The Santos dilemma

Presented by Healthcare Education Project: POLITICO's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Nov 17, 2023 View in browser
 
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By Nick Reisman, Jeff Coltin, Emily Ngo and Jason Beeferman

Presented by Healthcare Education Project

Rep. George Santos speaks with a reporter as he departs a vote at the U.S. Capitol.

After the release of a House Ethics Committee report, the effort to expel Rep. George Santos is gaining steam. | Francis Chung/POLITICO

Rep. George Santos says he’ll spend at least another year in office, but House Republicans from across New York and in Nassau County want him defenestrated as soon as possible.

A push to expel Santos from office gathered new momentum Thursday when a House Ethics Committee report found he spent campaign funds on trips, Botox and a porn site.

Santos, who is also facing nearly two dozen federal felony fraud charges, quickly announced he would not seek reelection.

Nassau County GOP chair Joe Cairo in a statement said expulsion is still in “the best interest” of the voters in the congressional district.

It’s also, potentially, in the best interest of Republican officials.

But it’s a dilemma to the declared Republicans in the race, who would likely be shunted aside for whomever local GOP leaders pick to run in the resulting special election if Santos is expelled.

“As a taxpayer and resident of the district, I’d like to see him out yesterday,” Republican candidate Greg Hach told Playbook. “I think he’s done real damage to the integrity of our government.”

But Hach, an attorney, wants Republican voters to have a say.

“As a candidate, I really want to see an open and fair primary,” he said. “I think voters deserve to have a fair choice as to who represents them in Congress.”

Republican Kellen Curry, an Air Force veteran, said he’s been able to roll with the uncertainty.

“What you can control is getting up every day and knocking doors and connecting with voters,” he told Playbook, adding, “Every time I jumped into Afghanistan, I was dropped into uncertainty.”

Another Republican candidate, retired NYPD detective Mike Sapraicone, acknowledged a special election would likely help Republicans.

Nevertheless, the self-described “middle-of-the-road” guy also wants a chance at working in the increasingly dysfunctional chamber.

“I was a New York City detective for 20 years,” he said. “I love the circus. This is up my alley.”

If a Republican holds the seat in a special election, Democrats could face the prospect of running against an incumbent next November for a seat the party views as pivotal for regaining control of the House.

The Democratic field has also been narrowing. Zak Malamed and Josh Lafazan both announced in recent days they would drop their bids and endorsed former Rep. Tom Suozzi.

Suozzi’s biggest rival for the party’s nod, former state Sen. Anna Kaplan, showed no sign of giving up, however. Suozzi vacated the seat in 2022 after an unsuccessful primary for governor.

“People in the district deserve a representative who wants to be there," Kaplan said.

Suozzi’s campaign declined an interview. In a statement posted to social media, Suozzi called Santos’ pending departure a “first step toward restoring some sanity.” — Nick Reisman

 

A message from Healthcare Education Project:

Medicaid pays New York’s hospitals 30% less than the actual cost of their care. But hospitals give all of their patients 100%, each and every day. Medicaid underpayments have already meant cuts to mental health services and maternity care. Albany can fix this injustice: Stop Medicaid underpayments and help hospitals stay open. Tell Albany: Every New Yorker deserves healthcare, no matter their income or ZIP code. End the Medicaid funding crisis now.

 

IT’S FRIDAY. Have a great weekend and thanks for reading! Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.

WHERE’S KATHY? Making an announcement at the SUNY Polytechnic Institute Student Center outside Utica.

WHERE’S ERIC? Making an economic and life sciences-related announcement, attending a plaque dedication for a fallen NYPD officer, speaking at a Police Athletic League business luncheon, delivering remarks at the New York Christian Times’ “reSURGEnce Conference 2023,” holding a public hearing and bill signing for a various pieces of city legislation, speaking at Central Synagogue and delivering remarks at a Hispanic Information and Telecommunications Network Inc. reception.

QUOTE OF THE DAY: “Believe it or not, I do not accept campaign contributions from foreign nationals.” — City Comptroller Brad Lander in a campaign fundraising email, maintaining his reputation as a guy who really annoys the mayor.

