GOPer looks to curb state power vs. finance crimes

ALBANY – An upstate congressman has co-sponsored a bill that critics say would make it difficult for states like New York to continue going after wrongdoers in the financial sector.

Rep. John Faso (R-Kinderhook) signed on to the Securities Fraud Act in June, weeks after receiving thousands of dollars from entities that have been probed under the state Martin Act by the New York state attorney general’s office.

Among those that gave are the employees’ PAC for AIG and Exxon PAC. Exxon’s accounting firm, PWC, also gave Faso donations earlier this year.

All told, Faso (inset) received $16,000 from four entities investigated under the Martin Act. Faso spokesman Joe Gierut said attacking Faso on the issue is a “baseless political smear.” He said Faso has long been a “staunch critic” of the Martin Act, which gives the attorney general’s office sweeping powers to go after wrongdoing in the financial sector.

“The Martin Act, unlike federal securities laws, does not require proof that a defendant intended to violate the law and is too much power in the hands of reckless prosecutors,” Gierut said. Amy Spitalnick, spokeswoman for Atttorney General Barbara Underwood, ripped the bill without directly criticizing Faso.

“By crippling the power of state regulators to protect everyday New Yorkers, the Securities Fraud Act is nothing more than a license to commit securities fraud,” Spitalnick said.