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..."

Cuomo Crony Scene Right Out Of Goodfellas

The NY Post says this scene is right out of The Sopranos, but I see Goodfellas as the better comparison:

ALBANY — Like a scene from “The Sopranos,” a political operative busted by the state Attorney General’s Office held secret meetings at his elderly mother’s house and had a campaign worker paid with grocery bags stuffed with cash, a former upstate prosecutor told The Post.

Steve Pigeon — a Buffalo-area Democrat — had a waterfront condo but the neighborhood was also home to a number of judges, so he conducted his shady business at his mom’s, according to former Erie County prosecutor Mark Sacha.

“It was like ‘The Sopranos.’ They wanted to hire this phone-bank guy to make calls for a candidate,” Sacha recalled.

“So, they go to his elderly mother’s house in a quiet suburban neighborhood in the middle of the night. This is where they agree to hire the phone-bank guy for $20,000, but the campaign account is drained so they arrange to deliver cash in grocery bags,” said Sacha, a former assistant DA who investigated Pigeon three years ago and who is now running for district attorney.

...

Twice, the operative was paid $10,000 stuffed in Tops Supermarket grocery bags, Sacha said.
“I’ll never forget this phone-bank guy telling me about meeting the donor [a Pigeon crony] having this ‘hoochie coochie’ girl with him,” Sacha said.

“I see no difference between these guys and organized crime, except these guys are corrupting elections,” Sacha said. 

Sources say Pigeon helped Cuomo navigate politics in Western New York and backed the governor’s unsuccessful first bid for the seat he now holds.

Through a spokesman, Cuomo denied Pigeon is a close ally.

Reminds me a little of this scene in Goodfellas where the boys make a late night trip to Tommy's mother's house (sans the not-quite dead Billy Bats, of course):

Buffalo Schools General Counsel Linked To Pigeon Bribery/Extortion Case

New details on the Steven Pigeon/John Michalek corruption case, with an education angle:

A new element from Michalek and Pigeon’s relationship emerged in court over the last two days – an extortion charge against Pigeon.

One of the favors Pigeon allegedly asked from Michalek was for the judge to appoint a young local attorney as a receiver. Appointment of a receiver to temporarily manage a business, property or other entity involved in a foreclosure action or some other litigation can be lucrative for an attorney, according to legal experts.

“Depending on the length and complexity of the litigation, a receivership can earn an attorney anywhere from a few thousand dollars to six figures,” one knowledgeable Buffalo attorney told The Buffalo News.

Michalek admitted in court that, in 2012, Pigeon asked him to appoint a local lawyer as a receiver in a case Michalek was handling. The attorney was a recent law school graduate and had not yet been approved by the state courts as a qualified receiver. Nonetheless, Michalek gave him the assignment.

“We pushed it through anyway … have to give them a spec reason etc. … will figure it out … John,” Michalek emailed to Pigeon in May 2012.

Later, according to state prosecutors, Pigeon pressured this receiver to hire some of Pigeon’s “cronies” to do some work on a property the receiver was overseeing. The receiver refused to hire the “cronies,” and Pigeon retaliated by taking $5,000 from the receiver by “extortion,” according to court papers.

That receiver was Edward A. Betz, a former Pigeon associate who is now general counsel for the Buffalo Public Schools.

While declining to talk in any detail about the receivership or the alleged extortion, Betz told The News: “My only involvement in this matter is that I was asked to violate my ethical responsibilities as a receiver, and I steadfastly refused to do that.”

While Betz confirmed that he was the attorney appointed to the receivership, he declined to address any further questions about the Pigeon case. Sources said he has cooperated with the state attorney general’s investigation.

Here's a fun question to ask: How did Betz get the Buffalo schools gig?

Here's how:

It was several months in the making, but it’s official: Rashondra M. Martin is out as general counsel for Buffalo Public Schools.

Edward A. Betz is in.

After a closed-door session lasting about an hour and a half Wednesday evening, the Buffalo Board of Education took only a matter of minutes to fire Martin and appoint Betz, who was recommended by Superintendent Kriner Cash.

The two separate resolutions were supported by board majority members Jason McCarthy, Carl P. Paladino, Patricia Pierce, Larry Quinn and Board President James Sampson. The actions were opposed by the other board members who were present – Sharon Belton-Cottman, MaryRuth Kapsiak and Barbara Seals Nevergold. Theresa Harris-Tigg was absent.

