m. carmel corcoran dear ms. corcoran · friends of bill de blasio-2009 3/f/r0007975 07/11/11...

June 18, 2013

M. Carmel CorcoranFriends of Bill de Blasio - 2009

Dear Ms. Corcoran:

Please find attached the New York City Campaign Finance Board’s (the “CFB” or “Board”) Final Audit Report for the 2009 campaign of Bill de Blasio (the “Campaign”).The report is based on a comprehensive review of the Campaign’s financial disclosure statements and submitted documentation, and incorporates the Board’s final determination of May 9, 2013 (attached). As detailed in the report, the Campaign failed to demonstrate compliance with the Campaign Finance Act (the “Act”) and the Rules of the Board (the “Rules”).

The Campaign received a post-election public funds payment of $4,448, which reflects $20,500 in penalties assessed and withheld, as detailed in the attached Final Board Determination.

By July 9, 2013, the Campaign must demonstrate to the CFB that the public funds were used to pay outstanding liabilities. The Campaign received a notice that listed the reported outstanding liabilities for which the public funds may be used and explained how to document proper use. The Campaign will be required to return any public funds that were not properly spent.

If you believe you are eligible to submit a Rule 5-02(a) petition regarding your public funds determination, please call the Legal Unit at 212-306-7100.

The January 15, 2010 disclosure statement (#16) was the last disclosure statement the Campaign was required to file with the CFB for the 2009 elections. If the Campaign raises additional contributions to pay outstanding liabilities, please note that all 2009 election requirements, including contribution limits, remain in effect. The Campaign is required to maintain its records for six years after the election, and the CFB may require the Campaign to demonstrate ongoing compliance. See Rules 3-02(b)(3), 4-01(a), and 4-03. In addition, please contact the Board of Elections for information concerning their separate filing requirements.

M. Carmel CorcoranFriends of Bill de Blasio - 2009 -2- June 18, 2013

The CFB thanks you for your cooperation during the 2009 election cycle. Should you have any questions about the enclosed report, please contact the Audit Unit at 212-306-5250 or [email protected].

Sincerely,

Julius PeeleDirector of Auditing and Accounting

c: Bill de Blasio

John W. BurnsFriends of Bill de Blasio - 2009

Laurence Laufer, Esq.Genova, Burns, Giantomasi & Webster

Attachments

cchoy

Typewritten Text

signature on original

1

June 18, 2013

CAMPAIGN FINANCE BOARDFINAL AUDIT REPORT OF

FRIENDS OF BILL DE BLASIO

BACKGROUND

Among the purposes of the Act are to diminish the role and influence of private

money in New York City elections, to increase the information available to the public

about elections and candidates' campaign finances, and to reduce the potential for actual

or perceived corruption. The CFB is a nonpartisan, independent city agency that serves

the public interest by enhancing the role of New York City residents in the electoral

process. All candidates for the five covered offices - mayor, public advocate,

comptroller, borough president, and City Council member - are required to disclose all

campaign activity to the CFB.

All candidates must adhere to strict contribution limits and the ban on

contributions from corporations, and beginning January 1, 2008, partnerships and limited

liability entities. Additionally, participating candidates are prohibited from accepting

contributions from unregistered political committees. The CFB also administers the

voluntary Campaign Finance Program (the “Program”). Candidates who voluntarily

participate in the Program can qualify to have private contributions matched with public

money in exchange for agreeing to strict spending limits.

Friends of Bill de Blasio - 2009 2 June 18, 2013

CAMPAIGN INFORMATION

The table below provides detailed information about the Campaign:

Name: Bill de Blasio ID: 326Office Sought: Public Advocate Certification Date: June 5, 2009Classification: Participant Ballot Status: Primary, GeneralCommittee Name: Friends of Bill de Blasio - 2009 Party: Democratic, Working FamiliesPrimary Election Date: September 15, 2009Runoff Election Date: September 29, 2009 Contribution Limit: General Election Date: November 3, 2009 Primary/General: $4,950Other Committees: See Finding #10 Runoff: $2,475

Public Funds: Expenditure Limit:Received: $2,251,389 2006-2008: $290,000Returned: $0 2009 Primary: $3,850,000

2009 Runoff: $1,925,0002009 General: $3,850,000


OBJECTIVES

The overall objective of the CFB’s audit was to determine whether the Campaign

complied with the Act and Rules. Specifically, CFB staff evaluated whether (1) the

Campaign accurately reported financial transactions and maintained adequate books and

records; (2) the Campaign adhered to contribution limits and prohibitions; (3) the

Campaign disbursed funds in accordance with the Act and Rules and complied with the

expenditure limits; and (4) the correct amount of public funds was received, any

additional funds are due, or any return of public funds is required in accordance with the

Act and Rules.

SCOPE AND METHODOLOGY

Prior to the election, CFB staff performed an initial review of the Campaign’s

reporting and documentation of contributions for public funds eligibility and compliance

with the Act and Rules. After the election, CFB staff performed an audit of financial

disclosure statements one through sixteen (see Appendix #1), covering the period from

January 12, 2006 through January 11, 2010. The audit was conducted in accordance with

generally accepted government auditing standards (GAGAS) and included tests of

records and other auditing procedures as necessary. This audit was performed in

accordance with the audit responsibilities of the CFB as set forth in Administrative Code

§3-710.

CFB staff examined the bank statements submitted by the Campaign from May

19, 2006 through September 28, 2012 and reconciled transactions to the Campaign’s

disclosure statements during this period to verify that all financial transactions were

accurately reported and documented.


CFB staff conducted a comprehensive review of all financial transactions reported

in the Campaign’s disclosure statements to determine whether contribution limits and

prohibitions were adhered to. Additionally, CFB staff reviewed the Campaign’s reported

expenditures to ensure that the Campaign disbursed funds in accordance with the Act and

Rules and complied with the expenditure limits.

CFB staff reviewed the Campaign’s eligibility for public matching funds, all

matchable contribution claims by the Campaign for compliance with the Act and Rules,

and the Campaign’s disbursements of public funds. The review was done to ensure that

the correct amount of public funds was received by the Campaign, and to determine

whether any additional public funds are due or whether any return of public funds by the

Campaign is necessary.

On June 29, 2012, CFB staff issued a Draft Audit Report to the Campaign that

contained preliminary findings of non-compliance with the Act and Rules and

recommended corrective actions.

On December 27, 2012, CFB staff issued a Notice of Alleged Violations,

Recommended Penalties (“Penalty Notice”). The Campaign subsequently responded to

the Penalty Notice.

On March 14, 2013, CFB staff issued a Supplemental Request for Information

and Documentation (“Supplemental Request”). The Campaign subsequently responded to

this request.

Based on CFB staff recommendations and the Campaign’s responses, the Board

issued this Final Audit Report.


OTHER MATTERS

� Prior to the 2009 primary election, the Campaign responded to CFB inquiries

regarding expenditures to Data and Field Services, Inc. and its relationship to the

Working Families Party.

See http://www.nyccfb.info/press/news/press_releases/2009-09-02.pdf.

The Campaign’s responses included information, documentation, and sworn

testimony. The Campaign provided additional documentation and information in

response to the Draft Audit Report. The Board will take no further action on these

matters other than to make them a part of the Candidate’s record with the Board.

� The CFB investigated the matter of whether expenditures by SEIU Local 32BJ

were independent of the Campaign. On September 11, 2009, the Board withheld

$25,000 in public funds pending the outcome of its inquiry. The Campaign was

asked to demonstrate that two mailers were independent of the Campaign and to

answer detailed questions based on the factors for determining whether

expenditures are independent. See Board Rule 1-08(f). The Campaign’s responses

included affidavits from a union representative and the vendor that produced the

pieces. The Board will take no further action on these matters other than to make

them a part of the Candidate’s record with the Board.

� The Board made the following statement at its May 9, 2013 meeting:

“There was an additional staff recommendation of a penalty of $2,000 for

accepting an over-the-limit in-kind contribution from SEIU Local 1199. There

was extensive deliberation by the Board during its Executive Session and it

became clear that two members of the Board who are present would have voted to

impose that penalty. One person would have voted not to impose that penalty.


And since under the Board's rules it takes three votes to impose a penalty, the

Board elected to proceed and not impose the penalty and to close the audit.”


CONCLUSION

The Campaign failed to demonstrate compliance with the Campaign Finance Act

and the Rules of the Board as detailed below:

Disclosure Findings - Accurate public disclosure is an important part of the CFB’s mission. Findings in this section relate to the Campaign’s failure to completely and timely disclose the Campaign’s financial activity.

� The Campaign did not file the required daily disclosure statements during the two weeks preceding the 2009 primary election. (see Finding #1). The Board found the Campaign in violation and assessed a $300 penalty.

� The Campaign did not report or inaccurately reported financial transactions to the Board (see Finding #2). The Board found the Campaign in violation and assessed a $300 penalty.

� The Campaign did not disclose payments made by a vendor to subcontractors (see Finding #3). The Board found the Campaign in violation and assessed a $50 penalty.

Contribution Findings - All campaigns are required to abide by contribution limits and adhere to the ban on contributions from prohibited sources. Further, campaigns are required to properly document and disclose all contributions. Findings in this section relate to the Campaign’s failure to comply with the requirements for contributions under the Act and Rules.

