Kathy Clown's hiring of Contractor Gadget Jr. has got herself in hot water

NY Post 

The son of a major Kathy Hochul donor was hired by her campaign right around the time his father hosted a fundraiser for the Democratic governor — and just weeks before the dad’s company scored what’s being called a “pay-to-play” deal to sell the state $637 million in overpriced COVID-19 tests.

James Tebele, 21, has a resume that starts with a 2016 summer internship at his dad Charlie’s New Jersey-based Digital Gadgets consumer technology company, which pivoted to selling masks, gowns, sanitizer, thermometers and at-home rapid tests during the pandemic.

Now a student at New York University’s Schack Institute of Real Estate, James Tebele began working for Hochul’s campaign as a finance intern in November — and appears to have risen up the ranks, or at least pay scale, of her campaign as his dad’s fundraising for the governor increased.

On Nov. 22, Charlie Tebele — whose family has donated over $300,000 to Hochul — spent $5,150 on food, decorations and servers for a Hochul fundraiser and his wife, Nancy Tebele, also donated $18,000 to the governor’s campaign that day, the Albany Times Union first reported earlier this month.

Just four days later, Hochul suspended competitive-bidding rules for the state’s purchase of COVID-19 supplies, leading to the first of two contracts awarded to Digital Gadgets for a total of 26 million test kits.

Despite the rapid confluence of events, and her campaign’s hiring of James Tebele, Hochul has maintained that she “was not aware that this was a company that had been supportive of me” — an assertion rejected and ridiculed by her critics.

“The governor attended an in-person fundraiser hosted by the donor and hired one of his family members, but claims she was unaware of any connection. It’s laughable,” Assembly Minority Leader Will Barclay (R-Fulton) said Wednesday.

The first contract — inked on Dec. 20 — charged taxpayers $13 per test, even though Hochul’s administration had recently struck a deal to buy similar tests from another supplier for just $5 each, according to the Times Union.

Digital Gadgets charged the state an average of $12.25 per test — costing taxpayers a total of $268 million more than if officials bought the “Carestart” tests directly from the manufacturer instead of using Charlie Tebele as a middleman, the Times Union said.

 NY Post

This is not the kind of national attention most governors seek.

Congressional Republicans are vowing to probe a $637 million alleged pay-to-play scheme involving Gov. Kathy Hochul and a deep-pocketed campaign donor if they retake the House of Representatives this November.

“As a taxpayer, it really pisses me off that my governor is paying twice as much for a product that other states are and that the money is going to one of her large donors,” Rep. Nicole Malliotakis (R-Staten Island-Brooklyn) told The Post Thursday.

“It smells so bad,” she added.

The vow comes amid growing calls for local, state and federal officials — who have remained silent about whether they will investigate — to probe how $300,000 in campaign cash to Hochul might have helped the New Jersey-based Digital Gadgets land the no-bid contract for 52 million COVID rapid tests, a deal first revealed by the Times Union this summer.

“With your duty to enforce federal laws and ensure fair and impartial administration of justice, we ask that you use your position within the Department of Justice to promote transparency in government spending and investigate this potential kickback scheme that has defrauded taxpayers millions of dollars,” reads a Sept. 26 letter to US Attorney General Merrick Garland from GOP members of Congress including Malliotakis and Rep. Elise Stefanik (R-North Country).

 

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.

Contractor Gadget has come up short on PPE supplies

THE CITY 

Nearly 13 million virus-blocking N95 and similar face masks ordered in March for the city’s public hospitals and other emergency services have still not arrived as medical staff at Bellevue and other facilities plead for protective supplies.

Of the nearly 34 million masks contracted for between March 6 and April 11 by the Department of Citywide Administrative Services, only 637,760 had been received as of Friday, according to the department.

Also still missing are at least 2,000 ventilators purchased last month, toward which City Hall paid $9 million — even as Gov. Andrew Cuomo has announced plans to ship hundreds of surplus ventilators to other states combating coronavirus.

None of the two million N95 masks secured in a March 25 contract with a New Jersey company called Digital Gadgets have been delivered, according to the Department of Citywide Administrative Services, which signed the $8 million deal.

Out of a March 28 deal for six million similar KN95 masks with the same firm, just 137,760 have come in so far, DCAS reports.

The Digital Gadgets masks are “designated as medical and are intended for use by Health + Hospitals,” a DCAS spokesperson told THE CITY.

The Health and Hospitals Corporation told THE CITY it has 745,000 N95 masks on hand.

In all, a review of city contract records indicates, vendors have delivered N95-type masks in just two out of 14 DCAS emergency contracts made between March 6 and April 11.

And only one company, Tivuna Systems Inc., has produced its goods in full, providing 500,000 KN95 masks in a deal signed by DCAS on April 2.

Most of those companies, including Digital Gadgets, had never before done business with the City of New York. Under an emergency order issued March 16 by Mayor Bill de Blasio, those contracts and companies bypassed standard reviews by the city contracts office and comptroller.

“Estimated delivery dates are constantly shifting due to overall demand and supplier manufacturing capacity,” said Nick Benson, the spokesperson for DCAS. “There is not a fixed delivery date for these or most of the COVID-19 related orders.”

On Sunday, de Blasio hinted at a news conference of troubling delays in delivery of crucial supplies.

“We have a huge number of orders out around the world that if we started to see a little more consistency on the deliveries, we would be in much better shape,” he said.

For weeks, nurses have railed against the dangerous conditions inside the city’s 11 public hospitals where they say they’ve been forced to care for a wave of virus patients without proper protective gear.

 Eventually, de Blasio will make it up to all these hospitals with more clapping, donuts and coffee.

COVID-19's Contractor Gadget

THE CITY

City Hall’s frantic hunt for protective masks and medical equipment to combat coronavirus led officials to sign emergency contracts totaling nearly $119 million with a firm run by a major donor to Mayor Bill de Blasio’s failed presidential campaign.

Digital Gadgets LLC, a New Jersey-based wholesaler of hoverboards and other electronic devices to QVC and similar TV outlets, entered into three contracts with the Department of Citywide Administrative Services between March 25 and March 28, city contract records show.

The first payment of $9.1 million came the following Tuesday — representing 10% of a total $91 million agreed to for “procurement of respirators and breathing kits” through the end of June. One order of two million N95 masks comes at a price of $8 million, or $4 a mask.

The Digital Gadgets deal arrived in the midst of a bidding war among cities, states, and nations around the globe for personal protective gear and was well within range of prices on offer at the time.

Before March 25, Digital Gadgets had never appeared in the city comptroller’s decade-old CheckbookNYC tracking system.

Digital Gadgets’ website features a pop-up box: “If you are inquiring about our COVID-19 PPE please click on button below,” followed by an email address.

Company CEO Charlie Tebele and family members made donations totaling $32,000 to de Blasio’s now-abandoned campaign for the Democratic nomination for president and related political action committees, state and federal records show. Tebele and family members also contributed at least $12,750 to de Blasio’s 2017 reelection campaign.

Tebele, who owns a Manhattan townhouse residence on East 61st Street, and Digital Gadgets did not respond to multiple emails and phone calls from THE CITY.

de Blasio's an idiot savant. He may not know shit about preparing for a crisis and evidently leading a city during one, but his brain cells get energized the second an opportunity comes up to make sure anyone who gave him money immediately gets a cherry contract with the city.

Despicable