Rich Thomas Letter For Pardon
Rich Thomas Letter For Pardon
Rich Thomas Letter For Pardon
RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
February 8, 2022
Executive Summary of Restorative Justice Request – Pardon Mayor Thomas (and City
Corporation Counsel Porcari)
Dear Governor Hochul:
I hope you and your staff are staying safe and well during the pandemic. My name is Richard Thomas,
the former Mayor of the City of Mount Vernon. I write to ask that you grant a full and unconditional
pardon to both me and, while he is officially not part of this request as his case is on appeal with no
argument date scheduled, for Mount Vernon’s former Corporation Counsel Lawrence Porcari. I want to
thank you in advance for your thoughtful and careful review of my submission and trust that it will be of
assistance for you and your team to conclude that a pardon is merited.
In justice, there is injustice. As you read our story, you will see that our experience reflects the prequel
to America awakening to social justice issues. Until video showed the killings of George Floyd and
Breonna Taylor, no one believed the victims. The same went for the cover up of sexual abuse with Larry
Nassar and USA Gymnastics. No one believed the financial scandal at the College of New Rochelle until it
went bankrupt. Nothing should scare us more than the use of agencies like the New York State Office of
Comptroller or the Office of Attorney General to retaliate against those whose political views and policy
stances run counter to the New York Democratic establishment.
To put the matter in a blunt context, and as explained more fully in my submission, both Mr. Porcari and
I were victims of a deliberate campaign by certain state officials to overturn the will of the 77% of the
voters of Mount Vernon who had elected me to deal with the systemic corruption that plagues my City
to this very day. Attorney General Eric Schneiderman colluded with State Comptroller DiNapoli to
deprive the State Board of Elections of its primary jurisdiction as part of a plan to turn a civil matter of
mistaken reporting of less than $13,000 in expenses into a criminal one. To set matters in motion,
Comptroller DiNapoli issued a broad criminal referral to AG Schneiderman to Investigate the City’s
finances. This referral was a pretext as no such investigation was ever conducted. Instead, the true
purpose of the referral became clear as my campaign’s payments were the immediate and sole focus of
the criminal investigation. In fact, AG Schneiderman and Comptroller DiNapoli had intentionally
sidelined the State Board of Elections, the very agency to whom the Legislature had given exclusive,
primary jurisdiction over allegations of campaign violations, in order to criminalize conduct that, as was
the case with your Lieutenant Governor, the SBOE would have treated as a civil matter.
As the New York Times reports, the Attorney General lacks standing to investigate and prosecute
election law matters. 1 In fact, the AG needs a referral from the SBOE before it can open a criminal
investigation into anything related to campaign issues. In my case, that “referral” was never provided by
the SBOE to the AG. This truth caused a Manhattan Justice to rule that the AG’s investigation was
illegal; however, the AG gamed the system by indicting me before the Justice could rule and before I
could testify before that grand jury.
The bottom line is my due process was stolen by the AG who was enabled by the State Comptroller. The
consequences for me, Mr. Porcari, and the City of Mount Vernon are staggering. For the City, this
includes, but is not limited to, losing its municipal credit rating with Moody’s Investor Services, severely
impacting the City from affordably financing its needs.2 (Note: I explain this and more in the long form
request that is attached to this letter and summarized below.)
As the AG spent 4 years and approximately $1 million state tax dollars to illegally prosecute me for
$12,900 in accounting errors, the Mount Vernon Comptroller(s) racked up $170+ million in
unauthorized, non-payroll spending that is now pushing the City to the brink of bankruptcy.3
The sad truth is I brought various corruption issues to the attention of the AG and Comptroller as soon
as I took office in 2016. At the same time, I was working with the SBOE to correct errors in my campaign
filings by volunteers – one of whom was my grandmother’s friend who, stricken with Stage IV cancer did
her very best but passed away during the process. Clerical errors were inevitable, but they were not
criminal. The hard truth is I should have been treated the same way your Lieutenant Governor was
treated in his campaign finance situation, that is, the SBOE worked with his team to resolve issues in a
civil manner as the law requires. Can you imagine if the AG abused her power to criminalize his misstep
(which was twice as much money) as she did to me?
Still, I take and took responsibility for my campaign’s mistakes made and tried to correct these errors by
hiring seasoned professionals to handle these matters. Regardless of my good faith efforts, the AG and
State Comptroller abused their power. They used their investigation into the Mount Vernon’s finances
as a ruse to retaliate against me for disrupting systemic corruption that hurt the People of my
community.
Later, even as Mount Vernon’s financial situation was reaching crisis proportions because of City
Comptroller Deborah Reynolds ongoing dereliction of duty, Governor Cuomo refused to act on our
petition for him to exercise his authority to remove her. Whether discussions with the AG and State
Comptroller persuaded him not to intervene, we do not know. That petition set out in detail how City
1
“Accord With Comptroller Will Help Attorney General Pursue Corruption Cases,” Nicholas Confessore, New York Times, May
22, 2011 | LINK: https://www.nytimes.com/2011/05/23/nyregion/ny-attorney-general-granted-power-in-corruption-
cases.html
2
“Rating Action: Moody's places 5 local governments' ratings on review due to insufficient information and withdraws
ratings on Mount Vernon, NY,” Moody’s Investor Service, January 2, 2019 LINK:
https://www.moodys.com/research/Moodys-places-5-local-governments-ratings-on-review-due-to--PR_905667969
3
“City of Mount Vernon – Non-Payroll Disbursements (2021M-163),” New York State Comptroller’s Office, Issued January 31,
2022 | LINK: https://www.osc.state.ny.us/local-government/audits/city/2022/01/31/city-mount-vernon-non-payroll-
disbursements-2021m-163
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Comptroller Reynolds was destroying the City’s very financial viability, including but not limited to her
refusal to pay approved bills and her refusal to pay for audits of the City or its agencies (resulting in the
loss of Mount Vernon’s credit rating). In addition, she was found to be paying her favored vendors and
otherwise disbursing City funds without either oversight or authorization. Her pattern of non-payment
created an emergency environment by which the City and its agents had no other choice but to operate
through court orders – which she ignored – or through other Charter granted and lawfully independent
authority.
All of these (and other) matters were known at the time, many having been uncovered in reports
submitted by the City’s Inspector General that I then had posted on the City’s website for all to see. Yet,
at no point did AG Schneiderman, AG James, or Comptroller DiNapoli investigate any of it. As my
submission details, when Comptroller DiNapoli was given a later opportunity to audit the City, he
removed the audit team within 24 hours of their arrival, claiming later that no audit could be done in
light of all the litigation going on, including between me and Comptroller Reynolds.
Yet, ongoing litigation proved no impediment to Comptroller DiNapoli finally issuing his January 31, 2022
report finding approximately $170 million in unauthorized, non-payroll transactions, conveniently
released only after City Comptroller Reynold’s term in office ended.4 The report is a classic case of too
little, too late. While it has vindicated my claims in full, albeit without mentioning me, significant but
entirely avoidable damage was done to my beloved City as a result of Comptroller DiNapoli’s political
decision, aided by AG Schneiderman and AG James and with the acquiescence, knowing or unknowing,
of Governor Cuomo, to prioritize removing the squeaky wheel (me) over protecting the wellbeing of the
residents of Mount Vernon.
Comptroller DiNapoli’s findings prove conclusively that my administration ’s attempts to root out
corruption were hamstrung by an out-of-control City Comptroller with respect to whom he took no
timely action. Worse, he deliberately averted his gaze and chose to be complicit with AG Schneiderman
and AG James in their improper criminalization of a campaign finance matter. My due process rights
matter. Had they been respected as required by law, none of this would have happened to me or Mount
Vernon.
As set out in greater detail in my submission, the unmistakable truth is that Mr. Porcari and I were
improperly targeted and railroaded by a network of corrupt, powerful State interests that sought to
shield those implicated in Mount Vernon’s systemic corruption.
This Executive Summary letter provides an overview of what we are asking for and why:
1. Full pardons for myself (and please note that I am asking for Mr. Porcari too) because the whole
matter was poisoned from the beginning. AG Schneiderman abused his lawful authority for
partisan political ends, including: (i) refusing to forward an election law complaint his Office had
4
“City of Mount Vernon – Non-Payroll Disbursements (2021M-163),” New York State Comptroller’s Office, Issued January 31,
2022 | LINK: https://www.osc.state.ny.us/local-government/audits/city/2022/01/31/city-mount-vernon-non-payroll-
disbursements-2021m-163
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
received to the only state agency given the exclusive jurisdiction to review the matter, the State
Board of Elections; (ii) intentionally depriving a Manhattan Supreme Court Justice of his
jurisdiction so that his finding that the AG investigation was in fact illegal became non-binding;
and (iii) misleading a Westchester County Justice that the campaign matter was unexpectedly
uncovered during an entirely unrelated investigation referred by Comptroller DiNapoli - when it
had been the subject of the very complaint it refused to forward to the State Board of Elections.
2. The broad criminal investigation into Mount Vernon’s Finances never happened as Comptroller
DiNapoli’s referral was entirely pretextual. Had that investigation taken place, the corruption
that I had told them of would have been revealed at a time when action might have been taken
that would have maintained the City’s credit rating and avoided the destruction of financial
accountability that worked to derail my administration from its electoral mandate of tackling the
City’s notorious corruption. Instead, and as a direct result of these political machinations that
put politics over the people of Mount Vernon, substantial and entirely avoidable damage was
inflicted on the City and its residents.
3. City Corporation Counsel Porcari was, in a sense, collateral damage in this campaign. Yet all he
did in this context was to defend the Executive Branch and its prerogatives, as required by the
City Charter and in the same manner as any other Corporation Counsel around the State and
indeed by your own Counsel. One key difference must count in Mr. Porcari’s favor: he worked
under far more trying circumstances, as City Comptroller Reynolds intentionally bled his Office
dry of funding and resources.
4. Mr. Porcari was ultimately prosecuted for rendering a legal opinion that stood in the way of AG
James’ attempt (successfully as it turned out) to interfere with my counsel of choice and my
ability to defend myself. While a grand jury heard my testimony and rejected her attempt to
have me indicted on charges of improperly using City funds to pay my attorneys, Mr. Porcari was
not given the opportunity to be heard and was indicted without ever seeing so much as the
charging instructions given the grand jury. The implications here are deeply troubling as the
door is now open for prosecuting a Corporation Counsel (or Counsel to the Governor) for
rendering legal advice the AG does not like.
5. Comptroller DiNapoli does not deserve a pass for his conduct but must be called to account, as
should AGs Schneiderman and James. They each had a golden opportunity to help my
administration put an end to the financial and other improprieties that have plagued Mount
Vernon. If the 2016 open-ended criminal investigation into Mount Vernon’s finances of the City
of Mount Vernon had been legitimate, that would have happened.
6. Finally, as part of my pardon request, I also respectfully suggest that your Office propose
legislation to prevent the AG from depriving an agency of its exclusive primary jurisdiction to
investigate and determine how a complaint will be handled. The subterfuge employed against
me would never have happened had the Attorney General (or any agency) that receives a
complaint on a matter over which it lacks primary jurisdiction been required by law to forward it
promptly (a specific period which the law should specify) to the agency granted such jurisdiction
by the Legislature.
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Not knowing every detail of New York’s arcane election law is not in the same league as the AG denying
due process.
What happened to Mr. Porcari and me was wrong. Granting me/us a pardon can begin the process of
restoring our good names and reputations as honorable public servants. It can help restore the
confidence of the people of Mount Vernon, who are painfully aware of what was done to their City and
to the two of us, that the State is now at last on their side. Finally, in granting these pardons, your
Administration will signal that the days of tolerating corruption and cronyism and of empty rhetoric
about the need for change and accountability are over and a new day is finally dawning in New York.
Attached to this Executive Summary is a long form request letter with supporting evidence. I look
forward to assisting your staff however I can in advancing this request to a just conclusion. Further, I will
continue to make all the necessary documents available so that we can have a transparent and careful
review. I am hopeful for a complete resolution. I cannot thank you enough for your consideration and
time.
Respectfully submitted,
Richard Thomas
Former Mayor of the City of Mount Vernon
(2016-2019)
REQUEST FOR PARDONS
Hon. RICHARDBY NEW YORK STATE
THOMAS
[email protected]
February 8, 2022
RE: Restorative Justice Request – Pardon Mayor Thomas and City Corporation Counsel Porcari
Dear Governor Hochul:
I write seeking a full pardon for myself as former Mayor of the City of Mount Vernon and for my former
City Corporation Counsel Lawrence Porcari. I respectfully present below information that I trust will help
you and your team rule favorably and expeditiously on this request.
Page 2 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
complaint against me alleging campaign law violations (precisely what was never disclosed). That Office
held the complaint rather than pass along the complaint to the State Board of Elections, the only state
agency to have jurisdiction in such matters, including the power to determine whether it would proceed
civilly with the complaint (as was the case with your Lieutenant Governor) or criminally. The AG’s actions
were calculated to arrogate that determination to itself, in violation of the State Legislature’s clear
intent. 1
1
“Accord With Comptroller Will Help Attorney General Pursue Corruption Cases,” Nicholas Confessore, New York Times, May
22, 2011 | LINK: https://www.nytimes.com/2011/05/23/nyregion/ny-attorney-general-granted-power-in-corruption-
cases.html
Page 3 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
“express surprise” to see that there had been deposits from my campaign committee. They did not
indicate that any investigation into Mount Vernon’s finances, the actual subject of the criminal referral,
had ever taken place. No grand jury investigation into the “no show” allegation seemed to have taken
place either.
