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CRIMINAL COURT OF THE CITY OF NEW YORK COUNTY OF RICHMOND ~~~~~~~~~~----~~~--~~~x THE PEOPLE of the STATE of NEW YORK, COMPLAINT

Plaintiffs Dock# Charges

-v-

DAVID THOMAS, DEBI ROSE 4 CITY COUNCIL 2009, DATA&FIELD SERVICES, INC.

. DAVID JONES.

Defendants.

Grand Larceny 3rd degree, Crirninal Possession of Stolen Property in the 3rd degree, Conspiracy in the 4th degree, Offering a False Instrument for Filing in the 1st and 2nd degrees, Admin. Code Sec 3-711(3), Election Law Sec 14-126(J), Tampering with Public Records, Falsifying business records 1st and 2nd degree,

Admin. Code Sec 3-711(3), Election Law Sec. 14-126(5) Perjury in the 2nd degree (Penal Law Sec. 210.10) ~~----~~----~~--~~~~~~~-x

1)

2)

3)

5)

Grand Larceny in the 3rd Degree (David Thomas, Debi Rose 4 City Council 2009, David Jones).

Criminal possession of stolen property in the 3rd degree (David Thomas)

Conspiracy in the 4th Degree (David Thomas, Debi Rose 4 City Council 2009, Data & Field Services, Inc.).

Offering a false Instrument for filing the 1st, and 2nd Degrees (David Thomas, Debi Rose 4 City Council).

NYC Administrative Code Sec. 3-711(3) (David Thomas, Debi Rose 4 City Council 2009).

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6)

7)

8)

9)

10)

11)

Election Law Sec. 14-126(J) (David Thomas," Debi Rose 4 City Council").

Election Law Sec. 14-126 (J) (David Thomas, "Debi 4 Council 2009").

Tampering with Public Records (David Thomas, Debi Rose 4 City Council 2009).

Falsifying business records in the 1st and 2nd degree (David Thomas, Debi Rose 4 City Council 2009)

NYC Administrative Code Sec. 3-711(3) (David Thomas, Debi Rose 4 City council 2009).

Perjury in the 2nd Degree (David Thomas).

ROGER BENNET ADLER, a duly Appointed Special District Attorney,

in and for the County of Richmond pursuant to County Law Section 701 alleges:

1. At all relevant time periods beginning approximately June 2009,

Defendant DAVID THOMAS, and until his resignation on or about 2011, served as the

duly designated "Treasurer" of the "Debi Rose 4 City Council 2009" campaign located in

Richmond County. He was, accordingly the duly assigned campaign official and

candidate's designated agent to: (a) monitor, (b) control and (c) report all campaign

committee finances, (i.e. receipts and disbursements), and timely and accurately report

to the (a) New York City Campaign Finance Board (CFB): (b) State Board of Elections

(BOE) in Albany, New York.

2. At all relevant times, Deborah Rose was a candidate at the February

2009 Special Election and for the Democratic Party's ballot line in the September 2009

Primary and later, for election to the New York City Council, from the 49th Council

District in Staten Island, Richmond County.

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3. The "Friends of Debi Rose" was the title of the Deborah Rose

campaign committee during the February 2009 Special Election.

4. The "Debi Rose 4 City Council 2009" campaign committee duly

filed a NYC Administrative Code Sec 3-703 (1)(c), "certification" indicating its intent to

participate in the "matching" public funds program administered by the CFB, which

provides a six to one match of taxpayer dollars for qualified contributions.

5. In this capacity, Defendant David Thomas was legally responsible

for: (a) reporting all campaign contributions, both in money, and the "fair market

value", of both (a) all monetary donations, and (b) "in kind" contributions, which the

Debi Rose 4 City Council 2009 Campaign received as that term is defined in the New

York Election Laws, and New York City Charter received from contributors except for

"independent expenditures" as that term is defined in New.York City Charter Sec

1052(15)(i), and (b) for accurately reporting Rose Campaign expenditures to the State

Board of Elections, and CFB.

FALSE FILINGS

6. Beginning in approximately June 2009, and continuing up until the

filing of this complaint, Deborah Rose was a candidate for both the Democratic Party's

nomination, and at the November general election to the New York City Council, from

the 49th Council District on Staten Island. She sought, and was endorsed by, the

Working Families Party (WFP). DAVID THOMAS, in his capacity as Debi Rose 4 City

Council 2009" Campaign Treasurer, and the "Debi Rose 4 City Council 2009"

Campaign, in Richmond County, knowingly filed false, and inaccurate campaign finance

reports, with both (a) the BOE, and (b) the CFB with the intent to mislead, and induce

the CFB to provide the Rose campaign with the maximum sum of matching funds, but

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simultaneously significantly under-reported the "fair market value" of both goods and

services provided by individuals, various New York labor unions, and the WFP operating

through a New York corporation "Data & Field Services" (DFS) in violation of both New

York State election laws, and the New York City CFB rules and regulations, which the

candidate, and treasurer had previously agreed to abide with.

