VIA FAX to 518-474-8322

February 16, 2011

Mitra Hormozi
Chair, NYS Commission on Public Integrity
540 Broadway
Albany, New York 12207

Re: Investigation of the Committee to Save New York & Governor Cuomo

Dear Ms. Hormozi:

The undersigned organizations hereby submit this complaint requesting that the
Commission on Public Integrity (the “Commission”) prepare to undertake an
investigation into the connection between The Committee to Save New York (“CSNY”,
or the “Committee”) and the office of Governor Andrew Cuomo.

We believe the Committee to Save New York -- which is inextricably linked to the
Governor’s office through personal and professional relationships, which was established
at the “urging” of the governor himself, which has reportedly raised more than ten
million dollars ($10,000,000) to spend on television advertisements in explicit support of
the Governor’s budget proposals that are currently before the state legislature, which, we
outline below, did not register as a lobbyist with the Commission in a manner compliant
with the Commission’s rules and the State Lobbying Act, and which should be expected
to first report on those expenditures by the March 15, 2011 bi-monthly reporting deadline
-- should be required to list Governor Cuomo on its lobbying registration as a third
party on whose behalf it is lobbying.

Under the Commission’s authority granted to it by the New York State Lobbying Act
created by Chapter 2 of the Laws of 1999, as amended by Chapter 62, of the Laws of
2003, Chapter 1 of the Laws of 2005, and as amended most recently by Chapter 14 of the
Laws of 2007, the Committee should be required to register as a lobbyist listing
themselves as a client. That registration form requires registrants to state that if a "client
has retained, employed or designated the lobbyist . . . to lobby on a third party's behalf,
[they must] complete the third parties name address and phone number [on the statement
of registration].”

It is our understanding that The Committee to Save New York, acting as both a
client and its own lobbyist, was non-compliant with its registration requirements
under the state Lobbying Law and under the Commission’s rules. Further, it is our
understanding that the Committee is intending to lobby on the behalf of a third
party -- namely, Governor Andrew Cuomo -- and therefore must include the
Governor’s name, address, and phone number on the Committee’s statement of
registration.
CSNY is inextricably linked to the Governor’s office through personal and
professional relationships

The Committee has utilized a range of hired guns, including Eric Sedler of ASGK Public
Strategies, “the firm founded by David Axelrod, until recently a White House adviser” to
help craft its message.1 The primary spokesman delivering that message for the
Committee is William “Bill” Cunningham, a managing director at DKC, and “a close
friend of the governor”2 as they “go back dozens of years.”3 DKC (Dan Klores
Communications) is a “public relations and consulting firm closely tied to the new
governor”4 because, like Mr. Cunningham, Dan Klores is “a close friend of Mr.
Cuomo’s.” In addition, John Marino has been active behind the scenes in the Committee,
and is “a former state Democratic Party chairman who is close to Mr. Cuomo, [and] also
works at DKC.”5

As early as December 9, 2010, the New York Times reported that while, “Officially, Mr.
Cuomo has no connection to the committee, [sic] his ties are evident, and he has been
fully apprised of the group’s progress, executives said.”6

A January 18, 2011 report cited Mr. Cunningham as saying, on behalf of the Committee,
“We’re monitoring. To say ‘coordinating,’ I think that’s a strong word. It’s filtered in
there, but there’s not a direct hit around the table with people in the administration.”7

But just one day earlier, on January 17, 2011, Mr. Cunningham noted that while, “there
was no direct coordination between its operation and the Cuomo administration… there
was little need to do so.” The New York Times reported:

“We know what the governor’s agenda is, and we don’t need a lot of
guidance,” said Mr. Cunningham, who was an aide to Mr. Cuomo’s father,
former Gov. Mario M. Cuomo.8

