July 17, 2015

By First Class Mail and C-Access

Sal F. Albanese
957 78th Street
Brooklyn, NY 11228
John H. ODonnell
32 Turner Road
Pearl River, NY 10965
Sal 2013
32 Turner Road
Pearl River, NY 10965
Notice of Alleged Violations and Recommended Penalties
The staff of the Campaign Finance Board (the Board) has reviewed the
response of Sal Albaneses 2013 election campaign (the Campaign) to the
Draft Audit Report. The staff recommends that the Board determine that the
Campaign violated the Campaign Finance Act and Board Rules and that the
Campaign must pay $10,675 in penalties (please see the enclosed Penalty
Notice).
As described in greater detail in the enclosed Penalty Notice and Notice
Response Form, the Board will make a final determination regarding any
possible violations of the Campaign Finance Act or Board Rules and penalty
assessments. Please refer to the enclosed documents for instructions on
responding to the Board staff s recommendations. You must respond no
later than August 14, 2015. Your response must include all supporting
explanations, documentation or evidence.
Failure to respond in a timely fashion will constitute a waiver of any rights you
have to participate in the post-election enforcement process, including the
right to a hearing before the Board or an administrative law judge. If you need
an extension of time to respond, you must submit a written request to Mark
Griffin, Associate Counsel, before the response deadline. Only those requests
which demonstrate extenuating circumstances will be considered; routine

requests for extensions will be denied. If you have questions, please contact
Mark Griffin, at (212) 409-1863, or mgriffin@nyccfb.info.

Hillary Weisman
Director, Legal Unit
New York City Campaign Finance Board
HW/MPG

cc:

Amy Loprest, Executive Director

Sue Ellen Dodell, General Counsel
Mark Griffin, Associate Counsel
Nailaja Mingo, Auditor
Selene Muoz, Senior Auditor

Enclosed:
Penalty Notice
Notice Response Form

Alleged Violations and Recommended Penalties for

Sal F. Albaneses 2013 Election Campaign
(Penalty Notice)
Candidate ID: AU
July 17, 2015
The New York City Campaign Finance Board (the Board) staff (the
Board staff ) recommends in this Penalty Notice that the Board issue a
determination that the Sal F. Albanese 2013 election campaign committed
the below-listed violations of the New York City Campaign Finance Act
(the Act)1 and Board Rules and must pay penalties of $10,675, for which
the Candidate, Sal F. Albanese (Albanese), the Treasurer, John H.
ODonnell, and the Committee, Sal 2013 (collectively, the Campaign), will
be jointly and severally liable.2
The Board staff s recommendations are subject to change based on the
Campaigns response to this Notice. The Board may assess civil penalties of
up to $10,000 for most violations of the Act or Board Rules.3 Unless noted
otherwise, each of the below penalty recommendations is made in
accordance with the Guidelines for Staff Recommendations for Penalty Assessments
for Certain Violations for the 2013 elections (the Penalty Guidelines), which
is available on the Boards website. The Board may assess penalties that
are higher or lower than what is recommended in this notice.

New York City Administrative Code (Admin. Code) 3-701et seq.

See Admin. Code 3-710.5, 3-711(1); CFB Rule 7-02(c). In other words, the Board shall
have the option of collecting this amount from the Candidate, Treasurer, or Committee, or
any combination of the three.
3 See New York City Charter (NYC Charter) 1052(a)(15)(d); Admin. Code 3-711. The
Board may assess penalties in excess of $10,000 for some violations, such as exceeding the
expenditure limit or failing to respond to the draft audit report. See, e.g., Admin. Code
3-711(2).
1
2

Failing to report a merchant account used

for campaign purposes.
See Draft Audit Report Finding # 1

$250

Campaigns are required to establish and maintain a separate campaign bank

account and to report all bank, merchant, and depository accounts used for
campaign purposes. See Admin. Code 3-703(1)(c), (d), (g), (6), (10), (11),
3-719(1); Board Rules 1-11(d), 2-06, 4-01(f).
Records show that the Campaign failed to report a CyberSource merchant
account (account ending in 2973).
The Board staff recommends a penalty of $250 for this violation.
Reducing or eliminating the penalty: the Campaign may be able to
reduce this penalty by completing a Change of Bank Account Form to
amend its Certification to include all missing account information. The
form can be downloaded at
http://www.nyccfb.info/PDF/forms/change_of_bank_account.pdf.
Failing to provide merchant account
statements.
See Draft Audit Report Finding # 2(a)

