Senator Reverend Ruben Diaz to His Colleagues: You Can Give My Campaign the Money!

New York State Senator Reverend Ruben Diaz (D-Bronx) issued the following statement after receiving media inquiries about whether or not he would return campaign money received from Senator Carl Kruger, who surrendered to federal authorities yesterday:

"I have no intentions at all to return any money that has been donated to my Re-Election campaign.  Anyone who knows me knows that my votes cannot be bought, and that my convictions will not change because of any campaign contribution by anyone.

I would like for my colleagues who may be confused about what to do with campaign money they received from Carl Kruger before he was indicted, that if any of them feel guilty that they took Carl Kruger’s money for their campaigns and don’t know what to do with it, they can give it to my campaign. I won’t feel guilty at all.

My colleagues, my friends, and my enemies may all feel free to donate directly to my campaign by credit card to by visiting the following address: https://secure.piryx.com/donate/ZxBtmPQf/Ruben-Diaz-for-State-Senate-Committee/

Donations by checks should be made payable to Ruben Diaz for State Senate, and mailed to Ruben Diaz for State Senate,  P.O. Box 229, Bronx, New York.10460"

Assemblyman Dinowitz, Council Member Koppell, and State Senator Espaillat Hold Town Hall Meeting

Thursday night the room was filled with constituents as Assemblyman Jeffrey Dinowitz opened the Town Hall Meeting. He along with City Councilman G. Oliver Koppell, and State Senator Adriano Espaillat were there to hear what their constituents had to say about the upcoming budget cuts proposed, and where each elected official stands . Each elected official gave an opening speech on how they were fighting budget cuts while trying to work with other elected officials statewide to find monies somewhere or ease the drastic cuts proposed. 

Questions ranged from senior centers closing, teacher tenure, empty stores on Johnson Avenue in Riverdale, a baseball field still waiting to be fixed in Van Cortlandt Park, the water filtration plant also in VCP, caps on malpractice suits,  parking meters, and the removal of special needs children from programs by the DOE to name only some of the topics discussed. 

Senator Espaillat said that he was against ending LIFO for teachers, because that would be against gains made in collective bargaining agreements as we see in other states. He added that the pain of the cuts must be spread around so all share and some do not share more than others as we see in this budget proposal. 

Assemblyman Dinowitz blamed Mayor Bloomberg for cost overruns on the water filtration  plant, and said that he wished that we had the two billion dollars in cost overruns for this years budget. On the subject of empty stores on Johnson Avenue Dinowitz said the owner of many of the empty store Friendland Properties "is a pig" by keeping the stores empty and was actually driving out businesses from the street by asking for  exorbitant rents. Councilman Koppell added that the local community board was checking into possible down zoning the area so the empty stores could not be demolished to put up a high rise building.

When it came to the baseball fields still awaiting fixing, Councilman Koppell explained that there was a problem with the winning bidder on the project and that the project had to go to the second bidder. Assemblyman Dinowitz however brought up the proposed ice skating rink by the mayor and VCP Conservancy, saying that that project will get done in eight months. 

Councilman Koppell said that his office will look into the removal of special needs children from current programs by the DOE, and that he believes in the local public schools.  Assemblyman Dinowitz had a different opinion of the DOE by saying that we were bamboozled by the mayor on how good test scores were. He added we found out after the election for mayor that said test score were inflated and much lower in reality. 

A question as to why parking meters were removed for muni-meters was answered by Dinowitz that it is a way to get more money, while Koppell said that there is a savings on the collection of money, and due to smaller cars more can park in the same area. 

As the town hall meeting winded down it seemed that there were many questions that still remained on peoples minds, as they were told by the elected officials that they will be fighting all the way for them. Will it still be three men in a room in Albany, or will there be input from every elected official around the state? When it comes to the city, will Mayor Bloomberg's budget ax swing more than it has to? One will have to wait and see what happens, what gets cut, and what is sparred this year.