In the end, Martin, who was hired by then-Superintendent Pamela C. Brown, was fired effective immediately and Cash was given the green light to negotiate a contract with Betz to take over the position at an annual salary of $160,000, which is $33,000 more than Martin was making.

Prior to voting, Belton-Cottman, Kapsiak and Seals Nevergold said the termination seemed like “punitive action” against Martin, who had filed a civil rights complaint against Paladino with the state Division of Human Rights. It was filed after a February 2015 board meeting in which Martin was asked to give advice on a key matter of parliamentary procedure. Her response frustrated members of the board majority, including Paladino, who asked Martin, “How can you be so ignorant?”

Terminating Martin was not an act of retaliation, argued some of the majority members of the board, but rather an issue of incompetence.

Paladino said Martin failed to disclose pertinent and time-sensitive information to the superintendent and the board, and she has failed to cooperate with Cash.

Members of the minority bloc said hiring Betz gave the perception of favoritism because Betz has no experience in school board law or as a district counsel, and he will be paid more than Martin was. They also pointed out that Betz was Quinn’s campaign manager when he won his School Board seat last year, and represented McCarthy in a matter that went before the state Education Department.

Members of the majority bloc and Cash countered that Betz is a former assistant corporation counsel for the City of Buffalo, a former general counsel for the Erie County Water Authority, has extensive knowledge of state Civil Service Law and the Taylor Law and experience in public employee relations matters. 

I'm sure Betz's "extensive knowledge of state Civil Service Law and the Taylor Law and experience in public employee relations matters" was why Betz got the general counsel gig.

I mean, three and a half years out of law school is a lot of time, you know?

Here's one commenter on the Betz hire:

There is no doubt that Martin was incompetent and needed to go. However, what happened to hiring QUALIFIED candidates? This is yet another disappointing hire by the superintendent. He continues to hire every political hack that Quinn and Paladino send his way. (For the record, I supported Quinn and Paladino until they continued the nepotism that they vowed to correct.)

I challenge the Buffalo News and the Board of Ed to pull the resumes of the attorneys who applied for this job and then tell me that Betz, a lawyer with NO education law experience, is the man for the job. Moreover, look into HIS resume and I think you will find that his qualifications, as noted in this article, are inaccurate. It is clear that qualifications didn't come into play, as it was common knowledge that Betz had the job before it was even posted. I did a little research and Betz isn't some prize lawyer, every job he has had was given to him as a favor. Take this one for example: http://www.buffalonews.com/app...

As for the salary, while Martin clearly ended up not being the person for the job, she was more qualified and paid much less. Explain how that works?

Follow the link above and you'll find this:

Edward A. Betz, an attorney who has been active in Democratic political campaigns, was promoted last month on a temporary basis to serve as associate attorney at a salary of $117,877. Betz previously worked in the Law Department at Buffalo City Hall and has managed local political campaigns.

Pigeon only extorted $5000 from Betz?

Hell, the number of sweetheart gigs Betz was getting from his connections, he could have hit him up for so much more.

What a sewer New York is.

Cuomo Ally Pleads Not Guilty To Nine Count Felony Indictment (Update)

Niagara Gazette:

G. Steven Pigeon, a longtime Western New York political operative and former chairman of the Erie County Democratic Party, pleaded not guilty Thursday to multiple corruption charges filed in an indictment announced by New York State Attorney General Eric Schneiderman.

The 55-year-old political consultant has been charged with bribery in the second degree, a class C felony; bribery in the third degree, a class D felony; grand larceny theft by extortion in the third degree, a class D Felony; and six counts of rewarding official misconduct in the second degree, a class E felony.

Pigeon, who appeared in court with his attorney, Paul Cambria, entered his plea during an arraignment Thursday morning in front of State Supreme Court Judge Donald F. Cerio, Jr. who set bail at $10,000 cash or $20,000 bond.

Following the arraignment, Cambria met with reporters outside the courtroom where he said Pigeon vehemently denies any wrongdoing and looks forward to his day in court.