 

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ABOVE THE FOLD

Brooklyn Borough President Eric Adams waits to enter The Gutter bowling alley, Friday, Oct. 24, 2014, in Brooklyn's Williamsburg neighborhood, in New York. Craig Spencer, a Doctors Without Borders physician who recently returned to the city after treating Ebola patients in West Africa, visited the bowling alley and later tested positive for the disease. He is being treated at Bellevue Hospital in Manhattan. (AP Photo/John Minchillo)

Mayor Eric Adams's ties with Turkey stretch well into his days as Brooklyn borough president, when he attended nearly 80 events celebrating Turkey. | John Minchillo/AP

HOW ADAMS CULTIVATED TURKISH TIES: As Brooklyn borough president, Eric Adams attended nearly 80 events over eight years to celebrate Turkey — including a flag-raising in 2015, a charity ball in 2018 and a Zoom meeting with the Turkish consul in 2020.

In 2019, he joined Martha Stewart at a gala celebrating Turkish Airlines — a company now caught up in an ongoing FBI probe into Adams’ campaign finances.

At the event, Adams was photographed holding hands with two company officials over a sheet cake; following winning the mayor’s race, he appointed one of those officials — Cenk Öcal — to his transition team.

As mayor last year, Adams delivered virtual remarks at a real estate conference in Istanbul, which was attended by two top city officials.

“Like New York City, Turkey has always been a crossroads of many cultures and a dynamic place to do business,” Adams said in his remarks, which were left off his daily public schedule and have never been reported.

These revelations — uncovered through a POLITICO review of thousands of pages of public schedules from his time as borough president and reams of social media posts — shed new light on Adams’ unusually strong relationship with Turkey, which has drawn scrutiny from federal investigators. — Joe Anuta, Jason Beeferman and Maya Kaufman

More on Adams and his campaign:

Adams’ 2021 campaign listed less about his bundlers than his rivals for mayor did — and fewer than he did as a Brooklyn borough president candidate in 2013. (POLITICO)

Fire chiefs told FBI investigators in April that they were pressured to approve the new Turkish consulate despite safety concerns, an attorney said. (NBC New York)

The FBI is also looking into whether an internal list of property owners seeking approval of fire alarm systems allowed developers to cut the line for inspections. (The City)

 

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WHAT CITY HALL IS READING

NEW YORK, NEW YORK - JUNE 24: Brooklyn Borough President Eric Adams speaks to the media on June 24, 2021 in New York City. Adams, who ran on a tough-on-crime platform, emerged from Primary Day as the front runner in the Democratic mayoral primary with a nearly 10% lead over progressive attorney and activist Maya Wiley. New York City, and much of the nation, is witnessing a   surge in violent gun crimes. (Photo by Spencer Platt/Getty Images)

Mayor Eric Adams's 2021 campaign received donations from an individual involved in a separate FBI probe into illegal foreign political contributions. | Spencer Platt/Getty Images

ADAMS DONOR PROBED IN PAST: An Adams donor who served on the Erdoğan-backed Turkish American National Steering Committee was part of a separate scheme involving illegal foreign political contributions.

Murat Guzel donated $10,100 to Adams in 2018. The campaign refunded $8,100 to him to stay within the contribution limit.

He hasn’t been singled out in the latest investigation, as far as we know, but Guzel has been part of an FBI probe into criminal foreign political contributions. In 2019, he struck a deal with federal prosecutors to be granted immunity while authorities investigated another individual, Imaad Zuberi, for acting as an unregistered agent for the Turkish government, funneling foreign donations and participating in a straw donor scheme.

Guzel was accused of writing Zuberi a $50,000 check to gain special access to Donald Trump’s inaugural committee. In 2019, Zuberi pleaded guilty in Los Angeles and in a second case in New York involving the incident. He was sentenced to 12 years in federal prison.

Guzel, a prolific donor and previous Democratic National Committee official, has railed against the staunchly anti-Erdoğan Gülen movement. Semafor reported that the movement had warned Adams officials about Turkey influencing politicians like Adams.

Guzel did not respond to multiple requests for comment. — Jason Beeferman

AND MORE CUTS TO COME: Adams is enacting $4 billion in budget cuts over the next year and a half — the first 5 percent cuts to agency budgets with two more 5 percent cuts planned in the coming months.

No layoffs — yet — city budget officials said, but some of the cuts revealed by budget documents and a briefing include:

  • Fewer litter baskets on the street in boroughs outside of Manhattan and in residential neighborhoods.
  • Canceling five police academy classes, which could result in 29,000 uniformed NYPD employees on the job by July 2025 — down from about 33,500 now.
  • Reducing city funding to libraries, which the leaders of the system said would mean closing libraries on Sundays.
  • Reducing the number of seats available for city-funded preschool.

