Jay S. Jacobs

May 15th, 2014

To the Members of the NYS Democratic State Committee and County Chairs:

In a week, the State Committee meets to nominate our candidates for statewide office in the upcoming election. With a sense of real accomplishment and pride we will re-nominate for Governor along with the rest of an outstanding statewide ticket. As we do so, we set forth to the voters of State the best of what we have to offer along with the best of what we, as a Party, represent.

As I am sure that you know, for some time I have advocated that both the Republican AND Democratic candidates for Governor reject the nomination of the Independence Party. Without either candidate they are likely to fail in obtaining the 50,000 votes required to provide them with “permanent party status” for the next four years. The presumptive Republican candidate, though unlikely to ever receive their nomination, has already agreed to forego it.

The Conservative Party and the have called on both can-didates to forgo the Independence line. The Progressive Caucus along with numerous good government groups has as well. In addition, the Editorial Boards of EVERY MAJOR DOWNSTATE NEWSPAPER agree: Newsday, the NY POST, DAILY NEWS and have all called on both candidates for Governor to forgo the line.

The Independence Party is a statewide problem. They stand for nothing. They are committed to ensuring a PERMANENT REPUBLICAN STATE SENATE strictly for their own patronage and other financial benefits. They are involved in a continuous pattern of notorious and corrupt activities from Suffolk County to Erie County. There is no argument or disagreement on one thing: they are a stain on the New York political system that needs to be removed.

Their attraction for our candidates is the perceived votes that they bring. Our candidate for governor will win this year with or without the Independence line. Along with you, he has my support, regardless. The question is whether or not, once again in politics, expediency will trump doing what is right.

We, as a Party, cannot be FOR ethics in government, AGAINST political corruption and turn a blind eye to the corrupt statewide activities of the entire leadership of the Independence Party. What we overlook, we condone. Associating OUR party’s line with theirs will be a stain upon us. It is certainly not the best of what WE stand for.

I urge you to read the Report that is enclosed and copies of SOME of the editorials I have referenced. I look forward to seeing you on next week.

Jay Jacobs Chairman, Nassau County Democratic Committee Member At Large, Democratic National Committee Former NYS Democratic Chairman

Report on the Nefarious Activities of The NYS Independence Party Overview The NYS Independence Party exists neither to support nor oppose any issue, philosophy or political agenda. It exists solely for the benefit of its leadership. Its power is derived from its status as a “permanent” party with a line (Row E) on the election ballot in every major race in the state. It uses that line, and the desire of both Democratic and Republican candidates for its endorsement, to leverage its transactional agenda to enrich and empower its party’s leadership. In New York State, one of a handful that permits “fusion voting” which allows candidates for office to run on multiple lines, that “permanent” line status is granted every four years to any party that obtains at least 50,000 votes on its line and candidate for governor. The Party, run almost single-handedly by its Chairman, Frank MacKay, has a corrosive effect on the political and governing processes statewide. With candidates and elected officials, who are at times desperate in their attempts to gain access to the coveted Independence line on the ballot, wide latitude is given to party and leadership transgressions as some prosecutors and other high state officials appear to turn a “blind eye” to activities that would otherwise never be accepted. The corrupting influence of the Independence Party is not limited to one, relatively small period of time. Nor is it related to one or two questionable incidents. Neither are the nefarious activities limited to one or even two regions of our state. The activities that bring notoriety to the Independence Party are driven not by local leaders or individual candidates or elected officials. Rather, the gross transgressions of the Independence Party are being committed by its leadership, principally, Frank MacKay, on a statewide basis, continuously, over an extended period of years. The examples that follow give a taste of the activities that the Party and its leadership have been involved in:

THE MORELAND COMMISSION  Independence Party Vice Chair Tom Connolly misuse of funds- NY Post, December 4 2013, “Independent Party official ‘misused’ funds: report,” Daily News, March 4 2013, “Independence Party goes along with GOP scheme to dodge campaign finance laws, insiders agree”

