance Board * AP/The San Francisco Chronicle)