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HOMEPAGE
Power Trip


BOB IGER IS NOW GETTING PUMMELED BY THREE ANGRY BILLIONAIRES

MOUSETRAP

Activist investor Nelson Peltz once again has Disney in his sights.


NOAH KIRSCH

Wealth and Power Reporter

Published Nov. 30, 2023 1:04PM EST 


REUTERS/MIKE SEGAR/FILE PHOTO



Make that three angry billionaires coming for Disney CEO Bob Iger.

On Thursday, activist investment firm Trian Partners—helmed by billionaire
Nelson Peltz—announced that it was launching a new proxy war against the
entertainment behemoth. Peltz is collaborating with fellow tycoon Ike
Perlmutter, who was ousted as chairman of Disney subsidiary Marvel Entertainment
in the spring.

The news comes less than a day after Elon Musk personally called out Iger at the
New York Times Dealbook summit over Disney’s decision to pause spending on X.
“Hey Bob,” Musk said, after declaring that any advertiser who had pulled back
could “go fuck yourself.”

Peltz and Pelrlmutter’s antagonism poses a far more serious threat. Trian has a
history of roiling companies it believes are underperforming, including Procter
& Gamble, PepsiCo and DuPont—causing major pain for the executives it disfavors.



Trian explained its thinking in a statement on Thursday: “Since we gave Disney
the opportunity to prove it could ‘right the ship’ last February, up to our
re-engagement weeks ago, shareholders lost ~$70 billion of value. Disney's share
price has underperformed proxy peers and the broader market over every relevant
period during the last decade and over the tenure of each incumbent director.”

The statement added that the appointment of Morgan Stanley CEO James Gorman and
former Sky CEO Jeremy Darroch to the board “represent an improvement from the
status quo” but were not sufficient to address Trian’s concerns. On Thursday,
Disney again rejected Peltz’s attempt to get board representation for himself or
his associates. He will now try to get Disney’s shareholders to take his side.

Disney released a competing statement on Thursday morning, which argued that it
has spent the last year restructuring its business to “significantly reduce
costs and drive efficiencies, and [is] on track to achieve about $7.5 billion in
cost savings – $2 billion more than our original target.”

The company cast Perlmutter, who has given Peltz voting power of his shares, as
a disgruntled ex-employee.

“Mr. Perlmutter was terminated from his employment by Disney earlier this year
and has voiced his longstanding personal agenda against Disney’s CEO, Robert A.
Iger, which may be different than that of all other shareholders,” the statement
said.

Peltz—whose daughter, Nikola, is married to David and Victoria Beckham’s son
Brooklyn—had launched a proxy war against Disney earlier this year. The parties
reached a truce following the corporate restructuring and cost savings
measures—but evidently Iger couldn’t keep Peltz at bay for good.





NOAH KIRSCH

Wealth and Power Reporter

@Noah_Kirschnoah.kirsch@thedailybeast.com

Got a tip? Send it to The Daily Beast here.



READ THIS LIST


EX-NEW YORK AG LAWYER CLAIMS ‘MISCONDUCT’ BY TOP PROSECUTOR

JOSE PAGLIERY


THAT SUDDEN PROPOSAL ON ‘GILDED AGE’ CAN ONLY END IN TRAGEDY

LAURA BRADLEY


THE SQUAD IS FACING AN ‘EXISTENTIAL THREAT’ IN 2024

SAM BRODEY


‘GOLDEN BACHELOR’ GERRY TURNER ADDRESSES EX’S ALLEGATIONS

MATT YOUNG


MYSTERY INJECTIONS OF GOVT CRITICS MAY BE SERIAL POISON PLOT

ANDREW MAMBONDIYANI




Politics


EX-NEW YORK AG LAWYER CLAIMS ‘MISCONDUCT’ BY TOP PROSECUTOR

ROGUE ONE

A lawyer at the New York Attorney General’s office just got fired for going
rogue and trying to expose alleged “misconduct” by the head of the AG’s criminal
division.


