20141117-NEWS--0001-NAT-CCI-CN_-- 11/14/2014 7:20 PM Page 1 IN THE BOROUGHS Choco-preneurs sweeten Brooklyn scene mike grippi CRAIN’S® NEW YORK BUSINESS PAGE 3 VOL. XXX, NO. 46 WWW.CRAINSNEWYORK.COM NOVEMBER 17-23, 2014 PRICE: $3.00 The TransPerfect Storm NovemberNovemberNovember 17, 17, 17,2014 2014 2014 Outside, a corporate success. Inside, two co-founders at war. Warning: multiple F-bombs ahead BY AARON ELSTEIN CONFOUNDED CO-FOUNDERS: Few feel-good business stories felt better than that of Elizabeth Elting TransPerfect’s Philip Shawe and and Philip Shawe, two young entrepreneurs who more than 20 years ago Elizabeth Elting viciously fought via “cursey and miserable” launched a translation service from a New York University dorm room, emails, as a state judge got engaged and built a global business.Today,their company,TransPer- described their missives. fect, translates documents for more than 300 corporate clients ranging from American Airlines to Wal-Mart. It does so with the help of 3,700 employees in 30 countries, and last year generated more than $400 million in revenue.It is a regular in Crain’s ranking of the New York area’s largest privately held companies, this year landing at No. 59. But now, Ms. Elting and Mr. Shawe, who broke off their en- gagement in 1997 and split ownership of their business 50-50, are going through a vicious and public commercial divorce.They are su- ing each other for malfeasance and mismanagement, and each wants the other thrown out of the company. The parties have asked a judge to break the deadlock, and a hearing is scheduled for Nov. 18. See TRANSPERFECT on Page 25 THE LIST NY AREA’S LARGEST PRIVATELY HELD COMPANIES composite: buck ennis/istock Tory Burch, Bloomberg LP and 148 other big local businesses in private hands PAGE 14 S ’ CRAIN A surplus of attention as line forms for state’s extra cash Interest groups seek groups are lining up for handouts. $15 billion hole in its capital plan. He promised to spend the mon- BY ANDREW J. HAWKINS At stake is the state’s unprece- In a September speech before the ey “prudently”on “one-shot”invest- pieces of $5.1B pot, dented $5.1 billion budget windfall, Business Council of New York ments rather than on recurring ex- The ink is barely dry on the news of most of which comes from State, Mr. Cuomo cracked penses. Mr. Cuomo has a but Cuomo has own Gov.Andrew Cuomo’s re-election, settlements with financial wise about the unexpected multibillion-dollar wish list of his ideas on spending it and already lobbyists and interest institutions. $2B surplus. own, including $1.5 billion for up- Everyone, it seems, is AMOUNT that “Four years ago, when I state economic development, $500 clamoring for a piece. education lobby started, I had a $10 billion million to encourage local govern- 46 wants added to 5 Education lobbyists want deficit, which was hard to ments to consolidate and share state school aid billions for schools. close,” the governor said. services, and $500 million for Social-service nonprofits “This year we have a $4 bil- broadband expansion.He also plans want hundreds of millions for lion surplus. I don’t know which is to use an undisclosed sum to fund homeless programs.The Metropol- going to be the worst political prob- an infrastructure bank to pay for itan Transportation Authority has a lem.” (The surplus has since grown.) See SURPLUS on Page 31 NEWSPAPER 71486 01068 0 20141117-NEWS--0002-NAT-CCI-CN_-- 11/14/2014 7:21 PM Page 1 EDITOR’S NOTE Story time FYICRAINSNEWYORK.COM As the old journalism joke goes, I have a face for radio and a voice for Is new policy best for those print. Not so my boss, Crain’s New York Business Publisher Jill Kaplan, caught with pot? who hosts so many of our Crain’s either Mayor Bill de Blasio nor public events with the ease and Police Commissioner Bill Bratton informed nature of a morning-TV favor legalizing the recreational use regular.This week, Jill becomes an N Glenn Coleman of marijuana, but in announcing last week actual TV host with the premiere that possession of up to 25 grams of the of Crain’s New York Stories at 9 p.m. drug would yield only a summons, the Monday on the city-owned television channel NYC two removed a wedge dividing law enforcement from Life. (Episodes also air Saturdays at 5 p.m. and the communities of color they police. ¶ Or so it seemed.The new policy, newscom Sundays at 9:30 a.m.) The show offers what Jill calls effective Nov. 19, means individuals caught with (but not smoking) up to the equivalent of 60 “inspirational stories of extraordinary entrepreneurs joints would no longer be handcuffed, fingerprinted and thrown in jail. Some prosecutors had in the five boroughs who have showed