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  • Home / Articles / News / News /  CITY HALL SPECIAL INVESTIGATIVE REPORT Page 3
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    Monday, August 10,2009

    CITY HALL SPECIAL INVESTIGATIVE REPORT Page 3

    Inner workings of secretive WFP for-profit company and multiple candidates' operations revealed

    By Edward-Isaac Dovere

    As for how DFS finds its workers, a lot of the recruitment seems to take place on internet job sites, though the process seems to be handled by the WFP, as in a job posting titled "Work for the Working Families Party" placed on Craigslist July 22 which in part reads, "In the coming months, we will be running campaigns to elect progressive candidates in NY, change the rent laws in NYC, establish a green jobs program that will create 18k new jobs, and create a public financing system for State elections to put special interest lobbyists out of business."


    This job description matches with Cantor's account of DFS operations. The ad, however, directs applicants to www.workingfamiliesparty.org/jobs, where an online form is available for submission to the WFP.

    On August 6, a separate ad appeared on Idealist.org under the heading "DEMOCRACY IS NOT A SPECTATOR SPORT!" That ad gives the website and a brief history of the Working Families Party before listing the job responsibilities entailed: "The WFP is currently hiring staff to work on an exciting electoral [sic] the most exciting electoral campaigns for progressive candidates this year in NYC. During other times of the year new hires will work on: volunteer recruitment and mobilization, one on one house visits with members and cold door knocking, participating in and supervising call centers, membership drives and fundraising, turnout for rallies and organizational meetings, qualifying candidates for the ballot through petitioning, organizing letter writing drives to pressure elected officials, and various other campaign related work."

    Again, the job description and compensation match with Cantor's account of DFS work, and again, direct applicants to www.workingfamiliesparty.org/jobs, though also providing the option of calling an extension at the main line of the WFP (718-222-3796) which rings through to an unmarked voicemail box or emailing jobs@workingfamiliesparty.org.
    Neither Craigslist or Idealist carries a listing from Data and Field Services.

    Asked to explain this, Cantor answered via email that "Respondents to those ads would be employed by DFS for contract work for the WFP."

    The message on the main line of the WFP also provides another number, (718) 222-5753, to call about jobs. That number goes to the voicemail box of someone who identifies himself as "Matt at the Working Families Party." Levitan, the WFP spokesman, said he was unfamiliar with a separate number to call about jobs, and that the number of people named Matt on staff made it impossible for him know which one the number was designed to reach.

    In other words, the WFP and DFS do not show clear separations between them--not in office space, not in staffing, not in payroll, not in accounting for expenditures and not in hiring. WFP's claims to have set up DFS as a distinct entity do not match with how the two organizations work in practice. Aside from the DFS incorporation documents and apparently separate bank accounts, no one involved with the WFP or apparently involved with DFS was able to draw a clear line between the two on any fronts beside saying that the two entities were separate, that the arrangement between the two was not complicated and that they were confident everything being done was in full compliance with campaign finance laws.



    A few days before Election Day 2008, the WFP released a memo from Cantor and Lipton on the Democratic efforts to take back the Senate which summarized six target races, "all of them done in close collaboration with the DSCC staff led by the estimable Doug Forand," the political consultant who left the Democratic Senate Campaign Committee staff at the outset of the election cycle to co-found Red Horse Strategies. The DSCC immediately became a main client of Red Horse.

    With the much higher spending limits under state law, collaboration of the sort referenced in this memo is rarely a problem. Caps for donations and in-kind donations are so steep for candidates for the state legislature and state constitutional offices that reaching the limit based on resources or hours provided to the campaigns would take more than most groups could reasonably provide.

    Under the much lower spending limits in city campaign finance laws--$4,950 for citywide campaigns and $2,750 for Council campaigns--the thresholds can be reached much more quickly and easily.
    After the major successes of last year, when DFS took in $2,400 from Daniel Squadron and $35,000 from Kevin Parker over the course of helping each of them win Democratic primaries for their State Senate seat, Cantor said he and others engaged in conversations about making DFS a force in the 2009 city elections, with the city finance system's lower limits and stricter rules very much on their minds.

