The Racino Scandal Rises Again

Paterson admits he OK’d 'tainted' casino firm to help then-state Senate Majority Leader John Sampson

• By CARL CAMPANILE
• Last Updated: 5:59 AM, January 10, 2013
• Posted: 1:57 AM, January 10, 2013
• LINK

Never mind what was best for taxpayers — former Gov. David Paterson admitted yesterday that he signed off on a deal to award the Aqueduct racino contract to a “tainted” bidder in 2009 to help then-state Senate Majority Leader John Sampson cling to power.

But Paterson said yesterday he was surprised — and troubled — that federal authorities are now conducting a criminal probe of the Aqueduct contract over suspected bid-rigging.

Paterson said the explosive federal inquiry — revealed in Tuesday ‘s Post — comes three years after the state inspector general’s scathing report accused Sampson, Sen. Malcolm Smith and others of helping Aqueduct Entertainment Group land the multibillion-dollar pact.

PALS: Sen. John Sampson (above) was “vulnerable,” so then-Gov. David Paterson tried to help, he admitted yesterday.

“Certainly it is noteworthy that after the state IG investigated it in 2010 that it comes back in 2013,” Paterson told The Post’s Fredric U. Dicker’s on Albany’s Talk 1300 radio.

Paterson recalled that Sampson backed AEG but Assembly Speaker Sheldon Silver was opposed.

And Paterson admitted that he “broke the deadlock” on behalf of AEG as a political favor to Sampson — although he knew that some of AEG’s partners had checkered pasts.

Paterson said Sampson was a “vulnerable” new majority leader with a razor-thin majority. “He [Sampson] said he needs this a lot,” Paterson said of the AEG franchise. “And I went along with it.”

“The problem with the AEG company was that they had people on their board and involved in their operation who had scrapes and violations [with the law] on their record. So it immediately tainted their bid,” Paterson said.

“There was always this sense that something was wrong with the group. I didn’t know at the time whether it was true or wasn’t true.”

Albany officials rescinded the AEG selection amid the IG’s probe. A new bidding process led to the selection of Malaysia-based Genting, which currently operates the Big A’s Resorts World casino.

ccampanile@nypost.com

Feds launch probe into former NY state Senate Majority Leader John Sampson

• By JOSH MARGOLIN, ERIK KRISS and CARL CAMPANILE
• Last Updated: 5:21 AM, January 4, 2013
• Posted: 1:02 AM, January 4, 2013
• LINK

EXCLUSIVE

The feds have launched a criminal probe of former state Senate Democratic Majority Leader John Sampson of Brooklyn, The Post has learned.
The inquiry focusing on Sampson’s campaign fund-raising stems from a broader federal probe into Queens Democratic Congressman Gregory Meeks, sources said.
Shady real-estate broker Edul Ahmad is the common link that drew the feds from Meeks to Sampson, said sources familiar with the investigation.
Ahmad was embroiled in a congressional ethics probe for giving Meeks a secret $40,000 loan believed to have been a gift.

Gabriella Bass

Edul Ahmad

Bloomberg News

Gregory Meeks

William Farrington

HEAT IS ON: State Sen. John Sampson is now being targeted by federal investigators, whose probe into Rep. Gregory Meeks over dealings with real-estate broker Edul Ahmad led to Sampson.

