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Comlinks CEO may be in hot water for political contributions
By NATHAN BROWN, Enterprise Staff Writer
POSTED: April 22, 2008
MALONE — According to evidence obtained by former ComLinks property manager Don Moll, CEO Nancy Reich was reimbursed by the agency for multiple political contributions made in her name, which may have violated federal campaign finance regulations.
ComLinks was founded in 1964 as part of President Lyndon B. Johnson’s War on Poverty. It owns and operates low-income housing units throughout the North Country and has programs to help the hungry, families that need heat, victims of domestic violence and small businesses in need of startup loans. It is a not-for-profit agency, and IRS regulations prohibit non-profit organizations like ComLinks from making campaign contributions.
Moll, who worked for the agency until he was fired in February, has evidence of several such reimbursements. According to the state Board of Elections Web site, Reich donated $250 to state Sen. Betty Little’s campaign in March 2006. She received a $250 reimbursement from the agency around the same time for a “personal donation.”
Reich also attended a dinner for former state Assemblyman Chris Ortloff in October 2001 and was reimbursed $250 for “travel expenses.” The state Board of Elections Web site shows that she made a $250 donation to Chris Ortloff in October 2001. She also received a $500 reimbursement check from the agency for “Republican Reception Reimbursement” on Nov. 29, 2005, about a month before state records show a $500 contribution to the state Senate Republican Campaign Committee.
According to ComLinks spokeswoman Paula McNerney, Reich did not realize what she was doing was illegal and will be repaying the reimbursements to the agency.
“She had bad advice, or was unaware of the regulations,” McNerney said.
The agency made several contributions directly. According to the state Board of Elections Web site, the Community Action Agency of Franklin County donated $350 to the Friends of Betty Little on Oct. 10, 2002, and $100 to the Malone Democratic Committee in February 2006.
Paul Maroun, county legislator from Tupper Lake and attorney for Little, said the contributions to Little from Reich are being returned, although he wasn’t sure whether they had actually been returned yet or would be soon.
“The reason is, we’re not sure if it was an illegal contribution or not,” Maroun said. “We don’t think so, but we didn’t want to have any look of impropriety.”
“I don’t know if they’ve been returned yet, but we are going to return the ones that came in Nancy Reich’s name but were apparently reimbursed by ComLinks,” said Little spokesman Dan Mac Entee. “(Little) talked to an election law attorney about that.”
Mac Entee added that the attorney was unsure about whether Little should return the contribution that came directly from ComLinks and would be investigating that further.
Contact Nathan Brown at 891-2600 ext. 26 or nbrown@adirondackdailyenterprise.com.
ComLinks was founded in 1964 as part of President Lyndon B. Johnson’s War on Poverty. It owns and operates low-income housing units throughout the North Country and has programs to help the hungry, families that need heat, victims of domestic violence and small businesses in need of startup loans. It is a not-for-profit agency, and IRS regulations prohibit non-profit organizations like ComLinks from making campaign contributions.
Moll, who worked for the agency until he was fired in February, has evidence of several such reimbursements. According to the state Board of Elections Web site, Reich donated $250 to state Sen. Betty Little’s campaign in March 2006. She received a $250 reimbursement from the agency around the same time for a “personal donation.”
Reich also attended a dinner for former state Assemblyman Chris Ortloff in October 2001 and was reimbursed $250 for “travel expenses.” The state Board of Elections Web site shows that she made a $250 donation to Chris Ortloff in October 2001. She also received a $500 reimbursement check from the agency for “Republican Reception Reimbursement” on Nov. 29, 2005, about a month before state records show a $500 contribution to the state Senate Republican Campaign Committee.
According to ComLinks spokeswoman Paula McNerney, Reich did not realize what she was doing was illegal and will be repaying the reimbursements to the agency.
“She had bad advice, or was unaware of the regulations,” McNerney said.
The agency made several contributions directly. According to the state Board of Elections Web site, the Community Action Agency of Franklin County donated $350 to the Friends of Betty Little on Oct. 10, 2002, and $100 to the Malone Democratic Committee in February 2006.
Paul Maroun, county legislator from Tupper Lake and attorney for Little, said the contributions to Little from Reich are being returned, although he wasn’t sure whether they had actually been returned yet or would be soon.
“The reason is, we’re not sure if it was an illegal contribution or not,” Maroun said. “We don’t think so, but we didn’t want to have any look of impropriety.”
“I don’t know if they’ve been returned yet, but we are going to return the ones that came in Nancy Reich’s name but were apparently reimbursed by ComLinks,” said Little spokesman Dan Mac Entee. “(Little) talked to an election law attorney about that.”
Mac Entee added that the attorney was unsure about whether Little should return the contribution that came directly from ComLinks and would be investigating that further.
Contact Nathan Brown at 891-2600 ext. 26 or nbrown@adirondackdailyenterprise.com.
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View Comments: | 1-3 | Post a comment
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DeepSpruce
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04-22-08 10:00 PM
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Nathan: Where did you get the information that Paul Maroun was an attorney to Senator Little? I know that Mr. Maroun has publically introduced himself as "counsel" to the Senator, but you should check your facts as to whether he is a duly admitted attorney and counselor at law, ie.: attorney. (As if that were a good thing to be these days!) Really like the new format...bravo ADE!!!
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Jordan
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04-22-08 8:57 PM
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Comlinks CEO Reich isn't the only one who may be in hot water! If the details in this article about direct and indirect political contributions by Comlinks are substantiated, the agency's status as a 501(c)(3) nonprofit organization could be revoked by the Internal Revenue Service. 501(c)(3) organizations are strictly prohibited from engaging in partisan political activity, including contributions to candidates and political parties. This isn't the only issue the IRS would be interested in****links' 2006 IRS Form 990, available for public viewing on the guidestar**** website, states on line 81 that the organization did not make any direct or indirect political contributions during the period 10/1/2005-9/30/2006. In signing the form as Comlinks CEO, Ms. Reich may have perjured herself. The IRS might also have questions for the paid preparer of the form, Douglas S. Wood, CPA.
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DaSoleil
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04-22-08 1:13 PM
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I thought you guys had forgotten about ComLinks. You did that first story about the vote of no confidence, then nothing. The administration at that place is dirty, for sure. I like the new site. Much more user friendly.
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