Friday, April 23, 2021

POLITICO New York Playbook: Council member pleads guilty to tax fraud — Adams’ official charity boosted his profile — Yang faces blowback over LGBTQ forum

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By Erin Durkin and Anna Gronewold with Jonathan Custodio

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Albany may have been soaking up all of the crime and corruption attention lately, but New York City is getting back in the game. Brooklyn City Council Member Chaim Deutsch has pleaded guilty to federal tax fraud charges, fessing up to filing false information that allowed him to avoid $82,000 in taxes.

He faces up to a year in prison. But no, he's not giving up his seat on the City Council. While a felony conviction would lead to an automatic expulsion, the misdemeanor charge in question does not. So Deutsch is staying put, said his attorney, Henry Mazurek. "Mr. Deutsch's dedication to public service will not be diminished, and he looks forward to completing his elected term," Mazurek said.

Council Speaker Corey Johnson is pushing him to go. "Council Member Chaim Deutsch betrayed that public trust by committing tax fraud," he said. "To protect the integrity of the City Council and his Brooklyn seat, he must resign." It's unclear if the Council will move to expel him — his term ends at the end of the year anyway, and he can't run again due to term limits — but they will move to yank his committee chairmanship and his ability to dispense earmark money.

Deutsch pleaded guilty to falsifying information in his tax returns about outside income he made from Chasa Management, the real estate company he owned while also serving on the Council, a practice the body has since banned in a deal that also gave members a fat raise.

The last time a Council member was convicted of criminal charges was 2017, when Ruben Wills was found guilty of stealing public funds and automatically expelled. But now, with his conviction having been reversed on appeal after two years in prison, he's running again for his old seat in Queens. (He can do that because his case was overturned — unlike Hiram Monserrate, who tried to run in defiance of a new city law banning his candidacy, and got kicked off the ballot last week.) As for the only member expelled without a criminal conviction — Andy King, who got the boot in October after being accused of sexual harassment, kickbacks and more — the New York Post reports he's now facing yet another lawsuit from a former staffer alleging mistreatment.

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WHERE'S ANDREW? No public schedule yet.

WHERE'S BILL? Holding a media availability and appearing on WNYC's Brian Lehrer show.

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WHAT CITY HALL'S READING

BROOKLYN BOROUGH PRESIDENT ERIC ADAMS dipped into municipal coffers in 2016 to buy a pair of banners that spanned the columns outside Borough Hall, bearing the likeness of himself and his deputy. The enormous tapestries were billed by Adams — now a leading candidate in the mayor's race — as a way to showcase the diversity of the borough's leadership, but the display attracted criticism from good-government groups who said taxpayer money should not be used for self-promotion.

The admonition did not appear to stick. Since assuming the role of borough president in 2014, Adams has had designs on the top job at City Hall. And in the intervening years, he has steered hundreds of thousands of dollars into an ethical gray area where charity and self-aggrandizement intermingle — with fundraising practices that have drawn the scrutiny of investigators and good government groups. The yearslong boost to Adams' name recognition is now coming in handy as the June 22 Democratic primary approaches: His campaign strategy relies on besting the competition in key areas of his home borough. The widest avenue through which the assistance has flowed is One Brooklyn Fund, a nonprofit controlled by Adams that is partially staffed with employees of his office and allowed the use of Borough Hall.

The nonprofit, whose budget is typically between $300,000 and $500,000, does plenty of charitable work throughout the year. But money from the organization has also been spent on high-end fundraisers that raised little money, marketing materials that promote Adams' name and image and awards given out to prominent businesses and constituents — some of whom later donated to his mayoral campaign. POLITICO's Joe Anuta

MAYOR BILL DE BLASIO said Thursday he will restore the city's program to pick-up and repurpose organic waste like vegetable peels and eggshells, a significant Earth Day announcement for environmental advocates who have been pushing for its restoration. But the relaunched version is a shell of its former self. While the city will restore the program to the same neighborhoods that previously had access to it, landlords will now have to enroll in it — an opt-in system that could curtail its reach... De Blasio is also still shying away from mandating composting citywide, something he repeatedly promised to do during his tenure. POLITICO's Madina Touré and Danielle Muoio

— The city is suing three major oil companies and a top industry trade group in state court, after a federal appeals court this month rejected its effort to hold the companies liable.

