TABLE OF CONTENTS

EXECUTIVE SUMMARY GREATEST HITS ETHICS Can you say pay-to-play? State's political system needs an overhaul Ethics proposal Support for DeStefano gubernatorial campaign crosses party lines Funny, but this sounds like a quid pro quo On why GOPers can support him THE MONEY SHOT: SAYING THAT IT IS CURRENTLY LEGAL AIN'T SAYING MUCH City employees School employees School construction Downtown developers Scientific games corp. District 1199/SEIU Nxegen maybe this explains his energy plan DeStefano outspending Schiavone Builders help fund DeStefano could this help explain his support for the Kelo ruling? Financial, building and legal firms top DeStefano donor list Mayoral campaigns expected to raise record amount of cash List of contributors called 'outrageous' by primary rival DeStefano defends city workers donations Fund raising tops $1m in elm city mayoral race You will be disappointed THE CAST OF CHARACTERS Livable city initiative an overview Primary taxpayer-backed slush fund for corrupt staff & political players LCI and New Life Corp. Misappropriated over $300k in federal funds New Haven and Alvarado settle Andrea Jackson-Brooks 'Huge credit risk' DeStefano passes the buck Cashing out Salvatore Brancati Brancati bows out as development director Kickbacks Finder's fees for steering government contracts 10 15 24 24 25 26 27 27 27

29 30 30 30 31 31 32 32 32 33 35 36 36 37 37 38 39 44 44 44 45 46 47 47 47 48 49 49 50 52

3 $250k to politically connected family that owed city back taxes $2,500 to process taxpayer backed loans More government $$$ to aid tax deadbeat Textbook graft: how sal made $35k on the yale-nh hospital deal Never did outside work on city time? Rev. Boise Kimber Destefano's favorite felon Steps down as chair of fire commission over racial slur Consulting fees 'demanded?' Wellhe was convicted of stealing an elderly woman's funeral money Refused to submits records Bob Matthews Fusco corp. -- connected builders & fundraisers had their hands in many pies Pushed for mall project Major fundraising team Trying to get more $$ after deal Breen capital New haven a step closer to private tax collections 'Destefano's administration played politics in the Breen deal' Ed Marcus Hit & run: small town, big-city conflict Marcus' money machine Hardball tax collector draws fire Joe Nacca & Joe DeMatteo Two convicted felons get city $$ then operate biz that pirates DVD's & CD's Convicted felon gives DeStefano 'good political advice' Not to be outdone, the other felon is also a 'political ally' Recycling? No reselling Not just a felon, but a tax deadbeat as well Nick Balletto Fined for violating state election law DeStefano PAC designed to conceal donors & circumvent finance laws forced to return $$ Nicholas Onofrio Son of Former Mob Boss Loan sharking & mortgage scams Long track record Frank Altieri Double dipper taxpayer funded fundraiser who skirted ethics Legality of alteri arranged contracts questioned Neil Avallone classic double dipper Wendell Harp, Ted Baldwin & 187 Dixwell Circumventing standard operating procedure Was property overvalued by $435k? 52 53 53 54 55 56 56 57 57 57 59 60 60 60 61 62 62 63 64 64 65 69 71 71 71 72 72 72 74 74 74 74 75 75 76 77 77 78 80 81 81 81

4 Harp owed city $226,555 in back taxes & misused another $200k Safety hazards at house that had been under construction for over a decade Frank Ruocco Ruocco firm fined $2k for Brancati's illegal lobbying FBI investigation of HUD bribe: DeStefano ok'ed payment as staffer New haven is the target of inquiry Pay raises DeStefano wants more money no he doesn't yes he does Was politics the motive? Board to vote on raises CORRUPT PRACTICES Firefighter union sues city over test certification 2 arrested in 5-year scam DeStefano aides honor contract in violation of city charter DeStefano admits 'a big time mistake,' pays anyway 'Repeated failures' to meet deadlines costs city big time The battle over $61,797 in cost overruns Contracts Panel oks $61,000 for lawyers Split board oks paying legal fees Housing scandals Housing New haven projects crumble as residents wonder what future holds Feds suspend city housing officials for conspiring to cheat on inspections Housing funds under scrutiny Quasi-city agency yet DeStefano appointees Fair haven development corp. just another agency under scrutiny in the FBI's ever-growing investigation of DeStefano administration corruption Free johnny: what do john DeStefano and the black panthers have in common? Summer 1998: scrambling to contain a growing scandal 'Serious problems' with canto paperwork He is the mayor and he didn't realize ? Canto 'politically favored developer' was active with Dem party DeStefano campaign workers charged with vote fraud 'Overthrow entrenched' opponents through vote fraud THE MALL DEBACLE State faults own study of mall official: report based on flawed model

