U.S Representative Sean Patrick Maloney inflated his role at a software company, claiming multiple times over the past decade that he built it “from scratch,” despite officially joining the business after it was launched, The Post has learned.
Maloney, a Democrat who represents Orange and Putnam counties but is currently running for a nearby congressional seat, started as legal counsel for Kiodex in July 2000, according to news reports, public records and his LinkedIn page.
He was promoted to chief operating officer of the company, a risk management and consulting service for commodity traders, that fall, according to a campaign representative and reports.
The company registered online and in New York state months before Maloney, 55, was hired as his attorney, but the Bill Clinton administration alumnus suggested he started Kiodex, in interviews and on social media. social.
His official Congressional biography reads: “When Sean left the White House, he built his own business from scratch. His high-tech startup created hundreds of jobs in New York,” in nearly identical language on his campaign website.
Maloney, the chairman of the Democratic Congressional Campaign Committee, currently vying to represent New York’s newly redrawn 17th congressional district, appears to have been exaggerating the truth about his role at Kiodex for several years.
A Democratic political operative said the hype fit Maloney’s modus operandi, charging: “Sean will basically do and say anything to make Sean Patrick Maloney look good. That has been his number one [priority] during the time he has been in professional life”.
“For Sean, it’s always about what’s good for Sean, and all other considerations are irrelevant in his mind… so I’m not surprised at all,” the communications professional scoffed.
The source, who was familiar with how his campaign tried to present himself to voters when he first ran for the House seat he now holds, said Maloney repeatedly touted the good faith of his business in order to “attract independent voters” in the suburban district.
“It was about shaping a resume to appeal to a moderate district,” the source explained.
In 2006, during his first of two unsuccessful bids for New York State Attorney General, his campaign website provided an accurate depiction of his career in the early 2000s.
“Sean is a seasoned trading executive, having served from 2000 to 2003 as COO of Kiodex, Inc., a Warburg Pincus portfolio company that provides risk management solutions to the commodity derivatives markets,” it read. .
But as the November 2012 congressional race against Republican opponent Nan Hayworth approached, whom he beat by three points, Maloney escalated his description to say he “built his own business from scratch” on his site.
He also wrote on Facebook at the time that he helped “create hundreds of thousands of jobs in New York while working in President Clinton’s White House and later building a software company from scratch.”
After winning the House seat, Maloney went on to say that he built his own business “from scratch,” including in a press release about a “Conference at Your Company” event at MasterCard headquarters during his first month as a federal legislator.
The following month, he said in a press release: “After starting my own business, I helped create the public-private partnership commission in the governor’s office.” In July 2013, he posted on Facebook, “I built my own business from scratch so I know how hard owning your own business can be.”
He has expressed similar sentiments in more recent public statements.
“I started my own business and I know how difficult it can be to navigate the red tape and regulations. Contact my office if your small business needs a hand,” he said. tweeted in April 2018.
Following the tumultuous congressional redistricting process, Maloney left the 18th purple congressional district to run in the more strongly Democratic 17th. She will face state Sen. Alexandria Biaggi of Westchester in the Democratic primary on August 23.
Maloney worked for about five years at the law firm Willkie Farr & Gallagher LLP before serving in various White House roles, including special assistant to the president’s personal secretary.
He continued in level positions at Kiodex from 2000 to 2003, before returning to the law firm, running unsuccessfully for New York State Attorney General and working in the Governor’s Executive Chamber. He then went to law firms Kirkland & Ellis and Orrick Herrington & Sutcliffe LLP, before heading to Washington DC in 2013 to represent a suburban residential district.
Still, Maloney has chosen to inflate his role at Kiodex, even declaring on at least nine separate occasions that he had started it “from scratch.”
A representative for Maloney insisted that the congressman “was one of four executives who built Kiodex from scratch.”
“The other founders of the company have confirmed that Representative Maloney was a co-founder who was instrumental in the development of Kiodex,” added campaign spokeswoman Mia Ehrenberg. “Any effort to criticize his influence on the company is clearly false and motivated by political smear campaigns rather than reporting the facts.”
“Without any factual basis, The Post appears to think they know better than Kiodex’s founding CEO, who has verified all of Rep. Maloney’s claims.”
In a statement provided by Maloney’s campaign, Kiodex CEO and co-founder Marty Chavez said Maloney “was a key member of my original founding team, helping me build Kiodex from the ground up.”
“Sean and Raj were the first two people I talked to about Kiodex. Sean played a critical role in our early formative days, helping Kiodex overcome major challenges during the 9/11 attacks and resulting economic crisis,” the statement continues.
Maloney’s spokesperson also pointed to The Post to a December 2020 interview in which Chavez said the Fiodex “The co-founders and I did interesting things.”
“One of them is a senior partner at Goldman, another is a US congressman from New York state,” he added.
But earlier accounts of the early stages of the enterprise, before Maloney became a powerful member of Congress and the Democratic Party, paint a different picture.
The Kiodex domain name was first registered in November 1999, months before Maloney’s departure from the Clinton administration.
On February 4, 2000, while Maloney was working in the White House, “Kiodex, Inc” was registered as a corporation with the New York State Department of State. And on April 27, 2000, the startup filed a Uniform Commercial Code filing to report that it had obtained a commercial business loan.
The Washington Post reported on June 2, 2000, that Maloney would soon be leaving the White House to “become general counsel for Kiodex,” which was sold in 2004.
Kiodex announced its official launch on June 12, 2000. A June 28, 2000 Kiodex newsletter announced that Maloney had been selected as the firm’s general counsel, where he would be responsible for “developing and managing the firm’s legal, regulatory and company communications.
A November 2000 Business Wire story revealed that Maloney was “recently named” chief operating officer.
Years later, an April 2016 New York Times story described Maloney as “one of Mr. Chavez’s deputies at Kiodex.”
Maloney’s campaign failed to provide any contemporary proof that Maloney was a leader of Kiodex when it was first created.