7. During this same time period, and in an effort to knowingly conceal

the false, and misleading campaign filings, DAVID THOMAS, in his capacity as

designated campaign treasurer/acting in concert with the Debi Rose 4 Council 2009

Campaign committee knowingly filed false, and materially misleading documents, and

submissions from Richmond County, New York, with the CFB in New York County, to

knowingly conceal, mislead, and obstruct the CFB's City charter requires audit of the

public funds provided in 2009 to the "Debi Rose 4 Council" Campaign.

8. In 2010, the CFB sua sponte suspended NYC Charter imposed

deadlines for the Rose Campaign audit, referencing the existence of a pending

"criminal investigation". Upon information and belief, those deadlines presently

remains suspended sine die. '

DATE & FIELD SERVICES CDFS)

9. DFS was incorporated in the State ofNewYork as a "for profit"

corporation by Kevin Finnegan, Esq., an attorney, and high ranking WFP official. At

all relevant times DFS shared office space with the WFP in a three story office building

located at 2-4 Nevins Street in downtown Brooklyn, Kings County.

10. Additionally, during this same 2009 time period, and continuing up

until his resignation as Campaign Treasurer in 2011, DAVID THOMAS conspired and

acted in concert with persons, both knmvn and unknown, including employees of (a)

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DFS, and (b) the WPP, and (c) various labor unions to assist the "Debi Rose 4 City

Council 2009 Campaign Committee" to obtain from CFB the maximum. allotment of

public funds, and conceal both the nature, and extent, of the "in-kind contributions"

knowingly made to the Rose campaign by inter alia DPS, the WFP, and various WFP

affiliated New York City labor unions.

THE STATUTORY SPENDING BAN

11. WFP was statutorily precluded from expending party funds, or

making "in kind" contributions, to inter alia the Rose City Council Campaign pursuant

to New York State Election Law Sec 2-126.

THE CAMPAIGN FINANCE FRAUD

12. In or about August, 2009, CFB issued Advisory Opinion 2009-7

ruling that services provided by DFS, were deemed not independent expenditures of

the WFP. DFS was held to be the alter ego ofWFP.

13. Between 2009, and the date of this complaint, Defendants David

Thomas, acting in concert with Debi Rose 4 Council 2009 campaign, violated Penal

Law Sec. 155.30, and committed the crime of grand larceny in the 3rd degree, in that in

his capacity as Campaign Treasurer, David Thomas knowingly filed false and

misleading documents on behalf of "Debi Rose 4 City Council 2009" with the CFB,

which in reliance on those documents, released more than fifty thousand dollars

($50,000) to the "Debi Rose 4 City Council 2009 Committee" (the Committee).

14. In February, 2009, the Friends of Debi Rose Committee filed

appropriate candidate announcing paperwork with the BOE, and CFB, initiating the

candidacy of Deborah Rose for the Democratic nomination for election to the New

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York City Council in the 49th Council District, in a special election due to a vacancy in

the office.

15. In February, 2009, the Friends of Debi Rose Campaign Committee

filed CFB paperwork, seeking to participate in the New York City publically financed

campaign system. Deborah Rose was the announced "candidate" within the meaning

of New York Election Law Sec. 14-100 (7). Mr. Larry Beslowwas the designated

campaign treasurer in the February, 2009 special election.

16. Both individuals appropriately identified themselves as the

"responsible individuals" who affirmatively accepted legal responsibility to follow the

New York State Election Law, the New York City Administrative Code, and the C.F.B.'s

"Rules and Regulations".

17. Both campaign officials (Ms. Rose and Mr. Thomas) travelled from

Richmond County to New York County, attended the free course offered by C.F.B.

provided to assist campaign officials to be able to comply with C.F.B. laws and Board

protocols under the auspices of CFB employee Mr. Daniel Cho.

18. Both the Debi Rose 4 Council Campaign, and the Campaign

"Treasurer", David Thomas were legally obliged to (a) truthfully, (b) timely, and (c)

accurately file periodic reports with both (a) the New York State Board of Elections,

and (b) the C.F.B. reporting campaign "contributions" as that term is defined in

Election Law Sec. 14-100 (9).