81 82 83 83 85 85 86 86 87 88 89 90 91 91 92 92 94 94 94 95 95 98 98 98 99

99 100 100 100 101 102 104 105 106 106

5 Firm's role in new haven mall criticized Elm City leaders high on mall plan Firm's role in new haven mall criticized DeStefano gets maximum contributions from member of Fusco family STONEWALLING Mayor drops bid to change state FOI law DeStefano responds to mall-plan queries Lawmaker wants info on mall deal Looney, Mayor bicker on mall demise Looney not happy with mall papers FOI says city guilty in stonewalling Looney wont pursue FOI case over demise of mall project Mall delays cost city $1.8 million this year, officials contend Mayor, 21 employees subpoenaed for FOI hearing Second mall hearing a case of dj vu Westfield, city blast each other at FOI hearing CITY WORKERS COMPLAIN OF ABUSES NAACP enlisted Deputy city counsels resignation demanded Tax deadbeats still allowed to tow cars for NH Tax case moves at snail's pace SCHOOL BOARD CONTRACT - BATTLE OVER IKON IKON gets disputed copying contract for school board Board votes to restart bidding over contract School board gets ok to pay ikon for now POLICE SCANDALS Blaming the cops Tolnay and the Hispanic ministers Destefanos meddling costs NH $5mill Officer wins $5m case; city weighs appeal Cop sues chief over pastor incident Cops mayor, chief 'sold us out' Mayor apologizes for arrests 1,000 protesters rally over ministers' arrests Civilian review board Police shootings looking to blame the cops City hall wants answers on gunplay Mayor wants aldermen to pick 7 for police panel Cops oppose widening panels power Officer cleared in Jones case further probes unlikely in 1997 fatal shooting 'Police don't have to win every fight' 107 108 109 109 110 110 111 112 114 116 117 118 118 119 120 121 122 122 123 125 127 128 128 130 131 133 133 133 134 134 136 137 139 140 142 142 143 144 145 146 147

6 Anti-gang legislation is just part of the solution, lawmakers told Editorial: Ortiz can weather no-confidence vote Police scandal Detectives obstruct murder investigation Officer in controversy plans to retire Grand jury finds against detective New haven detectives suspended with pay Disappearing act Chief Pastore has child with convicted prostitute Besieged, Pastore resigns MEA CULPAS DeStefano owns up to big-time mistake DeStefano orders review of citys pact ordinances DeStefano corrects mistake in campaign finance filings 'I should have known better' For 187 Dixwell 'I screwed up:' DeStefano comes clean ECONOMY `Living wage' laws called successful DeStefano urges new system of corporate lures jobs program proposed Jobs Program Proposed Democrats push tax hike for income over $53,000 Mayors warn of budget pain murder rates to go up!?!? Property tax system is failing Trickle-down economics -- Connecticut-style DeStefano urges tax reform New Haven mayor taxes for better service -- raising his profile Municipal officials to legislature: help find ways to create jobs State missed chance to reform property tax, mayors say Town asked to join suit over taxes SOCIAL Healthcare Two mayors shouldn't seek more attention DeStefano slams Wal-Mart TV: ads attack retailer A hot campaign issue Health insurance idea from DeStefano tax incentives for employers Education Teaching kids real virtue doesn't mean safe sex LTE: a good move for Hartford schools New Haven stands out in Connecticut's school construction boom New Haven creates academic magnetism Schools' renovation at issue Billion-dollar shot in the arm building boom 147 148 150 150 150 151 152 152 155 155 157 158 159 160 161 163 163 168 168 168 170 170 172 172 173 173 174 176 176 177 178 178 178 179 180 181 183 183 183 184 185 186 186

