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Board Investigating Alleged Finance Violation in Mayoral Campaign

Gajewski claims 'mudslinging.' Powell denies 'smear campaign.'

A letter to the city’s elections board alleges that Councilman Piotr Gajewski, a candidate for mayor, exceeded the $1,000-per-donor contribution limit spelled out in the city’s election code.

The complaint, filed Friday by Rockville resident Drew Powell, focuses on Gajewski’s Sept. 30 campaign fund report, which shows that Gajewski accepted two “in-kind” contributions of $600 each covering rent for his campaign headquarters at 718 Rockville Pike.

“This contribution appears to be from a single source and therefore is in violation of Rockville election code, in that it exceeds the $1,000.00 limit by TWO HUNDRED dollars,” Powell wrote. (Click on the PDF at the right to view the letter.)

David Celeste, chairman of the city’s Board of Supervisors of Elections, in an email to Powell on Monday obtained by Rockville Patch, said that the board is investigating the complaint.

Celeste could not say if the investigation would be complete by the Nov. 8 election, The Gazette reported.

One of the $600 contributions, listed in the campaign report as being for “Campaign Office Rental” is from Neil Marcus. The other is from “MS PIKE LLC.” Both contributors share the same Bethesda address. The address is that of Finmarc Management Inc., where, Powell wrote, “Mr. Marcus is an employee and/or principal.”

The letter of complaint is cosigned by eight people, including Joseph Jordan, who was a candidate for City Council before . Jordan served as campaign manager for Mayor Phyllis Marcuccio in 2009 and is one of several of the cosigners who have contributed to Marcuccio’s reelection campaign.

“My understanding is that under our law, any entity can give up to $1,000,” Gajewski said in an interview on Friday.

For example, if a husband and wife are sole shareholders in a corporation, a husband could give $1,000, his wife could give $1,000 and the corporation could give $1,000, Gajewski said.

Regarding the two contributions in question, one was from a company and one was from an individual, he said.

“If I’m wrong and the elections board finds there’s a violation, it’s nothing, it’s easy then for me to refund $200,” he said.

Gajewski told The Gazette that the lease agreement for the headquarters is for a market-value rent of $300 a month for four months, for a total of $1,200.

The headquarters are in a former auto dealership building that was used last year as Montgomery County headquarters for former Gov. Robert L. Ehrlich Jr.’s campaign for governor.

Gajewski said the complaint “deflects from real issues” of the election.

“It’s not a story. It’s a mudslinging event,” he said.

Gajewski said that he reported the contributions and that he and Marcuccio are spending similar amounts.

“If I had attracted $40,000 in developer money to her $12,000 in contributions, well, OK, there’s a story in that,” he said. “In a city of 60,000 people, if 20 people are talking about it amongst themselves, does it need a megaphone at that point?”

Powell is the former executive director of the now-defunct political action committee Neighbors for a Better Montgomery. He ran for mayor in 2007.

In , Powell called out Gajewski for .

Powell said Tuesday that he had heard allegations that he is conducting “a smear campaign.” Such claims are unfounded, he said.

“I’m not affiliated with any other candidate,” he said.

If there was evidence of potential violations by other campaigns, “I would be saying something about it,” he said.

