Letitia James is fond of saying, “No one is above the law.” Let’s hope that is true, even though I don’t think pink is her color, I’d love to see her whole wardrobe in that color. Last week I wrote about her mortgage crimes, including applications that listed her father as her husband. Today, we will look at how she illegally hired a tax-exempt group to work on a prior campaign. Tax-exempt groups are not allowed to promote any candidate.
New York Attorney General Letitia James’ multi-family apartment building in Brooklyn has begun to resemble a crime scene. Last week, I revealed two major incidences of potential mortgage fraud by James.
I detailed Letitia’s misrepresentations in her government HAMP Loan application whereby she falsified the number of apartment units in her building to obtain a loan at 2.7% on the back of the American taxpayer.
Gilbert’s latest revelation is about illegal campaign activity in which Letitia James in 2013 when she ran for New York City Public Advocate, hiring a tax-exempt group to promote her election. The New York City Campaign Finance Board is an independent, nonpartisan agency that oversees the city’s campaign finance system. Its main duty is to make sure political campaigns follow the laws and adhere to their reporting duties.
Searching their records for Letitia James, it indicates her campaign hired New York Communities for Change (NYCC), a non-profit 501(c)(4) organization, to engage in political campaign activity on her behalf. The records indicate that her campaign paid NYCC for “Campaign Workers,” “Canvassing,” “Staffing,” and “Staff/Rent/Phone.”
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NYCC describes itself as a grassroots organization focused on community organizing, direct action, and legislative advocacy to address issues like housing, environmental justice, and community safety in New York.
They claim, “We are fighting for safe, affordable & stable homes and neighborhoods instead of evictions and displacement” and “A safe and thriving planet to build our communities on”.
There are distinctions in the IRS rules between 501(c)(3) and 501(c)(4) organizations as regards political activity. The law regarding 501(c)(3) non-profit organizations is strict – non-profits cannot participate in any political activity.
James herself issued a press release in 2020 entitled “Attorney General James Issues Political Activity Guidance for Non-Profits Ahead of the November Election”. In the release, James lectured non-profits, warning them in advance of the 2020 election that they were strictly prohibited from engaging in any political activity.
NYCC was organized in New York as a 501(c)(4) in 2009 as a successor to ACORN. Corporations organized as 501(c)(4) are called “Social Welfare Non-Profits” and their donations are not tax deductible.
Operating for social welfare, according to the IRS, means that an organization must “operate primarily to further the common good and general welfare of the people of the community.”
A 501(c)(4) can engage in some political activities, including advocacy and lobbying, but political work cannot be their primary activity.
They are allowed to engage in things like posting partisan political messages on social media, but they cannot directly support or oppose candidates for public office in a public manner.
While they may conduct independent political expenditures, they cannot coordinate with campaigns. Accordingly, political campaigns in the United States steer clear of 501(c)(4) organizations because they are prohibited from coordinating directly with political campaigns or candidates.
If a 501(c)(4) were to provide campaign workers or canvassing services to a candidate, it would be considered an in-kind contribution. Therefore, all the activities that Letitia James paid NYCC for in 2013, “Campaign Workers”, “Canvassing”, “Staffing”, and “Staff/Rent/Phone” were very likely not legal.
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