By Helen Klein
A federal investigation into three not-for-profit organizations set up by a local political insider is likely to have repercussions for a pair of heated races. Asquith Reid, the chief of staff to City Councilmember Kendall Stewart, is said to be under the microscope as a grand jury hears evidence regarding the Donna Reid Memorial Education Fund, the Donna Reid Foundation, and the Friends of Crown Heights. A total of over $100,000 in Council funding has been directed to the organizations that Reid established over the past few years. Stewart – who is reported not to be a target of the investigation – acknowledged that the investigation was underway though, he said, he had been, “Told not to speak about it until it’s complete. Right now is not the right time. I know very little,” he added. Stewart also said that he had not yet testified before the grand jury. “I went down and they said they would see if they need me,” he told this paper. As for Reid, he told this paper that he could say, “nothing.” He did say that he had “retained legal counsel.” The investigation, pundits say, could have implications for two upcoming contests – the challenge that Stewart is expected to launch against State Senator Kevin Parker later this year, and the race to replace Stewart, who will be term-limited out of office in 2009. Reid, as well as Stewart’s son, has been mentioned as a possible successor to the current councilmember. “That level is pretty serious,” noted one insider referring to the federal investigation. “The way they work, they are not going to start something unless they finish it, whether that takes two or three years.” “This is a real problem for them,” another source contended. “The monies were allocated from a member’s fund and the only person who can sign off on that is the member. U.S. attorneys have a 93 percent conviction rate, so it certainly doesn’t look good. And, even if it’s not proven, it absolutely damages them.” In addition, noted the source, Stewart’s ability to ward off political damage from the situation may be tied to his ability, “To show that he is not involved (with any illegality), or cut a deal that doesn’t hurt him too badly.” Nonetheless, the insider said that Stewart and Reid could be victims of fallout from “anti-elected official sentiment among people,” that has been stoked in recent years by high-profile prosecutions. “Some attorneys make their careers prosecuting legislators,” the source pointed out. “Some of those prosecutions were based on mistakes.” Another insider suggested that, should Stewart be forced to step down at some point, a special election might be held that, the source suggested, “Could throw the City Council race into chaos.” As many as 17 people have expressed interest in running for the seat, according to one insider. But, the insider added, it’s way too early for such speculations. “This is just an investigation. Nothing may come of it. We should let due process take its course.” One pundit said that the word that upwards of $100,000 had been distributed to the not-for-profit groups founded by Reid could have other local non-profits wondering why. “Not-for-profits have to struggle for every penny they get — $5,000, $10,000, $15,000 from the City Council,” the insider pointed out. “The amount of money that these groups got is astonishing. Regardless of whether it was done legally or illegally, that’s raising some eyebrows.” In the meantime, some sources have reported that those close to Stewart and Reid have been looking around to determine where to place the blame – and that some were suggesting that Parker was the one who suggested that the foundations be investigated in the first place. “They swear someone called in the Feds,” noted one onlooker. “Some people are saying that Parker did it.” Nonetheless, the source added, “There is probably a plethora of people who have not been too happy with the way he (Stewart) has operated. It’s sad that they are trying to figure out who said it, rather than dealing with the validity of it.” Parker, for his part, rebutted these suggestions. “I deny any involvement with this,” Parker asserted. “I have heard that people in the community have indicated that I might be involved in siccing the Feds on the councilman. “I wouldn’t wish this on anybody,” Parker continued, stressing, “No one should rush to judgment. As an elected official, I have a lot of faith in the criminal justice system. I know Kendall and Asquith personally for many years. I wish them a speedy resolution for them and their families.” By press time, the Department of Justice had not responded to a request for comment.