ANDREW YANG is facing some blowback after comments made during an LGBTQ+ mayoral forum that some are criticizing as out of touch and insensitive. Yang appeared at the Stonewall Democrats of NYC, the city's largest Democratic LGBTQ+ political club, saying he's now getting his education on gay bars, citing Stonewall and the nearby Cubbyhole. "Well, first, let me say that if I go to Cubbyhole, I think I'm going to be accompanied by at least one of my two campaign managers who are both gay," the Hell's Kitchen resident laughed. "So there's like a lot of, you know, familiarity with, with the community, at the head of my campaign leading it." Yang added that he asked one of his campaign managers and Council Member Carlos Menchaca, who endorsed Yang this week, whether the LGBTQ community liked him — a difficult question for any politician to ask of a group of people who do not vote as a monolith, said Rose Christ, president of SDNYC. "He came across like he was a tourist in New York and said he wanted to visit a gay bar," she said. POLITICO's Amanda Eisenberg and Jonathan Custodio

— The Campaign Finance Board voted to award nearly $1.5 million in public matching funds to Shaun Donovan, after receiving sworn statements that a super PAC bankrolled by his dad was not coordinating with his campaign. CFB had withheld the payments while looking into the PAC. New York Post's Carl Campanile

— "A majority of the leading Democratic candidates running for mayor of New York City said they plan to retain a controversial policy adopted by the de Blasio administration that accommodates the Orthodox Jewish community on a risky circumcision practice known as metzitzah b'peh, which can transmit herpes to an infant. The Forward's Jacob Kornbluh

— Adams is pressing to reinstate the NYPD's anti-crime unit and start spot checks of passengers at bus terminals as a way to address a spike in shootings.

— Ray McGuire is slated to get more than $5 million from his old employer over the next few years.

— Mayoral candidates have starkly different approaches to running the NYPD.

"HE'S A HIGH-SPEED hypocrite! City Councilman Brad Lander — who's crusaded against reckless drivers and pushed a law that lets the city seize their cars — has been caught speeding in school zones around the Big Apple eight times in the past five years, The Post has learned." New York Post's Sam Raskin, Nolan Hicks, Dan Herrick and Bruce Golding

"FOR WEEKS, New Yorkers have witnessed the alarming rise of a homegrown variant of the coronavirus that has kept the number of cases in the city stubbornly high. City officials have repeatedly warned that the variant may be more contagious and may dodge the immune response. On that second point, at least, they can now breathe easier: Both the Pfizer-BioNTech and Moderna vaccines will effectively prevent serious illness and death from the variant, two independent studies suggest." The New York Times' Apoorva Mandavilli

FIRST IN PLAYBOOK — Vocal-NY, the group behind an occupation of City Hall last year pushing to defund the police, is again pressing for billions of dollars in NYPD cuts in this year's budget. In a list of budget demands , the group calls for $4 billion to be slashed from law enforcement — $3 billion from the NYPD, $227 million from district attorneys, $650 million from the Department of Correction, and $26 million from the total elimination of the Office of the Special Narcotics Prosecutor. They want the $4 billion instead spent on housing, mental health and substance abuse services, and the creation of a non-police street response team.

FIRST IN PLAYBOOK — Health care workers 1199SEIU, the city's largest union, is endorsing Alvin Bragg for Manhattan district attorney. Political director Gabby Seay said Bragg, a former chief deputy state attorney general and federal prosecutor, would provide "true equality under the law for all no matter where you live or the color of your skin." Bragg was also recently endorsed by building workers union 32BJ and the Retail, Wholesale and Department Store Union.

 

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WHAT ALBANY'S READING

"ALBANY police clashed with anti-brutality protesters Thursday as officers cleared them from an encampment of tents built next to the department's South Station. Minutes before police moved in, officers told protesters they had 15 minutes to pack up their tents and belongings or face arrest. About four dozen officers faced about 15 protesters, who had refused to leave. Officers made a line to move demonstrators away from the camp, which resulted in one protester being thrown to the ground with his hands zip-tied behind his back. Another officer was seen smashing chairs with a night stick. It all took minutes, with police pushing all people away from the South Station entrance and to the intersection of Grand and Arch streets."

"Law enforcement sources said it was dubbed 'Operation Save South Station' by police. 'For several days, protesters have occupied the roadway in front of the South Station,' the police chief tweeted. 'The Albany Police Department, in efforts to support the freedom of expression and to de-escalate a tense situation, did not interfere with this unlawful occupation.' 'Protesters may continue to peacefully demonstrate, but they must do so in a space that is safe and lawful,' he continued. Mayor Kathy Sheehan backed Hawkins' decision to clear out the protesters, claiming residents in the area had "reached out to my office expressing fear for their safety and describing the negative impacts this unlawful occupation has had on their ability to access resources." Times Union's Eduardo Medina, Steve Hughes and Paul Buckowski

"DANIEL PRUDE AND GEORGE FLOYD died less than two months apart after encounters with police officers in two different American cities… A grand jury decided not to indict the three officers who pinned Prude to the ground with a restraint that a medical examiner decided contributed to his death. In Minneapolis, Chauvin, who kept his knee heavy on Floyd's neck for over nine minutes, went to trial and was convicted of murder and manslaughter this week by a jury. 'The criminal justice system isn't like McDonald's,' said local lawyer Donald Thompson, who has represented Prude's brother in an earlier civil action against Rochester and its police. 'You go to McDonald's in Tokyo, Toronto, Cincinnati, you get the same Big Mac.' But there is no assurance that similar criminal allegations will receive similar treatment in different cities, counties, or states." Democrat and Chronicle's Gary Craig