Had the Attorney General instead investigated the City’s finances under the referral or had Comptroller
DiNapoli conducted any audit in light of the Attorney General’s failure to proceed on his criminal
referral, all the wrongdoing identified by the City’s Inspector General (whose reports were publicly
available) would have been uncovered by the State Comptroller three years ago instead of in his just
released audit report which found over $170 million in unauthorized, non-payroll transactions by former
Comptroller Deborah Reynolds.2
Yet, State Comptroller DiNapoli had every opportunity to investigate and assist in rooting out the
corruption that was plaguing the City. In early 2019, as part of a statewide review, Mount Vernon had
been randomly selected for an audit of its Board of Ethics that I was told would last several weeks. Yet,
within 24 hours of the team’s arrival, they left explaining that the order came from higher ups. The
eventual public explanation from State Comptroller DiNapoli’s office was that an audit would be
inappropriate given the existence of unrelated litigation involving the City, (many of which I brought to
force City Comptroller Reynolds to do her job properly), and the criminal case against me. Curiously, that
excuse of ongoing litigation did not prevent State Comptroller DiNapoli from performing his current
audit once I was out of office. Apparently, it seems all that was needed was a disclaimer that no legal
views were being expressed.
CAPTION: “Dragon” On March 22, 2019, the MVCSD sued Comptroller Reynolds for not
transferring $31 million in school district funds. LINK: https://patch.com/new-
york/mountvernonny/mvcsd-sues-comptroller-reynolds-withholding-school-taxes
2
“City of Mount Vernon – Non-Payroll Disbursements (2021M-163),” New York State Comptroller’s Office, Issued January 31,
2022 | LINK: https://www.osc.state.ny.us/local-government/audits/city/2022/01/31/city-mount-vernon-non-payroll-
disbursements-2021m-163
Page 4 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
TOILET PAPER FOR SENIORS? GAS FOR CITY VEHILCES? NOTHING MATTERED.
CAPTION: “Vultures” – LR: Councilman Andre Wallace, Comptroller Deborah Reynolds, Reynold’s husband Carl Beasley, and Councilman
Marcus Griffith following Mount Vernon Seniors Occupying City Hall for Toilet Paper and Senior Center bills to be paid, October 2018
Had the Attorney General (at this point, Letitia James) done her job, many of the harms belatedly
identified by the State Comptroller done to the City at the hands of City Comptroller Deborah Reynolds
might have been avoided. Had State Comptroller DiNapoli done the job for which he was elected, all of
those harms to the City would have been avoided. This includes, but is not limited to, the City losing its
municipal credit rating with Moody’s Investor Services, severely impacting the City from affordably
financing its needs.3 Our petition to remove City Comptroller Reynolds went unanswered by your
predecessor Governor Andrew Cuomo, perhaps due to his mistaken belief that AG James and
Comptroller DiNapoli were acting in good faith toward the people of Mount Vernon and would deal with
all the issues raised in our petition. If so, then his reliance on AG James and Comptroller DiNapoli was
grievously misplaced. (See Attachment 5 - Petition to Remove Comptroller Reynolds filed October
2018.)
Nothing mattered. As featured above and below, even seniors occupying City Hall humiliatingly forced
to demand toilet paper for their senior center was ignored. The level of depravity and inhumanity is a
disgrace. The only explanation for the not so benign neglect shown by these State officials was that any
assistance at the State level would have greatly facilitated my electoral mandate to cleanse Mount
Vernon of its longstanding systemic corruption. Instead, not unlike George Floyd, my beloved City was
left to die its slow death in broad daylight.
3
“Rating Action: Moody's places 5 local governments' ratings on review due to insufficient information and withdraws
ratings on Mount Vernon, NY,” Moody’s Investor Service, January 2, 2019 LINK:
https://www.moodys.com/research/Moodys-places-5-local-governments-ratings-on-review-due-to--PR_905667969
Page 5 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
CAPTION: Seniors Occupy City Comptroller Office demanding payment for toilet paper and food at the Senior Center.
October 17, 2018 | LINK: https://mayorrichthomas.medium.com/outraged-seniors-occupy-comptroller-deborah-
reynolds-office-call-for-reynolds-to-pay-bills-and-d400143a34da
Page 6 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
by the Law Department as they were beyond my financial capabilities, a fact recognized by the Attorney
General at the time given her later efforts to disrupt my attorney-client relationship by threatening my
attorneys with prosecution for accepting unauthorized government funds. Instead, I would have sought
out counsel well within my means or, if I had no alternative, try to defend myself pro se which would
have inevitably impacted my ability to focus on my official duties.
CAPTION: “Who Controls the People’s Money?” – LR: Mount Vernon residents seek federal program funds from Comptroller Deborah
Reynolds who is ignoring U.S. Dept. of Housing and Urban Development on releasing millions in aid to the People of MV, May 2018
In using the criminal referral into the City Finances as a pretext to prosecute me for campaign matters,
the Attorney General needed to sideline the State Board of Election which had primary jurisdiction in
the matter. What was supposedly at issue was approximately $12,900 in reimbursements that the State
Board of Elections would have treated as a civil matter, in a manner perhaps similar to your Lieutenant
Governor’s experience, though the amount he was required to repay his campaign was double mine.4
4
To be frank, I had and have no incentive to steal money from my campaign, the City, or anyone. I worked too hard in life to
earn what I earned – a wife, kids, advanced academic degrees, and my dream job of becoming Mayor of my hometown.
There was too much at stake to give everything up for petty cash, especially my name. The illegal prosecution was political
and designed to distract from real crimes against my community.
Page 7 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Because the Assistant Attorney General in charge failed to provide my attorneys with a copy of the
criminal referral from the State Board of Elections he said his Office received (which my attorneys
suspected at the time was a lie, as was later confirmed in a prosecutor’s sworn statement that the State
Board of Elections had never made any referral), my attorneys brought an Article 78 special proceeding
in New York County to prohibit any grand jury action because, we argued, the investigation was illegal
and a violation of the jurisdictional regime created by the State Legislature that gave exclusive primary
jurisdiction over election and campaign matters to the State Board of Elections alone. In response, the
Assistant Attorney General in charge of the matter asked for additional time which was granted as a
professional courtesy, not knowing that this additional time would be used to vote an indictment and
thereby deprive me of my due process rights as well as the New York County Justice of jurisdiction to
consider the matter. In contrast, my attorneys’ request for the reciprocal courtesy of allowing the Court
to decide the issue before rescheduling my grand jury appearance was rejected which we later learned
was the necessary formality to voiding my notice to testify and allowing the grand jury to proceed to its
vote. In retrospect, divesting the Justice of his jurisdiction took precedence over safeguarding my due
process right to testify before the grand jury.
So put out was the judge by the AG’s conduct, that he went on to agree that the investigation was illegal
but could no longer do nothing about it. In his decision, he explained:
“In the final analysis, if this Court were forced to decide whether or not the AG had the
authority to investigate the matters at hand, it would decide that it did not. Applying expressio
unius est exclusio alterius, if the AG can properly investigate matters over which a referring
entity had authority, then the AG, an entity with broad but limited powers, cannot properly
investigate matters over which the referring entity did not have authority. Applying the rule that
the specific controls the general, general language about broad powers cannot overrule the
specific limit here found. Finally, applying Cuttita, the AG simply did not have the power here
claimed.” NYCEF Index No. 154456/2018, Dated: 5/21/2018
It may have been as a result of this litigation that the Assistant Attorney General prosecuting me
decided to interfere with my selection of counsel when he threatened to go after the law firm on the
grounds that the fees paid by Mount Vernon were illegal. Ultimately, my attorney resigned and I had to
scramble to find new counsel. Aware that I could not personally afford to retain the counsel I had but
was relying on a written opinion from my Corporation Counsel, the Attorney General convened another
grand jury timed to vote an indictment near the date of the primary for mayor. After I testified before
the grand jury, having waived my immunity, no true bill was rendered. However, unknown to anyone,
Corporation Counsel Porcari was also targeted. He was not given any opportunity to appear and so was
indicted essentially for providing a good faith legal opinion that the Attorney General opposed. For what
it may be worth, I was told that the court officers who were present at his trial were stunned when the
guilty verdicts were returned.
Page 8 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
LAW DEPARTMENT LOST ACCESS TO WEST LAW AND LEXIS NEXIS DUE TO NON-
PAYMENT AND HAD TO RELY ON OUTSIDE COUNSEL FOR VIRTUALLY ALL WORK
CAPTION: 1st Deputy Corp. Counsel Brian Johnson explains impacts of Comptroller
withholding payments to the Law Dept and City of Mt. Vernon on May 16, 2019.
Joined by Mayor Thomas, Corp. Counsel Lawrence Porcari and other Law Dept. staff |
Link: https://mayorrichthomas.medium.com/mount-vernon-comptroller-seizes-sole-
control-over-city-finances-with-no-oversight-882e045ed51
City Comptroller Reynolds’ refusal to pay for the City’s subscription to Westlaw and Lexis/Nexis resulted
in those legal research tools becoming unavailable to the Corporation Counsel.
“She now has sole control of the City finances without any oversight from the City Council or the
Mayor,” said Brian Johnson, deputy corporation counsel.5 “That means she can (do), and she has been
doing, anything that she wants. She pays whomever she wants without City Council or mayoral approval,
when ever she wants.”
CAPTION: “Behind Protected Glass,” Comptroller Deborah Reynolds and husband Carl Beasley sit
behind bullet proof glass, hoarding taxpayer money while Mayor Rich Thomas sits frustrated in her
office with Reynold’s $100k/year family-related security guard. November 2018
5
“MOUNT VERNON COMPTROLLER SEIZES SOLE CONTROL OVER CITY FINANCES WITH NO OVERSIGHT,” CMVNY Law
Department Press Conference with Mayor Richard Thomas, Medium.com, May 16, 2019 | LINK:
https://mayorrichthomas.medium.com/mount-vernon-comptroller
Page 9 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
As a result, invoking the emergency powers granted him under the City Charter, Corporation Counsel
Porcari looked to Arthur “Jerry” Kremer, a well respected partner at Ruskin Moscou Faltischek, for
assistance in researching the issue of, and drafting the legal opinion regarding the legality of Mount
Vernon paying for my defense against the state charges.
Mr. Kremer was also instrumental in crafting the language of the cover memorandum that was to
accompany every request for the Water Department’s payment of my legal fees. Mr. Kremer was an
obvious choice as he and his firm had been ably assisting Mount Vernon and its Water Department for
years and he was specifically aware of all the issues surrounding my case. Under the circumstances, Mr.
Porcari had every reason to seek out his assistance and rely on his conclusions. I later found out that the
two exchanged several emails and had several telephone conversations before reaching the conclusion
that my request was within the law.
CAPTION: Snapshot of voter irregularities following the June 2019 Mayoral Primary that AG James specifically asked in July 2019
that Mayor Thomas drop his case proving voter fraud in Mount Vernon.
Page 10 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
On the eve of my trial in 2019, my new set of attorneys demanded a forward payment of fees that I was
unable to make. The judge was not going to delay the trial and, after discussing the matter with my wife
we both recognized that my chances of a fair trial, even if I were to proceed pro se (I am not a lawyer),
were slim to none. I should add that two weeks before, I was a candidate in the primary and, the
weekend before Election Day, I received a call from someone at the County Board of Elections informing
me that I would not come within 200 votes of the winner. I “lost” by roughly 204. I went to court to
contest the result, and the justice asked me to provide sworn testimony or affidavits from persons
whose votes had been improperly rejected. At the next Court session, my attorney told the justice that I
had more than enough affidavits to prevail. He abruptly ruled that no evidence on the issue would be
accepted and dismissed my case.
The U.S. Bill of Rights hangs in the Mayor’s Conference Room in Mount Vernon City Hall. Due Process is an Inalienable Right.
As Hon. Jed Rakoff observed, the innocent often plead guilty and the guilty go free because the innocent
often cannot afford to defend themselves in our broken justice system.
To protect my wife and my two young children (now 6 and 9) and end this nightmare, I took the plea on
condition that I be allowed to remain as Mayor until September to oversee an orderly transition. The
Office of the Attorney General agreed to this condition but then did nothing when the City Council voted
to remove me from office - an action that contrasted sharply with its treatment of my predecessor Ernie
Page 11 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Davis who pled guilty to federal tax evasion charges but remained in office for the remaining year and a
half of his term, another data point establishing the political motivations behind the abuse of
prosecutorial authority.
6
“City of Mount Vernon – Non-Payroll Disbursements (2021M-163),” New York State Comptroller’s Office, Issued January 31,
2022 | LINK: https://www.osc.state.ny.us/local-government/audits/city/2022/01/31/city-mount-vernon-non-payroll-
disbursements-2021m-163
7
It is important to note that the January 2022 state audit resists acknowledging that the policies and procedures were in
place. As Mayor, I obtained numerous Court Orders to enforce them against the City Comptroller(s) and City Council
between 2016 and 2019; however, I received no systemic support from the State of New York to effectuate such. The
report also fails to explain why the City’s financials are not posted with the State Comptroller going back to Fiscal Year 2016.
