Perdido 03

Perdido 03
Showing posts with label Buffalo Billion. Show all posts
Showing posts with label Buffalo Billion. Show all posts

Thursday, September 22, 2016

Preetmas Eve

Various outlets on the Cuomo corruption story today - first the NY Times:

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.

Politico NY:

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.


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.

Politically there's going to be some serious fallout for Cuomo and he's never going to want Sandra Lee to make "ziti" every again, but he appears to be skating on criminal charges, at least for now.

Whether that changes as a result of any of the fellows charged today dishing dirt on him, we'll just have to wait and see.

In any case Happy Preetmas Eve everybody.

Next up in the NY Corruption Season - Bill de Blasio and those donors.

Former Cuomo Aide Joe Percoco, Others To Face Corruption Charges Related To Andrew Cuomo's Economic Development Projects

Finally:

Federal authorities plan to unseal charges against a former top aide to New York Gov. Andrew Cuomo as early as Thursday in connection with an alleged bribery and kickback scheme involving the governor’s signature economic-development program, according to people familiar with the matter.
In addition to the former aide, Joseph Percoco, the U.S. attorney’s office in Manhattan intends to bring public-corruption charges against a number of other individuals in connection with the wide-ranging investigation, these people said.

The precise nature of the charges against Mr. Percoco, who for decades was one of Mr. Cuomo’s most senior aides and closest friends, wasn’t immediately clear.

For months, Mr. Percoco has been at the center of a probe by U.S. Attorney Preet Bharara’s office concerning allegations of bribery and kickbacks in connection with an economic-development program known as the Buffalo Billion, which Mr. Cuomo has lauded as having revived the sleepy upstate economy.

Since the investigation became public in April, Mr. Cuomo, a Democrat, has distanced himself from Mr. Percoco and ordered an internal review of the Buffalo Billion program. A spokesman for Mr. Cuomo didn’t respond to a request for comment Wednesday evening.

And the fallout for Cuomo:

The probe and expected charges represent the most significant political crisis Mr. Cuomo has faced since he took office in 2011, in part because they are linked to some of his signature programs and major donors, but also because of the alleged involvement of Mr. Percoco in particular.

For years, Mr. Percoco has been one of the governor’s most trusted allies, an individual so tight with the Cuomo family that the governor once described him as “my father’s third son, who sometimes I think he loved the most.”

If anybody knows where some of the Andrew Cuomo administration bodies are buried, it would be Joe Percoco, Mario's "third son."

Some reaction:


Who else will be indicted?

Perhaps Percoco's wife, who also was being investigated for funky payments from one of the companies involved.

SUNY Poly's Alain Kaloyeros was getting looked at as well as part of the investigation, but whether he's part of today's show is uncertain.

I suspect if Kaloyeros were going to go down today, he'd have been part of the leak.

Definitely Todd Howe, who has been cooperating with the feds in the matter, to be charged - the NY Times reports half a dozen people are going to be charged today in all.

As for Andrew Cuomo, the damage to his administration will be big, though probably not fatal.

This is Cuomo's signature economic development program that Percoco and Company were using as their personal cash box and Cuomo, Mr. Accountability himself, had no idea (or so he says) this was going on.

At the very least, the political damage is that Cuomo was not paying attention as those closest to him (Percoco and former Cuomo aide/now cooperating with the feds lobbyist Todd Howe) were engaging in bribery/kickback schemes and other shenanigans.

The NY Times described the fallout for Cuomo as

a devastating blow to the governor’s innermost circle and a repudiation of how his prized upstate economic development programs were managed, according to people with knowledge of the matter.

There remains the possibility that Percoco can be squeezed for what he knows about Cuomo and all those donors (the pattern has been: Donate to Cuomo, Get Contract/Favor in return), though I suspect if that were going to happen, there might already be indication of that in a leak.

In any case, going to be a fun day if you've been waiting for the Cuomo economic development project bribery/kickback/corruption investigation season to finally kick off.

One final point: with Bharara finally making a move on Percoco, I wouldn't be surprised if we don't get some action on one or more of the various de Blasio corruption probes in the very near future.

Thursday, August 18, 2016

Cuomo Approaches Teacher Evaluations With Same Illiteracy He Uses For His Economic Development Programs

It's been quite the couple of weeks for Governor Andrew Cuomo.

Cuomo, who likes to spend his days finding new ways to torture Bill de Blasio, found himself on the end of some of his own torture in the form of state and federal audits of some of his signature economic development programs as well as a legislative hearing that laid bare the failures of another one of his signature economic development programs.

First came state audits conducted by Comptroller Thomas DiNapoli which were critical of Cuomo's economic development program compliance and accountability mechanisms:

The governor escalated yet another feud with yet another fellow Democrat after an unrelated press conference in the Bronx this afternoon. Responding to a series of unflattering summertime analyses of his signature programs, Cuomo bashed DiNapoli’s two-decade tenure representing parts of Nassau County in the Assembly and argued that history discredited the comptroller’s assessments.
...

The governor did not specifically attack any particular proposals the comptroller voted on in Albany but insisted the Assembly had been “part of the problem” and had “basically abandoned upstate New York.”

Cuomo’s slap at DiNapoli was a reaction to the comptroller’s findings earlier this month that the New York Power Authority, which was supposed to dispense power to struggling nonprofits and entrepreneurs at discounted rates under the governor’s Recharge NY program, had made numerous errors when assessing applicants’ eligibility. This meant noncompliant entities got cheap electricity from the state anyway, while groups that qualified for the program were barred from participating.

The governor appoints the power authority’s entire board.

That audit followed the comptroller’s July takedown of the Empire State Development Corporation, another Cuomo-controlled public-private venture, and its Excelsior jobs program. DiNapoli found that the development corporation had repeatedly handed out large tax breaks to companies without obtaining the necessary documentation to corroborate their eligibility or productivity.

Cuomo claimed DiNapoli's audits were not quantifiable but were instead "opinions":

“What you’re getting in an audit is that person’s opinion, right?” the governor said. “Sometimes I agree, sometimes I disagree, because it is only an opinion.”

Except that the state audits weren't "opinions":

The comptroller’s audits of Recharge NY and the Excelsior program were, in fact, based on numbers and hard data his office obtained from the NYPA and ESDC, from the businesses they worked with, and on eligibility requirements Cuomo’s own initiatives established. A DiNapoli spokeswoman refused to respond to the governor’s personal attacks.

“The reports completed by our professional auditors speak loudly for themselves,” said Jennifer Freedman, communications director for the comptroller.

Nice work by the governor there to take an audit based on numbers and hard data from Cuomo-controlled entities like NYPA and ESDC and turn them into "opinions", eh?

Later on, Cuomo tried a diversionary tactic to defend against the state audit findings:

Facing numerous analyses showing his signature jobs programs misallocated resources and put few New Yorkers to work, Gov. Andrew Cuomo argued today that any such assessments are only a matter of political point of view.

