Queens Tribune

Assemblyman Jose Peralta (D-Corona) admitted this week that he filed donations for his previous Assembly runs inaccurately, and has been working to clear up the records.

Between 2005 and 2006, Peralta listed some 23 donations for $1,300 apiece as coming from his mother, Rosa Hernandez, who works as an office manager for a family friend, Mercedes Mota-Martinez.

104-01 Roosevelt Realty, an LLC owned by Mota-Martinez, owns the building at 104-01 Roosevelt Ave., where Peralta’s campaign is headquartered. The donations were not Hernandez’s to make as the space being donated belongs to the LLC.

The difference between a donation made by a family member and anyone else is extreme – private individuals and corporations are limited to $3,800 in donations for the primary and general elections, while family member donations are figured out by a formula; the max is never less than $12,500 for both the primary and general elections.

Peralta received $29,900 in donations originally tagged as from his mother over the course of two campaign cycles – for the 2004 and 2006 campaigns.

As a result, Peralta’s campaign was able to receive $17,900 more than what the law allows. Peralta admitted in a conversation this week that his campaign filings were incorrect, but was unavailable to answer later questions, specifically, if he had listed the filings under his mother’s name as a way to skirt around the donation limits established by the Board of Elections.

A spokesman later said his mother was listed as the donor because she sits on the board of directors for the LLC. The spokesman said this was “an honest mistake” and that as of Dec. 11 the LLC has been reimbursed the $17,900 and that the amended filing has been recorded and documented.

The Board of Elections confirmed that on Dec. 14, Peralta filed a number of amendments to the campaign finance records to switch the donor from his mother to the 104-01 Roosevelt Realty Corporation. As of publication, there are now only eight such donations for a total of $12,000.

Peralta said that in the future he will have an election lawyer review all the documents his campaign files.

John Conklin, a spokesman for the Board of Elections, said filing adjustments years after a campaign is neither typical or atypical. He said making alterations to the records is encouraged because the ultimate goal is accurate filing.

In his campaign records from his 2008 election, rather than receive the rent as a donation, Peralta began making cash payments for $1,300. He said although the 104-01 corporation offered to donate the space, he chose to make payments because the election was more relaxed than his 2006 run against Carmen Enriquez.

Shared Space
The issue of Peralta’s campaign records was first raised in a New York Daily News article about Peralta and the Corona-Elmhurst Center for Economic Development.

On Dec. 9, columnist Juan Gonzalez wrote that Peralta requested more than $500,000 in taxpayer funds for a nonprofit organization that is inactive and has been for defunct for at least the past two years.

Peralta, who aided in developing the Corona-Elmhurst Center for Economic Development early in his Assembly tenure, vehemently disputes the article’s claims and attempted to set the record straight.

The location of the Corona-Elmhurst Center is the same building owned by Mota-Martinez’s LLC, and where Perlata’s campaign office is housed. Peralta, who helped get the group started, said the company’s CEO found the space on his own and he had no part in determining the location of the Center.

At one point, Peralta, Hernandez and Mota-Martinez all lived in the same multi-dwelling home in Corona – Hernandez and Peralta in one apartment and Mota-Martinez in another. Although the Daily News article states the two both currently live together, Peralta said his mother has since moved to a home in East Elmhurst – a dwelling which is co-owned by Mota-Martinez. He said Mota-Martinez still lives in the Corona building.

Prior to the Corona-Elmhurst Center taking space in the building, Peralta paid monthly rent of $1,300. During the time that Peralta’s mother’s business partner benefited from the new rent-paying tenant, the Corona-Elmhurst Center, Perlata was given the in-kind donations. After the Corona-Elmhurst Center moved out, Peralta started paying rent once again.

He said the fact he began paying rent had nothing to do with the fact the Corona-Elmhurst Center had shut down.

The Money Trail
On top of the rental question, a separate issue of the funding for the agency has also been raised.

Peralta said in 2003 he was approached by Fernando Fernandez – who had a background in nonprofit organizations with an emphasis on development groups – about his plans for a development center for the area. Peralta said he was attracted to the nonprofit, the Corona-Elmhurst Center for Economic Development, because bringing a voice to the small business community was a platform issue throughout his campaign.

According to the Assemblyman, after being presented a comprehensive business plan by Fernandez, who was named Executive Director, in 2003 Peralta earmarked $125,000 for the organization to begin. Then, for the next three years, from 2004 through 2006, Peralta secured increments of $125,000 each year for the center, totaling another $375,000.

Peralta said the first $250,000 was dispersed successfully by the organization through computer classes, business seminars and a variety of community services.

As the organization flourished, Peralta said Fernandez fell ill and required a kidney transplant. In 2006, he approached Peralta and said due to his deteriorating health, he was not sure how effectively he could continue to run the organization. Immediately after, Peralta said he approached the Assembly’s Ways and Means Committee in order to put a freeze on the $250,000 earmarked in 2005 and 2006.

Also, in 2005 U.S. Sen. Chuck Schumer secured $250,000 in federal funds for the center’s development.

This week, the Senator’s spokesman Josh Vlasto said, “The federal money was never drawn down and, as the grant has since expired, we have asked the SBA to redirect the funds.”

In terms of state funding, Peralta maintains that the first $250,000 the state supplied was dispersed and the other $250,000 remains untouched to this day.

He added that as an assemblyman his job description includes earmarking the funds, but each assembly project is administered by a state agency. In this case, that agency was the State Dept. of Economic Development.

Through a popular non-profit public record clearinghouse, guidestar.org, Corona-Elmhurst Center for Economic Development did not have any tax filings on record.

Behind The Scenes
Peralta, who is staging a Senate race against Sen. Hiram Monserrate (D-Corona), said he believes the entire Daily News story is a hit piece staged by the Senator to distract from the pertinent issues.

“This is a classic smear campaign tactic that needs to end,” Peralta said. “This is one of the reasons why I am running.” He continued that the piece’s reporter seems to habitually sing Monserrate’s praises.

“The facts speak for themselves,” Peralta said. “Every time there was a positive article about Hiram Monserrate in the Daily News it was Juan Gonzalez that wrote it. Let the readers make the judgment.”

Gonzalez declined to respond to Peralta’s claim.

When Monserrate’s office was contacted for comment, one of the Senator’s staffers answered the phone and said he had already been made aware, via Juan Gonzalez, that the Tribune was investigating the story.

Gonzalez would not substantiate that assertion.

The employee then introduced the Tribune to the source that had given information to the Daily News – an Elmhurst author, who asked to remain unnamed. He said he has been gathering information about the Peralta situation for the past seven years.

He said as an investigative journalist he researches the campaigns and actions of many Queens officials as a service to his community. The author assured he had no link to Monserrate and investigates all borough politicians.

Upon further research, it was ascertained that through personal contributions and donations from businesses the author operates, the unnamed source contributed large amounts to the campaign of Peralta’s 2006 opponent Carmen Enriquez. Campaign finance records also list the source and Enriquez as having the same address, including apartment number.

Enriquez’ campaign spending reports state that the unnamed source and the businesses he owns received a total of $600, in consulting, printing and office space fees, from the 2006 campaign.

Reach Reporter Kaitlyn Kilmetis at kkilmetis@queenstribune.com or (718) 357-7400, Ext. 128.