Self-defense

John Liu on NY1. (Photo: ny1.com)

John Liu Insists His Campaign’s Bookkeeping Was the Best

City Comptroller and mayoral candidate John Liu continued his no-apologies tour after his former campaign treasurer and a fund-raiser were found guilty on campaign finance fraud charges last week, charging Monday that his rivals’ campaigns would also face issues if they were subjected to similar scrutiny.

“I am confident that if any campaign in New York City or elsewhere was subject to the level of scrutiny that my campaign has been put under–and that Jenny has been put under–we would be far head and shoulders above everybody else,” Mr. Liu said during an interview on NY1 last night. Read More

playing defense

John Liu before speaking to reporters. (Photo: Jill Colvin)

John Liu Calmly Defends Campaign in Emergency Press Conference

Hours after his former treasurer and a fund-raiser were found guilty on campaign fraud charges, City Comptroller John Liu said he was “proud” of his campaign and vowed to carry on with his bid to become the city’s next mayor.

“I’m deeply saddened by the turn of events today. I continue to believe that Jenny’s a good person, and we will continue to ask the voters of this city for their support in my campaign to be mayor of New York City,” he told reporters after a forum in Brooklyn, where he continued to act as though nothing had changed. Read More

What You Should Know

(Photo: Getty)

Rubén Díaz Says Ethics Reform Should ‘Begin in the Governor’s Mansion’

The State Legislature is set to look at tightening New York’s infamously loose campaign finance rules in the wake of a recent slate of corruption scandals, but State Sen. Rubén Díaz believes legislative attention should instead be focused on Governor Andrew Cuomo.

“I would like to recommend that ethics reform in New York State begin in the Governor’s mansion,” Mr. Díaz declared today in one of his regular “What You Should Know” statements. “While we consider how to restrict Senate campaign donations that are used to pay for meals, I would like my readers to know that many of my colleagues are routinely invited to the Governor’s mansion to eat his food and drink his wine with no oversight to who pays those bills.” Read More

Law & Order

photo-15

The Case Against John Liu’s Campaign Begins

This afternoon, just as comptroller and likely 2013 mayoral candidate John Liu appeared alongside Mayor Michael Bloomberg at a press conference discussing the post-Sandy state of the city’s finances, legal arguments got underway this afternoon in the trial of his supporter Xing Wu “Oliver” Pan and his young campaign treasurer Jia “Jenny” Hou, who are being accused of participating in a conspiracy to direct illegal contributions to Mr. Liu’s war chest. In the courtroom today, Judge Richard Sullivan rejected four pre-trial motions requested by Mr. Pan and Ms. Hou’s attorneys and ordered the trial to begin as scheduled February 4.  Read More

Mo' Money Mo' Problems

Paul Ryan on the campaign trail in Ohio last weekend. (Photo: Getty)

Wisconsin Dems Ask for Investigation Into Paul Ryan’s Campaign Finances

Based on a Politicker investigation, Wisconsin Democratic Party Chairman Mike Tate is asking the Federal Election Commission to open an investigation into Paul Ryan’s congressional campaign committee. Last Thursday, we published a report detailing how Paul Ryan, who is simultaneously running for re-election in Wisconsin’s First Congressional District and on the GOP presidential ticket with Mitt Romney, may have improperly used funds from his congressional campaign for about $60,000 in expenses at the Republican National Convention. Mr. Tate’s letter to the FEC said this story shows Mr. Ryan’s congressional campaign committee “co-mingled expenditures between the Committee and the Romney Committee” in violation of federal regulations. Politicker has obtained a copy of Mr. Tate’s letter, which he is sending this week.

