Editorials: New York’s Big Money Loophole | The New York Times
Nearly two decades ago, New York’s Board of Elections quietly created a gigantic loophole in the state’s campaign finance laws when it decided that limited liability companies were no different from people when it came to donations to candidates. Under state law, corporations are limited to political donations of $5,000 a year. But limited liability companies are allowed to donate $60,800 a year to any statewide candidate, just like individuals. The loophole has been an invitation to abuse. The most recent campaign filings in New York revealed that in the last six months, Gov. Andrew Cuomo received $1.4 million from L.L.C.s while Attorney General Eric Schneiderman got about $220,000. Both politicians have called for closing the loophole, which allows donors to set up numerous small, secretive companies often identified only by an address. For instance, 56th Realty, 80th Realty and 92nd Realty are three L.L.C.s listed at the same address, which is also the address of Glenwood Management, a powerful real estate company.