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Findings and iJUN 5/990~ CHAMBER

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Of theJoint CommissionOn IntegrityIn thePublic Schools

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CommissionersJames F. Gill, ChairmanElizabeth ColonPaul J. Curran

Sandra J. MullingsMonroe E. Price

April 1990

JOINT COMMISSIONON INTECRITY IN TIlE PuBUC ScHoou;

51 Chambers Street. Room 1204New York. New York 10007

(212) 56&7575

James F. CillCJwinwn

Elizabeth Colon

Paul J. CurranSandra J. MullingsMonroe E. Price

Honorable David N. DinkinsMayor of the City of New YorkCity HallNew York, New York 10007

Honorable Robert F. Wagner, Jr.President of the Board of Education110 Livingston streetBrooklyn, New York 11201

Honorable Joseph A. FernandezChancellor110 Livingston streetBrooklyn, New York 11201

Dear Sirs:

Austin V. CamprielloChief Counsel

and Executive Diredor

April, 1990

This is the final report of the the Joint commissionon Integrity in the Public Schools, and it contains theCommission's findings and recommendations. I regret to reportthat we found serious corruption or impropriety almostwherever we looked.

I consider the Commission's work the most importantundertaking of my professional life. I am enormously proudof what the Commission and its superb staff accomplished inso short a period of time and at so little cost to thetaxpayers. I am grateful for having had the opportunity toserve.

I am prepared to meet with you at any time todiscuss this report and the Commission's work.

Very truly yours,

~ ,f IA'11

. llptLJ '-J. ;Ht{,C-

ames F. Gill, hairman

TABLE OF CONTENTS

Page

ACKNOWLEDGEMENTS

FOREWORD

SYNOPSIS OF FINDINGS AND RECOMMENDATIONS

THE NEW TAMMANY HALL

District 27 .

The First Threats: Be A Good Boy orElse

..................Who

AppointstheActingSupervisors?

..............

iv

ix

11

2

4

Sullivan's PlainEducation ...

Talk About7

Sullivan's "Little" Lists of Jobs •

Stazzone's piece of the Pie •.•.•.

The Secret of Sullivan's Success

12

37

50

Granirer Teaches "A VeryLesson" in Politics

Hard51

Sullivan Describes a Nation of PettyCrooks and Gangsters ..•.. 58

Granirer Nominates His Wife for aJob 73

The Board Votes on Genn's Contract

Lipkowitz's Plan to "Take the Wholestore" .

The Commission's Public Hearings

criminal Charges

77

78

96

96

TABLE OF CONTENTS(continued)

Page

A City-Wide Problem . . . . . . . . . . . 97

Conclusion ................. 99

Findings and Recommendations

FRAUD IN THE COMMUNITY SCHOOL BOARD ELECTIONS •

The Parent-Voter certification Law

The Board of Education Ignores Thisprovision for Three FullMonths .

The March Meeting: The Board Decidesto "Think" About the Law ...

The April Meeting: The Board Adoptsa "Litigation strategy" .••

The Board Finds it Cannot IdentifyThousands of Supposed Parent-Voters .

100

103

104

107

109

111

112

The Board certifiesRegistration List

the Entire........ 114

Other Derelictions of the Board ofEducation ••..•..•..

Financial Disclosure Requirements .

The Possibility of Double-Voting

status of Nominating Petitions FiledEarly ......••

Conclusions about the Role of theBoard of Elections .•

Conclusions about the Role of theBoard of Education ..

Findings and Recommendations

116

117

118

119

120

121

123

TABLE OF CONTENTS(continued)

District 9 Computer Inventory .

The Missing Computers ••••

The Unused Computers

Page

164

164

166

Where HaveGone?

the Missing Computers167

How Can TheseHappen? ...

Disappearances168

Findings and Recommendations

WHAT THE STUDENTS SEE

The Effectiveness of the SecurityPersonnel •••.••••

Other General Observations about theSchools •••••

Conclusion

Findings and Recommendations

DISCIPLINE

Conclusion

Findings and Recommendations

CONCLUSION

169

171

171

174

176

177

178

186

187

188

ACKNOWLEDGEMENTS

The Commission never would have succeeded withoutits superb staff.

Chief Counsel and Executive Director Austin V.Campriello drafted several sections of this report, andastutely supervised the investigations and conducted many ofthe public and private hearings on which this report is based.I cannot sufficiently praise his judgment, legal, andinvestigative skills, professionalism, drive, and leadershipin guiding our staff.