More important, Ahmad pleaded guilty in October in a separate, $14 million mortgage-fraud scheme.
But his sentencing date has not been scheduled and the defendant is now cooperating with the feds and possibly singing about Meeks and Sampson, sources said.
Ahmad faces more than 10 years in the slammer for submitting bogus information on mortgage applications to lenders and using straw buyers to hide his role in the scam.
He also faces more than $15 million in fines and restitution.
Like Meeks, Sampson has strong ties to Ahmad. Sampson was Ahmad’s lawyer in real-estate dealings and even got into hot water over that representation.
The New York Department of State, which licenses real-estate brokers and other corporations, admonished Sampson for notarizing a statement by one of Ahmad’s workers without a valid notary license, which had lapsed.
Details were sketchy about what the federal probers were looking for in Sampson’s campaign records.
Ahmad was a Sampson donor, contributing at least $2,000 to the senator’s campaign kitty, records show.
FBI spokesman Martin Feely said he could neither confirm nor deny the existence of an investigation into Sampson or Meeks.
Sampson was questioned by two FBI agents who stopped him by surprise on a Brooklyn street outside his gym late last summer, sources told The Post.
A source familiar with the case said the agents initially could have been looking to flip Sampson and get him to cooperate against Meeks or even a target of some other investigation.
Either way, “they’re definitely looking at him,” the source said. “They’ve been interested in him for a while.”
Sampson has repeatedly declined Post requests for comment.
Through a spokesman, he declined to comment yesterday when asked again about the probe.
The feds continue to probe Meeks even though the House Ethics Committee cleared him for failing for two years to report a $40,000 loan from Ahmad that appeared to have been an interest-free gift.
The panel last month concluded that Meeks’ inaction was “inadvertent” and declined to rule on whether the loan was in fact a gift.
The revelation of the federal probe into Sampson comes two weeks after he was dumped as the Senate’s Democratic leader in a 19-6 vote. He was replaced by Sen. Andrea Stewart-Cousins of Westchester.
It’s not the first time Sampson has been in investigators’ cross hairs.
A bombshell report by the state inspector general in 2010 slammed Sampson for tainting the bidding process in the award of a contract to run the Aqueduct casino in Queens.
Sampson, then the majority leader, was fingered for leaking a confidential bidding document to the lobbyist for the politically connected firm AEG, which subsequently won the contract.
The state yanked the billion-dollar contract from AEG when the Inspector General’s Office launched its probe.
Sampson claimed the bidding document was public information and he insisted he did nothing wrong.
Critics branded Sampson a weak and in effective Senate leader and said the ethical transgressions played a role in the Democrats losing the majority two years ago.
ccampanile@nypost.com

Former City Councilman Larry Seabrook Sentenced To Five Years

CRAIG WARGA/NEW YORK DAILY NEWS

Former city councilman Larry Seabrook leaves Manhattan Federal Court after his sentencing.

Former city councilman Larry Seabrook sentenced to five years for misappropriation of funds 

Seabrook, 61, directed hundreds of thousands of dollars targeted for community projects to his girlfriend and family members: prosecutors.

Comments (12)

BY ROBERT GEARTY AND GINGER ADAMS OTIS / NEW YORK DAILY NEWS

TUESDAY, JANUARY 8, 2013, 1:11 PM

Read more: http://www.nydailynews.com/new-york/larry-seabrook-sentenced-years-misappropriation-funds-article-1.1235667#ixzz2HRUhGIQv

 Former City councilman Larry Seabrook will spend five years in prison for misdirecting hundreds of thousands of dollars for community projects to his girlfriend and family members.

Seabrook, 61, was sentenced Tuesday. His surrender date is March 8.

“I will continue to fight in the service of people. I truly love the northeast Bronx,” the Bronx Democrat said during his sentencing.

He described himself as a “proud man” to Judge Deborah Batts, who acknowledged his many years in public service as she addressed him from the bench.

Batts said his many achievements had been irrevocably tarnished by his own “sense of entitlement and greed.”

Seabrook had "held himself above the law and betrayed the public trust by using his public office to enrich himself and others," Batts said.

Seabrook was convicted of 9 of 12 counts in a trial last summer in Manhattan federal court. The conviction came a year after another jury deadlocked on fraud charges.

Before he was arrested, Seabrook also had served as a state assemblyman and a senator. He has continued to deny wrongdoing.

The government says Seabrook diverted money from 2002 through 2009.

It says he directed more than $2 million of funds to nonprofit organizations he controlled but were not doing legitimate work.