$50

Campaigns are required to provide copies of all bank and merchant

account statements for accounts used for each election. See Admin. Code
3-703(1)(d), (g), (11), 3-719(1); Board Rule 4-01(f).
The Campaign failed to provide merchant account statements for its
CyberSource merchant account (account ending in 2973) for November
2013 through January 2014. It failed to provide merchant account
statements for its American Express merchant account (account ending in
7582) for January 2013 and April 2013.
The Board staff recommends total penalties of $50 for these violations.
Reducing or eliminating the penalty: the Campaign may be able to
reduce this penalty by providing the merchant account statements for its
CyberSource account for November 2013 through January 2014, and for its
American Express account for January 2013 and April 2013.

Failing to file a daily pre-election

disclosure statement.
See Draft Audit Report Finding # 3

$250

Aggregate contributions and loans from a single source in excess of $1,000,

and aggregate expenditures in excess of $20,000, received or made within
14 days of an election, must be disclosed to the Board within 24 hours. See
Admin. Code 3-703(6), (12), 3-708(8), 3-719(1); Board Rules 1-09, 302(e).
The Campaign received a $30,000 loan (Transaction ID 12/I/R0003558)
from Albanese on September 9, 2013 which it failed to report in a daily preelection disclosure statement.
The Board staff recommends a penalty of $250 for this violation.
Accepting an over-the-limit
contribution.
See Draft Audit Report Finding # 5

$10,000

Campaigns are prohibited from accepting contributions in excess of the

applicable contribution limit. See Admin. Code 3-702(8), 3-703(1)(f), (11),
3-719(2); Board Rules 1-04(c)(1), (h), 1-07(c). A loan not repaid by the day
of the election is considered a contribution subject to the contribution
limit. Loans that are forgiven or settled for less than the amount owed are
also considered contributions. See Admin. Code 3-702(8); Board Rules 105(a), (j).
Under the Act, Albanese was permitted to contribute up to three times the
$4,950 limit, or $14,850, to his campaign. See Admin. Code 3-703(1)(h).
He made three $4,950 contributions to the Campaign in January 2013. In
addition, he made three loans to the Campaign: $100,000 (Transaction ID
6/I/R0000168) on December 12, 2012, $25,000 (Transaction ID
11/I/R0003404) on August 10, 2013, and $30,000 (Transaction ID
12/I/R0003558) on September 9, 2013. The Campaign failed to repay the
loans and therefore Albaneses contributions to the Campaign exceeded the
permissible limit by $155,000. See Exhibit 1.
The Board staff recommends a penalty of $10,000 for this violation.

Accepting a contribution from a

corporation.
See Draft Audit Report Finding # 6

$125

Campaigns may not accept, either directly or by transfer, a campaign

contribution or loan, or guarantee or other security for such loan, from any
corporation, limited liability company (LLC), or partnership. See N.Y.C.
Charter 1052(a)(13); Admin. Code 3-702(8), 3-703(1)(l), 3-719(2)(b);
Board Rules 1-04(c)(1), (e), (g), 1-05.
The Campaign accepted a $250 contribution (Transaction ID
7/ABC/R0000919) from John M. Giordano P.C. on March 6, 2013, and
refunded it after being notified by the Board staff.
The Board staff recommends a penalty of $125 for this violation.
Conclusion & Instructions for Responding
You have the right to contest any recommendation in this Notice by:
a) completing and submitting the enclosed Notice Response Form (the
Response Form) and b) submitting a detailed explanation of your
grounds for contesting the recommendation along with relevant evidence
or documentation. You also have the right to an informal hearing directly
before the Board, or a formal hearing before the New York City Office of
Administrative Tribunals and Hearings (OATH). In an informal hearing,
you or a representative make a presentation directly to the Board, which
usually makes a decision the same day. Formal hearings are before an
OATH judge who conducts a formal adjudication, a proceeding similar to a
trial, in accordance with the requirements for adjudications contained in
section 1046 of the New York City Charter. The OATH judge then
submits a non-binding recommendation to the Board. Further information
regarding hearings is available in the enclosed Notice Response Form.
Complete and sign the enclosed Notice Response Form to indicate whether
you will be challenging any of the Board staff s recommendations, and
whether you are requesting a hearing either before the Board or OATH.
Please submit the Notice Response Form, with a substantive written
response for each recommendation you are contesting and copies of any
supporting documents, to the Associate Counsel listed below. Your
response must be submitted no later than August 14, 2015. Failure to
submit a timely response will constitute a waiver of your right to contest

any recommendation in this Notice, and your right to a hearing. If you have
any questions, please contact Mark Griffin, Associate Counsel, at (212) 4091863 or mgriffin@nyccfb.info.