resiliency, already said they would not prosecute the crimes, considered low-level and disproportionately determination and perseverance.” Stories like Liz affecting communities of color.Through the first eight months of 2014, 86% of those arrested Smith-Breslin and Jeanne Jamin, co-owners of Blue were black or Hispanic, according to the Marijuana Arrest Research Project. ¶ The de Blasio Bungalow in Rockaway Park, Queens.They were administration had been signaling its intention to shift marijuana policy. Mr. Bratton even going to become sisters-in-law until Liz’s boyfriend, brandished a bag of oregano to illustrate how big a stash was and joked: “All I can think of right a Cantor Fitzgerald employee who was Jeanne’s now is pizza.” ¶ But the mayor’s allies say the policy does not go far enough. City Council brother, died on 9/11. Liz and Jeanne came together Speaker Melissa Mark-Viverito said she supports full legalization. Brooklyn District Attorney to open their business and now advocate on behalf of Kenneth Thompson voiced concerns that violators given summonses to court would not have access the Rockaway community, still battered in so many to a lawyer. Others said the race of those summoned would not be tracked, making it difficult to ways from Superstorm Sandy.There’s also gauge the policy’s impact on the communities it is intended to help. —andrew j. hawkins Colombia-born Eladia Causil-Rodriguez, a mom in Brooklyn who opened Eladia’s Kids as a safe place NAMING RIGHTS FOR SALE. Lincoln BIKE. Bicyclists talking or texting on for pre-K children after she had a baby-sitting scare. Center is seeking a donor to help with their cellphones could be fined or HOORAY! She now owns several such centers. And Sotiris its $500 million planned renovation of forced to take classes if a bill intro- FIREFIGHTERS rescued two window Avery Fisher Hall. Naming rights for duced by Brooklyn Councilman Mark washers trapped on a scaffold dangling Constantinou, who came here as a student from the theater that is home to the New Treyger advances. Accidents could outside the 69th floor of 1 World Trade Center. Cyprus, worked in a carpet store to pay his bills, and York Philharmonic could fetch $100 trigger a $50 fine. … COMMUTE COST started his own venture. Mr. Constantinou’s Carpet million or more.… LIGHT UP THE SUB- HIKE. The Metropolitan Transporta- Time will soon become the second-largest retailer WAY. The $1.4 billion Fulton Center tion Authority plans to increase the subway hub—billed as the Grand price for monthly subway cards by $4, and distributor of the product in the city. As Jill tells Central of lower Manhattan— to $116,next year.Other proposals in- me: “These individuals and others whose stories we opened after a decade of planning and clude hiking subway and bus fares 25 share are connected by a common bond—their love construction.It is topped with an ocu- cents, to $2.75, and reducing bonuses for New York City and all that it offers.They are lus,53 feet in diameter,that sends light that come from buying multiple-fare below street level. About 300,000 cards. E-ZPass rates could also in- emblematic of what you can achieve through good commuters are expected to travel crease 4%. … EBOLA-FREE NYC. Dr. OY VEY! times and bad.They are inspirational, they are through the station each day, on nine Craig Spencer,the first New Yorker to driven, and they are our Crain’s New York Stories.” subway lines.… BURY- test positive for Ebo- MAYOR BILL DE BLASIO arrived 20 ING THE HACHETTE. minutes late for a memorial for the ‘Perfick. Lets la,was declared free of passengers of American Airlines Flight After a seven-month the virus and released 587, missing the moment of silence. battle,Hachette Book do this … lets from Bellevue Hospi- THIS WEEK IN CRAIN’S Group reached a mul- tal Center. … tiyear deal with Ama- double team RECORD SETTER. IN THE BOROUGHS-------------------------- 3 zon that will allow it to them’ Christie’s raised an set the prices of its IN THE MARKETS----------------------------------4 —A chat-room auction-house record digital books. An conversation between of $852.9 million THE INSIDER ----------------------------------------------- 6 Amazon executive foreign-exchange traders, from 80 contempo- BUSINESS PEOPLE ---------------------------8 said that “financial in- whose banks agreed to pay rary art pieces led by centives” would en- $4.3 billion to settle charges Andy Warhol’s paint- ap images REAL ESTATE-------------------------------------------10 sure good deals for that they manipulated ing of Elvis Presley, NOW OPINION --------------------------------------------------------12 customers. … currency markets which sold for $82 HIRING.