FBI Interview Excerpts Whalen

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    THOMAS M. WHALEN, I I I ,MAYOR, CITY OF

    ALBANY, NEW YORKBOBBS ACT - CORRUPTIONPUBLIC OFFICIALSOO:AL194C-187

    b2b6b7Cb7DOn June 15, 1987, I I providedthe following information to SA DONALD H. JOHNSON of theFederal Bureau o f I nv es ti ga tio n.Source ady j sed ~ h a t t o l d by I. II _ . who waf 1n

    a Etendance a t I i tha had madenumerous p a l Q f : ~ :0 THOMAS WHAt,:N nye: the vrarso Sources t a t ed t h a t . _ _ _ ... _ ' he es t imatedthese payof 5 0 e I n excess 0 SIX 19ures.

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    THOMAS M. WHALEN, I I I ,MAYOR, CITY OF

    ALBANY, NEW YORKHOBBS ACT - CORRUPTIONPUBLIC OFFICIALSOO:AL194C-187

    b?b6b7Cb7DOn May 8, 1987,1 l providedthe following information to SA D O ~ N ~ A ~ L D ~ ~ H ~ . ~ J ~ O ~ B N ~ S O N of theFederal Bureau o f Inves ti ga ti on .Source advised that Albany CitylI l would be w illing to meet wi th the L , F " ' B " ' I ~ - -regarding recent assessments w i t ~ i D the ctty of Albany.Source addit ional ly advised thatL ,would be able toprovide a copy of a l l assessments which were in cre as ed inthe City of Albany. Source stated these assessments whichwere increased were arbi t ra r i ly done with selectedindividuals in mind as targets for r e- as se ssment . Sources tated these assessments were not predicated necessari ly onincreased values but moreover on personal and pol i t i ca la f f i l i a t ions of the individuals involved.

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    THOMAS M. WHALEN, I I I ,MAYOR, CITY OFALBANY, NEW YORKHOBBS ACT - CORRUPTIONPUBLIC OFFICIALSOO:AL194C-187

    On Ju ly 9, 1987, I 1 providedthe following information to SA DONALD B. J O B N S O ~ of theFederal Bureau of Invest igat ion.

    ~ - - - , . . . . , = ~ = ~ = = = ~ = , - , = , - = - - d the payoff o c c u r r e d , - ~ . Je ore WHALEN got out of the 39 North Pearl Stree tproper ty, which had been acquired by his law firm, COOPER,IRVING, SAVAGE, WHALEN, NOLAN, and BELLER.

    Source advised ihat be ras t O l d . b ~ Y : l I E a n i : ~had made a ~ _ ~ ~ ~ payoffEN, I I I . Source sta ted t ~ ~ - - - - - - - - - - L ,a 0 f wa ha or ,t ha t th 5

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    THOMAS M. WHALEN, I I I ,MAYOR, CITY OF

    ALBANY, NEW YORKHOBBS ACT - CORRUPTIONPUBLIC OFFICIALSOO:AL194C-187

    b206b?Cb?D

    On JUly 29, 1987, I providedthe follow ing in formatio n to SA DONALD B. JOHNSON of theFederal Bureau o f Inves ti ga ti on .....sso=I1.

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    THOMAS M. WHALEN, III ,

    MAYOR, CITY OFALBANY, NEW YORKHOBBS ACT - CORRUPTIONPUBLIC OFFICIALSOQ,AL194C-187

    b2b6bJCb J"

    On August 25, 1987,1 Iprovided the following information to ~ S ~ A ~ D O ~ N ~ A L D ~ ~ ~ H ~ . - - J O H N S O N ofthe Federal Bureau of Investigation.t at had indicated that certain1n 1V uals h L a - r ~ e - - e - n - - s ~ 1 n g l e d out fo r p ro pe rty re-assessmentsby Alban

    e s t a t e t a tL",=,.-,,==-==-::-=-===o:-:=:::-==:-r-:=:! wasl=,---==:='ery upse W1t t e current City Administration, especiallyas a result of public uproarea of Alban New York.

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    -..

    ,TBQMAS M. WHALEN I I IMAYOR, CITY OF ALBANY, NEW YORKHOBBS ACT CORRUPTION OF PUBLIC OFFICIALOO,AL

    194C-187

    b2b7D

    Oninformation to SAInves t iga t ion .1/23/87IL-,ru;o"",,,,=..J1 provided the followingDONALD JOHNSON Of th e F ed eral Bureau o f

    Source advised tha t in 1987 it was givenprocedure w ithin the Ci ty of Albany to annually ra iseassessments on downtown commercial propert ies . Source sta tedtha t th i s procedure then generated l ega l work for specif icfirms within the City of Albany as a resul t of c l ien t schat tenging the increased assessments. This procedure,according to source , was ca l ted a cer t iary proceeding. Sources ta ted t ha t a s ign i f i can t portion of business or bi l l ingswithin COOPER, ERVING & SAVAGE was generated as a resul t ofcer t i a ry proceedings.