    Cantor insisted he would be eager for the CFB to just point out whatever problems may exist. If problems are found, he said, he would be happy to set things straight.

    "We love the campaign finance system. We're scrupulous about abiding by it. Campaign Finance Board's always said we're doing things right. If we're doing things wrong, they'll tell us and we'll fix it," Cantor said. "And so far they haven't said that, not that I'm aware of."

    Speaking directly to the topic of third party involvement in political campaigns, the CFB issued a stern warning in an August 6 advisory opinion.

    "Non-independent third party expenditures pose a serious threat to New York City's Campaign Finance Program and the Board is committed to ensuring that the law with respect to non-independent expenditures is enforced vigorously and consistently," the opinion states, explaining later that "each campaign bears the burden of demonstrating that any third party activity conducted on the campaign's behalf is indeed independent."

    DFS's first big push in elections for city offices came in February 2009, shortly after Debi Rose was endorsed by the WFP on Feb. 5 in her run for the Council seat vacated by now Rep. Michael McMahon. Her campaign made five separate payments to DFS over the course of the next two and a half weeks totaling $45,000, apparently drawing on the approximately $88,000 she received in matching funds (she raised just over $47,000 in private funds, bringing her total to $135,000) to help foot the bill.

    Despite this, Rose, who is now running a September primary campaign against Council Member Ken Mitchell, claimed to be essentially unfamiliar with DFS.

    "I don't really know enough to tell you," she said, before getting off the phone to speak with her campaign manager, with a promise to call back shortly.

    Rose never did. Instead, an email arrived from her current campaign manager, Vonda McKeithan, explaining that "Data and Field Services is great at what they do--engaging with voters one on one to get our message out. We want to talk to as many people as possible about the issues that matter to our community and they are a big help in doing it."

    Though McKeithan referred to the use of the company in the present tense in this email and a subsequent one whichreferred to the company as "field organizing 101," in a later interview she said that Data and Field Services had in fact not done any work for the campaign during the regular election so far, but "they will be helping us in the last couple of weeks of the campaign."

    McKeithan said she was uncomfortable answering questions about whether a contract had yet been signed for this work, but noted that Rose had been the one to pick DFS as a vendor for the campaign. Rose's statements about being unfamiliar with Data and Field Services, McKeithan said, was due to the candidate's not knowing the company by name, but only by what it did.

    Rose was not the only one involved in her special election race who was unclear as to what Data and Field Services provided to the campaign. Asked to clarify the company's role, David Jones, the campaign manager for Rose's special election effort in February, said he had no memory of a company by that name. When reminded that the campaign had paid $45,000--a third of all the money available to the campaign between private and matching funds--Jones shrugged off the idea that this was a notable sum.

    "I paid a lot of people," he said. "To you, it's a lot of money. To me, it's not a lot of money."

    But Jones did remember the assistance that the campaign got from staff of the Working Families Party.

    "The Working Families Party provided some analysis, things of that nature. They were very helpful in that regard," he said. "Their role is that they did a lot of data analysis and were very good at that."

    This is despite Cantor's insistence that the WFP does not provide direct help to campaigns and that DFS does not deal in much data.

    When presented with the fact that no payments had been made by the campaign to the Working Families Party for these services, Jones reconsidered his statement.

    "The Working Families Party, they help out--there's another company that comes in that provides certain aspects, certain operations," he said. "There are other companies they recommend, and you can or can't use them. It's up to you. They give you a list of companies, and you pick and choose."

    Just a few minutes later, Jones gave yet another account of how the breakdown of responsibilities worked.

    "The Working Families Party was just like 1199 or DC 37. Their job was to coordinate the unions," he said. "That's what their contribution was. The companies that did data analysis and things of that nature, that's what they did."

