Perdido 03

Perdido 03
Showing posts with label Leonard Litwin. Show all posts
Showing posts with label Leonard Litwin. Show all posts

Tuesday, December 22, 2015

Cuomo Says He Won't Give Back Bribes, Er, Donations He Took From Crooked Glenwood Management

Cuomo digs in on the Glenwood money:

Gov. Cuomo said Monday voters will just have to trust him to do the right thing when asked why he won’t return more than $1 million from a real-estate firm involved in two of Albany’s biggest corruption scandals.

“Yes, I received significant funds, donations from that company. And I was their opponent as a matter of policy,” Cuomo said during a WNYC radio interview. “I was advocating for rent reforms.”

He shrugged off the $1.2 million that flowed into his campaign account from Glenwood Management and its employees as irrelevant to his decision-making.

“If I believed that I could be influenced by a million dollars or a thousand dollars or 50 dollars, then I’m in the wrong place and I should resign immediately,” he said.

“If you can be influenced by the money, then forget the denomination. You just have the wrong person in the office.”

Cuomo claims he doesn't know why Glenwood gave all that money to him or to others in Albany:

Cuomo claimed he had no idea why Glenwood would donate $14 million to elected officials and party committees over the past decade, if not to push its agenda.

“Why do people donate? A lot of reasons. They think he’s their best candidate, they don’t like the other candidate. They like the smile. Who knows?” he said.

“You have to do your job and exercise your judgment . . . absent who supports you, who doesn’t support you. If you can’t do that you can’t be in that position in the first place.”

He has no idea why Glenwood donated all that dough?

He should read the NY Times piece by William Rashbaum from Saturday:

The contributions seemed to pay dividends for Glenwood and the real estate industry as a whole in the form of a seat at the table — sometimes quite literally.
With a law that governed rent regulations set to expire in 2011, Mr. Dorego testified that he and other real estate executives were called to two meetings with state leaders in June, one at the governor’s office in New York City and one at his office in Albany.
At the meeting in Albany, Mr. Dorego testified, he and other executives met first with Mr. Cuomo in the governor’s office. And then they were summoned by Mr. Skelos, who sought to reassure them. Everything, Mr. Skelos said, “seemed to be falling in line.”

And:


Mr. Dorego told the jury the company reaped an estimated $50 million to $100 million in savings over an unspecified period from one state program alone, a real estate tax-abatement law called 421-a. The State Legislature must renew the law periodically through a process essentially controlled by the two legislative leaders and the governor.
Mr. Dorego testified that the law’s continued renewal was an “absolute necessity” for Glenwood. Without it, he said, the cost of city real estate taxes — the largest component of a luxury high-rise’s operating budget — would make building such towers unfeasible, in part because lenders would not finance them.
For that reason, Mr. Dorego told the jury, keeping the State Senate in the control of Republicans — who, in his words, “were more business-oriented and had more of an interest in making sure business thrived in the city” — was “the No. 1 priority” for Glenwood’s political strategy and “Mr. Litwin’s No. 1 concern.”
Glenwood also benefited from another state-administered program, using it to obtain more than $1 billion in low-interest, tax-exempt bond financing since 2000, to buy land and construct eight buildings it has put up since 2001, according to testimony at Mr. Silver’s trial. Each application to the program, under which a developer must set aside 20 percent of a new building’s units for low-income housing, must be approved by an obscure state agency, the Public Authorities Control Board.
The three-member board is made up of the governor and the two legislative leaders, or their designees. All applications require unanimous approval, giving each member a potential veto as well as, prosecutors suggested, power and leverage.
Glenwood also depended on the governor and the legislative leaders to renew favorable rent regulations that determine when a developer or landlord can shift rent-stabilized apartments to market-rate rentals.

The governor also makes it sound like he didn't ask for all that Glenwood money - again, he ought to read the Rashbaum NY Times piece so that he can understand that information is already out there publicly:

The biggest beneficiary of Glenwood’s giving: Mr. Cuomo, who, in the last election cycle, received more than $1 million from limited liability companies, or LLCs, connected to the company. 