Deputy Chief Counsel Amyjane Rettew also brilliantlysupervised investigations, examined witnesses at public andprivate hearings, and wrote several sections of this report.Her superb writing skills, exquisite investigative instincts,toughness, and invariably correct legal advice were absolutelyinvaluable to the Commission.

I would also like to thank Assistant Chief CounselHeather A. Williams for her many contributions to severalinvestigations, and Deputy Chief Counsel for EducationalMatters Robert Simmelkjaer for the research he did. CounselBenjamin pineiro supervised investigations, examinedwitnesses, and contributed to this report. His enthusiasm,tenacity, and dedication were an inspiration.

I must also note with pride the work of Director ofInvestigations Joseph Comperiati, Chief Financial CrimesInvestigator Frank Frattolillio, and John J. O'Rourke, thePresident of J. O'R services, Ltd., a private investigationfirm.

Mr. Comperiati supervised all the Commission'sinvestigations. His investigative skills and vast experiencein supervising criminal investigations, his wisdom, and hisinevitably correct judgment were continuously valuable.

Mr. Frattolillio's investigative insights andconstant good cheer contributed enormously to the Commission'ssuccess.

Mr. O'Rourke's skill with witnesses, investigativeacumen, and tireless efforts, were critical to the success ofthe very important inquiries on which he worked.

Investigators and New York city Police Officersprovided many witnesses and much of the evidence for hearingsand the bases for the Commission's findings. The Commissionis grateful to Special Investigators Alphonsus J. Bauer andLeslie C. Smith, and Investigators Keith Howard, PatriciaMeier, Arek Tarih, and Michael Wassell.

The Commission also acknowledges its debt to the NewYork City Police personnel who were such a significant part ofour staff. Lieutenant Hazel stewart, Sergeants Ronald Alvarezand Thomas McCabe, Detectives Rafael Ramos, James Tedaldi,James Tierney, and Albert Sheppard, and Police Officers OscarHernandez, Wilhelm Dahl, Hector Gonzalez, Michael Hayes,Joseph Longo, and Kevin O'Neil truly are New York's finest.

In addition, Internal Revenue Agents PatrickCampbell and Michael Henry obtained evidence and providedanalysis that was invaluable to the Commission's work.

Drug Enforcement Administration liaison officerAlfred LaPerch also assisted in gathering evidence for theCommission.

Jennifer Cunningham, the Deputy Executive Director,participated in writing this report, and was, among otherduties, responsible for the Commission's relations ,with themedia, advocacy groups, and certain governmental leaders. Herwisdom and unflagging efforts on behalf of the Commission weremarvelous.

Office Administrator Tracey Gibbons, an unpaidvolunteer for many months, was tireless on our behalf. Shenot only managed our office, but also deftly and successfullyoversaw the Commission's relations with the vast, andsometimes labyrinthine, City and Board of Educationbureaucracies -- a daunting task for most, which neverintimidated her.

Diana Palma helped run the office with efficiencyand wit, and I want to thank her and her summer colleague LisaWhitaker for their efforts on our behalf.

I also want to acknowledge the excellent work,sometimes in very trying circumstances, of Steve Klein andStewart Nissenbaum and their staff at National ReportingServices.

Several law enforcement officials provided enormoushelp to the Commission. The Commission's staff could not havefunctioned efficiently and effectively without theirunstinting assistance.

Police Commissioner Richard J. Condon respondedimmediately to every Commission request for police personneland technical assistance. He could not have been more helpfulto the Commission.

For an entire year, commissioner Kevin Frawley ofthe Department of Investigation put his entire department at

ii

the Commission's disposal. In addition to supplying technicalassistance repeatedly, at critical times he selflessly gavethe commission's work priority over the Department's ownmatters. His invariably helpful attitude and continuousassistance were a model for cooperation between lawenforcement agencies.

First Deputy Commissioner Patrick Hoey of theDepartment of Investigation worked with Chief CounselCampriello on almost a daily basis. In addition to providingvaluable advice, Commissioner Hoey ensured that theDepartment's cooperation with the Commission went smoothly.No one was more helpful to the Commission.

Governor Mario M. Cuomo, and Chairman Thomas A.Duffy, Jr. of the state Liquor Authority, graciously permittedMr. Comperiati to take a leave of absence from his post asChief Executive Officer of the state Liquor Authority to workwith the Commission. New York County District Attorney RobertM. Morgenthau permitted Ms. Rettew to take a leave of absenceas the Deputy Chief of his Appeals Bureau to join the staff.

