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At least one employee of Nassau County Off-Track Betting is questioning whether the head of his employee union, a member-elect of the Suffolk County Legislature, should have a say in Suffolk OTB business.
Suffolk, Nassau OTB probe ethics conflict
by David Winzelberg
Published: November 24th, 2013
At least one employee of Nassau County Off-Track Betting is questioning whether the head of his employee union, a member-elect of the Suffolk County Legislature, should have a say in Suffolk OTB business.
Teamsters Local 707 President Kevin McCaffery, whose union represents about 200 Nassau OTB workers, was elected earlier this month to serve as a Suffolk legislator representing the 14th District. In a letter last week, Nassau OTB cashier Jackson Leeds alerted the Suffolk County Ethics Board to McCaffery’s possible conflict of interest.
“As a Suffolk County legislator, his duties are to the people of Suffolk County,” Leeds wrote. “He cannot simultaneously represent the interests of employees of Nassau OTB, a Nassau County public benefit corporation.”
McCaffery told LIBN he doesn’t think the two counties’ OTBs are in competition with each other and he doesn’t see his role as union leader for Nassau OTB workers as a conflict with issues surrounding Suffolk OTB.
“If anything, I have the background of dealing with Nassau OTB, which gives me more insight on the subject than any other legislator out there,” McCaffery said.
When asked if the legislator-elect’s union job appeared to be a conflict of interest, Nassau OTB chief Joseph Cairo said, “If you really want to stretch it. But I don’t see anything that’s apparent to me.”
Cairo added that he’ll instruct the Nassau agency’s counsel to review the situation.
Leeds, a 10-year veteran of Nassau OTB, complained that both union officials and county OTB management have been too focused on the 1,000 video lottery terminals planned for each county’s OTB and they’re not paying enough attention to current operations.
“They never worked behind a window,” Leeds told LIBN. “They’re out of touch with the bettors of Nassau County.”
Internet wagering and dwindling handles – the overall money being wagered – have prompted a consolidation in Nassau OTB’s operations in recent years; there were 15 betting offices in Nassau in 2003, and now there are eight. Suffolk OTB, which has seven branch offices, filed for bankruptcy last year.
These days, according to some analysts, OTB offices exist largely for political patronage – another reason, according to Leeds, that the Nassau union chief shouldn’t mix one business with the other.
“Union leaders should not be politicians,” he said. “OTBs are run by politicians. Being political and doing public good aren’t always incompatible, but they often are.”
This isn’t the first time a Long Island legislator’s OTB ties have become an issue.
In May 2000, Gregory Peterson, then-president of the Nassau OTB, sued to prevent Nassau County Leg. Roger Corbin from voting on appointments to the Nassau OTB’s board of directors. Because Corbin was employed as a branch manager for New York City OTB and a member of Teamsters Local 858, which then represented all employees of Nassau OTB, Peterson alleged Corbin’s legislative role posed a conflict of interest.
A New York Supreme Court judge issued an injunction preventing Corbin from voting on OTB appointments, but Corbin appealed and the lower court’s decision was reversed. The Nassau County Board of Ethics also chimed in, determining by a 3-2 vote that voting on OTB appointments didn’t create a conflict because Corbin didn’t influence policy or engage in labor negotiations.
With McCaffery, some observers say it’s best to proceed with caution.
Anthony Figliola, vice president of Uniondale-based government relations firm Empire Government Strategies, said the legislator-elect may want to recuse himself from any votes concerning Suffolk OTB until the Suffolk County Ethics Board offers an opinion.
“OTB is a political football,” Figliola said. “It’s better to stay out of it, especially if you want to get things done in the Legislature.”
On the heels of pay-to-play corruption scandals that have tarnished the Long Island GOP, the Nassau County Republic Party has elected a one-time disbarred lawyer to be its new leader — and the retirement-age politico intends to collect fat paychecks from three different jobs simultaneously.
Joseph Cairo, 72, the new chairman of the Nassau County Republican Party, is also head of the Nassau County Off-Track Betting Corporation. He’s paid $198,000 at OTB.
The long-time No. 2 to former Nassau GOP boss Joe Mondello had his law license yanked in the 1990s for misusing client funds. His license was reinstated and the politically-connected lawyer now has an established law practice, GOP sources said.
He also has not ruled out collecting a third paycheck from the Nassau GOP.
Mondello, his predecessor, made more than $250,000 last year as GOP boss, and pulled in $1.5 million from his private law practice and real estate investments, records filed with the government show.
At one time, Mondello also simultaneously headed the Nassau GOP and OTB.
Cairo’s law office is in Valley Stream, his OTB’s corporate office is in Mineola and Nassau GOP headquarters is in Westbury.
A Post reporter found him at GOP headquarters.
Cairo said he was not relinquishing his OTB executive job or suspending his law practice after taking the reins of the GOP.
“I’ve been at OTB. This is a crucial time at OTB with possibly sports gambling coming so we’re deeply involved with that there now,” Cairo said.
“This is a political position. My attorneys tell me there is no conflict and I think having a position in a political party is such that it’s been done in the past by people on both sides of the aisle. And I think it’s currently done, too, in some other counties — their elected officials are also party chairmen,” he said.
But watchdogs have long complained that allowing people to simultaneously hold top positions in government and party leadership opens the door to conflicts of interests and potential corruption.
“It’s business as usual. This is an example of the rotten political system in Nassau County,” said George Marlin, who formerly served on the Nassau County Interim Finance Authority, a state agency set up to monitor the county’s shaky finances.
Marlin said the multiple paid gigs for Cairo is remarkable, especially after the Nassau Republicans lost the county executive’s race and the Town of Hempstead supervisor’s race last year amid concerns over corruption.
“They’ve learned nothing,” Marlin said. “They don’t care.”
Cairo chalked up the suspension of his law license to a mistake from the distant past.
“I think that’s something that happened — it was earlier than ‘95, that’s 25 years ago, and I think people who know me know the type of person I am,” he said.
With that, Cairo grabbed a suit jacket from a parked black Cadillac before jumping into the passenger seat of a Jaguar driven by a friend.
Cairo is right about one thing. On Long Island particularly, politicians simultaneously collecting hefty paychecks from top government and political party posts is a time-honored tradition.
The Post reported last week that Rich Schaffer is drawing down a combined $350,000 from three paychecks as head of the Suffolk County Democratic Party, as the full-time Town of Babylon Supervisor and from a law practice that includes representing plumbing contractors.
But Long Island Democrats have their scandals, too.
Gerard Terry, the former North Hempstead Democratic Party chairman, was convicted of tax evasion for failing to report his income that included payments from legal services provided to eight different local government agencies.
New Nassau County Executive Laura Curran, a Democrat who won the election on anti-corruption platform last year, passed executive orders barring county government officials from holding party positions or from accepting gifts.
New York City has a law that bars top government officials from serving as party bosses, following the municipal corruption scandals of the 1980s.
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