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Dan Cohen October 27, 2011 at 03:54 am
I have lived and voted in Rockville for many years. I promised myself that for this election I would really try to read up about the candidates and maybe make it to a debate. I did. I was at the King Farm debate, when Mr. Gajewski was asked if he took money from developers. He answered in a cheeky way saying that he had taken no money from them. I read on the Patch, where he did and frankly couldn’t believe that any candidate would be so brazen as to lie about something that is so easy to check out. I clicked on the Patch link to Gajewskis campaign money on the city site and found the names of the folks who are said to be developers and lawyers for developers. I still needed to prove it to myself. I got this idea. I entered Gajewski’s contributors named in the Patch into the rockvillemd.gov search engine at the top of the page and sure enough, they were the developer lawyers that got Rockville to go for that development next to the Montgomery County trash facility. What was Gajewski thinking?
Dan Cohen October 27, 2011 at 03:57 am
Then this campaign cheating about Gajawski’s headquarters comes out today and I remembered what he said about that at the King Farm debate. He said he received his campaign headquarters from some business “pro bono.” Those were his exact words, “pro bono.” Then he says, and I quote him from the Gazette piece, “We signed a lease agreement, I think in August, and the agreement stipulates that the market value for the space is $300 a month for four months.” First, I’ve done a few leases in my time and you don’t sign a lease if you’re getting something “pro bono.” A lease is a contract: you pay something to get something. Pro bono is a gift. Which is it? Also, I’m somewhat familiar what space costs up and down Rockville pike. The average is in the $5,000 to $10,000 a month rate. PLEASE tell me where I can lease Rockville Pike property for $300 a month. I’d sublet and make a killing! Also, looking at Gajewski’s report, there’s no way it says anything about $300 over 4 months. Gajewski says $600 for august and $600 again for August. It all looks intentionally misleading. Gajewski says, the complaint “deflects from real issues” of the election. Give me a break. His utter lack of credibility, lack of ethics, and breaking the law ARE election issues. I can’t wait to hear what comes out of Gajewski next. Every time he opens his mouth he digs himself in deeper. Councilman Gajewski is a disgrace, mayor gajewski would be a disaster.
Joseph Jordan October 27, 2011 at 04:58 am
Dan, Bob Ehrlich rented the same space last year for his HQ and paid $3000 a month to C E Property, owned by Clayton Eisenger. Mr. Markus does not own the property, so it is not his to give. Markus is also President of Finmarc, and MS Pike is part of Finmarc. If it is determined the fair-market value is greater than $300, Gajewski's campaign could owe a lot more than $200.
This is not mudslinging, but it is about honesty and integrity. Mr. Gajewski has been caught in so many distortions and fabrications in the past week or so, and people should be asking themselves if this is the person we want as our Mayor.
Piotr Gajewski October 27, 2011 at 11:36 am
Mr. Cohen,
Thanks for your comments. With respect to the so-called “developer” money: the reason we can have this discussion is because I disclosed, in complete detail, as is required, every single contribution to my campaign. The only contribution, as of last report, that is from someone that could be even remotely characterized as a “developer” (and I would not characterize him as such, as he is retired and has had no development projects for years) is Mr. Aris Marderosian, who is a friend and has contributed to my campaign in 2007, 2009 and 2011 (all of these disclosed, as required). More importantly, I am not aware that Mr. Marderosian has ever had any business before the City or Rockville Council, but I can state with 100% certainty that he has not had any business before the Council since I have been elected.
Piotr Gajewski October 27, 2011 at 11:36 am
Since the clear implication of this smear campaign against me (see yesterday’s Gazette endorsement of me which condemns the “11th hour attacks” attacks against me: www.gazette.net/article/20111026/OPINION/710269485/1014/rockville-will-have-new-leaders&template=gazette) is that I am influenced by “developers,” with respect to this contribution, the argument does not hold water.
There are two other contributions to my campaign that you bring up. They are smaller, and you correctly point out that they are not from “developers;” they are from lawyers. So, I stand by what I said at the King Farm forum. I also stated at the King Farm forum that I would not turn down contributions from developers if they came my way. There is nothing unethical about this.
Piotr Gajewski October 27, 2011 at 11:54 am
Mr. Cohen,
