Bharara: ‘Systemic’ Corruption in Albany, Cuomo Not Implicated ‘At This Moment’

U.S. Attorney Preet Bharara this afternoon outlined what he called a “network” of wrongdoers – both inside and out of state government – involved in two complex public corruption schemes that involved individuals close to Gov. Andrew Cuomo, including his former top aide, Joe Percoco.

Unlike in past press conferences, Bharara was careful not to go overboard in his excoriation of Albany. (He has been admonished by a judge in the past for saying too much, too soon).

He repeatedly stressed that the charges in the complaint unsealed this morning are “allegations,” though he also said that he hopes the eight remaining defendants – Todd Howe has already pleaded guilty, and is cooperating with investigators – end up going to trial, so New Yorkers “can see in gory detail what their state government has been up to.”

Bharara said the complaint outlines what he believes is a “systemic problem” in Albany – and he was also quick to note that when he uses the term “Albany,” he means the state government that is located there, and not the city itself, which he called a “wonderful town,” as Mayor Kathy Sheehan has told him “multiple times.”

Bharara was asked if Cuomo himself has any involvement in the case by a reporter who noted that he had once issued a statement absolving the governor of wrongdoing in connection with the early demise of the corruption-busting Moreland Commission. His reply:

“What I can say at this moment is that there are no allegations of any wrongdoing or misconduct by the governor anywhere in this complaint. That’s all I’m going to say.”

When pressed on whether it’s “realistic” to believe that the governor, who has a reputation of being something of a micromanager, did not know what his top aide was up to, Bharara said simply: “It’s not my job to comment on what is realistic or unrealistic.”

Bharara also said that this investigation, “as a general matter,” remains open.

The U.S. attorney was also asked if he believes that the corruption problem in Albany is getting better as a result of all the cases he has brought in recent years – including the successful prosecution of two men who were once among the state’s most powerful political players, former Assembly Speaker Sheldon Silver and former Senate Majority Leader Dean Skelos.

“I presume some people have gotten the message and abstained from engaging in criminal activity,” Bharara said. “But we’re as busy as we ever were, in some ways busier…if that’s the metric you use then the assessment is not a positive one.”

Wozniak Accuser Contemplating Run For Her Seat

The complainant in the sexual harassment and retaliation case against Assemblywoman Angela Wozniak, C-Cheektowaga, is considering a run for her office. Elias Farah, the former staffer who Wozniak admitted to having an affair with, said if the candidates who are already running for her seat don’t adequately address ethics reform in Albany, he might take it upon himself.

“Now that others, Republican or Democrat, plan to take the place of the previous two assembly members, I will hold their feet to the fire in addressing the protections that should be afforded to those who speak out against corruption and ethics violations. If they can’t address those issues I won’t rule anything out as far as a political run goes,” Farah said.

Wozniak announced earlier this week she would not seek re-election and planned to take that time to focus on her family. She has a husband and a young son.

In March, Wozniak was sanctioned by Assembly Speaker Carl Heastie after the Ethics Committee determined she had retaliated against Farah after their consensual sexual relationship had ended.

The committee wrote in its findings to Heastie that the relationship had a negative impact on the office. It also determined that Wozniak displayed “incredibly poor judgment” by entering into a relationship with someone who worked in her office.

The committee also claimed Wozniak’s attorney violated confidentiality privileges by confirming Farah’s name to Time Warner Cable News. Despite repeated calls to Farah and his attorney, neither had commented publicly about the investigation before.

“I was shamed, humiliated, intimidated, and brought into the public eye when I tried to address legitimate ethics concerns in the correct manner. That should never be the case for anyone,” Farah said.

He still works for the Assembly. Heastie called for Farah to be reassigned to a comparable job with similar pay and benefits that would come from Wozniak’s staff budget until the end of her current term.

Farah has run for office before too. In 2013, he was a Republican candidate for Erie County Legislature.

“We are currently putting together a candidate screening process. Anyone interested in running for the 143rd Assembly District should send a letter of interest and their resume to Erie County Republican headquarters,” said Erie County Republican Committee Chairman Nick Langworthy.

Remember, this is the seat Wozniak won in the aftermath of another scandal, when multiple former staffers accused her predecessor Dennis Gabryszak of sexual harassment. She defeated Mark Mazurek, the brother of Kristy Mazurek, one of the women suing Gabryszak.

