William W. Koeppel, a Manhattan landlord and fund-raiser for Mayor Rudolph Giuliani and other Republican candidates, pleaded guilty Nov. 22 to attempted rent-gouging in State Supreme Court.Koeppel admitted demanding contributions to Republican politicians' campaigns from tenants who wanted to move into rent-regulated apartments he owned or controlled. He was caught when some of the tenants who made the contributions reported the payments to authorities. He was sentenced to 250 hours of community service and $21,200 in fines and restitution.
Rent-gouging is a misdemeanor and carries a possible sentence of up to one year in jail. It is illegal to charge a tenant any fees or other charges in excess of the legal rent of a regulated apartment. The contributions fell under the category of excess rent.
Koeppel raised $78,450 in 1993 and $103,400 in 1989 for Giuliani's mayoral bids. Giuliani then appointed him to the unpaid directorship of the Off-Track Betting Corporation in 1994. Koeppel removed himself temporarily from the post at the mayor's request when he was arrested last year.
Giuliani told the New York Times that he was saddened by his friend's predicament. However, the mayor's office did not say if Koeppel would now be asked to resign.
The rent-gouging solicitation of campaign contributions only came to light in 1994 because of news reports that Koeppel was preferentially renting his apartments to Giuliani staffers in an apparent attempt to ingratiate himself with City Hall. Sixteen Giuliani aides had received Koeppel's largesse, including 14 who received anywhere from two weeks to three months free rent. The City Conflicts of Interest Board subsequently heard this case and found no breach of ethics by the aides.
Cynicism notwithstanding, it is entirely likely that these aides, like their boss the Mayor, did not need rent breaks in order to be kindly predisposed toward the real-estate industry.