The Chief
October 29, 2004

Razzle Dazzle: The Mayor’s ‘Guy’ Problem
By Richard Steier

The biggest problem with politics, as Mayor Bloomberg continues to learn, is that it forces you to deal with politicians.

An insight into the grief this has caused him was provided indirectly -- and indiscreetly -- by the Mayor’s designee to run the Local Conditional Release Commission, Daniel Richman.

Mr. Richman, a law professor at Fordham University, was asked during an Oct. 18 City Council hearing what mandate the Bloomberg administration had given him regarding the agency, which made the controversial decision to give former State Sen. Guy Velella an early parole just three months into a year’s sentence on a bribe-taking conviction.

‘Keep It Out of the Papers’

He replied, “To follow the law and keep this thing out of the newspapers.” He quickly sought to amend the record by saying that restoring the panel to its previous obscurity was his idea, not anyone at City Hall’s, but it was easy to believe that he had received just such an instruction.

Mr. Bloomberg, who at the outset of the stirrings over Mr. Velella’s early release sought to distance himself from the event by saying, among other things, that he hadn’t even been aware of the commission’s existence, over the past month saw the story ferment, like some particularly ripe trash that had been placed outside his doorstep.

And as the odor grew, the Mayor was forced to sharply alter his position on a story that absolutely wouldn’t stay out of the newspapers.

On Sept. 27, the day Mr. Velella was released, Mr. Bloomberg disclaimed involvement even after the fact, saying of the conditional release panel, “It’s an independent board, and they’re going to do what they think is right.”

But 15 days later, after forcing the panel’s chairman to resign, the Mayor said, “I don’t know what possessed them to do it.”

The deposed chairman, Raul Russi, insisted he had pressed to grant Mr. Velella early release out of pity for him after learning of tearful phone calls the former Bronx State Senator had made to commission staff from Rikers Island that led him to believe he might be suicidal.

Mr. Velella was never placed on suicide watch while at Rikers, however. And there were other elements to the case that suggested that, rather than receiving a mercy pardon, he had been the beneficiary of a carefully orchestrated if rather transparent political fix.

For instance, the early release by the panel a month prior to Mr. Velella’s prison exit of Manuel Gonzalez, one of the other two men jailed with Mr. Velella after their convictions in a scheme that allowed them to collect $137,000 in bribes for using Mr. Velella’s influence to gain public works contracts for various vendors.

Gonzalez the Bag Man

Mr. Gonzalez, a former aide to Ramon Velez -- the one-time baron of South Bronx patronage that ranged from anti-poverty programs to jobs at Lincoln Hospital -- had been Mr. Velella’s bag man in the scheme, collecting the bribes from contractors seeking state business.

There has been no indication that he made tearful phone calls to the commission that might inspire concerns for his safety. Nor were such calls made, by all available evidence, by the third man jailed in the shakedown enterprise, Hector Del Toro, who was released on the same day as Mr. Velella. Nor is there an indication that any prominent officials wrote the commission advocating their early release, as luminaries ranging from former Mayor Ed Koch to State AFL-CIO President Denis Hughes and Patrolmen’s Benevolent Association head Pat Lynch did on behalf of Mr. Velella.

Yet they joined the Crying Guy as three of just five convicted felons who secured early release this year.

This seemed something more than coincidental given Mr. Russi’s own political connections. He had served as both City Sheriff and Probation Commissioner during the mayoral administration of Mr. Bloomberg’s fellow Republican, Rudy Giuliani.

And when the current Mayor pointed Mr. Russi in the direction of the private sector as the source of his full-time employment upon taking office in 2002, fate smiled on Mr. Russi in the form of a job as the $125,000-a-year executive director of a Bronx non-profit drug treatment agency named BASICS that gets referrals of recently released inmates from the Department of Probation.

Seven months ago, Mr. Russi was appointed to the city Board of Correction at the recommendation of Martin Horn, who serves as both Correction and Probation Commissioner. More recently, as the Daily News reported last week, BASICS received a $24 million city contract from the Department of Homeless Services. In another of those isn’t-life-funny coincidences, the contract was awarded on Sept. 22, the same day that Mr. Velella’s early release was approved by Mr. Russi’s panel.