7 Attacks demands of CMT Hartford's test goals: too competitive? State defends its list of underperforming schools Failing schools named Sheff plaintiffs question school construction Act I: the decision act ii: the response school heads get script for sheff verdict Compassion prevails on this court of kids judging kids New haven to put the brakes on skipping school City may join efforts to overturn sheff ruling Middle school closes book on twain classic New Haven financing order upheld New Haven told to spend more on schools New Haven savings bank Bank's disputed proposal wins state approval Bank tries to quell protests Bank merger still a hot topic protesters say boycott a strong possibility Bank's proposal draws outrage Bank's plans criticized at hearing in Hamden New Haven Bank revs up Coliseum stories Fans on a crusade to save coliseum arena Meeting not yet set New goals, and more punch coliseum also has eyes on pride New Haven still working out details to bring in ahl team a hockey town without a team tradition is there in New Haven Yale cancer center Cancer center deal signed new facility to be ready by fall 2009 The fight to cure a community's ills how an innovative alliance forced Yale-New Haven hospital to help its impoverished neighborhood as part of a plan for a new cancer center Cancer center a go in New Haven agreement LET: cancer center: do it right Cancer center stuck in neutral State approves cancer center plans Don't delay cancer center Yale finds itself in fight over cancer center Environment Energy signup wraps up town will receive four free solar panels City offers parking discount to fuel-efficient car owners Bill seeks to slow sprawl New computer maps show loss of land in every town to development 187 187 188 188 189 190 190 191 192 192 193 193 196 196 196 197 197 198 199 200 200 200 200 202 203 203

204 206 207 208 210 210 211 212 212 212 213 215

8 Smart Growth Message Pushing Green Property tax structure destroying landscape Study: development drives disparity coalition studies effects on poverty, environment Another sooty plant Don't sacrifice state's oysters for Long Island energy Labor Mayors make their pitch to skeptical labor unions hospital's rigidity holds up progress Yale hospital's food workers return to job without pact At Yale, workers picket in the cold Labor peace at Yale, at last Abortion Plan B bill dies at capitol panel fails to vote on contraceptive measure Rivals blast rell stance catholic hospitals, rape victims at issue Access to contraceptive urged advocates, officials want `morning-after pill' widely available URBAN Eminent domain The bulldozer stops here: john DeStefano supports eminent domain and dont let him tell you otherwise. I think the decision is a sound decision Crime/police stories DeStefano and community policing Police mixed on crime plan Night basketball money prompts debate City to start campaign against gun violence Use of traffic cameras urged New Haven keeps eye on harbor while touting cameras arrests in shootings The manhunt is on Fatal gunplay called bungled gang hit Crime rates like a roller coaster Violent crime increases Crime down in city from last year Murder, shooting stats up slightly Crime statistics please elm city officials 2003 city murder rate hits record low; but shootings up 30 percent Murder rate approaching record low 214 215 216 216 217 217 218 219 219 220 220 221 221 221 222 223 223 223 224 226 226 227 227 228 229 230 231 231 232 232 233 235 236 237 238

9 City sees spike in homicides Immigration It's not the gaffe, it's the cover up Left wing positions Opposed to the death penalty even for terrorists DeStefano has found religion: The pay-to-play king now wants clean elections At a loss on the hill Going green: Railing against cars The clean-air mayor--and the 13 mile-per-gallon mayoral SUV Dodd, DeStefano call for extension of weapons ban City-owned electric utility could offer competitive rates Mayors lobby for increase in state taxes Same-sex partners gain city benefits School vouchers IDs to illegal immigrants DeStefano retreats, sort of, from a plan to give IDs to undocumented immigrants. DeStefano admits he goofed on IDs Undocumented workers in New Haven find support DeStefano pushes for 'working wage' A commitment to moral minimum wage DeStefano unveils energy strategy Rell spokesman Richard Harris said the proposal is wrongheaded. DeStefano plan would provide health care for all Education Destefano's pay equity initiative Energy Venezuelan oil, political heat Venezuela oil offer puts heat on rell bush rate shock insulated by phase-in criticism Attacks on Rell Rell unveils reform plan Speech met with partisan response State of the state the Rell budget Democrats take turn in election spotlight Mayors decry budget plans Cities disappointment 242 242 242 244 244 244 248 246 247 248 249 251 251 252 252 253 253 254 255 255 256 257 257 259 259 261 261 261 263 263 263 264 264 265 265

