Claire Shulman Omits $200k Payment

Claire Shulman testifies during a public hearing held on October 17, 2008 by the New York City Council Subcommittee on Planning, Dispositions and Concessions. At the time of this testimony, Shulman had already personally executed two contracts for her local development corporation ("LDC") to receive a total of $450,000.00 in City funds, and all of those funds had been disbursed to the LDC. The third and final payment was disbursed the day prior to this testimony -- notwithstanding that the Office of the City Clerk had commenced an investigation of alleged unregistered lobbying by the LDC (which eventually resulted in the then-record financial penalty of $59,090.00 being imposed upon the LDC), and notwithstanding that the LDC had registered its staff members/employees as lobbyists, while their salaries remained payable using City funds (pursuant to the applicable funding agreement), and notwithstanding that the lobbying apparently sought to influence the City Council's legislative rezoning of Willets Point -- although both Shulman's LDC and NYCEDC are prohibited from attempting to influence legislation by § 1411 of the New York State Not-For-Profit Corporation Law and by their Certificates of Incorporation.

Why does Shulman testify to the Council that the LDC has received just $250,000.00, with no further funds forthcoming? What would have occurred, if the Council had found out that Shulman's LDC continued to receive City funds, despite the pending City Clerk investigation, despite registering its staff members/employees as lobbyists while their salaries remained payable using City funds, and despite the apparent applicability of § 1411? Why were funds disbursed to the LDC under those circumstances?

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