SHOW ME THE MONEY!!!
. . . ok, we will :-)
Mike Hein has accepted payments from Ulster County for homes that have been rented through the Department of Social Services to county welfare clients.
In his ethics disclosure form, Hein admitted to the contracts. Filing a false statement with a government agency is a crime.
Now Hein claims there are no contracts. So they existed in April of 2008 (when he filed his ethics form) but now they don’t exist and the Department of Social Services won’t release them to the Daily Freeman when asked . . . give me a break.
Now remember how we just told you Hein claims the contracts don’t exist (as reported in the Daily Freeman on Thursday, October 16, 2008), Well . . . We’ve got the checks.
Here they are:
Here are a couple of them showing payments to Mike’s wife for the low income housing. Who signed the checks? Lew Kirschner, the Ulster County Treasurer.
Section 801 of the General Municipal makes it illegal to enter into a contract with the County where you have authority to audit the payments under those contracts.
Hein not only had authority to audit the payments, he actually, as deputy County Treasurer had authority to make the payments. Yet he claims the law wasn’t broken.
Coming Monday! The cover up by the County Attorney's office!
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14 comments:
Unbelievable...I've always supported the necessity that social services plays in our communities, but until now, apparently my ignorance of its inner workings have got the best of me. This is an outrage. Corruption is the movement, and Ulster County waves the flag...Mr.Hein should wash his hands of this 'mafia' lifestyle and clear the way for our next county executive, Len Bernardo. The media should jump all over this, prior to the election, so that the voters in this county, be they Democrat, Republican, Independent, whatever, know what's going on. Yes, I lean 'left', but what Hein is doing just isn't 'right'. At this point, someone really should get the Fed's involved...especially if there is some sort of cover up on the part of the County Attorney. Perhaps Monday will tell. SO MUCH DIRT, SO FEW SHOVELS...thank you Ulster Politics. My mind is made up...
The County attorney's office added long time political hack Bea Hvranek as contract manager - another position added for the Good Old Boys.
I'm not a lawyer, however if all these statements are true, a lawyer by the name of Carnright should handle this matter...
these checks are from 2004 and 2005.
There are more checks
When a public employee commits a crime in relation to his office the statue of limitations is waived throughout his/her tenure of office and extended five years thereafter vacating said office.
It don't matter if the offense occurred 3 or 30 years ago. It is still prosecutable under the law.
Carnwrong again maybe he should wait 7 years for the statue to run out. Ulster County is now the worst in Economic Development but number 1 in corruption. i'm sure Cumo will be looking at this RIGHT
Carnwrong padded payroll by adding campaign worker Weishaupt - what does that tell you? Cahill defends any Republican.
You think the rent issue is bad, Ulster Musings goes even further.
http://ulstermusings.blogspot.com/2008/10/deep-throat-ulster-county-style.html
Sunday, October 19, 2008
Deep Throat Ulster County Style
I sincerely apologize to the many readers of this blog (even I have to smile at that one) for nearly two month sabbatical I took. But believe me it was worth it, the staff at Ulster Musings has taken this time to research the story behind Mike Hein's home ownership. Now you are all going to comment "but wait Mr. Muse, this story has already been broken by other blogs and in the newspaper." To that I say yes there has been discussion about Mike Hein having rental contracts with DSS but the real story is how did he get the properties in the first place. According to his financial disclosure form (which will be uploaded here tomorrow) there are upwards of 5 properties that have DSS contract rentals. How did a mild mannered Jewelry store manager then bank branch manager then civil servant come up with the dough to purchase 5 rental properties on top of his own house? See here is the key to that one, he purchased them at great discounts, and by great discounts I mean $1, $10, $100. Also the timing is very interesting as well. But that's it for tonight, if you want the real dish you will have to come by tomorrow.
Posted by The Muse at 8:19 PM
OMG
http://ulstermusings.blogspot.com/2008/10/i-do-not.html
Ulster Politics - Ulster Musings kicked your ass covering this one.
Monday, October 20, 2008
I Do Not Even Know Where to Begin
That is the most apt title I could come up with because this issue is breathtaking. First as promised, Mike Hein's Financial Disclosure Report from April 2008. It is the last one in the attachment section. It is this document that states that he and his wife contract "Apt. Rentals" to "DSS". But it never mentions how much it is, only that is in excess of $1,000. Later it states that they take in "real estate rents" from "113 Fair St., 67 Hudson St., 2 Post St., 16-20 Abeel St., 86 Foxhall Ave." On the next page it adds 207 Orchard St. Hurley to property where the Hein family has financial interest (My understanding is that 207 Orchard Street is their current home address). There is the background, and here is where the title of this post comes in.