Why? Because the problems are bigger and run deeper. (See Attachment 14 – NYS Open Book PDF’s on MV’s Blank Record.)
Page 12 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
amplified by the preliminary findings of Baker Tilly, a forensic accounting firm, whose retention for a full
audit was blocked by the City Council and City Comptroller Reynolds.
Page 13 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
DECONSTRUCTING BUILDINGS
DEPARTMENT CORRUPTION
As HARVARD pointed out, they too could
not understand why a city of 80,000
people would only have one building
inspector. The New York State Senate
asked the same question and even
offered my administration help in
securing state funding to strengthen
Building Department services. Be very
critical here. Ask… under these
circumstances… under this “operational
crisis by design”… “What is the value of a
permit? How easy would it be to
influence applicants to select associates
of the only Building or Plumbing
Inspector?” These queries may seem far
from the point of this pardon request, but
they are inextricably intertwined. The
truth behind the “Why” offers context on
how vast and lucrative the systemic
corruption is in Mount Vernon. As I
introduced principles of transparency and
fair market competition across City Hall,
that system was threatened and in one
year the revenues generated by Mount Vernon’s Building Department went from a net $17,000 to over
$1.8 million annually along with the average permit time dropping from 8 or more months to less than 8
business days. Those that had until then benefited from the “shadow government” were angry and
stood to lose more than money, that is, had prosecutors been interested in ending these corrupt
practices, quite possibly their freedom.
ASK QUESTIONS & QUESTION ANY OF THOSE WHO MAY OPPOSE OUR PARDONS
My professors at the Stern School of Business taught me that systems perform as designed. As Mayor, I
sought to design performance systems that continuously improved operations to benefit the people of
Mount Vernon. The other side, possibly including certain people in the Attorney General’s office, will
point to various city litigations or alleged use of “inaugural funds” to sow doubt about my personal
integrity; however, ask yourself if any of this would have happened if they did not illegally bypass the
State Board of Elections. Why did they lie about that? Recall, they opened an investigation into Mount
Vernon’s finances… but never investigated the City’s finances – they only looked at me. Then
Comptroller DiNapoli used the excuse of “ongoing litigation” as the reason for not even conducting a
Page 14 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
timey audit, let alone push the Attorney General on the broad criminal investigation that he had
supposedly authorized. Instead of protecting the interests of the residents of Mount Vernon, these State
authorities stood idly by as Mount Vernon’s Comptrollers made approximately $170,000,000 in
unauthorized transactions with taxpayer money.
As such, if there is a need to go “tit for tat” on city litigations – both won and others (sabotaged by
entrenched politics and) lost, I would be more than happy to discuss my administration’s efforts to
protect the health and welfare of the people of Mount Vernon, specifically as it relates to extreme
measures taken to comply with federal and state environmental mandates pertaining to the Clean
Water Act. Further, should issues around “Inaugural Funds” creep in, please keep in mind that outside of
New York City, Inaugural Funds are governed differently. The fact is all applicable laws were followed
and taxes paid. The only fee I did not pay was a $50,000 demand made by a recently deceased political
boss. Fast forward, the current Mayor of Mount Vernon has had to use her Inaugural Fund in a similar
manner as I did, including getting wardrobe items for the Inaugural Ball. Yet there is no hint of state
prosecutors scrutinizing her expenses like they did mine. Maybe the new Mayor paid the political entry
fee that I refused? Or, given the massive amount of money mishandled by Mount Vernon’s
Comptrollers, maybe there is another twist to her role as the current Mayor? (See Exhibits 3 and 3A of
Attachment 2)
Mayor Rich Thomas speaks on why “All Lives Matter” to release tension between
police and the community during press conference held at MVHS July 19, 2016 |
Link: https://www.huffpost.com/entry/the-work-to-rebuild-trust_b_10991998
Think about it. George Floyd lost his life over an allegedly counterfeit $20 bill. The disgraced Controller
at the College of New Rochelle denied the existence of his Ponzi scheme until it fell apart. What lengths
would corrupt forces go to keep the truth behind hundreds of millions of taxpayer dollars in various,
documented schemes secret? Despite what Mr. Porcari and I have endured, I remain convinced that
Mount Vernon can be returned to its former glory. I will not be stopped by the misdemeanor conviction
I was forced to accept. I know that being pardoned will materially assist me in my quest to clean my City
up, because that will be a clear signal that a page has been turned and New York State will help local
government fight corruption wherever and whenever it rears its head.
Page 15 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
The New York Times warned about the NYAG’s potential abuse of power when they observed that,
“The agreement between Mr. Schneiderman and Mr. DiNapoli has significant limits: The
attorney general will still lack standing to investigate allegations of criminal violations of election
law, or to investigate the Legislature for offenses unrelated to the expenditure of state money,
like a lawmaker’s failure to disclose outside income.”8
The irrefutable truth is that the SBOE did not issue a criminal referral to the NYAG. It is more than likely
that the SBOE never would have given AG Schneiderman what he wanted. This appears to be why AG
Schneiderman used Comptroller DiNapoli’s broad criminal referral to make a false narrative and
criminalize routine election activities that the SBOE would have handled with a civil penalty, if that. This
is a primary reason why we are seeking pardons. Please know that I take and took responsibility for
clerical errors in my 2015 campaign, but they were just that – clerical errors made with no malice or
intent.
Specific to Mr. Porcari, it boils down to how legal procedures are applied as opposed to the letter of the
law. The law is clear he had the authority to act as he did under Mount Vernon’s Local Law 17; however,
the AG ignored it all in its attempt to drive me from the Office to which I had been duly elected by 77%
of the voters of Mount Vernon. This is in addition to the legal advice of highly respected Outside Counsel
that Mr. Porcari received, relied upon, and followed through on in authorizing the use of resources of
the Water Department, a quasi-independent agency of the City to defend its agents. (Recall that this
was the agency that was the subject of the AG’s suspiciously short-circuited investigation into a “no-
show” job.) The implications here are deeply troubling as the door is now open for prosecuting a
Corporation Counsel for rendering legal advice the AG does not like.
8
“Accord With Comptroller Will Help Attorney General Pursue Corruption Cases,” Nicholas Confessore, New York Times, May
22, 2011 | LINK: https://www.nytimes.com/2011/05/23/nyregion/ny-attorney-general-granted-power-in-corruption-
cases.html
Page 16 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Another example of the double standard in when government can pay for an official’s defense concerns
former Governor Andrew Cuomo. State Comptroller Thomas DiNapoli, who discussed the State’s
obligation to Governor Cuomo on WAMC Radio earlier this year, said that the State must pay former
Governor Cuomo’s legal fees without exception. 10 Again, the many allegations made against him, for
personal as well as public conduct, go well beyond anything I was accused of in both breadth and
potential severity. Yet, the Counsel to the Governor (or equivalent to a Corporation Counsel) is joining
the State Comptroller to administer payment of his attorneys. By
coincidence, former Governor Cuomo is represented by Randall
Jackson, the same person that the Mount Vernon Law
Department retained on my behalf and who was forced from my
case by the AG’s threats, effectively undermining my case to,
among others, the AG’s political advantage. As you know, the
state’s process for providing legal representation to current and
former officials is very similar to Mount Vernon’s, including its
agencies and authorities that are independent of the City’s Board
of Estimate. As the AG will never prosecute the Governor’s
Counsel, Comptroller DiNapoli, and Cuomo’s state funded
attorneys on a similar claim of improper payments, perhaps there
is a double standard of justice after all?
9
“Banking While Black: Chase Calls Cops on Mayor Thomas,” YouTube, 1.3 million views, April 2019, LINK:
https://www.youtube.com/watch?v=oRs_l2pmmdM
10
“New York State Comptroller Thomas DiNapol Interview,” WAMC Northeast Public Radio, September 23, 2021, Link:
https://www.wamc.org/show/the-capitol-connection/2021-09-23/the-capitol-connection-2139-new-york-state-
comptroller-thomas-dinapoli Note: Within the first 7 minutes of the interview, Comptroller DiNapoli discusses why New York
State is paying former Governor Cuomo’s legal fees without end in sight.
Page 17 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
mission of protecting the health and welfare of the People of the City. I also advised them in 2016 that I,
as the Chief Executive Officer, would be enforcing the provisions of our City Charter which requires a
two-signature process for ALL bank transactions, consistent with our contract with the bank. The bank
refused and told me to get a Court order. Despite multiple Court Orders and the plain language of the
Mount Vernon City Charter on top of the bank’s contract with the City, I was never granted access
because City Comptroller Reynolds had convinced them that she, not Mount Vernon, was the actual
client. Whether this came with an implicit threat to move the City’s banking business elsewhere, I do not
know.
As previously mentioned, instead, the bank called law enforcement (claiming that there was an armed
person on the premises - that person was my police assigned guard whom the bank had been informed
was armed as he was on duty) and allowed the Comptroller Reynolds to remove me from being a
signatory on the City’s accounts – a direct violation of our City Charter. 11
In 2016 and numerous times throughout my tenure as Mayor, I warned the bank that should anything
go awry with Mount Vernon’s money that my administration would hold them liable. Today, we know of
at least $170 million in unauthorized non-payroll transactions by both Comptrollers Maureen Walker
and Deborah Reynolds that the bank should pay for.
For ready reference, a transcript and link to an audio file from my conversation with the bank outlining
the above concerns from May 12, 2017. (See Attachment 15 – Mayor Thomas JP Morgan Convo on
Stopping Bank Wires Solely by Comptroller Walker.) (This is a sampling of what Mr. Porcari and I went
through and more records of this kind will be made available at the appropriate time.) The bottom line is
the bank continued its pattern and practice of reneging and rejecting its obligations to me as Mayor of
the City of Mount Vernon and failed to honor its own fiduciary duties and obligations. It is apparent that
their conduct is not a mistake.
We hear chants of “I can’t breathe,” well the truth is Mount Vernon – a city of beautiful color – cannot
bank. It is apparent that the problems that Mr. Porcari and I faced were much bigger than previously
known. For example, as Mayor, my own efforts at rooting out corruption throughout City government,
and specifically in its police department, were routinely hampered by state and local officials with
“investigative powers.” It was the U.S. Department of Justice, not any state or local agency, that
launched an investigation into the Police Department that has finally validated my claims and concerns
dating back to 2012 when I served on the City Council. 12
11
“MOUNT VERNON COMPTROLLER SEIZES SOLE CONTROL OVER CITY FINANCES WITH NO OVERSIGHT,” Mayor Richard
Thomas, Medium.com, May 16, 2019 | LINK: https://mayorrichthomas.medium.com/mount-vernon-comptroller-seizes-
sole-control-over-city-finances-with-no-oversight-882e045ed51
12
“Justice Department Launches Investigation of the Mount Vernon Police Department,” U.S. Department of Justice Southern
District of New York, December 3, 2021 | Link: https://www.justice.gov/opa/pr/justice-department-launches-investigation-
mount-vernon-police-department
Page 18 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
This begs the necessity to ask more fundamental questions. If we are to believe “Black Lives Matter,”
how can we tell if “Mount Vernon matters” given its (mis)treatment by former and current state
officials?
The $170 million fiasco with Mount Vernon’s finances could have been stopped if the State Comptroller
actually investigated the City’s finances in 2016. Additionally, Mount Vernon would not have lost its
credit rating with Moody’s Investor Service. 13, 14
What was so important that the AG had to lie and spend over $1 million (in going beyond its jurisdiction)
to wrongfully prosecute me for campaign accounting errors amounting to $12,900?
Why did the Comptroller DiNapoli ignore our school district when they sued City Comptroller Reynolds
for not transferring over $31 million in education funds?
When the City of Mount Vernon could not pick up residential trash in 2019 because our garbage trucks
ran out of gas and struggled with inoperable equipment, why was the matter dismissed as “political” by
the State of New York - when the State Comptroller’s audit has confirmed what we said all along? What
political advantage in sidelining me and my Administration could justify allowing garbage to pile up and
threaten public health?
In short, why did the State stand idly by and watch while the City of Mount Vernon descended into
political chaos during my tenure as Mayor?
13
“Rating Action: Moody's places 5 local governments' ratings on review due to insufficient information and withdraws ratings
on Mount Vernon, NY,” Moody’s Investor Service, January 2, 2019 LINK: https://www.moodys.com/research/Moodys-
places-5-local-governments-ratings-on-review-due-to--PR_905667969
14
“COMPTROLLER REYNOLDS SETS UP MOUNT VERNON TO LOSE MILLIONS,” CMVNY Press Conference on Loss of Credit
Rating with Mayor, Commissioners, Inspector General, Medium.com, January 29, 2019 | LINK:
https://mayorrichthomas.medium.com/comptroller-reynolds-sets-up-mount-vernon-to-lose-millions-52514563074
Page 19 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
When City Comptroller Reynolds repeatedly closed her office during normal business hours, effectively
shutting down large segments of the real estate industry, why did the State of New York stand idly by?