    For another special election held simultaneously in Queens, Julissa Ferreras spent $17,000 with DFS. Though Rose lost after an extended recount, Ferreras rode to victory to take the seat on the Council which had been held by her old boss, now State Sen. Hiram Monserrate. Fellow Queens Council Member Elizabeth Crowley has the distinction of being the first candidate ever to report spending money with DFS, sending $3,060 to the company during her unsuccessful special election campaign in June 2008. (She later won the seat in her rematch with Anthony Como in November 2008.)

    Confusion between the two entities seems to be pretty standard. Also in February, the campaign of Mark Lesko for Brookhaven town supervisor drew headlines for writing $124,000 in checks to the WFP that it said was actually intended to go to DFS. WFP seems to have cashed the checks before realizing that the money needed to be refunded, which they were. That money was part of a total of $169,000 the Lesko campaign paid to DFS.

    The campaign manager for Lesko's race, Lisa Wieber, would not comment on what services the campaign received for those payments, indicating that a communications director would call back on her behalf, though no one ever did. An April 5 report in Newsday on the WFP's involvement with the race, however, noted that there were 30 paid WFP operatives working in Brookhaven for most of the race, growing to 100 in the final days, with Wieber calling the WFP "crucial" in identifying 7,000 out of 24,000 voters assumed to be Lesko supporters.

    Unclear from public reports is how much less support, if any, the Rose campaign received for the $45,000 spent with DFS in the Council race than what the Lesko campaign received for the close to four times as much it spent in the Brookhaven race for an election that was decided just five weeks later. Without that level of disclosure, there is no way to prove that the $45,000 was a fair market price, was overpriced, or was undervalued. The same is true for other clients.



    Cantor said the determination for which campaigns use DFS is pretty simple from his perspective. The candidates using DFS, he explained, "are priority candidates."

    And the campaigns seem to be happy with what they are getting from the company.

    DFS is certainly worth hiring, said Brian Fritsch, campaign manager for Jimmy Van Bramer, who is running for the Queens Council seat being vacated by Eric Gioia.

    Fritsch said that the $4,700 the Van Bramer campaign paid to DFS was to cover the costs of collecting about 1,000 signatures he deemed "high quality," with workers simultaneously distributing Van Bramer campaign literature.

    Ray Cline of the Progressive Strategies Group, another company specializing in signature gathering said that in terms of the current market, the amount of money paid for that number of signatures "could be a little high," though noting "it's a City Council race--there's no rhyme or reason."

    Fritsch said he was confident the Van Bramer campaign had gotten a good value from DFS.

    "We wanted to have far more petition signatures than necessary" Fritsch said, "and we felt that going with Data and Field Services was the best route."

    Fritsch said the contract had been mostly settled before he began working on the Van Bramer campaign himself in late May, though the payment was not made to DFS from the campaign until July 1.

    Fritsch said the petitioning work concluded the Van Bramer campaign's contract with DFS.

    But as for the WFP, Fritsch said, the work together continues.

    "They're involved in the campaign, definitely," he said. "They're helping with our canvas right now."

    Fritsch explained that the campaign coordinates with Joe Kenton, a WFP employee who Fritsch referred to as the WFP field manager, to make sure the campaign staff and volunteers do not cover the same ground as the WFP workers who are in the district on their behalf.

    The help goes beyond people on the ground, Fritsch explained.

    "They're also doing our data management. We have their VAN [Voter Activation Network] service as well," Fritsch said, adding that he believes the campaign is paying the WFP for this help, though he was "not sure how it breaks down from the contract that we have with them."

    According to city campaign finance disclosures, though, the Van Bramer campaign has yet to make any payment or contribution to the WFP or to Kenton. However, the WFP's state Board of Elections campaign finance disclosure shows a check for $4,700--the precise amount of the DFS contract--cashed and logged on July 7. Since Van Bramer shows a $4,700 expenditure to DFS, and WFP shows a payment from Van Bramer for $4,700, it appears that Van Bramer wrote a check to DFS that the WFP cashed.