First, several of the properties were owned at one point by Chrismich Apartments LLC. If you look at the Deed transfer for 113 Fair Street at the bottom of the second page Christine Hein is the signatory on behalf of Chrismich Apartments LLC as is on the 63.71 (which is actually 67) Hudson Street. Now this is interesting because Hein never lists his families interests in Chrismich Apartments LLC. Does it still exist? The next issue is that these transfers were for only $10 dollars each, on the cover page which is signed off on by Mike Hein's biggest backer Al Spada, the transfer amt is listed as $0 as well as the transfer tax is listed as $0. I guess the Democrats have no problem making Ulster County residents pay the land transfer tax as long as they don't have to pay it themselves.
Second, Hein never lists ownership of 13 Abeel St. in his Financial Disclosure for, did he just forget about it because he owns so many rental properties? The next issue here is that on the 13 Abeel Street and 86 Foxhall Avenue properties they list the transfer amount as $25,000 and $70,000 respectively. However, they are listed inside as being transferred for $10 and $1 respectively. These both took place in 2001. Now I am not positive because his biography is not specific enough but it states that "After graduating from college, Mike returned to Ulster County to start his family. Raising his son with his wife Christine, Mike worked as the Branch Manager for a local bank... Already deeply involved in community civic affairs, in 2003, Mike left the private sector and accepted the job of Deputy County Treasurer". So that means that it is very likely in 2001 he was branch manager for a local bank. Well, purchasing properties that are ready to be rented out as apartments for only $25,000 and $70,000 seems a little strange to me. My assumption is that the owners defaulted on their mortgages and then Hein swooped in paid off the rest of the mortgages and took over the properties. In order for the bank to show a profit he paid he paid them a nominal amount. I don't believe this is illegal, but it shows how Mike Hein has utilized his "insider position" to profit himself long before this mess with the DSS contracts.
Finally, looking at the 16 Abeel Street property, the value of the transfer is $107,000 but the internal transfer price is $1. Again since this was just the assumption of mortgage payments and not the creation of a new mortgage, Hein avoids paying the mortgage recording tax. Oh what a life it must be to have all these loopholes, and tax avoidance's while getting paid by the County Department of Social Services for apartment rentals.
So Lets recap, according to the internal parts of the property transfers, Mike Hein picked up 5 investment properties for a grand total of $32. These properties were mainly acquired while he was working as the branch manager of a local bank and therefore had the insider ability to swoop in on mortgage foreclosures. His friend and political confidant Al Spada then helped allow him avoid paying land transfer and mortgage reporting taxes. The LLC his wife was part of (and probably CEO of) was never listed in his financial disclosure report. Neither was the property at 13 Abeel Street. He then became Deputy County Treasurer and County Administrator. Sometime during this period he began renting his investment properties to the County Department of Social Services for an currently unknown amount. At current issue in the County Legislature is whether or not the Ulster County Commissioner of the Department of Social Services, Roberto Rodriguez has been fulfilling his duties (i.e. presenting annual reports). Then Len Bernardo who is running against Mike Hein is mailed a package full of ants from the commissioners office. Then Len Bernardo gets sent double tax bills by Mike Hein's other best friend Lew Kirshner, and has his business attacked by IDA member and Hein Campaign Supporter March Gallagher. Is there anything Mike Hein wont do (or have his cronies do) just to profit himself?
So here are the questions Administrator Hein
(1) How did you aquire your investment properties in the first place, were they mortgage forclosures?
(2) How much are you currently recieving for your DSS contract rentals?
(3) What exactly is Chrismich LLC, how long has it existed, does it still exist, and what role/position did/does you wife have in it?
(4) Have you been letting commissioner Rodriguez slide on his duties because it is helping you put money in your own pocket?
(5) Do you think it is ethical for the County Administrator to be contracting rental apartments with a department you oversee.
11:41, Who cares! I hope you got permission from UM to duplicate HIS (or HERS) original writings.
By transfering for $1.00 Mike avoided a taxable event. If the properties values were greater than the purchase price; then clearly capital gains taxes were illegally avoided.
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