Page 20 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
Why did he only pretend to open an investigation into the City of Mount Vernon’s finances in 2016, but
never pursue any audit into the handling of Mount Vernon’s finances? This could have made a
difference and preserved millions in taxpayer dollars while relieving unnecessary suffering to City
residents, workers, and vendors.
February 2019 Now with the truth out about $170 million
spent on unauthorized transactions,
coupled with a Department of Justice
investigation into the Mount Vernon Police
Department, maybe now someone will
believe us that we never were the criminals
in this story.15 AG Schneiderman resigned
in disgrace once his secret (except around
Albany insiders) history of alcoholism and
abusive conduct toward women was
exposed, yet he should be called to
account for his conduct in this matter. AG
James needs to come clean on why she
pursued my unlawful prosecution while
allowing corruption to run rampant.
Comptroller DiNapoli must also explain the
complete abdication of his responsibilities
toward the people of Mount Vernon. These
officials used their power to manipulate
the levers of government not only against
Mr. Porcari and me but, worse, to the
detriment of every person living in Mount
Vernon. We all deserved better and most
respectfully we are all looking to you to
begin the process of restoring everyone’s
faith in a system that has so far failed so
many in my beloved City.
15
“Justice Department Launches Investigation of the Mount Vernon Police Department,” U.S. Department of
Justice Southern District of New York, December 3, 2021 | Link: https://www.justice.gov/opa/pr/justice-
department-launches-investigation-mount-vernon-police-department
Page 21 of 22
Hon. RICHARD THOMAS
[email protected]
77 Douglas Place Tel: 917-703-4564
Mt. Vernon, NY 10552 Fax: 914-668-8101
PLEASE RESTORE OUR GOOD NAMES AND GIVE US A SHOT AT A NORMAL LIFE
Based on the above, I pray that I have made my case for full and complete pardons for me and Lawrence
Porcari, albeit he is not officially a part of this submission. Our lives have been literally destroyed,
affecting our abilities to care for our families. What happened to us was wrong and was retaliation from
larger, darker, dirty political forces. A pardon can begin the process of restoring our good names and
giving us another shot at living a normal life. Perhaps as important, these pardons will serve as a clear
signal that your Administration will not tolerate corruption and abuse of State enforcement powers for
partisan purposes. It will also show that your Administration means to take action and not content itself
with empty rhetoric of clean and ethical government. Should you or your team require more
information or additional submissions from me, I will be more than happy to oblige as much is at stake.
###
Thank you for your time and consideration. I hope you agree that we were treated unfairly and will take
action to right the wrongs committed against us and the people of my beloved Mount Vernon.
Respectfully Submitted,
Richard Thomas
Former Mayor of the City of Mount Vernon
2016-2019
P.S. Each illustration in this document was hand drawn, in real time starting in 2016 by David Abrevaya,
a staff member who served on my communications team to whom I am forever grateful. He and I worked
on these depictions to capture unbelievable moments of my tenure as Mayor of Mount Vernon. This was
done in the spirit of Thomas Nast because we believed then as we do now that we were up against
Modern Day Boss Tweeds. You can find David online at https://www.davidabrevaya.com/ or on
Instagram at IG handle @david_abrevaya https://www.instagram.com/david_abrevaya/
Page 22 of 22
“Scales”, depicting Comptroller
Maureen Walker fighting with then City
Council President Marcus Griffith and
Councilman Andre Wallace hoisting him
up to take Mount Vernon’s money and
power with Mayor Richard Thomas
telling them Mount Vernon belongs to
the People. Issued February 2017 by
David Abrevaya
ATTACHMENTS
Attachment 1 – Kelly Admits to Changing and Seeking to Delete Police Records
Attachment 2 – 2017 Corruption Memo Ignored By NYAG
Attachment 3 – URA Memo Raising Massive Fraud Concerns with Federal Tax
Dollars
Attachment 4 – Baker Tilly Letter Validating Material Misstatement Concerns of
the MV URA
Attachment 5 – Petition to Remove Comptroller Reynolds filed October 2018
Attachment 6 – Mayor Richard Thomas Request for Legal Opinion from CMVNY
Law Department
Attachment 7 – CMVNY Law Dept. Legal Opinion In Response to Mayor Richard
Thomas Request for Legal Opinion
Attachment 8 – Mount Vernon City Charter Section 153
Attachment 9 – Mount Vernon Local Law 17
Attachment 10 – Mount Vernon Procurement Policy
Attachment 11 – Inspector General Report on the Mount Vernon Urban Renewal
Agency
Attachment 12 – Inspector General Report on Mount Vernon Comptroller
Deborah Reynolds Detailing her Efforts on Breaking Systems and Defying Charter
Established Procedures
Attachment 13 – Inspector General Report on Mount Vernon Comptroller
Deborah Reynolds Non-Payment of Bills Except Hers
Attachment 14 – NYS Open Book PDF’s of Mount Vernon’s Finances between
2016 and 2020
Attachment 15 – Audio and Transcription of Conversation with Mount Vernon’s
Bank Representative on Comptroller Maureen Walker’s Un-Authorized Use of
Wire Transfers
Attachment 1 – Kelly Admits to
Changing and Seeking to Delete Police
Records
MAYOR THOMAS CONFRONTS POLICE COMMISSIONER
ROBERT KELLY ON CHANGING AND SEEKING THE
DELETION OF POLICE REPORTS RELATED TO CITY HALL
BREAK IN AND REMOVAL OF FEDERAL DOCUMENTS
AUDIO TRANSCRIPT: 30 SECONDS
RE: Former Mount Vernon Mayor Richard Thomas (with former senior advisor
and Microsoft Assistant General Counsel Bruce Jackson) conducting a 90 Day
Management Review Discussion With former Police Commissioner Robert Kelly
DATE: April 6, 2016
TIME: 3:00 PM (Approx.)
AUDIO DURATION: 30 Seconds (of 45+ minute meeting)
AUDIO FILE SHORT LINK: http://bit.ly/KellyChangedMVPoliceReport
AUDIO FILE SOURCE LINK:
https://www.dropbox.com/s/qk98m1tp5s9srkf/2016-04-06-
convo%20With%20Kelly%2090%20Systems%20Check%20Copy.m4a?dl=0
Mayor Richard Thomas: What was the rational to change the report
from trespasser to something else in the police report?
Police Commissioner Robert Kelly: I regret doing that I will tell you
that I regret doing that because at that time I was trying to not be peace
maker but trying to alleviate anything that’s my mistake and I own that
one hundred percent and I thought I was doing the right thing trying to
put out the fires. Uhm…in retrospect I wouldn’t do it again my mistake
one hundred percent. I own that.
Attachment 2 – 2017 Corruption Memo
Ignored By NYAG
Attachment 3 – URA Memo Raising
Massive Fraud Concerns with Federal
Tax Dollars
Attachment 4 – Baker Tilly Letter
Validating Material Misstatement
Concerns of the MV URA
Attachment 5 – Petition to Remove
Comptroller Reynolds filed October
2018
BEFORE THE HONORABLE ANDREW M. CUOMO
GOVERNOR OF THE STATE OF NEW YORK
................................................................................. X
IN THE MATTER OF CHARGES AGAINST
DEBORAH REYNOLDS, COMPTROLLER OF
THE CITY OF MOUNT VERNON
X
NOW COMES the City of Mount Vernon (“Petitioner”) by and through counsel,
Meyer, Suozzi, English & Klein, P.C., and, pursuant to Section 26 of the Charter of the
City of Mount Vernon and Section 33 of the New York State Public Officers Law, for the
reasons set forth below, and for other reasons to be adduced, hereby moves the Honorable
Andrew M. Cuomo, Governor of the State of New York, for an Order (a) removing from
office Deborah Reynolds, the elected Comptroller of the City of Mount Vernon, and (b)
INTRODUCTION
1. Under Section 13 of the Charter of the City of Mount Vernon, New York (the
“Charter”), the City of Mount Vernon (“Mount Vernon” or the “City”) has an elected
Comptroller.
elected in 2017 and took office January 1, 2018. She holds office now.
3. Charter Section 91 states that “the Comptroller shall superintend the financial
affairs of the City and manage the same pursuant to law and ordinances of the City
Council.”
4. Charter Section 91 states that “no money shall be drawn from a City
depositary except on check or draft signed by the Comptroller or the Deputy Comptroller
the City of Mount Vernon and to pay the City’s bills. Her performance of these duties in
a competent and timely fashion is critical to the City’s operation. Mount Vernon depends
upon a constant flow of goods and services in order to serve its residents. If the Comptroller
does not pay the City’s bills, vendors who provide goods and services will cut the City off.
who supply Mount Vernon with goods and services, the City’s operations are on the verge
of breakdown.
Comptroller fails to meet these obligations, this jeopardizes City funding and puts it at risk
financial filing requirements, she has jeopardized certain funding opportunities and raised
the possibility that Mount Vernon is not in compliance with mandated legal reporting
obligations.
2
9. As we describe below, the Comptroller’s bizarre and inexplicable refusal to
perform her duties puts the health and safety of the citizens of Mount Vernon at risk, it puts
the City of Mount Vernon in legal jeopardy, jeopardizes state funding, and makes it
10. The City of Mount Vernon hereby request the extraordinary remedy of
removing the Comptroller from office because her refusal to perform her duties endangers
its residents, and makes it impossible for the City of Mount Vernon to function and to
12. Public Officers Law Section 33(2) (“Section 33(2)”) gives the Governor the
power to remove the “chief executive officer of the police force by whatever title he may
be designated, of every city.” Thus, read together. Section 33(2) and Charter Article 26
give the Governor the power to remove the Mount Vernon Comptroller.
13. Charter Article 26 gives the Governor the power to suspend the Comptroller
14. Under Section 33(2), the Governor must provide “such officer a copy of the
charges against him and an opportunity to be heard in his defense.” Petitioner has served
a copy of these charges on the Comptroller by e-mail, by registered mail, and is serving
her by hand.
15. Under Public Officers Law Section 34(1), the Governor has the power to
“conduct an investigation into the charges.” To do so, he “may take evidence as to the
truth of the charges at the hearing for such purpose,” “or . . . may direct that such
investigation or hearing, or both, ... be conducted by a justice of the supreme court of the
judicial district, or the county judge of the county, in which the officer proceeded against
shall reside.” Section 34(1) also empowers the Governor to appoint a “Commissioner” to
conduct any such investigation or hearing, and Public Officers Law Section 34(2)
empowers the Governor to “direct ... the District Attorney of the County in which the
officer proceeded against resides, to assist the Governor. . . in the conduct of the
investigation . . . and of the hearing into the truth of the charges.” Finally, Section 34(2)
and Charter Section 26 empower the Governor to direct the Attorney General to assist him
16. In short, the Public Officers Law and the Charter give the Governor broad
power to investigate these charges, to hold a hearing on these charges, and to take
17. Charter Section 90 provides in relevant part, that the Comptroller “shall
appoint, to hold office during his pleasure, except as otherwise provided by law, a First
Deputy Comptroller, who shall be an aecountant and shall have had at least three years’
experienee as a bookkeeper.”
19. Historically, the Mount Vernon First Deputy Comptroller possessing the
required accounting background had taken the day- to-day responsibility for paying City
20. Despite the fact that the Charter requires Comptroller Reynolds to appoint a
First Deputy Comptroller, she has failed to do so. While she has appointed a Second
Deputy Comptroller, that person is not an accountant. Thus, at this point, no one in the
21. Mount Vernon has many municipal vehicles - police cars, fire trucks,
garbage trucks, snow plow trucks, street sweepers, and cars used by municipal employees
22. Mount Vernon has two fuel vendors: Sprague Fuel Energy supplies it with
diesel fuel, and Global Montello Group Corp. supplies it with gasoline.
23. As of October 12, 2018, Global Montello was owed approximately $86,700
for fuel delivered to Mount Vernon. In an e-mail dated October 11, 2018, Global Montello
advised the City of Mount Vernon that, pursuant to its contract with the City of Mount
Vernon, it had the option of not supplying the City with fuel, noting that “this location is
dollars for diesel fuel aetually delivered to the City. These unpaid charges date back to
25. If either fuel vendor cuts off Mount Vernon, its ability to provide basic
services to the citizens of Mount Vernon will grind to a halt: police cars, fire trucks,
sanitation trucks, and other municipal vehicles will sit idle, their fuel tanks dry.
26. In each instance, the past due fuel vendor invoices have been approved by
the relevant department head and delivered to the Comptroller’s office. In each instance,
there was money in the appropriate budget line to pay the past due fuel vendor invoices.
In each instance, for no apparent reason, the Comptroller has failed and refused to pay these
bills.
27. Mount Vernon has traffic lights and street lights. Maintaining these lights is
critical to insuring the safety of City residents and those who travel on City streets.
28. Until recently. Mount Vernon had three vehicles which it used to repair and
maintain its street lights and traffic lights. Two of the vehieles were assigned to the
Department of Publie Works (“DPW”): they were used to maintain and repair street lights.
One vehiele was assigned to the Traffie Department. It was used to repair and maintain
traffic lights.