19. Among the Election Law Sec. 14-100 (9)(3)(a) reportable

contributions were:

(1) the "fair market value" of services provided by individuals who

volunteer their time, or provide services to a candidate and their political committee;

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(2) The travel expenses paid on behalf of campaign volunteers;

(3) The voter activation network CV AN) program,1 (a sophisticated

computer program which provided those with access to vital

significant demographic, and voter contact political information

concerning the district's registered voters),

C4) Political advertisements placed in general circulation newspapers urging enrolled voters to vote for Deborah Rose in the September

2009, Democratic Primary.

20. "New York Jobs with Justice" (JWJ) allegedly "leased" the VAN to

DFS. In an August 14, 2009 letter, JWJ "Campaign Director" Matt Ryan noted DFS

had in fact, not paid JWJ for two years of VAN use ($15,000). In its settlement, the

Rose Campaign agreed to pay $1,125.00 for the V AN's use.

21. Both the campaign candidate, and unindicted co-conspirator

Deborah Rose, and her agent the campaign Treasurer, David Thomas, are also

required by Election Law Sec. 14-104(a) to file periodic statements reflecting

contributions received, and expenditures made by, and on behalf of, the Rose

Campaign Committee. By failing to accurately report the "fair market value" of both

"in kind" contributions, and expenditures, David Thomas, acting in concert with the

"Debi Rose 4 City Council 2009" Campaign Committee knowingly violated Election

Law Sec. 14-126(4) and (5).

1 In a September 1, 2009 letter to CFB, Director of Special Compliance Peri Horowitz, DFS counsel Alexander Raab, Esq. of the Levy Ratner law firm, asserted to the CFB that DFS had "leased access" to the VAN pursuant to an "oral agreement" with "New York Jobs with Justice". Mr. Raab opined the value of the VAN was somehow "factored into" contracts between DFS and its clients. However, since DFS never indicated what it paid for VAN access, the charges were nonetheless significantly below "fair market value" for the V AN's use.

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22. In 2009, the CFB subsequently released approximately $177,050 to

the Rose campaign committee, relying on the Rose Campaign Committee "funds

application" signed by the Defendant David Thomas, the campaign treasurer.

THE CFB POST ELECTION AUDIT

23. Following each election, the CFB conducts a "Final Audit" of

previously filed disclosure statements. Beginning in 2009 and continuing up to the

filing of this complaint, the Debi Rose Campaign Committee provided false and

misleading documentation to the CFB in an effort to both obfuscate, and conceal, "in

kind" campaign contributions, and coordinated campaign goods and services provided

by various labor unions for which "fair market value" was neither paid, nor accurately

reported.

THEFT OF EXCESS POST-PRIMARY ELECTION CAMPAIGN FUNDS

24. The Rose Campaign Committee Treasurer David Thomas also, after

the November 9, 2009 general election, acting in concert with Debi Rose 4 Council

2009, and David Jones, paid at least one compensated "political consultant",

Richmond County resident, David Jones, $5,000 in CFB obtained matching funds, at a

time, and under circumstances, when both the consultant, and his wife, had initially

previously contributed approximately $625.00 in matchable funds to the campaign

under the New York City public financing system. Defendant David Jones was

subsequently fully repaid a multiple of his campaign contribution. Significantly,

Defendant David Jones had (a) no written contract as required by CFB,and (b)

submitted no written documentation as required by CFB supporting the services

allegedly provided subsequent to his hiring in exchange for the expenditure of these

CFB provided funds. Under CFB Rules, these funds were required to be returned to

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the NYC CFB (CFB Rules 1-03(a)(1)). No quantification of the services allegedly

provided has been made, even on ~ quantum meruit basis.

25. The aforesaid conduct was undertaken with the intent by

Defendants acting in concert to steal campaign money. $s,ooo was knowingly stolen

from the Rose Campaign which was paid by David Thomas in Richmond County at

Deborah Rose's instruction to David Jones likewise in Richmond County. David Jones

in turn, knowingly and criminally possessed the stolen $s,ooo.oo.

