Wednesday, April 5, 2023

Roosevelt Island Corruption Allegations Against RIOC President And Senior Staff By 3 Former Employees In Whistleblower Lawsuit Getting City Wide Attention In Crains NY Article - Assembly Member Seawright Says Reports Are "Alarming"And Demands "Transparency And Accountability From RIOC"

Crains NY Business reported yesterday:

Click here for the full article.

Yesterday, I asked NY State Governor Kathy Hochul and Roosevelt Island Operating Corp (RIOC) Board of Directors Chairperson (also Commissioner of NY State Homes and Community Renewal) Ruthanne Visnauskas:

Roosevelt Islander Online has previously reported on corruption allegations made by former RIOC employees against senior Rioc management including current Rioc President Shelton Haynes as well as a whistleblower lawsuit filed by former Rioc employees who allege they were fired because they reported their concerns to the NY State Inspector General.

Here and here for example.

Today Crain’s New York reported much of this information too. According to Crain's (article behind a paywall):

Three ex-employees of the state body that controls Roosevelt Island say their bosses steered public money toward a personal friend, concealed details about a drowning death, then fired whistleblowers who raised objections:

Does Governor Hochul have any comment on this matter of great concern to the Roosevelt Island community? Does the Governor have confidence in Shelton Haynes remaining as Rioc President?

A spokesperson for Governor Hochul answered:

We’ll decline comment due to the pending litigation.

I followed up:

I understand limitations caused by the lawsuit. 

But can you comment as to whether there is any investigation by the State regarding these charges and if Shelton Haynes will remain Rioc President while the allegations are pending?

These are very serious allegations of great concern to the Roosevelt Island community.

 Will update if there is a reply.

According to Roosevelt Island NY State Assembly Member Rebecca Seawright:

The reports made by whistleblowers, 3 former Roosevelt Island Operating Corporation (RIOC) employees are alarming. I along with my Roosevelt Island constituents continue to fight for transparency and accountability from RIOC, the governing agency.

Ms Seawright adds:

Roosevelt Islanders deserve quality representation that is responsive and transparent. When I and other elected officials received an anonymous report from RIOC employees on March 21, 2022, I immediately referred the complaint to the New York State Inspector General for appropriate follow-up and action. Constituents consistently report that the Roosevelt Island Operating Corporation (RIOC) has been unresponsive in the day to day operations of the agency. The dysfunction and veil of secrecy cited throughout the pending lawsuit is distressing and unacceptable. I will continue fighting to ensure RIOC is held accountable and that the people of Roosevelt Island receive the services and attention they most assuredly deserve.

Here's the lawsuit filed by former RIOC employees.

RIOC President Shelton Haynes did not respond to my request for comment on the matter.   

The Crains article adds:

... Through an attorney, Haynes and RIOC declined to be interviewed. Their attorney, Howard Miller, said in a statement that the allegations made against the corporation are “completely false and fabricated.” “The lawsuit itself is a means of exacting a settlement over the severance pay that was offered to the plaintiffs,” Miller said in a statement....

... RIOC has filed a motion to dismiss the suit, which remains pending. Meanwhile, in mid-March, the corporation hit back with its own defamation lawsuit against the three fired employees—the latest chapter in years of controversy that have clouded the agency’s work....

During the April 3, 2023 RIOC Board of Directors meeting, there was no mention by Mr Haynes or the Board Directors of any chaos or corruption allegations but there was a last minute item placed on the meeting agenda for an Executive Session (meaning, in secret and closed to the public) concerning pending litigation.

Nor did Mr Haynes address any of the corruption and management chaos allegations in his President's Report to the community. Instead he praised his RIOC team and noted that in 2 weeks he will be celebrating his 7th anniversary working at RIOC.

Here's the RIOC President's Report from Mr Haynes.

Stay tune for more to come.

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