Showing posts with label lobbyists. Show all posts
Showing posts with label lobbyists. Show all posts

Wednesday, April 30, 2014

Preet Bharara Expands Crackdown on Political Corruption, Empanels Grand Jury, Subpoenas JCOPE Complaints [UPDATED]

PUBLISHED : WED, 30 APR 2014, 09:51 PM
UPDATED : TUES, 05 MAY 2014, 10:30 AM

"Bharara’s broadening probe of pay-to-play Albany corruption is sure to send shockwaves through the state capital in an election year."

preet bharara photo: Preet Bharara - The Only Policeman In New York State Preet-Bharara-dbpix-henning-tmagArticle-NYTimes_zpsaf6e1719.jpg

Weeks after Preet Bharara, the U.S. Attorney for the Southern District of New York, took possession of the investigation files of the now defunct Moreland Commission, the corruption-fighting prosecutor has empaneled a grand jury that has now subpoenaed each of the complaints lodged with the state's ethics panel known as the Joint Commission on Public Ethics, or JCOPE, and the records from members of the aborted Moreland Commission.

Mr. Bharara's subpoena of the JCOPE complaints will give him a larger understanding of the corruption landscape across New York state. JCOPE has existed since 2011, and it was tasked with investigating ethics complaints of the state's executive and legislative branches. Against the JCOPE complaints, the federal prosecutor's office will be able to match, supplement, or cross-reference the aborted Moreland Commission investigations. And the fact that Mr. Bharara empaneled a grand jury means that federal prosecutors are seeking criminal indictments in possible connection with the aborted Moreland Commission corruption investigations. Whatever the USAO learns from the JCOPE complaints and commission member records may be the "icing on the cake," so to speak, to garnish other corruption evidence that federal prosecutors may have been able to independently gather from prior wiretaps, other investigations, and possible whistleblower-activists.

The U.S. Attorney's Office has been resoundingly criticized for the apparent free pass to Wall Street following the 2008 global financial crisis and recession. The media, notably PBS's Frontline, showed that the U.S. Department of Justice's Washington office, known as Main Justice, was compromised by officials, such as Lanny Breuer, who refused to prosecute top Wall Street executives. Even Attorney General Eric Holder, who oversees the DOJ and advises the USAO's district offices, created a scandal when he confirmed the Obama administration's aversion to prosecuting corrupt Wall Street executives, known colloquially as "too big to jail," validating a Frontline investigation and widespread public perception. Indeed, Main Justice appears to serve as a revolving door recruitment outpost for large, wealthy law firms representing corrupt Wall Street executives. For his part, Mr. Bharara has bemoaned the Washington budget cuts to the USAO that many government reform activists claim are intentionally made to curtail regulatory oversight and criminal prosecution of corruption, but some activists believe that Mr. Bharara never prosecuted Wall Street corruption stemming from the 2008 financial crisis and recession due to his close ties to Sen. Charles Schumer, who many see as enabling the corruption culture on Wall Street. Mr. Bharara's political career came to prominence when he served as chief counsel to Sen. Schumer, making the senator the prosecutor's "political daddy." Mr. Bharara has also carried out his own oppression against whistleblowers when he prosecuted Jeremy Hammond for exposing corruption by Strategic Forecasting, part of the DOJ's larger persecution of whistleblowers, including government whistleblowers. The DOJ was further seen to have become politicized under President Obama and Attorney General Holder, when the DOJ began to target journalists in an effort to undermine a free press whilst carrying out the government's vindictive prosecution of whistleblowers. Separately, the DOJ was shown to stall a Freedom of Information Act request seeking records about its vindictive prosecution of activists.

