NY Fracking Scandal: Seven Groups Demand Conflict of Interest Investigation of Cuomo Administration
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New York could soon become the newest state in the union to allow hydraulic fracturing (fracking), the controversial technique used to enable shale oil and gas extraction. The green light from New York Governor Andrew Cuomo could transpire in as little as " a couple of weeks," according to journalist and author Tom Wilber.
That timeline, of course, assumes things don't take any crazy twists or turns.
Enter a press conference today in Albany, where seven groups, including Public Citizen, Food and Water Watch, Frack Action, United for Action, Catskill Citizens for Safe Energy, and Capital District Against Fracking, called for an Albany County District Attorney General investigation of the Cuomo Administration.
They are asking "whether Lawrence Schwartz, Secretary to Gov. Andrew M. Cuomo, has a conflict of interest between his stock investments and his involvement in the state’s decision on whether to allow high-volume hydraulic fracturing for shale gas."
Schwartz - dubbed " the ringleader" of Governor Cuomo's administration - potentially has what these groups describe as a legal conflict-of-interest. A months-long DeSmogBlog investigation reveals that Cuomo's chief-of-staff actually has a direct financial interest in fracking going forward in New York state, potentially falling under the sphere of insider trading.
Above and beyond Schwartz's annual oil and gas industry stock holdings in corporations ranging from Occidental Petroleum, Williams Companies, ExxonMobil/XTO, and General Electric (GE) for the past decade, the Cuomo Administration has also held numerous meetings with lobbyists representing some of these same corporations dating back to when Cuomo assumed office in Jan. 2011, records obtained under New York's Freedom of Information Law (FOIL) by DeSmogBlog reveal.
Dirty Details: Oil/Gas Industry Stock Holdings, Meetings with Lobbyists from Same Corporations
The details are dirty, both figuratively and literally.
A September 2012 investigation by the Environmental Working Group (EWG) examined Schwartz's past three financial disclosure forms. That probe revealed that he had stock holdings of $1,000+ each in Occidental, Williams, Exxon/XTO, and GE in both 2010 and 2011, respectively. All four of these corporations possess a financial stake in Cuomo approving fracking in New York.
2009 saw much of the same, a year in which Schwartz had $1,000+ in his stock portfolio invested in GE, Williams, and Burlington Resources ( purchasd as a subsidiary by ConocoPhillips in 2005).
DeSmogBlog followed in the footsteps of the EWG investigation by filing both an Executive Chamber FOIL request, as well a FOIL request to Schwartz's former employer, the Westchester County Executive Office, asking for his financial disclosure forms dating back to 2002.
That latter request revealed that Schwartz has had stock holdings in the oil and gas industry dating back to 2002. At that time he was working as chief-of-staff to then-Westchester County Executive, Andrew J. Spano.
In 2002 and 2003, Schwartz had over $1,000 in stock holdings in Chevron and GE. Until 2001, Texaco - purchased in 2000 as a subsidiary by Chevron - was headquarted in Westchester. The Westchester County Executive Chamber did not possess Schwartz's forms for 2004 or 2005.
His 2006 filings reveal $1,000 or more in his stock portfolio invested in Burlington Resources, GE, and Williams Companies.
Records obtained from Cuomo's Executive Chamber also revealed that lobbyists from the very corporations Schwartz has thousands of dollars of stock holdings in have earned the ear of Cuomo in the form of exclusive meetings with his high-level aides.
One case in point: Both in April 2012 and in Sept. 2012, Williams Companies lobbyists had meetings with Cuomo aides on the status of its proposed Constitution Pipeline, a joint venture between Cabot Oil and Gas, Piedmont Natural Gas and Williams Companies. That 120-mile long, 30-inch prospective pipeline, if approved, will carry gas produced in NY's section of the Marcellus Shale to markets throughout the northeastern U.S.