Speaking after an unrelated event in the Bronx, the governor defended his attacks last week on state Comptroller Thomas DiNapoli, who released unflattering audits of two Cuomo programs this summer. The governor again insisted that those findings were just DiNapoli’s opinions, opinions which are open to debate given the comptroller’s history as an assemblyman from Long Island.
“I said these are matters where people give their opinion. I have certain opinions that are my opinions. I believe in marriage equality, right? I believe in $15 as a minimum wage. You could not believe—there are assemblymen who don’t agree with me, there are senators who don’t agree with me on the minimum wage. And if they write a report, they’re going to say my minimum wage idea was a bad idea, because they disagree with it. And that’s fine—that’s democracy. And assemblymen take positions during the course of their tenure. And some people support minimum wage, some people don’t support minimum wage. Some people don’t support economic development. There are people in the Assembly who say there is no economic development possible, leave it to the private sector. So you get opinions,” the governor said. “It’s a matter of opinion on many of these issues, and there’s no right or wrong. That’s why we have elections; that’s why we have debates. Donald Trump thinks one thing. Hillary Clinton thinks another thing.”


How any of this commentary was relevant to the Observer’s specific question about DiNapoli, a well-known liberal Democrat, is unclear. The audits the comptroller’s office produced had nothing to do with gay marriage or with the state’s new pay floors, but with Cuomo’s Recharge NY and Excelsior programs.

Of course none of that nonsense Cuomo spewed about the minimum wage or gay marriage had anything to do with the questions about the state audits and Cuomo's lame defense that they were "opinions."

Rather this nonsense was pure diversionary tactic - "Hey, look over there!  Gay marriage! Minimum wage hike!  Whee!  Yayy Cuomo!" - not a reasoned defense of his economic development programs to the scathing audit findings.

And again, as Will Bredderman at the Observer shows, DiNapoli's audits were anything but opinion:

Recharge NY, run through the Cuomo-controlled New York Power Authority, was supposed to dispense power to struggling nonprofits and entrepreneurs at discounted rates. But DiNapoli’s auditors found NYPA had made numerous errors when assessing applicants’ eligibility—meaning noncompliant entities got cheap electricity from the state anyway, while groups that qualified for the program were barred from participating.

The governor appoints the power authority’s entire board.

That audit followed the comptroller’s July takedown of the Excelsior jobs program, run through the Empire State Development Corporation, another Cuomo-controlled public private entity, and its Excelsior jobs program. DiNapoli discovered that the development corporation had repeatedly handed out large tax breaks to companies without obtaining the necessary documentation to corroborate their eligibility or productivity.

The comptroller’s audits of Recharge NY and the Excelsior program were based on numbers and hard data his office obtained from the NYPA and ESDC, from the businesses they worked with, and on eligibility requirements Cuomo’s own initiatives established.

But hey, what's some hard data and numbers taken from Cuomo's own entities when you can be diverting with some nonsense about gay marriage?

Cuomo tried a similar nonsensical defense with a federal audit this week that found New York State wasted $22 million dollars in Sandy funds:

Gov. Andrew Cuomo slammed President Barack Obama’s Department of Housing and Urban Development today for alleging New York mishandled $22.4 million in hurricane relief funds from Washington—insisting that his administration understands federal law better than Obama’s.

Cuomo, a Democrat who headed HUD during the Clinton administration, lashed out at an audit by Obama’s inspector general for the agency while addressing the press after an unrelated event in the Bronx this morning. IG David Montoya’s office found that Cuomo’s  Office of Tourism and Marketing did a poor job meeting the requirements of the block grant money it received in the aftermath of 2012’s Hurricane Sandy.

But the governor argued that Montoya and his staff don’t understand HUD rules.

“Some federal person, entity, did an audit. We believe they misread the law, and misread the regulations, about how the funding should be spent, and so we’re contesting their opinion,” he said, boasting of his administration’s response to the disaster. “During Hurricane Sandy, we expended billions and billions of dollars, literally. In the handling of the emergency and the construction and the aftermath, trying to get people to come back to the effected communities. So I’m very proud of what the state did.”

So what did the federal audit find?

In particular, Montoya’s auditors discovered that the state handed millions for marketing and promotions to the Empire State Development Corporation—a Cuomo-run public-private organization—and the city of Long Beach on Long Island without first obtaining an independent analysis of the costs of their respective programs. It also determined the state did not get sufficiently detailed budgets from either ESDS or Long Beach on how the federal dollars would get spent.
“State officials did not always establish and maintain financial and administrative controls to ensure efficient and effective program administration,” the audit report reads. “We attribute these conditions to State officials not placing sufficient emphasis on ensuring compliance with all procurement requirements.”

Montoya’s office brushed off Cuomo’s criticism.

“We believe that the audit speaks for itself, period,” said spokesman Darryl J. Madden. “Throughout the audit process the state was given ample opportunity to comment on our findings and results.”

Another scathing audit, this time federal, but same lame defense tactic from Cuomo - the audit's bullshit, it wasn't done right, we did everything we were supposed to do, etc.

But notice, Cuomo never uses any facts, figures or hard data in his defense against these audits - all we get are personal attacks and diversionary tactics.

The audits came on the heels of a legislative hearing that took another signature Cuomo economic development program to task - the infamous START-UP NY program:

ALBANY - Gov. Andrew Cuomo's top economic-development official on Wednesday bemoaned a wave of skepticism surrounding Start-Up NY, a state program that created just 408 new jobs in its first two years despite a $53 million advertising campaign.

Over more than two hours of questioning, a bipartisan group of state Assembly members grilled Empire State Development President and CEO Howard Zemsky about the much-debated jobs program at a hearing Wednesday on the state's efforts to boost its economy.

Zemsky was defiant as lawmakers repeatedly questioned the effectiveness of the Start-Up program, which allows qualifying businesses to operate free of state and local taxes for a decade if they set up shop in pre-determined zones, mostly at State University of New York campuses.

He repeatedly characterized Start-Up as a single "tool" in the state's economic-development "toolbox" and suggested criticism of the program is outsized and unfounded.

...
 
Cuomo and state lawmakers approved the Start-Up program in 2013, and the state spent $53 million promoting it with television advertisements in and out of state in 2014 and early 2015. The governor referred to the program as a potential "game-changer" and "catalyst for economic development" in upstate New York.

Empire State Development, which oversees the program, faced significant criticism after it was three months late in releasing a required annual report on Start-Up's progress.

That report, which was ultimately released on the Friday evening ahead of the July 4 weekend, showed the program created 332 new jobs in 2015, on top of 76 in its first year. The legally required information on Start-Up was confined to a few pages and a footnote within a broader report on the state's economic development program.


$53 million dollars, 408 jobs - but the Cuomo administration defends the program, calling criticism of the program outsized and unfounded.

Let's see, $53 million divided by 408 is $129,901 a job - yeah, that's quite an achievement in economic development.

How anybody defends that kind of program with a straight face is beyond me, but that's what you have to do if you're a member of the Cuomo administration and you've got all these failures on your hands and independent officials and/or entities scrutinizing them (as opposed to the Cuomo shills Cuomo is used to having prop up his record for him.)

