The Letitia Files: Did Letitia James Illegally Hire a Nonprofit for Her 2013 Campaign?

The Letitia Files:
1. Big Development: Is Letitia James Guilty of Mortgage Fraud?
2. Mortgage Fraud Alert: Did Letitia James Marry Her Father?

Guest post by Joel Gilbert

New York Attorney General Letitia James’ multi-family apartment building in Brooklyn has begun to resemble a crime scene. Last week, I revealed two major incidences of potential mortgage fraud by James.

I detailed Letitia’s misrepresentations in her government HAMP Loan application whereby she falsified the number of apartment units in her building to obtain a loan at 2.7% on the back of the American taxpayer.

I also revealed that James once obtained a home loan by claiming she had married her father. By borrowing with her father, Robert James, as “husband and wife,” she was able to secure a home loan when she was 24 years old.

Now the spotlight is shining on what could be considered illegal campaign activity by Letitia James in 2013 when she ran for New York City Public Advocate.

The New York City Campaign Finance Board is an independent, nonpartisan agency that oversees the city’s campaign finance system.

Its main responsibilities include ensuring candidates comply with NYC’s campaign finance laws, including contribution limits, spending restrictions, and financial disclosure requirements.

Searching their records for Letitia James, it indicates her campaign hired New York Communities for Change (NYCC), a non-profit 501(c)(4) organization, to engage in political campaign activity on her behalf in September, October, and November of 2013.

The campaign activities listed by James indicate that her campaign paid NYCC for “Campaign Workers,” “Canvassing,” “Staffing,” and “Staff/Rent/Phone.” The total expenditures were $3,494.38.

NYCC describes itself as a grassroots organization focused on community organizing, direct action, and legislative advocacy to address issues like housing, environmental justice, and community safety in New York.

They claim, “We are fighting for safe, affordable & stable homes and neighborhoods instead of evictions and displacement” and “A safe and thriving planet to build our communities on”.

There are distinctions in the IRS rules between 501(c)(3) and 501(c)(4) organizations as regards political activity. The law regarding 501(c)(3) non-profit organizations is strict – non-profits cannot participate in any political activity.

James herself issued a press release in 2020 entitled “Attorney General James Issues Political Activity Guidance for Non-Profits Ahead of the November Election”. In the release, James lectured non-profits, warning them in advance of the 2020 election that they were strictly prohibited from engaging in any political activity.

NYCC was organized in New York as a 501(c)(4) in 2009 as a successor to ACORN. Corporations organized as 501(c)(4) are called “Social Welfare Non-Profits” and their donations are not tax deductible.

Operating for social welfare, according to the IRS, means that an organization must “operate primarily to further the common good and general welfare of the people of the community.”

A 501(c)(4) can engage in some political activities, including advocacy and lobbying, but political work cannot be their primary activity.

They are allowed to engage in things like posting partisan political messages on social media, but they cannot directly support or oppose candidates for public office in a public manner.

While they may conduct independent political expenditures, they cannot coordinate with campaigns. Accordingly, political campaigns in the United States steer clear of 501(c)(4) organizations because they are prohibited from coordinating directly with political campaigns or candidates.

If a 501(c)(4) were to provide campaign workers or canvassing services to a candidate, it would be considered an in-kind contribution. Therefore, all the activities that Letitia James paid NYCC for in 2013, “Campaign Workers”, “Canvassing”, “Staffing”, and “Staff/Rent/Phone” were very likely not legal.

​New York Attorney General Letitia James has consistently emphasized the importance of upholding the law. Her statements include “As the elected Attorney General of New York, I have a sworn duty to protect and uphold state law.

My office will follow the facts of any case, wherever they lead.” She has also said, “In New York, we value the rule of law, and my office will always work to ensure our laws are defended, no matter who attempts to sidestep or ignore them.”

Letitia James has repeatedly stated that “no one is above the law.” If she stands by that principle, then transparency around her campaign’s dealings with NYCC is the least New Yorkers deserve.

Were the payments legal? Was NYCC acting within its nonprofit mandate? Or did the Attorney General’s campaign improperly benefit from hiring a non-profit for political gain?

Only a full accounting – and perhaps an official investigation – can answer these questions definitively.

Now may be the time for Letitia James to resign in the hopes that her resignation might discourage a federal investigation for mortgage fraud and illegal campaign activity.

Joel Gilbert is a Los Angeles-based film producer and president of Highway 61 Entertainment.

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