This creates a somewhat awkward situation for Mr. Horn, beyond the question as to whether under any circumstances the Correction Commissioner should be picking the people who evaluate him. Mr. Russi is part of the body that serves as the outside watchdog for the jail system, giving him a platform from which he could either embarrass or protect the Correction Commissioner who in his other role at Probation has helped steer his firm business.

The Homeless Services contract is now part of the overall probe of Mr. Velella’s early release that is being conducted by the Department of Investigation and the Manhattan District Attorney’s Office.

Stain Invisible Here

It seems odd that Mr. Russi, having been deemed by the Mayor to be too tarnished to head the parole commission, could nonetheless retain his spot on the Board of Correction.

Then again, that particular post may be a special mayoral sinecure for the ethically challenged, since its previous occupant was Fred Patrick. Mr. Patrick had to vacate it because of his conviction for using funds from the Correction Foundation to pay the bills that he and some jail system inmates ran up in a phone sex scandal.

He stole more than $130,000 that way; what still hasn’t been explained is an additional sum of more than $700,000 from the foundation that was never properly accounted for. The decision by top city officials during the Giuliani administration to keep Mr. Patrick on as head of the Correction Foundation even after he left a Correction Department post to become Juvenile Justice Commissioner is just another of those things that make you go “hmmmm.”

When the Mayor was asked about the justification for letting Mr. Russi stay on at the Board of Correction, he indicated that his expertise in correction matters could be an asset to the panel.

Blissful Ignorance?

That begs the question, however, as to why Mr. Russi, who from Mr. Bloomberg’s description was presumably knowledgeable enough to be aware of the fact that Correction places some inmates under a suicide watch, did not check with officials in the jail system about whether they believed Mr. Velella might harm himself if he remained confined.

Which is one more reason to conclude that political machinations rather than mercy were at the heart of the early release. The investigation of the release, according to the Daily News, is focusing on whether any of Mr. Velella’s Albany friends leaned on Mr. Russi for favorable consideration after their corrupt former colleague’s first request for parole was denied.

If such persuasion was applied, it would not necessarily have been countered by concerns on Mr. Russi’s part that an early release would displease the Mayor. Mr. Bloomberg, after all, had attended a September 2002 fundraiser meant to help cover Mr. Velella’s legal costs. (A $10,000 personal contribution Mr. Bloomberg made to the Bronx Republican Party, which Mr. Velella headed until his conviction, was also used to defray lawyers’ fees, but there is no reason to believe the Mayor knew the money would be used for that purpose.)

It could be argued that there was nothing inappropriate about the Mayor attending the fundraiser inasmuch as Mr. Velella had been indicted but not convicted of any crime at the time. But alongside the presumption of innocence, Mr. Bloomberg had to be aware that the case against Mr. Velella, which was made by the Manhattan DA in conjunction with the State Police, was a strong one.

A Strong-Arm Threat

And details of the indictment which made it into the papers four months earlier made clear that Mr. Velella was accused of seamier stuff than mere favor-trading. When a state housing official, Judith Calogero, blocked approval of a subsidized housing project being sought by the Hunts Point Multi-Service Center -- the power base of Mr. Gonzalez and his old boss, Mr. Velez -- Mr. Velella, according to the indictment, threatened to arrange for her firing if he became head of the Senate Housing Committee.

One person with extensive dealings with Mr. Bloomberg, asked how he would react if another elected official was threatening a member of his staff in that fashion, replied, “He’s very protective of his employees. If he thinks you’re taking an unfair shot at one of them, that’s when his back really goes up.”

Asked whether there wasn’t an inconsistency then in Mr. Bloomberg attending the fundraiser, this official said it was possible the Mayor hadn’t been aware of the details of the indictment beyond the basic bribe-taking charges. And given Mr. Velella’s close relationship with Senate Majority Leader Joe Bruno, who a couple of months earlier had helped the Mayor push legislation through giving him control of the city school system, attending the fundraiser was almost an obligatory observance of political etiquette.

The pull of such customs became evident from comments made last week by United Federation of Teachers President Randi Weingarten. No one from Mr. Velella’s camp asked her to write a letter on his behalf, but she said, “I wouldn’t have written a letter asking that he be released early, but I would’ve written a ‘character letter,’ given his record as a legislator.”