In addition to all of this, the criminal investigation into another Cuomo economic development program, the Buffalo Billion Project, continues apace, with one former Cuomo crony, Todd Howe, reported to have dropped a dime on other Cuomo cronies, including former top Cuomo aide Joe Percoco and SUNY Poly head Alain Kaloyeros.

When the indictments in that case come down, Cuomo will be the subject of another scathing expose into his economic development program expertise, this one at the hands of the U.S. Attorney for the Southern District, but I'm sure we'll get defense tactics out of Cuomo similar to the one's detailed above here.

Which brings me, finally, to my point about teacher evaluations here in New York State under Governor Cuomo.

Not so long ago, Cuomo claimed the old teacher evaluation system in New York State was too easy for teachers, not enough teachers were being declared ineffective and the whole thing needed an overhaul.

So, overhaul it got, though no one is quite sure what the overhaul has in it - Cuomo used the same numerical illiteracy he uses in his economic development programs for this new "scientific" teacher evaluation system.

And the best catch is, budget funds for schools are tied to the whole mess: 

School districts are still on the hook to evaluate every teacher, the results can still be used to make decisions about educators’ futures, and a 2015 law is about to require a host of new rules. And with just days left in this year’s legislative session, it’s becoming clear that Gov. Andrew Cuomo has little desire to see that change.

“This is a major issue that is right now going ignored,” State Senator Todd Kaminsky said. “People are saying it’s a time-out and it’s not.”

The strange situation came about because legislators passed a law overhauling the state’s teacher evaluation system last year to put more emphasis on state tests — and then education policymakers walked it back, banning state test results from being used altogether.

Lawmakers were responding to Cuomo’s view that too many teachers were earning top ratings. The state education department was listening to a growing movement of educators and parents upset about the growing influence of state tests.

In the end, the state education department decided teachers would get two evaluations. Next year, one will include state test scores but have no consequences. The real evaluations will use different metrics and can affect teacher tenure and firing.

Within those frameworks, districts and their teachers unions will have to agree on key details and those negotiations are ongoing.

“We are working with districts across the state to support their efforts as they complete their contract negotiations and to provide them as much flexibility as possible within the law,” State Commissioner MaryEllen Elia said.

But many had hoped that lawmakers would agree to scrap the universally unpopular 2015 law by now, making it unnecessary for districts to negotiate the details of the two new plans at all. So far, that hasn’t happened — and since there are just three days left in the legislative session, few think change is on the way.

“The big hangup is obviously the governor’s office,” said Assemblyman Edward Ra, who supports repealing last year’s law. “It really creates a little bit of a mess for everybody.” (Officials from Cuomo’s office did not say whether the governor would support changes to teacher evaluations.)
Now, it’s up to school districts like New York City to work out the details of new evaluation plans with their teachers unions. Barring a big change in the next few days, they are facing a tight timeline: They need an agreement by Sept. 1 or they risk losing state funds.
 
What a mess - a Cuomo-created mess - and yet, somehow this child-man remains in power, wasting hundreds of millions of dollars, issuing idiotic attacks and lame defenses when those expenditures are scrutinized, and continuing on to do more an more damage to the state.

One thing is pretty certain from all of this:

We have yet to get an independent audit of Cuomo's education policies that he's imposed on the state via the budget process (including teacher evaluations), but you can bet that if/when we get one, it will be as scathing as the ones we got on his economic development programs.

Monday, August 8, 2016

Cuomo Associate Has Cooperation Deal With Preet Bharara

Have been waiting post-conventions for some Preet news.

Here is an interesting bit of it:

The corruption probe of Gov. Cuomo’s two longtime associates has taken a critical turn with Todd Howe, onetime lobbyist and longtime Cuomo family confidant, signing a “cooperation agreement’’ with US Attorney Preet Bharara, a source close to the investigation told The Post.

The agreement promises Howe, whose ties to Cuomo go back three decades, “favorable treatment’’ and “leniency’’ in the event that he’s criminally charged, in exchange for full details of his lobbying activities on behalf of several major state contractors with senior Cuomo administration officials.
Those officials include Joseph Percoco, Cuomo’s closest friend and top aide who is currently senior vice president at Madison Square Garden, the source said.

Howe has been interviewed by federal prosecutors “about six times,’’ most recently about two weeks ago, when he “traded something that has to do with Percoco’’ and provided information on the influential, Albany-based, Whiteman Osterman & Hanna law firm, with which he had been affiliated, the source said. 
Howe, who worked for Cuomo when the current governor was federal housing secretary under President Bill Clinton, was described by the source as isolated from friends and family and disconsolate as Bharara’s investigation continues to unfold.
“He doesn’t have a job and no one from Andrew Cuomo’s entourage will even deal with him,’’ said the source.

Cuomo claimed that he didn't have much to do with Howe in the recent past, but Tim Knauss discovered that he was showing up at Cuomo functions like this one:

SYRACUSE, N.Y. -- A smiling Todd Howe was photographed, standing in the background, as Gov. Andrew Cuomo enthusiastically shook hands with the president of COR Development Co. during an October 2012 visit to Syracuse.

Four years later, Howe is no longer in the background. The Washington, D.C.-based lobbyist is front and center in a federal investigation of Cuomo's Upstate economic development projects, according to published reports.

Another person named in the federal probe is Joseph Percoco, Cuomo's former executive deputy secretary, who appears with Howe in the background of the 2012 photo from Syracuse.

The photo was taken during sunnier times for Cuomo's Upstate economic initiatives, years before U.S. Attorney Preet Bharara's investigation raised a cloud of suspicion.

The picture captures the role that Howe has apparently been playing for years in Syracuse economic development projects. Since the federal probe became publicly known, Howe's image has emerged as an affable guy to see for help in getting state funding or access to Albany power.

In the foreground of the 2012 photo, Cuomo shakes hands with Steven Aiello, president of COR, a Fayetteville company. COR is one of more than 20 companies about which Bharara has subpoenaed information from the Cuomo administration, according to reports.

Howe was also used as the "hand model" for Mario Cuomo's portrait in Albany:

ALBANY — Gov. Cuomo claims he barely knows a fired lobbyist under federal investigation — yet he was close enough to the family to be the secret hand model behind Mario Cuomo’s official portrait, The Post has learned.

The liberal legend Mario had scoffed for years at having his likeness hung among the Empire State’s other leaders, so Andrew went behind his back to have the work secretly created from a 1989 photograph.

But the artist demanded it include Mario’s hands clasped on his knee, even though the photo didn’t clearly show his mitts.

“The artist insisted that he needed to see the Governors [sic] hands to paint them,” Howard Glaser, Andrew’s former director of state operations and Mario’s senior advisor, wrote in a private Facebook post obtained by The Post.

Enter Todd Howe, who is being probed by the feds for lobbying work he did for three firms that are part of the Cuomo administration’s economic-development program, the Buffalo Billion.
He raced down to the painter’s Maryland studio and literally lent a hand.

“The artist painted Todd’s hands into the painting to complete the work. So, yeah, it’s actually Todd Howes hands you see painted in the final portrait!!!!! Classic!” Glaser wrote.