More:


When it came to the governor, Glenwood was considered such a reliable contributor that his fund-raisers suggested to the developer that it spread what would become a multiyear million-dollar donation “into biannual installments,” according to documents uncovered by investigators from the Moreland Commission, an anticorruption panel that Mr. Cuomo created in 2013, but abruptly disbanded nine months later.
Glenwood also funneled money to Mr. Cuomo indirectly: On a single day in 2011, 10 of the company’s LLCs combined to give a total of $500,000 to the Committee to Save New York, a group of business interests that spent $16 million to support Mr. Cuomo’s agenda during his first two years in office.

Cuomo obviously thinks his excuses will work with voters - many of whom aren't paying that close attention to this anyway - and perhaps he's right about that.

But these excuses aren't working well with at least one editorial board which keeps drubbing him day after day - and that's the NY Post.

Here's their latest editorial:
Gov. Cuomo’s excuses for keeping money from a tainted firm prove one of two things: He’s not interested in cleaning up Albany’s reputation for sleaze — or he’s completely tone-deaf.

Asked Monday if he’d take The Post’s advice and return $1.2 million in donations from Glenwood Management, the real-estate firm implicated in the Sheldon Silver and Dean Skelos trials, Cuomo declined.

ADVERTISING
Why?

“If I believed that I could be influenced by a million dollars or a thousand dollars or fifty dollars, then I’m in the wrong place, and I should resign immediately,” he said.

Well, Silver and Skelos claimed they weren’t influenced by Glenwood money, either. But in Cuomo’s case, no one’s even accusing him of that; the question is whether it’s right to keep money from a tainted firm.

Doing so signals a tolerance for corruption — and sends an unhelpful message to Albany’s entire political class.

Officials from Glenwood were said to have conspired with Skelos and Silver in their corrupt schemes, even if they themselves were never indicted. So how can the state’s top pol justify keeping their cash, especially if he hopes to rid the capital of sleaze and restore public trust?

Remember, the gov has more than $12 million in cash on hand. So returning Glenwood’s donations will hardly cripple him.

Nor, by the way, is the issue legislative “reforms,” as Cuomo suggests. One idea has been a ban on lawmakers’ outside income; a city panel Monday backed such a ban for local pols in exchange for higher pay.

But schemers always find ways to skirt reforms. What’s needed are pols who are beyond reproach — and prove it by their deeds. Cuomo so far has little interest in that. So how can he expect anyone to think he’s cleaning up Albany?

Now maybe editorials don't mean much in the grand scheme of things, but news coverage does (just ask de Blasio what he thinks the Post coverage, in part, did to his poll numbers), so if they keep at this they can do some damage to him.

But the real danger is that the guy who took Silver and Skelos down - US Attorney Preet Bharara - is watching this and thinking "OK, I got convictions on two  of the three crooks in a room who ran Albany but now the third one remains as intransigent as ever in his corruption."

Why Cuomo refuses to return the money is beyond me.

He can raise more, it would show a good faith effort toward cleaning up the corrupt culture in Albany and would provide leadership at a time when Albany politics needs it.

Instead he's digging in his heels and saying a) he's not going to give the money back and b) he has no idea why he was Donor # 1 for Glenwood, the firm at the center of the Silver and Skelos corruption cases, but it surely wasn't for any corrupt reasons.

Preetmas can't come soon enough.

Friday, December 18, 2015

De Blasio Returns Glenwood Cash, Makes Cuomo Sad

From the NY Post:

Mayor de Blasio is returning $20,200 in campaign contributions from a real-estate firm involved in the corruption scandals involving two disgraced Albany legislative leaders — a move that puts Gov. Cuomo in a political jam.

De Blasio is the first elected official to heed Post editorials calling for the return of millions in campaign cash from Glenwood Management, a powerhouse developer that figured in the corruption trials of both former Assembly Speaker Sheldon Silver and former state Senate Majority Leader Dean Skelos.

