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State Department of Health's No. 2 official violated the state ethics law
by repeatedly accepting gifts and meals from two Brooklyn rabbis who were
seeking access to other health officials in the Pataki administration, the
State Ethics Commission said yesterday.
The commission said that Dennis P. Whalen, a 26-year
state employee who is the Health Department's executive deputy
commissioner, admitted that he had met with Rabbi Joseph Goldberger and
Rabbi Joseph Menczer about two dozen times between 1996 and 1999, and that
he had accepted gifts from them. The commission said that those gifts
included two tickets to a Yankees baseball game, four Brooks Brothers
shirts, a Mont Blanc pen and several meals.
At the same time, the commission said, Mr. Whalen
"facilitated" meetings for the two rabbis, who had helped to
raise an estimated $500,000 for George E. Pataki during his 1994
gubernatorial campaign, with other state health officials and various
health care providers. The New York Times
reported last year that the two rabbis were involved in several
health-related ventures at the time, and were representing nursing homes
with business pending before the Health Department, which regulates the
health care industry.
Yesterday evening, the Health Department said in a
statement that Mr. Whalen, who served as the agency's acting commissioner
for several months in 1999, had been fined one week's salary; he earns
$138,000 a year. The agency also said he had been ordered to reimburse
"those from whom he accepted gifts as a disciplinary measure."
The statement added, "Mr. Whalen has been an
exemplary employee, who came forward voluntarily and acknowledged a lapse
in judgment in this case."
According to the Ethics Commission, Mr. Whalen attended
a presentation on state ethics in late January 2000. The next day, it
said, he "paid each rabbi $100 in an effort to offset some of the
cost of the meals." It added, however, that the worth of those meals
could not be determined because there are no existing receipts. In
addition, it said, Mr. Whalen admitted to investigators that he had
accepted gifts from the rabbis, and had declined to accept other gifts:
three shirts and two pairs of earrings.
Walter C. Ayres, the spokesman for the Ethics
Commission, said that the ethics law prohibits a state employee from
accepting gifts from people who are lobbying or doing business with the
agency for which the employee works. In cases where the gifts are worth
less than $75, he said, the commission refers the matter to the head of
the agency for whom the state employee works.
Yesterday's actions were the latest in a series of
setbacks for the Health Department.
Last week, the Health Department announced that a senior
official, Charles F. Murphy, had been suspended without pay for securing a
job for his wife at a company that did business with his office. Another
senior health official, Joseph Chiseri, was dismissed last year for
belatedly reporting to his superiors that he had been offered cash by a
businessman who had applications before the department to expand his adult
day care operations.
That businessman, Lawrence Friedman, pleaded guilty
earlier this year to charges that he had bilked the state in an elaborate
Medicaid fraud scheme, and agreed to return $48 million.
Meanwhile, the state inspector general's office, which
referred the Whalen and Murphy cases to the Ethics Commission, is
continuing its inquiry into operations at the Health Department. Stephen
Del Giacco, a spokesman for the inspector general, Roslynn R. Mauskopf,
declined to discuss any details last night of that investigation,
including where Rabbi Goldberger and Rabbi Menczer figure in the inquiry.
The two rabbis are members of a small Hasidic group in
Brooklyn called the Pupa, which provided Mr. Pataki with critical support
during his 1994 campaign. After Mr. Pataki's election, the two men became
so ubiquitous at the Capitol lobbying officials, handing out gifts, and
winning particular access to the Health Department that they became known
as the Two Josephs.
But their access waned in later years, and aides to
Governor Pataki said last year that the administration had forwarded
information involving the two men to state investigators. A spokesman for
Mr. Pataki did not return a telephone call seeking comment yesterday
afternoon.