Following an Inspector’s General investigation into Mike Khader in 2021, a court now finds that the City of Yonkers unlawfully withheld reimbursement of the former City Council President’s legal bills under New York State law.
Mike Khader served as the President of the Yonkers City Council from 2018 until his defeat by fellow Democrat, Lakisha Collins-Bellamy in 2021. During that primary race, an ethics investigation into Khader was initiated by Inspector General Liam McLaughlin. Normally, government officials are represented by the City’s Corporation Counsel. But in this case, Counsel Matt Gallagher denied Khader’s request for representation due to a conflict of interest. However, Gallagher referred to a New York State law that permits Khader to seek reimbursable outside counsel.
Therefore, Khader secured representation by the firm, Newman Ferrara LLP. However, throughout the course of this still-incomplete investigation, the matter of payment was disputed by the City. This culminated in a final statement from Corporation Counsel Gallagher that, “any legal costs incurred by your client during the IG investigation will be at his expense. This includes […] any legal expenses related to the interview and any production of documents.”
Khader goes to court
In September 2022, Khader filed a lawsuit in Westchester County Supreme Court to compel the City to follow the Public Officer’s Law $18(3) regarding reimbursement. To date, Khader claims over $70k in legal bills from defending himself during the investigation. He sought relief in that amount, the costs for this civil suit, and finally, “any further relief as the Court deems appropriate and equitable.”
On July 5th, 2023, Judge Melissa A. Loehr rendered her decision and orders in this case. The 12-page filing summarizes Khader’s claim and agrees that the City of Yonkers must pay Khader’s legal bills. In further explanation, Judge Loehr criticizes Gallagher for his unclear and contradictory communications with Khader during the investigation–deeming them legally “arbitrary and capricious.” She finds no cause provided by Gallagher exempting Khader from legal representation and that his later actions to do so were irrational and unreasonable.
Mike Khader will now deliver his current billing statements to Gallagher for reimbursement. This includes the initially disputed payment of over seventy-thousand dollars, as well as costs associated with this civil dispute. However, Gallagher does not have sole authority to approve these payments. He must notify both the City Council and Mayor as adjustments may be required to the City’s budget.
At this moment, it is unclear if Gallagher will face any sanctions for his conduct that will cost tens of thousands of tax-payer dollars in defense of his actions.
