The New York State's Top Election Enforcement Officer, Risa Sugarman, is seeking more than $8.6 Million in Civil Penalties and Fines from the Senators, Campaign Staff, and Party Officials connected to a Fundraising Partnership between the Independence Party and the State Senate's Now-Defunct Independent Democratic Conference (IDC).
The IDC was a group of State Senate Democrats that Caucused with the Republicans to give them the Majority vote on Bills.
The Petition for a Hearing in the Case was filed last month by Sugarman in response to a State Supreme Court Ruling in June, 2018, which found that the Fundraising Committees formed in 2016 to Support IDC Members were Improperly Constituted.
The Senate Independence Campaign Committee (SICC) and an Associated Fundraising Account had been Created to allow then-IDC Leader Jeff Klein to Raise and Spend Campaign Money. The Accounts were used like Political Committees and capable of accepting Six-Figure Campaign Donations while Transferring Unlimited Amounts to Candidates.
"The court held that the Independence Party could not turn a party committee over to the IDC – all enrolled Democrats – for to do so would render contribution limits meaningless," according to the recent filing by Sugarman. She is seeking to Recover Penalties and Fines based on the Activities of the Accounts, which raised and spent Millions of Dollars. "The scope of this case is enormous," her Office's filing states.
Lawrence D. Mandelker, an Attorney for the Senators and Officials associated with the former IDC, countered that the Finding in the Original Case was "very limited" and he said that changing the Fundraising Committee's Leadership had satisfied the Judge's Ruling. Regarding Sugarman's Request for Penalties and Fines, Mandelker said, "I'm not very impressed by it."
Filings from Sugarman's Office have maintained that Full Compliance with the Ruling last year includes Refunding Contributions that Exceeded State Limits. The Campaign Accounts allegedly Received more than $3.2 Million in Improper Transfers and Contributions after they were formed, which is the Basis for Sugarman seeking more than $4.75 Million in Penalties and Fines.
The Damages are being sought from Klein and Two Former IDC Staff Members, with Independence Party Chair Frank McKay having Limited Exposure and only facing about $17,000 in Penalties and Fines.
The SICC Account reported having $4,763 in the Bank last month, and the Associated Housekeeping Account at $2,474.
The Notice also Targets Eight Former IDC Senators, Six of whom Lost their Seats in September 2018 Primaries, including one who died in November 2018, for allegedly Receiving Excessive Contributions from the SICC Account.
The most significant Charge is leveled against Former Sen. Marisol Alcantara, who allegedly Benefited from $530,628 in Excessive Contributions in 2016, and $603,799 in 2018. The filing maintains that Klein, who Lost his Seat, improperly received $602,329 during the 2018 Election Cycle.
Senators David Carlucci (D-38th District) and Diane Savino (D-23rd District), the only former IDC Members to Survive the Primary Challenges and Win Re-Election last year, allegedly received $259,031 and $190,031 in Excessive Contributions, respectively, during their Campaigns. The Penalties and Fines for the Senators Range from about $190,000 to more than $1.6 Million.
The State Hearing Officer who would Review Evidence in the Case cannot Mandate Payment of any Fines and Penalties, but the Filing Points to the Prospect of a Special Proceeding to Recover Money, possibly in State Supreme Court.
Mandelker contends that last year's Ruling Precludes Sugarman from seeking Monetary Damages because the Court didn't Order Restitution. "She can't get away from that decision," he said.
A Month after the Court Ruling last year, Sugarman issued a Letter Calling for Contributions to the Candidates and the SICC Account to be Refunded, but the Demand didn't prompt any Action.
NYC Wins When Everyone Can Vote! Michael H. Drucker