Pigeon's arraignment follows Wednesday's guilty plea from former State Supreme Court Justice John A. Michalek. The 65-year-old Michalek resigned from the bench after pleading guilty to various charges in what Schneiderman's office has described as a scheme that involved receiving bribes from Pigeon, and for filing a false document with the New York State Office of Court Administration when he appointed a receiver who had been suggested by Pigeon. Michalek admitted guilt to a pair of felonies, including bribe receiving in the third degree and offering a false instrument for filing in the first degree. In addition to entering the plea, Michalek submitted a letter of resignation to the chief administrative judge, effective immediately.

The charges stem from an ongoing public corruption investigation by the attorney general's office. Schneiderman is scheduled to hold a press conference this afternoon at his office in Buffalo to discuss both cases in greater detail.

The Buffalo News reported this morning that this case is not likely to end with only Michalek and Pigeon facing criminal charges:

Schneiderman, who investigated Pigeon’s activities based on original complaints about election law violations, emerged as the only prosecutor or official in New York State willing to take on the case. And according to a source familiar with the charge, more counts could be forthcoming. The source pointed out nothing in this week’s court proceedings yet addresses the concerns that led Schneiderman’s investigators, the State Police Bureau of Criminal Investigation and the FBI in May of 2015 to raid the homes of former Buffalo Deputy Mayor Steven M. Casey and Christopher M. Grant, former chief of staff to Rep. Chris Collins, R-Clarence.

For now, the state focuses its next steps on Pigeon, who has garnered complaints from political opponents and elections officials for many years over his controversial methods of raising money for independent political committees. Much more serious charges now face Michalek and Pigeon as a result of the original complaints, though those close to the case say more charges could still be pressed.

Pigeon's connections to Cuomo are well known and the governor's name even popped up in the indictment:

In March 2012, Michalek emailed Pigeon regarding a lawsuit pending before him, providing Pigeon with details concerning a motion filed by a non-party to the litigation seeking a protective order from a subpoena served by one of the parties.

In a written decision issued approximately two weeks later, Michalek denied the motion for a protective order, just as Pigeon had requested. Michalek then sent Pigeon an email with a copy of the decision attached and thanked Pigeon for “his efforts” on behalf of his first relative looking for a job, the complaint said.

Pigeon responded by email a short time later with an offer of additional assistance to the relative.
The complaint also indicated that on Dec. 10, 2012, Michalek emailed Pigeon concerning assistance in securing the Appellate Division appointment. Michalek wrote: “think there is a seat open in App Div … I applied … Normally I wouldn’t mention it to you … wonder if you could help.”

That same day, Pigeon replied: “I will start talking u up.”

The documents then indicate that on Jan. 8, 2013, Michalek wrote to Pigeon: “Unc Steve...How’d you do with the Gov??? ...” Later that day, Pigeon responded: “Bunch happening ... in albany now... Gov went well ... Talked u up ... Let’s have coffee soon.”

The complaint draws a clear link between Pigeon and Michalek’s desire for a gubernatorial appointment to the appellate court.

Pigeon had bragged that he was Cuomo's go-to guy in Western New York (this was the subject of a Buffalo News story back in 2013), so the Michalek appointment convo may not be the only time Cuomo shows up in this case.

We'll see.

No matter what happens with the Pigeon case, the Buffalo Billion case is still ongoing as well, with two former Cuomo aides and one current Cuomo associate facing what will almost certainly be criminal charges for corruption.

It is going to be an interesting summer waiting to see how all of this shakes out.

Today Cuomo went to the Catskills with Robert DeNiro.

Here is a transcript of what transpired:

@J__Velasquez @NYGovCuomo A Goodfellas re-enactment for Steven Pigeon: Keep your mouth shut, don't rat on your friends.

— rbe (@perdidostschool) June 30, 2016

UPDATED - 1:55 PM: Former assistant district attorney Mark Sacha insinuates  Attorney General Schneiderman is engaging in a cover-up by going after low-lying fruit with the corruption indictment while ignoring the election fraud crimes Pigeon was engaged in that could take down a whole swath of politicians:

Former Erie County DA Mark Sacha on Steve Pigeon https://t.co/J5B8HVU62V via @YouTube

— Buffalopundit (@buffalopundit) June 30, 2016

Would note also that Risa Sugarman, Cuomo's hack at the Board of Elections, referred the Pigeon case initially.