JOSE PAGLIERY

Political Investigations Reporter

Published Dec. 04, 2023 4:50AM EST 

exclusive

PHOTO ILLUSTRATION BY THOMAS LEVINSON/THE DAILY BEAST/GETTY/NYC SNP



For two years now, a senior lawyer at the New York Attorney General’s Office has
been trying to get top bosses to listen to his claims that the agency’s chief
prosecutor has potential conflicts of interest and hid unsavory professional
relationships.

But instead of landing that chief prosecutor in hot water, it was the senior
lawyer who made the complaint, John Oleske, who found himself out of a job.

Now, as the New York Attorney General’s office tries to dismiss Oleske’s
objections as a personal grudge between one employee and another, the office is
reckoning with the fact that while some of Oleske’s claims are unproven, some
are verifiable. And the New York AG dismissed Oleske after he raised concerns
about the chief prosecutor, a longtime bureaucrat in New York politics: José
Maldonado.

The first time Oleske sounded the alarm about Maldonado, he found himself in
administrative hell, with executives putting Oleske on forced medical leave for
months, citing “erratic” behavior and mental health issues. When Oleske tried to
bring up potential issues with Maldonado again in October, the AG’s office
simply fired Oleske.



That decision came shortly after The Daily Beast published stories based on
leaked records that Oleske gave to the Manhattan District Attorney’s Office,
which he hoped would investigate the sister law enforcement agency.

But early last month, Oleske met with federal investigators at the Southern
District of New York and handed them a 74-page report he compiled on
Maldonado—along with his official work laptop as evidence.

Have a news tip for The Daily Beast? Send it to tips@thedailybeast.com.

The New York AG’s decision to fire Oleske marks a turning point in the former
prosecutor’s crusade to become an unlikely whistleblower. Oleske previously led
trial teams that won some of the AG’s biggest recent cases, including a massive
$523 million settlement last year from Teva Pharmaceuticals for fueling the
nation’s opioid crisis.

But he is now persona non grata at the office and viewed with deep suspicion,
according to several people who spoke on condition of anonymity. Two people
chalked up his concerns as nothing more than a “personal vendetta.” Another
called his SDNY report a “manifesto.” His sternly worded termination letter
cited his “insubordination.”

The target of his ire, Maldonado, is the chief of the AG’s powerful criminal
division. And over three decades, Maldonado has risen through the ranks of New
York’s legal realm.

After cutting his teeth at the DA’s office during the harrowing 1980s crime
wave, Maldonado became a favorite of then-Mayor Rudy Giuliani—appointed to a
panel that one local politician said was reserved for the mayor’s “cronies.” He
became a go-to city bureaucrat, weaving through mayoral administrations in
various capacities.

Maldonado now oversees all criminal investigations from the state’s top law
enforcement office, the same agency whose civil division is separately putting
former President Donald Trump on trial for bank fraud—and winning.

Maldonado has been part of AG Letitia James’ team from the very start of her
tenure in 2019. But as the years went by, Oleske—who didn’t report to
Maldonado—grew frustrated with the way the criminal division was run. For
example, Oleske was angry at the AG’s failure to indict the Rochester police
officers who arrested Daniel Prude, put a spitbag hood over his head, and stood
by while he died on a frozen street. (A grand jury voted not to indict, and the
AG’s office took the notably transparent step of publishing its secret
transcripts.)

New York Attorney General Letitia James leaves the courtroom in New York State
Supreme Court in Manhattan on Nov. 13, 2023.

BRENDAN MCDERMID/REUTERS

In May 2022, Oleske turned his investigative chops on his own coworker, only to
discover what his report calls “apparently serious misconduct” due to
“falsifying his resume and hiding conflicts of interest with OAG’s enforcement
targets.”