"FOR TWO DECADES, the Shinnecock Indian Nation has tried and failed to open a casino near Manhattan in the hope that a gambling hall would be an economic engine to wrest them from poverty and fund social programs. Now the tribe has its eye on a new location: its home in the Hamptons . The Shinnecock Hamptons Casino is expected to rise on the tribe's reservation here on the East End of Long Island as early as 2023. But some of the tribe's neighbors are uniting in opposition against placing the casino in this summer getaway known for staid, shingled summer homes owned by wealthy and influential people, who fiercely guard the area's low-key feel... Tribal leaders of the Shinnecocks said they have no choice but to build on the reservation and to start construction this summer, in an effort to get a jump on competitors seeking state licenses to build other casinos in or around New York City." The New York Times' Corey Kilgannon

#UpstateAmerica: Nature is healing. Dave Matthews Band is returning to SPAC this summer.

 

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Scranton on the Hudson

"PRESIDENT Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4%, according to people familiar with the proposal... For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%." Bloomberg's Laura Davison and Allyson Versprille

"WITH Covid-19 continuing to sweep across Canada, the U.S. State Department this week offered Americans some blunt advice. Don't go there. For the first time, the State Department added Canada to its 'do not travel' list, which names countries that Americans should avoid for safety reasons." Buffalo News' Jerry Zremski

 

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AROUND NEW YORK

— Senate Majority Leader Andrea Stewart-Cousins earned some criticism for appearing with Cuomo at a Wednesday event after calling for his resignation last month.

— A man convicted of setting off a pipe bomb in the Times Square subway station was sentenced to life in prison.

— Former city schools Chancellor Richard Carranza was fined $1,100 for taking his wife on an Education Department outing to see Hamilton.

— More than 2,000 food delivery workers rallied for better conditions, and they have the support of influential union 32BJ.

— Democratic lawmakers are anxious for Cuomo to sign a bill that would create stronger workplace standards.

— The City Council voted to ban the use of chemical pesticides on city property.

— A woman who sued the NYPD after being shackled to a hospital bed during childbirth will get a $17,000 settlement.

— JFK Airport will scale back and delay the redevelopment of its busiest terminal.

— Large city vehicles will be banned from the Coney Island Boardwalk under City Council legislation.

— A Queens judge race will pit a candidate poised to be the first openly gay Civil Court judge against a candidate who courted same-sex marriage opponents.

— The NYPD's 70-pound robotic dog was acquired without properly notifying the city, according to Comptroller Scott Stringer.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: John OliverKindred MotesKal Penn … Bloomberg's Paula Dwyer ... WNYC's Beth Fertig ... Vice News' Jesse Seidman New York state Sen. Michael Gianaris

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REAL ESTATE

"OUT ON THE industrial back streets of Queens sit two dusty, gravel-covered lots. Hemmed in by auto-body shops, graffiti-covered walls and barbed wire fences, one houses an abandoned trailer and a collection of car doors, while the other is home to three feral cats: Rosie, Blackie and Angel. Here is where the final phase of a 50-year long journey to create a backup for the city's water supply will soon break ground, with workers blasting out two enormous shafts, burrowing down more than 600 feet. The shafts will connect the surrounding communities to City Tunnel No. 3, a 60-mile water delivery system that the city has been building since 1970. They will also allow the city to shut down and repair City Tunnel No. 2 for the first time in 85 years." Gothamist's Nathan Kensinger

"A STATEWIDE EVICTION moratorium is set to expire May 1, with New York yet to allocate crucial rent relief through a new $2.4 billion assistance program funded by the federal government. The end of the eviction freeze has advocates worried that thousands of tenants could lose their homes without a fair shot at paying back their arrears "It would be a tragedy if people were evicted who qualify for the rent relief program because it isn't authorized and the eviction moratorium is lifted," said Legal Aid staff attorney Ellen Davidson. State lawmakers instituted the latest moratorium in December 2020 for tenants who submit a 'hardship declaration form' freezing evictions until at least May 1. About 36,000 tenants have submitted the forms, according to the Office of Court Administration." Queens Eagle's David Brand

"BRIAN REDMOND and his wife, Shelby Mancuso, began house hunting last year, with the lease on their Rochester apartment about to expire. 'We didn't know how crazy the market was until we started looking,' said Redmond. They wanted to put down roots in Rochester, where Redmond is a teacher and Mancuso, a nurse. They weren't looking for anything extraordinary — though, of course, they had a wish list: a three-bedroom, two-bath with a spacious first-floor layout in a walkable community. Redmond said their real estate agent warned them right away they would have to be super competitive to land the house they wanted. For starters, an offer would need to be at least $10,000 over the asking price." Messenger Post Media USA Today Network's Julie Sherwood

 

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