Twice-Bankrupt Republican Candidate Michael Zachowicz

The Republican candidate in the 7th County Legislature District has twice declared bankruptcy in federal courts because of debts totaling more than $150,000, casting serious doubt on whether taxpayers can trust him in a public office that shares responsibility for a nearly $2 billion Erie County budget.

“Michael Zachowicz piled up more than $150,000 in unpaid debts to dozens of companies in two separate filings. Those are the facts, and they show he cannot be trusted with our hard-earned tax dollars,” said Erie County Democratic Committee Chairman Jeremy J. Zellner.

In 2003 and again in 2015, Zachowicz filed bankruptcy to avoid paying debts of $123,000 and $34,000 respectively (Case # 03-12779K, US Bankruptcy Court, Western District of New York; Case #15-42511, US Bankruptcy Court, Northern District of California).

Zellner said the Erie County Legislature is equivalent to the board of directors of a nearly $2 billion municipal corporation.

“Legislators must be able to understand a complicated county budget that has huge implications for working families, as well as Western New York’s economy,” Zellner said. “By looking at his past record, it’s clear that Zachowicz lacks that fundamental understanding.”

While many Western New Yorkers have gone through tough economic times in their pasts, the fact that Zachowicz sought shelter from creditors by using federal bankruptcy laws twice in 12 years proves that Zachowicz is an unsafe steward for Erie County taxpayers’ money, Zellner said.

He also contrasted Zachowicz’s record with the 2024 County budget released Friday, which delivers a property tax cut while increasing investments in public safety, health care, education, and vital infrastructure projects.

“Democrats in county government have worked diligently to correct the fiscal mess left behind by Republicans, resulting in lower taxes, reduced county debt, and a population growing for the first time in a half century,” Zellner said.

“The last thing the Legislature needs is another inexperienced, bankruptcy-prone Republican willing to spend uncontrollably without regard to the consequences.”

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Daniels is named in the agreement as Peggy Peterson.

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"It is unusual for a non-disclosure agreement to use pseudonyms as the agreement itself would be subject to the confidentiality clauses within it," New York lawyer Colleen Kerwick told Newsweek.

The NDA lists the fake names throughout, Newsweek reported. The two were only identified by their real names in a section that was meant only for their lawyers to see.

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Daniels’ lawyer, Keith Davidson, gave evidence in Trump’s trial earlier this week that he drafted the agreement, in which he said his client used the name Peggy Peterson, taking P for plaintiff, and he chose Trump's moniker using D for defendant.

The Dennison name came from a high school colleague of Davidson’s, he said.

"Using a John Doe name isn't a crime, but it's a building block for a case about a cover-up,” Kerwick told Newsweek.

“It was never a crime to purchase the intellectual property rights in someone's story. The alleged crime is the falsification of records to cover it up."

The use of the fake name also got attention from MSNBC correspondent Katie Phang, who wrote on X, "Why would Trump use a pseudonym in a confidential settlement agreement unless he was trying to HIDE something?"

Trump has denied all 34 charges against him.