COIB and Martha Stark

On April 24, 2012, COIB issued a press release stating that as part of a settlement it was fining Martha Stark $22,000 for multiple Chapter 68 violations. These violations involved her work for Tarragon Realty starting in 2005 while she was still Finance Commissioner.

Legal Problems Beyond COIB

There are several legal problems with this settlement. While COIB has oversight over Chapter 68 of the NYC Charter, it has no jurisdiction over Chapter 49 of the city charter, in particular, Sections 1100 and 1118. See text below.

§ 1100. Head of department; whole time. Every head of an administration or department or elected officer except council members who receives a salary from the city shall give whole time to the duties of the office and shall not engage in any other occupation, profession or employment.

§ 1118. Officers and employees not be ordered to work outside public employment. No officer or employee of the city or of any of the counties within its limits shall detail or cause any officer or employee of the city or of any of such counties to do or perform any service or work outside of the public office, work or employment of such officer or employee; and any violation of this section shall constitute a misdemeanor.

COIB asserts in its press release that

The Board advised, in writing, that she could serve as a Tarragon Board Member, provided that, among other things, she not use her City position to obtain any advantage for Tarragon or its officers or directors and she not use any City equipment, letterhead, personnel, or resources in connection with her Board service.

COIB, however, does not have the power to suspend the above Section 1100 of Chapter 49.

In the past there has been some mention that the Law Department gave Stark a verbal approval to take a second job. Whether the Law Department has the authority to suspend Section 1100 of Chapter 49, is open to debate. COIB, however, makes no mention of this alleged verbal approval in its press release.

It is clear that in 2005 Stark was in violation of long standing statutory requirement that city commissioners "give whole time to the duties of the office" and not have a second job.

In addition, Stark dangerously admits to the following in the settlement of this issue:

j. Despite the written instructions from the Board, I asked the First Deputy Commissioner at Finance and my Executive Assistant at Finance to perform administrative tasks for me on Tarragon-related matters, which tasks they performed.

It appears that by this admission Stark puts herself at risk of a misdemeanor charge under the above Section 1118 of Chapter 49.