Investigation of the Waterfront Commission of New York Harbor

Audit and Control Director Frank Nastasi Offered Private Tax PreparationServices during Commission Working HoursEvery member of Audit and Control reported that Nastasi conducted a private taxbusiness. Some members testified to seeing tax clients enter and exit Nastasi’sWaterfront Commission office during the workday. The Inspector General was informedthat Nastasi submitted numerous boxes of his clients’ tax documents to be shredded. Anemployee determined that the boxes did not contain Waterfront Commission material.Nastasi admitted to operating a tax preparation business but denied conducting itduring his regular working hours at the Waterfront Commission. Nastasi didacknowledge that some private clients came to his Commission office “after hours”before his division moved to the new offices located at 39 Broadway in early 2000. 23After the Waterfront Commission moved, Nastasi stated that his clients would only cometo the offices to deliver documents. In response to the auditors’ assertions that he alwayskept his door closed, Nastasi stated that the office was very noisy.De Maria stated that he knew that Nastasi had a private tax business and heardthat a “couple of times” Nastasi’s clients came to the Waterfront Commission.According to De Maria, he instructed Nastasi to stop preparing taxes for his clientsduring Waterfront Commission hours. After that, De Maria stated that he learned of noadditional complaints alleging that Nastasi was operating a tax preparation businessduring Waterfront Commission hours. However, the testimony of the auditors suggeststhat Nastasi continued to prepare tax documents during business hours. De Mariatestified that he did not know if Nastasi obtained permission to engage in outsideemployment as required by Commission policies because Nastasi pre-dated him and,therefore, he may have gotten permission prior to De Maria’s tenure. 24Nastasi Accessed Pornography on His Waterfront Commission ComputerDirector of Information Technology Lee Seeman testified that Nastasi accessedpornography and other inappropriate Web sites on his Waterfront Commission computerover a two-year period. Seeman testified that he informed then-Executive Director DeMaria of Nastasi’s abuse of his Commission computer, but, when interviewed by theInspector General, De Maria denied knowledge of it.Seeman stated from approximately 2006 through about eight months prior toNastasi’s retirement, Nastasi accessed or attempted to access pornographic material.According to Seeman, many of Nastasi’s attempts to access pornographic and lingerie23 The offices of Audit and Control were located at 42 Broadway until early 2000.24 The Waterfront Commission’s Employee Manual, Section K, entitled “Outside Employment,” reads, inpart: “Employment with the Commission is full time and all personnel shall consider such employment astheir sole occupation…. The Commission recognizes that an employee may find it necessary to engage inoutside employment on his or her own time. Before engaging in such employment, Commissionemployees shall state in writing the nature of employment giving details and shall obtain the approval ofthe Executive Director…. No such additional work shall be permitted if, in the opinion of the ExecutiveDirector, it will impair the ability of an employee to perform his or her Commission duties capably andefficiently.”31