Who authorized Buffalo to hire a local political donor charged with federal crimes?

BUFFALO, N.Y. (WIVB) – News 4 is learning more about how and why the City of Buffalo hired a local political donor who has been charged with federal crimes including money laundering and wire fraud. It’s a story we first reported on and have been following closely for months.

Last March, WIVB was the first to report how the City of Buffalo hired Hormoz Mansouri, an indicted political donor. He and his firm were awarded a six-figure contract to consult on two city park projects. The revelation led to the resignation of Mansouri and Mayor Byron Brown, who called the situation “embarrassing.”

WIVB has filed a request for access to public records to learn how and why the hiring was made.

New documents obtained by WIVB show who signed the contract awarding Mansouri and his company, EI Team, a $166,000 contract to work on the two park projects. The documents also show who gave Mansouri’s company high marks in an evaluation process, even though he faces a 40-count federal indictment.

“Hormoz Mansouri of the EI team, we are the architect and engineer responsible for the master plan,” Mansouri said in March during a meeting with residents about the Shoshone Park project.

Three years ago, Mansouri was charged by federal authorities with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and money laundering. He is accused of lying on loan applications, inflating payroll expenses to obtain more than $3.5 million in COVID-19 relief funds, and routinely transferring money back and forth through multiple bank accounts to conceal the alleged scheme. Federal prosecutors say Mansouri brazenly funneled more than half a million dollars to a casino using COVID funds. The case against Mansouri resulted in the seizure of nearly $2 million, according to the U.S. Attorney’s Office.

But still, after a selection process, Mansouri and his firm were hired by the city last summer to consult on the redevelopment of Shoshone and Trinidad parks. When WIVB began asking questions about the hiring, Mansouri and his firm resigned from the park projects.

WIVB (in March): Would you say it is embarrassing that the city hired a contractor/consultant who was under federal indictment?

BROWN: There is no doubt that this is embarrassing, but as I mentioned, the selection committee looked at the federal list of excluded companies, companies that are not allowed to bid on federal contracts, and this company was not on that list.

Instead, during the selection process, EI Team presented itself as a company with “an exceptional track record.” Public records show that Department of Public Works Commissioner Nate Marton signed both the notice of commencement and the contract with Mansouri. Documents on the city’s rating criteria for consultants show that both the city’s chief engineer, Steve Buccilli, and Deputy Parks and Recreation Commissioner Andy Rabb gave EI Team glowing ratings on the Shoshone and Trinidad park projects. Emails obtained by News 4, showing discussions between city officials and EI Team, make no mention of any legal issues facing Mansouri or his companies.

“We didn’t have that information in front of us and it wasn’t readily available, so we made the EI team assessment based on what we had in front of us,” Marton said.

Shoshone Park is located in the University District, represented by City Councilmember Rasheed Wyatt.

“People who heard the story were shocked and I was shocked,” Wyatt said.

Since Mansouri’s resignation, the city has been looking for two new consultants. Even without a lead consultant, Wyatt said the Shoshone Park redevelopment remains on track.

“A lot of the work has already been done,” Wyatt said. “That’s good news, there are still other things that need to be improved, but overall the project is moving forward.”

The City of Buffalo has now hired two new firms to replace the EI team on the park projects, nearly four months after they resigned. GPI will work on the Trinidad Park project, while Wendel Engineering will work on the Shoshone Park project.

“We know things didn’t go as smoothly as we would have liked,” Wyatt said. “So hopefully we won’t have any more problems in the future.”

The city’s public works department said construction on both park projects is scheduled to begin next year.

As for future reforms, the city’s public works department said it plans to add a questionnaire for consultants to the city’s bidding process. Federal prosecutors said Mansouri faces up to 30 years in prison and a $1 million fine. His trial is expected to take place this fall.

According to campaign financial records, Mansouri and the limited liability companies named in the federal indictment gave Brown about $10,000 over the years. But Brown said in March that had nothing to do with the contract Mansouri received.