    Asked later, Cantor said he believed Kenton's work on behalf of the Van Bramer campaign was probably part of the DFS contract, and disputed Fritsch's statement that the campaign's contract with the company was concluded. He also disputed Fritsch's statement that there were any WFP people working in the district.

    Other campaigns draw different delineations. The campaign of S.J. Jung, running for the Queens Council seat being vacated by John Liu, paid $10,820 on June 15--the most of any campaign reported so far during the current election cycle--to DFS, which campaign manager Lenny Sapozhnikov said covered the costs of some signature gathering and a retainer for canvas services. Sapozhnikov said he expects that DFS will do more voter contact in the future on behalf of the Jung campaign.

    There are no employees of the WFP involved in any of the efforts, Sapozhnikov said.

    "We don't have any Working Families staff on any canvas shifts. We have largely volunteer effort, supplemented by DFS paid canvassers. The Working Families Party is not staffing our campaign," adding a moment later, "directly."

    But that statement came after Sapozhnikov initially tried to direct the inquiries about the campaign to Bryan Collinsworth, a member of the WFP communications staff who coordinates interviews with Jung. Sapozhnikov referred to Collinsworth as "our spokesman."

    Cantor made no mention of communications staffing as a DFS service.

    A call to Collinsworth was unreturned.

    Asked to clarify that relationship, Sapozhnikov said Collinsworth "works for the WFP, which has endorsed us, and as part of our endorsement, he helps us with some press work. He's also helping other WFP-endorsed candidates, such as Danny Dromm, Debi Rose in Staten Island," adding, "part of the endorsement deal that sometimes he's available to answer some of the questions."

    Elaborating further, Sapozhnikov explained that while the campaign's general communications consultant is Red Horse Strategies, as for the WFP, "They're sort of in the background sometimes."

    Campaign finance disclosures from the Jung campaign show $4,000 in payments to Red Horse Strategies, but nothing to Collinsworth or the WFP. At first, Cantor said he did not know if Collinsworth is a DFS employee, but when told of Collinsworth's work on behalf of the campaigns, Cantor said, "he's getting paid by DFS to provide the campaigns communications help to various candidates."

    Indeed, Jung's campaign is not the only one getting help from WFP staff for its communication work, nor is Collinsworth the only WFP employee providing help. Fielding calls for Jumaane Williams' campaign to unseat Council Member Kendall Stewart in Brooklyn is a woman named Saba Debesu. Debesu appears to be a WFP employee--she is listed as the contact for applications for the WFP's 'organizing intern' program on the WFP website, and has a WFP email address.

    Reached for comment, Debesu was not able to immediately provide what Data and Field Services did on behalf of the Williams campaign, which paid DFS $4,000 on June 16. She pledged to call back with more, but never did, nor did she return a follow-up call or email.

    Campaign finance disclosures from the Williams campaign list no payments to Debesu or the WFP, aside from a $100 political contribution made on Sept. 17, 2008.

    Asked for Debesu's status, Cantor said, 'she's not a Working Families employee during the campaign. She's getting paid by DFS,' adding when informed that Debesu had not seemed to be familiar with what DFS was, 'I don't know. She probably does know. I don't know.'

    Then there is the campaign of Daniel Dromm, running against Council Member Helen Sears, which goes beyond referring calls to staff at WFP headquarters. After all, the campaign has its own WFP staffer regularly in the office, a woman named Melody Lopez, who serves both as the Dromm campaign manager and as the organizer for the Manhattan chapter and Bronx Co-Op City Club for the WFP. (She also seems to be the 'Melody L.' of the current WFP employees encouraging new people to apply on www.workingfamiliesparty.org/jobs, saying, 'I started working with WFP during spring break of 2004. Two years later, I was responsible for a staff of 25 and I was running the field operation for a congressional campaign.') In addition, Lopez and Debesu, who is working on the Williams campaign, were the contacts for candidates in Manhattan and the Bronx filling out their 2009 WFP endorsement questionnaires.

