CFB Declares DFS An Arm Of WFP

The Campaign Finance Board has issued a statement declaring that it understands Data and Field Services to be “an arm of the Working Families Party.” As such, the board has declared that any activities done by the WFP must be reported as expenditures by the campaign, and not just those billed to the WFP’s private company. In the closing two weeks of the campaign, that could mean the campaigns racking up big costs for staff, mailers and other campaign material which they might otherwise have gotten at no cost.

The extent of the connections between the WFP and DFS were first revealed by City Hall in an ongoing series of investigative reports.

The statement was finalized in an executive board meeting Wednesday morning.

The candidates using Data and Field Services are public advocate candidate Bill de Blasio and Council candidates Debi Rose, Danny Dromm, Jimmy Van Bramer, Lynn Schulman, Jumaane Williams, S.J. Jung and Brad Lander. All have also been endorsed by the WFP.

Manhattan district attorney candidate Richard Aborn is also using the company, and has also been endorsed by the WFP, but his filings are subject to the much laxer state finance laws. He is also ineligible for matching funds.

As of now, no fines will be levied or matching funds withheld for any campaigns. However, the statement ends by reminding campaigns that the board will be investigating campaigns for non-independent activity as defined by Rule 1-08(f), which details how outside entities are forbidden from coordinating with candidates.

“There has been much attention surrounding potential violations of the New York City Campaign Finance Act and Board Rules by campaigns that have hired Data and Field Services, Inc. (“DFS”),” the CFB statement reads.  “The potential violations are twofold:  (1) that campaigns are not paying full market value for services; and (2) the potential for non-independent expenditures due to DFS’ close affiliation with the Working Families Party and its affiliates.

“Based on information acquired by the Board to date, it is the Board’s understanding that DFS exists as an arm of the Working Families Party. Both organizations are located in the same space and share employees; DFS was created by Working Families Party staff; and there are no apparent firewalls between them. In light of the close affiliation, the Board presumes that any activity undertaken by the Working Families Party on behalf of campaigns using DFS as a vendor is non-independent. Therefore, these activities must be reported and accounted for by campaigns as either an in-kind contribution from the Working Families Party or an expenditure.

“In determining whether expenditures by an outside party are non-independent, the Board applies the factors in Rule 1-08(f). The Board makes no determination regarding violations at this time. Every campaign will be afforded the opportunity to be fully heard regarding potential findings of violation.”