� The Campaign did not report that contributions were received through intermediaries (see Finding #4).

� The Campaign did not document the fair market value of in-kind contributions received and/or did not disclose in-kind contributions received (see Finding#5). The Board found the Campaign in violation and assessed a $50 penalty.

� During the pre-election period, the Campaign accepted nine over-the-limit contributions. The Board found the Campaign in violation and assessed $1,625in penalties (see Exhibit V).

� During the pre-election period, the Campaign accepted the following corporate

contributions: Haym Salomon Home for Nursing, $250 on April 8, 2008; Sheepshead Nursing and Rehab, $250 on April 8, 2008; and North Star Develop. Corp LLC on December 28, 2007. The Campaign refunded these contributions on November 10, 2008. The Board found the Campaign in violation and assessed $500 in penalties.


� During the pre-election period, the Campaign accepted eight unregistered

political committee contributions. The Board found the Campaign in violation and assessed $1,750 in penalties (see Exhibit VI).

� During the pre-election period, the Campaign accepted seven over-the-doing

business limit contributions and failed to issue a refund within 20 days of CFB notification. The Board found the Campaign in violation and assessed $1,250in penalties (see Exhibit VII).

Expenditure Findings - Campaigns participating in the Program are required tocomply with the spending limit. All campaigns are required to properly disclose and document expenditures and disburse funds in accordance with the Act and Rules. Findings in this section relate to the Campaign’s failure to comply with the Act and Rules related to its spending.

� The Campaign maintained a petty cash fund greater than $500 (see Finding #6). The Board found the Campaign in violation and assessed $345 in penalties.

� The Campaign made expenditures that were not in furtherance of the Campaign (see Finding #7). The Board found the Campaign in violation and assessed a $1,598 penalty.

� The Campaign made post-election expenditures that were not permissible and election-related (see Finding #8). The Board found the Campaign in violation and assessed a $1,132 penalty.

� The Campaign did not provide requested documentation for reported transactions (see Finding #9). The Board found the Campaign in violation and assessed $1,600 in penalties.

Other Findings

� The Campaign commingled 2009 election cycle receipts and expenditures with receipts and expenditures for the 2013 committee (see Finding #10). The Board found the Campaign in violation and assessed a $10,000 penalty.


FINDINGS AND RECOMMENDATIONS

1. Daily Pre-Election Disclosure – Statements of Contributions/Expenditures

During the two weeks preceding an election, if a candidate: (1) accepts a contribution or

contributions from a single source or loan in excess of $1,000; or (2) makes an expenditure in

excess of $20,000; during the 14 days preceding an election, the candidate shall report such

contributions, loans, and expenditures to the Board in a disclosure, received by the Board within

24 hours after it is accepted or made. These contributions and expenditures must also be

reported in the Campaign’s next disclosure statement. See Rule 3-02(e).

The Campaign did not file the required daily disclosures to report transactions that were

reported on its subsequent financial disclosure statements (see Exhibit I).

Previously Provided Recommendation

You must explain why your failure to file the daily disclosures is not a violation. If you

believe you filed the required daily disclosures, you should submit proof of the submission.

Your Campaign cannot file any daily pre-election disclosures now.

Campaign’s Response

In response to the Draft Audit Report, the Campaign stated that it was unable to file the

daily disclosure on September 8, 2009 because the CFB server was down. The Campaign also

stated it faxed the documentation on that date. However, there is no record of the server being

down or a fax coming from the Campaign, on or around that date.

Board Action

The Board found the Campaign in violation and assessed a $300 penalty.


2. Financial Disclosure Reporting - Discrepancies

Campaigns are required to report every contribution, loan, and other receipt received, and

every disbursement made. See Administrative Code §3-703(6); and Rule 3-03. In addition,

campaigns are required to deposit all receipts into an account listed on the candidate’s

Certification. See Administrative Code §3-703(10); and Rule 2-06(a). Campaigns are also

required to provide the CFB with bank records, including periodic bank statements and deposit

slips. See Administrative Code §§3-703(1)(d), (g); and Rules 4-01(a),(b)(1),(f).

The Campaign provided CFB staff with its bank and merchant account statements

covering the following periods:

Bank Account Type Statement PeriodJP Morgan Chase account ending 8865 Checking May 19, 2006 to September 28, 2012JP Morgan Chase account ending 7558 Checking May 09, 2008 to January 31, 2010JP Morgan Chase account ending 9654 Checking July 16, 2009 to January 31, 2010Express EMPS Merchant Account June 1, 2007 to November 31, 2011

a) The Campaign failed to report 13 transactions totaling $7,255.10 that appeared on its

bank statements (see Exhibit II).

b) The Campaign reported 37 transactions totaling $17,182.75 that do not appear on its bank

statements (see Exhibit III).

c) The Campaign over-reported transactions totaling $186.39 and under-reported

transactions totaling $1,559.82 (see Exhibit IV).

d) The Campaign did not provide copies of credit card statements that were paid by the

following checks drawn on the account ending in #8865: Check #1004, Check #1013,

Check #1049, Check #1073, Check #1107, and Check #1146.



a) You must provide documentation for and amend your disclosure statements to report

these unreported transactions.

b) For each transaction reported in the Campaign’s disclosure statements but not appearing

on the Campaign’s bank statements, you must provide evidence to show that the

transaction cleared the bank (i.e., a copy of the front and back of the check, or the

missing bank statement), was reported in error, or amend your disclosure statement to

void the check and forgive the expenditure payment. Any forgiven liabilities will be

considered an in-kind contribution.

c) For inaccurately reported transactions, you must amend your disclosure statements to

accurately report the transactions.

d) You must provide the requested credit card statements to document the expenditures

reported as paid by each listed check.

Please note that any newly entered transactions will only appear as new transactions in an

amendment to the last disclosure statement, even if the transaction dates are from earlier

periods. Also note that the Campaign must file an amendment for each disclosure statement in

which transactions are being modified. Once all data entry is completed, you should run the

Modified Statements Report in C-SMART to identify the statements for which amendments must

be submitted. If any new transactions have been added, you must amend Disclosure Statement

16.


a) The Campaign did not amend its disclosure statements to report these transactions.

b) In response to the Draft Audit Report, the Campaign deleted four transactions (see

Exhibit III note 1) and also changed four transactions amounts to zero (see Exhibit III


note 2). The Campaign failed to provide an explanation for deleting four transactions and

amending four transaction amounts to zero. The Campaign also failed to provide

documentation to show that the remaining twenty-nine transactions cleared the

Campaign’s bank account.

c) The Campaign responded to the Draft Audit Report and stated that it amended its

disclosure statement to reflect the correct amounts. However, the Campaign’s disclosure

statements do not indicate that these transactions were corrected.

d) The Campaign responded to the Draft Audit Report and stated that it would request the

credit card statements but was having difficulty obtaining them.

Board Action

a-c) The Board has taken no further action on these matters other than to make them a part of

the Candidate’s record with the Board.

d) The Board found the Campaign in violation and assessed a $300 penalty (see Final Board

Determination Violation (“Violation”) #6).

3. Possible Subcontractors

Subcontractors are vendors that a campaign’s vendor may hire to supply goods and/or

services. If a vendor hired by a campaign pays a subcontractor more than $5,000, the campaign

must report the vendor, the name and address of the subcontractor, the amounts paid to the

subcontractor, and the purpose for the subcontracted goods/services. See Rule 3-03(e)(3).

The vendor listed below received large payments and may have subcontracted goods

and/or services. Therefore, the Campaign may not have reported subcontractors used by this

vendor, as required:

Payee Amount PaidAstoria Graphics, Inc. $15,683.37



You must provide a copy of the Subcontractor Form (see the 2009 Campaign Finance

Handbook or CFB’s website, www.nyccfb.info) to the vendor for completion in order to verify

whether or not subcontractors were used by the above vendors. The completed form must be

submitted with your response. In addition, if subcontractors were used and paid more than

$5,000, you must amend your disclosure statements to report subcontractor information. If the

vendor does not complete the Subcontractor Form, you must submit documentation of your

attempts to obtain this information as part of your response.


In response to the Penalty Notice, the Campaign provided a memo from the Campaign’s

attorney stating that it attempted to call the vendor three times. However, the Campaign failed to

provide adequate documentation of its attempts to contact the vendor.

Board Action

The Board found the Campaign in violation and assessed a $50 penalty (see Violation

#7).

4. Possible Unreported Intermediaries

Campaigns are required to report all contributions delivered or solicited by an

intermediary. Intermediaries are people who solicit and/or deliver contributions to campaigns.

See Administrative Code §3-702(12), 3-703(6); Rules 3-03(c)(1) and (7).

CFB staff’s review of submitted intermediary statements revealed that the Campaign did

not report the intermediary for the following contribution:

ContributorStatement/Schedule/Transaction ID Date Amount Intermediary Name

Thomas Montivel-Cohen 2/ABC/R0001231 01/11/07 $500.00 Laura Imperiale



You must amend your disclosure statement to reflect this information.


In response to the Draft Audit Report, the Campaign stated it amended its disclosure

statement to report the correct intermediary. However, the Campaign failed to amend its

reporting to report the intermediary.

Board Action

The Board has taken no further action on this matter other than to make it a part of the

Candidate’s record with the Board.