U.S. Attorney Preet Bharara said Seabrook “sacrificed the public trust on the altar of greed.”

He applauded the 5-year sentence, saying it vindicated the taxpayers that Seabrook had cheated.

“We remain committed to making those who are corrupted by power pay the price, and the public can expect more arrests of politicians who have not learned this lesson,” Bharara said.

gotis@nydailynews.com

Former NYS Senate Majority Leader John Sampson Is Under Investigation

Feds launch probe into former NY state Senate Majority Leader John Sampson

• By JOSH MARGOLIN, ERIK KRISS and CARL CAMPANILE
• Last Updated: 5:21 AM, January 4, 2013
• Posted: 1:02 AM, January 4, 2013
• LINK

EXCLUSIVE

The feds have launched a criminal probe of former state Senate Democratic Majority Leader John Sampson of Brooklyn, The Post has learned.

The inquiry focusing on Sampson’s campaign fund-raising stems from a broader federal probe into Queens Democratic Congressman Gregory Meeks, sources said.

Shady real-estate broker Edul Ahmad is the common link that drew the feds from Meeks to Sampson, said sources familiar with the investigation.

Ahmad was embroiled in a congressional ethics probe for giving Meeks a secret $40,000 loan believed to have been a gift.

Gabriella Bass

Edul Ahmad

Bloomberg News

Gregory Meeks

William Farrington

HEAT IS ON: State Sen. John Sampson is now being targeted by federal investigators, whose probe into Rep. Gregory Meeks over dealings with real-estate broker Edul Ahmad led to Sampson.

More important, Ahmad pleaded guilty in October in a separate, $14 million mortgage-fraud scheme.

But his sentencing date has not been scheduled and the defendant is now cooperating with the feds and possibly singing about Meeks and Sampson, sources said.

Ahmad faces more than 10 years in the slammer for submitting bogus information on mortgage applications to lenders and using straw buyers to hide his role in the scam.

He also faces more than $15 million in fines and restitution.

Like Meeks, Sampson has strong ties to Ahmad. Sampson was Ahmad’s lawyer in real-estate dealings and even got into hot water over that representation.

The New York Department of State, which licenses real-estate brokers and other corporations, admonished Sampson for notarizing a statement by one of Ahmad’s workers without a valid notary license, which had lapsed.

Details were sketchy about what the federal probers were looking for in Sampson’s campaign records.

Ahmad was a Sampson donor, contributing at least $2,000 to the senator’s campaign kitty, records show.

FBI spokesman Martin Feely said he could neither confirm nor deny the existence of an investigation into Sampson or Meeks.

Sampson was questioned by two FBI agents who stopped him by surprise on a Brooklyn street outside his gym late last summer, sources told The Post.

A source familiar with the case said the agents initially could have been looking to flip Sampson and get him to cooperate against Meeks or even a target of some other investigation.

Either way, “they’re definitely looking at him,” the source said. “They’ve been interested in him for a while.”

Sampson has repeatedly declined Post requests for comment.

Through a spokesman, he declined to comment yesterday when asked again about the probe.

The feds continue to probe Meeks even though the House Ethics Committee cleared him for failing for two years to report a $40,000 loan from Ahmad that appeared to have been an interest-free gift.

The panel last month concluded that Meeks’ inaction was “inadvertent” and declined to rule on whether the loan was in fact a gift.

The revelation of the federal probe into Sampson comes two weeks after he was dumped as the Senate’s Democratic leader in a 19-6 vote. He was replaced by Sen. Andrea Stewart-Cousins of Westchester.

It’s not the first time Sampson has been in investigators’ cross hairs.

A bombshell report by the state inspector general in 2010 slammed Sampson for tainting the bidding process in the award of a contract to run the Aqueduct casino in Queens.

Sampson, then the majority leader, was fingered for leaking a confidential bidding document to the lobbyist for the politically connected firm AEG, which subsequently won the contract.

