Joseph Percoco, the former executive deputy secretary to the governor, and Alain Kaloyeros, president of SUNY Polytechnic Institute, are among those who face charges.
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The 80-page indictment said the nine individuals named were involved in ‘bribery, corruption and fraud in the awarding of hundreds of millions of dollars in state contracts and other official state benefits’. Announced during Cuomo’s 2012 “State of the State” address, the initiative flushed $1 billion into the western NY metropolis bordering Lake Erie and known as “The Nickel City”.
Also charged were COR Development executives Steven Aiello and Joseph Girardi and LPCiminelli executives Michael Laipple, Kevin Schuler and CEO Louis Ciminelli.
Bharara said the complaint spells out specific, concrete actions that are outside the scope of what the Supreme Court narrowed.
Often described as Cuomo’s closest aide, Percoco had duties ranging from acting as the governor’s “body man” at events to enforcing the governor’s orders.
The complaint is also full of some colorful details, including the fact that Percoco referred to cash payments as “ziti”, which was lifted from the HBO series “The Sopranos”, which, incidentally, was about mobsters.
Neither that company nor Kelly’s lawyer responded to requests for comment. The money supposedly came from COR Development and Competitive Power Ventures, an energy company that was angling for a state contract worth $100 million dollars. Percoco apparently used the name “Herb” while discussing the arrangements.
Meanwhile, the public’s trust in government erodes.
Peter Galbraith Kelly Jr., an executive at Competitive Power Ventures, is accused in the complaint of conspiracy and paying bribes to Percoco.
Also unsealed Thursday was a guilty plea by the ninth defendant-Todd Howe-who participated in the corruption schemes and was hired as a consultant by Kaloyeros. Percoco’s wife isn’t charged in the case. ALBANY CORRUPTION The cases were the latest to focus on Albany, New York’s capital, following last year’s convictions of the leaders of the state legislature’s two houses, Democrat Sheldon Silver and Republican Dean Skelos.
Authorities accused Percoco of conspiring with Kaloyeros and Howe to ensure lucrative state bids would go to COR Development and Buffalo contractor LPCiminelli.
Cuomo reacted to the news on Thursday, saying that the federal allegations against former members of his inner circle are saddening and “profoundly” disappointing. The governor may or may not have knowledge of the supposed misdeeds of some of his associates, but he has most certainly created an environment that’s made state government susceptible to official misconduct.
A person familiar with the matter said that New York Attorney General Eric Schneiderman is preparing to file charges against Kaloyeros and Joseph Nicolla, president of real estate developer Columbia Development Corp., for taking part in opposite sides of a bribe to rig bids for state construction contracts.
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“I hold my administration to the highest level of integrity”, he said. Kaloyeros is scheduled to be arraigned today in City Court on the three felony counts in the state case.
