Read the blistering report at file:///C:/Users/djmya/Downloads/Khader%20-%20Report%20of%20Investigation%20-%20July%2026%202024.pdf
On July 26, Yonkers Inspector General Liam McLaughlin released a report from investigators hired by his office to report on the investigation of former City Council President Mike Khader concerning arrangements between his city-paid counsel, allegations of hostile work environment, and where Khader misrepresented himself to questions posed by the IG’s office.
In 2021, the Yonkers City Council asked McLaughlin to investigate allegations made against Khader, specifically, whether Khader engaged in a “Quid Pro Quo” with attorney Jeff Buss and whether Khader had created a hostile workplace environment for women. \
The Quid Pro Quo with Buss alleges that Khader received free rent at a law office located on Yonkers Avenue, and in exchange Buss was appointed a counsel to the then Council President-Khader.
The report states that Khader was “In violation of the Yonkers’ Code of Ethics, and appearing to be in violation of Article 200 of the New York State Penal Law. Khader received rent-free office space from his City-paid counsel’s law firm, Smith, Buss & Jacobs LLP (“SBJ”). It is undisputed that Khader received rent-free office space and related office-services from SBJ from in or about March 2017 until in or about December 2018. Khader admitted that he did not pay rent to SBJ from in or about March 2017 until in or about December 2018. In an apparent attempt to improperly “interfere with, obstruct, or otherwise hinder” this investigation, Khader provided conflicting reasons for not paying rent.”
According to the report, Khader gave conflicting answers to questions posed to him under oath by the IG’s office. “Khader first claimed, under oath, that he “didn’t have an office” at SBJ since in or about June 2017. (Khader Tr. 20-22).2 However, Khader continued to use the SBJ address, including in signed and sworn court pleadings and filings, and witnesses observed Khader using his office at SBJ during relevant times.
“Khader also claimed, under oath, that he did not have an office because he “stopped practicing” law during the relevant time period. (Khader Tr. 24). However, public records such as court filings and deeds, made clear that Khader continued to practice law during the period of time in question.”
“Khader also testified, under oath, that while he did have an office at SBJ during the relevant time period, he did not pay rent because of the condition of the office and that he used it largely for storage. However, multiple witnesses explained that Khader did use this office for meetings and other work. Further, attorney Charles Lesnick paid $500/month for an office immediately adjacent to Khader’s office in the same SBJ office suite (Suite 303), showing that the office space had value despite its alleged “condition.”
“Further, along with the office space, it is undisputed (even by Khader) that during the relevant time period, Khader had the use of SBJ’s valuable office services, such as receptionist, mail room, notaries, paralegals, conference rooms, copy machines and a parking space — all things of significant value even if, arguendo, his office space was in relatively poor condition.
In sum, Khader’s excuses for not paying rent are misleading, dissembling and not credible. The weight of the evidence supports a quid pro quo relationship where Khader received and benefited from a law office (and office services) rent free, and Buss received and benefited from a City contract from Khader.
The report states that Khader’s actions, “likewise violated the Yonkers’ Code of Ethics and appears to be in violation of Article 200 of the New York State Penal Law.
“Buss failed to testify in this investigation despite being subpoenaed. Buss produced records to the Investigators that appeared to present evidence in a manner designed to “interfere with, obstruct, or otherwise hinder” the investigation.”
In a letter dated, May 19, 2021 Buss stated: “Mr. Khader is not a tenant of mine, nor of my law firm.” While perhaps true as of May 19, 2021, this was clearly not true at all times relevant to the investigation and subject to subpoena, including 2017-2018. Further, by letter dated December 3, 2021, Buss attempted to argue that he personally, and not SBJ, represented Khader as CCP, and he refused to produce certain information requested in the subpoena. This argument defies common sense. Even if, arguendo, Buss and not SBJ was counsel to Khader, SBJ’s giving Khader rent free office space and providing office services in exchange for Khader’s appointment (or promise of appointment) of Buss as counsel is still an improper quid pro quo.
Further, the facts establish that Khader and members of his City-paid staff met with Buss at SBJ’s offices on City work on a number of occasions. Khader even used SBJ’s offices to interview applicants for City positions (including, but not limited to, Anand Singh).
The IG’s report also, “found some evidence, but have not reached a conclusion, that Khader may have mis-used his position as City Council President by, among other things, using at least two City paid employees/contractors, Charles Milander and Lena Badr, to work on his personal/law firm matters and/or his political campaign while on City-paid time. We recommend that such relationships be further investigated.
The report found no evidence “of discrimination or hostile work environment. While witnesses alleged that Khader treated female staff differently and less favorably than male staff, such allegations essentially amounted to a perception (a perception shared by a number of his staff) that Khader favored the opinion or work of male staff more than of female staff. What was not articulated in admissible form was evidence that such conduct led to inferior terms, conditions or privileges of employment of female staff, or any evidence that any different treatment of females was because of gender. Accordingly, on the evidence reviewed, we do not find that Khader’s conduct created a hostile work environment under applicable law.”
Mike Khader was elected City Council President in 2017, defeating the incumbent Council President, Liam McLaughlin, who is now serving as Yonkers Inspector General.
Khader ran for reelection in 2021 and was defeated in a democratic primary by Lakisha Collins-Bellamy who is the current Council President.
Khader has announced to friends and supporters that he plan on running next year (2025) for his old job, and would have to challenge Collins-Bellamy in a democratic primary.
