The city’s Campaign Finance Board this morning denied as much as $3.5 million in public matching funds to mayoral hopeful John Liu — a potentially crippling blow to his lagging campaign.
CFB executive director Amy Loprest said the board relied on the recent court trial of two Liu campaign affiliates and a yet-to-be-released internal investigation to conclude that there had been “pervasive” violations of campaign law and board rules.
The 5-member board’s vote, which is certain to be appealed, was unanimous.
“It’s no secret that there were problems in the Liu campaign…in early 2011,” Liu’s campaign lawyer, Martin Connor, told Board members shortly before their decision was made public.”[But] what the [CFB] staff is proposing is the death penalty for minor transgressions.”
He put the number of questionable donations at 35 out of more than 6,300, and argued that the penalty should be proportional to the level of wrongdoing.
But Board chair Father Joseph Parkes said there was significant evidence of wrongdoing.
“The evidence suggests that the potential violations are serious and pervasive across the campaign’s fundraising… in particular, the solicitation, receipt and reporting of ‘straw donations,'” Parkes said. “The candidate if ultimately responsible for the campaign’s compliance with the law.”
Liu’s ex-campaign treasurer and a former fund-raiser were convicted in May of trying to scam matching funds from the Campaign Finance Board, in part through “straw” donors that mask who’s really contributing the money. The tactic is meant to increase the number of funders who have their donations matched by the city, which pays $6 for every $1 contributed – up to $175 per donor.
Among the Democrats who were granted public matching funds by the CFB, City Council Speaker Christine Quinn got the most with $3.3 million.
Public Advocate Bill de Blasio took in $2.1 million, while former Congressman Anthony Weiner and former Comptroller Bill Thompson got $1.4 million.
Republican mayoral hopeful Joe Lhota was granted $1.4 million as well.
Former Assemblyman Vito Lopez, who resigned after a report found that he harassed a number of female subordinates while in office, was granted $87,000 in his bid for a City Council seat in Brooklyn.