GOP rivals slam Levy over 'pay-to-play' fundraising

While GOP gubernatorial rivals lashed out at Suffolk County Executive Steve Levy for "pay-to-play" fundraising, some county lawmakers Thursday were drafting new legislation aimed at making it easier for more title companies to get work from the county.

Under separate bills, title companies would be chosen on a rotating basis, a system sponsors say would help avoid political interference.

The reactions came after Newsday reported Thursday that lawyers and title companies who received $7 million in work gave $200,000 to Levy campaign coffers. Campaign records show that three title firms that gave $73,000 got $1.3 million, or 75 percent, of the county title business from 2006 to 2009. One firm, Liberty Title, closed last year after owner Brian H. Madden of Greenlawn was indicted on charges of embezzling $4.3 million.

Levy aides in Hauppauge and with the gubernatorial campaign maintained Thursday that the county executive has done "nothing illegal or unethical" and lambasted foes for trying to "fabricate controversy."

County Attorney Christine Malafi, who picks firms for county title work, said she rotates business among different companies and that most of the law firms used were already doing work for the county before she took over.

"Noticeably absent from the story is anyone saying, 'I give to get work,' because it doesn't happen," she said.

Before Levy became county executive, title work was awarded under a rotation system among about a dozen title companies.

Democratic lawmakers criticized how title companies are selected under Levy. "This doesn't pass the smell test," said Legis. Jon Cooper (D-Lloyd Harbor), "All companies should have an equal shot at the business."

Presiding Officer William Lindsay (D-Holbrook) and two Republican lawmakers, Edward Romaine of Center Moriches and John Kennedy of Nesconset, have proposed separate measures that would create systems where title companies would get county work on a rotating basis.

Romaine said a rotation would avoid the "pay to play system that now seems to be in place."

But Mark Smith, Levy spokesman, said, "These same legislators talking about reform now thwarted the county executive's comprehensive campaign finance reform bill in 2006-07 because they liked the status quo."

Levy's gubernatorial foes said the fundraising practices should disqualify Levy from the race. "New Yorkers cannot afford another governor with an ethical cloud over his head," said Barney Keller, spokesman for Rick Lazio.

Another gubernatorial rival, Carl Palladino, said Levy's "denials of quid pro quo are just not believable. Does he think they gave two hundred large because of his good looks?"

Josh Hill, a Levy spokesman, dismissed the attacks: "These are the kinds of ramblings from you hear from candidates who have no ideas or money."