THECAMPAIGN'sFAILURETOPAY"FAIRMARKETVALUE"

26. DFS and co-conspirators Rachel Goodman, Michael Boland, the

Working Families Party, Data & Field Services, New York Citizens Services, and New

York Jobs with Justice, acting in concert, aided and abetted David Thomas in

significantly undercharging, and inaccurately reporting, inter alia the following

campaign expenditures to the BOE and CFB:

a)$5,600.oo in costs for the services of DFS employees Vonda

McKeithan, Bcyan Collinsworth, and Rachel Goodman;

b)$1,ooo.oo in primacy day, September, 2009 get-out-the-vote

(GOTV) expenses;

c) $800.00 in tolls paid for transporting canvass workers to Staten Island to canvass for the Debi Rose 4 City Council

Campaign;

d)$1,125.oo for use of the Voter Activation Network (the

"Van"); and

e) $s,ooo.oo for DFS failing to collect, and the Rose

Campaign's failure to declare and pay, prior to commencing

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work for the Rose Campaign, that amount still owed to DFS

for its services to "Friends of Debi Rose" Rose's 2009 Special

Election Campaign Committee.

f) $7,200.00 was paid to a company "New York Citizens Services" (Citizens Services), a subsidiary of "ACORN" for

both petitioning, and canvassing related services. There was

no legal entity incorporated under "New York Citizens

Services" the name was utilized to maskACORN's

involvement and unsavory reputation due to media accounts

reflecting criminal conduct by ACORN employees. It's

employee Peter Nagy, worked seven days a week for three

months driving to Staten Island and paying a daily $15.00

bridge toll. This "sweetheart" contract was below fair market

value.

27. The voter information provided by the V AN2 for the 2009

Richmond County City Council race, alone possessed a "fair market value" of at least

$s,ooo.oo. 28. These under-reportings were contained in a stipulation dated on or

about February 3, 2010, and incorporated by reference. DFS, however, never provided

the required independent analysis of the VAN's value, as it had agreed to.

2 The VAN was provided to DFS by the unindicted co-conspirator "Jobs with Justice". As of mid- August, 2009, DFS had not paid Jobs with Justice for two years use of the VAN. This accordingly constituted an "in kind" contribution to the Rose Campaign, and DFS' alter ego WFP.

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29. In an effort to keep DFS operational, WFP transferred thousands of

WFP dollars to DFS, as reflected below. None of the transfers were approved in

advance by the WFP treasurer.

30. AB reflected on Schedule "F" on the New York State Board of

Elections WFP Disclosure Reports, submitted by WFP Treasurers Michael McGuire3

and following Mr. McGuire's resignation by Ms. Dorothy Siegel. DFS received

payments between February, 2009 and July 10 2009; in its Periodic July 2009 Report

as follows:

Date Record Date Amount Purpose

2/20 7/22 $5,381.00 Wages

2/20 7/22 20,000.00 Wages

3/20 7/22 $23,582.44 Wages

4/3 7/22 $5,141.50 Wages

5/1 7/22 $14,283.80 Wages

5/1 7/22 $36,913.88 Wages

5/29 7/22 $18,259.50 Wages

5/29 7/22 $18,259.50 Wages

6/26 7/22 $z5,s44.19 Wages

Total:9 ~217,365.31 Transactions

31. In its 32 day pre-Primary Report filed with the New York State

Board of Elections the WFP's Schedule "F" disclosed the following payments to DFS.

Record Date Amount Purpose

3 Mr. McGuire abruptly resigned as WFP Treasurer, prior to the filing of WFP's July, 2009 filing with the State BOE.

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7/24

8/07

9/15

9/15

Total: 2 transactions

$78,966.09

$s8,7s7.17

32. In its 10 day post Primary Report filed with the Board of Elections

in Schedule F, WFP disclosed the following payments to DFS:

Date Record Date . Amount Purpose

9/4 9/28 $8,493,95

9/4 9/28 $4,432.28

9/4 9/28 $1,092.47

9/18 9/28 $14,635.09

9/18 9/28 $362.37

9/18 9/28 $1,092.99

9/18 9/28 $23,280.62

9/21 9/28 $25,857.71

Total: 8 ~29,242.48 transactions

33. Additionally, in its January, 2010 periodic filing with the New York

State Board of Elections under Schedule F, the WFP reported the following payments

to DFS in late 2009/early 2010:

11/27

12/24

Record Date

1/19/10

1/19/10

Amount Purpose

$10,000.00

$45,228,38

12

1/08

1/08

1/19/10

1/19/10

Total: 4 $100.694.97 transactions

34. At the same time, WFP reported receipt in schedule "P" of

$160,000 from SEIU 1199 in its "Housekeeping Account". Such "housekeeping"

accounts by statute are solely designated for party building contributions, and not

eligible for political campaign use.

35. WFP reported the following payments to DFS from the WFP

"Housekeeping Account".

Date Record Date Amount Purpose

10/2/09 1/19/10 $15,521.77

10/16/09 1/19/10 $13,247.94

10/20/09 1/19/10 $1,300.00

11/27 1/19/10 $35,794.48

12/11/09 1/19/10 $39.3.s2.z4

Total:5 ~105,216.93 transactions

36. These knowingly false campaign filings with the New York State

Board of Elections in Albany County, were made in and from Richmond County, by

Defendants David Thomas and Debi Rose 4 Council 2009, and constituted Offering a

False Instrument for Filing, in violation of Penal Law Sec. 175.35.

