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Is Connecticut A Fraud Bin?


"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men”
-- Lord Acton

Bob Stefanowski, the likely Republican choice for Governor in the 2020 election, has called upon West Haven Mayor Nancy Rossi to resign her office, according to an AP report, “Audit questions 80% of West Haven’s COVID expenditures.”

“She [Rossi] knew they were under scrutiny by the MARB (The Municipal Accountability Review Board), and she failed to put the protections in place to ensure that local resources were protected and spent with the residents needs in mind,” Stefanowski said in a written statement.

CohnReznick LLP (IDT), according to its executive summary, “was engaged by the Office of Policy and Management (referred to herein as “OPM”) to provide OPM with financial advisory services related to the allegations of misuse of Coronavirus Relief Funds (“CRF”) by the City of West Haven, Connecticut (the “City”), as outlined in the Statement of Work under Contract ID: 16PSX0081AD that was executed on October 13, 2021. I.”

The findings in the report are astonishing.

“Based upon our analysis, the expenditures that were submitted by the City and meet the CRF requirements amount to $243,198.

“Total CRF items submitted by the City $ 1,136,085

“Less: Items that did not meet the CRF criteria (892,887)

“Adjusted CRF expenditures $ 243,198”

To put it as briefly as possible, West Haven submitted to CRF a series of items amounting to $1,136,085. However, $892,887 of the items submitted did not meet CRF criteria. The difference between the two figures, $243,198, represented allowable expenditures, the amount of relief West Haven should have requested.

The report from CohnReznick, an audit/assurance/tax firm, is perhaps more comprehensive than town officials in West Haven might have wished.

The report notes, “… we identified numerous instances where the City did not have sufficient controls and safeguards to ensure the proper accounting and reporting of CRF expenditures. The lack of internal controls, policies and procedures and other weaknesses identified are not restricted to the CRF expenditures, but impact the overall financial operations and management of the City. The areas identified may expose other areas to the risk of fraud, waste and abuse. The City has the opportunity to improve policies, procedures, governance and controls over certain vendor management, cash management and accounting areas.”

And then as a quiet, unobtrusive aside, the report also noted, “CohnReznick was made aware of certain transactions conducted by specific City officials or employees that have been identified as fraudulent transactions by the City and other parties. The City excluded these transactions from the Muni CRF Program Interim Report (“Interim Report”) submitted by the City of West Haven. As such, the transactions were not included in our procedures.”

In 2021, investigative reporter for the Yankee Institute Marc Fitch reported, “West Haven Mayor Nancy Rossi declared victory over her Republican rival Barry Lee Cohen Tuesday night by a mere 24 votes… Rossi skated to an easy victory in 2019, beating her Republican challenger by 20 points, but following the FBI’s arrest of Democratic State Representative and West Haven City employee Michael DiMassa in October, Rossi faced an uphill battle for reelection… According to the court affidavit submitted by the Federal Bureau of Investigation, DiMassa – who resigned from the General Assembly and the City of West Haven – created a fake consulting company and billed the city for $636,000 in COVID-relief funds” that had been turned by DiMassa to personal use.

Democrats in West Haven have an edge over Republicans in voter registration. But it is just this kind of unattended political corruption, in large part the result of too few Republican eyes on the prize, that may make unaffiliateds  and even moderate Democrats, not all of whom have been folded into the Connecticut Democrat progressive mainstream, climb aboard the Republican bandwagon during the coming November off presidential year elections.

The Democrat hegemony in Connecticut is not only a problem for Republicans. It is a "good government" problem. Even good government reporters are beginning to notice that one party rule and a journalism perhaps too closely attached to the reigning power make corruption invisible and absolute.

When Lord Action said “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men," he meant by “power” the political force utilized by “great” men. The word “great” – as in “Alexander The Great” -- is also a measure of unobstructed power rather than moral propinquity. Greatness, which always ought to be questioned and attended to, is rarely on easy terms with conventional morality. Great power -- see Machiavelli on the point -- need have nothing to do with convention morality, and that is why “great” men are “almost always bad men.”

The praise and flattery unthinkingly dispensed by non-objective, non-partisan journalists is the very fount and spume of powerful men who are “almost always bad men” -- because power, particularly political power, flattens, when it does not dispense altogether with moral action.  

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