“One example drawn from the Commission’s investigation exemplifies the misuse of party housekeeping accounts. During the 2012 election, the Senate Republican Housekeeping Account made a series of three transfers to the Independence Party Housekeeping Account, totaling over $350,000. Invoices and communications produced to the Commission reveal that much of this money was then spent by the Independence Party on negative television advertisements, such as . . . one . . . attacking Democratic Senator Terry Gibson, who was then locked in a tight race with a Republican challenger. Emails further reveal extensive coordination between the two parties’ housekeeping accounts on attack mailers in several senate races. In one thread, Tom Connolly, the vice chairman of the Independence Party, commenting on a proof of an attack mailer portraying Democratic Senate candidate Joseph Addabbo as Dracula, asked “is this ours? Don’t know anything about it.” Scott Stevens, the Director of Operations for the Senate Republican housekeeping account replied, “It’s ours but they would like it to go through IDP [Independence Party].” To this, the Independence Party representative responded: “Absolutely ok to go with us.”” Moreland Commission report pages 38-39. Within days of the Republicans winning control of the Senate, in late 2012, Tom Connolly received a $75,000 a year position with the office of State Senator Philip Boyle (R-Islip). NY Post, March 10th, 2013 –“Indie Big Nabs Sweet New Gig.

New York City  John Haggerty uses $ 750,000 of Mayor Bloomberg’s money to buy a house with help from State Independence Party- NY Post, June 14 2010, “Haggerty charged with Swiping Bloomberg’s $ 1 Million,” NY Post, October 6 2011, “Independence Big Slaps Haggerty,” New York Daily News, March 20 2013, “Rep. Political Operative John Haggerty to begin prison sentence,”

Haggerty, a Bloomberg campaign advisor, was in charge of a supposed Election Day poll-watching operation that Mayor Bloomberg had contracted for with the Independence Party for sending $ 1.2 million. Haggerty never spent any of the funds, and, in fact, received the bulk of the $ 750,000 months after the election. Four days later, Haggerty used $ 550,000 to buy his brother’s share of a $ 1.8 million house in Queens. Prosecutors successfully sued the Independence Party to freeze the unspent Bloomberg donation arguing that the Party should have known where that money was going. Tom Connolly, the Vice Chair, admitted that once the Mayor made the donation to the Party, he lost all control over the money’s use. Haggerty was sentenced to 1 1/3- 4 years in prison in 2011.

Staten Island  $ 10,000 loan given to MacKay’s wife for ballot position- New York Post, July 20 2010, “Indy Party chief in jam over wife loan,” Daily News, July 23 2010, “Probe opened by Staten Island of Independence Party’s $ 10G loan in exchange for City Council nod”

John Tabacco, a candidate running for a Staten Island City Council seat, gave a $ 10,000 loan to Kristen MacKay’s, Frank MacKay’s wife, firm, Government Response Inc. (GRI). Days after the loan, to Tabacco’s surprise he received the endorsement from MacKay’s Independence Party.

Manhattan  Another $ 40,000 given to MacKay’s wife- NY Post, July 25 2010, “Party for Sale,” NY Post, July 19 2010, “Dem has an Indie pay pal”

Manhattan Borough President and future City Comptroller Scott Stringer paid more than $ 40,000 in taxpayer funds to Kristin MacKay’s firm, GRI Inc. The article also notes that her firm was given a contract by the Republican State Senate Campaign Committee, just as the Independence Party, and husband Frank MacKay, were forming an alliance with the Republicans.

Westchester County  Controversies in Westchester County Independence Party- Newsday, June 5 2013, “A price for Independence nod in Westchester County,” Politics on the Hudson, November 29 2013, “Westchester Independence Party defends efforts to disenroll members”

Westchester Chair and State Vice Chair Giulio Cavallo did not back Westchester County Executive Rob Astorino in his reelection bid because, according to Astorino, he did not give jobs to Party members that Cavallo recommended back in 2009. Cavallo and the county party initiated disenrollment proceedings against over 4,000 members for allegedly backing Astorino.

