Federal corruption charges were announced on Thursday against two former close aides to Gov. Andrew M. Cuomo, a senior state official and six other people, in a devastating blow to the governor’s innermost circle and a repudiation of how his prized upstate economic development programs were managed.The charges against the former aides, Joseph Percoco and Todd R. Howe, and the state official, Alain Kaloyeros, were the culmination of a long-running federal investigation into the Cuomo administration’s attempts to lure jobs and businesses to upstate New York’s limping economy by furnishing billions of dollars in state funds to developers from Buffalo to Albany. Mr. Howe is cooperating with the investigation, according to a 79-page criminal complaint unsealed on Thursday.The charges stemmed from “two overlapping criminal schemes involving bribery, corruption and fraud in the award of hundreds of millions of dollars in state contracts and other official state benefits,” federal prosecutors said in the complaint.
ALBANY— Alain Kaloyeros, the now former CEO of SUNY Polytechnic Institute, has been charged with three felony counts in connection to an alleged bid-rigging scheme, Attorney General Eric Schneiderman announced Thursday.
The complaint against Kaloyeros, 60, alleges he steered, or agreed to steer, the awarding of contracts to favorable companies, including Columbia Development, a real estate firm with extensive ties to the Capital Region.
The complaint alleges Kaloyeros improperly used the Request for Proposal process to direct contracts to certain firms for the construction of facilities for SUNY Poly.
“A year-long investigation by my office found that Alain Kaloyeros allegedly used his perch atop SUNY Polytechnic [and] engaged in brazen bid-rigging, using taxpayer dollars and abusing his power to enrich himself and his cronies,” Schneiderman said at a press conference in Manhattan. “According to our criminal complaint, Kaloyeros gave insider information to friends and fixed the bidding process to ensure his cronies lucrative contracts, funded in part by the state of New York.
Kaloyeros, who is expected to be arraigned in Albany City Court on Friday, has been charged with three felony counts of Combination in Restraint of Trade and Competition. Joseph Nicolla, the head of Columbia Development, has been charged with one felony count of of Combination in Restraint of Trade and Competition and is expected to be arraigned on Monday.