The Independent View: NY LLC Abuse Needs to Stop

The Durst Organization used an oft-decried Provision of State Campaign Finance Law to shower Cash on Two Top Candidates for New York Attorney General, blowing past Individual and Corporate Donation Limits in the process.

Six Limited-Liability Companies (LLC) belonging to the real estate giant each gave $21,000 to Rep. Sean Patrick Maloney's Bid for the State's top Law-Enforcement job, while another donated $14,000 and an Eighth gave $10,000, bringing the Company's Total Investment in his Candidacy to $150,000. But one of the same Entities, DOLP 1155 Properties II LLC, chipped $10,000 into New York City Public Advocate Letitia James's effort to secure the post.

Maloney, James, and two others are seeking the Democratic Nomination for the Post, which represents State Government in Legal matters but can also bring Civil Lawsuits and Criminal Cases. The Seat opened up when Eric Schneiderman Resigned in an Abuse Scandal and his Appointed Replacement, Barbara Underwood, decided not to seek election to continue past Dec. 31st.

Albany's Regulations treat each LLC as a Single Person, rather than as a Corporate Entity, so any Business with Multiple LLCs, like Home Builders or Apartment Landlords, can give the $65,000 Maximum Individual Donation for each one. Ethics Advocates argue that the Provision renders Campaign Contribution Limits irrelevant, and favors Real Estate companies, which often maintain a Separate LLC for every one of their Properties.

Surveys show James, who has the backing of Gov. Andrew Cuomo and his State Democratic Party, as the frontrunner, with Maloney in Second place but trailing by Double Digits. Fordham University Professor Zephyr Teachout, who challenged the Governor in the 2014 Democratic Primary, is polling a close Third, with former Port Authority Commissioner Leecia Eve last but also in Double Digits.

Many Democratic Voters, however, report being Undecided. The Winner of the Sept. 13th Primary will be heavily favored to defeat GOP Nominee Keith Wofford, a Manhattan Lawyer, given New York's Strong Blue leanings. No Republican has won a Statewide Race since 2002, or a General Election for Attorney General since 1994.