Locally, it is supposed to be the Manhattan district attorney, Cyrus Vance, who is supposed to oversee the criminal prosecution of political and corporate corruption. He works for the New York State attorney general, Eric Schneiderman. Both D.A. Vance and Mr. Schneiderman have pretty much abdicated corruption prosecution to Mr. Bharara. More so than the others, D.A. Vance is vulnerable to the political realities of how he can run for office. District attorneys in the five boroughs of New York run for office with the approval of the local county political organization. Since New York is overwhelmingly a Democratic Party enclave, the county Democratic Party chair of each borough must approve of each respective district attorney candidate running for office, meaning D.A. Vance would not dare sacrifice his political career by prosecuting political corruption of officials, operatives, or lobbyists loyal to the county political organization that approves of his candidacy. That is to say, D.A. Vance will not prosecute candidates for public office, who may be engaged in questionable electioneering activities and who run with approval of the Manhattan Democratic Party chair, otherwise he risks alienating himself from his own political supporters. Instead, D.A. Vance touts his prosecution record against activists, paralleling the DOJ's own suppression campaign against activists.

Mr. Bharara's crackdown on political corruption may be his way of being able to attack the special interest money and lobbyists of large corrupt corporations, at least as they intersect with government officials, one activist said. Plus, it allows him to restore his reputation for prosecutorial independence after his and others' failures at the USAO and the DOJ. It also separates Mr. Bharara from D.A. Vance's failure to prosecute corruption of either Wall Street or elected officials.

The increased prosecution of New York political corruption cases by Mr. Bharara is taking place during the run-up to this year's state-wide election cycle, and it follows a spectacular spree of federal political corruption arrests of officials from City Hall to Albany. With the added access to JCOPE complaints and commission member records to augment his trove of Moreland Commission investigation files, Mr. Bharara may now be poised to lead a historical renewal of government integrity, regardless of his motivation. For all of Mr. Bharara's imperfections, activists in New York have not pressed the Obama administration to reform the USAO and the DOJ. Mr. Bharara's like Batman in "The Dark Knight" : not the hero that Gotham needs, but, rather, the hero Gotham deserves.

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Tuesday, April 1, 2014

The Moreland Commission Were Supposed to Be 'Super Cops' -- April Fool !!!

To scuttle possibly devastating investigations into public corruption, Gov. Cuomo announced that he was closing his ethics commission

Was the Moreland Commission some kind of sick and twisted, do-nothing joke that is finally getting exposed on April Fool's Day ?

Some state legislators and good government groups speculated that Gov. Andrew Cuomo was embarrassed to have to endure the unwelcome distraction of multiple public corruption investigations during an election year, The New York Times is reporting.

One of the co-chairs of the Moreland Commission, a Long Island district attorney, Kathleen Rice, is mounting a fun for Congress. It's unknown, yet, how voters will react to her abdication of her public corruption investigation duties.

Is Long Island Prosecutor Kathleen Rice's Reputation Going Down The Toilet ?

Andrew Cuomo Kathleen Rice Maitre Karlsson photo andrew-cuomo-kathleen-rice-maitre-karlsson_zpsf2dca878.jpg

Critics question how deeply corruption panel co-chair Kathleen Rice would probe Sheldon Silver after campaign contributions.

State government officials are questioning how aggressively Gov. Cuomo's corruption panel would investigate Assembly Speaker Sheldon Silver, after the law firm that employed Silver gave nearly $300,000 in campaign donations to co-chair and Nassau County District Attorney Kathleen Rice. (The New York Daily News)* Governor’s Crusade Against Corruption Comes With Too Many Asterisks (NYTimes) * To Gut Independence of Moreland Commission, Cuomo appointed Kathleen Rice as co-chair. Rice had been Cuomo's favourite for Attorney General before Eric Schneiderman won the AG race. (Capital New York) * Cuomo's naming of Rice to co-chair of Moreland Commission was a way to cut out Schneiderman from Moreland investigation of political corruption.

Another district attorney co-chair of the Moreland Commission, Bill Fitzpatrick, said that the public was deluded into thinking that the members of the Moreland Commission were "super cops," even though that's exactly the role that the state laws provide that gave rise to the commission in the first place. Already, a backlash appears to be growing amongst good government groups and government reform activists, who claim that members of the Moreland Commission appeared to do nothing more than Gov. Cuomo's political bidding. For example, when the Moreland Commission threatened to issue subpoenas to political supporters of the governor, the governor was said by some to have obstructed their efforts.

