Comptroller John Liu’s plan to turn a Chinatown holiday bash into a campaign fund-raiser has been nixed over legal questions.
The scandal-snared Liu, whose aggressive fund- raising has been under scrutiny for months, had planned to solicit donations at the Chinese Consolidated Benevolent Association’s annual holiday party.
But after The Post reported last week that the party could violate campaign-finance as well as IRS nonprofit regulations, he changed his mind.
“We appreciate a number of groups in the community initiating fund-raisers, and we have been advised that nonprofits cannot host political events,” said Liu’s mayoral campaign spokesman, George Arzt.
Jack Eng, president of the 130-year-old CCBA, said it had been unaware of the regulations when it agreed to allow Liu to set up a table to collect contributions.
“Now we understand we can’t do it,” Eng said.
The federal tax code prohibits tax-exempt groups from advocating for political candidates or making their facilities available without charging a fair market price.
Liu’s campaign was not going to be charged a fee for the table.
A registered nonprofit “can’t be involved in political activities for a candidate,” one attorney said, noting it could endanger its tax-exempt status.
Liu, the only Asian-American to hold citywide office, is a regular at Chinese community events.
Earlier this year, he presented a proclamation certificate at the Beijing Association of New York’s Chinese New Year gala.
Arzt said no fund-raising took place at the event.
A past head of that organization, businessman Jianli Hou, is a Liu donor and the father of Jenny Hou, who is Liu’s current campaign treasurer.
Jianli Hou donated $800 to Liu’s still-unannounced 2013 mayoral campaign fund, and three of his employees donated a cumulative $2,400, records show.
Separately, Liu promoted a former fund-raiser in his comptroller’s office, The Post has learned.
Mary Ellen Courtney, an activist in the Queens Democratic Party and volunteer on the 2009 Women for Liu fund-raising committee, was named director of quality reviews and affirmative claims.
“She’s worked for the comptroller’s office for 17 years. She’s basically doing two jobs now,” said Matt Sweeney, a Comptroller’s Office spokesman.
The new post comes with a $115,000 salary, a 29 percent raise for Courtney.