Kearns Calls Silver Sentence ‘Fair And Just’

Since joining the Assembly in 2012, Mickey Kearns, D-Buffalo, has been one of Sheldon Silver’s most vocal critics. In 2013, he left the Democratic conference in protest to how the house speaker handled the Vito Lopez case.

“It was a very difficult decision but I knew it was something I had to do,” Kearns said.

He didn’t start caucusing with the Democrats again until last year, when Silver stepped down as Assembly Speaker. Tuesday, Silver was sentenced to 12 years in prison for public corruption charges.

“I don’t personalize things. I think it was fair and just,” Kearns said.

Just as interesting to Kearns as the unprecedented length of the sentence, was the $1.75 million fine the judge imposed on the former speaker.

“I believe part of the reason for that is he’ll be collecting his pension in prison,” he said.

Kearns believes the judge made a statement but he said the Assembly needs to as well. He’s calling on his colleagues to pass a bill that would forfeit legislators state pensions if they’re convicted of a felony.

JCOPE: Record $243M Spent On Lobbying

A record $243 million was spent on lobbying state and local governments in 2015, an annual report from the Joint Commission on Public Ethics found.

The report released by ethics and lobbying regulators on Thursday found the 2015 lobbying compensation was a 17 percent increase in New York over 2014.

When it came to spending for retained and in-house lobbying, New York set a record last year as well, with $206 million spent on compensation — $12 million more than the previous year.

Education-oriented groups were the top lobbyists, conducting expensive and extensive campaigns as Gov. Andrew Cuomo proposed a package education policy changes for teacher evaluations and charter schools.

The group Invest in Education Coalition, Inc., spent $5.1 million. The New York State United Teachers, meanwhile, spent $4.6 million. StudentsFirst New York, a pro-education reform group, spent $2.4 million. Families for Excellent Schools spent $1.7 million.

Other major spenders included the New York City and Vicinity Carpenters Labor Management Corp. spent $3.1 million, while the Greater New York Hospital Association spent $2.8 million.

The top lobbying firm in Albany in 2015 was Wilson Elser Moskowitz Edelman & Dicker, which received $10.5 million in compensation and reimbursements.

2015_ Annual Report_ FINAL_4_6_16.pdf by Nick Reisman

Monroe County Dems Call For I-Square Investigation

There’s a new twist in the ongoing public debate between Monroe County Republicans and Democrats over the I-Square project in Irondequoit. Monday, Democrats in the County Legislature proposed creating a special committee to investigate the County of Monroe Industrial Development Agency (COMIDA).

In response, Monroe County Executive and Republican Cheryl Dinolfo finally fielded questions from reporters about the controversy. She said political parties have no influence over the operations of Monroe County government.

This all started when Monroe County Republican Chairman Bill Reilich, in a statement criticizing the appointment of Irondequoit Town Supervisor Adam Bello to the open county clerk seat, called the I-Square development “failing.” He came under fire when he backed that initial statement up with information obtained from COMIDA, info that wasn’t actually delivered to I-Square developers Mike and Wendy Nolan until Monday afternoon.

On top of that, COMIDA seemed to go out of its way to back up Reilich’s statements last weekend, visiting the I-Square site. Dinolfo called it a normal response to media inquiries.

“I think what we have here is really a lot of interest in I-Square. Certainly the stories were prolific. There were lots of inquiries made. So I think under those circumstances, it was entirely appropriate whether it was COMIDA or whether it was a school district or a town, to go and answer those requests promptly and they did that,” she said.

Dinolfo did on several occasions try to distance herself from Reilich’s comments. Democrats want to know if there was collusion between COMIDA and the Republican party.

During their press conference they called on the legislature and the county executive to stay true to promises of open, ethical goverment they recently made while passing public integrity legislation.

Former Panepinto Staffer Retains Attorney

Sources say a female former staffer for State Senator Marc Panepinto has retained Western New York attorney Jennifer Stergion. They believe that woman is connected to the undisclosed “personnel issues” Panepinto cited as part of his reason for not seeking re-election.

When I spoke with Stergion over the phone she said she couldn’t confirm or deny.

Panepinto shocked party insiders last week when he returned to Buffalo from Albany to make the announcement. Since then, there’s been speculation about the “personnel issues” including the sudden departure of his chief of staff, Danny Corum.

Last week, the Buffalo News reported the Joint Commission on Public Ethics has taken the preliminary actions for an ethics investigation, while the New York Post reported more details on the rumors swirling in Albany.  Tuesday morning, JCOPE met for the first time since the reports.