Eleanor Randolph was disappointed that the Moreland Commission didn't do more to report on the pay-to-play corruption in New York politics.

Eleanor Randolph, appearing on The New York Times Close-Up on NY1 photo Eleanor-Randolph-The-New-York-Times-IMG_5319_zps42b52e22.jpg

Last December, Eleanor Randolph appeared in the roundtable segment of The New York Times Close-up on NY1, and she expressed annoyance that one of the Moreland Commission's reports skipped over so many details of public corruption.

It's a good thing that federal prosecutors, who are presently engaged in a crackdown on public corruption, don't agree to be disbanded during election years. Otherwise, voters would really be in trouble.

2014-04-01 Moreland Commission - Follow-Up E-Mail Re Pitta Bishop USAO

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Wednesday, November 27, 2013

Melissa Mark-Viverito, The Advance Group May Have Violated City Ethics Rules

Will The Conflict of Interest Board Investigate Mark-Viverito's Acceptance Of Unpaid Assistance From The Advance Group ?

Scott Levenson and Melissa Mark-Viverito photo Scott-Levenson-Melissa-Mark-Viverito_zps79ef0787.jpg

New York City Councilwoman Melissa Mark-Viverito may have violated city ethics rules by accepting unpaid assistance from the Advance Group, a lobbing firm, to further her candidacy for Council speaker, The New York Daily News reports (City Council Speaker candidate Melissa Mark-Viverito and her lobbying firm, The Advance Group, may have violated city ethics rules) .

"The Conflicts of Interest Board must investigate, and the Council must disqualify Mark-Viverito from consideration for so blatantly violating the rules. Elevating her to speaker would send the message that the Council is up for sale," wrote the Editorial Board of The New York Daily News. (No To Melissa Mark-Viverito)

But so far, nobody's asked whether The Parkside Group is working for free to provide any support to the pro-Big Business candidate, Mark Weprin, or whether Alison Hirsh, the 32BJ union lobbyist that was hired by Progressive Caucus of Councilmembers to promote Ms. Mark-Viverito, is being paid, or if Ms. Hirsh is working for free, too. Ms. Mark-Viverito is also receiving help from two other consultant-lobbyist firms, Bishop Pitta Del Giorno and the Mirram Group, Crains Insider reported. Indeed, Ms. Mark-Viverito opened a new campaign committee called "Viverito NY" on Election Day. Who is funding that campaign committee ? Who is receiving payments from that campaign committee ? (Friday wrap-up examines consultants in the speaker race, and more * Crains Insider)

Besides investigating possible violations of campaign finance law or conflicts of interest, this is a great time to update campaign finance laws.

Given that the violations involving the provision of free campaign services to elected officials is being referred to the Conflicts of Interest Board instead of to the Campaign Finance Board shows that campaign finance laws are not keeping up with the times. To roll back some of the worst impacts that Citizens United is having on the selection of the Council Speaker and on the rest of our municipal elections, we can begin by updating campaign finance laws by : (i) reforming the do-nothing Campaign Finance Board ; (ii) pressuring progressives to enforce transparency ; (iii) improving Speakership electioneering reporting ; (iv) ending subcontractor loopholes ; and (v) ending the provision of free campaign services, including for the Speakership.

If making reforms is seen as not enough, others, like Howie Hawkins, have suggested a fully-public campaign system.

The Growing Influence Of Lobbyists In Determining The Council Speaker, Other Investigations Against Scott Levenson

New York City’s county bosses face challenges from lobbyists over the election of the Council Speaker. (Despite Denials, De Blasio Team Met With Weprin and Mark Viverito About Speakership * City & State)

The flood of money into politics from Citizens United is creating a "clash of the titans" between the County Political Bosses and Big Business, on one side, and Lobbyists and Special Interest Money, on the other. With campaign finance law failing to keep up with the changes in money in politics, the voters are being kept in the dark about the true way that the speaker is selected. (NYC Council Speaker Race Campaign Finance Controversies * YouTube)

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Tuesday, November 12, 2013

Who is Paying the Advance Group to Lobby For Melissa Mark-Viverito ?