1
“Business Group Prepares Plans to Counter Unions.” Charles V. Bagli. New York Times. January 7, 2011
www.nytimes.com/2011/01/08/nyregion/08save.html
2
“Business Group Prepares Plans to Counter Unions.” Charles V. Bagli. New York Times. January 7, 2011
www.nytimes.com/2011/01/08/nyregion/08save.html
3
“The governor’s lobby: Business leaders (and others) form a committee to save Cuomo.” Jimmy Vielkind. January 18,
2011. Capital New York. www.capitalnewyork.com/article/culture/2011/01/1178882/governors-lobby-business-leaders-
and-others-form-committee-save-cuom
4
“Group Takes On Albany With Cuomo’s Blessing” Nicholas Confessore and Thomas Kaplan. New York Times. January
17, 2011. www.nytimes.com/2011/01/18/nyregion/18cuomo.html
5
“Cuomo Gains an Ally for a Looming Fight With the Public-Employee Unions.” Charles V. Bagli. December 9, 2010. New
York Times. www.nytimes.com/2010/12/10/nyregion/10unions.html
6
“Cuomo Gains an Ally for a Looming Fight With the Public-Employee Unions.” Charles V. Bagli. December 9, 2010. New
York Times. www.nytimes.com/2010/12/10/nyregion/10unions.html
7
“The governor’s lobby: Business leaders (and others) form a committee to save Cuomo.” Jimmy Vielkind. January 18,
2011. Capital New York. www.capitalnewyork.com/article/culture/2011/01/1178882/governors-lobby-business-leaders-
and-others-form-committee-save-cuom
8
“Group Takes On Albany With Cuomo’s Blessing” Nicholas Confessore and Thomas Kaplan. New York Times. January
17, 2011. www.nytimes.com/2011/01/18/nyregion/18cuomo.html
One account after another reports that the inextricable links between the Governor and
the staff and leadership of the Committee are so deep that “there was little need” to
directly coordinate.

CSNY was established at the “urging” of the governor himself

The Committee was formed in response to direct requests from the Governor, as it was
reported as early as December 9, 2010 that he had “publicly asked business leaders to
back him up.”9

On January 17, 2011, Mr. Cuomo explicitly referenced the Committee and said, “I
encourage people to join that group.”10 The report continued, stating that the Committee
“was organized at [the Governor’s] urging, after a series of meetings last spring and
summer at which the then-candidate pressed business leaders to take a more aggressive
role in Albany.”11

On January 9, 2011, Crain’s New York reported that, “Mr. Cuomo personally called for
the group to coalesce around his push to overhaul spending,” and that that personal
request was, “sparking much of the enthusiasm” around its fundraising efforts. The
Crain’s report continued:

“Andrew brings command and control to the table,” a veteran Democratic

strategist said. “If the governor's people call you, if the governor tells you
to do it, everyone has to do it.”12

All of this was done at the Governor’s “urging,” all the while, according to a veteran
Albany watchdog, the members of the Committee, “collectively have billions of dollars at
stake in the decisions that Mr. Cuomo will make in the coming year, on issues including
insurance and banking regulations and rent control.” 13

CSNY has reportedly raised more than $10 million in undisclosed contributions to
provide explicit support of the Governor’s budget proposals

On January 7, 2011, the New York Times reported that the Committee had, “already
changed its name once during its two-month existence and one prominent board member,
Richard D. Parsons, the chairman of Citigroup, has already resigned.”

The January 7 report continued:

9
“Cuomo Gains an Ally for a Looming Fight With the Public-Employee Unions.” Charles V. Bagli. December 9, 2010. New
York Times. www.nytimes.com/2010/12/10/nyregion/10unions.html
10
“Group Takes On Albany With Cuomo’s Blessing” Nicholas Confessore and Thomas Kaplan. New York Times. January
17, 2011. www.nytimes.com/2011/01/18/nyregion/18cuomo.html
11
“Group Takes On Albany With Cuomo’s Blessing” Nicholas Confessore and Thomas Kaplan. New York Times. January
17, 2011. www.nytimes.com/2011/01/18/nyregion/18cuomo.html
12
“Business leaders fill a $10M war chest.” Daniel Massey. Crain’s New York. January 09, 2011.
www.crainsnewyork.com/article/20110109/FREE/301099968/1072#
13
“Group Takes On Albany With Cuomo’s Blessing” Nicholas Confessore and Thomas Kaplan. New York Times. January
17, 2011. www.nytimes.com/2011/01/18/nyregion/18cuomo.html
 “But the powerful real estate moguls, bankers and business executives
behind the Committee to Save New York are moving ahead and expect to
run their first television commercial early next week supporting Gov.
Andrew M. Cuomo’s campaign to oppose tax increases, reduce the size of
government and reform Medicaid and public employee pensions.” 14

A January 18, 2011 report used the campaign parlance for television commercials when it
reported that, “The Committee to Save New York will give Cuomo air cover.” In that
same article, published two weeks before the Governor’s budget was formally proposed,
Mr. Cuomo was quoted as saying the week before that, "On the issue of the budget, [the
Committee] are supportive of my position and they are advocating my position."15

As early as January 9, 2011, the Committee had reached its stated goal of raising $10
million, with Crain’s New York reporting that, “The group now seeks millions more.”
The article continued:

“Everybody wants to get together to promote the reform agenda of Gov.