When The Daily Beast asked the AG’s office about how it handled Oleske’s
internal reporting, the agency stated it didn’t ignore them. “The office reviews
any complaint or allegation that’s made against any member of the office,
including those made here. The office takes every complaint seriously and has
always taken appropriate action when warranted,” a spokesperson said.

Although his full report details a litany of allegations, The Daily Beast is
only documenting what we were able to independently verify about the
high-ranking prosecutor.


DRINKING FROM THE FIREHOSE

What isn’t in dispute is that Oleske discovered allegations against Maldonado
which, until now, have never been made public.

In 2020, when Maldonado was already at the AG’s office, he was accused of racism
in an ongoing federal discrimination lawsuit in Manhattan. John Coombs, the past
president of the city’s Black firefighters association, wrote a sworn statement
that specifically called out the prosecutor for the alleged damage he did back
when Maldonado was at the New York Fire Department.

In the statement, which was filed in a public court record as part of a class
action lawsuit against the City of New York, Coombs recalled urging then-FDNY
Commissioner Daniel Nigro to fire Maldonado, who was the chief’s senior policy
adviser at the time. Coombs claimed Maldonado had used his prior role to merely
rubber-stamp the previous commissioner’s discriminatory policies.

José Maldonado.

NYC SPECIAL NARCOTICS PROSECUTOR'S OFFICE

“Previously Mr. Maldonado had served as Associate Commissioner for Compliance,
where he supposedly oversaw FDNY’s effort to enhance its recruitment, diversity,
and EEO programs. I warned Mr. Nigro that Mr. Maldonado instead had been willing
to do anything that Daniel Shacknai had asked of him, including actions that had
blocked the advancement of African Americans,” Coombs wrote.

In response to The Daily Beast’s questions about these previous complaints, the
AG’s office dismissed the allegation as an unverified and unspecific claim—one
that was meant to support the certification of a class action lawsuit that a
judge refused to give class action status.


FORE!

But an old accusation of racism is hardly Oleske’s only gripe. Oleske also
complained about the way Maldonado seemed to hide his past involvement with an
entity called the Brooklyn Golf Alliance. The nonprofit has landed $40,000 from
the city since 2019 to engage in “community programming” and youth golf
workshops, according to files reviewed by The Daily Beast. The group is an
offshoot of the business vendor that runs Brooklyn’s municipal Marine Park golf
course—one that landed a 20-year, $10 million deal to run the 18-hole waterfront
fairway and at one point, was guzzling more than 20 million gallons of city
water annually and shelling out a humongous $140,000-a-year water bill.

In Oleske’s view, one potential problem is that the nonprofit’s operations might
land under Maldonado’s purview as a prosecutor. Although the AG’s charities
bureau sits within the agency’s civil side, one former prosecutor noted, the
office can launch criminal investigations into nonprofits.

Maldonado was listed as a board member on the nonprofit’s yearly tax filings
from 2017 until 2021. The group’s website previously featured Maldonado, but he
no longer appears on the page. However, Maldonado didn’t include his involvement
with the Brooklyn Golf Alliance on his annual ethics disclosure forms for years.


 * NEW YORK AG WEIGHED HITTING TRUMP WITH RACKETEERING CHARGES
   
   TEFLON DON
   
   JOSE PAGLIERY
   
   

The Daily Beast filed a public records request with the New York State
Commission on Ethics and Lobbying in Government. The documents show that
Maldonado didn’t mention any involvement with the Brooklyn Golf Alliance in
2018, 2019, or 2020. And he only belatedly included it on an amendment to his
2021 form—one that no one would think to pull unless specifically requested from
the state office.

When he finally did update his disclosure form, Maldonado listed his involvement
with BGA under “positions of authority.”

Reached last week, the nonprofit claimed Maldonado no longer worked there.

“I don’t have the exact date, but it was when he began his current employment,”
BGA’s treasurer, Michael Weiss, told The Daily Beast.

But that doesn’t appear to be true. Official documents place Maldonado at BGA
more than two years after he joined the AG’s office. The AG’s office told The
Daily Beast that Maldonado quit BGA in 2022, when he was caught failing to
disclose his involvement.

