Democratic operative G. Steven Pigeon has been involved in a "pattern" of election law

violations in Erie County, an investigation by the governor's counsel has concluded, but Gov.

David A. Paterson will not appoint a special prosecutor as requested by a former assistant

district attorney.

Instead, the results of the governor's investigation will be turned over to the U.S.

attorney's office in Manhattan, which already is reported to be investigating Pigeon in an

unrelated matter.

Paterson determined that former prosecutor Mark A. Sacha's allegations that two successive

Erie County district attorneys gave Pigeon a pass on election law violations could most

"efficiently" be investigated by the U.S. attorney in Manhattan, according to Peter J.

Kiernan, counsel to the governor.

"We concluded the existence of a pattern of violations of election law, some of which may

involve money laundering or deliberate evasion of requirements of the election law," Kiernan

said. "We thought that needed to be addressed by someone."

While his probe uncovered violations of election law in Erie County, Kiernan offered no

judgments on why they were never prosecuted.

Sacha called the governor's chief legal adviser's findings a "vindication" of his claims,

adding that the governor's office "had the honesty to admit these allegations are real and

have substance."

But he also said Democratic politics and the gubernatorial campaign of Attorney General

Andrew M. Cuomo lie at the root of the decision not to appoint a special prosecutor.

"Though I find vindication in what they said, they are effectively passing the buck on a

subject that should be of utmost importance to the governor of the State of New York, and

that's the integrity of the electoral process," said Sacha, who was fired by Erie County

District Attorney Frank A. Sedita III last October after his allegations were reported by The

Buffalo News. "I don't see how they can abdicate their responsibility to see that election law

is enforced in New York State."

Sacha has claimed that the two district attorneys passed on prosecuting Pigeon in the

election fraud case involving Paul T. Clark's 2007 campaign for county executive out of fear

of Pigeon's political power.

Sacha airs views

At the heart of Sacha's allegation is a 13-page memo, which Sacha says outlines evidence

that Pigeon laundered a $10,000 contribution from former County Executive Joel A. Giambra's

campaign fund to Clark's unsuccessful campaign to succeed Giambra.

Sacha, 52, was the third ranking official in the administration of former District Attorney

Frank J. Clark and at one time was the county's chief prosecutor of public corruption.

When Sedita took office in 2008, he demoted Sacha. Sacha claimed the demotion was the

result of his insistence that the DA's office prosecute Pigeon and others for money laundering

schemes from the Paul Clark campaign.

Informed that the governor's office was referring the Pigeon investigation to U.S. Attorney

Preet Bharara, Sacha questioned why the matter has been referred to federal investigators when

the local FBI and U.S. attorney's office did not prosecute in 2008, citing lack of

jurisdiction.

Sacha says that while Paterson was interested in pursuing the case last fall when he was a

candidate for governor, the lame duck governor is now committed to protecting the

gubernatorial aspirations of Cuomo, a fellow Democrat.

"The rules that regard election laws are fundamental because they ensure that it protects the

right to free and fair elections," Sacha said. "And the right to vote is fundamental because

it protects all the other constitutional rights, and the state has a duty to protect that."

As attorney general, Cuomo would be charged with appointing a special prosecutor (or

appointing himself as special prosecutor) to probe Pigeon, the former Erie County Democratic

chairman and now counsel to a top State Senate leader.

That would have proved "embarrassing," Sacha said, because Pigeon has emerged as a

significant influence in determining the endorsement of the often influential Independence

Party, which last month backed Cuomo for governor.

Pigeon is also the conduit to millions of dollars in campaign donations that often stems

from his political patron, Florida billionaire B. Thomas Golisano, owner of the Buffalo

Sabres. Golisano, who has hinted at becoming involved in the 2010 New York elections after

spending $4.4 million in 2008 state legislative contests, has praised Cuomo as a potential

candidate for governor.

Sacha said it all fits into the governor's decision.

"[Frank Clark and Sedita] improperly used their discretion to protect a political

friend," Sacha said, "and the governor has used his discretion to improperly protect the

Democratic gubernatorial candidate."

Cuomo also recently appointed former Chief Judge Judith S. Kaye to investigate a series of

ethical allegations surrounding Paterson.

