Does Everybody Do It?
Recent developments have served to transform this blog into something more of a “crime report” than originally intended as state and federal regulators have increasingly turned to highly publicized criminal prosecutions as a means of limiting pay to play activities. Most recently, New York’s Attorney General felt compelled to file legal pleadings in Manhattan State Court rebutting the assertion that there is nothing inherently wrong with using political connections and favors to secure state contracts because “everybody does it”.
In the public corruption case against Hank Morris, former advisor to State Comptroller Alan Hevesi, the State of New York observed :
“Business as usual” is not a defense to fraud, and “everybody does it” is not a defense to public corruption. It is true that fraud and corruption in politics have existed from the beginning of time. That is not, however, a reason to ignore them; to the contrary, we must zealously root them out. The fact that fraud and corruption may be rampant dies not cloak wrongdoers with impunity."
(Affirmation and Memorandum of Law in response to Defendant’s Omnibus Motion, p.2)
It is clear that this process of reshaping the perceived “business as usual” of politically influenced government contracting through criminal prosecution is well under way throughout the country.
Nowhere are political shenanigans more susceptible to being confused for “business as usual” than in Trenton, New Jersey, where just this week former city councilman Michael Schaffer pled guilty to federal charges that he funneled campaign funds to former Hoboken Mayor Peter Cammarano in an effort to influence the award of city real estate development projects. This plea is only a small part of a massive FBI investigation into public corruption in Trenton, which has, to date, resulted in federal charges being filed against at least 44 individuals.
This is not to say, however, that everyone universally agrees with the “regulation by prosecution” approach. In connection with SEC efforts to impose a 3 year ban on “Obama Car Czar” Steven Rattner, the SEC and New York A.G. Andrew Cuomo are said to be investigating whether Rattner sought to exert political influence in an effort to secure business from the New York state pension fund. New York Mayor Bloomberg, however, appears not to be convinced. Dismissing the allegations against Rattner as “ridiculous”, Mayor Bloomberg has recently given Rattner $5 billion (not a typo) to establish a new firm.
Now THAT’s a political connection leading to new business.