Cuomo,” said Kenneth Adams, president of the Business Council of New
York State. “We're building a war chest to have the resources so we can
do advertising and communicate this message across the state that these
reforms have to happen now.”16

How the original millions, or any additional millions since January 9, were raised
remains largely obscured. Rob Speyer, of Tishman Speyer Real Estate, reportedly “took
the lead in fund-raising, with his firm pledging $1 million. The Durst real estate family
provided $200,000 and Stephen M. Ross, chairman of the Related Companies,
contributed an amount somewhere in between.”17 Developer Larry Silverstein has
contributed an “undisclosed amount.”18

Following the release of the Executive budget, The Journal News Albany Watch reported
that a new television ad was being planned. The report quoted Committee board member
Sandra Parker advancing the “air cover” euphemism and the “war chest” analogy used by
Mr. Adams -- who has since been appointed by Governor Cuomo as President and CEO
of NYS Empire State Development Corporation -- by stating that the Governor was
entering the budget fight “with some good suit of armor” thanks to the Committee’s
efforts.19

14
“Business Group Prepares Plans to Counter Unions.” Charles V. Bagli. New York Times. January 7, 2011
www.nytimes.com/2011/01/08/nyregion/08save.html
15
“The governor’s lobby: Business leaders (and others) form a committee to save Cuomo.” Jimmy Vielkind. January 18,
2011. Capital New York. www.capitalnewyork.com/article/culture/2011/01/1178882/governors-lobby-business-leaders-
and-others-form-committee-save-cuom
16
“Business leaders fill a $10M war chest.” Daniel Massey. Crain’s New York. January 09, 2011.
www.crainsnewyork.com/article/20110109/FREE/301099968/1072#
17
“Business Group Prepares Plans to Counter Unions.” Charles V. Bagli. New York Times. January 7, 2011
www.nytimes.com/2011/01/08/nyregion/08save.html
18
“Business leaders fill a $10M war chest.” Daniel Massey. Crain’s New York. January 09, 2011.
www.crainsnewyork.com/article/20110109/FREE/301099968/1072#
19
“Save New York Plans New Ad.” Nick Reisman. The Journal News Albany Watch. February 3, 2011.
http://statepolitics.lohudblogs.com/2011/02/03/save-new-york-plans-new-ad/
And the Committee’s expenditures are not limited to television.

As of January 28, 2011 Capitol Confidential reported that the Committee was conducting
door-to-door canvassing in at least one New York town with the message of, “I support
Governor Cuomo’s plan to help New York families and fix a broken Albany.”20 (Also see
Appendix A.)

On February 7, 2011, Albany Watch provided addition background:

The committee used a two-pronged approach last week in the wake of the
governor’s budget presentation. They used canvassers to go on a door-to-
door campaign and used a phone bank to call voters to query them on their
support for the budget plan… “We’re going door to door in some areas. In
some areas we’re doing phone banks. So we have a mixed outreach. Last
week it would have certainly included the governor’s budget,” [Bill]
Cunningham said. 21

Through door-to-door canvassing, phone banking, and television ads, the Committee to
Save New York is explicitly backing Mr. Cuomo’s budget proposal. The Committee is
backing the governor’s proposals to the extent that Mr. Cuomo stated with confidence --
weeks before releasing the proposal itself -- that the Committee was “supportive of my
position and they are advocating my position.”