10

EXECUTIVE SUMMARY
John DeStefanos wide margin of victory in general elections masks a number of failures of his tenure as Mayor of New Haven. In 2005, DeStefano won his 7th term as mayor, but corruption and waste in his administration, the questionable ethics of his campaigns, as well as crime on the streets, have been significant problems throughout his time in office. Numerous economic development engines for New Haven, such as the Coliseum, Waterfront mall, and Yale Cancer Center have been torn down, abandoned, or delayed during DeStefanos administration. DeStefano consistently pushed for more tax dollarsand higher state taxes from Hartford to help fund city projects. DeStefano sits on the Board of Education in New Haven, and despite a $1.2 billion investment in rebuilding all 46 schools within the city, the citys school children still have below average scores on the Connecticut Mastery Test. DeStefano strongly supports smart growth principles for Connecticut in order to protect the environment and quality of life, as well as to prevent Connecticuts tax structure, so heavily reliant on property taxes, from caving in on itself. DeStefano, a Catholic, supports forcing Catholic hospitals to offer the Plan B emergency contraceptive pill to rape victims. Prior to his election as mayor, DeStefano ran unsuccessfully in the 1989 Democratic primary, losing to John Daniels, the citys first African American mayor. The issue of race was a factor in that election. Race apparently plays a factor in many political decisions in New Haven, as can be witnessed by DeStefano's loyalty to former Police Chief Francisco Ortiz and Reverend Kimber Boise who DeStefano appointed to New Haven's Fire Commission despite Boise's felony conviction for stealing money from an elderly woman. Prior to running for election, DeStefano served as a top aide to New Haven Mayor Biaglio DeLieto, and as executive director of the Tennis Foundation of Connecticut. In his role at the TFC, in 1992, there was a problem with the playing surface, making the tournament unplayable. Much of the blame for the surfaces failure fell on DeStefano. What is consistent about DeStefano's Administration is scandal. DeStefano has his people go and do his dirty worklending money to felons, for example, or giving more than $50,000 in a half-gift, half-interest-free-loan to his top aidethen when discovered, DeStefano fires whoever he must in order to change the media's focus. Often DeStefano has not fired employees or appointees in a timely fashion if at all. An important ordinance to remember as you approach this document is a 1989 ordinance that "forbids a person from entering into a contract with the city if he or she owes back taxes unless the person has worked out a payment plan with the tax office." Many of the people listed in this report owe back taxes. Yet time and time aging

10

11 DeStefano allies received government contracts or low-to-no-interest loans from the city despite owing substantial sums in back taxes. When it comes to ethics, DeStefano leads with his chin. There isnt a department in his administration that hasn't been tarred by scandal. Graft, racketeering, fraud, waste, abuse, kick-backs, and more occurred in the DeStefano administration, by his political allies. Time and again politically connected government employees violated the public trust. While DeStefano has somehow managed to shape his image as that of an election reformer, the stench of his administration is so powerful that he cannot hide his true record. DeStefano apparently has not personally enriched himself from the corruption that he surrounded himself with, but his administration has had a mind numbing share of scandals. Simply put, if DeStefand dodn't benefit from the corruption around him, then he is too inept an administrator to be Governor. Its is a Hobbesian choice: he is either too corrupt or too inept to lead. In 2002, then Police Chief Melvin Wearing scuttled criminal charges brought against two Hispanic ministers who were supporters of the mayor. Wearing suspended the arresting officer, Arpad Tolnay, who was awarded $5.1 million in a civil rights lawsuit in December 2005. DeStefanos gubernatorial campaign also received a $1,000 contribution from Wearing the day after DeStefano testified in the civil rights lawsuit in December 2005. DeStefano opposed Kristine Ragaglias role in rooting out fraud in Gov. Jodi Rells social services departments. Ragaglia admitted to federal investigators she was involved in a conspiracy to steer a contract for a youth correctional center her former agency wanted to build during the Rowland administration. DeStefano could be accused of having a double standard for ethics. DeStefano supported a campaign finance proposal that caps spending and provides public financing for mayoral races in New Haven. He supported this proposal after scandals involving his fundraising practices during the 1990s. New Haven budget director Frank Altieri has served DeStefano since 1993. Altieris salary, as a consultant, sits just below the threshold to be reviewed by the citys legislative body. Altieri has refused to fill out an ethics form, required of every other city department head; the form lists, among other things, the names of any companies in which the official has a financial interest and which do business with the city. Because hes a consultant, and not a city employee, he is legally excused from filling out the form. Despite his rhetoric calling for "clean elections" Connecticut State Elections Enforcement Commission said DeStefanos gubernatorial campaign committed serious