Nassau County  Gary Melius orders arrest of witness in case against third-party candidate- Newsday, October 8 2013, “Witness against Hardwick calls arrest intimidation” Melius, the owner of a hotel and catering facility known as Oheka Castle, is an unofficial leader of the Nassau Independence Party. He employs the Chair, Rick Bellando (father of Melius’ grandchildren) who was appointed to the position by MacKay at the request of Melius. Oheka Castle is listed as an Independence Party address and it is the location for many meetings, fundraisers and candidate screenings. Oheka is also the venue for weekly “dinner and cigar” private invitation-only dinners hosted by Melius, frequented by top elected officials and law enforcement officers, Bellando and often, Frank MacKay. In addition, County Executive Ed Mangano and first deputy, Rob Walker, were frequent and regular guests. Melius was recently wounded by a gunshot to the head in a mob-style shooting on the grounds of Oheka Castle. In October of 2013, during a hotly contested race for County Executive, Melius called Nassau Police Commissioner Thomas Dale and requested the arrest of Randy White, a witness in a case to have a minor- party candidate, Andrew Hardwick, removed from the ballot for County Executive on the grounds of fraud. Melius was virtually the only contributor to that candidate’s campaign. White was arrested, strip- searched and cavity searched twice as well as threatened. Ultimately, Hardwick was removed from the ballot on the basis of pervasive fraud. The DA’s Chief of Investigations, Chuck Ribando, a regular and consistent guest at Melius’ “dinner and cigar” evenings held his daughter’s wedding at Oheka Castle in April of 2012. He was put in charge of the investigation by the DA, Kathleen Rice. Ultimately, Commissioner Dale and the Chief of Detectives were forced to resign after a report issued by the District Attorney revealed the activities of Melius and Dale. However, in spite of clear evidence of witness intimidation, no criminal charges were sought by the District Attorney.  Gary Melius firm got $655G in Sandy pact – Newsday, March 8, 2014. “A firm controlled by Oheka Castle owner Gary Melius, who survived a shooting at the facility late last month, received a $655,000 contract from Nassau County to handle superstorm Sandy-related debris removal on the day the storm hit, records show.”

“During and after Sandy, the county authorized emergency purchases orders for 12 companies including ArchCon (Melius’ company), to do debris removal and hauling for the county.” “Until Sandy hit, computerized records dating to 2000 show that ArchCon had never received a county payment.” Records show that while ArchCon submitted the invoices and received payment, all of the work was actually done by another firm, Longo, Inc.  Nassau Shouldn’t Buy Political Friend’s Land in Freeport – Newsday Editorial, May 17th, 2012. “When Nassau County set the taxable value on the four-acre Brooklyn Water Works site in Freeport, it came up with just over $2 million. But if the Nassau County Legislature votes Monday to buy the parcel back from businessman Gary Melius, it will pay $6.2 million. That’s a nice profit; Melius purchased the land from the county for $1.4 million in 1986.

“The owner of Oheka Castle in Huntington, where political fundraisers have been held for Nassau Executive Edward Mangano, Melius is a developer whose legendary poker games host a who’s who of local power brokers. He’s also said to be a force behind the Nassau County Independence Party, whose ballot line is prized for the decisive votes it can carry, though Melius says he has no official role in the party.” The Legislature voted to approve the deal which was presented and signed by Ed Mangano.  Financial filings with the State Board of Elections reveal that in the two year period from January 2012 through January 2014, which coincided with MacKay and Melius taking full control of the Nassau County Independence Party, MacKay, Melius and Bellando took over 80% of $183,577 spent by the Party for themselves. Melius and Oheka Castle accounted for a full 63% of the monies taken. Only 3.45% of the monies spent went to any type of political activity.