Hillary Weisman
Director, Legal Unit
New York City Campaign Finance Board

Exhibit attached:
1.

Contributions over the limit.

Exhibit 1

Exhibit 1
Sal 2013
Contributions Over the Limit
(see Alleged Violation #4)

Name
Albanese, Sal F
Albanese, Sal F
Albanese, Sal F
Albanese, Sal F
Albanese, Sal F
Albanese, Sal F

Statement/Schedule/
Transaction ID
6/ABC/R0000071
6/ABC/R0000077
6/ABC/R0000076
6/I/R0000168
11/I/R0003404
12/I/R0003558

Transaction Type

Incurred/
Received/
Refunded Date

Monetary Contribution
Monetary Contribution
Monetary Contribution
Loan
Loan
Loan

01/09/13
01/11/13
01/11/13
12/12/12
08/10/13
09/09/13

Notes:
(1) The contribution limit for the candidate is three times the office limit of $4,950.00, or $14,850.00.

Amount Notes
$4,950.00
$4,950.00
$4,950.00
$100,000.00
$25,000.00
$30,000.00

Total
Office Limit

$169,850.00
$14,850.00 (1)

Amount Over the Limit

$155,000.00

Notice Response Form

Instructions & notice of your rights
You have the right to contest any recommendation in the enclosed Public
Funds or Penalty Notice by: a) completing and submitting this Notice
Response Form (the Response Form) and b) submitting a detailed
explanation of your grounds for contesting the recommendation along with
relevant evidence or documentation. You also have the right to an informal
hearing directly before the Board, or a formal hearing before the New York
City Office of Administrative Tribunals and Hearings (OATH). In an
informal hearing, you or a representative make a presentation directly to the
Board, which usually makes a decision the same day. Formal hearings are
before an OATH judge who conducts a formal adjudication, a proceeding
similar to a trial, in accordance with the requirements for adjudications
contained in section 1046 of the New York City Charter. The OATH judge
then submits a non-binding recommendation to the Board. Further
information regarding hearings is available below.
To respond to the enclosed Notice you must complete, sign and date this
Response Form, indicating which recommendations you will be contesting or
not contesting.
(1) If you choose NOT to contest any of the recommendations in the
Notice, send the completed Response Form to the Associate Counsel
listed below.
(2) If you choose to contest one or more recommendations in the
Notice, send the completed Response Form, along with a detailed
written explanation and all supporting documentation or evidence
describing your reasons for contesting the recommendations to the
Associate Counsel listed below. You may not request a formal or
informal hearing if you do not provide a written response.
Failure to submit a completed Response Form and all supporting explanations,
documentation, or evidence to the Board, by August 14, 2015 (the Response
Deadline) constitutes a waiver of your right to respond to the Notice and
your right to a hearing.
If you require additional time to respond, submit a request in writing
immediately to the Associate Counsel listed below. Only those requests which
demonstrate extenuating circumstances will be considered; routine requests for
extensions will be denied.

New York City Campaign Finance Board

Notice Response Form
Sal F. Albanese 2013 Elections
Candidate ID: AU
Penalty Recommendation
Carefully review the Penalty Notice before completing this section. The
Candidate, Treasurer and Committee will be responsible for paying any
penalties assessed by the Board. Please indicate whether you will or will not
contest each penalty recommendation by checking () the appropriate box.
Please remember that if you are contesting any recommendation, this
Response Form must be accompanied by a detailed written explanation and all
supporting documentation or evidence.

Recommended Violation

Recommended
Penalty

1. Failing to report a merchant account used

for campaign purposes.

$250

2. Failing to provide merchant account

statements.

$50

3. Failing to file a daily pre-election disclosure

statement.

$250

4. Accepting an over-the-limit contribution.

$10,000

5. Accepting a contribution from a

corporation.