Kiernan, however, denied any ulterior motive.

"It is not a political decision," he said.

But he acknowledged that no discussions were ever held with Cuomo or any other potential

special prosecutor about the possibility of investigating Sacha's allegations.

Still, he pointed out that gubernatorial appointments of special prosecutors are rare, and

that the costs of an extensive investigation would be prohibitive. He said Paterson also

assigned considerable importance to the "prosecutorial discretion" of a district attorney.

"We knew the district attorney of Erie County — Mr. Clark — had exercised

prosecutorial discretion, which should not be taken lightly by anybody," Kiernan said. "We

also knew his successor — Mr. Sedita — made a similar judgment but didn't even

start."

Sedita feels vindicated

Sedita declined to comment, except to say he felt vindicated by the governor's decision.

"I'm pleased that I'm exonerated by findings of no wrongdoing in my administration," he

said. "And I will fully and completely cooperate with any investigation conducted by federal

authorities."

Frank Clark could not be reached to comment.

Both prosecutors consistently and vehemently denied Sacha's allegations when they were made

last September. Upon taking office, Sedita said, he considered the case closed through guilty

pleas accepted by Paul Clark and others. After pleading guilty to a misdemeanor for election

law violations, Clark in 2009 was fined $1,900 but received no jail sentence.

"Sacha never brought this to my attention. He never complained; he never indicated we did

something wrong," Sedita said, adding that the demotion stemmed from other reasons than his

pursuit of Pigeon.

While Sacha contends that any election law violations easily could be prosecuted under

election law provisions, Kiernan again cited the cost to whatever prosecutor is assigned the

task.

But he did not discount the effectiveness of using federal statutes to prosecute a

potential violation of state law.

"We are of the belief that violations of election law may prove a "predicate' for

indictment under RICO or money laundering statutes," Kiernan said, citing wire fraud and

racketeering as other potential violations.

He added, however, that his office had only "talked about" the situation with the U.S.

Attorney's Office with no commitments made. A spokeswoman for Bharara said the office does not

comment on ongoing investigations as a matter of policy.

Kiernan also said Paterson and U.S. Attorney General Eric H. Holder Jr. recently discussed

the possibility of investigating the matter under the "public integrity" authority of the

Department of Justice. But the determination was made to refer the matter to the U.S. attorney

for the Southern District of New York because Pigeon is already under his scrutiny, he added.

WCBS in New York reported in April that Bharara was conducting a tax and money laundering

probe of State Sen. Pedro Espada. That investigation includes Pigeon, who is on the Senate

payroll as $150,000-a-year counsel to Espada, the report and government sources said.

Federal prosecutors in New York City are looking at payments GDP Consulting made to a Bronx

company. New York Department of State records show that GDP is a limited liability company

formed last July 23. GDP's address is listed as 7305 Porter Road, Niagara Falls. That address,

actually located in the Town of Niagara, also is the home of the Parenti Accounting Group.

Jerry Parenti, chairman of the accounting business, is the father of Gary D. Parenti, a

longtime political associate of Pigeon.

Pigeon called the whole situation "ridiculous."

"Mark Sacha created a story because he was demoted for his own reasons and had his own

problems," Pigeon said.

He also questioned reports linking him to the federal probe of his boss.

"I don't think I'm a target," Pigeon said, adding that he hired Manhattan attorney Robert

G. Morvillo only because he thought any questions coming his way should be answered by a

lawyer.

Kiernan said Paterson has proposed in his most recent budget a strengthening of the Board

of Elections enforcement powers.

"Unhappily, the election law is the sort of stepsister of law enforcement," he said. "Over

many, many years, Albany has not provided the resources to the Board of Elections sufficient

for robust enforcement."

Can voters have confidence in the integrity of election law in Erie County, given the

assertions of Frank Clark and Sedita that they lack sufficient staff and resources to

prosecute many election law violations.

"I really can't answer that," he said. "We have a statewide problem about keeping the Board

of Elections functioning effectively and adjusting to current [fiscal] circumstances."

Sacha said he is glad he pursued the matter, even though he was fired.

"I didn't do it for personal gain, I did it because it was the right thing to do," he said.

"If [federal prosecutors] take it seriously, this could work to protect the election

process in New York State."