Peter Cutler, a former Cuomo spokesman who is also named in a federal subpoena, replied, “Todd told me, saying it was pretty nerve-wracking — as I’m sure we can all understand,” he wrote.

“Thank God GAMC [Governor Andrew Mark Cuomo] pushed to get the portrait done & installed.”

The artist, Simmie Knox — who also did official portraits for then-President Bill Clinton and First Lady Hillary — recalled Howe giving guidance on how they wanted the painting done, but clammed up when he found out that the lobbyist was under a federal probe.

Gov. Andrew Cuomo presented the painting to his dad as a birthday gift at a 2012 ceremony.

Cuomo distanced himself from Howe in May and in June, claiming he and Howe were not "close."

The record appears to contradict that Cuomo assertion.

Whether Howe is telling tales on Cuomo or just providing evidence against Percoco and the entities involved in state contracting, well, that's hard to say.

Fred Dicker's piece says Howe is promised "'favorable treatment' and 'leniency' in the event that he’s criminally charged, in exchange for full details of his lobbying activities on behalf of several major state contractors with senior Cuomo administration officials."

The phrase leaves "senior Cuomo administration officials" is the interesting thing there.

That may mean people around Cuomo, or previously around Cuomo (like Percoco.)

But, since Cuomo has been known to leak anonymously to the press under the moniker "a senior Cuomo administration official," it also could mean Cuomo himself.

Time will tell whether Cuomo is actually the target of all of this or if Bharara gets to his inner circle without touching Cuomo himself.

So far, we have no direct indication that Cuomo is in any legal jeopardy.

But you can bet that if the Cuomo people didn't already know that Bharara has Howe wrapped up with a cooperation agreement, they're not happy now that the news is in Dicker's column in the NY Post.

Because who knows what Howe is telling Bharara now that he's cooperating.

Tuesday, July 5, 2016

Cuomo Closely Tied To Politico Indicted For Bribery/Extortion

Fred Dicker reported Governor Cuomo's close ties to indicted Western New York power broker Steven Pigeon in yesterday's New York Post, noting that Pigeon was so tied to Cuomo last election cycle that the governor had him attending both election strategy and policy meetings:

Cuomo was so close to Pigeon — charged last week with nine felonies in connection with the alleged bribing of a state Supreme Court justice — that he gave him a key role in his 2014 re-election campaign despite objections from more important political aides like Joseph Percoco and Larry Schwartz, who considered him “untrustworthy and a little sleazy,’’ a source close to the campaign told The Post.

Cuomo directed Percoco, the focus of an ongoing probe by corruption-fighting US Attorney Preet Bharara, and Schwartz, Cuomo’s former chief of staff, and a handful of other trusted aides to allow Pigeon to attend key strategy meetings at the campaign headquarters from which virtually all other political operatives were excluded, said the campaign source.
“They objected, but the governor forced Pigeon on them,’’ according to the source. “At first Pigeon started to just show up at campaign strategy meetings, even though no one knew who had invited him to come.
“But it turned out that it was the governor who invited him to be there because the governor had come to believe that Pigeon was some kind of a political genius,’’ said the source.

Cuomo sought re-election obsessed with racking up a big vote in Buffalo and Erie County, Pigeon’s bailiwick, which he had lost four years earlier to Republican Carl Paladino, the source said.
Pigeon, the longtime Erie County Democratic chairman, “was the guy who Andrew was taking counsel from as to how to win in Buffalo this time around, but he was also taking his counsel on broader statewide issues,’’ the source said.

A second source said Cuomo was so close to Pigeon that in 2010, Gov. David Paterson refused to allow then-Attorney General Cuomo to name a special prosecutor to investigate election-related corruption charges being made against Pigeon — because he felt Cuomo “couldn’t be trusted to authorize a fair probe.’’

“Everyone knew at that time how close Cuomo was to Pigeon,’’ said the source.

Dicker writes that Cuomo was partly behind the 2009 Senate coup by turncoat Dems that Pigeon helped engineer, with Cuomo and Pigeon in close communication as the coup unfolded and control of the state Senate went to Republicans after turncoat Dems like Pedro Espada and Hiram Montserrate threw their lots in with Republicans (both men ended up in prison for corruption charges unrelated to the state Senate coup.)

Just as Cuomo has tried to distance himself from his former aide and lobbyist pal, Todd Howe (now squarely in the sights of federal prosecutors for corruption), Cuomo wants to distance himself from the now-indicted Steve Pigeon and make believe like he barely knows him.

But the record, when fully examined, shows Cuomo was as close as could be with both Pigeon and Howe (see here how Howe kept showing up at Cuomo functions and/or raising money for the governor simultaneous to the time Cuomo claims not to know what Howe was doing.)

Same goes for Pigeon - see the Buffalo News piece on Pigeon from 2013 as well as yesterday's Dicker piece.

You can bet if investigators look real close at the Cuomo relationships with his corrupt associates - Pigeon, Howe, former aide Joe Percoco, SUNY Poly head Alain Kaloyeros - they will find some interesting things, some of which may turn out to be criminal.

Whether they go that far, well, that's hard to say.

But Preet Bharara has warned executive branches in the state that malfeasance in the executive will be rooted out.

So Cuomo shouldn't get to comfortable thinking all he's got to do to keep himself from scrutiny is just keep repeated "I don't know these people, I don't know these people..."

Tuesday, June 14, 2016

Cuomo's Worried About The Corruption Probes

That's the takeaway I get from the two pieces out in the Wall Street Journal and the NY Times this morning about Joe Percoco and the Cuomo administration.

They're appearing simultaneously and have a very Cuomoesque slant to the corruption investigation (i.e., this is all the fault of former aides Todd Howe and Joe Percoco.)

They appear to have come directly from the Cuomo administration itself.

In addition, Fred Dicker has a piece out today saying the Scheiderman raid of SUNY Polytechnic was encouraged by the governor in order to throw SUNY Poly head Alain Kaloyeros under the bus:

Cuomo’s reaction to Bharara’s probe — which focuses in part on two of his closest friends and longtime associates, former aide Joe Percoco and lobbyist Todd Howe — was to push Kaloyeros aside and hire a special outside investigator, Bart Schwartz, to oversee the development projects going forward.

...

Bharara has been focusing his attention on Percoco and Howe — who were paid by major companies doing state business — and large state-hired construction firms that contributed to Cuomo’s re-election.

Schneiderman is focused more narrowly on possible bid-rigging and a violation of a state antitrust laws in relation to a SUNY Polytechnic dorm-construction project.

Schneiderman’s raid — to which some journalists were given notice even before investigators seized materials from an office once used by Howe — was described by a source close to SUNY as having been “clearly conducted with Cuomo’s encouragement’’ in an attempt to shift blame away from the governor to Kaloyeros.

“Cuomo and his people are trying to save their asses at the expense of everyone else,’’ the source said.

