Senator goes rogue over $1.9M in pork

from the Albany (NY) Times Union:

By JAMES M. ODATO, Capitol bureau
First published in print: Wednesday, June 10, 2009

ALBANY -- A disagreement over suspicious plans for $1.92 million in member items sought by Sen. Pedro Espada, the turncoat Democrat at the center of Sen. Malcolm Smith's stunning ouster on Monday, played a key role in Espada's defection, according to Senate Democratic staff and documents.
     
Espada and ally Sen. Hiram Monserrate denied that member items played a role in their decision to join all 30 Senate Republicans to end Smith's six-month reign in the 62-member chamber.

But according to Senate Democratic staff and documents they released in the wake of the overthrow, in April Espada sought large sums in pork barrel appropriations for "sham" organizations tied to his political and private business interests.

But his pork requests raised red flags during the Senate vetting process because the proposed recipient nonprofits were set up only in March and are led by people in Espada's political network, according to the Senate staffer. The requests did not pass Senate Democratic leader Smith's smell test, according to e-mails among Senate finance staff, Espada's staff and Senate secretary Angelo Aponte, who Espada tried to fire on Tuesday.

The addresses of the nonprofits that Espada wanted to fund included a private residence and the address of the health care organization he runs in the Bronx, which paid him $379,500 in compensation as recently as 2006, the documents show. Espada got into hot water in 2002 when he tried to fund the organization with $745,000 in member items and the money was frozen. At the time, he had joined Republicans and had access to the relatively large award.

Because Smith's staff denied the recent requests, the member items sought for Green ECO Energy Inc. and Bronx Human Services Council Inc. instead were set up for the Bronx Chamber of Commerce.

Austin Shafran, a spokesman for Smith, said Espada's decision to bolt the Democratic conference and join the GOP insurgency was "political retaliation" for the member items flap.

"The questionable activities that Pedro Espada has taken appeared to rise to the level of political extortion," he said. "He obviously did not like the fact that Sen. Malcolm Smith stood by his principles and did not stand by for this wasting of millions of dollars on Sen. Espada's ... disregard for the sanctity of the member item process."

As a result, Espada pulled $875,000 in five member items destined for Green ECO, which was set up in March and staffed by Daniel Pagano, a lawyer who works for Espada in the Senate and has been representing him for alleged campaign finance violations. Espada also redirected more than $1 million in six member items for Bronx Human Services Council, which was set up at the address of an organization founded by Espada and once chaired by John Feliciano, one of Espada's closest Senate aides.

Espada's member item dollars instead were destined for the Bronx Chamber of Commerce in the end as were another $300,000 that were supposed to go to Espada's first choices from the Delegation of Latino Senators, of which Espada was a member.

"This has never been about member items," Espada said. He said the revelations about his first choice for member items was an attempt at "character assassination ... a lame attempt to come at me with these accusations by a desperate man."

He said the groups that he wanted to fund were recently created with doctors and lawyers who wanted to administer scholarships. "There was never a disagreement about member items," he said.

He said he was told his allocation would be $2 million this year, but felt that Smith was using the member item pot as a "personal piggy bank." Smith planned to divide $85 million for the Senate by giving the Senate Republicans the same sum Democrats received when the GOP was in charge last year -- $8.2 million. He said that showed the hypocritical management style of Smith, who tried to use pork as a leverage to get members to vote according to Smith's wishes.

"This is a man who talked about equalizing resources and democratizing the Senate," said Espada.

Sen. Thomas Libous, R-Binghamton, added that member items never came up in the talks leading to the coup. "The only connection is we were fed up," Libous said.

Businessman Tom Golisano, the other key member of the overthrow team, added that he intends to help coup members if they follow through with reforms.

Golisano and Espada were targets of attacks about their ethics.

Barbara Bartoletti, legislative director for the League of Women Voters, said she worries that Espada's unwillingness to follow campaign finance rules, such as not filing disclosure documents, and Golisano's willingness to spend millions to support candidates who share his vision of reform, will weaken democracy in Albany.

Judith Simon, a business consultant from Saugerties, shouted at Golisano in the Capitol: "You bought the Senate, you bought the Senate. You're a disgusting human being."

"Really," Golisano responded and told reporters he would leave if such outbursts persisted. Asked about the ethical challenges of Espada and Monserrate, who has been indicted on charges that he assaulted his girlfriend, Golisano said: "Half the people in this city have problems like that . . . It didn't seem to be an issue to the Democrats when those two gave them the majority, why should it be a problem now?"