The state yanked the billion-dollar contract from AEG when the Inspector General’s Office launched its probe.

Sampson claimed the bidding document was public information and he insisted he did nothing wrong.

Critics branded Sampson a weak and in effective Senate leader and said the ethical transgressions played a role in the Democrats losing the majority two years ago.

ccampanile@nypost.com

NYS Senate Democrats Choose Sen. Andrea Stewart-Cousins Instead of John Sampson

Kevin Parker Hands John Sampson His Second Loss of the Week

Written by Aaron Short on December 19, 2012. Posted in Blog, Features, Heard Around Town, Latest.

8 Share on email Share on print

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State Sen. Kevin Parker

LINK

State Sen. John Sampson has had a rough week. Senate Democrats chose state Sen. Andrea Stewart-Cousins instead of Sampson as their minority leader in a surprising 19-6 vote on Monday.
The next day state Sen. Kevin Parker trounced him in the 2012 Stars of New York Dance contest at Long Island University’s Kumble Theater in Brooklyn.
Sampson reportedly spent several hours practicing his choreography but looked a step slow and was no match for Parker, who unleashed a torrent of old school hip-hop steps to Doug E. Fresh, LL Cool J, and Salt ‘n’ Pepa songs that brought the crowd to its feet and Sampson to his knees.
Parker was gracious in victory. “It always feels good to win,” he said. “We found a way to turn this ugly duckling into a swan.”
Parker said he did not cast a vote in the leadership race because he couldn’t make the meeting but said Stewart-Cousins matches the ideological goals of the conference. “I’m sure the senator is disappointed, everyone likes to win, but if it is going to be somebody else, Andrea is a great choice,” he said.
Sampson left the theater after the judges declared Parker the winner and could not be reached for comment.
Check out Sampson’s dance moves here, http://bit.ly/TyG57n, and Parker’s hip hop stylings here, http://bit.ly/UDvx6c.
UPDATE ON THE VOTE: The internal vote was 19-6. 25 people voted, but Parker did not cast a ballot.

The Who Are You Kidding Award Goes To Judge Felice O'Shea For Censuring and Not Removing Bronx Surrogate Judge Lee Holtzman

 
From Betsy Combier:I attended almost every
hearing date of Bronx Surrogate Court Judge Lee
Holtzman's "trial". What a theatre performance
he gave! I attended partially due to the fact that Manhattan Public
Administrator Ethel Griffin stole the estate of my mom, with the
assistance of former Manhattan Surrogate Judge Renee Roth and
Attorneys Kenneth Wasserman, Eli Uncyk, Peter Schram, and
Jonathan Landsman. Even Eliot Spitzer was involved in not only the
theft of my mom's estate (her Will - which left me her apartment in
NYC - was declared null and void by Renee Roth and then by Nora
Anderson's replacement, Judge Troy Webber) but hundreds of others
from the rightful heirs.
RICO in the New York State Unified Court System: How the Courts
Steal Your Property, Your Children, and Try To Destroy Your Life...
And How You Can Stop Them
Dont forget to listen in the article above to
the taped conversation between me and NYPD detective Ahearne
about how 1st Department Appellate Division Judge Karla Moskowitz
paid Attorney Kenneth Wasserman to harass me.

 

Bronx surrogate fights misconduct 

charge in rare public hearing

9/19/2012)

By Joseph Ax

NEW YORK, Sept 19 (Reuters) - Bronx Surrogate Lee Holzman asked 

a disciplinary panel Wednesday to dismiss charges of misconduct against 

him for failing to fire a lawyer in his court who improperly billed estates 

hundreds of thousands of dollars in legal fees before performing any work.

The hearing before the state Commission on Judicial Conduct offered a rare 

glimpse inside what are usually secret proceedings. Holzman waived his 

right to confidentiality last year.