Kaloyeros did not return calls seeking comment. Cuomo spokesman Richard Azzopardi insisted the sources “clearly don’t know what they’re talking about’’ and denied that the governor was involved in trying to undermine Kaloyeros.

Dicker also says Schwartz is slowing down work in the Buffalo Billion Project "to a crawl" in order to scrutinize everything.

The Cuomo admin responded with this doozy:



Put it all together and what you have here is Cuomo going on the PR offensive in the Times and WSJ against Percoco and more evidence that Cuomo, despite talking more cautiously in public about Kaloyeros than he has about Percoco and Howe, looking to throw Dr. Nano under the bus as well.

This says he's very worried about what's going to come out of the Bharara probe and is going on the offensive once again to try and distance himself as much as possible from Percoco, Howe, and Kaloyeros.

Good luck with that, Andy.

The pattern - donors donate to you, get contracts/grants/subsidies/favors in return - remains.

Wednesday, June 1, 2016

Federal Probe Into Cuomo Administration Casts Wide Net

Yancey Roy in Newsday:

ALBANY — The federal probe of New York development initiatives is broader than the Buffalo Billion projects, the highest-profile piece of Gov. Andrew M. Cuomo’s upstate economic strategy.

Investigators have subpoenaed the governor’s office for records of communications with about 20 companies, a source confirmed, that were involved in projects in Buffalo as well as in Syracuse, Albany and the Hudson Valley. They’ve sought communications from high-ranking Cuomo officials, including Bill Mulrow, the governor’s secretary and top adviser; Jim Malatras, the director of state operations; and Gil Quinones, head of the New York Power Authority, the source said.

Beyond the governor’s office, investigators have subpoenaed agencies that regulate solar power and implement solar initiatives, the State University of New York Polytechnic Institute, which has been the guiding force in a number of state-backed high-tech ventures, and Empire State Development Corp., the state’s economic-development arm.

The named companies have been engaged in ventures ranging from a major solar-panel factory in Buffalo to a film hub in Syracuse to a dormitory in Albany to a power plant in Orange County. They also touch on a proposed “inland port” and redeveloping an old NYNEX building in Syracuse and loft apartments in Albany.

The companies, according to a source and to companies that have acknowledged separate subpoenas, include: six full-service development and real estate companies, three real estate firms, three engineering/architecture firms, two manufacturers, two lobbying firms, a power-plant company, a construction firm and a cellphone tower/communications company.

And the companies:


Cuomo has said repeatedly that the investigation is only focused on two of his former aides, Joe Percoco and Todd Howe, but given the multiple reports we have that the investigation is looking far and wide into Cuomo's economic development programs (see here and here, for another example), that Cuomo assertion is absurd.

In addition, there's a reported pattern of bid rigging in state contracts, with proposals written in such a way that only a specific contractor - always a Cuomo donor - can win them.

Subpoenas have gone out to the entities and individuals involved in those contractual relationships, and while it's possible that it was only Percoco and Howe pulling these shenanigans, given the number of subpoenas that have gone out, that seems unlikely.

A source close to the investigation told Fred Dicker that the public will hear something about all of this in July or August.

For now, Cuomo's got the public thinking he's an ethical prince, but given the scope and breadth of this investigation, it's very likely that when arrests come - and they will - Cuomo's going to have some very bad news cycles.

Monday, May 30, 2016

Public Will Hear Something On Cuomo Administration/Buffalo Billion Probe In July Or August

Buried at the bottom of the first item in Fred Dicker's column today is this:

While Bharara — whose ongoing probes of state government corruption led to the convictions of the two former leaders of the Legislature, Sheldon Silver and Dean Skelos — has refused to say when his investigation of Cuomo’s office will wrap up, one source close to the probe predicted, “The public will be hearing something in July or August.’’

The rest of the item is how Bharara has warned Cuomo's "independent investigator" into Buffalo Billion malfeasance, Bart Schwartz, from interfering in the federal probe of the governor's economic development programs:

US Attorney Preet Bharara has warned Gov. Cuomo’s “independent’’ investigator not to interfere with the federal corruption probe involving the Buffalo Billion project, related state contracts and two longtime friends of the governor, The Post has learned.

A source close to the criminal probe said the warning was blunt and direct and that Cuomo’s private-sector investigator, Bart Schwartz, conceded to several state officials that “he has been warned by federal authorities to stay away from anything’’ related to Bharara’s ongoing investigation.

“In meetings with state lawyers Schwartz and his people let it be known that they’ve been told to stay away from anything that Bharara is looking at,’’ said the source.

“Basically, what Schwartz is only doing is reviewing public documents and monitoring contracts and other things going forward, not investigating what went on in the past,’’ the source continued.

So, just as some of us thought when Cuomo announced Schwartz's hiring, the "independent" investigation being conducted by Schwartz is nothing more than a ruse to make it look like Cuomo's doing something about the malfeasance in his economic development programs.

Some of us also wondered if Schwartz was there to muck things up around the investigation, but Bharara's warning to stay away from his investigation pretty clearly lets Schwartz - and Cuomo - know that if there's any screwing around, they'll be hit with criminal charges for tampering, attempted cover-up, etc.

We have heard a few times in the past couple of weeks that the investigation into Cuomo's economic development programs and his associates has continued to widen, with subpoenas seeking ever more information connected to Cuomo's people and their doings.

But with the presidential election coming in November, Bharara's going to want to get this wrapped up soon.

If Dicker's right, July or August will be that time.

We haven't had any leaks yet that the governor himself is in the sights of investigators and I doubt very much Cuomo will go out in handcuffs without there being a couple of leaks first to indicate that's about to happen.

So, for now, I'd say the investigation may not reach as high as Cuomo, but given how the investigations continue to widen and how, at the center of all of this is the relationship between Cuomo's donors and the stuff they got in return for giving money to Cuomo, that's still a possibility.

Friday, May 27, 2016

SUNY Office Raided, Net Closes In On Cuomo Cronies


From the NY Times:

ALBANY — Agents from the state attorney general’s office conducted a search at the State University of New York Polytechnic Institute here on Thursday, scouring an office once used by a lobbyist as part of an inquiry into possible bid rigging.

Agents arrived with search warrants and looked through an office used by Todd R. Howe, who has past ties to Gov. Andrew M. Cuomo, a Democrat. Mr. Howe had worked as the president of the lobbying arm of Whiteman Osterman & Hanna, a prominent Albany law firm which had SUNY Polytechnic as a client. Agents also served a warrant to examine communications from Alain E. Kaloyeros, the school’s president.

Mr. Howe and Mr. Kaloyeros have recently emerged as central players in a multipronged federal investigation led by the United States attorney for the Southern District of New York, Preet Bharara, surrounding the Buffalo Billion, the governor’s signature upstate economic initiative. Mr. Howe was fired from Whiteman after news of the federal investigation broke last month.

The search — conducted by several agents, who looked into electronic files and removed at least two boxes of material — focused in part on a plan to build a dormitory near the university’s sleek campus. But according to an official with knowledge of the investigation, agents were also looking into other projects connected with SUNY Polytechnic, as well as several developers who had worked with the school.

