The members of the city commission that released a former Republican state senator, Guy Velella, from jail did not understand their own rules or require majority votes, rarely kept records, and almost never met, according to a scathing report released yesterday.

The Local Conditional Release Commission met in the Velella case only because the board’s chairman, Raul Russi, knew the case would be high profile, the city Department of Investigation found.

Mr. Russi told investigators it would “be important to have everybody’s vote on the record in case there was going to be any questions about it,” according to the report.

“The commission members were unfamiliar with and were not following the laws and rules that relate to the way in which determinations should be made in early release cases,” DOI Commissioner Rose Gil Hearn said.

In September, the formerly obscure four-member commission voted to release Velella and two other men who had been convicted on bribery charges after they had served about three months of their yearlong sentences. The releases of Velella, Hector Del Toro, and Manuel Gonzalez prompted investigations by the DOI and the Manhattan district attorney’s office.

The board’s four members and its counsel have resigned, and Mayor Bloomberg has appointed new members. No wrongdoing was found on the part of the mayor or his senior staff.

The DOI report recommended that the three releases, and possibly thousands of other cases, be re-examined to ensure they complied with the law. A criminal investigation continues.

In a letter to the board dated September 16 – six days before the board voted to release him but about a month after it had rejected his early release – Velella wrote from jail that he felt “as if I am losing my mind.”

“I have been totally dehumanized,” his letter said. “I cannot take this much longer. I cry in my cell at night before I try to sleep.” He added, “When the name Velella is spoken now, it will be associated with a jailed criminal, someone who lost his Senate seat, his right to be an attorney and even his right to vote.” He signed off: “Please help me.”

Dozens of letters from prominent officials, including Mayor Koch, also were mailed to the commission, many urging Velella’s early release. The DOI inquiry found many irregularities surrounding Velella’s release, including the lack of a quorum at the meeting; one member who is listed as having recused herself even though she said she had not; an abbreviated time between Velella’s denial and his reapplication; and the fact that the husband of one board member, Jeanne Hammock, was representing Velella as he sought release.

The inquiry also found that in apparent violation of its mandate, the board almost never met to review early release applications from inmates. In stead, one member would scrutinize an application, and if that member decided to reject it, the decision was final. If the member voted to approve the application, another commission member would be asked to consider it; if the second commission member voted to approve the application, it was considered approved, and no other commission member would consider it. One commissioner, Amy Ianora, said she did not know the number of votes needed to approve or deny an application. And the commission’s counsel, Louis Gelormino, who doubled as its executive director, said he did not understand his job duties.

Besides Velella and his two co-conspirators, the board released only two other inmates out of 1,094 who applied between July and September. The DOI commissioner recommended Mr. Russi lose his position on the city’s Board of Corrections. A few hours later, Mr. Bloomberg said he had accepted Mr. Russi’s resignation.