29. One of the two DPW assigned vehicles was leased. The Comptroller failed
and refused to make the required monthly lease payments. For this reason, in or about the
summer of 2018, the leasing eompany terminated the lease and repossessed the vehiele. At
that point, Mount Vernon was left with only two vehieles to repair and maintain its street
30. Mount Vernon uses Altee Inc. (“Altec”) to repair these vehicles. During
early October, 2018, as both of the two remaining vehicles needed to be repaired, they were
brought to Altec. The staff at Altec advised Mount Vernon that it would not do the repair
work because Mount Vernon owed it money, and that Altec could not work on these
31. For several days during early October, after the first vehicle broke down but
before the second one did. Mount Vernon officials scrambled to continue to maintain and
repair City traffic lights and the street lights. They did so by using the single remaining
vehicle to fix traffic lights during the day, between 7:00 a.m. and 3:00 p.m., and to fix street
32. This was not usual. Normally, street lights and traffic lights are fixed and
maintained during the daylight hours. This is done for safety reasons - because traffic
often needs to be diverted when these repair trucks are making repairs, it is safer for drivers,
pedestrians, and those working to repair street lights and traffic lights if repair work is done
33. Repairing street lights between 3:00 p.m. and 11:00p p.m. also caused danger
to drivers and pedestrians because the repairs were done during peak rush hour.
34. Each of the past due lease payments had been approved by the relevant
department head and delivered to the Comptroller’s office. There was money in the
appropriate budget line to pay for each past due lease payment. In each instance, for no
apparent reason, the Comptroller has failed and refused to pay those bills.
35. In each instance, the past due Altec invoices had been approved by the
relevant department head and delivered to the Comptroller’s office. In each instance, there
was money in the appropriate budget line to pay the past due Altec invoices. In each
instance, for no apparent reason, the Comptroller has failed and refused to pay these bills.
include a City Hall, a police building, a courthouse, an armory, a DPW garage, and parking
structures.
37. The Mount Vernon DPW maintains those buildings. DPW employees do
maintenance and repairs on electrical systems, plumbing systems, and other building
systems.
38. To do maintenance and repairs, DPW employees often need to buy parts.
Historically, the DPW has relied on hardware stores and suppliers to provide it with those
parts.
39. Since taking office, the Comptroller has failed and refused to pay outstanding
(“Champion”). It supplies the City with electrical parts. Because the City has not paid its
outstanding bills. Champion has cut the City off, and will not supply it with any more parts.
For this reason, the City has no ability to make basic electrical repairs because it can’t buy
8
electric parts. It can’t buy electric parts solely because the Comptroller won’t pay
Champion what it is owed. In each instance, there is money in the budget to pay these
bills. In each instance, the relevant department approved of the bills and submitted them
to the Comptroller. And in each instance, for no apparent reason, the Comptroller has
41. The City of Mount Vernon relies on two hardware stores - Vernon Hardware
& Supply Co. and Gramatan Paint & Hardware Inc. -- to supply it with basic hardware such
as nuts, bolts, door knobs, and other simple hardware items. The City of Mount Vernon
uses these types of supplies to do all manner of repairs and maintenance on municipal
buildings.
42. Both of these vendors have cut the City of Mount Vernon off because Mount
Vernon has not paid their bills. In each instance, there is money in the proper budget line
to pay these bills. In each instance, the relevant department head has signed off on these
bills. In each instance, the bills have been submitted to the Comptroller who, for no
e. The Comptroller Won’t Pay The Company That Clears Blocked Sewer Lines
43. Mount Vernon has a sewer system. At times, sewer lines become blocked.
44. Mount Vernon contracts with National Water Main Cleaning Co. to clear
Water Main Cleaning now refuses to do business with Mount Vernon. As a result, if a
Mount Vernon sewer line becomes blocked, the City won’t be able to rely on National
46. The unpaid National Water Main Cleaning invoices were approved by the
relevant department head and delivered to the Comptroller. There is money in the proper
budget line to pay these bills. For no apparent reason, the Comptroller has failed, and
48. The Comptroller, without reason or justification, has failed and refused to
process and delayed the processing of Recreation Department bills and billing matters.
49. Asa result in the Comptroller’s delay in processing bills, the Commissioner
and Deputy Commissioner of the Recreation Department have been forced to use their
personal credit cards to make payments for Recreation Department activities such as
50. The Recreation Department operates two senior centers. Because the
Comptroller has not paid outstanding bills to vendors who supply products, including food
and toilet paper to the senior centers, a senior center was, as of October 17, 2018, out of
toilet papers, and, in or about the first week of October, 2018, a Deputy Commissioner was
forced to spend personal money to pay for lunches for seniors at the center. Again, in each
instance, there was money in the budget to pay these bills and they had been approved of
10
i The Westlaw Cutoff
51. The City of Mount Vernon has a Law Department. Lawyers in the Law
52. Like many other lawyers, those lawyers used Westlaw, a recognized standard
computerized research tool. Because the Comptroller failed to pay Westlaw bills due for
the period January 31, 2018 through October 1, 2018, on or about October 8, 2018,
Westlaw cut off service to the City of Mount Vernon Law Department. There was money
in the budget to pay those bills. The bills were approved of by the appropriate department
head, as per normal procedure. However, once submitted to the Comptroller, for no
53. The City of Mount Vernon does mailings. In order to do those mailings, it
needs paper to make photocopies. It has a mailroom which makes the necessary
photocopies.
54. On September 25, 2018, the municipal employee who runs the mailroom
submitted a request to the Comptroller to sign a purchase order in order to enable the
mailroom to purchase paper and other copying supplies. Since that time the Comptroller
has refused to sign the necessary paperwork, thus making it impossible for the mailroom
to obtain the necessary supplies. For this reason, as of October 18, the Mount Vernon
mailroom is out of paper and other supplies, and thus had no ability to make photocopies.
11
a. The Comptroller’s Failure To Make Required State Constitution Tax Limit Filings
55. Under Article VIII (10) of the New York State Constitution, Mount Vernon,
like other cities, has a maximum amount of real property tax that it may levy in a fiscal
year.
56. If Mount Vernon or any other municipality imposes property taxes that
exceed this limit, the State Comptroller must withhold certain assistance payments
otherwise due.
57. Like other cities, Mount Vernon must, annually file with the state
Comptroller a Constitutional Tax Limit form. This form advises the State Comptroller of
information necessary to verify compliance with the tax limit. It must be filed no later than
ten days before adoption of a final budget, and the municipality must file a copy of the
adopted budget within 30 days of its adoption. The Local Government and School
Limit compliance.
58. As the Chief Fiscal Officer of the City of Mount Vernon, it is the
Comptroller’s responsibility to properly file the Constitutional Tax Limit form and the
adopted budget.
59. Mount Vernon’s fiscal year runs from January 1 through December 31. It
60. In connection with the 2018 budget, the then incumbent Comptroller did not
file the required Constitutional Tax Limit form or the adopted budget.
12
61. Upon assuming office in January 2018, it became Comptroller Reynolds’
responsibility to file the Constitutional Tax Limit form and the 2018 budget.
62. Since assuming office, Comptroller Reynolds has failed and refused to file
the required Constitutional Tax Limit form or the adopted 2018 budget.
63. On October 12, 2018, the State Comptrollers’ LGSA office notified Mount
Vernon that it has not filed the 2018 budget Tax Limit Form or the 2018 budget. The City
64. In 2011, New York State enacted a statutory property tax cap. This stature
sets a limit of 2% on the annual growth of property taxes levied by local governments. It
is distinct from and in addition to the Constitutional Tax Limit. Each year, each local
government must submit to the State Comptroller a document certifying compliance with
the property tax cap and information regarding proposed and adopted budgets.
65. According to the LGSA office of the State Comptroller, Mount Vernon has
66. Comptroller Reynolds became responsible for filing the 2018 property tax
cap form once she took office in January 2018. Despite this, she has failed to do so, and
67. Mount Vernon has a municipal water system. It is operated by the Board of
Water Supply.
13
68. At a certain point, the City imposes liens on properties with unpaid water
69. By letter dated Oetober 12, 2018, Comptroller Reynolds rejeeted the request
of the Commissioner of the Board of Water Supply to attach liens to such properties. In
her Oetober 12, 2018 letter, Comptroller Reynolds states: “please be advised that the liens
that the Board of Water Supply has not supplied the City of Mount Vernon with the excess
profits for the years 2015, 2016, and 2017 which sum to approximately $3 million dollars.”
70. The Comptroller has no legal basis for refusing to attaeh liens to properties
with outstanding water bills. By refusing to do so, she prejudiees the ability of Mount
budgeted funds, the Comptroller has interfered with the City’s ability to funetion.
72. Mount Vernon has a Civil Serviee Commission, which administers Civil
Serviee tests, and proeesses hiring, promotion, and other employment related matters for
Mount Vernon employees. (We refer to the Civil Service Commission as the “Civil Service
offiee.”)
73. As part of the Mount Vernon budget, the City Council allocates funds to the
14
74. Despite this, the Comptroller refuses to transfer those allocated funds to the
Civil Service office. Here, we give examples of how this has paralyzed the Civil Service
office.
75. As of October 12, 2018, the Civil Service office has no funds in its account.
This is despite the fact that monies allocated to the Civil Service Department by the City
Council are available: unfortunately, the Comptroller will not release them to the Civil
Service Department.
contacted the Civil Service office and asked it to schedule appointments for medical and
psychological screening for police officer candidates who are to be hired for the next police
academy class. Because the Comptroller refuses to transfer funds allocated by the City
Council to the Civil Service office, the Civil Service office has no funds actually available,
Comptroller has thus made it impossible for Mount Vernon to hire new police officers.
The City’s inability to hire new public officers will have a profound impact on public
safety.
77. Historically, if an employee works overtime, and the head of that employee’s
department approves of that overtime, payroll sheets reflective of that approved overtime
are submitted to the Comptroller’s office for processing, and the employee who worked
15
the overtime is then paid for that overtime work. To date overtime pay requests have not
been paid.
79. The prior DPW Commissioner, Mr. Nigro, resigned from employment with
Mount Vernon in September 2018. He was replaeed at that time by Mr. Ederer.
80. The Comptroller initially refused to proeess the relevant forms in conneetion
with both Mr. Nigro’s termination and Mr. Ederer’s appointment as DPW Commissioner.
process payroll and overtime sheets bearing Mr. Ederer’s signature. As a result, it became
likely that payroll and overtime checks for DPW workers would be delayed.
82. If DPW employees were not paid their full wages due in a timely fashion, it
would have violated the Teamsters Union contract and also would have subjected the City
to civil liability for unpaid wages. It would also have jeopardized the ability of the City to
provide basic services to its residents, as employees who don’t receive their full paychecks
83. To avoid the above the City was forced to change the relevant forms for
incorrect this was the only way to induce her to process the personnel forms.
16
c. The Comptroller Fails to Pay Employees On Time
84. At times, the Comptroller’s office simply fails to pay employees in a timely
fashion. A recent example of this involved a City employee named Jennifer Mastrogiorgio.
85. Ms. Mastrogiorgio started working as a Senior Account Clerk in the DPW
on August 27, 2018. Up until that time, she had worked for the City of Mount Vernon as
86. On or about August 14, 2018, the City Council adopted an ordinance
allocating money to fund the Senior Account Clerk position into which Ms. Mastrogiorgio
was transferring.
87. The relevant Report of Personnel Change (“RPC”) form was signed by the
then DPW Commissioner and the Human Resources Department. By letter dated August
17, 2018, Ms. Mastrogiorgio advised the Comptroller of the fact that she would be
transferring to the positon of Senior Account Clerk in the DPW as of August 27, 2018.
88. Despite the fact that the City Council passed an ordinance funding the Senior
Account Clerk position, despite the fact that the RPC for that positon was properly signed,
and despite the fact that Ms. Mastrogiorgio worked in the Senior Account Clerk position
for the week of August 27 through August 31, 2018, Ms. Mastrogiorgio did not receive a
paycheck for the week of August 31, 2018 in a timely fashion, and was not paid for her
89. It was not until September 20, 2018 that Ms. Mastrogiorgio received her pay
for these two weeks. Thus, she was paid nearly three weeks late. This is entirely due to
17
d. The Comptroller’s Refusal To Process RPC Forms
90. On a broader basis, the Comptroller refuses to process RPC forms. RPC
forms are fdled out whenever there is a change in an employee’s status - for instance, an
91. Historically, RPC forms are submitted to the Comptroller’s office for
processing after they have been approved of by the relevant department head and human
processed the RPC form. If the form was for a promotion, the Comptroller’s office would
implement the pay raise associated with the promotion. If the form was for a resignation,
the Comptroller’s office would end further pay to the resigning employee. The
Comptroller’s office simply processes personnel decisions which others lawfully had
made. It has no human resources function under the Charter and has never exercised any
92. Since assuming office, the Comptroller has increasingly refused to process
RPC forms. For instance, in the case of an employee out on leave authorized by the
applicable supervisory authority, the Comptroller has refused to process the RPC form
unless provided with information as to why the individual is out. The Comptroller refuses
to process authorized salary increases. The Comptroller does so despite the fact that these
RPC forms have been approved by the relevant department head, and despite the fact that
93. For example, during the first week of October, the Comptroller’s office
refused to process approximately 25 RPC forms, improperly demanding to meet with the
18
relevant Commissioner before aeeepting any of those forms. This was inconsistent with
past practice, and delayed the ability of the City to implement personnel changes. In
addition, the Comptroller has no duties in connection with personnel, so her demands to
receive explanation for the RPC form changes is not within the scope of her duties.