5. Undocumented or Unreported In-Kind Contributions

In-kind contributions are goods or services provided to a campaign for free, paid by a

third party, or provided at a discount not available to others. The amount of the in-kind

contribution is the difference between the fair market value of the goods or services and the

amount your Campaign paid. Liabilities for goods and services for the Campaign which are

forgiven, in whole or part, are also in-kind contributions. In addition, liabilities for goods and

services outstanding beyond 90 days are in-kind contributions unless the vendor has made

commercially reasonable attempts to collect the debt. An in-kind contribution is both a

contribution and expenditure subject to both the contribution and expenditure limits. See

Administrative Code §3-702(8) and Rules 1-02 and 1-04(g). Personal services provided without

compensation by individuals volunteering a portion or all of their time on behalf of a candidate

or authorized committee are not in-kind contributions. See Administrative Code §3-702(8) and

Rule 1-02.


Campaigns are required to report all in-kind contributions they receive. See

Administrative Code §3-703(6) and Rule 3-03. In addition, campaigns are required to maintain

and provide the CFB with documentation demonstrating the fair market value of each in-kind

contribution. See Administrative Code §3-703(1)(d),(g); Rules 1-04(g)(2) and 4-01(c).

a) The Campaign reported but failed to adequately document the following in-kind

contribution, and as a result the fair market value of the in-kind contribution could not be

substantiated:

NameStatement/Schedule/Transaction ID

PurposeCode

ReceivedDate Amount

Noe, Ari 9/D/R0009559 FUNDR 05/07/09 $350.00

b) The Campaign submitted a letter from the Brad Lander for City Council Campaign which

stated it made an in-kind contribution in the amount of $225 to the Campaign for use of

office space at 456 Fifth Avenue from September 21, 2009 through September 29, 2009.

The letter also stated that the Brad Lander for City Council campaign would contribute

telephone service and utilities and would provide the value of this in-kind contribution at

a later time. The Campaign failed to report and provide documentation from Brad Lander

for City Council for the telephone and utility charges.

c) The Campaign reported on a daily disclosure statement a bill from Global Strategy

Group, LLC for $29,700.00. The Campaign only reported a payment of $13,000.00

(12/F/R0012493) in its subsequent financial disclosure statement.


a) You must provide supporting documentation for the in-kind contribution listed.

Supporting documentation may include, but is not limited to, invoices, appraisals, and

estimates of the fair market value. Documentation must include the name and address of


the contributor, provide a detailed description of the goods/services, and explain the cost

basis for valuing each in-kind contribution from the reported contributor. If your

documentation is from a vendor whom the contributor paid, you must also provide

evidence that the reported contributor paid the vendor, e.g., a copy of the cancelled

check, or a signed statement from the contributor verifying that payment for the in-kind

contribution was made by them. If your Campaign cannot document a fair market value,

you must include an explanation why you cannot provide adequate documentation.

b) The Campaign must provide a letter and/or documentation from the Brad Lander for City

Council Campaign detailing the value of the in-kind contribution for telephone service

and utility charges. The Campaign must also explain why it failed to report the

transactions and amend its disclosure statement to report the in-kind contributions.

c) You must explain the discrepancy between the daily disclosure statement and reported

expenditures:

� If any of the liability remains outstanding, you must provide documentation such as

current invoices, collection notices, and/or letters from creditor proving that the debt

remains outstanding, and amend your disclosure statement to report the outstanding

liability.

� If you have paid Global Strategies the full amount disclosed, you must amend each

disclosure statement, provide documentation for the payment and explain your failure

to report the payment.

� If any liability has been forgiven, you must amend your disclosure statement by

forgiving the bill in C-SMART and explain your initial failure to report the in-kind

contribution. Any forgiven liability will be considered an in-kind contribution.



a) The Campaign responded to the Draft Audit Report and stated “the committee submitted

all documentation in its possession regarding the in-kind contribution.” The Campaign

failed to provide documentation for the in-kind contribution.

b) In response to the Draft Audit Report, the Campaign provided a letter from the Brad

Lander for City Council Campaign which stated the value of the in-kind for utilities and

telephone services. However, the Campaign did not amend its disclosure statement to

report this in-kind contribution.

c) In response to the Draft Audit Report, the Campaign stated that check #1614 for

$29,700.00 was voided. The Campaign also provided a copy of the cancelled check

(check #1642) for $13,000. However, the Campaign failed to provide the invoice for this

expenditure to show that the Campaign paid the vendor in full and that the vendor did not

give the Campaign an in-kind contribution.

Board Action

a) The Board found the Campaign in violation and assessed a $50 penalty (see Violation

#6).

b-c) The Board has taken no further action on these matters other than to make them a part of

the Candidate’s record with the Board.

6. Petty Cash Exceeding $500

Campaigns are prohibited from maintaining a petty cash fund greater than $500. See

Rule 4-01(e)(2). Campaigns are also prohibited from spending amounts greater than $100 except

by checks from a bank account reported to the CFB and signed by the Campaign’s authorized

signatory. See Rule 1-08(i).


The Campaign made two cash withdrawals which resulted in a petty cash fund that

exceeded the $500 limit:

Date Amount06/02/09 $2,475.0009/25/09 $2,000.00


You must explain and provide evidence as to why these withdrawals do not constitute

violations of Board Rules.


The Campaign responded to the Draft Audit Report and stated “the Campaign regrets this

error.”

Board Action

The Board found the Campaign in violation and assessed a $345 penalty (see Violation

#8).

7. Expenditures – Campaign Related

Campaigns may only spend campaign funds for items that further the candidate’s

election. Campaigns must keep detailed records to demonstrate that campaign funds were used

only for those purposes. Expenditures for purposes other than the candidate’s election are

considered “non-campaign related.” The law gives examples of the types of expenditures that

are presumed to be campaign related and non-campaign related, although in certain

circumstances even expenditures of the types listed as appropriate might be questioned. Among

the factors the CFB considers relevant are: the quality of the documentation submitted; the

timing and necessity of the expenditure; the amount of the expenditure and/or all expenditures of

a specific type in relation to the Campaign’s total expenditures; and whether the expenditure is


duplicative of other spending. See N.Y.S. Election Law §14-130; Administrative Code §3-

702(21), 3-703(1)(d), (g), and 3-710(2)(c); and Rules 1-03(a), 4-01, and 5-03(e), Advisory

Opinion No. 2007-3 (March 7, 2007).

The Campaign reported expenditures totaling $15,986.38 which from the reporting and/or

documentation appears to be non-campaign related (see Exhibit VIII).


You must provide documentation and explain how each expenditure listed in Exhibit VIII

is campaign related.


In response to the Penalty Notice, the Campaign provided a spreadsheet which listed an

explanation and also provided additional documentation for some transactions. However, the

Campaign failed to provide documentation that demonstrated that these expenditures were

campaign related.

Board Action

The Board found the Campaign in violation and assessed a $1,598 penalty (see Violation

#9).

8. Expenditures – Post Election

After the election, campaigns may only make disbursements for the preceding election, or

for limited, routine activities involving nominal costs associated with winding up a campaign and

responding to the post-election audit. Campaigns have the burden of demonstrating that post-

election expenditures were for the preceding election or were for such limited and routine

activities. See Administrative Code §3-710(2)(c) and Rule 5-03(e)(2).


The Campaign reported expenditures totaling $11,325.12 which may be improper post-

election expenditures due to their timing, amount and/or purpose (see Exhibit IX).


You must provide documentation and information showing that each expenditure listed

on Exhibit IX was for the preceding election or was a routine and nominal expenditure

associated with winding up your Campaign.


In response to the Penalty Notice, the Campaign provided an explanation and

documentation for some of the transactions. However, the Campaign failed to provide

documentation that demonstrated these expenditures were permissible post-election

expenditures.

Board Action

The Board found the Campaign in violation and assessed a $1,132 penalty (see Violation

#10; see also Finding #10).

9. Undocumented Transactions

Campaigns are required to provide copies of checks, bills, or other documentation to

verify all transactions reported in their disclosure statements. See Administrative Code §§3-

703(1)(d), (g); and Rule 4-01.

a) The Campaign did not provide supporting documentation for the following transactions:

Name Transaction Type Statement/Schedule/ Transaction ID Date Amount

Kotchmar, Rich Expenditure Refund 9/L/R0009479 07/02/09 $6,083.80Luftglass, Richard Contribution Refund 10/M/R0009768 07/27/09 $25.00Aprea, Roseann Contribution Refund 15/M/R0014842 10/02/09 $100.00


b) The Campaign contacted the CFB on January 12, 2011 and stated that the 2013

committee (New Yorkers for de Blasio) received contributions that were intended for the

2009 committee (Friends of Bill de Blasio-2009). On January 14, 2011, the Campaign

was instructed how to report these transactions and directed to write a memo to file

including a list of all of the mistaken contributions, and the contribution backup

documentation. The 2009 committee reported receiving the following reimbursement

from the 2013 committee for misdeposited contributions on its BOE January 2011

periodic report:

Name Date AmountNew Yorkers for de Blasio 01/11/11 $36,030.00

c) Invoices from Struble Eichenbaum and Red Creek indicated that the Campaign had paid

$23,142 for a photo shoot, but the invoices indicated different total cost for the shoot

($31,519 for Struble and $30,856 for Red Creek) (see Exhibit Xa and Xb).


a) The Campaign must submit documentation for each transaction.

b) The Campaign must provide documentation which includes the contributor names and

contribution amounts that were misdeposited into the wrong account. The Campaign

must also provide the bank statement showing the reimbursement check leaving the 2013

committee bank account.

c) The Campaign must submit documentation and explain the discrepancy.



a) In response to the Draft Audit Report, the Campaign stated that it had requested a copy of

the contribution refunds for Richard Luftglass and Roseann Aprea. However, the

Campaign failed to provide a copy of the contribution refunds. In response to Transaction

9/L/R0009479, the Campaign stated that this was a refund for a payment made to Mr.

