Despite New York City’s strict contribution limits for people who have business before the city, Andrew Cuomo’s campaign for mayor has used several such restricted donors to bundle large amounts of cash for his campaign, a Sludge review of state records finds. Cuomo’s campaign has reported at least six bundlers who are listed in the city’s “Doing Business Database,” including lobbyist Brian Simon of Hollis Public Affairs and Brad Karp, chairperson of the white-shoe law firm Paul, Weiss, Rifkind, Wharton & Garrison.
The city’s “doing business with” rules were created in 2007 to curb pay-to-play corruption by limiting how much money people like lobbyists, contractors, and developers with financial ties to the city can give to candidates who, if elected, would be in positions of power and could repay perceived favors. These individuals are subject to lower contribution limits of just $400 for mayoral candidates, and their donations are not eligible for public matching funds. But the law has a loophole: these same individuals are not prohibited from bundling large amounts of campaign money from others, allowing them to curry favor with elected officials while staying within legal bounds.
Of the six Cuomo bundlers with business before the city, five come from the lobbying profession. In addition to Simon, Cuomo’s lobbyist-bundlers include Bolton-St. Johns Managing Partner Giorgio DeRosa, Tonio Burgos and Associates CEO Tonio Burgos, CDD Strategies founder Christian DiPalmero, Real Estate Board of New York (REBNY) President James Whalen, and Ostroff Associates President Rick Ostroff.
Together, these lobbyists represent dozens of clients with business before the state, including companies like Airbnb, the Greater New York Hospital Association (GNYHA), United Airlines, Enbridge, and Walmart. Burgos’ firm lobbies for three companies whose executives donated to the super PAC backing Cuomo’s bid: RXR Realty, whose CEO and chair Scott Rechler gave $250,000 to the Fix the City super PAC in March; and a pair of companies behind construction in Manhattan’s Hudson Yards that are controlled by Related Companies, whose chairman, billionaire Stephen Ross, gave $50,000 to the super PAC. DeRosa, chief Albany lobbyist at the influential Bolton-St. Johns, is the father of Melissa DeRosa, who was chief of staff and secretary to former Gov. Cuomo. Karp’s law firm has worked for corporate giants like ExxonMobil and Google. In total, Cuomo’s bundlers on the “doing business” list have raised around $59,000 for his campaign.