The Committee did not file a timely and complete registration form, failing to
comply with CPI rules

The “Committee to Save New York, Inc.” filed its initial registration papers with New
York State through the Department of State on November 18, 2010, sixteen days after
Governor Andrew Cuomo was elected. It was established, originally under the name
“Restoring the Empire State, Inc.,” as a Domestic Not-for-Profit Corporation, listing
Tishman Speyer’s General Counsel as its primary contact.22

On December 9, 2010, the New York Times reported that the Committee was, “asking
executives and companies to pledge money, to finance a campaign of advertising and
advocacy to counter the kind of advertising campaign that unions have used effectively to
blunt previous cost-cutting attempts by governors.” The Times reported that, “The

20
“Save NY’s next steps: door hangers” Jimmy Vielkind. Albany Times Union Capitol Confidential. January 28, 2011.
http://blog.timesunion.com/capitol/archives/55113/save-nys-next-steps-door-knockers/
21
“Save New York Gears Up Grassroots Efforts.” Nick Reisman. The Journal News Albany Watch. February 7, 2011.
http://statepolitics.lohudblogs.com/2011/02/07/save-new-york-gears-up-grassroots-efforts/
22
NYS Department of State, Division of Corporations, Entity Information.
http://appext9.dos.state.ny.us/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=4013952&p_corpid=4021
158&p_entity_name=committee%20to%20save%20new%20york&p_name_type=A&p_search_type=BEGINS&p_srch_res
ults_page=0
committee is soliciting pledges of financing. Tishman Speyer has said it will donate $1
million.”23

The New York State Lobbying Law requires “those persons who have been retained,
employed or designated as lobbyist” that “expend, incur or receive” more than “five
thousand dollars on reportable compensation” to file a “statement of registration for each
biennial period.”24

Those requirements for the biennial statements are laid out at Section 1-e(a)(4):

Such biennial filings shall be completed on or before January first of the

first year of a biennial cycle commencing in calendar year two thousand
five and thereafter, by those persons who have been retained, employed or
designated as lobbyist on or before December fifteenth of the previous
calendar year and who reasonably anticipate that in the coming year they
will expend, incur or receive combined reportable compensation and
expenses in an amount in excess of two thousand dollars in years prior to
calendar year two thousand six and five thousand dollars commencing in
two thousand six; for those lobbyists retained, employed or designated
after the previous December fifteenth, and for those lobbyists who
subsequent to their retainer, employment or designation reasonably
anticipate combined reportable compensation and expenses in excess of
such amount, such filing must be completed within fifteen days thereafter,
but in no event later than ten days after the actual incurring or receiving of
such reportable compensation and expenses.

In an effort to not only raise but also to spend million of dollars on a public information
and campaign directly related to the governor and his budget, and with $1 million already
on-hand, it seems reasonable to anticipate that it would cost more than $5,000 in staff
time, particularly for some of the well-heeled consultants and communications experts
enrolled by the Committee.

We need not point out that when the New York Times article appeared on
December 9, 2010 discussing the formation of the Committee, it was, in fact, before
December 15, 2010. If it was “reasonable” to anticipate costs grater than $5,000 to
both raise and to spend million of dollars -- which, in fact, it does seem reasonable –
it should also be reasonable to expect that the Committee should have registered by
January 2, 2011. It did not.

And even if the Committee technically did not need to register by January 2, 2011, it
would have certainly been required to register by January 29, 2011 -- fifteen days
after it announced it had retained a lobbyist -- a requirement the Committee clearly
failed to meet.

23
“Cuomo Gains an Ally for a Looming Fight With the Public-Employee Unions.” Charles V. Bagli. December 9, 2010.
New York Times. www.nytimes.com/2010/12/10/nyregion/10unions.html
24
At 1-e(a)(3)
On January 14, 2011, Capitol Confidential reported that the Committee “had retained
Allison Lee, a lobbyist at his firm DKC’s lobbying operation.”25 Just a few days later,
following public criticism that the multi-million dollar Committee had yet to register as a
lobbyist with the Commission, Mr. Cunningham stated, “We have always said we would
comply with all of the rules, and we’re in the process of getting filed. We would have
[registered] yesterday, except for the holiday. We were talking about it last week. Today,
is the first day back.”26

If the Committee had retained Ms. Lee on or before January 14, 2011, it should have
registered with the Commission by January 29, 2011. The Committee’s registration,
however, was submitted on letterhead dated January 31, 2011 and it was not stamped as
received by the Commission until February 3, 2011 (see attached registration form). In
addition, the Committee’s registration states that it “does not have any employees and
therefore does not employ any individual lobbyists.” While the Committee itself may not
have employees or lobbyists, it had already publicly stated that it had retained Ms Lee, a
lobbyist at DKC.

