Governor Kathy Clown made Contractor Gadget a multi-millionaire

 

Times Union

 One New York City family, led by entrepreneur Charlie Tebele, has donated nearly $300,000 to Gov. Kathy Hochul’s campaign.

Records also show that since December, Tebele's company was paid $637 million in taxpayer funds to provide the state Department of Health — an agency controlled by Hochul — with at-home COVID-19 test kits. The huge expenditure was made without the agency conducting competitive bidding.

Tebele is the longtime owner of Digital Gadgets LLC, a New Jersey-based wholesaler of hoverboards and other electronic devices that sells its wares to companies like the home shopping network QVC. When the COVID-19 pandemic struck in 2020, the company pivoted to supplying medical equipment, and began landing major government contracts in New York. Though Digital Gadgets has not always delivered as promised, it has continued to reap major government payments, while the family has kept donating heavily to select politicians.

The $637 million from the Department of Health began on  Dec. 30, and the agency made 239 separate payments through March 25 to Tebele's company, according to state Comptroller Tom DiNapoli's OpenBookNY website.

The website, however, provides no record of a formal contract being signed between Digital Gadgets and the Department of Health. Jennifer Freeman, a spokeswoman for DiNapoli's office, said that no such contract existed: The Department of Health entered into "purchase orders" instead with the company, she said.

"These purchase orders did not come to (DiNapoli's office) for review and approval," Freeman said.

On Nov. 26, Hochul had signed an executive order declaring a new COVID-19 state of emergency and suspending certain aspects of state finance law. The order suspended competitive bidding for certain contracts as well as the normal contract review and approval process conducted by DiNapoli's office, which oversees state government spending.

As the pandemic has subsided and surged, Hochul has extended the executive order on a monthly basis; its current expiration date is Aug. 13.

Contractor Gadget buys a seat on the EDC board

THE CITY

 

A major donor to Bill de Blasio’s aborted presidential campaign and seller of COVID-related gear to New York has scored a seat on a powerful board controlled by the mayor.

Charlie Tebele, whose business has hawked hoverboards out of a New Jersey warehouse, joined the board of the New York City Economic Development Corporation, with his first appearance on May 6, meeting minutes indicate.

A spokesperson for de Blasio said the mayor made the appointment on March 18 — one week before Tebele and the city signed the first of nearly $119 million in no-bid contracts for masks and ventilators.

The nonprofit is the city’s chief vehicle for steering subsidies and real estate to private businesses, including the failed 2018 proposal to usher Amazon to Long Island City. Last year, EDC received more than $2 billion via exclusive contracts from the city Department of Small Business Services, making it City Hall’s single largest contractor, according to city comptroller records.

As THE CITY has previously reported, Tebele’s firm Digital Gadgets LLC secured three emergency contracts in late March to sell masks and ventilators to the de Blasio administration as the coronavirus crisis surged and the city scrambled to secure gear.

The administration later canceled the largest of those contracts, for $91 million in ventilators and breathing kits, after the life-saving ventilators did not arrive — but not until after advancing $9.1 million to Digital Gadgets.

The firm has continued to be a major supplier of N95 and other masks to city government, with payments totaling more than $25 million since March 30 registered in the comptroller’s Checkbook NYC system.

Federal records show that Digital Gadgets received Paycheck Protection Program aid of between $150,000 and $350,000, covering a dozen workers in New Jersey — even as the firm and a new Manhattan-registered company associated with Tebele called Digital Gadgets Medical LLC scored tens of millions of dollars in COVID-related business from New York, followed by Cook County, Ill., and other local governments across the U.S.