Pigeon, AwfulPAC Reportedly Under Investigation

Credit: Steve Pigeon, Via Twitter

It seems that when Erie County Democrats aren’t battling local Republicans, they’re busy ripping each other to shreds.  In its biennial outbreak of trench warfare between various Democratic factions, the party is too distracted by insider nonsense to remember how to win key elections.

In 2013, the Democratic headquarters/Jeremy Zellner faction endorsed several candidates for the county legislature, as well as Bert Dunn for county sheriff. The Steve Pigeon faction backed different candidates for all of those races, including Dick Dobson for sheriff. On its face, that’s no big deal – primary races during primary season.

But what may have started out as a typical Pigeonesque trolling of county HQ has developed some serious legs.

The suspected Pigeon modus operandi is to use go-betweens and shell corporations or LLCs to funnel money to, from, and between his candidates and certain campaign consultants and companies to do lit, polling, signs, and media buys. They use rhetorical sledgehammers to demolish their opponents with whatever smear they can muster – ask Sam Hoyt. It’s all a well-oiled machine that has few accomplishments, other than spending other people’s money and occasionally harming Democratic candidates in general elections.

The problem is that apparent campaign finance and disclosure violations are seldom investigated and almost never prosecuted.  At least, not in Erie County.

In 2013, Pigeon and erstwhile political commentator Kristy Mazurek set up the “WNY Progressive Caucus”.  It was set up as a PAC – the election law doesn’t use that term, but as an unauthorized committee, the WNYPC could raise and spend money to donate to specific campaigns, but was not allowed to coordinate with them, or spend money on their behalf. I called it “AwfulPAC”.

In early September 2013, just weeks before primary day, the WNYPC paid for thousands of pieces of literature to be mailed to voters, slamming legislative candidates backed by party headquarters; most notably, Tim Hogues, Betty Jean Grant, Wynnie Fisher, and Lynn Dearmyer. By way of example, one piece of WNYPC lit slammed Hogues for being a “Republican”, and promoted the candidacy of his challenger, Barbara Miller-Williams – a woman who quite literally conspired with Republicans to mount a legislative coup in 2010.

WNYPC’s disclosures were not complete.  For a time, it showed the PAC to be in the red – a big no-no. Disclosures came in late. Disclosures were inaccurate or misleading, in one instance showing a donation from a different, long-dormant Pigeon-associated PAC, “Democratic Action”.  What was odd about that purported $9,000 donation from Democratic Action was that it did not disclose any outflow of money during the same 2013 cycle, and had most recently showed a fund balance of $2,400 and a concomitant “no activity” report with the Board of Elections.

Dick Dobson embarrassed Bert Dunn on primary night. Dunn decided to waste his money and run on a tailor-made third party line, unsuccessfully. WNYPC abandoned Dobson, however, during the general election. None of Mazurek’s legislative candidates won, so she used Michael Caputo’s PoliticsWNY.com to smear Wynnie Fisher, who had defeated Mazurek’s candidate, Wes Moore.  Apparently, Fisher and her neighbors don’t get along, so a story was planted accusing Fisher of being crazy.

The problem was that the letter was sent to Wes Moore at an address in Lancaster. But Moore’s campaign committee was based in the Nanulas’ offices in Clarence. The Lancaster address was a house on Doris Avenue where Mazurek was living, and which also served as the mailing address for WNYPC. There was, on its face, a smoking gun of coordination. How and why would Wynnie Fisher’s neighbors decide to send a letter to an address for Wes Moore that didn’t exist in nature?

In late September 2013, Tim Hogues and Betty Jean Grant, with an assist from anti-Pigeon transparency advocate Mark Sacha, filed a formal complaint with the New York State Board of Elections, accusing Pigeon, Mazurek, and WNYPC of various illegalities and violations of campaign finance law.

Geoff Kelly reports at the Public that the investigation has wings .

After the County Board of Elections resolved to investigate the complaint, it was turned over to the state BOE, which in turn appears to have turned it over to the Attorney General’s office and State Police. Once an investigation such as this is put into the hands of people outside of Buffalo, you know that the threat of shenanigans is decreased exponentially.

Kelly reports that police interviewed several people at the county legislature. I have confirmed that at least one of the legislative candidates from 2013 was also interviewed.  Subpoenas have been issued and action taken to enforce them. Don’t be surprised if forensic accountants are trying to account for all the money – where it came from, and how it was spent.

Kelly also reports that real estate deals and former Deputy Mayor Steve Casey are under investigation. This likely has something to do with the Seneca Mall project, where Casey is now employed.

For once, at long last, it seems that campaign finance and election laws are being enforced in a serious way. Will there be a prosecution? Time will tell, but something big is going on behind the scenes, and it’s being directed by very serious people from outside the area.

A Confluence of Horrible Politics

When it comes down to less than 100 votes between the two candidates, you don’t get to be a sore winner and gloat over an exceedingly narrow victory. When the victory came about as a result of a relentless, libelous campaign whereby a young and promising legislator is defamed as a “Republican” sellout, it’s nothing to boast about. When the beneficiary of that campaign is one of the most toxic and corruptible figures ever to skulk through government, it’s shameful. Barbara Miller-Williams didn’t win for herself, had Steve Pigeon not formed a PAC and funded it with almost $300,000 within the course of a week, there’d have been no blitz of “Tim Hogues is a Republican” mailers that went to every home in the district every day. 