Fewer than a dozen judges have elected to waive secrecy in more than 750 

cases since 1978, according to the commission.

In a crowded hearing room, a lawyer for the commission's counsel and 

Holzman's lawyer painted diametrically opposing portraits of the judge in 

the months after he learned in 2006 that lawyer Michael Lippman had been 

billing legal fees in advance, a violation of the court's protocol.

"The surrogate put in place measures to remedy the problem and protect 

the public," said Holzman's lawyer, David Godosky. He claimed the judge 

was the only one to act to fix the issue, while investigators from the FBI, 

the city's Department of Investigation and the Bronx district attorney's office 

did not charge Lippman with any wrongdoing for years.

But Mark Levine, the lawyer for the commission's counsel, told the commission 

that Holzman had abandoned his duty to the public and urged it to remove him 

from the bench.

"Don't let him fool you," Levine said. "This was a clear abrogation of judicial responsibility."

The commission filed charges against Holzman after Lippman, the counsel to 

the public administrator, was indicted in 2010 for stealing $300,000 in excess 

fees. Lippman has pleaded not guilty.

The public administrator handles estates for which there is no designated heir.

Rather than fire Lippman, Holzman instead demoted him and instituted a 

repayment structure in which Lippman would turn over any new fees he 

earned to repay the money he had improperly collected in previous cases. 

Holzman said Wednesday he was unaware of the extent of Lippman's 

transgressions in 2006.

Last year, a judicial referee, retired state Supreme Court Justice Felice 

O'Shea, conducted a three-week trial to determine whether any of the 

commission's misconduct charges should stand.

In her July report, O'Shea concluded one count of misconduct should be 

sustained for Holzman's failure to terminate Lippman but recommended that 

he be cleared of other charges, including claims that he broke the law by rubber-stamping Lippman's fees without enough documentation and that his lack of 

oversight led to corruption in his court. She also found that Holzman had 

allowed his personal affection for Lippman to color his judgment.

Wednesday's hearing was called to hear arguments from both sides on whether 

the commission should accept all, some or none of O'Shea's findings.

Holzman defended his decision, telling the commission it was an appropriate 

response that would ensure estates were made whole while forcing Lippman 

to complete the work for which he had already been paid. Lippman did not 

earn another penny after 2006, he said.

But Levine said Holzman's motives were far more self-serving. He said 

Holzman had no desire to expose himself to scrutiny and wanted to protect 

Lippman, whom Levine described as a longtime friend of Holzman's.

"He was not my friend," Holzman said in response. "There was absolutely no 

attempt to cover it up."

Holzman is retiring at the end of the year after having reached the state's 

mandatory retirement age, but Levine said his actions still warranted removal 

and would serve notice to other judges that such conduct will not be tolerated.

The commission, which met after the hearing in private to discuss the matter, 

will issue a written decision, likely later this fall. If the commission disciplines 

Holzman, he will have 30 days to appeal its decision to the court of appeals.

The case is the Matter of the Honorable Lee Holzman.

For the commission: Mark Levine.

For Holzman: David Godosky of Godosky & Gentile.

Follow us on Twitter @ReutersLegal | Like us on Facebook

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New York State CJC Decides Not To Remove Bronx Surrogate Judge Lee Holtzman

DECEMBER 18, 2012 1:54 PM

NYS Judicial Conduct Commission Rules Censure, Not Removal, For Bronx Judge Lee Holzman

BY CELESTE KATZ

LINK

The New York State Commission on Judicial Conduct has determined that Bronx County Judge Lee Holzman should be censured -- not kicked off the bench, as Commission Administrator Robert Tembeckjian recommended in a rare move this summer.

Daily News investigations revealed that Holzman appointed a friend and political supporter, Michael Lippman, to oversee the estates of Bronx residents who died without wills -- including signing off on $1.5 million in advance fees before Lippman even did any of the alleged work.

