Martinez 2001 v. New York City Campaign Finance Board

36 A.D.3d 544, 829 N.Y.S.2d 55
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 30, 2007
StatusPublished
Cited by10 cases

This text of 36 A.D.3d 544 (Martinez 2001 v. New York City Campaign Finance Board) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martinez 2001 v. New York City Campaign Finance Board, 36 A.D.3d 544, 829 N.Y.S.2d 55 (N.Y. Ct. App. 2007).

Opinion

[545]*545Order, Supreme Court, New York County (Paul G. Feinman, J.), entered August 12, 2005, which granted plaintiffs’ motion for a preliminary injunction to the extent of restraining defendant New York City Campaign Finance Board (Board) from conducting any hearing regarding the alleged violations contained in the Board’s notice and supplemental notice, and any further adjudication of the first, second and fourth through eleventh alleged violations, and denied defendant’s cross motion to dismiss the action, unanimously reversed, on the law, without costs, the motion for injunctive relief denied and the cross motion to dismiss granted. The Clerk is directed to enter judgment in favor of defendant dismissing the complaint.

This action arose out of a postelection audit conducted by defendant New York City Campaign Finance Board regarding the campaign of plaintiff Miguel Martinez for election to the New York City Council in 2001. Martinez was elected to the City Council in 2001 to represent a district in the Washington Heights section of Manhattan. He was subsequently reelected in 2003 and 2005. Coplaintiff Martinez 2001 was Martinez’s campaign committee in connection with his successful 2001 election.

The Campaign Finance Program is a voluntary program that was established in 1988 by the New York City Campaign Finance Act and the Campaign Finance Board Rules (see Administrative Code of City of NY § 3-701 et seq.; NY City Charter §§ 1051, 1052; 52 RCNY). It is administered by defendant New York City Campaign Finance Board (Board) and provides public matching funds to candidates running for the offices of mayor, comptroller, public advocate, borough president and city council member (see New York City Campaign Fin. Bd. v Ortiz, — AD3d —, 2006 NY Slip Op 09532, *2 [1st Dept 2006]). In order to receive public matching funds, a candidate must agree to abide by the program’s detailed requirements, which include, inter alia, the filing of periodic financial disclosure statements reporting [546]*546contributions received by the candidate’s committee and its expenditures; limitations on the total amount of money the committee can spend; restrictions on the amount that may be received from a single contributor; and an obligation to respond to requests for documentation and information from the Board to verify the committee’s compliance with the program (see id. at —, 2006 NY Slip Op 09532 at *2-3; Administrative Code § 3-704; 52 RCNY 1-08 [g]). If a participant in the program cannot demonstrate with adequate documentation that the public funds received were spent on qualified campaign expenditures, the Board may require that the candidate’s committee repay the money (see Administrative Code § 3-710 [2] [b]; New York City Campaign Fin. Bd. at —, 2006 NY Slip Op 09532 at *5-6).

Martinez joined the matching funds program for the 2001 election by submitting the certification form required by Administrative Code § 3-703 (1) (c) and 52 RCNY 2-01. Based on the financial disclosure statements that Martinez’s committee filed with the Board, Martinez received $128,786 in public funds for his 2001 election campaign.

Following the 2001 election, the Board commenced a routine postelection audit of Martinez’s campaign and requested documentation to substantiate the campaign’s use of program funds (Administrative Code § 3-708 [5]; § 3-710 [1]). According to the Board, Martinez’s committee refused to answer questions put to it, was generally uncooperative with the audit and failed to provide complete documentation. Accordingly, the Board issued a draft audit report on November 20, 2002 which set forth six findings detailing categories of documents or transactions for which corrective action was needed, and furnished recommendations for addressing each problem. The draft report further noted that the Martinez campaign had yet to document that any of the $128,786 in funds received was spent appropriately.

In March 2003, the committee provided additional documentation and information to the Board, which the latter again found unsatisfactory. Accordingly, on July 8, 2003, Board staff member Julius Peele issued a follow-up letter (Peele letter) requesting additional information and clarification from the committee. Specifically, the Peele letter requested additional documentation and/or explanations regarding five of the six findings originally raised in the draft report. In addition, the letter included a “new finding” concerning documentation of expenditures, citing five examples where specific documents provided by the committee bore indicia of fraud, such as apparently altered invoices, discrepancies in signatures in related documents, simi[547]*547lar signatures in unrelated documents and double endorsements of checks. The letter concluded by stating that “the findings may be referred to the Board’s legal unit” and that “[t]his is the committee’s final opportunity to respond.”

After a further exchange of documents, the Board served plaintiffs with a notice of alleged violations, proposed penalties and opportunity to respond (notice) in November 2004, alleging 17 separate violations of the Campaign Finance Law and Campaign Finance Board Rules. With respect to 8 of the 10 violations that are at issue on this appeal (violations 1-2, 4-8 and 10),

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Matter of Gunther v. Cruz
2024 NY Slip Op 01248 (Appellate Division of the Supreme Court of New York, 2024)
Matter of Nieblas-Love v. New York City Hous. Auth.
2023 NY Slip Op 00240 (Appellate Division of the Supreme Court of New York, 2023)
Matter of Petralia v. New York State Dept. of Labor
2021 NY Slip Op 00964 (Appellate Division of the Supreme Court of New York, 2021)
Chino v. New York Dept. of Fin. Servs.
2019 NY Slip Op 3008 (Appellate Division of the Supreme Court of New York, 2019)
Haddad v. City of Albany
149 A.D.3d 1361 (Appellate Division of the Supreme Court of New York, 2017)
Holzman v. Commission on Judicial Conduct
93 A.D.3d 431 (Appellate Division of the Supreme Court of New York, 2012)
Amazon.com, LLC v. New York State Department of Taxation & Finance
81 A.D.3d 183 (Appellate Division of the Supreme Court of New York, 2010)
In re the Guardianship of Leo R.
26 Misc. 3d 423 (New York Surrogate's Court, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
36 A.D.3d 544, 829 N.Y.S.2d 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinez-2001-v-new-york-city-campaign-finance-board-nyappdiv-2007.