That itself is interesting, since it's doubtful that the independent in name only Sugarman, appointed by the governor, would initiate anything without Cuomo's OK.

In any case, a sordid affair exposing Erie County corruption right to the very core - the justice system, the political system, the election system.

More as we get it.

Cuomo Ally To Be Arrested For Bribery

Wheee!!!!!

A New York State Supreme Court judge pleaded guilty on Wednesday to bribery in connection with the state attorney general’s investigation into his relationship with a Buffalo-area political consultant with ties to Gov. Andrew Cuomo.

The judge, John A. Michalek, who also pleaded guilty to offering a false instrument for filing, said he would cooperate with the probe.

...

 A spokesman for the state courts system said that as part of his plea agreement, Mr. Michalek had resigned as a state Supreme Court judge.

Mr. Michalek has been under investigation for months by Attorney General Eric Schneiderman’s office in connection with his relationship with Steven Pigeon, a former Erie County Democratic chairman who has raised money and occasionally advised the governor on western New York-related matters.

According to the criminal complaint filed Wednesday, Messrs. Michalek and Pigeon had “an understanding” in which the judge “engaged in official conduct” that benefited Mr. Pigeon’s interests, which included lawsuits before the judge. Mr. Michalek received benefits from Mr. Pigeon, such as hockey tickets and assistance seeking judicial appointments for himself and jobs for his relatives.

Mr. Pigeon is set to be arrested on Thursday and indicted later that day, according to a person familiar with the matter. Mr. Pigeon’s attorney, Paul Cambria Jr., didn’t respond to a request for comment.

“Today’s proceedings expose a corrupt, multiyear scheme to use political favors to buy off a sitting state judge,” Mr. Schneiderman, a Democrat, said in a statement Wednesday.

Here are some previous Perdido Street School blog posts on Pigeon and Cuomo (here, here, here and here.)

And of course, there's the wonderful Buffalo News story in 2013 in which Pigeon brags he's Governor Cuomo's go-to guy in Buffalo:

If Gov. Andrew M. Cuomo seems obsessed with all things Buffalo in the months leading to his re-election campaign, those familiar with the governor point to his rejection by the voters of nine western counties in 2010.

Perhaps that’s why Cuomo is turning to G. Steven Pigeon, one of his oldest – and most controversial – Western New York allies, for fundraising, politics and even policy, according to several sources.

The former Erie County Democratic chairman is taking on more assignments from Cuomo and is telling political leaders here of a larger role, according to at least half a dozen highly placed sources with knowledge of the situation.

And while Cuomo spokesman Richard Azzopardi would not discuss Pigeon specifically when questioned by The Buffalo News, he did not deny the suggestion that Pigeon plays a role for the governor.

“The governor has many friends in Buffalo, from the mayor to the county executive to Sam Hoyt to Steve Pigeon,” Azzoparadi said.

Pigeon’s larger profile may also stem from other roles such as major campaign donor and the $50,000 check he presented to Cuomo’s birthday fundraiser at Manhattan’s Waldorf-Astoria Hotel last December.

Other Democrats say a senior official for the governor has told members of the Cuomo administration, including Hoyt, to have regular contact with Pigeon. They say that Pigeon has joined conference calls and meetings and that his involvement transcends politics to include economic-development matters.

One major Democrat said local officials “employed by the State of New York” are aware of Pigeon’s enhanced position for the governor.

“He’s going to be his top political person,” the Democrat said of Pigeon’s role for the governor in Western New York. “Steve is telling people that."

Now that Pigeon, the governor's top political person in Buffalo, is set to be arrested on bribery charges tomorrow, the governor may be wondering just what that top operative has to trade with the authorities for a lighter sentence.

Pigeon was in on Cuomo's economic development matters in Buffalo?

Gee, there might be something there, especially since those matters are already under investigation by US Attorney Preet Bharara.

This Pigeon arrest is just one strand of the investigations into the governor's world that Cuomo's got to worry about.

There are also the various strands in the Buffalo Billion and state contract mess, with offshoots to former aides Todd Howe and Joe Percoco and Cuomo's man at SUNY Poly, Alain Kaloyeros.

Bharara has warned that he's scrutinizing malfeasance in executive branches around New York.

Going to be an interesting, interesting summer.