 

"MASTERMIND BUILDS AMENITY FILLED, AFFORDABLE APARTMENTS IN THE SOUTH BRONX"

- Mastermind Ltd is pleased to announce that applications are now being accepted for The Tiffany, a 53 unit, residential development, of affordable housing for working class families.  Rental apartments are currently under construction and nearing completion at 1150 Tiffany Street in the Longwood section of the Bronx. The Tiffany is being constructed through the New Housing Opportunities Program (New HOP) and the HOME Programs of the New York City Housing Department Corporation and Department of Housing Preservation and Development’s Multifamily New Construction Participation Loan Program (PLP). Mastermind Ltd most recently built co-ops; a prestigious development in the Morris Heights section of the Bronx, called Washington Bridge View that over looks New York City’s amazing skyline.  These developments are ideal for those working in all boroughs, as access to mass transportation is conveniently located.  Applicants will fall in love with the amenities, and may even be pleasantly surprised to find a great valued residential property in the Bronx.

"Mastermind is committed to the communities in which we develop, we take pride in contributing to this beautiful borough, and invite the kind of change that has garnered, our neighboring Charlotte Street, national attention.  Come Home to Life's Amenities" says Radame Perez, Chief Operating Officer of Mastermind, Ltd.  

The Tiffany consists of 25 one-bedroom apartments units, 23 two-bedroom units & 5 three-bedroom units. This development offers amenities such as pull-up parking, air conditioned and heat in every unit, fitness center, indoor/outdoor community space, private/public terraces, playground, and on-site laundry facility.  Available for occupancy, May 2011. 

About Mastermind Ltd Mastermind Management Ltd is one of the most active commercial real estate development companies in the Bronx, who has helped to continue the physical and economic development of this All American City. Mastermind manages over 3.5 million square feet of real estate throughout the Bronx, Westchester, Manhattan, and New Jersey.  Mastermind Ltd remains committed to its founding traditions of creativity, professionalism and community awareness while providing affordable opportunities to individuals, businesses, and professional service firms, community-based and not-for-profit organizations. For more information call 718-410-9661 or visit www.mastermindltd.com

UPDATE CARL KRUGER INDICTMENT

  Liz Benjamin has an update with the 53 page multiple count indictment against Brooklyn State Senator Carl Kruger which includes several other names here . Also named in the indictment are lobbyist Richard Lipsky, real estate developer Arron Malinsky, Adex Management owner Solomon Kalish, former CEO of Parkway Hospital Robert Aquino, the CEO of Medisys Health Network David Rosen, 55th Assemblyman William Boyland Jr., former 38th Assemblyman Anthony Seminerio, and Mr. Michal Turano. 

  Charges include money laundering, and Conspiracy to deprive New York State and its citizens of their legislators honest services. You just have to read the entire 53 pages to see the scope of the charges.

  Those charged have declared their innocence, and say that they will be exonerated. Stay tuned for more updates.

SoBRO Hosts First Reginald F. Lewis Lecture Series on Successful Franchising

March 4, 2011: SoBRO held a moderated panel discussion today at Hostos Community College that pooled together several experts within the franchising industry to discuss successful business practices. The event was the first in a series of wealth creation lectures named after the investor and business tycoon Reginald F. Lewis, who, in 1987, engineered the largest offshore leveraged buyout in US history. Ms. Loida N. Lewis, Reginald Lewis’s widow and successor as Chairman and CEO of the consumer products conglomerate TLC Beatrice, introduced the discussion. The event was moderated by Professor Hector Lopez, Chairman of the Business Department at Hostos Community College.