Kotchmar by mistake. The Campaign failed to provide documentation for this

expenditure refund.

b) In response to the Penalty Notice, the Campaign provided a list of contributors with

amounts, a copy of the reimbursement check and the corresponding bank statement.

However, the Campaign failed to provide the backup documentation for each

contribution as requested.

c) In response to the Draft Audit Report, the Campaign stated “we believe Red Creek

invoice contains a typographical error, which may have resulted in a 1.5 percent

difference.” The Campaign failed to provide documentation from Red Creek that stated

that there was an error on its invoice.

Board Action

a) The Board has taken no further action on the two contribution refunds other than to make

them a part of the Candidate’s record with the Board. The Board found the Campaign in

violation and assessed a $50 penalty for Transaction 9/L/R0009479 (see Violation #6).

b) The Board found the Campaign in violation and assessed a $1,550 penalty (see violation

#12).

c) The Board has taken no further action on this matter other than to make this a part of the

Candidate’s record with the Board.


10. Commingling of Funds

Campaigns must deposit all receipts in the account of the principal committee. See

Administrative Code § 3-703; and Rule 2-06(a). Receipts accepted for one election cannot be

commingled in an account with receipts accepted for any other election, except for primary and

general elections for the same office in the same calendar year. Rule 2-06(b). In addition,

receipts deposited in an account shall not be used for any purpose other than the election for

which that account was established. Rule 1-03(a)(2).

After filing its final disclosure statement with the CFB, the Campaign reported

$136,363.03 in expenditures by the 2009 committee on its periodic BOE filings. The Campaign

subsequently stated that a portion of these expenses were not related to the 2009 Campaign.

Although the expenditures in question were primarily made by the 2009 committee, an

expenditure is presumed to be made for the first election following the day it is made. See Board

Rule 1-08(c)(1). As a result of the ongoing practice of commingling and improperly depositing

funds, on March 14, 2013, CFB staff issued a Supplemental Request for documents necessary to

properly allocate the expenditures between the two committees.

a) The Campaign made expenditures totaling $32,620.37 that cannot be allocated to a

particular committee as a result of commingling of activity between the 2009 and 2013

campaigns (see Exhibit XI).

b) The Campaign contacted the CFB on August 2, 2010 and stated that the 2009 committee

(Friends of Bill de Blasio - 2009) made expenditures after January 11, 2010 that should

be attributed to the 2013 election (New Yorkers for de Blasio). The Campaign was

advised that the 2013 committee should reimburse the 2009 committee by check. The

Campaign was also advised to maintain documentation supporting the expenditures

reimbursed by that payment, including contracts, invoices, receipts, and materials. Based


on CFB staff review of New Yorkers for de Blasio’s reporting, the 2013 committee

reported the following expenditures to the 2009 committee as reimbursements (see also

Exhibit XII):

Name

Statement/Schedule/ Transaction ID Date Amount Notes

Friends of Bill de Blasio-2009 2/F/R0005521 09/29/10 $11,321.10 [1]Friends of Bill de Blasio-2009 2/F/R0006384 01/10/11 $2,815.00 [1]Friends of Bill de Blasio-2009 3/F/R0007975 07/11/11 $1,940.00 [2]Friends of Bill de Blasio-2009 4/F/R0010623 01/11/12 $416.50 [1]

Total $16,492.60

Notes:[1] The 2009 Campaign failed to report receipt of this reimbursement on its BOE filings.[2] The 2009 Campaign reported receiving this reimbursement on its BOE January 2012 Periodic Report.

c) The Campaign contacted the CFB on September 22, 2011 and stated that NGP

mistakenly debited a payment from the 2009 committee’s bank account that should have

been debited from the 2013 committee account. The Campaign was informed that the

2013 committee may reimburse the 2009 committee. The Campaign was also informed

that the 2013 committee may report an expenditure payment transaction to the 2009

committee recording the check issued, and that the 2009 committee should report this as

an “other receipt” transaction.

d) New Yorkers for de Blasio, the 2013 committee, reported receiving $5,513.83

(4/E/R0008556) from the Friends of Bill de Blasio-2009 for “reimbursement of 2013.”

However, the 2009 committee did not report either spending or receiving a transaction of

this amount on its BOE statements. CFB staff was not able to determine whether this was

a correction of misdeposited receipts (see Finding #9b) or misdebited funds (see Finding

#10c); or a reimbursement for expenditures made by one committee for the other (see

Finding #10a).


e) Based on CFB staff review of the Campaign’s January 2012 BOE periodic report, the

2009 committee had outstanding liabilities for reimbursements to the 2013 committee:

LiabilityDate Amount07/10/11 $630.8608/09/11 $345.0011/11/11 $19.40


a) The Campaign must provide documentation and/or explanation for the expenditures listed

in Exhibit XI that show they were for the preceding election or were routine and nominal

expenditures associated with winding up the Campaign.

b) The Campaign must provide a list of and documentation for all the transactions made by

the 2009 committee for the 2013 committee that constitute these reimbursements. The

Campaign must explain the discrepancy between what the 2013 committee reported

reimbursing on its CFB disclosure statements and what the 2009 committee reported

receiving on its BOE statements.

c) The Campaign must identify the mistaken debit transaction on the 2009 committee bank

statement. The Campaign must also report the reimbursement on its BOE disclosure

statement and provide a copy of the reimbursement check with the corresponding bank

statement.

d) The Campaign must explain this payment and provide documentation for this

expenditure.

e) The Campaign must document any expenditure made by the 2013 committee for the 2009

committee and demonstrate that those expenditures were campaign-related and/or proper

post-election expenditures.



a) In response to the Supplemental Request, the Campaign provided additional

documentation for certain transactions. However, due to the commingling of activity

between the 2009 and 2013 committees, the transactions on Exhibit XI represent

expenditures for which there was insufficient documentation to clearly allocate them to a

particular committee.

b) In response to the Supplemental Request, the Campaign provided a list of expenditures

being reimbursed by each of the three reimbursements. The Campaign also provided

invoices and documentation for the expenditures being reimbursed.

c) In response to the Penalty Notice, the Campaign stated that the mistaken debit occurred

on the August 2011 statement. The Campaign also stated that the 2013 committee has yet

to repay the 2009 committee for this transaction.

d) In response to the Draft Audit Report, the Campaign provided a memo that detailed the

“expenditures made by the New Yorkers for de Blasio Committee that were reimbursed

by Friends of Bill de Blasio 2009.” However, the Campaign failed to provide

documentation and invoices for all of the expenditures being reimbursed (see Exhibit

XII).

e) In response to the Supplemental Request, the Campaign asserted that because the

expenditures were made by the 2013 committee and had not been reimbursed by the 2009

committee, the documentation for these outstanding liabilities are records of the 2013

committee. Due to the fact that the Campaign has not provided the related

documentation, it is not possible to confirm that these expenditures should be allocated to

the 2009 committee (see Exhibit XIII).

In response to the Penalty Notice, the Campaign argued that leniency was appropriate

because “inadvertent errors may occur when two committees are simultaneously engaged in


large scale fundraising efforts… on behalf of the same candidate.” The Campaign also attempted

to assert a narrower definition of commingling than that provided for in the board rules. While

admitting that the records and explanations previously provided may have been incomplete, the

Campaign argued that until reimbursement was made expenditures are merely liabilities to which

the relevant sections of the Act and Rules do not apply, and that the expenditures were

appropriate so long as reimbursement was made by the relevant committee.

In its subsequent response to the Supplemental Notice, the Campaign disputed the need

for documentation proving that certain expenditures were related to the 2013 campaign, asserting

the Rule 1-08 (c)(1) presumption that an expenditure is made for the next election following the

day it is made. However, in other portions of the same response the Campaign asserted that

expenditures were related to the 2009 campaign without providing documentation to rebut the

presumption of 1-08 (c)(1). Generally, the Campaign asserted that the questioned costs were

properly allocated between the two committees, but failed to address the fact that the receipts of

a single committee were used to pay for the liabilities.