Maldonado’s involvement with the group raises another potential conflict of
interest: The AG also cracks down on abusive property owners—a particularly
challenging job in a place like New York, where rentals are the norm and tenants
frequently get screwed. The golf nonprofit’s board also includes Jeffrey
Dunston, head of Northeast Brooklyn Housing Development Corporation—which has
the dubious distinction of being rated “second-worst” private landlord in the
city by James herself in her previous role as the city’s public advocate.

In response, the AG’s office noted that it regularly targets bad landlords—but
an employee’s mere association with someone doesn’t indicate wrongdoing.

Still, there’s a third issue that could raise eyebrows. BGA’s president is none
other than Lucius Joseph Riccio, a former New York City transportation
commissioner—and the husband of Donald Trump’s longtime personal secretary Rhona
Graff. The couple got married in 1993 at the Plaza Hotel, which was owned by
Trump (hence his iconic Home Alone 2 cameo).

Former President Donald Trump attends the Trump Organization civil fraud trial,
in New York State Supreme Court in Manhattan on Nov. 6, 2023

JABIN BOTSFORD/POOL VIA REUTERS

Maldonado’s tangential connections to Trump particularly alarmed Oleske, whose
report details his concerns that Maldonado was somehow in a position to exert
influence over the office’s early inquiry into potential criminal charges
against Trump.

However, two sources with knowledge of the matter insisted that Maldonado never
oversaw any aspect of the Trump investigation. A third person with extensive
knowledge of the Trump investigations, which were eventually handled by the DA,
shrugged off any concern that the tenuous connection would interfere with
ongoing law enforcement operations against the former president.

A fourth person, who previously worked at that office, suggested that the
disclosure failures raise fair questions but don’t present clear conflicts of
interest—a situation that’s either evidence of a stupid mistake or laziness by
an experienced public official who should know better.


I’M THE TRASHMAN

Then there’s Oleske’s other contention—that Maldonado hid his involvement in yet
another industry he might oversee as the AG’s top prosecutor: private garbage
companies.

Manhattan’s private waste hauling is notoriously fraught with problems. It’s an
industry long dominated by mob control and frequently in the news for running
over pedestrians. And each time that happens, New Yorkers call for stronger
safety rules and a regulation overhaul, as they did when a private carting truck
killed a Jewish architect cycling last year in Brooklyn—then sped off.


 * NEW YORK AG CONSIDERED INVESTIGATING GIULIANI OVER UKRAINE
   
   AMERICA'S MAYOR
   
   JOSE PAGLIERY
   
   

The problems are so extensive that they led to an award-winning ProPublica
investigation, “Trashed,” that examined corrupt practices, an attempted
crackdown, and a lobbying scheme to thwart industry reform.

The very year that investigation came out, Maldonado was a “senior adviser” to
the lobbyists at the center of it all: New Yorkers for Responsible Waste
Management, a now-defunct business league incorporated as a 501(c)(6) nonprofit.

As ProPublica pointed out, the trade association’s secretary-treasurer at the
time was Ray Shain, a convicted felon who was disbarred in New York 20 years ago
after pleading guilty to bribery and kickbacks that defrauded public schools in
Queens to the tune of $6.3 million. It's exactly the kind of nonprofit Maldonado
would police. Look no further than its bylaws, which bear the stamp of the AG’s
charities bureau, the law enforcement component that serves as an industry
watchdog.

And yet, neither Maldonado’s public LinkedIn page nor the résumé he submitted to
the AG make any mention of his past involvement. Instead, he disclosed it in a
2018 form to another state agency—records that aren’t readily available
online—in which he said he earned between $20,000 and $50,000 working for the
industry group that year.

