VIA FAX to (518) 408-3975 March 14, 2012 Theresa A.

Schillaci NYS Joint Commission on Public Ethics 540 Broadway Albany, New York 12207 Re: Investigation of the Committee to Save New York & Governor Cuomo Dear Ms. Schillaci: We write in reference to our complaint dated February 16, 2011, which was originally submitted to your predecessor entity, the Commission on Public Integrity (CPI). We know the CPI has since been dissolved and the NYS Joint Commission on Public Ethics has taken over much of its responsibilities so we write to ensure this complaint did not get lost in that transition. The complaint is attached below and available online at www.scribd.com/doc/48976762/Cpi-Letter-Feb-2011-Final. Due to the an increasing amount of public advocacy being undertaken by the Committee to Save New York, including millions of dollars in television advertisements leading into the final days of the 2012 budget negotiations, we write to request an update regarding the status of our original complaint. It is particularly vital to understand this relationship as the Committee to Save New York files its first bi-monthly lobbying disclosure information for 2012. We outlined our concerns in our original February 2011 complaint, which is attached below for your convenience. Our concerns then, as they are now, include: 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. … 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. … 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. The Committee to Save New York continues to spend a massive amount of money to influence the state budget debates but we have no clearer understanding today as to the Committee’s relationship to the Governor’s office than we had in February 2011 when we filed our initial complaint. For these reasons we request an update on the status of our complaint. 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,

Community Voices Heard

Sean Barry Executive Director VOCAL-NY

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-leadersand-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-leadersand-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:
“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
9

“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-leadersand-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-todoor 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.
“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)
23

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 tristate 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/ “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
26

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,

Community Voices Heard

Sean Barry 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.