The cuts to city services are both fiscal policy and a negotiating tactic as Adams tries to get more money out of the federal and state governments to house and serve migrants.
The cuts as a whole were also roundly slammed by progressive organizations, as well as the City Council … which will now begin an extended budget dance. The city’s fiscal situation isn’t healthy, but you can still expect some cuts to be reversed, and more revenue to be found, with past years as proof. — Jeff Coltin

KEEP ON TRUCKING — City Council member Alexa Avilés celebrated the passage Thursday of her bill to draw new city truck routes.

The legislation mandates the city’s Department of Transportation scrap the old routes, which haven’t barely changed since the 1970s, and draft new ones.

“This is not just a transportation issue — it’s a climate issue, a labor issue, a human rights issue,” said Avilés, who cheered the new law with advocates in Sunset Park.

The measure passed 44-1 on Wednesday, with Brooklyn Council member Kalman Yeger as the lone dissenter.

“To say it's long overdue is a bit of an understatement,” said Zach Miller, director of metro region operations for the Trucking Association of New York. Jason Beeferman

More from the city:

Adams’ administration is not taking steps to fully implement a package of bills that would expand rental voucher eligibility among New Yorkers facing eviction. (City Limits)

— A man exonerated after two decades in prison for murders in Queens that he did not commit will receive a $17.5 million settlement from the city. (The New York Times)

— Schools have few plans to help older students with dyslexia, despite Adams' pledge. (Gothamist)

 

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WHAT ALBANY'S READING

Cars in Manhattan

Law enforcement organizations and CARCO, a company that provides vehicle inspection services, are urging Gov. Kathy Hochul to veto a bill that would allow an insurer to waive the physical inspection of a car. | Photo by Spencer Platt/Getty Images

CAR TALK: Gov. Kathy Hochul is being urged to veto a bill that could change how auto insurers provide coverage. The measure, now on Hochul’s desk, would allow an insurer to waive the physical inspection of a car.

Law enforcement organizations and CARCO, a company that provides inspection services, are urging Hochul to veto it, pointing to the potential of raising insurance premiums as a result of the change.

The Suffolk County Deputy Sheriffs PBA wrote in a letter the current regulations have “led to the apprehension of car thieves and the breakup of a $20 million dollar luxury car fraud ring, and kept damaged or salvage vehicles from fraudulently entering the flow of commerce in New York.”

Hochul rejected a similar measure last year. — Nick Reisman

REPARATIONS RALLY: The caucuses for legislators of color at both the city and state levels are coming together Monday in City Hall Park to urge Hochul to sign a bill creating a commission for reparations for slavery and racial discrimination.

Both the state Senate and Assembly passed the bill in June, but it’s one of many notable measures the governor hasn’t acted on yet. A spokesperson gave the standard answer, saying she’s “reviewing the legislation.”

The state Black, Puerto Rican, Hispanic & Asian Legislative Caucus and the City Council Black, Latino and Asian Caucus shared the plan first with Playbook. They’ll be joined by the New York NAACP, Public Advocate Jumaane Williams and more.

The sponsors, state Sen. James Sanders Jr. and Assemblymember Michaelle Solages, have already held forums across the state, hoping to maintain pressure to approve it. — Jeff Coltin

More from Albany:

— Port Jefferson Deputy Mayor Rebecca Kassay will run for the state Assembly. (TBR News Media)

— Hochul has endorsed the findings of the limousine safety task force. (Times Union)

— Erie County District Attorney John Flynn is expected to resign early next year. (Buffalo News)

FROM THE DELEGATION

Bronx borough President Ruben Diaz Jr.

Former Bronx Borough President Rubén Diaz Jr. will endorse Democratic U.S. Sen. Kirsten Gillibrand in her bid for reelection. | Getty

DIAZ JR. FOR GILLIBRAND: Former Bronx Borough President Rubén Diaz, Jr. is set to endorse Democratic U.S. Sen. Kirsten Gillibrand’s reelection bid.

In a statement to Playbook, Diaz Jr. praised the work the upstate native Gillibrand has done for the Bronx.

“Kirsten has consistently gotten results for Bronx families, from passing a federal anti-gun trafficking law that has already gotten more than a thousand illegal guns off the street to delivering millions for the redesign of the Cross-Bronx expressway, which will ultimately create good-paying jobs in the community,” he said. “Kirsten fights every day for Bronx families and I wholeheartedly support her campaign.”

