CFB ASSESSES PENALTIES AGAINST MULTIPLE CAMPAIGNS
2001 Bronx Borough President Campaign of Pedro Espada, Jr. is Assessed Penalties and Found in Breach of Certification

 

Contact:		FOR IMMEDIATE RELEASE
Kate Schachern	(212) 306-7604

March 9, 2006—The Campaign Finance Board today assessed penalties for violations by the 2001 Bronx Borough President campaign of Pedro Espada, Jr., including reporting of fraudulent contributions and submission of fraudulent claims for public matching funds and accepting an over-the-limit contribution of at least $203,518, and found the campaign to be in breach of certification.  For a complete list of violations and penalties assessed, see below.

In separate matters, the Board also assessed penalties against four 2005 City Council campaigns for failing to respond to the Board’s initial requests for audit documentation.  For a complete list of violations and penalties assessed to these campaigns, see below.

By joining New York City’s voluntary Campaign Finance Program, candidates agree to abide by strict spending limits. In return, candidates in the Program may qualify for public matching funds. Candidates may qualify for additional bonus matching funds rates when facing a high-spending opponent not participating in the Campaign Finance Program.

The Program matches each dollar a New York City resident gives, up to $250 per contributor, with four dollars in public funds, for a maximum of $1,000 in public funds per contributor. The total amount each candidate can receive in matching funds is capped at 55 percent of the spending limit. 

To qualify for public financing, Program participants first must demonstrate that they have adequate support from the public. They do this by meeting a “threshold” of minimum requirements for the amount of money raised and the number of individuals who have contributed to the campaign. Threshold requirements vary by office.

Candidate	Office	Violation	Penalty	Total Penalties
Espada, Jr., Pedro (2001)	Bronx BP	Unreported in-kind corporate contribution from the Bronx-New York Tribune, Inc.	$2,500	$61,750
		Unreported in-kind corporate contribution from the Soundview Healthcare Network	$10,000
		Over-the-limit contribution of more than $203,518 in excess of the contribution limit	$10,000
		Reporting fraudulent contributions and submitting fraudulent claims for matching funds	$10,000
		Submitting fraudulent affidavits from Soundview employee contributors	$10,000
		Misrepresentation/ non-campaign related transaction	$2,500
		Submitting fraudulent contribution documentation for four contributions	$1,000
		Failure to document 25 loans	$2,500
		Failure to report a transaction	$200
		Failure to report an in-kind contribution	$2,000
		$4,250 over-the limit in-kind corporate contribution	$500
		$13,959 over-the-limit in-kind corporate contribution	$2,000
		$3,482 over-the-limit in-kind corporate contribution	$500
		$38,997 over-the-limit in-kind corporate contribution	$3,900
		$1,600 over-the-limit in-kind contribution	$200
		$7,450 over-the-limit in-kind contribution	$1,000
		Failure to disclose bank account information	$500
		Failure to provide bank statements	$500
		Failure to provide deposit slips	$250
		Failure to provide requested documentation	$500
		Impermissible post-9/11 expenditures	$1,000
		Failure to report five possible subcontractors	$200
Gallo, Russell (2005)	CD #47	Failure to respond to initial request for audit documents	$500	$500
Muhammad, Naquan (2005)	CD #41	Failure to respond to initial request for audit documents	$115	$115
Vazquez-Hernandez, Viviana (2005)	CD #38	Failure to respond to initial request for audit documents	$500	$500
Whitehead, John C. (2005)	CD #42	Failure to respond to initial request for audit documents	$100	$100

The 2001 Bronx Borough President campaign of Pedro Espada, Jr. was also found in breach of certification arising from the first seven findings above.

 

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