Board Action

a-e) The Board found the Campaign in violation and assessed a $10,000 penalty

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Exhibit I

Friends of Bill de Blasio - 2009

2009 Elections

Daily Pre-Election Disclosures

(see Finding #1)

Expenditures:

Name

Statement/Schedule/ Transaction ID

DatePaid Amount

Carr Marketing 12/F/R0012274 09/06/09 $4,075.92Carr Marketing 12/F/R0012272 09/06/09 $4,250.53Carr Marketing 12/F/R0012276 09/06/09 $5,000.00Carr Marketing 12/F/R0012447 09/09/09 $2,508.00Carr Marketing 12/F/R0013479 09/11/09 $1,832.36Carr Marketing 12/F/R0013485 09/11/09 $3,217.84Carr Marketing 12/F/R0013481 09/11/09 $6,845.76Carr Marketing 12/F/R0013483 09/11/09 $8,027.52Carr Marketing 12/F/R0013487 09/13/09 $1,110.77

Total $36,868.70

Century Direct 12/F/R0012280 09/06/09 $7,000.00Century Direct 12/F/R0012455 09/09/09 $3,931.89Century Direct 12/F/R0012453 09/09/09 $4,115.57Century Direct 12/F/R0012437 09/10/09 $12,194.00

Total $27,241.46

Davidzon Media 12/F/R0012265 09/06/09 $35,000.00

Global Strategy Group, LLC 12/F/R0012269 09/06/09 $20,000.00

Mack/Crounse Group LLC 12/F/R0011449 09/01/09 $77,218.87Mack/Crounse Group LLC 12/F/R0013489 09/04/09 $45,555.76Mack/Crounse Group LLC 12/F/R0012457 09/09/09 $1,600.00

Total $124,374.63

Red Horse Strategies 12/F/R0012294 09/06/09 $2,000.00Red Horse Strategies 12/F/R0012292 09/06/09 $4,000.00Red Horse Strategies 12/F/R0012286 09/06/09 $13,528.22Red Horse Strategies 12/F/R0012908 09/12/09 $13,070.47

Total $32,598.69

Exhibit II


2009 Elections

Unreported Transactions

(see Finding #2a)

Notes:[1] In response to the duplicate finding, the Campaign deleted both the duplicate transaction and the original payment to Jillian Waldman.[2] The Campaign deleted this transaction from its disclosure statement, but the transaction cleared the Campaign’s bank account.

Check No./Transaction Date Amount NotesJP Morgan Chase #8865debit - document fees 05/31/06 $182.20debit - Service fee 06/01/06 $7.50deposited Item returned 12/07/07 $500.00debit - Service fee 01/17/08 $41.20deposited Item returned 01/17/08 $10.00debit - ATM 10/22/08 $44.98debit - ADP Payroll Fees 04/01/09 $93.251127 09/21/09 $4,166.50 [1]debit - Regent Garage Corp 09/22/09 $16.00debit - Legend Car Service 09/23/09 $62.00debit - NYC Taxi Med 09/25/09 $32.601706 10/07/09 $2,000.00 [2]debit - Service Charges 11/04/09 $98.87

Total $7,255.10

Exhibit III


2009 Elections

Uncashed Checks/Transactions Not Appearing on Bank Statements

(see Finding #2b)

Page 1 of 2

PayeeCheck No./Transaction


Date Paid Amount Notes

Bank Account #9654Kwan, Suki 10045 14/F/R0014145 09/29/09 $80.00Leow, Kianka 10048 14/F/R0014154 09/29/09 $80.00

Subtotal $160.00

Bank Account #8865Stars and Stripes Dem. Org. 1036 2/F/R0000915 10/26/06 $200.00Starkstaz consulting 1046 2/F/R0000944 01/08/07 $119.00Friends of Mathieu Eugene 1066 3/F/R0001637 02/15/07 $1,000.00Katrina Photography 1132 4/F/R0002622 09/24/07 $600.00Starkstaz Consulting 1201 5/F/R0003559 03/07/08 $1,538.00Broadway Democrats 1379 8/F/R0007916 05/06/09 $150.00Muss Development LLC 1475 10/F/R0009552 07/20/09 $25.00Muss Development LLC 1475 10/F/R0009551 07/20/09 $69.25Re-Elect Diaz 1532 11/F/R0012078 08/20/09 $2,400.00 [1]Select Mail 1623 12/F/R0013495 09/13/09 $485.00 [1]Bullock, Brandon 1872 12/F/R0013376 09/15/09 $85.00Clifford, Vanessa 1856 12/F/R0012953 09/15/09 $305.00Faruk, Farjana 1936 12/F/R0013007 09/15/09 $225.00Juliano, Michael 1942 12/F/R0013026 09/15/09 $70.00Kellan, Thomas 1922 12/F/R0013400 09/15/09 $85.00Martinez, Eddy 1996 12/F/R0013187 09/15/09 $85.00Monta, Jose 1998 12/F/R0013193 09/15/09 $85.00Orber, Alissa 1962 12/F/R0013083 09/15/09 $140.00Spottswood, Eleanor 1956 12/F/R0013066 09/15/09 $70.00Dickerson, Sharmaine 2049 12/F/R0013454 09/20/09 $85.00Gaunt, Betty 2023 12/F/R0013403 09/20/09 $85.00Levy, Franklin 2045 12/F/R0013442 09/20/09 $85.00Liverpool, Robin 2035 12/F/R0013418 09/20/09 $85.00Morrales, Emmanuel 1668 12/F/R0013225 09/20/09 $85.00Perez, Mario 1664 12/F/R0013213 09/20/09 $85.00Satoretti, Chrissy 1671 12/F/R0013234 09/20/09 $85.00Thomas, Michael 1685 12/F/R0013276 09/20/09 $85.00Williams, Bryant 1673 12/F/R0013240 09/20/09 $85.00

Exhibit III


2009 Elections

Uncashed Checks/Transactions Not Appearing on Bank Statements

(see Finding #2b)

Page 2 of 2



Date Paid Amount Notes

Ellison, Dennis 1670 12/F/R0013231 09/20/09 $85.00 [2]Figueroa, Jose 1682 12/F/R0013267 09/20/09 $175.00 [2]Amex Printing 1655 12/F/R0012716 09/21/09 $1,306.50 [2]NYC DC of Carpenters 2062 13/F/R0012934 09/22/09 $450.00Global Strategy Group, LLC 1705 14/F/R0014730 10/07/09 $5,000.00 [1]Struble Eichenbaum 1702 14/F/R0014755 10/07/09 $1,445.00 [1]CJ Translation Company 1727 15/F/R0014851 11/12/09 $60.00 [2]

Total $17,182.75

Notes:[1] The Campaign amended its disclosure statement and deleted this transaction but failed to provide an explanation for the deletion.[2] The Campaign amended its disclosure statement and changed the amount of this transaction to zero. The Campaign failed to explain this change.

Exhibit IV


2009 Elections

Over-reported and Under-reported Transactions

(see Finding #2c)

Page 1 of 2

Over-reported Transactions:


Statement/Schedule/ Transaction ID Date

Amount Reported

Amount Per Bank

Statement

Amount Over-

ReportedCafé Shane 1004 1/F/R0000600 06/08/06 $54.00Chase Manhattan Bank 1004 1/F/R0000699 06/08/06 $36.00Cingular 1004 1/F/R0000606 06/08/06 $113.00Constant Contact 1004 1/F/R0000609 06/08/06 $30.00EPAY Fee 1004 1/F/R0000615 05/17/06 $15.00Glatt ala Carte 1004 1/F/R0000640 06/08/06 $534.00Holiday Inn 1004 1/F/R0000634 06/08/06 $116.00Holiday Inn 1004 1/F/R0000637 04/17/06 $312.00Juniors 1004 1/F/R0000630 06/08/06 $17.00Purity Diner 1004 1/F/R0000596 06/08/06 $34.00Softcom Technologies 1004 1/F/R0000603 06/08/06 $120.00Woolworth Tower Kitchen 1004 1/F/R0000612 06/08/06 $218.00

Subtotal $1,599.00 $1,530.09 $68.91

Best Buy 1146 4/F/R0002698 10/24/07 $17.00Chase Platinum Mastercard 1146 4/F/R0002689 10/24/07 $44.00Constant Contact 1146 4/F/R0002696 10/24/07 $30.00Flowers.com 1146 4/F/R0002692 10/24/07 $126.00Softcom Technologies 1146 4/F/R0002694 10/24/07 $3.00

Subtotal $220.00 $186.22 $33.78

Atlas Direct Mailing 1636 12/F/R0013522 09/14/09 $1,051.37 $967.67 $83.70

Total $2,870.37 $2,683.98 $186.39

Exhibit IV


2009 Elections

Over-reported and Under-reported Transactions

(see Finding #2c)

Page 2 of 2

Under-reported Transactions:


Statement/Schedule/ Transaction ID Date

Amount Reported

Amount Per Bank

Statement

Amount Under-

ReportedBrooklyn Burger Bar 1073 3/F/R0002070 03/05/07 $48.00Chase Platinum Mastercard 1073 3/F/R0002064 03/05/07 $6.00Chase Platinum Mastercard 1073 3/F/R0002086 03/05/07 $29.00City Hall Restaurant 1073 3/F/R0002076 03/05/07 $76.00Constant Contact 1073 3/F/R0002082 03/05/07 $30.00Happy Days Diner 1073 3/F/R0002079 03/05/07 $8.00Quiznos 1073 3/F/R0002067 03/05/07 $22.00Softcom Technologies 1073 3/F/R0002073 03/05/07 $1.00

Subtotal $220.00 $329.82 $109.82

Lazar, Brenda 9809401890 9/M/R0007941 06/20/09 $250.00Wren, Bill 9809401891 9/M/R0007943 06/20/09 $600.00CWA District One PAC 9809401893 9/M/R0007945 06/20/09 $50.00Lazar, Mark 9809401894 9/M/R0007942 06/20/09 $125.00

