State Board’s Utter Incompetence Exposed by NYS Public Campaign Finance Fraud

The new public-campaign-funding scheme in New York state is vulnerable to fraud and abuse.

Prior to the June 25 primaries, the state’s Public Campaign Finance Board distributed over $8.6 million in matching-fund payments to 69 state legislative candidates with inadequate safeguards in place to prevent misuse of taxpayer funds.

The board’s oversight appears to be ineffective, much like the Cannabis Control Board, which was also established under Gov. Andrew Cuomo.

An investigation by The New York Times revealed how Dao Yin, a Flushing Democrat running for state Assembly, allegedly used straw donors to fraudulently obtain $162,800 in taxpayer-financed matching funds.

New York boasts the most generous statewide public-matching-funds system in the country, with a single $50 donation yielding $600 in public funds and a maximum $250 contribution resulting in $1,800.

Contributions between $5 and $250 from residents in legislative districts receive a 12-to-1 match for the first $50, 9-to-1 for the next $100, and 8-to-1 for the subsequent $100.

However, the board’s oversight is lacking beyond the distribution of checks.

The Times’ investigation uncovered several red flags in Yin’s contribution cards:

• 48 alleged donors denied making contributions and claimed their signatures were forged.

• Nearly $28,000 in cash donations from small donors.

• 80% of Yin’s donations were in cash, significantly higher than the average for Assembly candidates in the system.

• Missing or error-ridden donor records with key contact information omitted.

• Yin served as campaign treasurer, chief fundraiser, and candidate.

The board liaison failed to catch these irregularities and accepted Yin’s assurance that he had contacted questionable donors with “good-faith” letters.

The City Campaign Finance Board may have also overlooked issues, as Yin received over $1 million in matching funds for his 2020 borough president and 2021 City Council campaigns.

The problems with the state program were present from the beginning:

A Siena poll in April 2018 revealed that nearly two-thirds of New York voters opposed public funding of state elections due to the estimated $100 million cost every two years. Nevertheless, Cuomo and the Legislature proceeded, forming a commission to develop the system in March 2019.

The commission was stacked with political operatives, including election lawyer Henry Berger and Democratic Party boss Jay Jacobs. Today, the PCFB chair and vice chair are former state lawmakers Barbara Lifton (D) and Brian Kolb (R).

However, the system lacks basic safeguards, such as:

• Mandatory post-election audits for all campaigns.

• Adequate staff for reviewing and monitoring campaign filings.

• No independent subpoena power for pursuing rogue campaigns.

The allocation of hundreds of millions of taxpayer dollars to political appointees is a breeding ground for corruption.

The state program benefits incumbent lawmakers and unscrupulous challengers, creating an unnecessary burden on taxpayers.