The Committee to Save New York failed to file a timely and complete registration form.

On the registration letter dated January 31, 2011, the entity had registered with the state
Commission on Public Integrity as “COMMITTEE TO SAVE NEW YORK, INC.”
listing its contact information as "C/O ODMD, 60 EAST 42ND STREET - 36TH
FLOOR, NEW YORK, NY 10165, 212-593-9428”. ODMD appears to be O’Connor
Davies Munns & Dobbins, LLP, is a law firm specializing in tax law and, its website
states, ODMD is “one of the largest accounting and consulting firms in the New York tri-
state area and nationally with more than 200 professionals on staff.”27

CSNY should list Governor Andrew Cuomo and the Governor’s contact
information on its lobbying registration as a third party on whose behalf it is
lobbying

It is quite clear that the Committee is lobbying on specific proposals before the legislature
put forth by Mr. Cuomo, including the 2011-2012 Appropriation Bills, which include:
* State Operations Bill (S. 2800/ A. 4000)
* Legislature & Judiciary Bill (S. 2801/ A. 4001)
* State Debt Service Bill (S. 2802/ A. 4002)
* Aid to Localities Bill (S. 2803/ A. 4003)
* Capital Projects Bill (S. 2804/ A. 4004)

25
“Committee to Save NY retains Lee, reveals board.” Jimmy Vielkind. Albany Times Union capitol Confidential. January
14, 2011. http://blog.timesunion.com/capitol/archives/53544/committee-to-save-ny-retains-lee-names-board/
26
“Committee To Save NY Registering As A Lobbying Group.” Liz Benjamin. YNN’s State of Politics. January 18, 2011.
www.capitaltonight.com/2011/01/committee-to-save-ny-registering-as-a-lobbying-group/
27
O’Connor Davies Munns & Dobbins, LLP. Available at: http://www.odmd.com/aboutus.html
In addition to listing budget-related proposals, the Committee should be required to list
Mr. Cuomo as a third party entity on whose behalf the Committee is lobbying.

The form that the Commission requires registered lobbyists to complete states that if a
"client has retained, employed or designated the lobbyist... to lobby on a third party's
behalf, complete the third parties name address and phone number (on the statement of
registration).”

As we have outlined above, the Committee is acting at the request of and to benefit of
the governor. The Committee’s registration should list the Governor, the
Governor’s address and his phone number on the statement of registration.

Conclusion

The Committee to Save New York is a registered lobbyist that plans to raise up to and
perhaps more than $10 million support of Governor Andrew Cuomo’s budget proposal
throughout the first few months of 2011.

We believe the Committee to Save New York -- which is inextricably linked to the
Governor’s office through personal and professional relationships, which was established
at the “urging” of the governor himself, which has reportedly raised more than ten
million dollars ($10,000,000) to spend on television advertisements in explicit support of
the Governor’s budget proposals that are currently before the state legislature, which, we
outline below, did not register as a lobbyist with the Commission in a manner compliant
with the Commission’s rules and the State Lobbying Act, and which should be expected
to first report on those expenditures by the March 15, 2011 bi-monthly reporting deadline
-- should be required to list Governor Cuomo on its lobbying registration as a third
party on whose behalf it is lobbying.

We urge the Commission on Public Integrity to investigate both the Committee’s possible
non-compliance regarding its annual registration, as well as potential non-compliance by
not listing Governor Cuomo as a third party on whose behalf the Committee is lobbying.

For future correspondence regarding this matter, please reach out to Chris Keeley at
ChrisNYSA@gmail.com or 917-847-3625 as the primary contact.

Sincerely,

Sean Barry
Community Voices Heard Executive Director
VOCAL-NY
 APPENDIX A

This is an image of the registration form submitted to the NYS Commission on Public
Integrity by The Committee to Save New York, dated January 31, 2011 and stamped
“RECEIVED” on February 3, 2011. The registration form needed to be submitted by
January 30, 2011, which would have been 15 days after a Committee spokesman
announced they had retained a lobbyist (Allison Lee of DKC). The lobbyist is not
included on this registration letter, nor is she listed on the Commission on Public
Integrity’s website in relation to the Committee.