“As disclosed in an article published on October 25, 2012 in Politicker.com, a political website operated by The New York Observer, the Committee reported ‘$59,603.41 that was specifically identified as [Republican National] convention-related expenses between July 26 and October 17.’ A copy of the article is attached to this letter,” Mr. Tate wrote. ”A spokesperson for the Committee is quoted as stating that the bulk of such expenses were for the purchase of twenty hotel rooms for use at the Republican National Convention, although the Committee had only five staff members.” Read More

Cash Money

Paul Ryan campaigning in Virginia earlier this month. (Photo: Getty)

Paul Ryan’s ‘Problematic’ RNC Spending Spree

A Politicker examination of federal campaign finance disclosure reports submitted by Paul Ryan’s congressional campaign has uncovered indications Mr. Ryan may have improperly used funds raised for his re-election effort in Wisconsin for presidential campaign activities at the Republican National Convention in August. Mr. Ryan is simultaneously running for re-election in Wisconsin’s First Congressional District and on the GOP presidential ticket with Mitt Romney. At the RNC in Tampa, Mr. Ryan’s House campaign spent about $60,000. However, these convention expenses seem to go far beyond the scope of the activities and staff he had at the RNC for his bid to reclaim his House seat.

One prominent election law expert told us this is a “highly problematic” potential violation of Federal Election Commission regulations regarding candidates running for multiple federal offices. A spokesperson for Mr. Ryan’s opponent in Wisconsin’s First Congressional District described it as a possibly “troubling” element of “Paul Ryan’s overarching pattern of dishonesty in this race.” When we reached out to Mr. Ryan’s congressional campaign manager, we received a shifting series of explanations including at least one statement that was clearly untrue. Read More

Law & Order

Preet Bharara and Mayor Blooomberg

Queens District Leader Arrested For Alleged Straw Donor Scheme

This morning, Preet Bharara, the United States Attorney for the Southern District, announced multiple charges relating to an alleged campaign finance scheme against Albert Baldeo, a Democratic district leader in Queens. Mr. Baldeo, who surrendered to law enforcement this morning, is being accused of using a system of “straw donors” to fill his campaign coffers for his unsuccessful 2010 City Council campaign with “funds drawn from his own bank account disguised as donations from others.” He is also being charged with obstruction of justice for allegedly telling instructing the straw donors to give false information and say the donations were made with their money when FBI agents began investigating his campaign finances. In a statement accompanying the announcement, Mr. Bharara characterized the charges against Mr. Baldeo as proof his office will be continue to be aggressive in pursuing corruption investigations, something which he has earned a reputation for since being sworn in as U.S. Attorney for the Southern District in 2009. Read More

Super Pacapalooza

Mitt Romney and Chris Christie on stage together at a campaign event in New Hampshire January 8. (Photo: Getty)

The Connection Between Mitt Romney’s Super PAC ‘Money Man’ And The Pro-Chris Christie PAC

A stealth PAC that has supported New Jersey Governor Chris Christie with a $1.5 million television ad campaign is linked to the same political consultancy that has raised $12 million for a super PAC that backs Mitt Romney. Carl Forti, who was Mitt Romney’s National Political Director for his 2008 campaign, has since been dubbed Mitt Romney’s “money man” because of his work with Restore Our Future PAC, a political action committee created to support Mr. Romney in this election cycle. A partner at Mr. Forti’s Black Rock Group is also working with  the Committee For Our Children’s Future, a stealth PAC dedicated to promoting the “reform movement” led by Mr. Christie, who many observers speculate could be a running mate if Mr. Romney is victorious in his quest for the Republican nomination. Read More

Cash Money

Senator Kirsten Gillibrand (Photo: Hunter Walker)

Kirsten Gillibrand Discusses Stopping Super PACs

Senator Kirsten Gillibrand discussed super PAC’s with The Politicker on Sunday at the annual New York State Black, Puerto Rican, Hispanic and Asian Legislative Caucus association weekend. Ms. Gillibrand said she’s trying to fix the controversial political action committees that allow corporations and individuals to make unlimited, undisclosed political donations, but she doesn’t think super PACs will be stopped any time soon because of Republican House members.

“I think we should ultimately strive for publicly funded elections and, I think, if you can take the money out of politics, you can begin to restore people’s confidence in the system,” Ms. Gillibrand said. “The problem with the super PACs, in general, is that there’s no transparency, there’s no accountability, you don’t know who spent the money or what their agenda is.” Read More