Subtotal $1,025.00 $2,475.00 $1,450.00

Total $1,245.00 $2,804.82 $1,559.82

Exhibit V


2009 Elections

Contributions Over the Limit

Page 1 of 2

Name


ReceivedDate

RefundDate Amount Amount Over the Limit Notes

Communication Workers of Ameri

2/ABC/R0000794 12/04/06 $1,000.00

CWA District One PAC

3/ABC/R0001560 06/01/07 $2,000.00


4/ABC/R0002522 12/07/07 $1,000.00


6/ABC/R0004907 12/19/08 $1,000.00 $50.00 Limit Exceeded


9/M/R0007945 06/20/09 ($50.00)

Total $4,950.00 [2]

Kuntz, William 3/ABC/R0001836 04/13/07 $1,000.00Kuntz, William 6/ABC/R0004895 12/20/07 $1,000.00Kuntz, William 5/ABC/R0004031 06/26/08 $1,000.00Kuntz, William 6/ABC/R0005758 01/08/09 $4,950.00 $3,000.00 Limit ExceededKuntz, William 8/M/R0007001 03/21/09 ($3,000.00)

Total $4,950.00 [2]

Lazar, Brenda 5/ABC/R0004843 07/08/08 $250.00Lazar, Brenda 6/ABC/R0005341 01/06/09 $4,950.00 $250.00 Limit ExceededLazar, Brenda 9/M/R0007941 06/20/09 ($250.00)

Total $4,950.00 [2]

Lazar, Mark 2/ABC/R0001058 01/10/07 $250.00Lazar, Mark 6/ABC/R0005338 01/06/09 $4,825.00 $125.00 Limit ExceededLazar, Mark 9/M/R0007942 06/20/09 ($125.00)

Total $4,950.00 [2]

Milstein, Edward 9/ABC/R0008306 06/05/09 $5,000.00 $50.00 Limit ExceededMilstein, Edward 10/M/R0009609 07/24/09 ($50.00)

Total $4,950.00 [1]

Neu, John 9/ABC/R0008195 06/17/09 $5,000.00 $50.00 Limit ExceededNeu, John 10/M/R0009608 07/24/09 ($50.00)

Total $4,950.00 [1]

Exhibit V


2009 Elections

Contributions Over the Limit

Page 2 of 2

Name


ReceivedDate

RefundDate Amount Amount Over the Limit Notes

Neu, Wendy K 4/ABC/R0003058 01/04/08 $1,000.00Neu, Wendy K 9/ABC/R0008195 06/17/09 $5,000.00 $1,050.00 Limit ExceededNeu, Wendy K 10/M/R0009608 07/24/09 ($1,050.00)

Total $4,950.00 [1]

Rieder, Yussi 2/ABC/R0001155 01/11/07 $2,500.00Rieder, Yussi 3/ABC/R0001456 06/12/07 $3,850.00 $1,400.00 Limit ExceededRieder, Yussi 5/M/R0003415 01/28/08 ($2,500.00)Rieder, Yussi 8/ABC/R0007794 05/08/09 $1,100.00

Total $4,950.00 [1]

Wolfson, Howard L 2/ABC/R0001165 01/05/07 $2,500.00Wolfson, Howard L 5/ABC/R0004817 07/11/08 $3,850.00 $1,400.00 Limit ExceededWolfson, Howard L 6/M/R0004856 11/10/08 ($1,400.00)

Total $4,950.00 [1]

Notes:[1] The Campaign timely refunded the over the limit portion of this contribution.[2] The Campaign untimely refunded the over the limit portion of the contribution.

Exhibit VI


2009 Elections

Unregistered Political Committee Contributions

Name

Statement/Schedule/ Transaction ID Date Amount Notes

Culinary Local 226 11/ABC/R0011357 08/28/09 $2,500.00 [1]Friends of Craig Johnson 12/ABC/R0012342 09/10/09 $2,000.00 [1]Friends of Greg Atkins 2/ABC/R0001066 01/10/07 $250.00 [2]Local 1109 CWA 8/ABC/R0006987 04/01/09 $500.00 [2]Local 1109 CWA 8/ABC/R0007863 05/06/09 $250.00 [2]NYSIA NY PAC 2/ABC/R0001123 01/09/07 $500.00 [2]Seafarers Political Activity 8/ABC/R0006990 03/13/09 $500.00 [2]Teamsters Local Union No. 282 1/ABC/R0000504 06/23/06 $250.00 [2]

Notes:[1] The Campaign timely refunded the over the limit portion of this contribution.[2] The Campaign untimely refunded the over the limit portion of the contribution.

Exhibit VII


2009 Elections

Contributions Over the Doing Business Limit

Name

Statement/Schedule/Transaction ID

Date ofNotification

Refund Due Date

ContributionAmount

AmountOver-the-

LimitElliot, DonaldElliot, Donald

9/ABC/R000865912/ABC/R0012400 09/29/09 10/19/09

$250.00$500.00$750.00 $350.00

Gangsei, Paul 12/ABC/R0012555 09/29/09 10/19/09 $500.00 $300.00

Sabella, James* 12/ABC/R0012799 09/29/09 10/19/09 $2,475.00 $2,275.00

Sabella, James* 16/ABC/R0015108 01/29/10 02/18/10 $2,000.00 $1,600.00

Weingarten, Randi 12/ABC/R0012482 09/29/09 10/19/09 $500.00 $100.00

*The contributor exceeded the runoff Doing Business contribution limit and the regular election cycle Doing Business contribution limit.

Exhibit VIII


2009 Elections

Non-Campaign Related Expenditures

(see Finding #7)

Page 1 of 3

Payee


PurposeCode

InvoiceDate

Date Paid Amount

Holiday Inn 1/F/R0000637 OTHER 04/17/06 04/17/06 $312.00Holiday Inn 1/F/R0000634 OTHER 04/16/06 06/08/06 $116.00Warm Sentiments.com 2/F/R0000957 OTHER 08/15/06 01/10/07 $51.00EBAY 3/P/R0001653 OFFCE 02/26/07 02/26/07 $495.00EBAY 3/P/R0001651 OFFCE 02/26/07 02/26/07 $80.00Best Buy 3/P/R0002088 OFFCE 03/29/07 03/29/07 $610.001-800 Flower 4/F/R0003533 OTHER 01/10/08 01/10/08 $166.001-800 Flower 5/F/R0003535 OTHER 01/11/08 01/14/08 $56.001-800 Flower 5/F/R0003663 OTHER 04/02/08 04/02/08 $57.001-800 Flower 5/F/R0003662 OTHER 04/15/08 04/15/08 $56.001-800 Flower 5/F/R0004348 OTHER 05/14/08 05/15/08 $59.001-800 Flower 5/F/R0004352 OTHER 05/17/08 5/19/08 $87.001-800 Flower 5/F/R0004459 OTHER 06/20/08 06/20/08 $64.001-800 Flower 5/F/R0004454 OTHER 06/27/08 06/27/08 $59.001-800 Flower 6/F/R0005081 OFFCE 07/10/08 07/10/08 $72.62Tlf Blooms on Fifth 7/F/R0005919 FUNDR 01/12/09 01/12/09 $273.08Tlf Blooms on Fifth 7/F/R0006765 FUNDR 01/20/09 01/21/09 $136.55Tlf Blooms on Fifth 7/F/R0006896 FUNDR 03/02/09 03/02/09 $67.43Tlf Blooms on Fifth 7/F/R0006879 FUNDR 03/05/09 03/05/09 $68.22Tlf Blooms on Fifth 7/F/R0006881 FUNDR 03/05/09 03/05/09 $68.22Amtrak 8/F/R0007327 OTHER 04/03/09 04/06/09 $69.00Tlf Blooms on Fifth 8/F/R0007344 FUNDR 04/20/09 04/21/09 $81.28Tlf Blooms on Fifth 8/F/R0007416 FUNDR 05/06/09 05/07/09 $65.02Tlf Blooms on Fifth 8/F/R0007418 FUNDR 05/07/09 05/08/09 $65.02Tlf Blooms on Fifth 9/F/R0009400 FUNDR 06/04/09 06/05/09 $92.11NYC Department of Finance 14/P/R0014673 OTHER 06/17/09 06/17/09 $95.00NYC Department of Finance 14/P/R0014674 OTHER 06/17/09 06/17/09 $115.00NYC Department of Finance 14/P/R0014672 OTHER 06/17/09 06/17/09 $115.00Delta Air 9/F/R0009421 OTHER 06/17/09 06/19/09 $137.20Delta Air 9/F/R0009428 OTHER 06/23/09 06/25/09 $179.60Art Lab Inc 9/F/R0009265 OTHER 06/12/09 07/01/09 $150.00NYC Department of Finance 14/P/R0014671 OTHER 07/09/09 07/09/09 $115.00NYC Department of Finance 14/P/R0014670 OTHER 07/24/09 07/24/09 $65.00NYC Department of Finance 14/P/R0014669 OTHER 08/11/09 08/11/09 $115.00

Exhibit VIII


2009 Elections


(see Finding #7)