94. On or about September 15, 2018, the Comptroller advised the Mount Vernon
Civil Service Commission that she would not allow the Civil Service Commission to
deliver RPC forms to the Payroll Department. Instead, the Comptroller directed that all
such forms be provided directly to her. This requirement adds to the delay in processing
of personnel changes. Indeed, the Comptroller will not allow anyone to accept RPC forms
other than herself At times, when Civil Service Commission employees have delivered
RPC forms to others in the Comptroller’s office, they have been rejected.
95. At times during the past months, the Comptroller has refused to process RPC
instances, the RPC form was properly filled out by the necessary employee, and the
employee has resigned. Notwithstanding this, the Comptroller has failed to process the
RPC forms, thus maintaining on payroll people who have resigned from their City of
96. The Comptroller takes it upon herself to assign employees to titles and
provided them with salary increases without complying with the relevant Civil Service
Laws. For instance, on or about September 14, 2018, the Comptroller, without complying
with the Civil Service Law, assigned an employee to the title of Chief Accountant and gave
19
that employee an illegal salary increase. By assigning that employee to that position and
increasing that employee’s salary, the Comptroller acted in violation of the Civil Service
Law.
97. Mount Vernon has a Veterans Service Agency (“VSA”). The VSA provides
98. The Comptroller’s refusal to process requests for payment in the ordinary
course, and her penchant for bizarre behavior when asked to perform her job is perhaps
best illustrated by her interactions with the Director of the Mount Vernon Veterans Service
Agency.
99. This agency has a budget allocated to it by the City Council. It has a Director.
100. The Comptroller’s tactics vis-a-vis the VSA exemplify her interference in
101. The Comptroller’s office refuses to supply the VSA with basic accounting
information. It refuses to provide the VSA with information regarding the status of checks
and account balances. This negatively affected the VSA’s ability to make plans and
allocate funds. It has had a negative effect on the relationship between the VSA and the
New York State Office of General Services, which is the originating source of much of the
VSA’s funding.
20
102. Like other City departments, the VSA has experienced delays in the
processing of check and payment to vendors. These delays negatively affect VSA’s
103. In the past, before the current Comptroller assumed office, the Director of
this agency would e-mail or hand deliver various documents to the Comptroller’s office
for processing. These documents would need to be processed so that payment of various
104. Before the current Comptroller assumed office, this process was simple: the
agency director would either hand deliver or e-mail the relevant documents to the
Comptroller’s office, the Comptroller’s office would process the documents, and payments
would be made.
105. At some point after she assumed office, the current Comptroller changed the
process. When the VSA Director hand delivered documents to staff at the Comptroller’s
office, she was told by the staff members that they could not accept those documents and
provide her with time-stamped copies because “the Comptroller reads it first before it can
be time-stamped.”
106. The Comptroller will not allow the VSA to send vouchers through interoffice
mail.
instance in September 2018 when the VSA Director approached the Customer Service
window of the Comptroller’s office and the staff refused to acknowledge or serve her.
21
108. The Comptroller’s refusal to perform her job again is illustrated by her
refusal to provide the VSA Director with the balance of VSA accounts.
109. The Comptroller’s refusal to do her Job yet again is illustrated by the fact that
she has literally refused to allow the VSA Director into the payroll office.
110. Mount Vernon seeks this extraordinary remedy because there is no other
proceedings to compel the Comptroller to pay bills. Indeed, it has done so in a proceeding
now pending in Supreme Court, Westchester County, entitled Richard Thomas, as the
Mayor of the City of Mount Vernon v. Deborah Reynolds, as the Comptroller of the City
112. However, an Article 78 proceeding can take many months until its
completion. During this time, there is a substantial risk that vendors with unpaid bills will
simply stop supplying the City with goods and services. And, if the City does not have a
reliable supply of goods and services, its ability to provide basic services to its citizens will
be jeopardized.
113. Put another way, if the City can’t fill the gas tanks of its police cars, the
pendency of an Article 78 proceeding to compel the Comptroller to pay the bill to the
22
CONCLUSION
114. For Mount Vernon to function, the Comptroller has to pay the City’s proper
bills, make required filings, and process RPC forms. Her office has to interact with others
115. Mount Vernon’s Comptroller has failed at these basic functions. She didn’t
pay the vendors who leased and repaired the City’s street light maintenance vehicles, so
one vehicle was repossessed and for several days the City had no vehicles with which to
repair and maintain traffic lights and street lights. She didn’t pay the hardware stores who
provide the City with electrical supplies, so the City can no longer buy parts necessary to
perform basic maintenance on City buildings. She doesn’t process RPC forms, so new
employees can’t be hired and existing employees are not timely paid. She doesn’t make
the required state constitutional and statutory tax limit filings, thus placing Mount Vernon
116. A functioning municipal government is needed to assure the basic safety and
security of its citizens. If the City can’t put gas in its police cars, if it can’t fix its traffic
lights, if it can’t buy fuses to fix its electrical problems, if it doesn’t have paper to make
photocopies, it puts the lives, safety, and property of its citizens in jeopardy.
government. Because she has failed to perform her basic duties, the Comptroller has put
Mount Vernon in a positon where it cannot provide its citizens with a functioning
municipal government.
23
118. Both the Mount Vernon Charter and the New York State Public Officers Law
give the Governor power to remove the Comptroller. While we recognize that this is an
extraordinary remedy, the situation which Mount Vernon faces is equally extraordinary.
119. Only the Governor has the power to remedy this. On behalf of the City of
Mount Vernon and all of its citizens, we respectfully request that the Governor forthwith
temporarily suspend the Comptroller pending an investigation of these charges, remove the
Comptroller from office upon conclusion of that investigation, and take all other
appropriate steps to ensure that the City and citizens of Mount Vernon are provided with a
functioning Comptroller.
from office the incumbent City of Mount Vernon Comptroller, Deborah Reynolds; and
6. That the Governor provide the City of Mount Vernon with such other relief
24
Dated: October 22, 2018
Mount Vernon, New York
By:
(3 ^
6
CITY OF MOUNT-VERNON''------- --
")
By; X
Lawrence A. Porcari
Corporation Counsel
City of Mount Vernon
One Roosevelt Square
Mount Vernon, New York 10550
lporcari@cmvny. com
Telephone: 914-665-2366
25
I, Lawrence A. Porcari, an attorney admitted to practice in the courts of this state,
being Corporation Counsel of Charging Party City of Mount Vernon, and one of the
attorneys of record for the City of Mount Vernon, affirm pursuant to CPLR §3020(d)(2)
that I am acquainted with the facts of this claim and that I have read the foregoing charges
and know their contents. The maters therein are stated upon information and belief, and I
..
Lawrence A. Porcari
4164571 V.2
Attachment 6 – Mayor Richard Thomas
Request for Legal Opinion from CMVNY
Law Department
Attachment 7 – CMVNY Law Dept. Legal
Opinion In Response to Mayor Richard
Thomas Request for Legal Opinion
MEMORANDUM
Hon. Sir:
This department has reviewed your request regarding the retention of outside counsel. Please
note that pursuant to the City Charter at Section 148, Powers and Duties, (below), the
Corporation Counsel “shall be and act as the legal advisor of the City Council, of the Mayor, and
of the several officers, boards and departments of the City.” Also, the Corporation Counsel
“shall not employ other Counsel, except as otherwise expressly provided in this chapter.”
Further, pursuant to the City Charter at Section 153, Employment of Special Counsel, (below),
the Corporation Counsel, “with the written consent of the Mayor, may employ counsel and
experts at such compensation as may be agreed upon by the Board of Estimate and Contract…”
After evaluating your question, this office has determined that the retention of outside counsel is
necessary.
Respectfully, the plain reading of the City Charter indicates that this office retains Special
Counsel with the written permission of the Mayor; no other official or body is involved. Upon
doing so, however, the rate of payment for that Special Counsel must be agreed to by the Board
of Estimate and Contract. That said, please also note that this office makes every effort to
convince our Special Counsel to agree to what I would characterize as a municipal rate;
therefore, what we presently pay out to our Special Counsel on an hourly basis is comparatively
low.
Note that a local law may provide for the defense of an official regarding actions that fall within
the scope of that municipal officers employment. This affirms the legality of our Charter
provisions, which are discussed below. Corning v. Village of Laurel Hollow, 408 NYS 2d 131.
Legal defense costs in criminal actions may be reimbursed by the State government if the State
(or otherwise listed) officer is acquitted or the case is dismissed; NY Pub. Off. Law Sec 19. This
provision would not apply to the COMV as the elected officials here are not incorporated as
State officials under the statute. While NY Pub. Off. Law Sec 18 sub. 2 would confer such a
benefit to a COMV elected official if adopted, a review of the COMV Charter and Code does not
show a law or ordinance adopting the terms of the statute as would be required.
Campaign contributions may be used to defray legal costs without prejudicing contribution
limits; NYSEL Section 14-130. This means an LDF can be established and the proceeds used
without regard to the contribution limitations that would ordinarily apply. No jurisdiction sets
expenditure limits on LDF’s, and an expenditure from a LDF is not subject to the provisions of
campaign expenditure limits. 2 CCR Section 18530 4(e).
By Charter at Section 148, the Law Department (LD) is charged with appearing on behalf of the
Mayor in “all actions, suits and proceedings.” There is no specification as to the type of action
or proceeding; civil or criminal, and there is no time limitation expressed in the Charter
provision:
When the above is read in conjunction with Charter Section 153, the only conclusion is that the
LD can appear on behalf of the Mayor, regardless of the type of proceeding, and that the LD can,
with the permission of the Mayor, retain outside counsel to do so. Note that the standard, the
interest of the City, is a low bar. The City would almost always have an interest of some kind in
any type of proceeding brought against one of its elected officials, especially the Mayor:
In conclusion, the LD, upon the receipt of a written instruction from your office, would retain the
firm of your choice pursuant to Charter. While the BOE&C would have to vote on the amount
to be paid, the retainer would go into effect immediately. This office considers your letter of
March 20th, 2018, to be a directive and will retain outside counsel accordingly.
Thank you.
cc: Mayor
Attachment 8 – Mount Vernon City
Charter Section 153
2/7/22, 2:59 PM City of Mount Vernon, NY Department of Law
§ 149 Costs.
Neither the Corporation Counsel, his Assistant nor any of his
subordinates shall receive any fee or compensation of any kind for
services rendered in an official capacity, other than the salary fixed
by law or by the Board of Estimate and Contract.
https://ecode360.com/26811443?highlight=&searchId=4321693753637699#26811443 1/3
2/7/22, 2:59 PM City of Mount Vernon, NY Department of Law
https://ecode360.com/26811443?highlight=&searchId=4321693753637699#26811443 2/3
2/7/22, 2:59 PM City of Mount Vernon, NY Department of Law
and sale, except that the interest and costs shall, in such event,
be computed only to the date of the making of the order of
discontinuance.
The Corporation Counsel may bid for and purchase in the name of the
City any lands sold upon sales under
judgments in actions to foreclose
tax or assessment liens.
§ 158 Limitations.
In any action or proceeding to which the City of Mount Vernon,
or any of its officers, is a party, and in which it is claimed that
any tax or assessment is due and owing to the City, or in which it
is sought to collect the same, the statute of limitations shall
not
be a bar or defense. No action shall be maintained to recover real
estate sold under a judgment in an action brought by the
City of Mount
Vernon to foreclose the lien of a tax or assessment, nor to recover
any right, title, interest or equity of
redemption in or to real estate
so sold, unless the action therefor is commenced within one year after
the entry of judgment of
foreclosure and sale. The limitation herein
provided applies to and bars nonresident persons temporarily absent
from the state,
minors, insane persons, persons in prison, and all
other persons and corporations whether under disability or not.
The amount of any judgment recovered against the City and payable
by it, remaining unpaid, with the interest due thereon, in
case the
time to appeal therefrom has expired and no appeal has been taken,
or a certificate of no appeal therefrom has been
given by the Corporation
Counsel, or in case such judgment is finally affirmed, or an appeal
taken and the execution thereon
shall not be stayed, shall be reported
to the City Council immediately after the same shall have become payable,
as aforesaid;
and the amount thereof shall be included in the next
tax budget. Such judgments shall be paid in the order of their recovery
out
of the moneys first paid into the City treasury on account of
the annual taxes, or prior thereto, out of the proceeds of tax
anticipation
notes issued in anticipation of the collection of such taxes or out
of the proceeds of budget notes. If, however,
there be any moneys
in the treasury to the credit of any fund derived from City revenues,
other than taxation, in excess of the
estimated revenues from such
source, and not otherwise appropriated, sufficient to satisfy judgments
against the City, the
Comptroller shall issue warrants for the payment
of such judgment out of said funds in the order of their recovery.