After remarks by Professor Lopez, Loida Lewis, and SoBRO’s President and CEO, Phillip Morrow, and Dr. Felix Rodriguez, President of CUNY/Hostos Community College, five panelists provided their perspectives on franchising: Esther Yip, the owner and operator of five Wendy’s franchises; William Landers, Vice President of Business Relationships at HSBC Bank; Radame Perez, Chief Operating Officer of Mastermind Realty; Julie Lusthaus, Partner in the Law Office of Einbinder & Dunn, LLP; and Gary Chipurnoi, Financial Services Professional at New York Life Insurance Company. Ms. Yip stressed the hard work of running a franchise for 25 years, explaining that her days often begin at 5am and does not end until late into the night. She also acknowledged the value of having a supportive franchisor, Wendy’s in her case, that is not inflexible in dealing with start-up operations. Mr. Landers of HSBC emphasized the importance of a sellable business plan when approaching a financial institution for a loan, while Mr. Perez of Mastermind Realty gave informative tips about securing a successful business location, such as searching for a densely-populated neighborhood close to the corner of a city block, to mass transportation, and schools such the bustling retail area on Fordham Road. Ms. Lusthaus provided the audience with legal issues in the franchising agreement to which potential franchisees should be alert, and Mr. Chipurnoi of New York Life underscored that planning for long-range financial goals and leadership succession is just as vital for a business owner as day-to-day questions of financial solvency.

A question-and-answer session allowed the audience of community members and aspiring franchise operators to participate, giving the program an interactive atmosphere. In a lighthearted moment, Ms. Yip described that her sons were not allowed to patronize other fast food stores because she stood by the rule, “never eat from your competitors!”

The Successful Franchising lecture will be followed by other best practice lectures at various Bronx-based colleges in the coming months in order to encourage wealth creation among Bronx entrepreneurs. The series complements SoBRO’s repertoire of small business assistance programs, including the Procurement Technical Assistance Center, Industrial Business Zone Program, and Entrepreneurial Development Program.

SoBRO, a not-for-profit community development corporation, has been serving the South Bronx since 1972.  SoBRO’s programs include adult education and workforce training, real estate and community development, technical and financial assistance for businesses, and an array of programs for youth. For additional information about SoBRO, call 718 292-3113 or visit www.sobro.org.

LIU STATEMENT ON DOE CONTRACT REJECTION

City Comptroller John C. Liu stated the following in response to inquiries about his rejection of a $20 million teacher recruitment contract for the Department of Education (DOE):

“Twenty million dollars to recruit teachers as the DOE insists on laying off thousands of teachers seems curious at best,” said Comptroller Liu.

The five-year contract, with the “New Teacher Project,” was submitted in early February. The DOE was seeking the contract to “recruit, select, train and provide job search support to non-traditional candidates to become public school teachers.”

The contract submission comes at a time when agencies are being asked to cut services, including the DOE’s plan to lay off 4,600 teachers.

The Independent Democratic Conference

Independent Democratic Conference Plan would save $37 million; Strengthen State IG Office

The Independent Democratic Conference today released a plan to streamline New York's patchwork Inspector General system and further empower the State Inspector General to be the top watchdog of New York's bureaucracy.

This proposal, which would eliminate overlapping and duplicative layers of state government and consolidate what are often competing operations, would result in $37 million in savings.

“Each of these specialized inspectors general was established with the best of intentions, but over time it has led to an inefficient and increasingly unaffordable system,” said Senator David J. Valesky, (D-Oneida.) “The Independent Democratic Conference's aim is to make the necessary changes that will allow a more effective and efficient system to root out fraud and abuse in our state government.”

Currently, the state has an overall inspector general, as well as specialized IGs that are intended to oversee the MTA, Medicaid fraud, welfare fraud, and Worker's Compensation Fund. These “boutique” IGs are in statute, which prohibits the State Inspector General from pursuing investigations in these areas. Former Inspector General Joseph Fisch railed against this probation and advocated for its change.

“Bureaucracy should not stand in the way of oversight,” Senator Jeffery D. Klein, (D-Bronx/ Westchester), said. “If someone with multiple state contracts is defrauding one agency, they are likely committing fraud upon another part of state government. The IDC's plan would allow the Inspector General to pursue malfeasance wherever it may hide.”

Additionally, many state agencies have administratively established their own inspector generals that function as internal affairs units. While the IG's Office is not barred from pursuing cases in these agencies, the IDC is concerned about the overall efficiency of this model.