Page 2 of 3

Payee


PurposeCode

InvoiceDate

Date Paid Amount

NYC Department of Finance 14/P/R0014681 OTHER 08/14/09 08/14/09 $115.00All Car Rent-a-Car 12/F/R0012870 OTHER 09/08/09 09/08/09 $354.06All Car Rent-a-Car 12/F/R0013497 OTHER 09/10/09 09/10/09 $1,975.14NYC Tow 15/P/R0014881 OTHER 09/11/09 09/11/09 $185.00NYC Tow 12/P/R0012761 OTHER 09/17/09 09/17/09 $205.00All Car Rent-a-Car 12/F/R0012767 OTHER 09/17/09 09/17/09 $171.28All Car Rent-a-Car 12/F/R0012769 OTHER 09/17/09 09/17/09 $163.69NYC Department of Finance 14/P/R0014486 OTHER 09/23/09 09/23/09 $115.00NYC Department of Finance 14/P/R0014487 OTHER 09/25/09 09/25/09 $115.00NYC Department of Finance 14/P/R0014523 OTHER 10/01/09 10/01/09 $260.00All Car Rent-a-Car 14/F/R0014401 OTHER 10/01/09 10/05/09 $400.28All Car Rent-a-Car 14/F/R0014595 OTHER 10/05/09 10/05/09 $146.29All Car Rent-a-Car 14/F/R0014599 OTHER 10/05/09 10/05/09 $159.51All Car Rent-a-Car 14/F/R0014601 OTHER 10/05/09 10/05/09 $159.51All Car Rent-a-Car 14/F/R0014603 OTHER 10/05/09 10/05/09 $216.89All Car Rent-a-Car 14/F/R0014605 OTHER 10/05/09 10/05/09 $236.01All Car Rent-a-Car 14/F/R0014607 OTHER 10/05/09 10/05/09 $238.26All Car Rent-a-Car 14/F/R0014609 OTHER 10/05/09 10/05/09 $243.06All Car Rent-a-Car 14/F/R0014611 OTHER 10/05/09 10/05/09 $249.49All Car Rent-a-Car 14/F/R0014613 OTHER 10/05/09 10/05/09 $291.12All Car Rent-a-Car 14/F/R0014615 OTHER 10/05/09 10/05/09 $564.88Hilton Hotel Garage 14/F/R0014582 OTHER 10/07/09 10/07/09 $20.00Delta Air 14/F/R0014577 OTHER 10/07/09 10/07/09 $20.00NYC Department of Finance 14/F/R0014355 OTHER 09/30/09 10/08/09 $45.00NYC Department of Finance 14/F/R0014357 OTHER 09/28/09 10/08/09 $42.00NYC Department of Finance 14/F/R0014359 OTHER 09/29/09 10/08/09 $34.00NYC Department of Finance 14/F/R0014361 OTHER 09/29/09 10/08/09 $34.00NYC Department of Finance 14/F/R0014363 OTHER 09/24/09 10/08/09 $28.00NYC Department of Finance 14/F/R0014365 OTHER 09/25/09 10/08/09 $28.00NYC Department of Finance 14/F/R0014526 OTHER 09/12/09 10/08/09 $92.00NYC Department of Finance 14/F/R0014528 OTHER 09/16/09 10/08/09 $77.00All Car Rent-a-Car 14/F/R0014367 OTHER 09/29/09 10/13/09 $145.51All Car Rent-a-Car 14/F/R0014369 OTHER 09/29/09 10/13/09 $175.85All Car Rent-a-Car 14/F/R0014371 OTHER 09/29/09 10/13/09 $175.89

Exhibit VIII


2009 Elections


(see Finding #7)

Page 3 of 3

Payee


PurposeCode

InvoiceDate

Date Paid Amount

All Car Rent-a-Car 14/F/R0014373 OTHER 09/29/09 10/13/09 $208.68All Car Rent-a-Car 14/F/R0014375 OTHER 09/29/09 10/13/09 $245.27All Car Rent-a-Car 14/F/R0014377 OTHER 09/29/09 10/13/09 $317.80All Car Rent-a-Car 14/F/R0014379 OTHER 09/29/09 10/13/09 $317.80All Car Rent-a-Car 14/F/R0014381 OTHER 09/29/09 10/13/09 $317.80All Car Rent-a-Car 14/F/R0014383 OTHER 09/29/09 10/13/09 $317.80All Car Rent-a-Car 14/F/R0014385 OTHER 09/29/09 10/13/09 $317.80All Car Rent-a-Car 14/F/R0014387 OTHER 09/29/09 10/13/09 $331.02All Car Rent-a-Car 14/F/R0014389 OTHER 09/29/09 10/13/09 $331.02All Car Rent-a-Car 14/F/R0014391 OTHER 09/29/09 10/13/09 $331.02All Car Rent-a-Car 14/F/R0014393 OTHER 09/29/09 10/13/09 $331.30NYC Department of Finance 15/F/R0014912 OTHER 09/29/09 10/29/09 $45.00NYC Department of Finance 15/F/R0014914 OTHER 09/28/09 10/29/09 $92.00NYC Department of Finance 15/F/R0014910 OTHER 09/25/09 11/16/09 $34.00NYC Department of Finance 16/F/R0015134 OTHER 11/25/09 12/07/09 $34.00NYC Department of Finance 16/F/R0015136 OTHER 11/25/09 12/07/09 $45.00NYC Department of Finance 16/F/R0015138 OTHER 11/25/09 12/07/09 $92.00NYC Department of Finance 16/F/R0015140 OTHER 11/25/09 12/07/09 $42.00NYC Department of Finance 16/F/R0015142 OTHER 11/25/09 12/07/09 $92.00NYC Department of Finance 16/F/R0015144 OTHER 11/25/09 12/07/09 $45.00NYC Department of Finance 16/F/R0015146 OTHER 11/25/09 12/07/09 $92.00NYC Department of Finance 16/N/R0015147 OTHER 11/29/09 $34.00

NYC Department of Finance Schedule F, July Periodic 2010 01/25/10 $77.00

Total $15,986.38

Exhibit IX


2009 Elections

Improper Post-Election Expenditures

(see Finding #8)

Payee ReferencePurposeCode

InvoiceDate

Date Paid Amount

Johnny Macks 15/F/R0014931 OTHER 11/13/09 11/13/09 $59.04Le Pain Quotiden 15/F/R0014935 OTHER 11/13/09 11/13/09 $22.89Siegel, Bridget 16/F/R0015049 PROFL 11/20/09 11/20/09 $5,000.00Kalish, Ben 16/F/R0015008 PROFL 11/24/09 11/24/09 $1,500.00NGP Software Inc Schedule F, January Periodic 2011 12/21/10 $4,630.00Staples Schedule F, July Periodic 2011 04/21/11 $113.19

Total $11,325.12

Exhibit Xa


2009 Elections

Undocumented Transactions – Struble Eichenbaum

(see Finding #9c)

Exhibit Xb


2009 Elections

Undocumented Transactions – Red Creek

(see Finding #9c)

Exhibit XI


2009 Elections

Commingling

(Transactions That Could Not Be Allocated to a Committee Due to Inadequate Documentation)

(see Finding #10a)

Page 1 of 2

Name BOE Schedule Date Explanation Amount NotesADP Schedule F, July Periodic 2010 02/02/10 Tax Paperwork $72.50 [1]Lower Eastside Democratic Club Schedule F, July Periodic 2010 03/15/10 Doorknocking $500.00 [2]Bar Toto Schedule F, July Periodic 2010 05/10/10 Meeting $52.64 [3]Jerry's Café Schedule F, July Periodic 2010 05/28/10 Meeting $11.53 [3]Jerry's Café Schedule F, July Periodic 2010 06/01/10 Meeting $36.76 [3]Osteria Del Circo Schedule F, July Periodic 2010 06/23/10 Meeting $62.71 [3]The Odean Schedule F, January Periodic 2011 09/10/10 Meeting $57.45 [1]Wolfe, Emma Schedule F, January Periodic 2011 09/17/10 contract $332.20 [4]Wolfe, Emma Schedule F, January Periodic 2011 09/17/10 contract $416.50 [4]Padgett, Rachel Schedule F, January Periodic 2011 09/17/10 Advance Repayment $1,171.40 [5]Meikle, Mollie Schedule F, January Periodic 2011 09/17/10 Fundraise/Compliance $1,000.00 [2]Meikle, Mollie Schedule F, January Periodic 2011 09/17/10 Pay Check $550.00 [2]Padgett, Rachel Schedule F, January Periodic 2011 09/17/10 Fundraise/Compliance $4,800.00 [5]Gray, Thomas A Schedule F, January Periodic 2011 09/17/10 Compliance $200.00 [1]The Cupping Room Café Schedule F, January Periodic 2011 10/25/10 meeting $54.33 [1]Padgett, Rachel Schedule F, January Periodic 2011 11/28/10 Finance / Compliance $4,000.00 [1]Padgett, Rachel Schedule F, January Periodic 2011 11/28/10 Advance Repayment $171.88 [5GoDaddy.com

]Schedule F, January Periodic 2011 12/03/10 Website Hosting $4.99 [1]