37. Between August 25, 2009, and the filing of this complaint, DAVID

THOMAS conspired, and acted in concert with employees ofDFS, WFP, various labor

unions, and members of the Rose Campaign to file false and inaccurate campaign

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filings, with both the State Board of Elections, the CFB, and knowingly attempted to

coverup these violations.

38. During this time period David Thomas was paid $3,000 by the Rose

Campaign for his services as follows:

a. August 14, 2009: $1,500

b. October 14, 2009: $1,500 $3,000

THECOVERUP

39. David Thomas was subpoenaed to Supreme Court, Richmond

County and subsequently gave sworn testimony in Supreme Court, Richmond County

in Election Law Part 1, on January 13, 2010 in St. George in Richmond County before

Justice Anthony Giacobbe.

40. On that date, he was questioned by Randy Mastro, Esq. concerning

sworn affidavits provided in response both to the Mastro case, and to the CFB.

41. Thomas testified under oath in Supreme Court, Richmond County

before Justice Giacobbe that a June ?1h contract between the Rose Campaign and DFS

called for a "full time" Campaign Manager in exchange for $u,500.oo. Rose

Campaign expenditures reports confirm Vonda McKeithan was the "full time"

Campaign Manager. It did not however, cover (a) the costs of canvassing, (b) Press

Person/ Communications Director.

42. However, DFS Payroll records subsequently revealed Vonda

McKeithan was actually paid $12,425.75 by DFS. The "computational upshot" is that

DFS financially subsidized Vonda McKeithan's salary by $1,375.73. Put another way,

the Rose Campaign did not pay "fair market value" for McKeithan's service.

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43. A second contract between DFS and the Rose Campaign called for

DFS to provide "canvassing services" between August 10th, and September 15, 2009.

44. During the CFB audit, David Thomas knowingly filed an affidavit,

with CFB from Richmond County that WFP had provided no campaign assisting

services to the Rose campaign. However, David Thomas in truth, knew this statement

was knowingly false. Both Rachel Goodman, and Emma Wolfe, (WFP employees)

provided such services in June and July, 2009 well in advance of the September, 2009

Democratic Primary.

45. David Thomas testified in Supreme Court, Richmond County the

Rose Campaign paid $soo for use of the VAN. He knew, however this was untrue, and well below "fair market value" for its use which was no less than $i,ooo.oo, and retailed for over $s,ooo.oo.

46. David Thomas further reported, in CFB filings, that Bryan

Collinsworth provide "occasional" consulting services when he served as the Rose

Campaign Press Aide, although knowing full well that Collinsworth was a "full time"

campaign worker. These answers obstructed the rendition of a proper judgment. WHEREFORE, your Affirmant seeks a warrant authorizing the arrest of

all named defendants so they may be dealt with according to the law.

Sworn to before me this t1 J;.. day of October, 2014

uL Jt~~ Notary Public

SHERRI ROSEN Notary Public, State of New York

No Q1R04712214 Qualified in Queens county

Certificate Filed in New York County Term Expires December 31, ). o J '-I

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/~ includfugdite appeal, .as. well as ~Y pa~ jlldgment pro~eding ht.any court. and it is. ~t

ORDERED. that m. supponi~:appJJtQa ofDi~ct Attorney Daniel M. \DoilOvatt~ Jr.J' ~ undr S(Jti until further O~,of the Coun, iwt. it is turdier

Q~ERED~ end that tbis;Ofdet ~-.entered with ~e COunty Clerk. and shall nO( _beWl(lersea1.

~.

A.1

At.a Spcci~I Tenn,. P:art l, cf ih~Supi:enie Col.td of' the Stato of New Yorki ~in. and rofthc County of Richmond, at the 'l.$.J~i~d T~, Statett fsland,,.New York. on th~ tllli day ofJtntiarY; 201:2:

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Ind~~ . 80049/:l 0

.:!~~ t~tb~ Sati$ftio1t ofthi$ :Gour.tf~m th~ Affimtatioril of DANlEL M . k!Dlffl .. w. ~i . m . J)i~ibt.Ait(Jm~y.of Ri~nd:eounty. dated: Fe~ H> zo1(),; ~the

. . . . . . . . : . . . . .

. ;,.i~1ajid~his ~ssistants sbou1d ~~relieved &om acti!l&:fur.d1