by Gary
Snyder
In testimony before the Moreland
Commission to Investigate Public Corruption, some of New York’s top prosecutors
called for significant changes including increased oversight of the nonprofit
organizations that have been the nexus of numerous corruption schemes.
Investigations by federal prosecutors have exposed, through subpoenas and
wiretaps, the seedy underbelly of Albany deals exempt from disclosure under
current law, and politicians’ personal relationships with nonprofit
organizations receiving state funding.
At the hearing, a hefty list of corruption cases won or currently being
prosecuted was discussed:
- Senate Majority Leader Pedro Espada: Espada was convicted in
2012 for embezzling more than $14 million in public money from the
nonprofit Bronx healthcare clinic he founded in 1978, which he used to pay
his campaign expenses and purchase expensive sushi.
- State Sen. Shirley Huntley: Huntley, from Queens, is currently
in a federal prison after being convicted of embezzling money from a charity she controlled.
- Sen. William Boyland: Prosecutors have accused former Senator
Boyland of, among much else, extracting a sham consulting job with the
hospital nonprofit Medisys, while securing state grants for the hospital.
- Sen. Carl Kruger: Sen. Kruger is now in prison, had a similar
arrangement between Medisys and a consulting firm where he was a partner.
The case against Huntley involved member
items, a process through which state lawmakers were able to give earmarked
funding to charities in their district and beyond.
Even with curbs on member items at the
state level, lawmakers still exert influence over how grants are disbursed. One
example: In the federal complaint charging
State Senator Malcolm Smith with bribery the senator can be overheard on a
wiretap talking about freely available grant funds: “Multi-modal money is
outside the budget and it’s always around.”
It is suspected lawmakers used their
positions as leaders on various legislative committees to influence state
agencies deciding how to disburse grants, a vague process the Moreland
Commission is expected to investigate.
“There are tons of photographs of
legislators handing out oversize checks to community groups,” Bill
Mahoney, an analyst with the New York Public Interest Research Group said. (source)
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