''If you can find a loophole, then the law is not doing what the law is supposed to be doing.'' -- Peter F. Vallone, former City Council speaker

Isn't it against Campaign Finance Board rules for politicians to receive political consulting services that are neither declared nor paid for ?

The Advance Group, one of the city’s leading political consulting firms, has been laboring behind-the-scenes for almost a month to assist Ms. Mark-Viverito.
(Advance Group Helping Melissa Mark-Viverito in Speaker’s Race * Politicker)		 SEIU 1199, the city’s powerful healthcare workers union says they are lobbying for one City Council speaker hopeful, Melissa Mark-Viverito.
(1199 Leads Effort Boosting Mark-Viverito * Politicker)

The Advance Group has been laboring behind-the-scenes for almost a month to assist Councilwoman Melissa Mark-Viverito in her quest to become the next speaker of the City Council, Ross Barkan is reporting on Politicker, adding, "When reached by Politicker earlier today, the firm’s president, Scott Levenson, confirmed he had been assisting Ms. Mark-Viverito, but declined to discuss any additional details. 'We’re just helping,' he said."

In 2001, The New York Times reported that it was against Campaign Finance Board rules for Alan Hevesi to receive free consulting services from Hank Morris.

photo hank-morris_zpsdc283853.jpg

As part of the deal, Mr. Hevesi offered to pay his chief political consultant, Hank Morris, an extra $240,000 for work leading up to the Democratic primary on Sept. 11. Mr. Hevesi's opponents had charged that he was circumventing the campaign finance spending cap by allowing Mr. Morris, a longtime friend, to work for free or provide his firm's help at a steep discount. (Comptroller Alan G. Hevesi struck a compromise with the Campaign Finance Board * The New York Times)

Peter F. Vallone, the City Council speaker in 2001 and an author of New York City's campaign finance law, told The New York Times, ''The whole point of the law was to make it a level playing field so that money doesn't determine the outcome. So if you can find a loophole, then the law is not doing what the law is supposed to be doing.'' (What's a Campaign Debt Between Friends ? * The New York Times)

Political consultants, who work to elect lawmakers, are turning around and lobbying them on behalf of private clients.

Dark Pool Politics - Lobbyists, Meetings, and Backroom Deals are Hidden - Bill de Blasio photo DarkRoomPoliticsSlideExport_zps8f346168.jpg

"A growing trend in the state capital is raising alarms for ethics watchdogs: political consultants who work to elect lawmakers, then turn around and lobby them on behalf of private clients. At least two dozen political consulting firms are also registered lobbyists with the state, according to an analysis done for the Daily News by the New York Public Interest Research Group," Kenneth Lovett reported in The New York Daily News, adding, "The Advance Group was paid $756,907 in political consulting fees the past two years while also lobbying. Firm president Scott Levenson said he doesn’t get special favors from pols his firm helped elect, but he doesn’t deny that his firm emphasizes its access to lawmakers when drumming up business."

“We’re a lobbying organization,” Mr. Levenson told Mr. Lovett. “One of the things we do is talk about our ability to have access.” Mr. Lovett concluded his report by stating that, "Levenson also noted that straight lobbying firms often bundle money from clients for candidates."

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Wednesday, October 16, 2013

The Parkside Group's Citizen's United Invisible Campaign Consultant/Lobbyist Operates in Dark Pools

Dark Pool Politics - Lobbyists, Meetings, and Backroom Deals are Hidden - Bill de Blasio photo DarkRoomPoliticsSlideExport_zps8f346168.jpg

NY's Corrupt Campaign Culture Enablers

The Parkside Group's Evan Stavisky is using the Supreme Court's Citizen United ruling to completely hide from the city and state campaign disclosure reporting reporting system. Despite being involved in over 50 campaigns this year, the Parkside name is not in the Campaign Finance Board or NYS Board of Elections campaign disclosure reporting files. How about that Moreland Commission ? Stavisky ran the so-called independent expenditure PSC Jobs4NY, which spent $10 million to elect council members and is now working with the Queens' Democratic organization and other PAC's to elect the next speaker. Last year, Parkside made $1.8 million in lobbying fees. Parkside also took in $2.77 million from Albany legislators' campaigns.