Until the
moneys applicable to the payment of a judgment have been
raised and paid into the City treasury and payment of the judgment
has been refused, no execution shall issue against the City unless
the amount of such judgment shall not have been included in
the tax
budget.
https://ecode360.com/26811443?highlight=&searchId=4321693753637699#26811443 3/3
Attachment 9 – Mount Vernon Local
Law 17
Attachment 10 – Mount Vernon
Procurement Policy
Attachment 11 – Inspector General
Report on the Mount Vernon Urban
Renewal Agency
Attachment 12 – Inspector General
Report on Mount Vernon Comptroller
Deborah Reynolds Detailing her Efforts
on Breaking Systems and Defying
Charter Established Procedures
Attachment 13 – Inspector General
Report on Mount Vernon Comptroller
Deborah Reynolds Non-Payment of Bills
Except Hers
Attachment 14 – NYS Open Book PDF’s
of Mount Vernon’s Finances between
2016 and 2020
Open Book New York
Office of the State Comptroller
Thomas P. DiNapoli, State Comptroller
Comparison Report for City of Mount Vernon, City of New Rochelle, City of White Plains, and City of
Yonkers for 2016
Revenues and Proceeds of Debt City of Mount Vernon City of New Rochelle City of White Plains City of Yonkers
Total No Data 157,657,618 212,938,585 661,243,657
CHARGES TO OTHER
- 1,954,061 130,615 648,852
GOVERNMENTS
Community Services Charges - - - -
Culture And Recreation Charges - 10,530 26,005 -
L2360 Library Services, Other Govts - - 26,005 -
A2351 Programs For Aging, Other
Govts - 10,530 - -
Debt Service Charges - - - -
Education Charges - - - -
General Government Charges - 1,287,863 - 170,514
A2220 Civil Service Charges - - - 170,514
A2210 General Services, Inter
Government - 1,287,863 - -
Health Charges - - - -
Miscellaneous Intergovernmental
- 408,173 63,362 -
Charges
A2389 Misc Revenue, Other Govts - 357,581 63,362 -
M2389 Misc Revenue, Other Govts - 50,592 - -
Public Safety Charges - - 41,248 -
A2260 Public Safety Services For Other
Govts - - 41,248 -
Sanitation Charges - - - -
Social Services Charges - - - -
Transportation Charges - 247,495 - 478,338
A2300 Transportation Services, Other
Govts - 247,495 - 478,338
Utility Charges - - - -
EDUCATION - - - -
Community College - - - -
Education - Transportation - - - -
Instruction - - - -
Instructional Support - - - -
Miscellaneous Education - - - -
Pupil Services - - - -
Student Activities - - - -
HEALTH - 173,060 - -
Environmental Services - - - -
Mental Health Services - 173,060 - -
A43204 Mental Health Prog,contr
Expend - 44,882 - -
A43201 Mental Health Prog,pers Serv - 128,178 - -
Miscellaneous Public Health - - - -
Public Health Administration - - - -
Public Health Facilities - - - -
Public Health Services - - - -
Comparison Report for City of Mount Vernon, City of New Rochelle, City of White Plains, and City of
Yonkers for 2017
Revenues and Proceeds of Debt City of Mount Vernon City of New Rochelle City of White Plains City of Yonkers
Total No Data 170,989,636 234,634,759 593,338,824
CHARGES TO OTHER
- 2,316,172 136,594 522,582
GOVERNMENTS
Community Services Charges - - - -
Culture And Recreation Charges - - 26,765 -
L2360 Library Services, Other Govts - - 26,765 -
Debt Service Charges - - - -
Education Charges - - - -
General Government Charges - 2,265,659 - 41,677
A2220 Civil Service Charges - 13,460 - 41,677
A2210 General Services, Inter
Government - 2,252,199 - -
Health Charges - - - -
Miscellaneous Intergovernmental
- 50,513 92,330 -
Charges
A2389 Misc Revenue, Other Govts - - 92,330 -
M2389 Misc Revenue, Other Govts - 50,513 - -
Public Safety Charges - - 17,499 -
A2260 Public Safety Services For Other
Govts - - 17,499 -
Sanitation Charges - - - -
Social Services Charges - - - -
Transportation Charges - - - 480,905
A2300 Transportation Services, Other
Govts - - - 480,905
Utility Charges - - - -
EDUCATION - - - -
Community College - - - -
Education - Transportation - - - -
Instruction - - - -
Instructional Support - - - -
Miscellaneous Education - - - -
Pupil Services - - - -
Student Activities - - - -
EMPLOYEE BENEFITS - 38,503,136 51,054,622 147,989,859
Disability Insurance - - - -
Life Insurance - - - 50,025
A90458 Life Insurance, Empl Bnfts - - - 50,025
Losap/Miscellaneous - - - -
Medical Insurance - 7,452,780 - 58,113,528
A90608 Hospital & Medical (dental)
Ins, Empl Bnft - 7,452,780 - 58,113,528
Retirement - Police & Fire - - - 38,328,042
A90158 Police & Firemen Retirement,
Empl Bnfts - - - 38,328,042
Retirement - State/Local - - - 13,589,684
A90108 State Retirement System - - - 13,589,684
Retirement - Teacher - - - -
Social Security - - - 16,730,093
A90308 Social Security, Employer Cont - - - 16,730,093
Unclassified Employee Benefits - 30,211,473 48,468,816 892,301
CD86868 Administration, Empl Bnfts - 60,870 - -
CU17108 Administration-Empl Ben - - 99,286 -
ER17108 Administration-Empl Ben - - - -
MS17108 Administration-Employee
Benefits - - 79,824 -
A76208 Adult Recreation, Empl Bnfts - 57,546 - -
A13558 Assessment, Empl Bnfts - 155,898 175,410 -
A51408 Brush & Weeds, Employee
Benefits - 23,019 - -
A13408 Budget, Empl Bnfts - - 63,136 -
A16808 Central Data Process, Empl
Bnfts - 223,441 - -
A16408 Central Garage Empl Bnfts - 414,746 692,470 -
A16108 Central Services Admin,empl
Bnfts - 1,414 - -
A14108 Clerk,empl Bnfts - 134,191 205,838 -
A13108 Dir Of Finance, Empl Bnfts - 441,810 10,039,122 -
A14508 Elections, Empl Bnfts - 590 - -
A14408 Engineer, Empl Bnfts - 342,714 805,593 -
A34108 Fire, Empl Bnfts - 10,573,703 8,545,079 -
A87308 Forestry, Empl Bnfts - 39,234 - -
A51328 Garage, Empl Bnfts - - 510,840 -
A14208 Law, Empl Bnfts - 149,467 394,835 -
A10108 Legislative Board, Empl Bnfts - 167,037 121,885 -
L74108 Library, Empl Bnfts - - 1,447,326 -
A51108 Maint Of Streets, Empl Bnfts - 863,304 1,915,933 -
A12108 Mayor, Empl Bnfts - 103,570 237,304 -
A43208 Mental Health Prog, Empl
Bnfts - 51,252 - -
PN39898 Misc Public Safety, Empl
Bnfts - - 21,533 -
A11108 Municipal Court, Empl Bnfts - - 1,675 -
A12308 Municipal Exec, Empl Bnfts - 195,672 - -
A56508 Off-Street Parking, Empl Bnfts - 74,777 - -
A16208 Operation Of Plant, Empl Bnfts - 504,622 576,485 -
A79898 Other Culture And Rec, Empl
Bnfts - 176,236 - -
A69898 Other Econ & Dev, Empl Bnfts - 326,959 - -
A90898 Other Employee Benefits (spec) - 224,451 - -
A19898 Other General Govt Support,
Employee Bens - 401,823 245,555 -
G19898 Other General Govt Support,
Employee Bens - - - 892,301
A89898 Other Home & Community
Services, Emp Bnfts - - 962 -
A56808 Other Transportation, Empl
Bnfts - - 1,099,669 -
A71108 Parks, Empl Bnfts - 25,154 449,143 -
A14308 Personnel, Empl Bnfts - 194,501 213,977 -
CD86848 Plan & Manage Devel, Empl
Bnfts - 62,275 - -
A80208 Planning, Empl Bnfts - - 241,281 -
A31208 Police, Empl Bnfts - 10,352,909 11,437,716 -
A67728 Programs For Aging, Empl
Bnfts - 222,338 - -
CD86768 Provisions For Public
Services, Emp Bnfts - 13,632 - -
A14808 Public Inform & Services,empl
Bnfts - 80,710 - -
A30108 Public Safety Admin, Empl
Bnfts - - 236,646 -
A30208 Public Safety Comm Sys, Empl
Bnfts - - - -
A14908 Public Works Admin, Empl
Bnfts - 176,413 385,771 -
A13458 Purchasing, Empl Bnfts - - 173,784 -
A70208 Recreation Admini, Empl Bnfts - 146,290 567,227 -
A81608 Refuse & Garbage, Empl Bnfts - 1,505,865 2,128,283 -
CD86108 Rent Subsidy, Empl Bnfts - 257,115 - -
A56408 Rr Station Maint, Empl Bnfts - 52,128 - -
A36208 Safety Inspection, Empl Bnfts - - 844,552 -
A81208 Sanitary Sewers, Empl Bnfts - - 42,458 -
ES81208 Sanitary Sewers, Empl Bnfts - - 475,600 -
A81108 Sewer Administration, Empl
Bnfts - 316,658 - -
A51428 Snow Removal, Empl Bnfts - 77,574 90,476 -
EW83208 Source Supply Pwr & Pump
Empl Bnfts - - 240,581 -
A71808 Special Recreation Facilities,
Empl Bnfts - 389,375 - -
A13308 Tax Collection,empl Bnfts - 77,643 - -
A33108 Traffic Control, Empl Bnfts - 273,224 333,536 -
A11308 Traffic Viol Bureau, Empl
Bnfts - 93,908 1,079,336 -
EW83408 Transportation And
Distribution-Empl Bnfts - - 557,447 -
EW83108 Water Administration-Empl
Bnfts - - 1,020,744 -
A73108 Youth Prog, Empl Bnfts - 185,415 628,981 -
A80108 Zoning, Empl Bnfts - - 41,517 -
Unemployment Insurance - 85,266 - 147,147
A90508 Unemployment Insurance,
A90508 Unemployment Insurance,
Empl Bnfts - 85,266 - 147,147
Union Benefits Program - - - 7,227,845
A90708 Union Welfare Benefits - - - 7,227,845
Worker's Compensation - 753,617 2,585,806 12,911,194
A90408 Worker's Compensation, Empl
Bnfts - - - 12,911,194
MS90408 Worker's Compensation,
Empl Bnfts - 753,617 2,585,806 -
HEALTH - 192,282 - -
Environmental Services - - - -
Mental Health Services - 192,282 - -
A43204 Mental Health Prog,contr
Expend - 52,997 - -
A43201 Mental Health Prog,pers Serv - 139,285 - -
Miscellaneous Public Health - - - -
Public Health Administration - - - -
Public Health Facilities - - - -
Public Health Services - - - -
Comparison Report for City of Mount Vernon, City of New Rochelle, City of White Plains, and City of
Yonkers for 2018
Revenues and Proceeds of Debt City of Mount Vernon City of New Rochelle City of White Plains City of Yonkers
Total No Data 178,165,474 206,067,378 660,921,927
CHARGES TO OTHER
- 2,071,010 112,326 1,027,570
GOVERNMENTS
Community Services Charges - - - -
Culture And Recreation Charges - - 17,738 -
L2360 Library Services, Other Govts - - 17,738 -
Debt Service Charges - - - -
Education Charges - - - -
General Government Charges - 2,006,417 - 543,544
A2220 Civil Service Charges - 3,056 - 543,544
A2210 General Services, Inter
Government - 2,003,361 - -
Health Charges - - - -
Miscellaneous Intergovernmental
- 64,593 90,988 -
Charges
A2389 Misc Revenue, Other Govts - - 90,988 -
M2389 Misc Revenue, Other Govts - 64,593 - -
Public Safety Charges - - 3,600 -
A2260 Public Safety Services For Other
Govts - - 3,600 -
Sanitation Charges - - - -
Social Services Charges - - - -
Transportation Charges - - - 484,026
A2300 Transportation Services, Other
Govts - - - 484,026
Utility Charges - - - -
EDUCATION - - - -
Community College - - - -
Education - Transportation - - - -
Instruction - - - -
Instructional Support - - - -
Miscellaneous Education - - - -
Pupil Services - - - -
Student Activities - - - -
HEALTH - 205,601 - -
Environmental Services - - - -
Mental Health Services - 205,601 - -
A43204 Mental Health Prog,contr
Expend - 55,270 - -
A43201 Mental Health Prog,pers Serv - 150,331 - -
Miscellaneous Public Health - - - -
Public Health Administration - - - -
Public Health Facilities - - - -
Public Health Services - - - -
Comparison Report for City of Mount Vernon, City of New Rochelle, City of White Plains, and City of
Yonkers for 2019
Revenues and Proceeds of Debt City of Mount Vernon City of New Rochelle City of White Plains City of Yonkers
Total No Data 187,525,524 225,915,314 626,423,795
CHARGES TO OTHER
- 2,152,101 165,665 542,139
GOVERNMENTS
Community Services Charges - - - -
Culture And Recreation Charges - - 17,913 -
L2360 Library Services, Other Govts - - 17,913 -
Debt Service Charges - - - -
Education Charges - - - -
General Government Charges - 2,096,212 - 53,440
A2220 Civil Service Charges - - - 53,440
A2210 General Services, Inter
Government - 2,096,212 - -
Health Charges - - - -
Miscellaneous Intergovernmental
- 55,889 137,033 -
Charges
A2389 Misc Revenue, Other Govts - - 137,033 -
M2389 Misc Revenue, Other Govts - 55,889 - -
Public Safety Charges - - 10,719 -
A2260 Public Safety Services For Other
Govts - - 10,719 -
Sanitation Charges - - - -
Social Services Charges - - - -
Transportation Charges - - - 488,699
A2300 Transportation Services, Other
Govts - - - 488,699
Utility Charges - - - -
EDUCATION - - - -
Community College - - - -
Education - Transportation - - - -
Instruction - - - -
Instructional Support - - - -
Miscellaneous Education - - - -
Pupil Services - - - -
Student Activities - - - -
HEALTH - 218,191 - -
Environmental Services - - - -
Mental Health Services - 218,191 - -
A43204 Mental Health Prog,contr
Expend - 60,492 - -
A43201 Mental Health Prog,pers Serv - 157,699 - -
Miscellaneous Public Health - - - -
Public Health Administration - - - -
Public Health Facilities - - - -
Public Health Services - - - -
Comparison Report for City of Mount Vernon, City of New Rochelle, City of White Plains, and City of
Yonkers for 2020
Revenues and Proceeds of Debt City of Mount Vernon City of New Rochelle City of White Plains City of Yonkers
Total No Data 468,542,815 220,985,332 644,716,937
CHARGES TO OTHER
- 3,599,352 109,344 535,406
GOVERNMENTS
Community Services Charges - - - -
Culture And Recreation Charges - - 19,922 -
L2360 Library Services, Other Govts - - 19,922 -
Debt Service Charges - - - -
Education Charges - - - -
General Government Charges - 3,591,727 - 41,777
A2220 Civil Service Charges - - - 41,777
A2210 General Services, Inter
Government - 3,591,727 - -
Health Charges - - - -
Miscellaneous Intergovernmental
- 7,625 85,500 -
Charges
A2389 Misc Revenue, Other Govts - - 85,500 -
M2389 Misc Revenue, Other Govts - 7,625 - -
Public Safety Charges - - 3,922 -
A2260 Public Safety Services For Other
Govts - - 3,922 -
Sanitation Charges - - - -
Social Services Charges - - - -
Transportation Charges - - - 493,629
A2300 Transportation Services, Other
Govts - - - 493,629
Utility Charges - - - -
EDUCATION - - - -
Community College - - - -
Education - Transportation - - - -
Instruction - - - -
Instructional Support - - - -
Miscellaneous Education - - - -
Pupil Services - - - -
Student Activities - - - -
HEALTH - 124,665 - -
Environmental Services - - - -
Mental Health Services - 124,665 - -
A43204 Mental Health Prog,contr
Expend - 19,966 - -
A43201 Mental Health Prog,pers Serv - 104,699 - -
Miscellaneous Public Health - - - -
Public Health Administration - - - -
Public Health Facilities - - - -
Public Health Services - - - -
TRANSCRIPTION BY OTTER
And that I believe was communicated back to so on that that was done, then my understanding is the
other request you have is to be included on all of the wires that are transmitted by the city. On the, from
the accounts of JP Morgan?