Governor Cuomo has also expressed concern with the current proliferation of inspectors general. In the Fourth Volume of his New New York Agenda, “Clean Up Albany; Make It Work,” he called for a review of the current structure as part of his approach to create an “effective system against government corruption.”

The IDC's plan includes:

• Empowering the State IG to pursue wrongdoing in every part of state government.
  The IDC plan calls for eliminating any statutory prohibition that would exempt a government entity from State IG scrutiny. Former Inspector General Fisch requested this authority during testimony he gave to the Senate Investigations & Government Operations Committee in 2009:

“Right now I do not have, statutorily, the authority to investigate agencies that have their own inspector general,” Fisch said. “The perfect example is the MTA. The MTA has its own inspector general. If that impediment did not exist, I would very quickly undertake an investigation of the MTA.”

• Establishing a dedicated MTA Oversight Unit within the State Inspector General's Office. Using funding currently allocated to the MTA Inspector General, this unit would be used to exercise the IG's new-found jurisdiction of the authority. This new structure would preserve much-needed oversight of the MTA and its vendors, while, if warranted, enabling the full resources of the State Inspector General's Office to be used to pursue an investigation.
• Merging the Medicaid and Welfare Inspectors General with the Attorney General's Medicaid Fraud Control Unit. All three entities are charged with pursuing fraud within the Medicaid system. However, the Welfare Inspector General, who is charged with pursuing Welfare recipient fraud throughout New York State has a staff of seven employees. By contrast, the Office of the Medicaid Inspector General has a staff of more than 650 and a budget of $80.4 million. It also reported -$66,000 in fraud recoveries, according to its most recent report. The AG's Medicaid Fraud Control Unit reported fraud recoveries of $283.2 million in 2009. The IDC recommends that, in order to fulfill these added responsibilities, federal funding that is currently going to the Medicaid Inspector General (projected at $47.1 million in the 2011-2012 budget) be reallocated to the Attorney General's Office.

• Directing the Governor's Spending and Government Efficiency (SAGE) Commission to conduct a comprehensive review of all non-statutory IG offices. The SAGE commission should determine if any duplications exist, and make necessary recommendations for further efficiencies. A search of the Department of Civil Service Web site found at least 523 state agency positions that have investigative functions.

“At a time when New York State is facing a $10 billion deficit it is critical to streamline the state’s central watchdog in an effort to efficiently root out systemic corruption, fraud and waste,”  Senator David Carlucci (D-Rockland/Orange) said.  “We have identified four areas of consolidation that are projected to save a combined $37 million to the state which can be used to help plug the state’s current budget deficit.”

The projected savings directed by the IDC's plan are outlined below. (Since the Workers Compensation Fraud Inspector General is funded through a special revenue fund and not taxpayer dollars, the IDC recommends no change in its status. However, by lifting the statutory exemptions, the State IG will have the authority to also pursue Workers Comp cases when appropriate.)

Inspector General’s Offices	Pre-Consolidation	Post-Consolidation
	2011-12 Budget	2011-12 Budget	Savings (General Fund Unless Noted )
State IG	$5.6 million	$11.2 million	N/A
Welfare (OWIG)	$1.6 million	$0	$0.4 million
Workers’ Comp (OFIG)	N/A	N/A	N/A
MTA IG	$14 million	$1.4 million	$7 million*
Medicaid (OMIG)	$80.4 million	$0	$29.6 million
MFCU	$47.9 million	$95 million	N/A
Total Savings			$37 million

*Indicates savings from designated MTA fund

“This is a win-win,” said Senator Diane Savino, (D-Staten Island/ Brooklyn). “By streamlining the state’s inspectors general system, we ensure that taxpayer dollars are spent as wisely and efficiently as possible and maximize the state’s ability to root out corruption and bring accountability to our government.

BREAKING NEWS

It is being reported that Brooklyn State Senator Carl Kruger will surrender to federal prosecutors tomorrow. 

We will have more details as they become available, but this is said to be an ongoing investigation for several years.