Meanwhile, Panepinto was also seen by reporters in the Capitol Senate Chamber for the first time since his announcement.

One person who doesn’t appear to be giving the Senator the benefit of the doubt is Governor Cuomo. The governor’s had a tepid at best relationship with Panepinto, refusing to endorse him in a vital race for Democrats last election cycle.

“I am very, very disappointed when a person who runs for public office and holds themselves out to be trusted by their community, winds up involved in a sordid affair. So I don’t know the details, I don’t want to know the details, but let somebody else run who will respect the position,” Cuomo said.

Panepinto said the primary reasons he would not run again were because his law partner had cancer and concerns about a potential legislature-wide ban on outside income.

Erie County Party Bosses Urge Wozniak To Contemplate Re-Election Bid

A scandal surrounding her affair with a staffer hasn’t scared Western New York Assemblywoman Angela Wozniak out of politics. Through a statement from HoganWillig Attorneys At Law, Thursday, Wozniak confirmed her plans to run for reelection.

“Angela Wozniak is grateful for the overwhelming support she has received by the residents of the Towns of Cheektowaga and Lancaster and the Village of Depew whom she has been diligently serving in the Assembly since December of 2014. She served with distinction as a Councilmember for the Town of Cheektowaga since 2012. Having won two prior elections, Ms. Wozniak looks forward to running for re-election to the Assembly in the upcoming race,” the statement said.

The Assembly Ethics committee concluded Wozniak did retaliate against the staffer. The Assembly will no longer allow her to have interns and will require a periodic monitor for her office.

Area Democrats say there should be even greater consequences.

“Two years ago we called for Dennis Gabryszak, a member of my own party, to step down following a ruling by the state ethics commission. In light of today’s Buffalo News editorial and the facts that have emerged regarding Angela Wozniak’s conduct, I believe Republican and Conservative party officials should consider doing the same,” Erie County Democratic Committee Chairman Jeremy Zellner said.

Wozniak won the 143rd District in 2014 after the seat was vacated by longtime Democratic incumbent Dennis Gabryszak, who retired amid his own sexual harassment scandal. Wozniak ran on an anti-corruption platform and was held up as a symbol of Western New York’s conservative movement.

Wozniak was the first non-Democrat elected to that seat in four decades. She’s the only registered Conservative in the New York State Assembly.

But in the wake of the ethics report, Erie County’s party bosses haven’t been as quick to stand behind her.

Conservative Chairman Ralph Lorigo said he wants to give Wozniak time to make some decisions before he starts making public statements about her reelection bid. Lorigo said he believes the assemblywoman is a good person but the political implications of the report can’t be ignored.

“She’s going to have a very difficult time trying to seek reelection. She’s going to have to go back into her area and talk with her constituents,” he said.

Republican Chairman Nick Langworthy, a Wozniak mentor, echoed those sentiments in a statement Friday.

“This entire situation is incredibly disappointing,” he said. “Assemblywoman Wozniak needs to spend private time with her family and make things right. I have strongly urged Assemblywoman Wozniak to also go into her district, meet with constituents and see if they continue to support her and have the confidence in her to represent them in the Assembly.”

The Democratic Committee said it’s changing its policy as a result of two straight scandals in the 143rd. It will no longer endorse candidates who are under investigation or sanctioned for ethics violations.


Wozniak’s Attorney Expects Ethics Committee Report Soon

It’s been a recurring trend when it comes to the New York State Assembly Ethics Committee investigation into Western New York Assemblywoman Angela Wozniak. Her attorney Steve Cohen said, in general, the media has had more information about what’s going on with the investigation than he has.

That was the case again when a source told Capital Tonight’s Zack Fink to expect sanctions for Wozniak on Thursday. Cohen said he is expecting the committee’s report but doesn’t anticipate any punishment for his client.

“I just don’t think the facts could support any of those accusations or charges,” he said.

The attorney admitted if the committee concludes there was merit to accusations Wozniak sexually harassed and retaliated against a male staffer, he believes there could be trouble. He said because Wozniak is the only registered Conservative on the New York State Legislature, she is a political target.

“It is my expectation that Democrat Carl Heastie, that Democrat Charles Lavine are probably going to come down harder on her than they would on anyone else and let’s not forget Sheldon Silver was not sanctioned by the Assembly Ethics Committee,” he said.

A source told Fink the sanctions would include not allowing Wozniak to have interns and assigning somebody to monitor her office.

