Common Cause/NY Releases Muckraking Monday on Senator Mike Ranzenhofer

Analysis of LLC giving reflects influence of NYC real estate interests

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NEW YORK, NY (02/22/2016)(readMedia)-- Today Common Cause/NY kicked off the first in its Muckraking Mondays series to shine a light on money in local politics. The series will be periodic, not weekly.

The first briefing (attached) focuses on contributions to Senator Mike Ranzenhofer via the LLC loophole from 2005-2015.

The LLC loophole was a central issue in the corruption cases against Dean Skelos and Sheldon Silver who both accepted hundreds of thousands of dollars from New York City based Glenwood Management, in return for preferential treatment. New York State law treats LLCs as individuals, as opposed to corporations, subject to the much higher contribution limit. As a result wealthy interests use it to circumvent the campaign finance laws to influence lawmakers and seek favorable policies.

Senator Razenhofer is the Chair of the Corporations Committee, which has failed to advance a bill (S.60) to close the loophole. He told WGRZ Channel 2 that he refuses to let the bill out of committee for a vote.

Instead he has profited handily from wealthy real estate interests, collecting $94,500 from 11 LLCs associated with Glenwood Management alone. Leonard Litwin himself, Glenwood's owner, personally kicked in $6,500 through a direct contribution.

In total, the Senator has received $225,937 in LLC money, 62% of which comes from the real estate industry.

"A crime-wave of corruption has engulfed Albany yet Senator Ranzenhofer is content to continue serving himself instead of his constituents. It is jaw-dropping that he refuses to act in the face of such overwhelming public demand for reform," said Susan Lerner, Executive Director of Common Cause/NY.

Top 15 LLC Contributions by Industry as Percent of Total Contributions: 2005 - 2015

Industry LLC LLC Percent of Total Grand Total

Real Estate $141,177 50% $282,151

Consulting / Government Relations / Marketing $15,200 68% $22,300

Construction $15,050 6% $260,102

Law $12,060 17% $70,865

Health Care $7,375 12% $60,165

Insurance $7,250 33% $22,100

Architecture/Engineering $5,000 13% $38,598

Beverage Distribution $4,575 14% $31,750

Farming $3,400 100% $3,400

Waste Management $3,300 100% $3,300

Electronic Cigarettes $2,500 100% $2,500

Gambling $1,500 41% $3,650

Private Investigators $1,450 100% $1,450

Senior Citizen Care $1,250 79% $1,575

Unknown $1,200 33% $3,625

LLC Contributions, of $1,250 or more, and their associated Entities: 2005 - 2015

Entity Industry Corporate Contrib Individual Contrib LLP/LP Contrib LLC Contrib Grand Total

Glenwood Real Estate $0 $6,500 $0 $94,500 $101,000

Benderson Development Company Real Estate $0 $0 $0 $15,127 $15,127

Samson Management Real Estate $0 $0 $0 $6,500 $6,500

First Choice Evaluations, LLC Insurance $0 $0 $0 $5,300 $5,300

Transworld Equities Real Estate $0 $0 $0 $5,000 $5,000

Hogan Willig Law $0 $0 $0 $4,860 $4,860

Union Concrete and Construction Corp. Construction $5,500 $0 $0 $4,500 $10,000

Wendel Architecture / Engineering $1,550 $3,000 $0 $4,250 $8,800

Great Lakes Concrete Products, LLC Construction $0 $0 $0 $4,250 $4,250

Universal Management Agency, LLC Real Estate $0 $0 $0 $4,000 $4,000

Western New York Urology Associates, LLC Health Care $0 $0 $0 $3,800 $3,800

Waste Management Waste Management $0 $0 $0 $3,300 $3,300

NEILL & STRONG, PLLC Law $0 $0 $0 $3,175 $3,175

LeChase Construction Services, LLC Construction $0 $0 $0 $3,150 $3,150

Kreher's Farm Fresh Eggs Farming $0 $0 $0 $3,150 $3,150

Try-It Distributin Co., Inc. Beverage Distribution $0 $14,000 $0 $3,000 $17,000

Greener & Hook LLC Consulting / Government Relations / Marketing $0 $0 $0 $3,000 $3,000

Masiello, Martucci, Calabrese & Associates Consulting / Government Relations / Marketing $2,575 $1,200 $0 $2,800 $6,575

Jim Morabito Real Estate $0 $0 $0 $2,700 $2,700

Perfection Vapes Electronic Cigarettes $0 $0 $0 $2,500 $2,500

Ellicott Development Real Estate $18,223 $1,000 $500 $2,250 $21,973

Bolton-St. Johns Consulting / Government Relations / Marketing $0 $0 $0 $2,200 $2,200

Eastown Plaza Associates LLC Real Estate $0 $0 $0 $2,050 $2,050

Tonio Burgos and Associates, Inc Consulting / Government Relations / Marketing $0 $0 $0 $2,000 $2,000

BOND, SCHOENECK & KING Law $0 $0 $0 $1,750 $1,750

The Regent Companies Real Estate $250 $0 $0 $1,500 $1,750

Empire Merchants Beverage Distribution $0 $0 $0 $1,500 $1,500

Probe Services, LLC Private Investigators $0 $0 $0 $1,450 $1,450

Nidus Development Real Estate $0 $0 $0 $1,250 $1,250

Alternative Medicine Associates Health Care $0 $0 $0 $1,250 $1,250

Gotham Government Relations Consulting / Government Relations / Marketing $0 $0 $0 $1,250 $1,250

LeRoy Manor Senior Citizen Care $0 $0 $0 $1,250 $1,250

Although independent expenditure committees, political action committees, and party committees make up the bulk of Ranzenhofer's campaign contributions (46%), these committees are themselves substantial beneficiaries of anonymous LLC largesse.

Background

In January, Common Cause/NY, NYPIRG, and Citizens Union introduced the "Clean Conscience Pledge" calling for all 213 lawmakers, and the Governor, to sign on. The pledge includes three reforms:

1. Close the LLC loophole

2. Ban or limit outside income

3. Transparency in discretionary funds

So far 26 lawmakers have committed to clean up Albany, but Senator Razenhofer has declined.