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.