Last Power Trip For The Democrats On The Council?

FRANKSMITHSAYSNB EDITORIAL:

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There is a disturbing resolution on the agenda for the Common Council meeting scheduled for Wednesday, October 28.

The majority Democrats are planning to reappoint William Candelori, Louis Amodio, Jr. and Edward Sasso to the Mattabassett District for another 2 year term. What is so troubling is that the current terms for these three expire on November 1st, just 2 days before this current council faces the public in an election.

Is this an act of desperation by a group that sees their days numbered? Are they trying to ram through these appointments in the 11th hour because they believe their re-elections are in trouble and are trying to "stick" the next council with their minions for another two years?

What if the newly elected council doesn't want these three for Directors at Mattabassett, and what if they have good reason to seek change? For example, what if the new council has questions about placing a person who pleaded guilty to tax evasion into a position of power over an estimated $100 million of your tax dollars? (the annual budget is about $10 million, plus Mattabassett is facing a proposed $90 million plant expansion).

The Democratic majority on the Council apparently sees no problem with reappointing William Candelori, the current Chairman of the Mattabassett District, but what vetting procedure has taken place before such a powerful appointment was given, or was the fact that he is a Democrat all that mattered?

Mr. Candelori is a former partner in Colonial Realty--described in a recent article in The Day of New London as: Connecticut's own Madoff-style Ponzi scheme in which local investors lost hundreds of millions of dollars (Loan bribe, or defense strategy, by David Collins, 4/12/2009).

More on Mr. Candelori's background:

Mr. Candelori reportedly pleaded guilty to tax evasion in 1992. The New York Times Article on the subject:

"Late last year. William P. Candelori, a former state lawmaker and executive at Colonial, pleaded guilty to Federal tax evasion for failing to report hundreds of thousands in income" ("2 Partners In Investment Plead Guilty" The New York Times, June 9, 1993).

Here's what the SEC reports on Mr. Candelori:

SEC NEWS DIGEST, August 31, 1995:

"WILLIAM CANDELORI BARRED

The Commission announced the entry of an order instituting administrative proceedings against William P. Candelori (Candelori) and the simultaneous acceptance of his offer of settlement. Candelori is a former associated person of Colonial Equities Corp., a broker-dealer previously registered with the Commission. The Order bars Candelori from association with any broker, dealer, municipal securities dealer, investment adviser or investment company.

The Commission found that on August 22 the Honorable T. F. Gilroy Daly of the U.S. District Court for the District of Connecticut enjoined Candelori from further violations of certain registration and antifraud provisions of the securities laws. The complaint, filed on March 9 against Candelori and six others, alleges violations of several antifraud and securities registration provisions of the federal securities laws in connection with a fraudulent unregistered public offering by Colonial Realty Company of 1200 limited partnership units in the Colonial Constitution Limited Partnership during 1989 and 1990. Candelori consented to the injunctive order without admitting or denying the complaint's allegations. The administrative order against Candelori was also based on his prior criminal conviction. (rel. 34-36170)."

The Day of New London also reports that Candelori is identified in a lawsuit in Superior Court as holding an interest in a Groton property that was reportedly used to secure a loan on behalf of then Mashantucket Pequot Tribal Council Chairman Michael Thomas. As reported in The Day:

...Not only does the lawsuit suggest that Thomas may have turned out to be a bad credit risk, but it has shaken out a strange cast of characters with whom the tribal chairman has been doing business, some of them marquee criminal names in Connecticut.

The bank loan to Thomas, as it grew in size over time, was eventually secured by a mortgage of a 12-acre commercial property at Route 12 and Gungywamp Road in Groton, property Thomas' associates had planned to develop into a 118-unit apartment project.

According to Sovereign, the investors with an interest in that property include some of the principal characters in the collapse of Colonial Realty in the 1990s, Connecticut's own Madoff-style Ponzi scheme in which local investors lost hundreds of millions of dollars.

Among those with an interest in the Groton property that was put up to secure Thomas' loan, the bank said in court papers, are Jonathan Googel, a Colonial founder who pleaded guilty in federal court to wire fraud, bank fraud and tax fraud; Kevin Sisti, the son of another Colonial founder, who pleaded guilty to a conspiracy charge for taking loan proceeds for his father, and William P. Candelori, a former state lawmaker and Colonial executive, who pleaded guilty to federal tax evasion.

These and others have all been named in new complaints filed in Sovereign's suit against Thomas, which is drawing defendants and their lawyers like cloud banks to a gathering storm.

"It's a laundry list of convicted felons," one person familiar with the case said of the growing list of defendants.

That includes Thomas himself, who was convicted as a young man on drug-dealing charges in Rhode Island....(Loan, bribe, or defense strategy? by David Collins, 4/12/2009 The Day).

Closer to home, Mr. Candelori continues to be delinquent in his real estate taxes for his home. As was previously reported on this blog, Candelori was delinquent last year as well. According to the records at the Tax Collector's Office, Candelori paid his 2008 taxes in July 2009, and currently owes $2,477.43 for his 2009 taxes that were due on July 1, 2009.

Despite the issues that may raise questions about Mr. Candelori's appointment, should any appointments be made by a council that faces an election a few days later?
What is the hurry? These 3 Directors continue to serve until they are reappointed, or their replacements are appointed, so why would council members who may find themselves out of office the following week be making appointments for director's who will serve their replacements on the council?

The sensible action would be for this council to table these appointments until the public is given their chance to elect a council for another two years. Whomsoever wins the election, the new council can simply make the appointments for these three positions at their next meeting.

If this council can't do the right thing by tabling these appointments, then Mayor Stewart should hold them accountable by vetoing these, or any other appointments they may plan to ram through on their way out the door.