Also, thank you for bringing up the issue of my campaign office; I welcome the scrutiny. As I fully disclosed on my campaign report, the office space is being donated to me, and I have paid no money for it (your speculation above about any such payments notwithstanding – more smears, no facts). I believe that I correctly reported the in kind contribution on my financial report and I look to the Board of Elections to confirm this after their careful examination.
Piotr Gajewski October 27, 2011 at 11:56 am
It is sad that Mayor Marcuccio fuels attacks like these (the Gazette yesterday wrote: “It’s not unreasonable to judge Marcuccio, 78, by some of the company she keeps and the city has become something of a sideshow in Montgomery County politics with her at the helm”). She could have done the right thing and condemn them. She is choosing not to as they apparently deflect from her failed leadership.
If she had her way, Rockville would not be building the new police headquarters. If she had her way, Choice Hotels would not be relocating to Town Center. These are the issues that speak to the future of Rockville.
Tim Fahey October 27, 2011 at 12:50 pm
Mr. G, you are blaming the victim saying someone else is fueling the attack, because the issue is you, not other people. You have a right to present the facts however you see them, but presenting them honestly and truthfully is not your strong suit. Your alignment with the developers says something about how you will treat the developers in the future. Since we are talking about the future, we need an honest and impartial broker to represent our city, not someone who will make deals in secret. Mayor Marcuccio has always insisted on keeping the campaign clean. So if someone brings up an issue that you are not honest, you must ask yourself, does the shoe fit?
Jeff Hawkins October 27, 2011 at 01:04 pm
WOW.....the whole thing kinda smells doesn't it? I mean all sides are equal in this, not just the one. I guess it's no wonder so few people actually vote. Whenever I ask my co-workers or family members about voting, usually the answer is that they are all crooks or they all act like children, so why bother.
I don't like that answer, but honestly sometimes I can understand why they would say that. This is one of those times. I hope somehow there can be some civility come out of this.
Piotr Gajewski October 27, 2011 at 01:54 pm
Mr. Fahey,
I do not align myself with developers at all. Indeed, I was one of the first to condemn the recent proposal of a Walmart on 355 right outside of the City’s borders as it flies in the face of my vision for Rockville Pike. I understand that last night the Planning Commission, largely appointed by Mayor Marcuccio, approved the Silverwood project near King Farm. I think that this is a great decision and bears out my support of it (Ms. Marcuccio opposed it – another example of her being in the minority on important decisions).
Theresa Defino October 27, 2011 at 01:54 pm
It "smells" like the mayor's supporters are doing everything they can from discussing her record. Can't say I blame them.
Piotr Gajewski October 27, 2011 at 01:55 pm
As far as Ms. Marcuccio insisting on “keeping the campaign clean:” I personally have never heard her address the issue, so I will again defer to the Gazette statement that I cited above (“It’s not unreasonable to judge Marcuccio, 78, by some of the company she keeps and the city has become something of a sideshow in Montgomery County politics with her at the helm.”)
Jeff Hawkins October 27, 2011 at 02:04 pm
You are right, it does indeed "smell.
Joseph Jordan October 27, 2011 at 03:53 pm
The article preceeding all these comments has nothing to do with developers or taking contributions from developers. It has nothing to do with the editorial in the Gazette. All these comments obfuscate the allegations in the complaint. What is in question is, did Mr. Gajewski violate campaign law dealing with in-kind contributions. Mr. Gajewski is quoted as referring to Neil Marcus (sic) as a "walking, talking individual". This begs the question, is the property at 718 Rockville Pike Mr. Markus' to "donate"? How can the fair-market value be reported as $300 a month when another politician used it and paid $3000 a month? It doesn't add up.
This is not a mudslinging attempt. Campaign fund reports are made public so people can see where funds come from and where they go as disbursements. It is incumbent upon citizens to check the reports and report any possible violations. That is what this is about, plain and simple. It was not instigated by Marcuccio nor her campaign team. I questioned the in-kind contribution and worked with Mr. Powell on the research. If Mr. Gajewski wishes to refer to us as Marcuccio's hounds, that is entirely his right, though very misguided. If someone wants to call into question Gajewski's dealings with developers, go for it, but it would help if comments on this thread dealt with the topic of campaign fund reporting.
Margaret Chao October 27, 2011 at 04:59 pm
Councilmember Gajewski,
Can/will you please answer some questions? 1. Why was a lease necessary if the HQ were "pro bono"? 2. How was the fair market value of $300 per month determined? 3. Are the utilities, furniture, insurance costs included in the $300 monthly lease rate? If not, are these paid for by your campaign or are they also "pro bono"? 4. Whenyou vacate the premises, will the landlord rent the space to others on the same terms? Thank you.