Suffolk County  Links to Suffolk Supreme Court Judge Thomas Whelan- Newsday, March 1 2014, “Judge has personal, political links to Melius ally,”

Supreme Court Judge Thomas Whelan, longtime advisor, political benefactor, and godfather of Frank MacKay’s daughter, ruled in a case that involved Gary Melius and his attempt to take over most of the shareholdings of Interceptor Ignition Interlocks, a company that makes ignition locking devices meant to prevent drunk driving. Judge Whelan, a current member of the Independence Party, forced John Ruocco, founder of the company, to hold a shareholder’s meeting at which Melius attempted to appoint MacKay on the company’s board of directors. Whelan’s rule also awarded Melius 3.5 million shares, effectively wiping out Ruocco’s control of the company. Melius acquired stock initially from the company’s founder, John Ruocco, in exchange for Melius’ pledge “to get laws passed that would help Interceptor win public contracts. According to the agreement, Melius would get 2.8 million shares in Interceptor in exchange for the ‘enactment or amendment of laws’ that would require use of the technology that Interceptor could provide.” Melius is not a registered lobbyist.

Erie & Columbia Counties  State Independence Party dissolved county parties- Politics NY, February 10 2013, “Mary Rose, gone after short run, local Independence Party bigwigs crash and burn,” Register-Star, August 26 2012, “State Independence Party strikes at local chairman”

MacKay dissolved the Erie County Independence Party after disagreements on who controlled the right to authorize candidates to run on the county line. He took away the Columbia Independence Party’s right to endorse local candidates after its chair, John Miller, endorsed a different candidate for state senate.

State-wide  $ 17,876 given to company with ties to MacKay’s wife- NY Post, July 22 2010, “Indy Party’s tangled Web of deals with the missis”

The Independence Party shelled out $ 17,876 to four entities that have strong connections with MacKay’s wife, Kristen. Gentile Software and owner Gene Gentile were paid $ 11,517 of that money to handle its website and other social networking sites. Gentile has close ties with Kristen MacKay.  $ 10,000+ given to former Suffolk Vice Chair- NY Post, July 25 2010, “Party for Sale,” Newsday, March 27 2014, “Anthony Manetta to step down as chief of Suffolk IDA”

GOP State Comptroller candidate Harry Wilson earned the backing of the Independence Party in 2010. Less than a week later, he paid $ 10,000 to hire a firm whose partners include Anthony Manetta (former Vice Chair of the Suffolk County Independence Party, headed by State Chair Frank MacKay). He continued paying the firm, Roosevelt Strategies Group, throughout the campaign, which totaled to about $ 57,000. Manetta was also a former partner in MacKay’s wife’s company, GRI Inc. Additionally, Manetta was appointed the executive director of the Suffolk Industrial Development Agency in 2012 earning $ 155,000 per year. He stepped down in March 2014. Roosevelt Strategies Group was also paid $116,000 by the State Independence Party during the six years from January 2008 through January 2014.  A six-year analysis of multiple Independence Party campaign accounts reveals that Chairman Frank MacKay and several other top Party leaders have taken over $1.5 million out of the Independence Party. On its own, the Party raised little more than $1.1 million, with its coffers augmented by $5.8 million in “pass through” money – moneys transferred to the Party from other candidates and campaign committees that are directed toward specific uses for the benefit of specific campaigns.