They're looking at bid-rigging - that the proposal for a dormitory project was written up in such a way that only a Cuomo donor (Columbia Development, $195,000 to Cuomo since August 2013) could win it.

This would follow what appears to be an emerging pattern of rigging proposals for Cuomo donors, as happened with LP Ciminelli in the Buffalo Billion Project or NAH for a proposed for-profit charter school that got backdated under older rules that still allowed for for-profit charters.

Investigators are also looking at the relationship between Cuomo administration officials and COR Development, which gave the governor $325,000 through various individuals and entities and received $100 million in state contracts.

Something similar is happening with Cuomo's vaunted LaGuardia Airport redo, where Cuomo donors stand to do very well in plans set forth by the Cuomo administration, though there's no indication that investigators are looking at that - yet, at any rate.

Yesterday's raid suggests former Cuomo aide/Cuomo hand model Todd Howe is done for - it's only a matter of time before he's picked up and squeezed by the feds.

And since he acted as a "de facto chief of staff" to SUNY Poly guy Alain Kaloyeros and the feds are looking at Kaloyeros too, well, you'd have to think it's only a matter of time before the highest paid state employee gets picked up too.

Cuomo threw Howe and Kaloyeros under the bus this week, along with former aide/confidante Joe Percoco, saying that the the investigation was really limited to those individuals, but with news that the investigations by the U.S. attorney and the attorney general continue to widen (see here, here and here), that appears not to be the case.

There is still no evidence that this will reach as high as Cuomo, but here's the thing that should give some hope on that.

There's one string that links all of this disparate strands together and it is this: Cuomo donors gave money to Cuomo and got state contracts, grants, subsidies and/or other help in return.

This happened not once or twice but seemingly over and over and over.

Maybe Cuomo's got a firewall between himself and the rest of his cronies pulling these shenanigans, but he'd better hope it's a very strong firewall.

Because the authorities are looking not just at some corrupt individuals in basically a good system - they're looking at some corrupt individuals operating in a just-as-corrupt system.

And no pol has taken advantage of that system more than Cuomo, who had a huge war chest for his last re-election and even now is sitting on $16 million raised from dubious sources.

Saturday, May 21, 2016

Cuomo Caught In Photo With Lobbyist He Barely Knows


Governor Andrew Cuomo claims he barely knows Todd Howe, the lobbyist and former aide at the center of a federal investigation into corruption in Cuomo's economic development programs statewide.

And yet, there is Cuomo, along with lobbyist Todd Howe, back in 2012, at a function in Syracuse involving one of the companies that has been subpoenaed by the feds in the investigation, COR Development.

Also in the photo is Cuomo's former aide, Joe Percoco, also at the center of the federal investigation.

In case you're having trouble seeing, here's a close-up:



That's Howe on the right, Percoco on the left - like twin devils, exerting their corrupting influence on the good governor.

Or, more likely, the fish rots from the head and the corruption emanates from Cuomo, who surrounds himself with people who think and act like the rules don't apply to them because Cuomo himself thinks and acts like the rules doesn't apply to him.

Tim Knause of Syracuse.com found this photo and gives context for it all here:

SYRACUSE, N.Y. -- A smiling Todd Howe was photographed, standing in the background, as Gov. Andrew Cuomo enthusiastically shook hands with the president of COR Development Co. during an October 2012 visit to Syracuse.
...
The picture captures the role that Howe has apparently been playing for years in Syracuse economic development projects. Since the federal probe became publicly known, Howe's image has emerged as an affable guy to see for help in getting state funding or access to Albany power.
In the foreground of the 2012 photo, Cuomo shakes hands with Steven Aiello, president of COR, a Fayetteville company. COR is one of more than 20 companies about which Bharara has subpoenaed information from the Cuomo administration, according to reports.

...

The photograph, which comes from a public archive on Syracuse University's website, was taken Oct. 2, 2012, during the governor's tour of projects promoted by the Central New York Regional Economic Development Council. The council makes annual funding recommendations to the governor.

It's not clear why Howe was at the event. He is not among the 24 invited guests listed on the governor's official schedule.

Cuomo arrived that morning at Syracuse University in a state police helicopter, accompanied by Percoco and another aide, according to his official schedule. From there, they went to nearby Kennedy Square to begin the tour.

Cuomo stopped at the CNY Biotech Accelerator, the only new building at the former Kennedy Square public housing site. The biotech business incubator is a joint project of Upstate Medical University and SUNY College of Environmental Science and Forestry.

Neil Murphy, then president of ESF, recalls giving Cuomo a tour of the building that day. In the photo, Murphy and David Smith, then president of Upstate Medical, are looking on as Cuomo and Aiello shake hands.

Murphy said he did not yet know Howe in 2012 and does not know why he was at the event. Murphy said he first met Howe in 2014, when college officials met with COR to discuss plans for a $20 million state research facility to be built at the Syracuse Inner Harbor, where COR is the developer. Howe was a consultant to COR at that time, Murphy said.

Howe's association with COR's Inner Harbor project dates back at least to April 2012, when Howe accompanied COR to a meeting with officials of the state Thruway Authority, which then owned the harbor lands to be developed.
...

After touring the Biotech Accelerator building, Cuomo and other officials got a briefing on COR's plans to develop Kennedy Square. (Those plans have yet to be acted on.) Then they boarded a bus to tour other project sites, including St. Joseph's Hospital and the Inner Harbor.

For years, Howe was sought after by Syracuse developers and others looking for state money or access to the Cuomo administration.

Last year, Howe represented two successive developers, the Pemco Group and Carnegie Management, who were angling for a $2.5 million state grant to renovate the former Nynex Building in Syracuse. Bharara has subpoenaed Cuomo's records related to both companies, the Buffalo News reported. Company officials have not responded to requests for comment.

Howe also represented 3Gi CNYIP Inc., a company that is trying to develop a cargo transportation hub in Manlius. 3Gi was included in Bharara's subpoena to the governor's office, the Buffalo News reported. Company leader Eckhardt Beck said he was not happy with Howe's work for his company, but does not think Howe did anything improper while representing 3Gi.

The Wall Street Journal reported that Bharara is looking at whether Percoco received illegitimate outside income from companies doing business with the state, including COR. On a state disclosure form, Percoco reported between $50,000 and $75,000 in payments from COR during 2014, a year during which he left Cuomo's administration to run his re-election campaign. COR officials have repeatedly denied paying Percoco.

For more on the players in the federal investigation into Cuomo's economic development programs, contracting, donors and former aides and associates, see this handy guide at Syracuse.com.

On, and that photo of Cuomo, Percoco and Howe?

That wouldn't be the first time they were all together in recent years.

As Jimmy Vielkind reported, Howe "hosted" a fundraiser for Cuomo in December 2014 and guess who came with offerings for the Cuomo camapign?

That's right - COR Development execs:

ALBANY — While Gov. Andrew Cuomo has been downplaying his relationship with Todd Howe, a lobbyist at the center of a federal probe of his administration, records show that Howe was steering developers to contribute to the Cuomo campaign as recently as five months ago.