Meikle, Mollie Schedule F, January Periodic 2011 12/14/10 Fundraise / Compliance $5,000.00 [2]Schlein, Stanley K Schedule F, January Periodic 2011 01/04/11 Stenographer $4,000.00 [6]Leopold, Elana Schedule F, January Periodic 2011 01/09/11 Compliance $105.00 [1]Canfield, Ellyn Schedule F, January Periodic 2011 01/09/11 Compliance $940.00 [1]Canfield, Ellyn Schedule F, July Periodic 2011 01/09/11 Compliance $940.00 [1]Leopold, Elana Schedule F, July Periodic 2011 02/01/11 Filing Assistance $180.00 [1]Wolfe, Emma Schedule F, July Periodic 2011 02/15/11 Fundraising $416.50 [1]Wolfe, Emma Schedule F, July Periodic 2011 03/01/11 Consultant $416.50 [1]Genova, Burns & Vernoia Schedule F, July Periodic 2011 03/17/11 Legal Services $5,300.00 [7]Lexington Dem Club Schedule F, July Periodic 2011 03/17/09 club membership $225.00 [1]

Exhibit XI


2009 Elections

Commingling

(Transactions That Could Not Be Allocated to a Committee Due to Inadequate Documentation)

(See Finding #10a)

Page 1 of 2

Name BOE Schedule Date Explanation Amount NotesCanfield, Ellyn Schedule F, July Periodic 2011 03/21/11 Filing Assistance $130.00 [1]ZipCar Schedule F, January Periodic 2012 07/26/11 Fundraising $27.22 [1]ZipCar Schedule F, January Periodic 2012 08/20/11 Car Rental $75.00 [1]Department of Finance Schedule F, January Periodic 2012 11/03/11 Fee $648.53 [1]American Express Schedule F, January Periodic 2012 11/08/11 Settlement fee $675.00 [1]GoDaddy.com Schedule F, January Periodic 2012 12/05/11 website $4.99 [1]GoDaddy.com Schedule F, January Periodic 2012 12/05/11 website [1]$41.74

Total $32,620.37

Notes:[1] The Campaign did not provide documentation to confirm this expenditure was related to the 2009 campaign from which it was reported, or support the presumption of Rule 1-08(c)(1).[2] The Campaign asserts that this expense was related to 2009, but does not provide documentation to support this assertion or contradict the presumption of Rule 1-08(c)(1).[3] The Campaign stated that pursuant to Rule 1-08(c)(1) this expenditure should be allocated to the 2013 campaign, despite the fact that it was paid for by the 2009 campaign. Based on the nature of the transaction and the documentation provided, it is not possible to determine which campaign this expenditure should be allocated to.[4] The Campaign asserts that this expenditure represents an appropriate allocation of expenses between the 2009 and 2013 campaigns based on time allocations set forth in an invoice, but failedto provide documentation to support this assertion.[5] The Campaign states that this expenditure represents the appropriate allocation of an advance repayment between the 2009 and 2013 campaigns, based on the time allocations set forth in related invoices during the same time period, but failed to provide invoices supporting the described allocation.[6] The Campaign stated that Mr. Schlein was retained to provide legal representation in connection with posting violations. Invoices for other expenditures support this characterization, however, absent documentation the CFB is unable to determine if this expenditure reported for a stenographer is related to the matter described.[7] The 2009 Campaign made a $14,745.02 payment to Genova, Burns & Vernoia. However, a review of the vendor’s invoices show payments totaling $9,445.02. The Campaign stated that the additional $5,300 was for another 2009 matter (matter #2182.3) but did not provide documentation to support this assertion.

Exhibit XIIFriends of Bill de Blasio - 2009

2009 ElectionsCommingling

(Expenditures Made by the 2009 Committee and Reimbursed by the 2013 Committee)(see Finding # 10b)

Page 1 of 2

Payee DateTotal Cost

Cost Attributedfrom 2009 to 2013

Cost Attributed from 2009 to 2013 (Percentage)

Transactions related to $11,321.10 reimbursement:

Emma Wolfe 01/20/10 $833.00 $499.80 60.00%Emma Wolfe 02/24/10 $833.00 $499.80 60.00%Emma Wolfe 03/15/10 $833.00 $583.10 70.00%Emma Wolfe 06/06/10 $833.00 $583.10 70.00%Emma Wolfe 06/11/10 $833.00 $666.40 80.00%Emma Wolfe 06/11/10 $833.00 $499.80 60.00%Rachel Padgett 03/31/10 $8,000.00 $4,320.00 54.00%AT&T Wireless 02/02/10 $44.32 $44.32 100.00%Verizon Wireless 02/02/10 $164.92 $164.92 100.00%AT&T Wireless 03/02/10 $92.16 $92.16 100.00%Verizon Wireless 03/31/10 $357.29 $357.29 100.00%AT&T Wireless 06/08/10 $94.73 $94.73 100.00%Domenico 02/05/10 $75.00 $75.00 100.00%Jerry's Café 03/18/10 $30.04 $30.04 100.00%Bill de Blasio 04/29/10 $607.00 $607.00 100.00%Bar Toto 05/10/10 $52.64 $52.64 100.00%NGP Software 05/11/10 $2,040.00 $2,040.00 100.00%Jerry's Café 05/28/10 $11.53 $11.53 100.00%Jerry's Café 06/01/10 $36.76 $36.76 100.00%Osteria Del Circo 06/23/10 $62.71 100.00%$62.71

Total $11,321.10

Transactions related to $2,815 reimbursement:

NGP $1,000.00 $500.00 50.00%NGP $4,630.00 50.00%$2,315.00

Total $2,815.00

Exhibit XIIFriends of Bill de Blasio - 2009

2009 ElectionsCommingling

(Expenditures Made by the 2009 Committee and Reimbursed by the 2013 Committee)(see Finding # 10b)

Page 2 of 2

Payee DateTotal Cost

Cost Attributedfrom 2009 to 2013

Cost Attributed from 2009 to 2013 (Percentage)

Transactions related to $1,940 reimbursement:NGP $840.00 $840.00 100.00%NGP $1,100.00 100.00%$1,100.00

Total $1,940.00

Transaction related to $416.50 reimbursement:

Emma Wolfe November $833.00 50.00%$416.50

Total $416.50

Exhibit XII

Friends of Bill de Blasio -- 20092009 ElectionsCommingling

(Expenditures Made by the 2013 Committee and Reimbursed by the 2009 Committee)(see Finding #10d)

PayeeCost Attributed

Total Cost

Cost Attributed to 2009 from 2013

to 2009 from 2013 (Percentage)Jafri October

Notes$8,500.00 $1,700.00 20.00%

Jafri November $8,500.00 $281.35 3.31%Jafri December $6,854.84 $1,580.04 23.05%65 Broadway Security $1,272.00 $254.40 20.00%65 Broadway October $636.00 $127.20 20.00%65 Broadway November $662.54 $21.93 3.31%65 Broadway December $687.94 $158.57 23.05%Manhattan Storage Dec $56.00 $56.00 100.00%Manhattan Storage Nov $56.00 $56.00 100.00%Wolfe August $833.00 $416.50 50.00%Wolfe September $416.50 [1]Wolfe October $416.50Internet October $52.50 $10.50 20.00%Internet November $52.57 $1.74 3.31% [1]Internet December $52.49 23.05%$12.10

$5,509.33

[1] Due to a lack of documentation, CFB staff was unable to confirm that these expenditures should be allocated to the 2009 campaign. However, because they were made by the 2013 campaign, staff does not include them in Finding #10a detailing the 2009 Campaign’s BOE transactions that cannot be allocated to a specific campaign.

Note:

Exhibit XIII

Friends of Bill de Blasio -- 20092009 ElectionsCommingling

(Liabilities Owed by the 2009 Committee to the 2013 Committee)(see Finding #10e)

Payee DateCost Attributed

Total Cost

Cost Attributed to 2009 from 2013

to 2009 from 2013 (Percentage)Jafri Strategies

Notes$58,500.00 $585.00 1.00% [1]

AM Property (rent) $4,271.00 $42.71 1.00% [1]Econotek (Internet) $315.00 1.00%$3.15 [1]

Total $630.86

Manhattan Mini Storage 02/03/11 $56.00 $56.00 100.00%Manhattan Mini Storage 03/03/11 $56.00 $56.00 100.00%Manhattan Mini Storage 04/03/11 $56.00 $56.00 100.00%Manhattan Mini Storage 05/03/11 $59.00 $59.00 100.00%Manhattan Mini Storage 06/03/11 $59.00 $59.00 100.00%Manhattan Mini Storage 07/06/11 $59.00 100.00%$59.00

Total $345.00

NGP $1,940.00 $19.40 1.00% [1]

NGP Software 08/10/11 $2,490.00 $2,490.00 100%NGP Software 09/02/11 $2,490.00 $2,490.00 100%

Total $4,980.00 [2]

Notes:[1] The Campaign asserts that these are 2013 committee records because the expenditure was made by the 2013 committee and has not yet been reimbursed by the 2009 Campaign. Due to the fact that the Campaign has not provided the related documentation, it is not possible to confirm that these expenditures should be allocated to the 2009 Campaign.[2] This transaction was previously cited as an undocumented transaction, but based on the Campaign’s response to the Supplemental Request it is now considered a part of the commingling finding. In response to the Supplemental Request, the Campaign stated “per the Committee’s 9/22/11 contact with CFB staff, the 2009 Committee will seek additional reimbursement from the 2013 committee.”

m. carmel corcoran dear ms. corcoran · friends of bill de blasio-2009 3/f/r0007975 07/11/11...

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