“I believe that would be completely unwarranted here. It is my position based on what I know of the case. It is my opinion, my belief that the accuser manipulated this situation and putting in a monitor to monitor Angela Wozniak would be entirely inappropriate.”

Cohen said he and Wozniak are hoping to put the investigation behind her but they can’t make any final decisions until they see the report. He is not ruling out an appeal though.

Avella Introduces Pension Forfeiture Amendment

Sen. Tony Avella on Friday introduced yet another version of a constitutional amendment that would require elected officials convicted of public corruption to surrender their pension.

Lawmakers in the GOP-led Senate and Democratic-controlled Assembly remain at odds over pension forfeiture, or at the very least how to go about it.

The Senate approved one version of the amendment at the conclusion of the March budget process last year. The Assembly was poised to do the same, but lawmakers raised concerns about the way the measure was written, and passed on the initial amendment. The Assembly subsequently approved their own pension forfeiture measure which the Senate is yet to consider.

Avella, a Queens lawmaker, is a member of the Independent Democratic Conference. His amendment does not have a same-as in the Assembly.

As introduced, the amendment would require any “elected official who is convicted of a felony offense against public administration that occurred during his or her time in office shall forfeit rights to his or her benefits subsequent to the criminal conduct for which such elected official was convicted.”

This proposal has an interesting wrinkle. Rather than stripping an elected official of their pension entirely, the credit would essentially end at the time in which they committed the crime.

The amendment comes the same week it was revealed the final pension calculation for ex-Senate Majority Leader Dean Skelos would exceed $95,000 a year. Skelos was convicted of felony federal corruption charges in December.

His former counterpart in the Assembly, former Speaker Sheldon Silver, is drawing on a $79,000 a year pension.

Gov. Andrew Cuomo on Thursday called it “absurd” disgraced ex-lawmakers were receiving pension benefits.

“This is one where actually the people of the state can make a real difference,” Cuomo said while on Long Island. “I would ask them to reach out, call their assemblyperson, call their senator, and say revoke the pension of any person convicted of a crime in office, period.”

Earlier this month, Assembly Speaker Carl Heastie said the Democratic conference had sought “clarity” on the forfeiture issue. At the same time, he questioned the impact of stripping retirement benefits from ex-legislators.

“One of the things people need to realize that even for those whose pensions are taken, there are families that are affected,” Heastie said. “We in the Assembly we always want to be mindful how this is going to affect everyone. Yes people are going to raise concerns, because it doesn’t just affect who has unfortunately has done a misdeed, but it also affects the family. We just want to take a real holistic approach to things.”

S6769 by Nick Reisman

LDC Saga Continues As Monroe County Political Committees Call On Each Other To Refund Contributions

Tuesday, Rochester businessman Daniel Lynch, became the fourth and final co-defendant to plead guilty in Monroe County to bid-rigging charges. But the scandal surrounding contracts awarded by a Local Development Corporation that has dragged on for years, did not end just because the litigation is over.

Wednesday, Monroe County Democratic Chairwoman Jamie Romeo called on the county Republican committee to refund or donate any “stolen funds” contributed to the party by Lynch. The press release cites testimony from Lynch in the plea agreement that he directed tens of thousands of stolen dollars from inflated county contracts to both the Monroe County Republican Housekeeping Account and Friends of Maggie Brooks, a committee for the former county executive.

GOP Chairman Bill Reilich quickly responded that the party is investigating and will return any money associated with the illegal activities in question. Reilich also said, to the best of his knowledge, only one individual donation was made by Lynch to the party since his chairmanship began in 2008.

“During an investigation in 2012, an inquiry was made regarding individual donations. At that time we learned that Mr. Lynch had donated $10,000 to the Housekeeping account. That amount was immediately refunded,” he said.

Furthermore, Reilich said during the party’s own investigation it found Lynch’s company Navitech Services Corp. had made two separate donations totaling $4500 to the Democratic committee. He called on the chairwoman to heed her own advice.

“I am disappointed in the hypocrisy that has been displayed by Ms. Romeo. Instead of jumping to conclusions, she should have taken the time to review her own Committee’s financial dealings with individuals and businesses implicated in the LDC investigation,” he said.

Romeo volleyed back.

“We have been in that process regarding this money but to try to insinuate that County Democrats were influenced by such a contribution is beyond absurd,” she said.

New County Executive Cheryl Dinolfo, R, has made eliminating LDC’s one of the main focuses of her office and has also introduced legislation to create an Office of Public Integrity.