Police Commissioner Benjamin Ward and Chief ofInspectional Services Daniel F. Sullivan provided the New YorkCity Police Officers who were so critical to the Commission'swork. Wayne Beyer, Assistant Chief of the ManhattanExamination Division of the Internal Revenue Service, allowedMr. campbell to join our staff while being paid by theService. Similarly, Nunzio Donato, the Chief of the BrooklynExamination Division of the Internal Revenue Service, allowedMr. Henry to work with our staff. Drug EnforcementAdministration Regional Director Robert Stutman permitted Mr.LaPerch to work with the Commission for six months.

Corporation Counsel Peter L. Zimroth, FirstAssistant Corporation Counsel Doron Gopstein, and members oftheir staff gave valuable guidance and assistance to theCommission.

Others to whom the Commission are indebted forassistance, advice or both, are Michael F. Armstrong, JudithBaum, Peter Bienstock, Diana Caballero, Constance Cushman,Senator Alphonse D'Amato, Sandra Feldman, Chancellor Joseph A.Fernandez, Bronx Borough President Fernando Ferrer, SheilaGrubman, Honorable John F. Keenan, Honorable Whitman Knapp,Deputy Chancellor Stanley Litow, Thomas E. Mark, Janet Price,commissioner Susan Shepard, Ellyn Toscano, and RhondaWeingarten.

The Commission also received cooperation from theUnited States Attorney for the Eastern District of New York,the Kings County District Attorney's Office, the New York

iii

County District Attorney's Office, the Queens County DistrictAttorney's Office, the Essex County New Jersey Sheriff'sOffice, the Essex County New Jersey Prosecutor's Office, theEast Orange New Jersey Police Department, the HamdenConnecticut Police Department, and the Federal Bureau ofInvestigation.

I am also deeply grateful to my fellowCommissioners: Elizabeth Colon, Paul J. Curran, Augusta SouzaKappner, Sandra J. Mullings, and Monroe E. Price. Eachbrought valuable insights, judgment, and wisdom to our work.Each devoted a great deal of time and worked terribly hard tohelp to make the city school system work better for ourchildren.

I am immensely proud of this report, of each memberof our staff, of all their work, and of this Commission'saccomplishments. I am enormously grateful to all those whoassisted us during the past sixteen months.

James F. GillChairman

iv

FOREWORD

Sixteen months ago, Mayor Edward I. Koch and theCentral Board of Education established this commission inresponse to disturbing signs of corruption in the publicschool system.

The Commission's empowering documents dictated itsmandate in language virtually identical to that of an earlierMayoral Commission: the Knapp Commission set up in the early1970' s to investigate corruption in the criminal justicesystem. The Commission's mandate was quite broad: to searchout the extent of corruption and impropriety in the system andto make recommendations for reducing them in the future.

Thus, our approach was necessarily different fromthose of other Commissions and task forces that wereaddressing the needs of the public school system from aneducational or political perspective. And, accordingly, weassembled a staff experienced in criminal investigations, lawenforcement, and criminal prosecution.

This report summarizes the results of theCommission's investigations and lays out the evidence ofcorruption, impropriety, and gross mismanagement theCommission discovered during those investigations. The reportalso makes a series of detailed findings and recommendations,which are compiled in a synopsis.

We stress, however, that this report should be readin conjunction with the Commission's earlier reportInvestiqating the Investiqators -- which revealed crucialweaknesses in the structure, administration, and personnel ofthe Board of Education's Inspector General's Office. Thatreport highlighted the urgent need for an effective andtrusted independent agency to replace the current InspectorGeneral's Office.

It is the Commission's conclusion that none of thesubstantive recommendations in this report will be effectiveunless the victims of corruption and impropriety in the systemhave an agency they can trust to turn to with their evidenceof wrongdoing.

In formulating our recommendations, the Commissionoperated within a philosophical framework that the followingobservations may help to clarify.

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What is Corruption?

Sometimes, corruption takes the form of criminalconduct. Sometimes, a pattern of impropriety is corrupt.But, sometimes, impropriety, not in itself corruptly­motivated, is every bit as fatal to the integrity of thesystem -- here, our fragile schools -- as criminal conduct.

Consesequently, we focused on theft, whether it tookthe form of stealing equipment or creating unnecessarypatronage jobs. We also focused on the lack of integrity inthe elections by which local boards are chosen. And, wefocused on the failure to enforce a system of discipline thatdeals effectively with teachers and principals who ought to beremoved. In our view, permitting criminal conduct to persistunpunished becomes a form of corruption in itself.