Lippman, who had first gotten the estate jobs from Holzman in 2006, according to the Commission, got arrested in 2010 on charges of pocketing $300,000 in excessive fees and faking documents to cover his tracks.

The Dec. 13 Commission determination, made public today, found that Holzman’s doings reflected “poor judgment, rather than knowing concealment of criminal behavior or intent to deceive.” 

The panel also took note of the fact that by law, Holzman, 70, must step down at the end of this year anyway, and cited his “lengthy and unblemished tenure as a judge.”

Three Commission members concurred with Tembeckjian's recommendation to bounce Holzman.

“The Commission and I play different roles in the formal disciplinary process.  I prosecute and make a recommendation, the Commission members render decision, and sometimes we disagree," Tembeckjian, who serves as the group's counsel, said in a statement.

“I believed removal from office was the appropriate result based on the judge’s egregious misconduct.  A majority of Commission members voted instead to censure.  Naturally, I agree with the three who dissented for removal, but now, as always, we move on in good faith to the next case.”

The full determination appears below.
Holzman.Lee.L.2012.12.13.DET

Bronx Surrogate Lee Holtzman Found Guilty of Misconduct

10 Lawsuits Against The NYPD That You Should Know About

By Victoria Bekiempis Tue., Jun. 12 2012 at 3:38 PM

Categories: NYPD, Victoria Bekiempis

LINK

Yesterday, the Voice reported on a lawsuit filed against the NYPD, which alleges that the department's "Dead or Likely To Die" accident policy leads to botched investigations.

But this is hardly the only suit to hit the department recently.

So we have put together a guide to ten key court claims, which involve everything from negligence to grooming to religion. (Note: some categories include more than one filing, but the number totals ten.)

Pedestrian and Cyclist Deaths

We mentioned this before, but Jacob Stevens is suing the department, claiming officers dragged their feet when investigating the car that fatally struck his wife, Clara Heyworth.
This suit, reportedly the first of its kind, puts to question the NYPD's treatment of cycling and pedestrian deaths.

Hasidic Jewish Beards

NYPD recruit Fishel Litzman, a 38-year-old father of three and Hasidic Jew, was canned Friday because his beard was too long. But, you know, having a beard is part of being a Hasidic Jew and all, so he's planning on suing the department. Of note: The NYPD has had problems with religious dress requirements before. Remember that top brass has long struggled with Sikhs, who grow beards and wear turbans as part of their religion.

Muslim Spy Scheme

Not too long after The Associated Press uncovered the NYPD's surveillance of entire Islamic communities in the Northeast, a major Muslim advocacy group has slammed the department with a civil rights suit, demanding an end to spying.

Anti-Gay Muslim Bias

This news just broke today: A Muslim cop hopeful has decided to take the Police Academy to court, claiming it's discriminating against him because of his anti-gay bias, reports theNew York Post. The paper claims that he checked the "'yes' box next to the question, 'Do you believe that homosexuals should be locked up?'" -- which disqualified him for cadet candidacy. He says that Islam treats homosexuality as a sin, so the department's policies are discriminatory, he claims.

Treatment of Occupy Wall Street Protestors

One class-action suit lambastes the NYPD's barricading tactics . Other Occupy-oriented civil court actions claim First Amendment violations and police harassment of demonstrators.

Arrest Quotas

A Federal judge agreed in April to give class status to 22 New Yorkers who say the NYPD's quota system, which officials deny exists, "leads street cops to hand out summonses even when no crime or violation has occurred just to meet productivity demands from their bosses."

Adrian Schoolcraft, NYPD Whistleblower and NYCLU

As chronicled by Graham Rayman, Adrian Schoolcraft was locked up in a psych ward after claiming his commanders manipulated crime statistics. He made recordings inside the precinct confirming these manipulation allegations, however. He's suing the department, as is the New York Civil Liberties Union. The NYCLU says Schoolcraft's precinct won't turn over public records.

Follow Victoria Bekiempis @vicbekiempis.