Buss’s contract as Counsel to the Council President was for $60,000 per year for four years, for a total of $240,000.
The reports investigators found identified the value of the rent that Khader did not pay for 22 months to be between $11,000 -$17,600. Additionally, Khader was able to use the support staff from the law offices of Smith, Buss & Jacobs for free. “Clearly, Khader used SBJ paralegals to support his legal practice, including for the filing of court documents, at times relevant to this investigation. …at the times relevant to this investigation, clearly, Khader used the SBJ office space and had the benefit of SBJ office services, paralegals and notaries during a time when he claimed not to be practicing law and paid no rent to SBJ. Such services are of value to an attorney, but Khader never paid for such services. The Investigators find that such valuable services were part of the quid pro quo.”
The report details numerous examples where Khader was practicing law after telling the IG and investigators that he was not. In one instance, Khader, serving as a court appointed reciever, submits his bill for services with his statement that he “exhausted countless hours” on the case and “performed extensive” work — at the same time Khader swore at his deposition that he stopped or slowed his law practice. Khader’s bill for those services was $37,634.05” for
The law office address in question was 733 Yonkers Avenue, Suite 200.
“In sum, during the very same time frame that Khader swore under oath in this Investigation
that he stopped or slowed his law practice, and that he did not have an office at SBJ, he also swore under the penalties of perjury that he “exhausted countless hours” and “performed extensive work” serving as Receiver, and he signed the court Report using SBJ’s address of 733 Yonkers Avenue, Suite 200. Khader’s sworn statements in this Investigation and his sworn statements to the Court in the Matter of Joseph Carriere Report are clearly inconsistent. Khader’s sworn statements in this investigation that he stopped or slowed his law practice, and that he did not use SBJ’s office at such, are demonstrably false and disproven by Khader’s own court filings
The report and the IG were unable to come to a conclusion as to why two City Council employees were hired by Khader. Several other council staff members who were interviewed by the IG
Milander and Badr were hired by Khader as a quid pro quo for their work for his law office and/or campaign. “Essentially, no staff could articulate any work of significance that Badr provided for the City, and it seemed that Milander did minimal work for the City. Both Badr and Milander worked on Khader’s campaign and potentially Khader’s law office.
Khader’s hiring of Badr as a contractor for the City is shrouded in mystery. First, Badr is based in Washington DC, and by all accounts, had limited familiarity with Yonkers. Khader claims that Badr was referred by a friend, Besema Yousef. When asked where Yousef lived, Khader testified that she lived “out of the country” – but he did not know what country she lived in. His testimony in this regard seemed lacking credibility.
Khader himself admitted that he knew that Milander had subcontracted his City-paid work to Milander’s employees in South America. A City employee should not be able to subcontract their own City work to third parties (presumably at a profit). Milander’s profiting through the use of contractors for work for the City, as approved by, or tacitly approved by Khader, should be further investigated.
We, the Investigators, conclude that Khader (and Buss/SBJ) failed to provide any credible evidence as to why SBJ provided him with rent free office space and office services, and that such valuable office space (valued at approximately $11,000 – $17,600) and office services (valued at approximately $11,600) were provided as part of a quid pro quo arrangement between Khader and Buss/SBJ whereby Buss received multiple contracts totaling approximately $240,000.
We recommend that this Report be referred to the Inspector General for referral to the City Council and otherwise as necessary for prosecution and/or further investigation.
Did Mike Khader commit a crime? And if he did, will that crime be prosecuted?
Most legal experts say no to both, but that Khader did commit an Ethics violation and that it is highly unlikely that the Westchester DA, or US Attorney, of State Attorney General will indict Mike Khader.
But as one criminal defense attorney told us, “Was all of this worth it? For $15,000, an attorney making $200,000 per year plus his council salary, why not just pay your rent and play by the rules? And the same can be said for Jeff Buss.
Other interesting attorney at this law office who were interviewed included Judge Robert Spolzino. The report states, “In or about March or April 2018, then-SBJ partner Hon. Robert A. Spolzino learned that Khader may not have been paying rent to SBJ. As Khader’s failure to pay rent raised ethical concerns, Spolzino raised the issue with Buss of SBJ. Buss told Spolzino that he would address the issue. Id. Spolzino assumed that the issue had been addressed.”
Some believe that the continued investigation into Khader, four years after the incident and four years after he served as council president, is proof that “they are afraid of Mike Khader coming back to City Hall.”
Others we spoke to said that the facts in this case end Mike Khader’s political career.
Khader issued the following staement to Yonkers Voice, “ It appears that the Yonkers Inspector General’s office, led by Liam McLaughlin, whom I defeated in the race for President of the City Council, paid for and managed this report. He is once again using his office as a tool for revenge and political intrigue. A city-funded “report” that neither I nor my attorney have received, but is circulating on the internet, is now attempting to revive false and baseless allegations against me. The timing of these unfounded reports is highly suspicious and indicative of another political witch hunt aimed at discouraging effective, honest, and promising citizens from running for office.
“Though the primary isn’t until next summer, it seems the “silly season” has started early for some. Yonkers has long been mocked as “the city of hills where nothing is on the level,” and it’s due to dirty political tactics like these that seek to intimidate potential candidates, misuse public tax dollars for political gain, and misinform the public. It’s time to rid Yonkers of such practices and focus on the important issues that affect the good people of our city,” said Khader.
