Ken Boehm's blog

NY Times: Cuomo ‘Hobbled’ Anti-Corruption Moreland Commission

Sampson and CuomoOn Wednesday the New York Times published an account of how New York Governor Andrew Cuomo and his staff derailed the workings of an anti-corruption commission that Cuomo had established with great fanfare just months earlier.  A New York state law from 1907 named for its sponsor, Sherman Moreland, allows the governor to appoint investigators with subpoena power to seek out corruption in state government.

Menendez Tries to Blame Castro For Ethics Woes

Fidel CastroSenator Robert Menendez (D-NJ) is claiming that Cuban intelligence operatives may have planted reports that he patronized underage prostitutes. According to a Washington Post story on Monday by Carol Leonnig and Manuel Roig-Franzia:

The alleged Cuba connection was laid out in an intelligence report provided last year to U.S. government officials and sent by secure cable to the FBI's counterintelligence division, according to the former official and a second person with close ties to Menendez who had been briefed on the matter.

Renewed Spotlight on Salomon Melgen, Sen. Menendez' Biggest Donor

Melgen MenendezIt took a lawsuit by the Wall Street Journal to pry loose information from the Centers for Medicare and Medicaid Services about which doctors get Medicare reimbursements.

An lo and behold, look who is topping the list. It is Dr. Salomon Melgen, Senator Robert Menendez' biggest donor, whose eye practice in Palm Beach, Florida has been twice raided by the FBI. Apparently, Melgen was the top recipient of Medicare reimbursements for the whole county. In 2012, he received more than $20 million. The news has put renewed scrutiny on Melgen and his relationship with Menendez, which is reportedly under investigation by federal law enforcement authorities.

State Pension Funds and Big Investment Firms: What Could Possibly Go Wrong? (Part 2)

Piggy bankLast month, I wrote about pressure on state pension funds, many of which are underfunded and are facing immense pressure to chase higher returns. I profiled a $125 million investment made by the New Mexico Educational Retirement Board (NMERB) into Gramercy, a Connecticut-based hedge fund.

As we showed last month, there were some gaps between what Gramercy disclosed to NMERB and what we found in official records. Now Gramercy is making big news as a potential facilitator of a settlement between Argentina and holdout creditors.  According to news reports, Gramercy and other bondholders who took Argentina's 2010 bond exchange are pushing a settlement.

State Pension Funds and Big Investment Firms: What Could Possibly Go Wrong?

piggy bankThe financial crisis brought havoc to just about every financial institution in the country. But let's focus on the current status of state pension funds, where the crisis is beginning to look particularly grim.

Just how underfunded are state pension funds?  The estimates start at well over a trillion dollars and go up from there.  The answer depends on the observed time period, the difficulty in raising taxes on an already overtaxed public, and the severe problems in getting decent returns without taking unacceptable risks.

John Sampson Busted; He Also Got Loan From Fraudster Ed Ahmad

John SampsonNew York State Senator John Sampson (D-Brooklyn) was arrested today, charged with embezzelment, obstruction of justice and making false statements to the FBI.

Also, the New York Daily News reports today that the FBI is investigating a $188,500 "loan" to Sampson from Edul Ahmad, the Guyanese-American businessman who pled guilty to charges in a multi-million dollar mortgage fraud scheme.

Queens Politics Paralyzed Amid Reports Ex-Sen. Shirley Huntley Wore FBI Wire

Shirley Huntley photoYesterday, the New York Times reported:

On Friday, prosecutors disclosed that Shirley L. Huntley, when she was a Democratic state senator from Queens, had secretly recorded conversations with seven elected officials and two other people after she was confronted by the F.B.I. and asked about her alleged participation in criminal schemes involving embezzlement and bribery.

NLPC exposed a sham charity Huntley founded called The Parent Workshop, to which she steered tens of thousands in taxpayer money. Our research was first reported in the New York Post of March 6, 2011, apparently triggering the criminal probe.

State Senator Malcolm Smith Busted in Scheme to Rig New York City Mayoral Race

Malcolm SmithDemocratic State Senator Malcolm Smith, a close crony of embattled U.S. Rep. Gregory Meeks (D-NY), was arrested by the FBI this morning, along with several Republican party officials. According to various news reports, the arrests result from a scheme to bribe Republican officials to allow Smith to run for New York City mayor as a Republican. Smith is the former president of the State Senate.

From afar, the scheme seems bizarre, but in the context of the endemic graft in New York City, it is not far fetched at all. NLPC has played a key role in exposing a rotten political culture that is corrupt from top to bottom, and spans both parties.

Grand Jury Investigating New Jersey Sen. Robert Menendez

Robert MenendezThe Washington Post today reports that a federal grand jury is investigating Senator Robert Menendez (D-NJ) for pushing a Dominican port security deal that would have meant a windfall for Dr. Salomon Melgen, a major donor. The post security deal was first reported in the New York Times on February 1, based on information provided by NLPC.

Post reporters Carol Leonnig and Peter Wallsten cited unnamed sources for the existence of the grand jury and a related investigation. According to the story:

Sen. Menendez Claims He Didn't Know Ex-Aide Was Part of Port Deal

Menendez photoFrances Robles reports in the New York Times that an ex-aide to Senator Robert Menendez (D-NJ) stood to benefit from a Dominican port security deal, along with Menendez benefactor Salomon Melgen. From the Times:

Mr. Menendez, Democrat of New Jersey, has pushed United States government officials to help enforce a contract that a company owned in part by one of his major donors, Dr. Salomon E. Melgen, has with the Dominican government, which has refused to honor it.

A top executive at Dr. Melgen's security company will be Pedro Pablo Permuy, a former national security adviser and senior legislative aide to Mr. Menendez, according to a cousin of Dr. Melgen. Mr. Permuy's ties to the senator go back at least 20 years.

But Menendez' office told the Times that this is all news to the Senator:

Syndicate content