Malcolm's not-for-profit conflict

From City Hall:

Though he helped found the organization and sent it $57,000 in member items, Senate President Malcolm Smith has maintained that he has no knowledge of the day-to-day operations of the New Direction Local Development Corp., the non-profit that federal authorities are now probing for potential abuses. New Direction was located in the office portion of a one-story building in Southeast Queen that shares space with a laundromat and gym.

But also located in the building's office space: Great Abstract Company, LLC, a mortgage title company that Smith served as vice president of for more than four years, according to his personal income disclosures with the Legislative Ethics Commission.

Founded in August 2004, Great Abstract was also located at 219-10 South Conduit Avenue, in Springfield Gardens, incorporation and property records show.

The for-profit and non-profit also shared at least one common employee: Joan Flowers, a board member for New Direction who has reportedly been subpoenaed in the federal probe, and who was in care of the organization’s books for at least several years, according to the group’s tax returns.

Flowers, meanwhile, earned at least $1,000 working for Great Abstract in 2008, according to her 2009 financial disclosure with the Legislative Ethics Commission. Flowers also drew up both the 2000 incorporation documents for both New Direction and the 2004 incorporation papers for Great Abstract.

Pols + LDCs = always a shady connection.