NEW YORK CITY — Since taking office, Comptroller Scott Stringer has ripped Mayor Bill de Blasio in speeches and in annual reports over the low number of minority- and women-owned businesses getting city contracts, most recently giving the de Blasio administration a D+ in its efforts to improve opportunities for these firms.
But the criticism didn't stop Stringer from relying on a fundraiser whose plumbing company and affiliated construction firms have a record of misusing programs that encourage partnerships with disadvantaged businesses.
On top of his own $2,500 contribution, the fundraiser, Lawrence Roman, bundled $25,910 in donations to Stringer's 2013 campaign.
Roman's firm, WDF Inc., also co-sponsored a diversity conference in October 2014 where Stringer spoke critically of the city lagging behind the state in awarding contracts to women and minority business owners.
A month later, WDF quietly reached a deal with the Manhattan District Attorney's Office and the Port Authority's inspector general to end an investigation into fraud and misuse of contracting programs intended to help minority-owned, women-owned and disadvantaged business enterprises, or MWBEs.
WDF and other city contractors had been under investigation over the use of MWBE supply companies that were in reality acting as straw firms.
WDF disclosed the settlement agreement in mandatory filings with the Mayor's Office of Contract Services.
The contractor also recently disclosed in filings that since 2014 Brooklyn federal prosecutors have been investigating its affiliate, Five Star Electric, over the use of MWBE firms. Roman and his business partner, Gary Segal, own Greenstar Services Corporation, which is the parent company of Five Star and WDF. Segal heads Five Star.
The disclosure said that Brooklyn federal prosecutors interviewed Roman as part of the investigation March 1, 2016. The disclosure also said that WDF believes Roman is not the target of the probe, rather it's Steven Smith, an executive vice president at Five Star who has been placed on administrative leave.
Stringer's own office opened a probe late last year into WDF's subcontractor, Globe Gates, for work done on the city Department of Environmental Protection's water pollution control plant in Jamaica. The investigation focuses on whether Globe Gates shortchanged workers by not paying them the required prevailing wage for the job.
WDF has held a $244 million contract to improve the pollution control plant since 2004. However, in February the comptroller's office instructed DEP to withhold making further payments to WDF as part of the probe into Globe Gates Inc.
A DEP spokesman said the agency withheld payments after the comptroller's request. But the spokesman said the agency resumed making payments a few weeks later after the request was withdrawn.
Tyrone Stevens, a spokesman for Stringer, declined to comment on its probe into Globe Gates and WDF, but said that campaign contributions in no way influence the comptroller's office.
"While we can't comment on ongoing investigations, what we can say unequivocally is that donations do not influence policy in any way," Stevens said. "That we are investigating this matter demonstrates our independence and integrity. And it's at a time when the public feels that political donations guarantee access to city contracts and special favors from government."
Stevens added that the comptroller's office has debarred more than 30 contractors since 2014 and reassessed more than $22 million in prevailing wage violations. He also said that Stringer has not accepted donations from Roman for the 2017 campaign.
Stevens did not comment on WDF's record with MWBE programs.
"As much as we talk about moving forward, this report demonstrates that at least for the last fiscal year, we moved backwards and have a long way to go," Stringer said in announcing the report.
Roman told DNAinfo New York that he decided to fundraise for Stringer during the 2013 election when the future comptroller initially planned to run for mayor.
"I thought he would be a great mayor in trying to get work for the construction industry," Roman said. "He's a big proponent in getting that done."
He said Stringer "was doing a pretty good job" as comptroller. However, Roman said neither he nor his employees have had any contact with Stringer since he became comptroller.
Roman said WDF had "moved on" since its settlement agreement with the Manhattan DA's Office and the Port Authority inspector general. He also said his company has one of the strongest compliance programs in the city, vetting and monitoring MWBE contractors it does business with.
Roman also said that he has no role in Five Star Electric and that the company is run out of a separate office.
He also said that WDF forwarded the comptroller's office all the information it had on Globe Gates and did not know where the investigation stood.