Betty Jean Grant – she was a victor, completely obliterating the opponent who stood to benefit from the same mailing blitz. Nice try, Tim Kennedy, but you didn’t get your revenge directly against your nemesis this time

Zydel and Moore – the Pigeon/Mazurek top of the marquee – both lost big to HQ-backed candidates Dearmyer (who, in turn, lost to Pat Burke), and Wynnie Fisher, respectively. Not a day for a Pigeon victory lap at all. 

Bert Dunn, on the other hand, lost dramatically to Dick Dobson. Dunn ran his own campaign with his own people and his own money, eschewing help from the party apparatus. Zellner stayed out of that race, for the most part, and Dunn lost big. Too big – it was embarrassing, but all he seemed to do was put signs up at Bert’s Bikes locations and let Pigeon’s committee beat him up on TV. 

Now, Dunn is pledging to continue his run on the “Law and Order” party line he created for himself. This is a foolish endeavor that will not work and is a stupid thing to do at a time when Democrats should be rallying around Dobson. Dunn failed and should step aside and perhaps try again another time. 

By the same token, Democrats should all be supporting Fisher and Burke in their general election battles. It’s one thing to run a primary campaign, it’s another to actively support the Republican to get one over on the party apparatchiks you don’t like. 

Finally, as the Buffalo News’ Bob McCarthy reported, complaints have been made to the Moreland Commission on public corruption. Let’s examine. 

– Senator Tim Kennedy gave $85,000 to the Pigeon/Mazurek PAC, half of which came from a defunct, closed campaign account in apparent violation of election law. Kennedy tells McCarthy that his donations followed the “letter and spirit” of the law. The facts and disclosures show the exact opposite, yet this is omitted from the article.  

– Pigeon told McCarthy: 

Pigeon labeled the Grant-Hogues letter a “frivolous action” and questioned whether Cuomo’s Moreland Commission is even charged with probing political campaigns.

“The charge is to investigate corruption of public officers,” Pigeon said, “not to be a campaign watchdog. That power still lies with the Board of Elections.

Yet the Moreland Commission on Public Corruption was formed earlier this year, and the announcement read, in part, as follows

Governor Andrew M. Cuomo today announced the formation of the “Commission to Investigate Public Corruption” under the Moreland Act and Executive Law Section 63(8) to probe systemic public corruption and the appearance of such corruption in state government, political campaigns and elections in New York State

…”I am formally empanelling a Commission to Investigate Public Corruption pursuant to the Moreland Act and Section 63(8) of the Executive Law that will convene the best minds in law enforcement and public policy from across New York to address weaknesses in the State’s public corruption, election and campaign finance laws, generate transparency and accountability, and restore the public trust.”

  • [The commission will investigate] Campaign financing including but not limited to contribution limits and other restrictions; disclosure of third-party contributions and expenditures; and the effectiveness of existing campaign finance laws.

So, the facts directly contradict Pigeon’s assertion about the commission’s mission, yet this key fact is shunted down to the bottom of the article, completely outside the context of Pigeon’s assertion. 

The way in which New York conducts is elections is horrible, rife with opportunities for bad people to do questionable and corrupt things. PACs can spend unlimited money and its campaign advertising doesn’t need to disclose the source. Electoral fusion allows our system to be more about dealmaking with otherwise irrelevant minor “parties” and does nothing to enhance electoral democracy. Ballot access is unreasonably complicated and rife with traps for the unwary, and should be simplified. Money flowing to and from PACs – which are not even formally recognized under state law – should be accounted-for, disclosed, and limited to prevent monied interests from stealing elections. 

The problem now is whether money in politics will prevent the needed reforms from being openly discussed and implemented. 

AwfulPAC

Yesterday, I wrote about the Kristy Mazurek / 2Sides / Steve Pigeon involvement in a shiny new PAC that sent out thousands of unattributed campaign literature smearing incumbent Democratic county legislators Betty Jean Grant and Tim Hogues, and supporting challengers Joyce Wilson Nixon and Barbara Miller-Williams. Instead of focusing on the politics as usual, I noted that the state should really change the rules to require that campaign advertisements disclose who paid for them

Yesterday afternoon, the PAC’s financial disclosure was revealed on the Board of Elections’ website, and Geoff Kelly wrote up most of the details in Artvoice’s print edition. Big news was a $45,000 influx of cash from Senator Tim Kennedy’s campaign fund, which represents a huge middle finger to, among others, Betty Jean Grant, who not only primaried Kennedy last year, but came within spitting distance of defeating him through a write-in campaign. There was also a $20,000 “loan” from Steve Pigeon.

But what we also noticed last night was the list of 24-hour notices of massive contributions. Here it is: 

Frank Max gave almost $2,000. Steve Pigeon donated a straight $30,000 – no loan, just cash. AJ Wholesale is a business that is not located in New York State, but on sovereign Seneca territory. It is owned by Aaron Pierce, who was targeted in 2010 for possibly illegal tax-free cigarette shipments in violation of federal law. Pierce unsuccessfully ran for Seneca President in 2012. He’s given money to Kennedy, among others: 

AJ Wholesale didn’t appear in any searches for prior donations. Curious, that.