Cuomo has pulled in $1.2 million over the years from Glenwood, its officials and subsidiaries.
Cuomo spokesman Austin Shafran declined on Thursday to say whether the governor would follow the mayor’s lead and give back the money.

When The Post raised the issue earlier this week, Shafran insisted “the governor’s decisions are not influenced by contributions, as testimony in the trials showed.”

The mayor’s campaign — which would certainly say the same about de Blasio — nevertheless decided it would refund Glenwood’s money, according to a campaign spokesman.

Assemblyman Steve McLaughlin puts this into perspective:


It should have been a no-brainer, all right, but Cuomo insisted he was going to wait for the outcome of the Silver/Skelos trials before making any move and then, after both were convicted, clearly still decided to wait to make any move (perhaps hoping the hullabaloo would go away?) and now de Blasio beat him to the punch.

Of course, it's quite easy for de Blasio to return $20K, less so for Cuomo to return $1.2 million in bagman cash from Glenwood.

And if Cuomo had to return every dirty donation from a contributor, sheesh - they would cost him most of his campaign warchest.

That's why the feds are looking into his donors in the first place.

So I get why he's not led on the Glenwood donation issue.

Nonetheless, the de Blasio move, meant to tweak him, will make him very, very sad.

And you know what happens when Cuomo gets sad - somebody gets hurt.

Expect some kind of retaliation from Cuomo against de Blasio very, very soon.

Wednesday, December 2, 2015

Cuomo's Flip-Flop On The Moreland Commission

When it comes to how stunningly full of shit Andrew Cuomo is on corruption, this William Rashbaum tweet puts it all in perspective:


With Shelly Silver convicted on all seven corruption counts and Dean Skelos all but assured of being convicted in his corruption trial, no wonder Cuomo wants to rewrite the history and make believe like the Moreland Commission on Public Corruption wasn't actually supposed to investigate or prosecute anything or anybody.

It's worth revisiting the NY Times piece by Craig, Rashbaum and Kaplan on how Cuomo "hobbled" the Moreland Commission that ran on July 23, 2014 because it gives much insight into why Cuomo would want to have the public forget the truth about the commission.

In the piece, we learn that Cuomo tried to exert control over the Moreland Commission on Public Corruption through its executive director, Regina Calcaterra, who fed everything that was happening there back to Cuomo's office, sometimes literally in real time via her phone .

We know that whatever the commission knew Cuomo likely knew too because Calcaterra was feeding it back to his office.

So Cuomo's office likely knew that Silver and Skelos were both under investigation, yet he made the deal with the two then-legislative leaders to shut down the Moreland Commission in return for a budget deal that contained a lukewarm ethics reform package in it.

There sure is a funkiness to that budget deal that resulted from the Moreland shutdown that ought to be looked at now that Silver's convicted and Skelos is soon-to-be convicted.

In addition, we know that when the commission got too close to Cuomo's own donors in the real estate industry with a subpoena, Cuomo's man Larry Schwarz, told them to "pull it back."

We continue to learn more and more about all the money that was going from real estate interests to Cuomo's coffers - including how the real estate developer at the center of the Silver and Skelos trials who gave Cuomo over $1 million in donations last election cycle either individually or through connected entities also gave $500K to Cuomo's allies at the Committee To Save New York PAC back in 2011:

If you're tallying it all up at home, here's the total from Glenwood and/or Litwin to Cuomo or Cuomo-controlled entities and/or allies:

Glenwood and Litwin gave Cuomo’s committee $1 million during the last election cycle, more than any other donor. They also gave his 2014 running mate, Lt. Gov. Kathy Hochul, $19,700 and the New York State Democratic Committee $450,000.

The $500,000 given to the Committee to Save New York thus brings the total from the developer that went to support the governor during his first term to $1.97 million — about 32 times the campaign contribution limit imposed on donations from most individuals.

Cuomo attempted to cover up his connections to Glenwood, claiming that even though they were donating this dough to him, he wasn't meeting with them - but that statement turned out not to be true and Cuomo had to retract it:

ALBANY—Governor Andrew Cuomo appeared to misspeak on Wednesday when he said he had "never" discussed rental control with executives of Glenwood Management, the real estate company whose alleged efforts to influence legislation in Albany were at the center of a criminal complaint against Senate Majority Leader Dean Skelos that was released this week.