11

12 neglect of state law by failing to include the occupations and employers of 32 of the 612 contributors who gave Mr. DeStefano more than $1,000 each. The 32 donors gave a total of $65,000. The Commission fined DeStefanos campaign $4,000. DeStefano has criticized Gov. Rell for failing to sign a clean contracting bill, saying he would have signed it as governor. DeStefano could be accused of hypocrisy here, as his administration has contracted with donors, specifically the Fusco family. The city of New Haven pays Chris DePino, former GOP state chairman $50,000 annually to lobby state government. In 2005, DePino solicited donations to DeStefanos gubernatorial campaign. The state Insurance Department is investigating alleged referral fees paid by a Hamden insurance agency to a top city official. According to a deposition, Grasso Associates Financial Planning and Insurance Services Inc. paid $65,463 in 1999 to Salvatore Brancati, the former director of business development for the city. Brancati did not hold an insurance license, and is therefore was prohibited from receiving such fees. Brancati left his city job and went on to consulting work for economic development in West Haven. A check ledger from Grasso Associates shows that some city businesses that got aid from the city during Brancati's tenure have insurance with Grasso Associates. The companies included the Chapel Square Mall, owned by a subsidiary of the New Haven Chamber of Commerce. The mall received $500,000 in loans and loan guarantees from Brancati's office in 1997 to help move the Yale Co-op into the mall. Members of the city's board of aldermen held meetings to investigate the city's purchase of a dilapidated building. The purchase had not been approved by the aldermen. The owner, Wendell Harp, an architect and who also owed back taxes, who often works as a contractor to the city and is married to State Sen. Toni Harp, received $485,000 for 187 Dixwell Ave. DeStefano said the purchase was necessary to complete a housing authority project. During his primary election campaign in 2001, DeStefano was accused by his opponent, State Senator Martin Looney of using public funds to send out a thinly veiled campaign newsletter. Brancati steered public money for projects to the Fusco familys construction, management and development business. Members of the Fusco family have contributed to DeStefanos campaigns and DeStefano considers them good personal friends. The Livable City Initiative, an anti-blight plan to help low- and middle-income families, has repeatedly come under investigation from the FBI, the U.S. Attorney's Office and the federal Department of Housing and Urban Development for all manner of

12

13 impropriety. A HUD audit recently found that the program could not account for about $2.3 million in federal funds administered to a developer. Patricia Cofrancesco and Frank Altieri lost their jobs after her office approved housing loans for city employees, including one to Andrea Jackson-Brooks, the former executive assistant to the mayor. (Jackson-Brooks did not qualify for the loan for a variety of reasons, not the least of which was that she was a credit risk. Nevertheless, DeStefano personally signed off on the loan). DeStefano erroneously claims that Connecticut has lost 14,000 jobs since Jodi Rell became governor. In 1995, New Haven sold property tax liens to a private collection agency in order to improve its collection rate from the 86%. The private collection firm brought another level of scandals to New Haven. DeStefano has made universal health insurance a priority in his campaign for governor. He has attacked Wal-Mart as an example of a bad employer that forces employees to utilize state Medicaid and Medicare dollars instead of providing them with quality health insurance benefits. He believes the universal health care initiative will help create better jobs in Connecticut. DeStefanos reliance on this issue could allow his opponent to highlight his budget recovery plan, which used a reduction in employee health benefits in order to cut New Havens budget expenditures. Here, DeStefanos actions may speak louder than his campaign rhetoric. DeStefano has made ethics an issue in his campaign. Proper use of the information contained within will destroy his credibility as a candidate. This isn't really a fight that he wants to have despite what he may say. This is a lengthy document. We have made all attempts to tame it into a usable format. We recommend especially focusing on the Greatest Hits and Table of Contents as guides. Prince John DeStefano is dirty. His administration is dirty, his friends are dirty, his money is dirty, and his town's politics are dirty. He is a creature of corruption pure and simple.

