Nassau Democrats focus on pennies, ignore millions, in requiring disclosure --UPDATED

                                                                             

Nassau County legislative meeting

How oddly ironic that Nassau Democrats in November blithely voted -- without question or discussion -- for  some 20 banks to hold Nassau deposits, including the now failed Signature Bank.

The legislature was provided no disclosure of principals or lobbyists for any of the banks on the list; nor were any reasons given for choosing them, such as interest rates or safety.

After state regulators took over insolvent Signature Bank on Sunday night, the administration of Republican County Executive Bruce Blakeman acknowledged that the county had $95 million in deposits at Signature Bank. Yes, $95 million!! 

A county spokesman said all the monies were safe and "collateralized" even though county legislature's November resolution did not specify that deposits be "collateralized" or secured with the bank assets, as did for example, the Town of North Hempstead's resolution designating depository banks, including Signature.

But Democrats are so big on disclosure that in February, Democratic legislators voted against a deal in which the Jovia Financial Credit Union would pay the county $60,000 for sponsoring concerts at Eisenhower Park last summer because -- wait for it --the credit union had not provided disclosures.

"We noticed in the backup there was no disclosure from any of the principals," said Minority Leader Kevan Abrahams (D-Freeport). 

Parks Commissioner Darcy Belyea explained that Jovia's principals are its account holders. It was "unrealistic to have all of the account holders fill out principal questions" she said, adding that this type of sponsorship deal is considered a "use and occupancy" agreement that generally does not go to the legislature for approval.

But Belyea said, the administration wanted to be transparent.

Abrahams said he appreciated the transparency but "I cannot recall a contract or agreement where you did not provide the complete disclosure."

Democrats have demanded disclosures ever since they learned that former New York State Senate majority leader Dean Skelos, a Rockville Centre Republican, had pressured county officials behind the scenes in 2013 to approve a contract for a company that employed his son. Skelos' role was not revealed to lawmakers when they approved the $12 million contract. (Skelos since served time on federal corruption charges that included the Nassau contract). 

Then Republican County Executive Ed Mangano and Republicans in control of the legislature agreed to require disclosure on vendor contracts. Then for two years county Democrats refused to vote for contracts or most borrowing until the Republicans agreed to hire an inspector general to review procurement. The legislature  finally hired an inspector general at the end of 2018.

Haven't seen any inspector general reports disclosing the reasons for using depository banks or questioning possible political connections between the banks and county officials.

Neither Democrats nor Republicans have answered inquiries as to how long Signature has been an approved Nassau depository bank -- though the legislature usually approves an updated depository list every year or so. North Hempstead Town has used Signature since 2010 and Hempstead Town since 2005, respective town officials said this week.

But we now know from Bloomberg News that former Republican U.S. Sen. Alfonse D'Amato was a director at Signature from 2005 through 2021. And that he and his firm Park Strategies, were hired by Signature in 2018 to lobby for the bank.

D'Amato has remained an influential figure in Nassau politics ever since he lost his bid for re-election to the United State Senate in 1998.

Though Newsday missed the connection, it reported that Tony Cancellieri, 74 of Rockville Centre, was at a Signature branch bank on Monday. 

"Tony Cancellieri, who has used the bank to run an autism charity for about seven years, said he will continue banking with Signature," Newsday reported.  It quoted Cancellieri, “I was shocked and disappointed....They’re a terrific bank and I wanted to reassure myself. The staff was wonderful and reassuring and I hope they get through this as quickly as possible.”

Cancellieri is a former Rockville Centre village administrator. He was a deputy county executive for Democrat County Executive Tom Suozzi and worked with then-Suozzi aide HelenaWilliams, who later became Democrat County Executive Laura Curran's chief deputy. 

Cancellieri left the Suozzi administration to work with D'Amato at Park Strategies, though he has  since left the firm.

This in no way implies any connection between D'Amato, Park Strategies and Cancellieri and Signature's failure. But there certainly were political ties to Nassau County government.

Neither Democrat nor Republican spokespersons have responded to questions about bank depository disclosures.

UPDATE: Nassau's deposit practices were questioned in the past -- though 30 years ago.

Newsday reported in 1992 that then County Clerk Harold McConnell, a Republican, was criticized by state and county auditors for putting millions of dollars in fees received by the clerk's office into no-interest bank accounts, costing the county hundreds of thousands of dollars in lost interest. The bank director, a former Republican leader,  in return gave McConnell a free golf membership at a very exclusive North Shore Country Club, at that time worth between $15,000 to $25,000.

McConnell denied it was a gift and the Republican-controlled county Board of Ethics at the time also did not see it as an illegal gift.