    Source advised in 1983 even though COOPER,ERVING & SAVAGE had been using backers supplied by JOSEPHYAVONDITTE was in af fec t precluded from doing cer t iary work.They precluded, according to so urce, as a resul t of theapparent conf l i c t of in te res t generated by senior partner ,THOMAS M. WHALEN I I I , being the Mayor for the City of Albany.Source s ta ted th at upon becoming Mayor for the City of AlbanyWHALEN discontinued arbi t rary assessment increases w ithin theCity of Albany. Source sta ted tha t i t was his contention tha tth i s procedure was discontinued because of the unfaircompeti t ive advantage it would have given o th er firm s.

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    THOMAS M. WHALEN I I IMAYOR, CITY OF ALBANY, NEW YORKHOBBS ACT CORRUPTION OF PUBLIC OFFICIALOO:AL

    194C-187On November 5, 1986,1 Iprovided thefol lowing informat ion to SA DONALD H ~ . - J : O = = H ~ N ~ S ~ O ~ N ~ o ~ ~ t h e FederalBureau of Invest igat ion.Source advised that THOMAS M. WHALEN I I I , as apartner in the Albany law firm of COOPER, ERVING & SAVAGE,received approximately $325 per month as a car allowance fromAlbany law firm of COOPER, ERVING & SAVAGE during the year1985. Source s tated at the same WHALEN was serving as Mayorfor the City of Albany. Source advised, while Mayor of theCity of Albany, WHALEN received a free car from the City of

    Albany.Source advised tha t althoug.h conf l ic t ofin teres ts were frequently d is cuss ed within COOPER, ERVING &SAVAGE he could reca l l no specif ic attempts to ever seeke th ica l o p i n i ~ n s ei ther formally or informally. Source. dv'

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    ew York State Bar AssociaL_t___D_'__1_fo1kNew !ork . sorrce s t a t ed t har thel .C o m m ~ t t e e was ----- Street , Albany,the Ethics

    I ~ ~ - : L ~ 1 - ---J);L" - .. ".r.t:L.' ~ ~ G 1';:;1'

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    b6b7C

    FEDERAL BUREAU OF INVESTIGATION

    3/9/87~ t or tfllnscrlpU.....---- '- _

    On February 27, 1987,1 II I 39 North Pear l St ree t , Albany, New York,volun ta r i ly appeared at. ' the Albany of f i ce o f th eFedera l Bureau o f Inves t iga t ion . At i b i s t imeI Iwas a ccompan ied by A tt:o rn ey . Io f th e si.\tlle address. A t 'the outse t o f th e :LntexviewI j was advised o f th e ident.i ' ty o f ~ t j e j n ten r j :wingAgent, and th e purpose of th e in1:erview. L _t h e r ea f t e r provided th e following information:th e A ] h i m S ~ l a w fi: COOPER, ERVXNG & ~ A V A G E Q = 1I _ T Iadvised t b i s irmsubsequen y merg .1nt.o a new firm named COOPER, ERVING,ISWAGE .. :EE' NOLAN and HELLER in January o f 1987 ..st:a'ted a senior par tner in th e firm o fCOOPER , vnG & SAVAGE was Albany Mayor THOMAS ML,,__ ..,'W'lffiTiIW, III. KQRNSTEIN a d v i ~ e d that. as a m " , = e m b e r = ; = ~ I : ; : : : : ; : : : = ~r I o f th e law firm o f L :::Ji I ]partners recognized po t en t i a lconflicts. of interest. when WHALEN f i r s t came int.o publico f f i ce . [ Is tated conf l ic t s arose at: the t imeWHALEN was presfdent of the Albany COmmon counci l , andbecame more evident and b la tan t when WHALEN was appointedM a ~ ~ O ~ r ~ O ~ f ~ A 1 b a n ~y , subsequent to the death o f ERAST.US CORNING,advised t h a t a1.though the conf l ic ts existed theyn l ly discussed amongst a1.l partners o f the f i r m ~~ ~ ~ ~ ~ a d V i s e d t h a t these d i ~ c u B ~ l o n s often coverede c ha t WHALEN sQould remore himself from the firmdue to the c o n f l i c t s ~ Ladvised t h a t as a resul . t o fb la tan t .confl icts often work was "farmed out to the Albany