Howe, then a lobbyist for a subsidiary of Whiteman, Osterman & Hanna, hosted a dinner gathering with Cuomo on Dec. 14 in a small upstairs room of the Fort Orange Club, a baronial brick retreat across the street from Whiteman’s Albany offices and up the block from the state Capitol.

The governor walked in at 8:30 p.m., accompanied by two of his top aides, Bill Mulrow and Joe Percoco. He was met by Howe, who worked as his deputy chief of staff at the U.S. Department of Housing and Urban Development, executives from COR Development and Onondaga County Executive Joanie Mahoney, a key Republican ally of the administration, according to public records and four people familiar with the event.

The night’s $25,000 haul came in five checks from three COR executives, the wife of an executive and one of the company’s LLCs. They were deposited on Jan. 12. COR, a Syracuse-based firm, is building two research buildings for SUNY Polytechnic Institute at a business park the company owns in DeWitt.

While Howe’s work was only recently registered with state lobbying regulators, he was a paid adviser to both SUNY Poly and COR at the time of fundraiser. And Percoco, who has managed Cuomo’s political campaigns for more than a decade and shared an office with Howe during Cuomo's 2014 re-election effort, received at least $50,000 in consulting fees from COR that year — something Cuomo has said he did not know.

But that lobbyist under federal investigation for corruption?

Yeah, Cuomo doesn't know much about him or associate with him.

Thursday, May 19, 2016

Noticing The Not-So-Subtle Way Cuomo's State Contracts Seem Rigged For His Donors

The pattern for how Cuomo and his associates rig bids for his donors gets some scrutiny in this Albany Business Review piece looking at a SUNY Polytechnic contract for a dorm:

Richard Gefell is always looking for potential business opportunities, so when he heard last year SUNY Polytechnic Institute in Albany needed dormitories for 500 students near its campus, he was intrigued.

Gefell, director of business development at Purcell Construction Corp. in Watertown, signed a confidentiality agreement to get the project specifications, a requirement 12 other companies also fulfilled, according to documents released to Albany Business Review under the state Freedom of Information Law.

But his interest waned when he read the Request for Proposal, or RFP, and realized developers must have their headquarters or “major operations” in the Albany region. Watertown is 175 miles west, near Lake Ontario.

He was also dismayed to see the college preferred the dorms be built within a 10-minute walk of campus.

“The way the RFP was written, you could kind of tell they had already selected their site,” Gefell said. “The more research I did down there, there’s really one site that was suitable.”

He added, “They had very tight parameters on where the site could be located, and a very short window of time to secure it. It appeared there weren’t that many sites that met that criteria.”

Another builder said the deadline to submit proposals — just 43 days after the RFP was issued — made it impractical to get control of land near the campus on time.

“We thought someone had an inside track,” said the builder, who asked not to be identified because of concerns it could threaten future dealings with SUNY Polytechnic. “It was so highly specific. Unless you knew about it before the RFP was released, you would not have been in a position to respond.”

Only one developer submitted a proposal - Columbia Development.

If you guessed that Columbia Development was a Cuomo donor, well, you win a government contract from the Cuomo administration.

Here was Chris Churchill in the Times-Union back in September following some of the money around the Columbia Development/SUNY Poly dorm story:


SUNY Poly just awarded a contract for dormitory construction to Columbia Development, whose entities have given at least $175,000 to the governor's campaign fund since the start of 2014.

...

June 2014: The Times Union learns that Columbia is the developer for the so-called ZEN building, a $191 million project that is still under construction. Columbia will be also be a ZEN tenant.

July 2014: We learn that Columbia is buying homes on Loughlin Street, just south of the SUNY Poly campus. "Nobody here has any idea what that's about," Gretzinger said at the time.

March 2015: SUNY Poly issues a request for proposals to construct dorms. The school asks that the dorms be within a 10-minute walk of campus, and it requires that the developer be based in the Capital Region and have experience in dorm construction.

The requirements seemed perfectly suited for Columbia, but SUNY Poly head Alain Kaloyeros cautioned against jumping to conclusions. "It would be an erroneous assumption to presume at this point that we have a preferred developer or location," Kaloyeros said then.

September 2015: We learn that Columbia has, indeed, won the bid and will develop three dorms and parking on land that includes Loughlin Street. SUNY Poly is negotiating to buy the land from the developer. The project architect is EYP, which is headquartered on the SUNY Poly campus.

OK, so take that timeline and overlay it with what I found on Monday while searching the Board of Elections online records.

August 2013: A Columbia entity gives $25,000 to Cuomo's campaign fund. It's the company's first donation to Cuomo in the database.

June 2014: Two Columbia entities — Ridgehill LLC and 25 Monroe LLC — give $50,000 each. All together, Columbia and related LLCs give $115,000 to the governor over the course of 2014.

July 2015: Six separate Columbia entities give a total of $50,000 to the governor on just one day, July 13. All together, Columbia has given $60,000 so far this year, according to state records.

The three-year total: $200,000.

That's a significant amount of money — and it's probably an undercount of Columbia's contributions. It's so difficult to ferret out all the various Columbia-associated LLCs that it's likely I missed a few. Columbia President Joe Nicolla, who also is a SUNY Poly Foundation board member, could probably provide the precise number, but he declined comment Monday.

Churchill went on to note the similarities between the Columbia Development/SUNY Poly dorm story and the Buffalo Billion/LP Ciminelli story:

In Buffalo, a similar pattern was uncovered by the Investigative Post, a Buffalo-based online news outlet.

Jim Heaney, its editor, dug deep on the Buffalo Billion, a Cuomo economic development effort in which Kaloyeros is heavily involved. His reporting peeled away layers of secrecy to find that a request-for-proposals seemed written for LPCiminelli, which is owned by a major Cuomo donor.

This week we found what seems to be a similar RFP rigging from SUNY over a proposed for-profit charter school run by NHA - a Cuomo donor in the past.

I'm no lawyer, but I would imagine that this kind of pattern - RFP's seemingly tailored so only Cuomo donors can get the contract - will interest the U.S. attorney and his merry men and women looking into potential criminality, conflicts of interest and malfeasance in Cuomo's economic development programs.

It's Attorney General Schneiderman officially looking into this SUNY Polytechnic dorm proposal, but it's not like he and Preet don't talk, you know?

Cuomo Continues To Defend Buffalo Billion Project Despite Federal Investigation

Andrew Cuomo says the Buffalo Billion Project, currently under investigation by U.S. Attorney Preet Bharara,, is still the swellest thing ever:

It's a fine line for the governor to walk. While he has sought to distance himself from certain people being probed in connection with the "Buffalo Billion" economic development program, he also continues to defend it because it's a centerpiece of his upstate agenda.


Cuomo spoke to reporters in Rochester.

"Also remember, it is a vitally important program," the governor said. "It's doing great work in upstate New York. Buffalo has turned around dramatically. Job growth is way way up. Dr. Alain Kaloyeros' work has been extraordinary."


