Donald A. Derhem 41 Hudson Road Floral Park, NY 11001 October 13, 2017 Risa S. Sugarman Chief Enforcement Counsel New York State Board of Elections 40 North Pearl Street, Suite 5 Albany, New York 12207 Dear Ms. Sugarman: {1am contacting you to respectively request that your office investigate a series of transactions by and between the political committee Laura Curran 2017 and the New York Democratic State Committee in violation ofthe state election law ang regulations governing the United States Postal Service ("USPS"). These violations represent an illegal money laundering ‘scheme and constitute an improper, taxpayer-funded windfall for Laura Curran 2017. {As delineated below, information contained within the campaign finance disclosure reports filed with the New York State Board Of Elections suggest that gross violations occurred, ‘On September 14, 2017, Laura Curran 2017 transferred $23,572.08 to the New York Democratic Stale Committee. The following day, the New York Democratic State Committee paid Berlin Rosen an identical amount for mail on behalf of Laura Curran 2017, According to the 32 Day Pre-General disclosure report, Laura Curran 2017 transferred $22,309.29 to the New York Democratic State Committee on September 19, 2017. Subsequently, the New York Democratic State Committee paid Berlin Rosen $22,308.29 on September 20, 2017 for direct mailing expenses on behalf of Laura Curran 2017, (On September 27, 2017, Laura Curran 2017 transferred $20,204.64 to the New York Demosratic State Committee. The same day, the New York Democratic State Committee then pald Berlin Rosen $20,204.64 on for mailings on behalf of Laura Curran 2017. ‘These transfers and pass-through payments are illegal. As a matter of public policy, the USPS provides state party committees with preferential postage rates, USPS ragulations spociically do not afford political candidates this same taxpayer-lunded benefit. By laundering its direct mail expenditures through the New York Democratic State Committee, Laura Curran 2017 legally accessed a taxpayer subsidy expressly reserved for state party committees and, as such, both violated the law and improperiy converted public money to benefit her campaign. Moreover, Laura Curran 2017 failed to properly report the value of this benofit that it illegally derived from the New York Democratic State Committee on its disclosure reports, which could exceed $30,000 in taxpayer-subsidized postage for 300,000 places of direct mail. The New York Democratic State Committee's Complicity in tis brazen scheme should result in the suspension or revocation of the party's subsidized postage rate. Please rote thal the United States Postmaster General has been copied on this correspondence, Prior to the 32 Day Pre-General disclosure report, Laura Curran 2017 paid Berlin Rosen over $200,000 for consulting and mail ‘expenses. As you know, Berlin Rosen was a central actor in your investigation regarding New York City Mayor Bill de Blasio's ‘conspiracy to circumvent campaign finance limits by steering contributions through county party committees to campaign ‘vendors (including Berlin Rosen) acting in coordination with Mayor de Blasio's campaign operation. As Berlin Rosen was the recipient of the aforementioned payments by the New York Democratic State Commitee, this series of transactions appears particularly suspect. ‘Again, | respectfully request that your office investigate this matter and refer your findings to both appropriate law enforcement ‘and the USPS. Thank you for your time and attention to this matter. - Sincerely, onal KOsfem Donald A. Derhem 41 Hudson Road Floral Park, NY 11001 ‘cc: Honorable Megan J, Brennan, United States Postmaster General