    '

    law f i rmq f RUTNIK & R U T N I K ~ These cQnfl ic ts , according toj were discussed a t Partnership Meetings It wassuggesfed: a t these meetings 1:ha.t WHALEN remove himse1.f fromth e f i r m ~ WHALEN, however, would not a g ~ e e to t h i s , norwould he accept .a reduction in partner point:;1, but didsubsequen tl y ag ree to accept an amount l e ~ ~ thIn t:t Iwhich would have been a senior partner :;1hare.advi sed in it ia1 .1y th i s was a sum. of $1.0,000 alii a r u c t i o nto WHALEN I s drfw wbi cb Wits to be d i st ribu t :ed equa lly amongsta l l par tners L ..J advised th i s f igure went up

    I I .

    0". C t l ~ t e d , __ . : . 2 : ! / ~ 2 ~ 7 ' " / ~ 8 ' _ 7 _IOWfl'.,..U

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    F0-307a(Rev.11-15-831 l2,-------"" . . . . .tIon 01 fO.:102 01 - - 1 - - - - - - - - - , On 2/27/87s ign i f i can t ly , possib1y in 1986, when WHALEN's saLary a sMayor jumped to $60,000.00I ladvised t h a t even though conf l ic t s ofin"terest were discussed openly amongst: the part .ners, no

    ~ c a l 0fiDions were ever sougb"t from ' the Bar Associa t ion.I _ _advised tha"t .partners of"t.en considered doing th i sever never followed up and actua l l y ask fo r an opinion.I ~ d V i s e d t h a t approximately 50i o f a l lrevenues generated: wi"thin COOPER, ERV%NG & SAVAGE camefrom the pr inc ipa l accounts, namely BANKERS XrrST C O M : ~

    and to a l e s se r ex1:ent, ALBANY SAVINGS BANK. _ ~ sta"ted tha t when BANKERS TRUST COMPANY so1d i s opera onsto FJ:RST AMERJ:CAN BANK OF NEW YORK, an arrangement wasmade with: t:he Albany law f i rm o f NOLAN & HELLER t:o sp l i tt:he FXRST AMEIUCAN W.NK bUl;>inesEr, approximately 60 ' t.oCOOPER, ERVING & SAVAGE, and 4 0 ' t.o NOLAN & BETJ.ER.

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    I Ireca l l ed d i s c u ~ s i o n s , however no"tspec i f i c s , o f par tnership meet ings a t which poin t FIRSTAMERICAN BANK had expressed a concern fo r r i ~ i n g assessmentson : roper t i e s they purchased from BANRERS TRUST COMPANY.I Iadvised tha"t .he had taken not:es of a l l par tnersm e e J . n g ~ ana. if reviewed they would re f resh h is r ec o ll ec ti onas to speci . t ' ical ly what was sa id ~ " ' these par tnersh ip meeti.ngs.I Iadviped t h a t JOSEPH YAVONDITTE w a aformer Albany County Clerk ' th inCOOPER; :RVING & SAVAG . ,I __ ladvised t h a t gfIrm ' tar 1:he removal 0advised thif:i move was mascause rouqwith him thq unts the MAIDEN LANEPARKING accoun"ts. L dviaed 1:ha.t YAVONDrrTEwas no"t cons idered an empoyee of COOPER, ERVING & SAVAGE,ye t h is backers were used on cer t i a ry work completed andb i l l ed by COOPER, ERVING & SAVAGE. The backers were usedto give the appearance that: "the enclosed work had beencomple"ted by YAVONDITTE as opposed to COOPER, ERVING &SAVAGE because of apparent conf l i c t s o f in te re st: .Irecal led on a t least . one occasionr L ~ ~ ; ~ ~ ~ A 1 b a . n y Ci"ty COur"t befyre Judaq LYNN at: whichp01nt advised by Judge LYNNl ~ s h o u l d not be

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    FO.302a (Rev. 11-15-83) b6b7C2/27/87 3ontinuation Df FD-302 01__---1 ,On_== ! . . : : : . - ' - - -_ . "'.. _ " ' - -__

    t : h i . ~ I : . i I I ......sh

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    --------------------------FO-302. (Rev. I tl5-83J h .

    h7C

    Con1lnuatlon 01 FD-302 ot L ."" 2/27/87 ._ - ' 4 ' - - - _

    Ist:ated tha ' t par tners such as THOMAS M.WHAL1lN, I l " I ' 1 I ~ . - : w ' : : e r = e = - ; : n e v e r an account or client: producer .WHAI,EN moreover inher i t ed t h e accounts or c l i en t s ass ignedto him as a r e su l t .o f ot:her par tners re t i r ing , dying, o rleaving \:he firm.