It was a good fit, given his past position of influence in that industry.
Maldonado was once referred to as “Gotham City’s top trash cop” by Waste News, a
trade publication that in 2003 documented the way he used his position as
chairman of the city’s Business Integrity Commission to give those private
companies a major victory by deregulating the industry. Maldonado was quoted as
saying that he altered the garbage pricing system to create “an environment
where carters can make a profit and where customers will end up benefiting from
increased competition.”


 * TRUMP TRIES TO STRIKE DOWN NEW YORK AG CASE BEFORE IT STARTS
   
   NIP IT IN THE BUD
   
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He continued that kind of work at NYRWM, at one point co-authoring an editorial
piece sprinkled with corporatespeak about “solution-oriented initiatives,” where
he professed the need to “overcome the dark legacy of generations past” and
stressed that “it’s too easy to believe the worst about the waste services
industry.”

Reached last week, Shain—NYRWM’s treasurer who was previously convicted of
bribery—would not elaborate on the nature of Maldonado’s work there. “The
organization is fully disbanded. At this point there is no one to ask, and I
have no authorization,” he wrote.

As the head of the AG’s criminal division, Maldonado is positioned to greenlight
or refuse a potential sweep of the very industry he used to represent. The law
enforcement agency has the power to do so, but has mostly stuck to civil
penalties. James recently nailed a recycling company for illegally dumping
cathode ray tubes and tons of other electronics in far upstate New York. One of
her predecessors, Eric Schneiderman, sued trash collectors for rigging bids and
fixing prices. And one of his predecessors, Eliot Spitzer, tried to stop one
company from establishing a powerful rubbish monopoly.

In response, the AG’s office countered that Maldonado did this nonprofit work in
his capacity as an outside adviser while briefly operating his own consulting
firm—and that attorneys regularly build a diverse list of clients. But the
office stressed that no conflict has arisen, and if one did, it would get dealt
with through proper channels.

Still, this wasn’t the first time Maldonado went through the revolving door
between industry regulators and the business world.


TAKE STOCK

During a previous stint at the AG’s office, Maldonado was the deputy attorney
general for the AG’s Medicaid Fraud Control Unit, which the office describes as
“the largest unit” within the criminal division. In that role, he oversaw a
settlement that forced an AmeriChoice subsidiary to pay back $2 million in state
funds it received for medical services in Brooklyn but never really delivered.
But in 2003, he left government to join AmeriChoice as its “vice president of
integrity and compliance.” His résumé shows that he stayed at the UnitedHealth
subsidiary for six years.

A Newsday article about his career shift noted that “AmeriChoice is a major
contractor with government health insurance programs such as Medicaid”—which
makes it all the more startling that, in 2021, when he was now supervising the
AG’s criminal division, a sizable stock market investment suddenly appeared on
his mandatory state disclosure form.

Maldonado revealed his ownership of some $150,000 to $250,000 in UnitedHealth
Group company shares. The financial stake in the company made up nearly half of
his listed investments.

The AG’s office noted that Maldonado had received the investments back when he
still worked for the company. However, records pulled by The Daily Beast show
that he did not include them in his 2018, 2019, or 2020 state disclosure forms.

As for the conflict of interest concerns, the office noted it has continued to
target UnitedHealthcare with civil enforcement actions—suing it last year to
block a proposed company merger and scoring a $14 million settlement the
previous year for improperly denying insurance coverage.

On Sunday night, the AG issued a statement to The Daily Beast making clear that
the office stands behind its top prosecutor.

“Jose Maldonado is an incredible public servant who has dedicated his career to
protecting New Yorkers and fighting for justice. As Chief Deputy Attorney
General of the Criminal Division for the past five years, Jose has overseen some
of our most impactful work protecting New Yorkers, including our nursing home
investigations. He has always conducted himself with the utmost integrity and
care, and I’m confident he will continue this great work for years to come,”
James said.


SOUND THE ALARM

When Oleske first surfaced these discoveries internally, he turned to the AG’s
second-in-command: First Deputy Attorney General Jennifer Levy.