Piotr Gajewski October 27, 2011 at 07:57 pm
Ms. Chao,
I am curious if you support the deal that is bringing Choice Hotel Headquarters to Rockville. I think it is a fantastic deal and I am puzzled as to why Mayor Marcuccio opposed it. Do you know? Regarding your questions: your name appears on the complaint filed in this matter with the Election Board. Please allow me to respond directly to the Board with respect to your complaint. I am confident that the Board will confirm that all of my actions and disclosures completely conform to all Rockville election law.
Tim Fahey October 27, 2011 at 08:22 pm
You are right Joe about Mr. G answering the question about why the property at 718 Rockville Pike is reported as $300 a month which is 10 times lower than when Bob Ehrlich who paid $3000 per month for the same space. This is a fair question.
Margaret Chao October 27, 2011 at 08:52 pm
Councilmember Gajewski,
Mayor Marcuccio has said many times (in response to your statement that she opposed Choice Hotels coming to Rockville) that the reason she voted against it was because she did NOT think the citizens of Rockville should have to subsidize it to the tune of $1.7million. Aside from this subsidy, she has always been in favor of Choice Hotels coming to Rockville. So, I am curious---why do you keep repeating that you are "puzzled as to why Mayor Marcuccio oopposed it."? Also, why do you now claim that the City's contribution to Choice Hotels is now less than the $1.7 million? Are you getting the citizens of Rockville a better deal now? As far as my questions, I hope that the Election Board will ask these question, and others.
Margaret Chao October 27, 2011 at 08:59 pm
Councilmember Gajewski,
Mayor Marcuccio has said many times (in response to your statement that she opposed Choice Hotels coming to Rockville) that the reason she voted against it was because she did NOT think the citizens of Rockville should have to subsidize it to the tune of $1.7million. Aside from this subsidy, she has always been in favor of Choice Hotels coming to Rockville. So, I am curious---why do you keep repeating that you are "puzzled as to why Mayor Marcuccio opposed it."? Also, why do you now claim that the City's contribution to Choice Hotels is now less than the $1.7 million? Are you getting the citizens of Rockville a better deal now? As far as my questions, I hope that the Election Board will ask these questions and others.
Dan Cohen October 27, 2011 at 09:05 pm
Mr. Gajewski,
There’s nothing “so called” about the “developer” money you took. You disclosed his maximum $1000 donation only because you had to by Rockville election standards and practices. And you’re wrong about Mardirossian (and that’s the correct spelling, I checked). He is still a big time developer and does own land in Rockville.
Dan Cohen October 27, 2011 at 09:26 pm
Mr Gajewski,
You have smeared yourself w/your own unethical conduct. You call attention to the Gazette, well how about the article 2 pages later about your pro bono campaign HQ that violated Rockville election law “Elections board investigates Rockville mayoral candidate” http://www.gazette.net/article/20111026/NEWS/710269466/1007/elections-board-investigates-rockville-mayoral-candidate&template=gazette Your subterfuge is stunning in its brazenness. You say,“There are two other contributions to my campaign that you bring up. They are smaller and you correctly point out that they are not from “developers” they are from lawyers.” Gees Louise! There are actually THREE lawyers. Rechecking your filing they actually gave you a total of $1000 just as much as Mardirossian. Theyre all DEVELOPER lawyers. They all work for the same law firm. One of them has come before you @ CityHall to speak for developers. Of the other 2, THEY WERE THERE FOR THE REED PROPERTY ANNEXATION SCHEME - development next to dump. You took their money, then you voted for a development project that was good for the developer, good for yourself (u got $1000) & bad for Rockville. Technically, it may not have been illegal for you to take their money then vote to annex land to help their bottom line, but it certainly was “unethical.” & yes, I would have no doubt that you “would not turn down [more] contributions from developers if they came your way.” Do you hear yourself? Rockville voters do.
Dan Cohen October 27, 2011 at 09:31 pm
The only one that has “fueled” the “attacks” is YOU. Stop blaming others for your character defects. Its clear, You took developer lawyer money in return for campaign dollars and then you got your free headquarters from a real estate management company and in taking their favors, you broke the law. Then you cry foul, blame others and deny, deny, deny.
Piotr Gajewski October 27, 2011 at 09:54 pm
Ms. Chao:
Thank you for clarifying. Yes indeed, I, and my Council colleagues got the Citizens of Rockville a better deal! The City presently has many empty spaces in its garages that it is offering for $65 per month. But there are not enough takers, so no revenue at all is coming in on hundreds of empty spaces. After a tough negotiation, the City has agreed to a deal to make 275 of those spaces available to Choice Hotels for $30 per month (instead of $65) over the next ten years. So now, over ten years, the City will have nearly $1,000,000 of new revenue – and this revenue is guaranteed! Compare: presently no revenue – with Choice Hotels, $1,000,000 of revenue. $1.1 million of what you and the Mayor call “subsidy” is the difference between what the City will be getting under this deal ($30 per month per space) vs. what it currently advertises ($65 per month). But, since there are no buyers, this subsidy is theoretical. What is real is a guaranteed $1,000,000 in new parking revenue. That is the deal that Mayor Marcuccio alone voted against.
Piotr Gajewski October 27, 2011 at 10:03 pm
Mr. Cohen,
Thanks for your comment. Last night Rockville’s Planning Commission, composed of mostly Marcuccio appointees, approved the Sliverwood project. They represent Rockville and made the right decision. Ms. Marcuccio voted against the project: another example of her being in the minority on important decisions. I agree with the Planning Commission and support the project, which, by the way, is in my neighborhood.
Doug in Rockville October 27, 2011 at 10:19 pm
I cannot believe how vitriolic some of the comments are on this thread, and the attempt to make Mr. Gajewski into a violator (or by some of the emotional languaging used, a criminal) before he's had a chance to be heard by the Board of Elections are over the top.
It's pretty obvious that there is a motivation behind all of these allegations and the real victim is the Rockville electorate hearing all this type of garbage instead of more discussion about the considerably important issues that the next Rockville Mayor and Council will have to address, including laying the groundwork for how we will be able to grow in the face of development to our north and south in a way that will benefit and strengthen our city. Actually, this is the kind of crap that turned me from being a likely Marcuccio voter into a Gajewski voter---this, and the Councilman's compelling case that Rockville's government has not been led consistently over the last two years. Look at the issues and the votes that have been made. I think he's right about that. It only takes listening to the meetings and a few forums to understand that we need more effective leadership from our Mayor and Council. Regardless of who wins the election, as a resident of the City, I hope that's what we get.
Brigitta Mullican November 5, 2011 at 06:32 pm
It is difficult to lead individuals who do not want to cooperate. Ask the former Mayor Susan Hoffman. It was also difficult for her in her tenure.
If only one more council member would have agreed with Mayor Marcuccio during the last two years, there would be a completely different discussion on this Patch thread. This is why it is important to vote for a city council who have a similar vision for the city and keep the debt down. We will vote for who we believe.
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Brigitta Mullican June 2, 2013 at 11:58 pm
Twinbrook Swimming Pool (TSP) can hold three public open house days to introduce the pool toRead More perspective members. This year the dates are June 8, July 13 and August 10. The cost is $5 per person. The TSP has a big insurance policy to cover swimmers. Not sure free is appropriate. As a private membership pool, there are regulations that must be followed.
damian starr June 7, 2013 at 11:46 pm
Does either county or city pool offer free trial periods? I don't think so.
Brigitta Mullican June 7, 2013 at 11:51 pm
If you swim on the 3 open public swim days at the Twinbrook Swimming Pool, you can consider it aRead More trial. Liability insurance does cost money. Entrance of $5 is a real bargain. Members pay to maintain the pool.
Deborah Durham May 14, 2013 at 01:11 pm
I am so sorry this happened to your girls! There is no excuse for the theater personnel notRead More helping. I hope you get an apology from management. Perhaps the city police should have an officer in the area after the last movie.
Joe Shono May 14, 2013 at 08:09 pm
Yaaaay! Lets put it on the police again. Good thinking the Deb. How about Kate gets her daughter aRead More chaperone. Ask 2 people and then a movie theatre employee and then walk home? That story sounds really fishy. I don't believe the world is in as bad a shape as Kate purports.
Theresa Defino May 14, 2013 at 08:55 pm
I think more facts are necessary here. When you didn't hear from them you didn't go to theater toRead More find them? It is hard to know where blame lies here, not knowing how old these girls are. It sounds like your daughter and god daughter don't have their own phones? No matter my children's age, I make it a point to know the running times of the movies they're at, especially if I am the one who is going to be picking them up. We warn children--especially girls and young women--not to go to strangers for help. We know that of the three girls, the man kidnapped one who was his daughter's friend after giving her a lift.