New York's Culture of Corruption is Caused By The Consultants Who Elect Politicians. Campaign Consultants/Lobbyists are often "connected at the hip,” said NYPIRG’s Bill Mahoney. What the NYPIRG worker was saying their is a secret bond between elected officials and those that run their campaigns. What NYPIRG has not looked at is the secret bonds between campaign consultants many of whom are also lobbyist. These secret bonds were not caused by the courts but by the state's weak campaign reporting requirements. Parkside which was paid over $2 million by the Democrat Senate Campaign Committee hires other consultants to do some of the work, but does not have to disclose who they are paying. The big money and lack of rules have developed a secret world of Dark Pool where campaign consultants make deals giving each other work and trade support for their lobbyists clients.

Campign Consultants Working On More Than One Side in the Same Time. This secret horse trading world has not only created a monopoly on who becomes a campaign consultant the money and power the chosen consultants are making and amassing has caused them to become sloppy arrogant as they go for the big money. Incredibly with the help of Citizens United they have found a way to work on more than one side in the same race. The advance group got paid $28,000 by gay city council candidate Yetta Kurland at the same time the firm worked secretly to promote her opponent Cory Johnson’s candidacy through an IE paid for by the UFT via a company called Strategic Consultants—apparently a dummy shell corporation set up to obscure the Advance Group’s double-dealing.True New is working on more examples of campaign consultants working together to game New York's election system and why the DAs, Moreland and AG is silent on the Advance Groups Corruption

Jobs4NY Parkside Helped Elected to the New Council : Margaret S Chin (1), ), Inez E Dickens (9), Andrew Cohen (11), Andrew King (12), Fernando Cabrera (14), Vanessa L Gibson (16), Paul A Vallone (19), Costa G Constantinides (22), Costa G Constantinides (22), Rory Lancman (24), Laurie Cumbo (35), Ritchie Torres (36), Rafael L Espinal, Jr. (37), Alan Maisel (46), Mark Treyger (47), John Mancuso (50)

How Come the Millions Spent By PACS are Not Included in the Lobbyists Tally. About $105 million was spent on lobbying in the first six months of the year, the lowest in five years, according to a JCOPE report.

Another Secret Attack Between Two Elected Officials Through A PAC. Independent Expenditure Effort Raises Eyebrows in the Bronx(NYO) Ms. Mark-Viverito and Assemblyman Luis Sepulveda were two of mayoral front-runner Bill de Blasio’s earliest backers. But behind the scenes–as the two appeared together at press conferences–Mr. Sepulveda’s chief of staff, Kenneth Thomas, was serving as a board member on a political action committee that had set its sights against her.

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Monday, August 26, 2013

Melinda Katz Was A Paid Lobbyist For NYPost/Fox News/News Corporation At Greenberg Traurig

2013-08-26 Melinda Katz Lobbyist for News Corporation - Greenberg Traurig NYC Lobbyist Client Search Result...

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Wednesday, May 1, 2013

Again, Christine Quinn Connection To Lobbyist Emily Giske Blocks Taxi Reforms

The lobbyist Emily Giske, right, has been paid handsomely by owners of taxi medallions for blocking proposed taxi regulations, such as requiring taxis to pick up fares in the outer boroughs. Now comes word that Ms. Giske, who enjoys what some political observers describe as a warm and cozy relationship with New York City Council Speaker Christine Quinn, second from left, has been able to block through Speaker Quinn's efforts any attempt to increase the availability of taxis, which are compliant or accessible in accordance with the Americans With Disability Act, or ADA.

