The staff of an embattled Queens nonprofit overlaps closely with the payroll of state Sen. Malcolm Smith, one of the charity's founders. At least four workers at the New Direction Local Development Group—which is under federal investigation and allegedly fleeced Hurricane Katrina victims out of about $30,000 raised on their behalf—have also worked for Smith at a time when the politician gave the organization about $56,000 in state funds.
According to the Times, workers including Smith's former chief of staff and counsel "appear to have played major roles in the nonprofit group over several years," while others "hold posts that suggest they are or were close to Senator Smith or are deeply involved in his political affairs." While there is no law against state senators giving grants to nonprofit groups that employ staffers, friends or relatives, charities that receive earmarks must disclose any connections in a signed statement, according to the paper.
One of the Smith staffers involved in the nonprofit is former special assistant Claude Stuart, 48, who earned $50,000 a year while on the state senator's payroll. Stuart—a former prosecutor who was dismissed from his post after lying to a judge during a murder trial—has come under fire for the alleged Hurricane Katrina scam, in which the nonprofit reportedly only paid out $1,392 of the $31,000 it raised for storm victims. Stuart told the Post he isn't to blame. "I didn't control the money. I don't know why the focus is on me," he said. "You are looking in the wrong direction ... There were other people in control. There was a treasurer and board members."
A spokesman for Smith told the Times: "Senator Smith's integrity, compassion, and respect for his office have never been questioned."