Kaloyeros helped develop the nanotechnology industry in upstate New York. He is currently under investigation, along with former lobbyist Todd Howe and former longtime Cuomo aide Joe Percoco, for possible bid rigging and inappropriate lobbying. No one has been charged.


But recognizing there are questions about their conduct, the governor has ordered his own internal investigation.


"These are questions at this point," Cuomo said. "I am the former attorney general. I got a lot of "tips," quote unquote, and I did a lot of investigations. Frankly, most investigations turned out to be nothing."

Oh, so few lines from the governor, yet so much here to contemplate.

Job growth is way up in Buffalo as a result of the Buffalo Billion Project?

Where, exactly?

Dr. Alain Kaloyeros' work has been extraordinary?

Surely it has, if by extraordinary he means extraordinarily secretive and non-transparent.

As for Cuomo's saying he got lots of tips as attorney general but the investigations never turned into anything, that was one of the big criticisms of Cuomo from back in the day - that he was only interested in investigations that would help him politically and garner big headlines.

In fact, Cuomo's record as attorney general was overall pretty mixed, as the NY Times reported in 2010, so maybe Cuomo ought not to compare the work of a U.S. attorney who successfully prosecuted the former assembly speaker and former state senate majority leader to his own lackluster days as A.G. when it comes to talking about the investigation into his economic development programs that has widened in the past few weeks and seen subpoenas go all over the state to different individuals and entities involved with the Cuomo administration and/or state business.

Cuomo's defense of his scandal-scarred administration gets weaker and weaker by the day.

Wednesday, May 18, 2016

Cuomo: Every Buffalo Billion Dollar "Sacred"

Try not to be drinking anything as you read the following response from Andrew Cuomo over whether he and his administration are on the defensive over the expanding corruption probe into the governor's economic development programs:

“We take any allegation very seriously, we’re not getting defensive,” Mr. Cuomo said today, recalling his own experience as New York attorney general. “What’s vitally important to me, not just as governor but as a person, is I want people to have full confidence and trust in the integrity of this government. Any relationship is only as good as the level of trust.”

...

The governor told the Observer that he had a “purely personal” conversation with Mr. Percoco just a few weeks ago. He also maintained that the state had treated every dollar it expended through the Buffalo Billion as “sacred” since the project’s inception, and argued the probe did not prove any kind of misconduct.


“The U.S. Attorney started an investigation for whatever reason, right? As attorney general, I started all sorts of investigations,” Mr. Cuomo said. “You get a tip, you get information, your job is to follow it up and conduct an investigation. It does not mean something bad happened. It means you have gotten a tip or some information that merits looking into. And that is a good thing.”

“All sorts of questions, all sorts of rumors. So, you get a tip, God bless you, follow it up. That’s just what I did as attorney general, that’s what the U.S. attorney should be doing,” he continued.

But his long, meandering answer also seemed to allow some malfeasance may have transpired.

“I’m realistic enough to know, in an operation this size, with this much money and this many players, it’s unrealistic to say ‘nothing bad is ever going to happen.’ People are venal. Some people have bad intent. Some people, frankly, are stupid. And things will happen,” he said. “What I can say is, ‘if and when something bad happens, we will have zero tolerance for any abuse. We will throw the book at anybody who does anything wrong.'”

Cuomo and his minions did everything they could to make the Buffalo Billion Project as opaque and secretive as possible.

Just ask Jim Heaney at Investigative Post, who was stonewalled at every turn by the Cuomo administration as he tried to report on Cuomo's economic development program for Buffalo (see here, here, here, and here.)

As for having "zero tolerance for any abuse," given the number of subpoenas that have gone out in the investigation, the project seems to have been rife with abuse, much of it coming from people very close to Andrew Cuomo himself (former aide Joe Percoco, former aide/lobbyist Todd Howe, SUNY Polytechnic's Alain Kaloyeros.)

So this whole performance by Cuomo was one big joke with laugh line after line.

The investigation appears to be very big and very wide.

Cuomo can try and bullshit the press and the public all he wants.

He's got an ambitious U.S. attorney who just watched the former state senate majority leader and the former assembly speaker get sentenced to prison time over corruption charges.

Somehow I doubt that U.S. attorney will be swayed by Cuomo's faux-earnest words.

Tuesday, May 17, 2016

Proposed For-Profit Charter School In Rochester Linked To Cuomo Corruption Probe

We've already had one education link to the ever-expanding Cuomo corruption probe, with former Cuomo aide Joe Percoco's wife, the ex-teacher, getting paid for some education consultant work from a company of interest in the federal investigation into Governor Andrew Cuomo's economic development programs.

We now have a second education link:

Maple Street Charter School, the for-profit charter school hoping to open in Rochester next year, has paid tens of thousands of dollars to a lobbying firm at the center of a rapidly expanding federal investigation into improper influence in Albany, state records show.

Maple Street's parent company, National Heritage Academies, has been using the Albany-based lobbying firm Whiteman Osterman & Hanna since at least 2007. A WOH subsidiary in Washington, D.C., was led until recently by Todd Howe, a former associate of Gov. Andrew Cuomo who is at the center of the probe by U.S. Attorney Preet Bharara.

The Buffalo News reported earlier this week that Bharara issued a subpoena to Cuomo's office requesting, among other things, all documents relating to Howe and WOH. That would likely include aspects of its lobbying on behalf of the Maple Street application.

...

The most recent disclosure report shows NHA paid WOH $12,000 in the last six months of 2015 for lobbying related to charter schools. The expected lobbying targets included Cuomo's office, the state Assembly and Legislature and Rochester Mayor Lovely Warren.

In the same six-month time period, NHA also paid $45,000 to Park Strategies, a powerful lobbying firm run by former U.S. Sen. Al D'Amato, R-N.Y.

NHA Chairman J.C. Huizenga has given more than $400,000 in campaign contributions in New York since 2005. Most of it went to Republicans, but he also has given $49,000 to a Cuomo fundraising entity.

For-profit charters are banned in New York State, in part because a previous NHA for-profit charter was such a problem, but NHA got this current proposal through a loophole - the SUNY charter board used one charter slot left over from 2007 to give the Maple Street Charter School the opportunity to open under the old, less onerous charter rules.

How did they get the loophole exception?

Could it be the lobbying through WOH or D'Amato's Park Strategies?

Could it be the $49K to Cuomo?

Could it be a mixture of all three?

You bet it could.

And then, just as a Buffalo Billion Project RFP was written so that only a Cuomo donor could win it and a SUNY dorm RFP was written so that only a Cuomo donor could win it, this RFP was written so that NHA was pretty much guaranteed to win it:

Because it predates the 2010 ban, that charter can go to a for-profit provider. The request for proposals was written in such a way that NHA was one of only two possible candidates; the request also was not publicized along with a concurrent, broader charter school proposal cycle.

Ah, such fun in New York - if you pay-to-play, you can achieve just about anything.

What an exciting message to teach the kids at the new NHA Maple Street Charter, with its emphasis on "character education."

But I'm guessing now that there's some sunlight on this deal, the Maple Street Charter School may not open as NHA hoped.