Glenwood Management has not been accused of any illegal activity, but it has been widely identified as “Developer-1” in criminal complaints against Skelos and former Assembly speaker Sheldon Silver.
...

On Wednesday, Capital asked Cuomo if Glenwood had ever brought up rent control with the governor or any members of his administration.

“No, never,” he said.

But a review of Cuomo’s public schedules indicates he met with executives from Glenwood three times in 2011 to discuss "rent regulations," according to the schedules. The meetings took place in the months before rent control laws were set to expire.

“The Governor did not remember off the top of his head three meetings from five years ago, two of which also included many other industry advocates,” said Rich Azzopardi, a spokesman for Cuomo. “What is clear to everyone is that we emerged that year with the strongest rent regulation laws in decades, which included the creation of a tenant protection unit that has returned more than 37,000 unlawfully deregulated apartments to rent regulation."

The Moreland Commission could have uncovered some of this stuff had they been allow to investigate Cuomo's donors at REBNY but Cuomo made sure the investigation into his donors didn't pick up speed and then shut down the commission not long afterward.

You can see why he'd now want to rewrite the history and make believe that what he said about the commission having investigatory and prosecutorial powers wasn't actually said.

Because there sure is a lot of smoke around Cuomo, his donors and the Moreland Commission shutdown and you know he doesn't want anybody to remember that.

Monday, November 23, 2015

More Cuomo Corruption News

Bill Mahoney at Capital NY:

Glenwood Management, the real estate developer at the center of two former legislative leaders' federal corruption trials, gave half a million dollars in 2011 to an advocacy group that focused solely on supporting Gov. Andrew Cuomo's agenda.

Evidence federal prosecutors released Sunday in the trial of Sen. Dean Skelos itemizes the contributions that various Glenwood holdings made over the past decade.

...

On Oct. 24, 2011, a total of 10 different Glenwood holdings each made out a $50,000 check to the group, according to the federal evidence. The next day, one of them wrote a separate $50,000 check destined for Cuomo’s campaign committee.

On the same day that the holdings of Glenwood — whose principal owner Leonard Litwin was identified by Forbes in 2007 as the world’s 891st richest individual — made the donations, Occupy Wall Street protesters focused on assailing Cuomo for being too close to the “1 percent.”

Glenwood and Litwin gave Cuomo’s committee $1 million during the last election cycle, more than any other donor. They also gave his 2014 running mate, Lt. Gov. Kathy Hochul, $19,700 and the New York State Democratic Committee $450,000.

The $500,000 given to the Committee to Save New York thus brings the total from the developer that went to support the governor during his first term to $1.97 million — about 32 times the campaign contribution limit imposed on donations from most individuals.

Other donors to the Committee To Save NY, the Cuomo PAC (that's what it was whether Cuomo wants to admit it or not since it ONLY did work for him), included a casino developer and other gambling interests that gave CSNY $2 million just as Cuomo was deciding on whether to legalize casino gambling in the state.

Funny how that worked - give money to Cuomo PAC that Cuomo says isn't his PAC but functions as an ancillary to his campaign, then get favorable policy (i.e., legalized casino gambling) in return.

Sheriff Andy said he rode into Albany to clean the corruption cesspool up but the more you learn about the doings up in the state capital, the more you realize Sheriff Andy's up to his neck in the cesspool too.

Dunno how far the feds are digging into Cuomo and his donors either as part of the Silver and Skelos corruption trials (and Mahoney points out Glenwood is at the center of both) or as part of the Buffalo Billion investigation.

But it seems to me if the feds get a conviction on Silver in a case where no specific quid pro quo has been shown (though that is no done deal, as can be seen here), there's some smoke around Cuomo and his donors too.