 Editorial boards, Democratic leaders urge gubernatorial candidates to refuse Independence Party backing- NY Daily News, March 15 2014, “End the shame, gov.,” NY Post, March 16 2014, “Rob’s declaration of independence,” Newsday, March 6 2014, “Kick the Independence Party off the Ballot”

The Daily News cites a survey where of 200 New Yorkers who had signed up as Independence Party members, 85% disavowed all knowledge of the party. The paper also interviewed 100 registered members who were listed as members of the party’s governing committee. 64 of the 100 were surprised they were on the panels and 23 reported as having no affiliation with the party at all. Conclusion It is clear that the Independence Party serves no positive, useful purpose in the political process of New York State. It believes in nothing and advocates for nothing. It is a transactional entity that exists for the financial and influential benefit of Frank MacKay and a handful of other official and unofficial leaders. It weaves a complex web of financial and political interactions that undermine both the real and perceived legitimacy of our political process. One cannot be FOR reform and FOR ethics and in anyway, directly or indirectly, associate with the leadership, activities and/or ballot line of the Independence Party. To add one’s name to the Independence line requires a candidate, at the very least, to turn a “blind eye” to its long pattern of consistent nefarious activities and self-dealing. Doing so, makes those candidates complicit in the unethical and, very possibly, illegal activities of the Party whose name they have attached their own. Every candidate, every elected official, party leaders from all legitimate parties in the state need to decide: are you FOR reform and ethics or against it? There is no in-between.

Jay Jacobs

April 14th, 2014

Independent of the Independence Party Editorial Board: May 6, 2014

New York’s Independence Party survives on confusion. Many who sign up with the party think they are registering as independent voters, unaffiliated with any party. Instead they are unwittingly contributing their names to a bizarre and fractious political group that endorses candidates from the two major parties. The Independence Party should lose its prime place on the state ballot, and Gov. Andrew Cuomo could make that happen by rejecting its endorsement this year.

Rob Astorino, a Westchester County Republican running in the governor’s race this year, has said he will not seek or accept the Independence Party nod. Mr. Cuomo should now do the same. Any party needs 50,000 votes or more in a governor’s race to stay on state ballots for the next four years. The Independence Party would certainly reach that critical number if the Cuomo or Astorino name is on its line.

Mr. Astorino, who once courted Independence Party leaders to help him win as county executive in Westchester, has finally decided the party is “part of a very corrupt system. They don’t stand for a thing other than jobs and for themselves.” The party has been very good at getting candidates like former Mayor Michael Bloomberg to donate money and run under the Independence Party banner. But its ideals are confused, at best.

The Daily News in 2012 interviewed 200 New Yorkers who signed up as Independence Party voters and found that 169 of them thought they were not joining any party at all. Mr. Cuomo could end this charade. If he refuses to allow his name on the Independence Party line, the party could disappear.

New York’s voting system, which allows a candidate’s name to appear on several party lines on the ballot, is archaic and confusing. Last year, Mr. Cuomo proposed repealing the 1947 law that allows minor parties to give their ballot lines to nonparty members — usually candidates running in the two major parties.

At the time, he said the system encourages “corruption and the appearance of corruption.” He was right, but he did not champion reform aggressively. He could help end this bad practice by saying no to the Independence Party line this year.

Kick the Independence Party off the Ballot Editorial Board: March 6, 2014

The chairman of New York's Independence Party insisted that its screening for congressional candidates at Oheka Castle go on as planned, just five days after a hit man tried to kill Gary Melius, the owner of the Gold Coast estate and a broker for the party's endorsements.

"It's business as usual," said party chairman Frank MacKay. Business as usual for the Independence Party must end.

Even before the shooting, this very minor party with outsized influence, especially with the state's judiciary, was on the ropes. The party, which was formed in 1994 with a kernel of an idea for election reform, was heavily criticized in December for campaign financing improprieties in the 2012 elections. The criticism came from a state Moreland Commission investigating public corruption.

The latest campaign finance disclosures show that 80 percent of the money the party raised in the past two years went to Oheka for fundraisers, to MacKay, or to Rick Bellando, the Oheka banquet manager who also is father of Melius' grandchildren. Now as rocks are overturned in the search for clues to the Feb. 24 Melius shooting, the ugly connections between the party and the goings-on at the castle will get more exposure.