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Friday, December 21, 2012

NYC Economic Development Corporation Demands Secrecy Pacts With Public Officials And Their Staff

Is the New York City Economic Development Corporation violating sunshine laws ?

In her holiday newsletter, Assemblymember Deborah J. Glick reveals that the New York City Economic Development Corporation asked her office to leave the Civic Center Taskforce, because the Hon. Assemblymember and her staff refused to sign "secrecy pacts."

The New York City Economic Development Corporation is now coercing confidentiality agreements from any public official, who takes part in some of its meetings, hearings, or discussions.

This includes the staff of public officials.

When the Hon. Assemblymember and her office declined to sign a confidentiality agreement with the EDC, the EDC asked that the office of the Hon. Assemblymember leave the ECD's Civic Center Taskforce !

The EDC puts on the pretense that it is a transparent quasi-government institution, which uses public resources to push economic plans that are creating major deals for giant corporate interests. The EDC takes credit for helping to keep JetBlue's headquarters in New York City. But if this institution is going to be using taxpayer money for its corporate deals, what is it doing ring-fencing information away from the public about the public's business ?

Here is a link (http://www.nycedc.com/nycida/financial-public-documents) to the ECD's "public documents" page. No where on this link does any information appear that the EDC demands confidentiality agreements from public officials.

How can we have a transparent government that is accessible to its citizens, if the government is demanding that public officials enter into "secrecy pacts" that deny voters and taxpayers information about our government's business ?

Were confidentiality agreements the tool used by those with vested financial interests in the billion-dollar luxury condo conversion deal for St. Vincent's to silence our politicians and their official staff ? We may never know.

Here is the portion of Assemblymember Glick's holiday newsletter, which addresses the EDC's demands for secrecy pacts :


That Which Must Not Be Mentioned


In a shocking and anti-democratic move, New York City's Economic Development Corporation has required anyone participating in the Civic Center Taskforce, as well as the Seward Park Taskforce, to sign a confidentiality agreement that essentially serves as a gag order. Because I believe in open government and transparency, I along with my staff refused to sign this agreement, and my office was asked to leave a Civic Center Taskforce Meeting we were participating in and denied the ability to participate in any future meetings.

I understand the importance of having local representation, such as members of the Community Board, in the room and why some Taskforce members felt compelled to sign the agreement. However, presenting members with the option of maintaining complete secrecy or being denied a place at the table is on its face coercive and outrageous. There may have been some who thought it was no problem, and the fact that after ten years under the Bloomberg administration these types of secrecy pacts are viewed as standard operating procedure is perhaps even more disturbing.

My office will not be party to community taskforces that do not allow for conversation with the community, and we are hopeful that the City will resume its work as a democracy in the near future.

Read also : Editorial: City Must Bring Transparency Back to Seward Park development site (SPURA)

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Saturday, September 15, 2012

The Committee To Frack New York ?

Update #2 : My blog post below was written independently last night, but I just found a more detailed investigation posted on the Internet with the same title : Shift by Cuomo on Gas Drilling Prompts Both Anger and Praise (Revised : Monday 1 Oct 2012 6:20 a.m.)

Update #1 : My blog post below was written independently last night, but I just found a more detailed investigation posted on the Internet with the same title : The Committee to Frack New York ? (Revised : Sunday 16 Sept 2012 8:20 a.m.)

Shady Pro-Cuomo Lobby Group Allowed to Hide Donor Names

Are there any "straw donors," who gave money to the Committee To Save New York ? Are there any donors, who are fracking lobbyists or shale oil companies ? We'll never know, because Gov. Andrew Cuomo, who is on the cusp of either approving or rejecting fracking near the precious and irreplaceable Hudson River, exerts undue influence over the New York State Joint Commission on Public Ethics (JCOPE).

Giving JCOPE and voters full transparency and disclosure about the Committee to Save New York would be one way for voters to have faith in the integrity of the fracking review process.

It's been revealed that environmental groups, government accountability activists, and advocates of greater government transparency are worried that the Cuomo administration has been going out of its way to cuddle with special interests linked to the oil and gas industry.