‘Wrong to Forsake Them’

She might be repelled by the crimes he had committed, she explained, but over the years Mr. Velella had consistently supported key issues championed by the UFT. “When people run away from someone who’s helped them before just because it’s convenient to do so, I think it’s wrong,” Ms. Weingarten said. “I think the measure of a person is what you do when someone is going down, not what you do for them when they are going up.”

Mr. Koch has taken both sides of that fence. In early 1986, after Queens Borough President Donald Manes tried to kill himself, Mr. Koch went from expressing compassion for his close political ally to accusing him of a betrayal when it became clear that Mr. Manes had attempted suicide -- he succeeded on a second try not long afterward -- because he was about to be implicated in a massive bribery scandal.

This time, Mr. Koch’s letter on Mr. Velella’s behalf stated that he know nothing about his crimes “other than what I have read in the media. However, I can state without reservation that in all of my dealings with him, I have found him to be an honorable person whose word was his bond.”

This seemed a surprisingly broadminded assessment to anyone who remembered what amounted to a mantra for Mr. Koch: “Public service is the noblest of professions if done honestly and done well.”

A Political Bargain

The former Mayor undoubtedly was forced to reconsider his old sense of self-righteousness by the corruption scandal that marred the last of his three terms. He was not directly implicated, but the two prime players, Mr. Manes and then-Bronx Democratic County Chairman Stanley Friedman, had been given excessive sway in his administration, including roles in key appointments. Mr. Koch contended that was the bargain he accepted in return for their support on the old Board of Estimate, but the truth was that he valued their backing in his political campaigns probably more than he did their votes on land-use issues. Along with other corrupt political leaders like Brooklyn Democratic boss Meade Esposito and Mr. Velez, Mr. Manes and Mr. Friedman played key roles in his initial election in 1977 and in limiting the seriousness of his opposition in two subsequent re-election runs.

Mr. Bloomberg, like Mr. Koch during that 1977 run, positioned himself as a reformer who was willing to take on the political bosses, as well as the unions. In truth, he kept on some of the politically wired operatives who had worked for Rudy Giuliani, who himself made the transition from a reformer to a patronage dispenser who valued loyalty over competence to a far greater degree than some prior Mayors who came out of the Democratic clubhouses.

One irony of Mr. Bloomberg’s relationship with Mr. Velella is that the deposed Republican County Leader was among those who early on accused him of not giving enough jobs to the party faithful. Among those with ties to the Bronx State Senator who had ambitions for top positions in the administration was Tony Serra, whose past political service earned him a rise to the third-ranking position in the Correction Department during Mr. Giuliani’s tenure despite a penchant for violating the agency’s rules and regulations.

Unfortunately for Mr. Velella, by the time he entered the jail system himself, Mr. Serra was not there to ease his transition to life at Rikers. He had been indicted for misusing department equipment and employees to spruce up his home and to run a political operation for Governor Pataki that earned him over $233,000 for a few months’ work in 2002.

Bad Company

The cases of Mr. Serra and Mr. Velella are object lessons for Mr. Bloomberg in the danger of entangling alliances with politicos for whom honesty isn’t a prerequisite.

On the other hand, as Mr. Velella’s constituents and several prominent labor leaders of varying political stripes have attested, he used his clout to the benefit of their members, even while he was lining his own pockets. If his ability to deliver made him valuable to them, it also made him someone for Mr. Bloomberg to cultivate and indulge, at least to the point of attending his fundraiser while he was under indictment.

That’s a reality of the universe in which the Mayor is now operating. The flip side of it is that he can be sure his Democratic challenger for re-election next year will try to wallop him with the Velella pardon for as long as he or she can punch.

It might be enough to make Mr. Bloomberg wonder why he left the ivory towers of the business world for a safari in the political jungle.
                            
© 2004 The Chief-Civil Service Leader



Henry J. Stern
starquest@nycivic.org
New York Civic
520 Eighth Avenue
22nd Floor
New York, NY 10018

(212) 564-4441
(212) 564-5588 (fax)