Suffolk District Attorney Thomas Spota is scouring the victim's business dealings in a search for suspects and motives. Meanwhile, the office of the U.S. attorney for the Eastern District has been asked to review Melius' role in getting former Nassau Police Commissioner Thomas Dale to arrest a campaign worker, Randy White, in an effort to help County Executive Edward Mangano get re-elected. It should.

Newsday reported Sunday on another troubling incident involving Melius and MacKay that, at best, can be described as an unsavory coincidence in which a judge closely connected with MacKay delivered a ruling very favorable to Melius. It should prompt investigators to take an even closer look at MacKay's perceived clout with the judiciary, including involvement in the selection of supervisory judges and other plum assignments that bring jobs and fees.

With these unfolding investigations, why would any candidate accept the Independence Party's stamp of approval this year? The first to walk away from the stench was Nassau District Attorney Kathleen Rice, a Democrat running for Congress. Rice should know; her office's investigation of the Dale affair ended with the commissioner's resignation, but prompted criticism, including the call for a federal investigation to determine whether the trail led back to Mangano.

The Independence Party and other minor parties can be eliminated once and for all this year. New York's quirky election laws give an automatic ballot line for the next four years to any party getting 50,000 votes in a gubernatorial contest. Unlike in most states, however, the laws also permit endorsements of candidates by more than one party. So the minor parties parasitically survive by giving their lines to mainstream candidates in state races. Yet Albany refuses to ban cross-endorsements and most candidates are reluctant to turn down these ballot lines because they yield votes -- mostly from voters disenchanted with Democrats or Republicans. Unlike with the other minor parties -- the Working Families and Conservative parties, for example -- some voters mistakenly think the Independence label means it is not an organized party.

Both of the candidates on the major party lines -- incumbent Andrew M. Cuomo on the Democratic line and, most likely, Westchester County Executive Rob Astorino on the Republican ticket -- should stop the charade by refusing the party's embrace.

Progressives Do Not Want Gov. Cuomo to Run for Re-election on the Independence Party Line Cuomo has not yet said whether he will accept Independence Party backing, but the head of the Nassau Democrats has been running a dogged campaign to convince him to forgo it. Celeste Katz: May 7, 2014

The progressive wing of the state Democratic Party doesn't want Gov. Cuomo to run for re-election on the Independence Party line — and plans to tell him so at their upcoming convention.

"You cannot be for ethics and good government and then turn a blind eye to the corrupt practices of [the Independence] party. Those two things just do not go together," Jay Jacobs, head of the Nassau Democrats, told the Daily News.

If the Independence Party doesn't garner 50,000 votes for whichever candidate it backs for governor, it will lose its right to an automatic spot on the ballot.

If Cuomo is on the party’s ballot line, it would almost certainly reach that number.

Cuomo has not yet said whether he'll accept Independence Party backing, but Jacobs, a former chair of the state party, has been running a dogged campaign to convince him to forgo it.

Repeated attempts to contact Independence Party Chairman Frank MacKay were unsuccessful, but he's dismissed Jacobs’ quest as a temper tantrum in the past.

Cuomo's Republican challenger, Westchester County Executive Rob Astorino, has already sworn off the Independence line, calling the party "corrupt," and urged Cuomo to do the same.

Astorino's pronouncement quickly generated accusations of hypocrisy from the Westchester Democrats, who noted his history of making personal donations to the party and soliciting its support in past campaigns.

Jacobs, who has accused the Independence Party of being little more than a source of income for MacKay and his cronies, this week also filed a formal complaint with the state Board of Elections.

Writing in his role as Nassau County chairman, Jacobs outlined more than $270,000 in "alleged" Independence Party salary payments between 2009 and 2013 that don't specify who received the money.

"The failure to itemize those payments prevents public scrutiny, which is integral to maintaining accountability in the electoral process," Jacobs wrote in the May 5 complaint, based on an examination of the party’s financial filings with the state.