Corruption of New York City Council slush funds leads to another guilty verdict, this time for Ex-Councilmember Dan Halloran

PUBLISHED : TUES, 29 JUL 2014, 09:36 PM
UPDATED : MON, 04 AUG 2014, 11:05 AM

Amongst the charges for which former Councilmember Halloran was found guilty was plotting to funnel $80,000 in City Council slush funds as bribes to others

Controversy over City Council slush funds continue under the new Council speaker, Councilmember Melissa Mark-Viverito Former New York City Councilmember Daniel Halloran was found guilty today by a jury, concluding a federal trial for corruption charges stemming from his arrest for participating in a scheme to buy the GOP ballot line for State Sen. Malcom Smith, a wannabe mayoral candidate in last year's municipal elections. Former Councilmember Halloran's accepted money in what was described as a bribe for his role in the corruption scheme. In exchange, he had pledged, in part, to use $80,000 in City Council slush funds for further bribes in this corruption scheme. Former Councilmember Halloran had planned to funnel the $80,000 from the monies awarded to him by the City Council speaker, who, at her discretion, awards member items to Councilmembers for further payment to various nonprofit groups. The practice of distributing member items from the speaker's discretionary fund has been a historical source of corruption in the City Council. Government reform activists also see the use of these slush funds as ways to keep community groups locked up in proverbial "veal pens," preventing, for example, some community groups, such as VOCAL-New York, from pressing for a complete overhaul to end corruption at the New York Police Department. Previously, three Councilmembers : Larry Seabrook, Hiram Monserrate, and Miguel Martinez, and two former council staffers of then Councilman Kendall Stewart : Asquith Reid and Joycinth Anderson, have been charged in connection with corruption related to the slush fund scandal. After former Councilmember Halloran's arrest, his slice of the slush funds came under review by former Council Speaker Christine Quinn, who was once the target of a federal investigation into her own, larger slush fund scandal. After the outcome of last year's municipal elections, former Speaker Quinn was succeeded by Councilmember Melissa Mark-Viverito as speaker. Speaker Mark-Viverito had promised to reform the politically-corrupt process of doling out the Council's slush funds. However, this year, Speaker Mark-Viverito sparked controversy when she was caught allocating millions of dollars in slush funds to a charity group founded by one of her key campaign consultants. This year's allocation of slush funds were further complicated when Councilmember Ruben Wills was arrested on unrelated corruption charges. Councilmember Wills' cut of this year's slush funds were reportedly to be divided up amongst groups in his Council district at the direction of Speaker Mark-Viverito's office and other Councilmembers of the Queens delegation, Capital New York reported. As the U.S. Attorney for New York's southern district, Preet Bharara, continues his campaign to prosecute government corruption cases, former Councilmember Halloran's conviction shows voters that federal prosecutors know where to keep looking : at the role that the Council's slush funds plays in elected officials' machinations to "sell out their offices." How many more Councilmembers and their staff must be ensnared in corruption cases by federal prosecutors before the Council's slush funds are either reformed with true integrity or ended entirely ?

RELATED Former Councilmmember Dan Halloran Found Guilty in Corruption Case (The New York Observer) Another campaign consultant tied to Council Speaker Mark-Viverito in still yet another controversy (NYC : News & Analysis) Quinn in the Slush (New York Magazine) Lulu heroes and zeroes : End the City Council’s legal bribery (The New York Daily News) City Council members can’t prove they donated bonuses to charities (The New York Post)

Christine Quinn - 8 Years of City Budget Slush Funds @NYCCouncil Schedule C

Fake Charity Groups that Christine Quinn Used in 2007 to Hide Her Political Slush Fund (@NYCCouncil Schedule C) http://t.co/gjcG4HXCv7

— Stop Christine Quinn (@stopchrisquinn) September 1, 2013

Some of the fake charity groups Christine Quinn used to divert discretionary funds for personal political gain.

• American Association of Concerned Veterans received $422,763 in slush funds.
• Association of Community Partners received $400,000 in slush funds.
• Coalition for a Strong Special Education received $400,000 in slush funds.
• Community Development for Stronger Neighborhoods received $300,000 in slush funds.
• Firewood Senior Services Center received $300,000 in slush funds.
• Immigration Improvement Project of NY received $300,000 in slush funds.
• Rockwood Regional Development Foundation received $300,000 in slush funds.
• Moving Up, Building Bridges received $250,000 in slush funds.

FY 2007 City Council Adopted Expense Budget Schedule C

As a follow-up to yesterday's post (that FY 2007 Schedule C was missing), we have turned up a copy, and now all eight years' worth of Schedules C's during Christine Quinn's speakership of the New York City Council are now uploaded onto Scribd. These are public documents, yet FY 2007 was not publicly available. Maybe it was because the FY 2007 Schedule C was used by The New York Post to expose the fact that Speaker Quinn had used fake charity groups to hide a political slush fund to dole out to her supporters. (This $$ Is Hers For The Faking * NYPost)

FY 2008 City Council Adopted Expense Budget Schedule C

FY 2009 City Council Adopted Expense Budget Schedule C

FY 2010 City Council Adopted Expense Budget Schedule C

FY 2011 City Council Adopted Expense Budget Schedule C

FY 2012 City Council Adopted Expense Budget Schedule C

FY 2013 City Council Adopted Expense Budget Schedule C

FY 2014 City Council Adopted Expense Budget Schedule C

Stringer Slush Fund Report

Manhattan Borough President Scott Stringer Blasts Mayor's Race Opponent Chris Quinn

Manhattan Borough President Scott Stringer took an apparent swipe at his mayor's race opponent, calling for an end to pork spending by local lawmakers.

JULY 20, 2011 4:09 PM

Our Reuven Blau reports:

Stringer criticized City Council Speaker Christine Quinn and the other 50 members for their $49 million in earmarks that neglects to reach the city's poorest neighborhoods.

"We have a system where some districts get a lot more than others and politics is the only reason," Stringer told reporters yesterday.

Quinn is an early frontrunner in the mayoral election with the largest war chest of more than $4 million. Yet one of her major challenges in her expected run is the so-called slush fund scandal that erupted in 2007.

-- Excerpted from the Daily Politics blog by Celeste Katz on The New York Daily News.

2011 07 Xx Christine Quinn Slush Fund Member Items Report