Friday, June 12, 2015

Leonard Litwin "Thanks" Andrew Cuomo For His Support

From the Observer:

The Alliance for Tenant Power, a left-leaning pro-tenant group, is circulating a meme and quote parodying Mr. Cuomo’s ties to scandal-scarred Glenwood Management. The meme portrays Glenwood’s 100-year-old founder, Leonard Litwin, raising a martini glass and smiling like Leonardo DiCaprio in the 2013 film The Great Gatsby.

Mr. Litwin is “thanking” Mr. Cuomo for calling for the straight renewal of a controversial real estate tax break known as 421a. Many progressives, including Mayor Bill de Blasio, want 421a reformed or scrapped altogether.

“The world’s upper class can sigh in relief. A straight extender on 421-a is exactly what we paid for. We know that billionaires want a 50’ lap pool and their tax break as well. Thanks to the Governor we will deliver nothing less,” reads the parody quote from Mr. Litwin. Alliance for Tenant Power noted the quote was delivered “from the stone whirlpool spa in his main penthouse.”

The meme arrived in the form of a press release from a fake gmail account for Charles Dorego, CharlesDoregoNY@gmail.com. Mr. Dorego is Glenwood’s senior vice president.

Dorego is "cooperating witness-1" in the corruption case against former state Senate Majority Leader Dean Skelos and his son Adam.

This is a parody, but like all good jokes, it's got truth at the center of it.

Cuomo's making as if the deadline for getting 421-a reforms snuck up on him, but the truth is, he and the legislature knew this was coming and chose not to do anything about it.

So now Sheriff Andy says a straight extender of the tax giveaway is the best way to go - and of course that benefits Leonard Litwin and all of Cuomo's real estate donors and buddies.

You bet Litwin and Company will be happy if they get a straight extender to the 421-a program with no changes - and they'll "thank" Governor Cuomo and the legislators who give them that straight extender.

Monday, June 1, 2015

Preet Bharara Moves Ever Closer To Cuomo

Fred Dicker in the NY Post:

Attorney Preet Bharara moved “a giant step closer” to Gov. Cuomo late last week with an indictment that alleges insurance exec Anthony Bonomo, a top Cuomo contributor whom the governor made chairman of the New York Racing Association, gave a lucrative no-show job to state Sen. Dean Skelos’ son, sources have told The Post.

“Bonomo is Cuomo’s guy, and he wouldn’t offer anything to Skelos’ kid without first making sure it was OK with the governor or his people,’’ said a senior state Democrat.

“The fact that Bonomo, like Dorego, is cooperating with Bharara brings the whole investigation a giant step closer to Cuomo,’’ the Democrat added, referring to Charles Dorego, a top official at Cuomo megacontributor Leonard Litwin’s Glenwood Management.

Glenwood, a real-estate development firm, has been linked to the Skelos indictment and the indictment of Assembly Speaker Sheldon Silver. Dorego is cooperating with Bharara’s probe.

Others at the Capitol agreed Bharara appeared to be moving closer to charging Cuomo and/or one or more of his top aides in his investigation of corruption in state government, which originated with Cuomo’s abrupt closure last year of his Moreland Act Commission as it was closing in on evidence of wrongdoing.

“This is a drip by drip that’s getting closer and closer to Cuomo, with Bonomo and Dorego providing prosecutors with an inside look at how the corrupt Albany system works,’’ explained a second senior state political figure.

...

The indictment said a state-regulated insurance company — identified as the Bonomo-run Physicians Reciprocal Insurers (PRI) — gave Adam Skelos a no-show job worth more than $100,000 at a time when it was lobbying Sen. Skelos on legislative matters.

A spokesman for the Roslyn, LI-based insurer said Friday that Bonomo — who with family members contributed nearly $250,000 to Cuomo’s campaign committee — and others at the company “are fully cooperating with the US Attorney’s Office.”

Several sources at the Capitol said Bonomo’s alleged willingness to provide a no-show job to Adam Skelos was further proof of Cuomo’s close political ties to Sen. Skelos.

“If you needed any further proof of Skelos’ ties to Cuomo and his people, this job from Bonomo’s company for Skelos’ kid should provide it,” said a top GOP official.