"New York regulators gave natural gas drilling industry representatives exclusive access to draft regulations for shale gas drilling as early as six weeks before they were made public, according to records obtained by the Environmental Working Group through New York's Freedom of Information Law," reported the Environmental Working Group.

Gov. Cuomo is setting off all kinds of alarm bells, because it appears that the Cuomo administration isn't even going to order a healthcare study about the impacts of allowing fracking to pollute New York state.

To make matters worse, nobody knows what influence campaign contributions will have on the Cuomo administration's fracking decision. And to murky up the waters, the state ethics panel, JCOPE, recently ruled that the Committee to Save New York, a lobbying group that promotes Gov. Cuomo's political activities, can "keep secret the identities of a vast majority of millionaire donors" who have been financing the lobbying group, according to The New York Times.

Read the investigative report : The Committee to Save 1% New York.

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Wednesday, July 6, 2011

SAIC and Technodyne Lobbying Scandal : Did it Rise to the Level of Obstruction of Justice ?

Keeping in mind that Mayor Bloomberg is skilled at funneling campaign money in many ways that go undetected and undisclosed, a skill he shares with Speaker Quinn, who still maintains her shady City Council slush fund. These experts at funneling and slushing money around in opaque structures and technicalities are the ones, who never detected the massive $600 million CityTime Fraud. Really ?

During the 3 terms of the Bloomberg administration, Mayor Michael Bloomberg and City Council Speaker Christine Quinn kept approving each year's city budget, which included all the approvals and sign-offs on the CityTime cost over-runs.

During the Bloomberg-Quinn administration, lobbyists for the primary CityTime contractors, Scientific Applications International Corporation and Technodyne, kept teams of expensive lobbyists on their payroll to do exactly what ? Were lobbyists being paid to prevent any government agency to investigate the 2003 Richard Valcich letter ?

2003 02 19 Richard Valcich Letter SAIC CityTime Corruption Scandal

In 2003, Mr. Valcich was the Executive Director of the Office of Payroll Administration. In his 6 page letter to SAIC, Mr. Valcich questioned the motivations behind SAIC's poor performance on the CityTime contract ; SAIC kept dragging out deadlines and delivering product that Mr. Valcich described as "below acceptable standards."

As of the time of the writing of Mr. Valcich's letter, New York City had spent $35 million thus far on the doomed CityTime project. Current cost estimates put the price tag at over $700 million, of which $600 million has been described as "fraud."

During all this time, though, the principal outsourced companies working on CityTime were dispatching teams of lobbyists, to keep the cost over-runs being paid, and maybe for other motives.... The newsroom of WNYC, the public radio station, cannot pinpoint the exact role of the shady CityTime lobbyists.

"What prosecutors have yet to publicly discuss is the role played by former city officials from both the Giuliani and Bloomberg administrations that acted as lobbyists on behalf of SAIC and subcontractors such as New Jersey-based Technodyne. ...

"The city's lobbying database shows a small army of former prominent city officials who did work for SAIC and Technodyne. Defense contractor SAIC has retained former City Comptroller Liz Holtzman, Peter Powers, who served as Mayor Giuliani's top deputy Mayor for operations, and Seth Kaye, who worked in both the Giuliani and Bloomberg administrations. Technodyne's lobbyists include former Bloomberg Department of Information Technology and Telecommunications Commissioner Gino Menchini and Agostino Cangemi, who also held key posts in both administrations.

"National Strategies, the lobbying firm that employs Menchini and Cangemi, says the firm had no role in CityTime and discontinued working "on general business procurement" for Technodyne as soon as the criminal allegations surfaced. (Another Technodyne lobbyist of record, Sal Salamone, was director of the Mayor’s Office of Computer Planning and has worked for SAIC.)"

No journalism outlet has yet to report the extent of lobbying by other CityTime subcontractors, such as Spherion and Gartner. If the lobbyists were trying to thwart any investigation into the $600 million CityTime fraud, would those lobbying activities rise to the level of obstruction of justice ?

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