Last week, Republican State Senator Kathy Marchione's largest individual contributor, Saratoga County residential developer Bruce Tanski was arrested in a continuing FBI investigation involving Republican elected officials from the Town of Halfmoon, including Marchione.
The Albany Times Union reported that Tanski was arrested last Friday and being charged with using business associates to conceal thousands in contributions to former Halfmoon Town Supervisor Mindy Wormuth, who is currently being indicted for bribery and extortion charges.
From the Albany Times Union, August 23, 2014:
"BALLSTON SPA -- Bruce Tanski, a politically active Halfmoon builder who has been one of the largest contributors to the town's Republican Party, was arrested Friday morning on charges that he used business associates to conceal $6,000 in political donations to a former town supervisor."
"Tanski's secretary, Katina Fogarty of Latham, and a business associate, Nicholas DiNova Jr. of Halfmoon, also were arrested on related charges."
"The arrest of Tanski, 68, owner of Bruce Tanski Construction & Development, is the culmination of a two-year probe by the FBI and state Attorney General's office. The investigation led to the arrest last October of former Halfmoon Supervisor Melinda A. Wormuth on unrelated federal bribery and extortion charges, and state charges alleging she stole more than $6,200 from her campaign fund."
With Tanski now arrested and likely under indictment, one can only wonder whether the FBI will place scrutiny on his substantial financial contributions to State Senator Marchione's election campaigns during the past two election cycles. According to a March 2013 article from the Hudson, New York Register-Star, Tanski contributed $78,945 to Marchione's 2012 campaign funds, mainly through Limited Liability Corporations (LLCs) that he owns and manages, accounting for approximately 15 percent of Marchione's total donations that year.
From the Hudson, New York Register-Star, March 12, 2013:
"For her unsuccessful campaign for the 43rd District State Senate seat in 2012, Supervisor Robin Andrews, D-Claverack, raised $92,336. That’s just a little bit less than the $95,645 that her successful opponent, State Sen. Kathleen Marchione, R,C-Halfmoon, raised through the largess of one person, Bruce Tanski, and LLCs he heads up."
"All together, Marchione raised more than five times as much as Andrews, with a total of $525,486."
"The limit under New York election law that an individual can contribute to a campaign for State Senate is $10,000 for the general election and $6,500 for the primary. Tanski provided both to Marchione in his own name."
"Companies managed by Tanski also provided $78,945 to Marchione’s primary and general election campaigns."
"Under election law, this is totally legitimate. While a corporation can only give $5,000 in one year, a limited liability corporation is treated as an individual for limitation purposes, so each LLC can give another $16,500 in an election year."
"Ian Vandewalker, a counsel for the Brennan Center for Justice, which works for campaign finance reform, said the LLC donations have been legal for a long time."
"“Contribution limits in New York are the highest in the country for many offices,” he said. “Then you have the LLC loophole, which makes limits meaningless. Anyone can open an LLC.”"
"In addition to $16,500 from Tanski himself, Marchione also received:"
"$10,000 from Bruce Tanski Construction and Development LLC."
"$6,500 in June and $10,000 in October from Halfmoon Heritage LLC."
"$6,500 in June and $10,000 in October from McGregor Village Apartments of Gansevoort, LLC."
"$6,500 from Snyder’s Restaurant and Pub LLC."
"Six in-kind donations totaling $14,045 from the Shoppes of Halfmoon."
"Six in-kind donations totaling $5,792 from Halfmoon Sunoco LLC."
"Four in-kind donations totaling $9,609 from the Fairways of Halfmoon LLC."
Marchione's substantial contributions from Tanski and a handful of other wealthy individuals, including
Manhattan hedge fund manager Sean Fieler, has drawn continual scrutiny from statewide watchdog groups supporting campaign finance reform, including
Fair Elections for New York.
As
I highlighted in a diary last March, Marchione is already being investigated by the FBI for an unrelated, suspicious land swap that she and her husband made back in 2006 with Saratoga County residential developer Robert Marini for a 3.3. acre parcel of land adjoining their Halfmoon, New York residence.
From the Albany Times Union, March 26, 2014:
"The FBI is probing a 2007 land purchase by state Sen. Kathleen Marchione as part of an ongoing investigation of Halfmoon town government."
"The broader investigation, which includes the state attorney general's office, led to the Oct. 17 arrest of then-Halfmoon Supervisor Melinda A. Wormuth on federal charges of extorting cash payments to lobby state officials, including Marchione. Wormuth, who left office in November, also was arrested on state felony charges for allegedly stealing $6,250 from a campaign account."
"Current and former town officials were recently interviewed by investigators assigned to a task force handling the case. One official, who spoke on condition of anonymity, said the agents were interested in Bruce Tanski, a prominent Halfmoon builder, as well as the 2007 land acquisition by Marchione and her husband, Frank."
"The official said FBI agents asked about the value of the land purchased by the Marchiones. Public records indicate the couple paid $30,000 for the 3.3-acre parcel, which is next to their primary residence in Halfmoon. The parcel was sold to them by Landmark Development Group, a limited liability company affiliated with Marini Builders, which received approval from Halfmoon in 2006 to build a 37-lot, luxury subdivision along Shelbourne Drive. The 3.3-acre lot purchased by the Marchiones was part of the Marini subdivision."
Marchione continually insists that she and Tanski have long been good friends, she's "thankful for his funds" to her campaign, and that "nobody's looking for favors."
From the Hudson, New York Register-Star, March 12, 2013:
"Marchione said she wanted to stress the relationship she has with Tanski."
"“He may be a very wealthy individual,” she said, “but Bruce and I and my husband have known each other 30 years or more. We have been good friends, and we remain good friends."
"“What he does has nothing to do with the Senate office,” she said. “He believes in me. He believes in cutting taxes and regulations. His reason for wanting to help me is because he believes in the platform I ran on. I’m thankful for the funds he provided to my campaign.”"
"Marchione said Tanski has watched her as county clerk for years, “the conservative management, the great customer service I’ve provided. He believes in me as an individual and that I would carry that to the 43rd District.”"
"“Everyone has a voice with me,” she said, “whether they give to my campaign or don’t. Business people, all they’re looking for is a fair opportunity; nobody’s looking for favors. They’re looking for the opportunity to have fairness in government.”"
"(Ian) Vandewalker, at the Brennan Center, said the ineffectiveness of contribution limits increases the likelihood that the recipient will do favors for the donor."
"“They’ll pick up a phone when they call and stop a bill they don’t like,” he said. There has to be influence when someone receives such “eye-popping amounts,” he said. “It’s legal; it’s definitely done. Ninety-five thousand is a lot of money for a State Senate race, but anyone can do it anytime they want.”"