    Reached at the Dromm campaign office August 7, Lopez said that she is being paid by the Dromm campaign, but that all the money for her salary comes through Data and Field Services. The Dromm campaign made one $2,600 payment to date to DFS on June 15. Lopez was posting information on the Dromm campaign website's blog as early as June 9, identifying herself as the campaign manager in an item encouraging people to get involved with petitioning on behalf of the campaign.

    Lopez said that money also covers voter contact and organizing efforts on behalf of the Dromm campaign, though was not used for petitioning. She was not able to immediately provide any breakdown of what the Dromm campaign got from DFS in terms of hours worked or other data.

    Lopez said she was indeed on staff of the WFP, but was on leave, a fact that is not mentioned in her voicemail greeting at her extension at WFP headquarters.

    Asked if this leave was official, Lopez said no.

    'It's actually because I'm normally in the organizing department, so I'm on leave from the organizing department. I'm not doing my normal work. I'm sort of doing political work,' she said. 'Technically, I'm on staff.'

    Lopez confirmed that she is still also receiving her normal salary from WFP.

    Campaign finance disclosures from the Dromm campaign list no payments to Lopez or the WFP to compensate for her time.

    Cantor, who had not previous included managing campaigns as one of the services DFS provides, gave a different account of how Lopez's payment works.

    'Melody is under contract with the Danny Dromm campaign. They have a contract with DFS for campaign management and campaign services and campaign direction,' he said. 'After the election, hopefully she'll return to the Party.'

    He seemed unclear of what a leave from the WFP to go work on a campaign would entail.

    Shortly afterward, Cantor ended the conversation, but called back several minutes later with information that he had been told by an unidentified person other than Lopez that the contract between DFS and the Dromm campaign was much larger, somewhere between $40-50,000, and the $2,600 payment on 6/15 represented only the first in what will be a series. (This would be true of more campaigns as well, Cantor said, explaining, 'There's still plenty of work to do.')

    He said more payments will be visible on Dromm's next campaign finance filing, but that Lopez's salary for her first month on the job was indeed a portion of the $2,600. With reasonable estimates of deductions for the voter contact and organizing efforts which Lopez said the DFS payments covered, that would put Lopez on track to make a salary of $20,000 annually or less.

    Cantor then said that Lopez was right to say that she is getting her full normal salary, but that it is paid for by the Dromm campaign. As for Lopez's impression that she was still getting her full normal salary from the WFP, Cantor said she is not aware of where her checks were coming from, though he was.

    Though Cantor said he had not talked to Lopez about what she had said about her payments, Cantor said he guessed that she had been confused by questions about where her checks were coming from to pay for the Dromm campaign work.

    "She's getting the exact same paycheck she got beforehand--this is totally innocent, actually, but you're not going to believe it--but it's being funded from the silo of the Dromm campaign contract with DFS," Cantor said. "It's the same paycheck, deposited in the bank account, for the same amount. Because we're not going to cut someone's salary for going to work on the Dromm campaign."

    Cantor said Lopez knows the difference, despite what she herself said and the lack of any information on the checks or elsewhere which he could point to where this information would be readily available to her.

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    WFP, DFS, CFB...all of this alphabet soup is dizzying. It seems like WFP is at it again, as it is sending out recruiting leaflets in the neighborhood of its Brooklyn office. These have the WFP logo and explicitly mention working for WFP only, but they do refer cryptically to "our respected DFS marketing team" (I guess an apparent nod to regulations). What would seem to be more interesting are claims on the leaflet that if you work for WFP you get "preferred placement" on a candidates permanent staff if he/she wins, and hints at Thursday night social events where underage drinking is tolerated.

     

     
    Thanks so much for these articles. As a liberal, pro-union Democratic Party Reform activist there is something fishy about the WFP from Day One that didn't pass the sniff test. Their plan was to weaken the Dem Party although guys like Kevin Finnegan denied it. Now all these financial shenanigans indicate that they are as corrupt if not worse than any machine. Keep it coming.

     

     
     
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