Well, yeah, it's more than just wires, it's so we can isolate that for a second and say, you know, as per
our charter, I cosign every payment. And in a wire transfer is a payment. And, and I'm being made aware
of that wire transfers are being made without my knowledge or sign off. So that's why, yes, that needs
to be corrected.
Okay. So the way the way the way the wires are transmitted, sir, is they're transmitted electronically
over an online banking platform called JP Morgan access. Okay, yep. Looks I'm sorry, go ahead.
No, but I mean, so if the, my only the only here I'm solution and outcome oriented, I can, I can imagine
that you guys have some kind of, you know, nice dashboard. But the there's, there's going to have to be
a profile created for the mayor. And that profile is going to have to basically say, if there's a wire
transfer, there's a secondary, you know, person who has to approve it. So I don't know how you guys
gonna figure that out. Until then, I think we need to, you know, put a note on the account that it can't
happen unless, you know, there, it takes two.
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
Okay, so that's just bear with me one sec, because that's, I was getting to that. But so so there's the
wires are transmitted via JP Morgan access, and all funds transfers, all monetary transfers, even file
transfers that are done on access, we require as institution dual control. So two people have to touch
the transaction. So if the outside disparity, one more announcement, two more sentences, if the if the
city requires the signers to be the individuals who transmit those wires, then to your point, a full file has
to be created for yourself on JP Morgan access. And the wire can be created in the controller's office
and released in your office. Correct. So we can we do? Well, the security administrator on the system
creates the profile, so we could work with the administrator to do that, that would accomplish that. So I
can certainly pick up the phone, call the comptroller's office and say, Look, you need to create the
profile, you can't do any wires until that second approver. The mayor is set up and has the appropriate
entitlements to be able to do so.
Excellent. So that's not a problem. Excellent that that's going to be very helpful, because, you know, I
don't even know who the people that are signing off on it. Is it her? Is it her secretary is it? You know,
because at the end of the day, you know, she could be sending money off to the Cayman Islands. And
nobody knows, except for you guys.
Okay, well, I can, I can tell you that as an institution, any of our municipal clients if they attempt to send
money overseas or outside of the United States, that sets off red flags all over the place, and the entire
banking team is notified.
So except for the mayor, except for the mayor. The banking team is notified. I know I'm just giving you
grief.
got caught in the middle of something that you never expected. That's why.
Page 2 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
And to be honest, I I am interested in helping out any of our municipal clients do things better anyway, I
possibly can. That's my job. Yeah. That's, that's really all I care about. Because if it can be done better for
the constituents and the residents of the city of Mount Vernon, I'll do whatever we need to do.
Excellent.
So I don't get to your point. I don't like getting stuck in the middle of these things. And I've been doing
this too long. I do get stuck in the middle occasionally. But I will will do whatever meets the
requirements that you have for the city charter. Okay. So,
and say that we were advised that for the city charter, the two signers have to release all payments.
That includes the wires will file has to be established to the mayor so that the dual control consists of
the comptroller's office and the mayor.
I'm gonna I'm gonna say one thing, though, if I make and I'm not trying to They'll myself out of this.
Yeah, but I can say that if they don't comply by that I might I, you know, there's not much I can do.
Page 3 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
And then I mean, that's, that's, that's the step because the the approach that I'm taking is very simple.
You know, there's a, the decisions have been made to, to wire money, no matter how you how you want
to slice it. And, and we were made aware of it after the fact that it's a possibility. We're sitting here and
expecting signing checks. And, and it's kind of like, you know, so we're trying to make sure, from a
quality control standpoint, we're taking all the steps for quality control purposes. But second to that is, if
I'm the signature on the check that cosings if if my name is on that bottom right corner, and our charter
says that I am, quote, unquote, the executive of the city, and I'm supposed to have all this stuff, how
come I don't have it? And so I need to know what the statements are. Now, whether or not she wants to
create a profile for me, or, or or not, I will walk into the nearest JP Morgan and say, I'm here, here's my
license, here's my, you know, my badge from Mount Vernon set me up. But if that can't happen, I'm of
the mindset that then we need to reassess our relationship overall.
While we don't, obviously, we would prefer not to see something like that happen, right? Because we do
have a very well established, long relationship with the city and none of us want to see that happen. So
and that's why I'm saying I just want information. I want to know what our statements say, how many
accounts do we have? What's going on here? Because every time we turn around, we're crying poverty.
But I'm looking at this audit, and it says, we have over 25 million in this and then we have x here. And
I'm just like, You know what, guys? Enough of the bullshit, Pardon the language, but we have we have
real issues in this city that needs to be addressed, we can no longer tolerate, you know, smoke and
mirrors.
No understood. And I can tell you that. So for example, in terms of the bank statements, as I'm sure you
can imagine, the bank statements are cut monthly, they're typically cut the second or third business day
of the month, a profile could even be created for a user doesn't necessarily have to be yourself, but
Page 4 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
could be created for a user for the ability to pull the bank statements electronically every month, like
the second or third business day of the month.
so that user could be at Mondale who's, who's your administrative assistant? I don't have to be a signer.
But I just get the bank statement. I can't do anything else. Yep. But I can see bank statements. That's all I
can say.
And that and that's all we want. So if you think you can get us, you know, the, you know, last year, let's
say, you know, 2015 2016, and the first five months of this year, I think that that'll make me very happy
because now I have something to look at that I can say, Okay, I have the past two years, I can look at
what was done in 15 and 16. And now I know where I am in 17 That's it.
Okay, and the well now, my understanding is Sheila had provided Tom with with some states so those
statements that she provided to Tom were they included in that 15,16 and year to date? 17
I don't know I haven't spoken to Tom I've been traveling this week and I was expecting to see you and
then that didn't happen. So that it's alright but but I'm saying so once I once I keep moving I don't I don't
have a chance to come back. Which is why I said let me get this done now. So So where is she was what
does she physically sit if she wants to print them out? I'll send a detective to come pick them up.
Sheila sits in Brooklyn, but you don't have to. You don't have to do that. That's fine. We can when she
pulls them we can overnight up to that's fine.
Page 5 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
Okay. No, it's it's it's important that we get them today. So I'm trying to figure out, you know, we're in
Brooklyn issue. Is there anybody else closer?
Well, my office I sit on what's his revenue, but at the banker, we don't have the ability to print bank
statements. Okay. So we're, yeah, we can do transactions, we can
print banks. So is there. So I know you said that I can. I can ask
I'll be honest, it's 3030 some odd banks 28 bank statements. I don't know how quickly she's gonna be
Got to do that. So is there a preference you would have in terms of timing?
Page 6 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
I mean, that's what I'm saying. If she wants to just print them out, we can have someone just come
there and pick them up. You know, I don't I don't mind sending a detective down to Brooklyn. He has
lights and sirens he can cut through traffic.
Alright, I need to just find out from Sheila, how difficult that would be. If she can have somebody, maybe
in the back office, print those bank statements and do them quicker.
In that way. I mean, you don't have to worry about email, because I don't want it to, you know, to come
in in unsecured format, you know, unless,
yeah, no, no, we're not. We're not allowed to send anything that has sensitive data in it. Right? account
numbers, anything like that right? Tax ID, none of that can come in an unencrypted email that has to be
encrypted,
right. And then some say if but if you can send an encrypted email great, I just don't know how I'm
gonna get it. I don't have a profile.
Yeah, no, no, she was sure or customer service team, including she'll they work with a client set up a
profile to one time, it's a one time thing, you get a password. If there's no online banking profile, just the
profile to open encrypted emails from
Page 7 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
well, they look, she could do that, that. I mean, we'll do it in parallel. If she can do that. Great. And then
you can still send the guy down to pick it up that way, you know, she sees that it's for real.
We're not gonna we're not gonna question it's for real. I'm fine with this conversation. Excellent. Okay,
so Alright, so next steps for I will pick up the call, Maureen, when we hang up. Have a have the
conversation regarding the wires. What that means likely surge just so you understand is likely no wires
will go out for let's say the next 48 to 72 hours. Because that profile has to be created, you get a key fob.
With a rotating series of digits. It's an RSA token. That's how you access the system. And that's how you
release wires. Got it? Okay, so I will call Maureen's office. And then I will call Sheila,
can you come if you can just call Sheila first, please? Yeah, okay. Just, I want to get that emotion because
she's gonna need time to get those wheels spinning. And I know it's approaching lunchtime. And then
and then Maureen, you know, you can if you don't mind calling after Sheila, because I just think in
sequence, it's helpful to get the wheels turning.
Okay. Yeah. And then I can I mean, once I talked to Maureen, I don't know what's gonna happen from
there.
Mayor Thomas
Right.
She's gonna look, and here's the other thing. She based on the charter, she does not have the, you
know, the right in the title to, to, quote unquote, terminate these relationships in signed contracts. She
has no legal authority to sign contracts, I am the person for the city. So she can't give you the threat of
walking away. Because from what I understand, based on the way our attorneys are reading it, it's the
mayor, not the comptroller. Okay. And, you know, as I've offered before offer, again, our legal teams
available to talk with your legal team. And, and we're more than happy to show you where, where we
brought this issue to court. And, and Maureen got into a lot of trouble for that. So, you know, if we
really push this the way, you know, I, we may have to, we'll bring it back to the judge and show that she
violated the court order.
Page 8 of 9
May 12, 2017
TRANSCRIPTION OF Mayor Rich Thomas Conversation with JP Morgan Chase Bank Representative Ed Lundell On
Stopping Wire Transfers By Comptroller Maureen Walker Without Mayors Sign Off
Right. Which is why I'm just saying we want to we want to just I want to give you some some
information that will help you deal with her disappointment that, you know, we're enforcing the rules.
Okay. Okay. All right. All right. I appreciate your time, sir.
Thank you. So I'm going to expect a call back from Sheila or my Brianna in my office is going to get a call
back from Sheila as to when and where we can pick this stuff up and then the encrypted email stuff. Yes.
Excellent. Thank you.
Transcribed by https://otter.ai
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