Gillibrand was first elevated to the Senate in 2009 from the House after Hillary Clinton was nominated to become secretary of state in the Obama administration.

“For years, Rubén and I worked together to bring good jobs, quality education and affordable health care to Bronx families,” she said. “He intricately understands the issue that Bronxites discuss around the kitchen table every night – I’m honored to have his support and look forward to campaigning alongside him.” — Nick Reisman

 

A message from Healthcare Education Project:

All New Yorkers deserve equal access to quality healthcare, no matter their income or ZIP code. Yet today, Medicaid pays New York’s hospitals 30% less than the actual cost of care for the low-income individuals the program covers, including children, the disabled, and seniors. But hospitals give all of their patients 100%, each and every day. Medicaid underpayments have already meant cuts to mental health services and maternity care.

Albany can fix this injustice: Stop Medicaid underpayments and help hospitals stay open. The federal government will pay half the cost of closing the Medicaid funding gap, it’s a huge savings for New York. Tell Albany: End the Medicaid funding crisis now.

 
AROUND NEW YORK

— $1 billion in counterfeit handbags and shoes were seized from a Manhattan storage facility in the largest counterfeit goods bust in U.S. history. (New York Post)

Two upstate farms were searched and excavated by the FBI and NYPD as part of an ongoing investigation into the Gambino crime family. (Times Union)

— A New York City horse-drawn carriage driver has been charged with animal abuse, one year after his horse died. (New York Post)

SOCIAL DATA BY DANIEL LIPPMAN

MAKING MOVES: Katherine Liao has been named managing partner of the NYC office of Squire Patton Boggs.

OUT AND ABOUT: SPOTTED on Thursday night at a discussion on corporate responsibility and global philanthropy hosted at the Midnight Theatre by United Way Worldwide CEO Angela Williams and Ray McGuire, president of Lazard: Mae Cheng, Grace Bonilla, Melissa Potter, Carl Nassib and Bill O’Dowd.  

— SPOTTED on Wednesday night at Michael’s New York at a party for Brian Stelter’s book, “Network of Lies”: Jamie Stelter, Carl Bernstein, David Leavy, Kaitlan Collins, Poppy Harlow, Laura Jarrett, Ari Melber, Jeff Zucker, Allison Gollust, Lawrence O'Donnell, Stephanie Ruhle, Ali Velshi, John Berman, Sara Sidner, Donie O’Sullivan, Jesse Rodriguez, Alicia Menendez, Dan Abrams, Juleanna Glover, Risa Heller, Cindi Berger, Nathaniel Brown, James Stewart, Oliver Darcy, Shawn McCreesh, Tara Palmeri, Noah Shachtman, Chloe Melas, BrianTeta, Carolyn Ryan, Ellen Pollock, Jon Kelly, Garrett Graff, John Avlon, Bill Carter, Michael Calderone, Claire Howorth, Stephen Valentino, Charlotte Alter and Mark Chiusano.

— SPOTTED on Tuesday night for an “Evening with the Smithsonian American Women’s History Museum” event hosted by Tory Burch at her Mercer Street store in Soho: Arianna Huffington, Mona Sinha, Andrea Wishom, Melanie Adams, Jane Abraham, Caryn Zucker, Marina Rust, Pierre Yves Roussel, Jared Cohen, Rebecca Cohen, Stefano Tonchi, Colby Mugrabi, Victoria Hagan and Lucy Feldman.

WELCOME TO THE WORLD: Madeleine (O’Connor) Anderson, deputy director of communications for the Community Preservation Corporation, and CJ Anderson, VP for real estate and mortgage banking for Bank of New York Mellon, on Nov. 1 welcomed Isabel Jacqueline Anderson. PicAnother pic

HAPPY BIRTHDAY: Susan Rice Chris StirewaltHoward Fineman Noah Oppenheim … MSNBC’s Lily CorvoMike DeFilippis of Rep. Nicole Malliotakis’ office … FT’s Felicia Schwartz Christian Jennings

WAS THURSDAY: New York City Council member Keith Powers

Real Estate

See what spending $3,000-per-month on rent can get you in the Lower Hudson Valley. (LoHud)

Office lobbies are being revolutionized into event spaces as commercial landlords try to woo tenants in a tough market. (Crain’s New York Business)

 

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