How Biq is the Problem of Corruption?

The Commission's hearings revealed that millions aresquandered on unneeded patronage positions. We have alsofound, too often, that superintendents, principals, and otherswho guide our schools are selected and promoted on groundsother than merit, and that teachers are retained when theyshould be subject to reassignment, further training, ordiscipline.

The Commission also revealed thousands of dollarswasted through gross fiscal mismanagement. Some of that moneyis spent on vital equipment that just disappears. Additionalmoney is wasted on unnecessary frills for public servants.And, enormous amounts of money are stolen by completelyimproper behavior like dial-a-porn. without question, hugeamounts of money could be used more effectively if the systemensured that educational priorities were dominant.

Squandered resources and wasted opportunities arenot the only consequence of corruption. Corruption also hasan insidious and pervasive effect on attitude. In these verydifficult times, the school system requires a sense ofpurpose, of idealism, and of leadership. Corruptionundermines all of these. Dedication is hard to sustain whenthose who lie, cheat, and steal are rewarded as well as thosewho do not, and when the system ignores merit as a basis foradvancement and honor.

What Should Be Done?

The Commission's report includes many specificrecommendations. But, some words about general choices are in

vi

order. The Commission believes that there are three basicrequirements for enhancing integrity in the public schoolsystem: (1) improving monitoring and enforcement; (2)establishing better leadership; and (3) addressing structuralflaws that increase the likelihood of corruption.

Monitorinq. Given the complexity of the system'sstructure, and given our findings of patronage andimpropriety, we strongly urge more effective, more reliable,and more forceful monitoring. As a first, and critical step,therefore, we recommend that the Mayor immediately establisha Special Commissioner to Investigate the Public SchoolSystem.

Yet, everyone in a position of responsibility mustmonitor the integrity of the system -- a responsibility thathas all too often been ignored. As our report on thetelephone abuses and other fiscal mismanagement reveals, theCentral Board, the districts, and the principals all haveimportant monitoring responsibilities, but they have rarelybeen held accountable for their failure to fulfill thoseobligations.

This lack of accountability has led to weak businessmanagers who cannot, or will not, monitor spending and preventfiscal abuses. And, because of this lack of accountability,there are all too many principals who neither know nor carewhere valuable equipment is. Furthermore, ambiguity about therelationship between the central board and the local districtshas been a recipe for disaster.

Leadership. Strong leadership, from the CentralBoard and from the districts and the schools, is the surestway to enhance the integrity of the system.

If the local board and superintendent are notfulfilling their responsibilities to prevent corruption, theChancellor must, while maintaining the spirit ofdecentralization, continue to use his power of supersessiondecisively on behalf of the integrity of the system.

But, the system cannot depend solely on theleadership and efforts of the Chancellor. Strong andeffective principals are needed to reduce the likelihood ofcorruption in the schools and we support current efforts torender the selection of principals less subject to cronyism.

Our recommendations for increased monitoring shouldalso bring the light of public scrutiny to the process.

structure and Governance. Corruption is sometimesa function of some bad apples and hence cries out for better

vii

monitoring. Corruption is sometimes a function of lack ofleadership and vision and hence cries out for better andstronger people in top positions. But, sometimes, corruptionis a function of structure, confused lines of authority, andambiguity in power.

For structural reasons, we have recommended that theSpecial Commissioner -- who would replace the InspectorGeneral -- should be appointed by the Mayor, not the Board ofEducation. This structural change will clarify what hassometimes been the Inspector Generalis ambiguous relationshipwith the Central Board of Education.

This report also examines aspects of the lastcommunity school board election and finds significant faultwith the conduct of the Board of Education and the Board ofElections. Our democratic system is based on the idea thatelected officials are accountable to the voters. If thevoters do not vote, officials are accountable to no one.Accordingly, we have recommended some critical structuralmeans of increasing political accountability.

Conclusion

The New York City public school system faces manyarduous assignments as we approach the 21st century. If weare to thrive as a community, we cannot allow our children tobe ill-educated and ill-prepared. It is our hope, as aCommission, that we have improved the environment for a morethorough and less politicized debate on the need for changewithin the system. Particularly in these times of fiscalscarcity and increasing demands on the schools, it becomesever more important to ensure that corruption does not rob ourchildren of their future.

viii