I have received several calls with information shining more light on this issue and documents I received today answer a few questions , but raise even more.
Although Saundra Kee-Borges may have seemed unaware of the requirement to make the payment to a Trustee for the $62,500 payment owed to suspended former attorney Joseph Moniz, the paper trail shows otherwise, and at the very least others in the Corporation Counsel's Office seemed to be well aware of the Court Order.
Specifically Deputy Corporation Counsel Carl Nasto seems to be the driving force behind getting the check issued directly to Moniz rather than the Court ordered trustee, Attorney Sidney Schulman. Whether he was doing that on the order of Corporation Counsel Borges or on his own is unknown at this time.
In an e-mail dated Thursday, August 5, 2010 Nasto requested "emergency checks" be issued, in particular one check to "Joseph Moniz, Esq.". In his e-mail Nasto states that "the Court determined that he could be the recipient". For Nasto to address this, he obviously was aware that there was a requirement that the checks be issued to Moniz through the court appointed trustee. Nasto does not mention what "court" determined that the check could be issued to Moniz, rather than the trustee as previously ordered.
Court testimony before Judge Aurigemma on October 5, 2010 seems to contradict Nasto's statements. Other documents also seem to contradict Nasto's request to pay Moniz directly, in violation of the previous court order. In an Interdepartmental Memo dated March 31, 2010, former Corporation Counsel John Rose clearly outlines the payment requirements in writing to City Treasurer Kathleen Palm-Devine.
In the March 31, 2010 memo,Rose specifically stated the July 31, 2010 of $62,500 due to Moniz needed to be paid to "Sidney Schulman, as Trustee for Joseph Moniz". There is no documentation in any court record that Schulman was ever removed as the Trustee, as Nasto stated.
complete text and copy of Rose's memo below
Whether Nasto was confused or intentionally provided misinformation to the Treasurer to have the check issued to Moniz is unclear. His e-mail though clearly indicated that he requested the "emergency check" to be issued to Moniz. More documents have been requested through a Freedom of Information request, although none have been provided at this point.
One further indication that everyone should have known that payments needed to be made to Schulman as the Trustee for the suspended Moniz is the very same settlement agreement that Moniz was being paid for. On page six of the Cintron-Vaughn Settlement Agreement dated February 18, 2020 payments to the attorneys are outlined. The agreement clearly states that the July 31, 2010 payment should be made payable to "sidney Schulman, as Trustee for Joseph Moniz". It appears that no modifications have been made to the terms of the agreement and the terms of the agreement are still binding.
complete text and copy of Cintron settlement agreement below
More will be coming on this, but it seems pretty clear that from all indications the check should not have been issued to anyone except Sidney Schulman as trustee for Joseph Moniz unless Judge Aurigemma or another Judge ordered it. As of now it seems that there are no such orders or modifications. In speaking with several attorneys they all feel that the City is still responsible for making the proper payment to the Trustee account and most likely the City will have to try to recover the improper payment to Moniz.
Rose Cintron Payment Memo
Nasto Emergency Check Email
Cintron Settlement Agreement
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