Mount Vernon Mayor Richard Thomas arrested on charges of allegedly stealing campaign funds and lying about money he diverted from his inaugural committee for personal benefit.
Thomas Accused of Stealing Campaign Funds, Establishing a Slush Fund for Personal Use from His Inaugural Fund, and Falsely Filing Disclosure Reports with the State Board of Elections and Mount Vernon Board of Ethics
MT. VERNON – Attorney General Eric T. Schneiderman and Comptroller Thomas P. DiNapoli announced the arrest of Mount Vernon Mayor Richard Thomas for allegedly stealing campaign funds and lying about money he diverted from his inaugural committee for personal benefit. Mr. Thomas was arrested on a felony complaint this morning after an investigation that exposed the theft of approximately $12,900 from his campaign committee, and the diversion of over $45,000 from his inaugural committee for personal use and his failure to disclose it.
Today, NY Attorney General Eric Schneiderman are announcing felony charges against Mount Vernon Mayor Richard Thomas.
“As we allege, Mayor Thomas used his campaign and inaugural accounts as personal piggybanks – part of a long-running scheme that began during his 2015 campaign and continued throughout his time in office,” said Attorney General Schneiderman. “As we detail in the felony complaint, Mayor Thomas treated these accounts as slush funds to pay off cars, dinners, and even a Chanel purse, and then lied about it in his filings. Public corruption strikes at the very heart of our democracy, and we’re committed to continuing to root it out across New York.”
“This official allegedly misused campaign funds and failed to report gifts,” State Comptroller DiNapoli said. “We will continue to fight public corruption wherever we find it.”
The felony complaint filed with the Court today charges Thomas with one count of Grand Larceny in the Third Degree (a Class D felony); two counts of Offering a False Instrument for Filing in the First Degree (a Class E felony); and two counts of Offering a False Instrument for Filing in the Second Degree (a Class A misdemeanor).
The complaint details a scheme through which Thomas allegedly stole approximately $12,900 from his 2015 mayoral campaign committee, the Friends of Richard Thomas (“FORT”). After winning the mayoral election, Thomas established the Richard Thomas Inaugural Committee (“RTIC”), ostensibly to fund an inaugural celebration, but instead allegedly personally profited from RTIC by diverting over $45,000 for personal use and failing to disclose it.
An investigation further revealed that Thomas allegedly lied on his 2016 annual statement of financial disclosure with the City of Mount Vernon when he did not reveal that businesses controlled by an individual referred to in the felony complaint as “Individual 1,” as well as RTIC, paid Thomas’ personal American Express (“Amex”) bills. After his inauguration, Thomas appointed Individual 1 to a high-ranking position with a City agency that deals with public safety, although Individual 1 had no prior law enforcement experience. Additionally, and during the investigation (which Thomas was made aware of in December 2016), Thomas allegedly lied on his 2017 annual statement of financial disclosure with the City when he did not reveal various sources of funding he received during the reporting period, including a tuition payment made to New York University on his behalf.
Theft from Campaign Committee and False Disclosures to the Board of Elections
An analysis of Thomas’ personal and campaign committee bank accounts revealed that Thomas allegedly used FORT funds for personal use, stealing approximately $12,900.
The State AG alleges that Thomas claimed on campaign filings that two separate payments that he issued to himself from FORT, totaling $8,900, were “reimbursements.” An analysis of Thomas’ personal bank accounts, however, revealed that Thomas never laid out any money warranting reimbursement; instead, records of Thomas’ personal bank account show that Thomas was low on personal funds at the time he received the so-called “reimbursements” from FORT. He allegedly used that money for personal expenses, such as rent for his family residence, car loans, and a payment for three automobile insurance policies for two vehicles on which Thomas was listed as the owner, and another vehicle registered to one of Thomas’ relatives. Thomas also allegedly took an additional $4,000 payment from FORT, not disclosed to the New York State Board of Elections, that he used for personal expenditures.
Inaugural Committee Slush Fund
Thomas also allegedly diverted over $45,000 from his inaugural committee for personal use and failed to disclose it.
The State alleges that shortly after taking office in January 2016, Thomas used funds from the RTIC account to pay the monthly balance on his and his wife’s personal Amex. In mid-January 2016, a payment for $8,538.16 was made from the RTIC account to Thomas’ Amex; included in those expenses were charges incurred for a family vacation to Mexico. In late February 2016, a payment for $6,000 was made from the RTIC account to the Thomas Amex; included in this balance was the purchase of a Chanel purse that cost more than $2,000. In both March 2016 and May 2016, two separate $5,000 payments were made from the RTIC account to Thomas’ Amex, totaling another $10,000. In October 2016, a payment of $5,320.99 was made from the RTIC account to Thomas’ Amex account; in November 2016, another payment of $2,993.18 was made; and in December 2016, another payment of $3,685.14 was made.
City of Mt. Vernon Financial Disclosure Violations
According to the complaint, prior to Thomas filing his 2017 annual statement of financial disclosure with the City, he learned of the existence of the Attorney General’s investigation. In the 2017 annual statement, Thomas disclosed the RTIC payments to his American Express account as a “loan” from RTIC. Thomas, however, failed to disclose a $10,000 gift he received from a private individual that he had used to pay back the supposed RTIC loan. Additionally, he failed to disclose a $6,000 “gift” he received from another individual who paid his NYU Stern School of Business tuition bill.
Last month, AG Schneiderman and Comptroller DiNapoli announced the arrest of former Bronx city council candidate Albert Alvarez for allegedly accepting straw donations and stealing at least $4,500 in New York City Campaign Finance Board public matching funds during his unsuccessful 2013 run for Council.
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