Such a tangled web - too bad the D&C doesn’t do true investigative research. Here’s some done for them for RT…from the D&C Article:

According to Gleason, Townsend set up the corporation and pursued investors who would purchase the liens.

Gleason wouldn’t name the investors, saying it would be “inappropriate,” but he said he negotiated directly with them and not with Bartlett, his employee, or with the two other directors listed on the certificate of incorporation, who are Assistant County Attorney James Fumia and Richard T. Bell, a lawyer in private practice.

Bell is also treasurer of the Monroe County Republican Committee.

Townsend declined to discuss the corporation.

“I’m a private attorney in private practice,” Townsend said. “I don’t feel like talking about my private business in the press.”

and this:

A request to talk to County Executive Maggie Brooks about Monroe Tax was referred to County Attorney Daniel DeLaus. DeLaus said he would have insisted that Fumia resign from the Monroe Tax board if it won the bid, because it would be unethical for an employee to do business with the county.

DeLaus didn’t have a problem with Fumia on the board at the beginning because he knows that local development corporations must be connected to a municipality in order to sell tax-exempt bonds, he said.

“They didn’t really do anything,” he said.

Bell being the treasurer of the local GOP Committee, and a so-called “lawyer in private practice”…DeLaus being the County Attorney.

Perhaps they could explain why they both work for the same law firm?

Gates & Adams , P.C.
Address: 28 East Main Street
Suite 600
Rochester, NY 14614
Map & Directions

Phone: (585) 232-6900
Fax: (585) 232-6931
————————–
Attorneys

Adams, Anthony J. Esq.
Bell, Richard T. Jr. Esq.
Delaus, Daniel M. Jr., Associate
Gates, Douglas S.
Nadler, Christian M.

http://pview.findlaw.com/view/2632588_1?noconfirm=0&channel=LP

Nice try Broomarik, but the next call is to American Tax Funding in Florida, to see what they think of the illegal tactic used to boost the bottom line on the bidding to help Maggie through illegal bidding practices fill her budget gap!

More information on Townsend who doesn’t “feel like talking about my private business in the press.”

According to the NY Department of State, the corporation filings were made TWO DAYS prior to the opening of bidding, (October 28, 2007) which the bidding period was October 1, 2007, through December 1, 2007.

The corporation papers were also filed under HARRIS BEACH - the same law firm that represents the COUNTY, with the secondary contact person listed as Townsend:

NYS Department of State
Division of Corporations
Entity Information

——————————————————————————–

Selected Entity Name: MONROE TAX CERTIFICATE CORPORATION

Selected Entity Status Information Current Entity Name:
MONROE TAX CERTIFICATE CORPORATION
Initial DOS Filing Date: SEPTEMBER 28, 2007
County: MONROE
Jurisdiction: NEW YORK
Entity Type: DOMESTIC NOT-FOR-PROFIT CORPORATION
Current Entity Status: ACTIVE
HARRIS BEACH PLLC
ATTN: MICHAEL J. TOWNSEND ESQ.
99 GARNSEY ROAD
PITTSFORD, NEW YORK, 14534
Registered Agent
NONE

http://appsext8.dos.state.ny.us/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=3567728&p_corpid=3574110&p_entity_name=%6D%6F%6E%72%6F%65%20%74%61%78%20%63%65%72%74%69%66%69%63%61%74%65%20%63%6F%72%70%6F%72%61%74%69%6F%6E&p_name_type=%41&p_search_type=%42%45%47%49%4E%53&p_srch_results_page=0

Oooooooooh - I smell a BIG RAT. Someone needs to contact the State AG and open an investigation into this one.

edited to correct filing date as SEPTEMBER 28, 2007 - two days prior to the opening of bidding.

More:

Contributions to the GOP by Gates & Adams, P.C.:

Total Contributions 36,293.71

Take a lookie where:

http://www.elections.state.ny.us/plsql_browser/CONTRIBUTORB_COUNTY?NAME_IN=gates+%26+adams&position_IN=ANYWHERE&date_from=&date_to=&CATEGORY_IN=ALL&office_IN=ALL&county_IN=ALL&amount_from=&amount_to=&ZIP1=&ZIP2=&ORDERBY_IN=N

Contributions by Harris Beach:

Total Contributions 821,547.35

http://www.elections.state.ny.us/plsql_browser/CONTRIBUTORB_COUNTY?NAME_IN=harris+beach&position_IN=ANYWHERE&date_from=&date_to=&CATEGORY_IN=ALL&office_IN=ALL&county_IN=ALL&amount_from=&amount_to=&ZIP1=&ZIP2=&ORDERBY_IN=N

Looks like American Tax Funding isn’t innocent either:

AMERICAN TAX FUNDING, LLC
345 JUPITER LAKES BLVD. #300
JUPITER, FL 33458
$2,000.00
15-AUG-06
SCHENECTADY FIRST FUND
2006 27 Schenectady

http://www.elections.state.ny.us/plsql_browser/CONTRIBUTORB_COUNTY?NAME_IN=American+Tax+Funding&position_IN=ANYWHERE&date_from=&date_to=&CATEGORY_IN=ALL&office_IN=ALL&county_IN=ALL&amount_from=&amount_to=&ZIP1=&ZIP2=&ORDERBY_IN=N

American Tax Funding, LLC apparently has practiced this before in Schenectady:

The City Council’s Finance Committee on Monday acted on two major pieces of legislation aimed at saving the city from going broke, choosing a firm to collect $6.5 million in back taxes and approving a consolidation pact that could cost 40 city jobs.
The committee recommended that the City Council sell $6.5 million in tax liens to American Tax Funding LLC of Orlando, Fla., choosing the company over Xspand, a Morristown, N.J., firm headed by former New Jersey Gov. James Florio that only offered to purchase $4.58 million of the city’s liens.