Emails show that Oleske flooded her inbox with increasingly anxious emails,
suggesting the office somehow get another law enforcement agency involved. After
one quick meeting in her office in downtown Manhattan in June 2022, Oleske told
The Daily Beast, he quickly returned for a follow-up—only to notice that agency
security personnel were now standing outside her doorway.

When Levy directed his concerns to the agency’s human resources, Oleske veered
hard left—thinking his own colleagues were abruptly turning against him. Instead
of looping in HR, Oleske fired off an email to an attorney on the agency’s
ethics committee. The next day, the agency forced him to stay home—and followed
up with a stark letter later that month.


 * TRUMP, HIS KIDS, BANKERS: AG LAYS OUT WITNESSES IN NY CASE
   
   NOW TESTIFY!
   
   JOSE PAGLIERY
   
   

“It has come to our attention that you have engaged in concerning conduct which
has raised serious health and safety, as well as operational concerns on the
part of your coworkers and agency management. You have been observed to have
engaged in a pattern of erratic, agitated, irrational, and disruptive behavior
in the course of recent interactions and communications with colleagues and
agency management,” the letter said. “Based on these accounts, and in full
consideration of your work history, we have reason to believe that your recent
troubling behavior may be due to a physical and/or mental impairment.”

Oleske said he was forced to burn through months of accrued paid time off, only
to return to the office as if nothing ever happened.

“My first thought was: I must have been right about José being crooked. They’re
trying to get rid of me under this threat that they’ll say I'm crazy. This is
Soviet-style, sick kind of shit,” he said.

The Daily Beast asked about how the AG handled this matter, and the agency
replied that “the office does not discuss personnel matters.”

Shortly after he returned, AG leadership in January reassigned Oleske away from
his opioids cases and put him on tobacco enforcement work, according to internal
emails reviewed by The Daily Beast. Oleske saw it as a slight. As the months
went by, Oleske waited for the right time to go public.

The day before Halloween this year was a Monday. At 10:43 a.m., Oleske emailed
more than a dozen AG colleagues with his draft SDNY report, accusing the office
of “trying to intimidate and extort me into silence rather than addressing and
resolving the problem inherent in Mr. Maldonado's false statements about his
work history and business relationships.”

Half an hour later, Oleske was formally fired and “barred from entering the
premises.”

“This letter will serve as official notice that your exempt, at-will appointment
to the position of Assistant Attorney General with the Office of the Attorney
General is terminated effective immediately. This termination is based upon your
insubordination, including your refusal to answer questions and cooperate with
an internal employment review,” HR Director Jenna Moran wrote.

When the AG general counsel’s office emailed him a week later, instructing him
to mail back his work ID card and other work gear in a pre-addressed shipping
box, Oleske let them know he couldn’t turn over his laptop. He’d already handed
it over to the feds.

“I have already surrendered all OAG property in my possession to Eric Blachman,
Special Agent in Charge of the US Attorney’s Office for the Southern District of
New York. Contact him directly with any further inquiries,” he shot back. “DO
NOT CONTACT ME AGAIN.”





JOSE PAGLIERY

Political Investigations Reporter

@Jose_Paglieryjose.pagliery@thedailybeast.com

Got a tip? Send it to The Daily Beast here.



READ THIS LIST


THAT SUDDEN PROPOSAL ON ‘GILDED AGE’ CAN ONLY END IN TRAGEDY

LAURA BRADLEY


THE SQUAD IS FACING AN ‘EXISTENTIAL THREAT’ IN 2024

SAM BRODEY


‘GOLDEN BACHELOR’ GERRY TURNER ADDRESSES EX’S ALLEGATIONS

MATT YOUNG


MYSTERY INJECTIONS OF GOVT CRITICS MAY BE SERIAL POISON PLOT

ANDREW MAMBONDIYANI


TRUMP SAVAGES CLAIM HE STOPPED EATING AFTER ELECTION LOSS

DAN LADDEN-HALL








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