$125

I will
contest this

I will NOT
contest this

New York City Campaign Finance Board

Notice Response Form
Sal F. Albanese 2013 Elections
Candidate ID: AU
Requesting a hearing
If you wish to request a hearing, you must choose between either a formal or
informal hearing. Differences are summarized below. Please make your selection
on the following page.
Informal Board Hearing
Formal OATH Hearing

Who do I
appear
before?

A minimum of three members of the

Board, a nonpartisan body comprised of
five members.

An Administrative Law Judge (an ALJ)

from the New York City Office of
Administrative Trials and Hearings
(OATH). More information about
OATH can be found on its website,
www.nyc.gov/oath.

When is the
hearing?

Your hearing date is listed on the following

page. Extensions may be provided for
good cause.

In consultation with the parties, OATH

schedules the hearing; it may be weeks or
months after the submission of a response.

How long is
the hearing?

Your hearing before the Board will likely

last 15 minutes to an hour.

Your hearing may last for a few hours or

days, or could take place during a number
of sessions spread over several weeks.

What are
the hearing
procedures?

The procedural rules are simple. The Board

will ask you to explain your side of the
story and may ask you questions. You may
bring witnesses or a representative,
including an attorney, of your choosing. All
written submissions must be timely
submitted with this Response Form to
ensure that the Board will consider it.

Formal hearings are similar to a court trial

and subject to the formal procedural
requirements of section 1046 of the NYC
Charter, Chapter 12 of the Board Rules
and the OATH Rules of Practice. You are
encouraged to review the rules carefully
and consult an attorney if requesting a
formal hearing.

In most cases, you will learn of the Boards

determination on the same day as the
hearing.

Typically, weeks or months after the formal

hearing ends. After the hearing, the ALJ
issues a recommended determination. The
ALJs recommendation is not binding
on the Board. The Board considers the
OATH recommendation (and written
arguments submitted by the parties or
Board staff, if any) and issues the final
determination.

When do I
get the
Boards
decision?

New York City Campaign Finance Board

Notice Response Form
Sal F. Albanese 2013 Elections
Candidate ID: AU
Please indicate your hearing selection by checking () the appropriate box
(check only one box):
I waive my right to a hearing. I understand that I may still contest any of
the allegations in the enclosed Notice by submitting, along with this form, a
detailed written explanation and all supporting documentation or evidence
describing my grounds for contesting the allegations to the Board by the
Response Deadline. (Please also check this box if you are not contesting any
of the recommendations in the enclosed Notice.)
I request an informal hearing before the Board. I understand that I will
speak directly before the Board in the informal manner described in the
chart above, and that I waive the right to a formal OATH hearing and the
adjudication procedures of section 1046 of the NYC Charter. I further
understand that, along with this form, I must also submit detailed written
explanations and all supporting documentation or evidence describing my
grounds for contesting any allegations to the Board by the Response
Deadline. I acknowledge that my hearing is scheduled for:
Thursday, September 10, 2015 10:00 a.m.
100 Church Street, 12th Floor
New York, NY 10007
(please bring I.D. and allow time to get through security)
I request a formal OATH hearing. I understand that the formal hearing
will be conducted by OATH in accordance with the procedural requirements
of section 1046 of the NYC Charter, Chapter 12 of the Board Rules and the
OATH Rules of Practice. I further understand that Board staff cannot
assist me in complying with these procedural requirements, and that
the ALJs final recommendation will not be binding on the Board.
I further agree to accept service for any and all proceedings related to the
formal hearing at the following address:

New York City Campaign Finance Board

Notice Response Form
Sal F. Albanese 2013 Elections
Candidate ID: AU
Candidate and Treasurer must sign, print, and date below:

Candidate Signature

Treasurer Signature

Print Name

Print Name

Date

Date

We strongly prefer that the Candidate and the Treasurer prepare one response. If
this is not possible, you each must submit a response and provide a detailed
explanation as to why one response is not possible: I am the
candidate/treasurer (circle one) and am responding separately from the
candidate/treasurer (circle one) because (fill in detailed reasons below and add
more pages if necessary):
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

Signature

Print Name

Return your complete response, no later than the Response

Deadline, August 14, 2015, to:
Mark Griffin, Associate Counsel, New York City Campaign Finance Board,
100 Church Street, 12th Floor, New York, NY 10007, mgriffin@nyccfb.info.