 Bonomo cooperating with the feds is bad enough for Cuomo.

But then there's this:

Some in Albany think Skelos will eventually plead - here's NT2 blog from a few weeks ago:

Not everyone can hack the hard core world that is state politics and government today.
Silver can. Deposed, he won’t quit. He sits in the back of the chamber and seethes. He lives for the day when he can testify and tell people how crazy it is to think that a grant for cancer research could be a bribe to get a client referral nine years later.

So can Libous. They investigated him for seven years and the best they could come up with was a charge that he lied when he said he didn’t remember how his son got a job. Then they went after the son and charged him with nine counts of which two counts stuck. It’s a tax offense for which an ordinary person would have to re-file and pay a penalty, but the son is going to jail for it. Libous struggles with both cases and with cancer and complications from back surgery, but still he won’t give in.

And then there’s Skelos. He’s not steely like Silver and Libous. He’s a mess. He can’t think clearly. Over the weekend, he dissembled to the point of telling colleagues that if they forced him out, he’d quit and they’d lose their majority. Only after everyone reassured him that they’d stand by him did he relent, but this isn’t a situation in which anybody thinks he’ll have the stomach to continue the fight. He’ll make a deal with the Feds. He’ll do anything to make it easier on himself and his son.

Something similar happened with Brian Meera. He’d had it good for a long time and was approaching retirement. Even though he didn’t think he’d done anything wrong, he wasn’t going to take a chance. He made a deal to protect himself.

If Skelos looks to plead, Preet's going to want some information on somebody big.

I would bet Skelos has some dope on Cuomo the feds would find interesting.

Couple that with the Bonomo and Dorego cooperation, and you interesting times in Albany.

Friday, February 6, 2015

David Sirota: Andrew Cuomo Benefited From Same Real Estate Figure That Shelly Silver Did

David Sirota at IBT:

A careful review of state documents reveals that Cuomo and Silver are connected by a key figure in the scandal. Both lawmakers have a financial relationship with the same New York real estate mogul, Leonard Litwin, who has in turn relied upon them for preferential tax treatment and other government benefits.

Silver is alleged to have benefited personally from Litwin’s spending -- and there is no dispute that Cuomo has benefited politically from that same largesse.

Litwin contributed $1 million to Cuomo’s reelection campaign and another $500,000 to the New York Democratic Party, making him the largest political donor in the state. His money flowed through 27 subsidiaries of his firm, Glenwood Management. Those subsidiaries were also clients of the real estate law firm that paid referral fees to Silver. U.S. Attorney Preet Bharara has alleged that Silver "induce[d] real estate developers with business before the state" to employ the law firm, which in turn made payments to Silver.

...

The Cuomo-run New York State Housing Finance Agency, for instance, approved a $260 million state-supported low-interest loan in 2014 to finance Glenwood’s new luxury apartment building in midtown Manhattan. At the time the loan to Glenwood was approved, the NYHFA was headed by Cuomo appointee Bill Mulrow, an executive and registered lobbyist at Blackstone, a private equity and real estate firm. Mulrow was just appointed to be the governor’s chief of staff. According to NYHFA documents, Glenwood also has had other business with the agency.

Similarly, Cuomo in 2011 signed Silver-backed legislation reauthorizing a then-expired property tax abatement for real estate developers called the 421a program. Cuomo also signed an extension of that program in 2013. Litwin’s firm used the 421a program for its Midtown Manhattan project, according to the New York Times. Glenwood has also used the 421a tax break for some of its other properties in the city.

You of course remember Larry Schwartz, Cuomo's secretary, had the Moreland Commission "pull back" subpoenas to REBNY, which Sirota notes has Leonard Litwin as its "honorary chairman."

Funny how Cuomo's secretary didn't want that link between REBNY and Cuomo investigated.

I dunno if Preet Bharara and his feds picked up that investigation or not.

But they certainly should have.

And if they did, I bet Cuomo's got trouble.

Because all that money from Litwin to Cuomo didn't come without strings.