Cathy Lewis, the council’s sole Republican, questioned whether American Tax Funding was getting too good a deal, but she ultimately voted to pass the resolution out of the committee.

http://schenectadyny.info/cgi-bin/forum/Blah.pl?v-print/m-1092731508/

So now one has to question their role…do they default on the leins, causing the Fed or the State to pick up the tab?

From Monroe County’s perspective…they get money through “FAIR”, through the sale of the leins, and would receive a third hand-out from a default…

Holy crap…

Fast forward - 2006:

LEGISLATIVE BUDGET PROPOSES RECORD INCREASES IN STATE AID TO LOCAL GOVERNMENTS Publication: US Fed News Service, Including US State News
Date: Monday, March 27 2006

New York State Sen. Hugh T. Farley, R-Schenectady (44th District), issued the following news release:

Cities, towns, and villages in the 44th State Senate District will receive record-breaking increases in State aid under a formula approved by the Joint Legislative Budget Subcommittee on General Government and Local Assistance. That panel is co-chaired by State Sen. Hugh T. Farley (R,C - Schenectady).

“Local governments will be able to use this aid to reduce real property taxes,” Senator Farley said. “These historic levels of increase in State aid offer municipalities a unique opportunity to reduce the crushing burden of real property taxes.”

If the budget legislation containing the State aid formula is approved by Governor Pataki, the city of Schenectady will receive a State aid increase of nearly $2 million, bringing total unrestricted State aid to almost $10 million per year.

“This represents a 75% increase in State aid to Schenectady over the past three years,” Senator Farley pointed out.

The city of Amsterdam will receive $2.63 million, an increase of over $510,000. Gloversville will receive $2.04 million, up more than $396,000, while Johnstown will receive $1.33 million, an increase of over $257,000. Local towns and village will receive increases of about twenty percent over last year.

http://www.allbusiness.com/government/3706405-1.html

Mr. “I’m just a private lawyer” Townsend is apparently also the spouse or at least family member of Maryann Townsend, who was a Family Court Judge candidate supported by the Conservative and Republican parties. And here’s a bit more about Michael: http://www.nypa.gov/about/officers/townsend.htm

Good catch Louis. Now we just need an attorney to come here and tell us what kind of situation this all represents. I can think of about 4 angles, but I would be curious to see what a lawyer thinks…

From the County Charter, the Director of Finance duties:

B.Powers and duties. The Director of Finance - Chief Financial Officer shall have the following powers and duties:
(1)To supervise, audit and control the financial affairs of the County.
(2)To collect, receive, have custody of, deposit, invest and disburse all fees, revenues and other funds of the County or for which the County is responsible.
(3)To perform all duties of a County treasurer relating to the collection of taxes.
(4)To perform all duties relating to the extension of taxes and the issuance of tax bills.
(5)To supervise the Office of the Controller.
(6)To supervise the Office of Management and Budget.
(7)To supervise the Office of Financial Services.
(8)To supervise the Division of the Treasury.
(9)To supervise the Division of Real Property Tax Services, consistent with Article 15-A of the Real Property Tax Law of the State of New York.
(10)To supervise the Division of Purchasing and Central Services.
(11)To manage special funds, financial policy development, bank relationships and debt issuance.
(12)To perform such other duties as may be required by the Administrative Code and other laws.

So - did the Director of Finance give up certain required duties by permitting the sale of tax liens? (I have no clue.) And did the Director give up certain required duties by not overseeing a bidding process? As for the bidding process, was it publicized?

Among the duties of the County Attorney, listed in the Charter:
(8)To initiate and execute tax foreclosure proceedings.

From the County Code:

§ 45-4. General standard of conduct.

No officer or employee shall have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature which is in conflict with the proper discharge of his duties in the public interest.
And:

§ 45-5. Interest in business or professional dealings with county.

No officer or employee of the County of Monroe shall have an interest, direct or indirect, in any manner whatsoever except by operation of law, in any business or professional dealings with the County of Monroe or any agency thereof.
AND
§ 45-6. Representing other persons or corporations in transactions with county.

No officer or employee of the County of Monroe shall act as attorney, agent, broker, representative or employee in business or professional dealings with the county or any agency thereof for any person or corporation in which he has a direct or indirect interest
And
§ 45-7. Investments conflicting with official duties.

No officer or employee shall invest or hold any investment, directly or indirectly, in any financial, business, commercial or other private transaction which creates a conflict with his official duties.

Maybe there are several ways to interpret this. And perhaps, if the deal had gone through there would have been a stronger argument that the rules had been broken. But it does kinda smell, doesn’t it?