13

14

GREATEST HITS
CORRUPTION, CRIMINALS, & TAX DODGERS
DeStefanos Livable Cities Initiative gave 440,000 to Fair Haven Development Corp, which spent 99% of the money on office equipment and salaries DeStefano signed a $58,750 loan to Ms. Jackson-Brooks, his top aide. Half the loan was already forgiven and the loan was interest free. Furthermore she made too much to receive the loan. When it was discovered he fired everyone involved. Plus she was a huge credit risk with 2 mortgages and a pile of debt. New Haven misappropriated over $300,000 in Federal HUD funds DeStefanos right hand man, Sal Brancati, used money from a non-profit development corporation to pay for a Jeep Cherokee and for golf membership fees, and then refused to open up the books of the quasi governmental agency. Bracanti also hooked up his old buddies the Fuscos on numerous construction projects. The Fusco family all maxed out in donations to DeStefano. One of the projects was the Long Wharf Mall, this despite the Fuscos owing nearly $118 million unpaid mortgage to the state. The Fuscos are long time donors to DeStefano. Bracanti also took tens of thousands in Referral fees for referring people to Grasso Associates, an insurance company. Bracanti lent $250,000 to the Ancelli family, who are tax cheats and who have taken money from Loan Sharks. Soon after taking the loan, the closed the operation Bracanti lent $250,000 to a Francesco Germana, who in turn owed 200,000 in back taxes. To get this money out, the commission had to skirt loopholes in the law regulating who can receive money. Brancati bought property across the site of the proposed Yale Childrens hospital. Obviously he knew about the hospital, being the chief deal-maker for the city. He purchased the land and flipped it 6 days later at a $35,000 profit to Yale. DeStefano appointed a known felon who stole money from an elderly womans funeral account to the position of Fire Commissioner. The new Fire Commissioner, Rev. Boise Kimber, was on the job 4 months before he was forced to leave because of a racial slur against Italians.

14

15 DeStefano also pumped millions to Kimber, as head of Hazel St. Development, to knock down rotting condos on Hazel St. and build houses. DeStefano later appointed Kimber to head up Division St. Development, where he did no documented work and received $1,250 per month in consulting fees. On leaving Hazel St. Development DeStefano and Kimber installed Kimbers father in law and retained Kimber on a consultancy basis making $51,836 a year for largely unspecified work. Basically DeStefano gave Kimber money for nothing. Note that Kimber also brought in an architect for $100,000, although the houses in the redevelopment were pre-fabs. DeStefano gave a big time sweetheart deal to Bob Matthews, who was buying the old SNET building on George St. and a building on Long Wharf. He received a 50% cut in his assessment and boosted the value of 300 George with a 60 percent discount on monthly parking in a public lot, a gift worth up to $335,400 a year. DeStefano brought in Breen Capital to purchase tax liens from the city. However, the company has standing ties with Ed Marcus, the Dem. State Chair. Marcus would charge exorbitant legal fees on top of the lien fees and 18% interest, and would use strong arm tactics to get people to abandon their properties cheaply and quickly. All parties, the Breen owners and Marcus and his wife among others all donated to DeStefano DeStefano contributor Marcus also helped to drive a company out of business by charging his usual exorbitant legal fees to a quasi independent company. The state refused to reimburse the fees, finding that the legal fees charged were way out of proportion. Marcus kept the full fees; the company has since gone bankrupt. DeStefano helped to fund a DVD and CD Bootleg operation, run by 2 felons: one who went to jail because he refused to rat, and one who transported stolen goods across state lines sounds like a fence. DeStefano is close to both Nacca and DeMattaeo, speaking to them on a regular basis. These characters also had a business arrangement where they bribed IBM executives into giving them top of the line equipment which they then recycled, (resold) for a $20 million profit. Plus Nacca is a tax evader Balletto, the New Haven Democratic Chairman was fined $1500 for violating State Election Laws. DeStefano was also in trouble for violating State Election Laws, misreporting over $111,000 to hide employment and donor information. DeStefano appointed, as LCI code enforcer, a former loan shark and son of a dead New England Mafia boss.

15