Nerves Rattled Throughout New York State Over Steven Pigeon Investigation

Bob McCarthy in the Buffalo News:

This is a nervous Sunday for political types around Buffalo and New York State.

The same pols who read the lead story in Thursday’s editions of The Buffalo News – the one reporting state investigators were mining reams of tips from the emails of political operative Steve Pigeon – must now be asking questions of themselves.

“Did I ever send an email to Steve Pigeon?” so many New Yorkers are asking today. “Did I ever ask a favor? Did I ever write something to come back and haunt me?”

It’s a nervous Sunday all right.

That’s because Pigeon, the former Erie County Democratic chairman and self-appointed power broker, has been wheeling and dealing around these parts for 25 years. And whatever he has conveyed via email during much of that time now rests in the hands of state Attorney General Eric Schneiderman.

“This thing has an unbelievable number of tentacles,” said one source familiar with the situation.

Maybe that’s why it took almost a year for Schneiderman, the State Police Bureau of Criminal Investigation and the FBI to figure out just what they had when they hauled computers out of Pigeon’s waterfront condo (and the homes of fellow operatives Steve Casey and Chris Grant) back on May 28.

And if Pigeon is the saving type who kept all his emails, the Schneiderman crew has spent the last year reading some most interesting stuff.

According to McCarthy, we're probably looking at bribery charges against Pigeon and State Supreme Court Justice John Michalek.

But given the "tentacles" that emanate from Pigeon, it could get much, much worse for various politicians and  players around the state - including Governor Andrew Cuomo.

Just something to keep an eye on.

Fred LeBrun: Bharara Is Focused On Governor Cuomo's Office

Fred LeBrun in the Times-Union this morning:

A week ago Friday late in the day, Preet Bharara finally dropped the other shoe on Gov. Andrew Cuomo.

A flurry of subpoenas from federal prosecutor Bharara, the first served on the governor's office, left no doubt New York's chief executive and his extensive inner circle are now included in an ever broadening corruption inquiry involving the letting of state contracts and illegal conflicts of interest and lobbying.

...

We already know there's more than smoke here, in terms of improprieties by the governor's people, although the governor's office has been trying desperately to distance itself from both Howe and even Percoco.

There's been a blizzard of damage control to cover a flurry of subpoenas. A leak to a downstate tabloid to try to control the inevitable bad news from the onset broke the news.

A deliberate attempt to blur the focus of the inquiry from primarily the governor's office to include nine-month old inquiries into Buffalo contractors and the SUNY Polytechnic Institute followed.

That's all misdirection. Preet Bharara's focus is on the second floor of the Capitol.

When Cuomo has talked about the problem of corruption in the past, he always talks about it as if it has nothing to do with the executive branch and is only located in the legislature.

The news of the investigations into Cuomo's people - both current (Alain Kaloyeros at SUNY Poly) and former (Todd Howe and Joe Percoco) - exposes what jive that is.

As for the governor himself, well, there is certainly the appearance of corruption in his campaign fundraising, as Chris Bragg and Casey Seiler at the Times-Union reported this morning:

The federal subpoena received by Gov. Andrew Cuomo's administration in late April seeks information about any actions taken by certain Executive Chamber officials that might have benefited several major developers in New York, according to a person with knowledge of the subpoena.

The companies include Conifer Realty of Rochester, COR Development of the Syracuse area and Norstar Development, a company based in Ontario, Canada, that has significant operations in Buffalo. Several other companies were identified in the subpoena, which was issued by the office of U.S. Attorney for the Southern District Preet Bharara.

...

While each of the companies is engaged in a wide range of projects with state and local governments, all three are involved in the development of affordable housing — an industry that has quietly proven to be among the governor's most generous supporters.

Read the piece and you see the pattern - Cuomo gets donations, donors get subsidies, tax benefits and/or contracts.

Steve McLaughlin pointed out this morning that this pattern with Cuomo is not new:

Cuomo's corrupt #Pay2Play tactics are not new. It's all he knows. Want a state contract, tax break or grant? Pay him https://t.co/Cl8ZoTY3Io

— Steve McLaughlin (@SteveMcNY) May 8, 2016

Some people think that Bharara will never get as far as Cuomo, that Cuomo is too smart to get caught in all of this, even as his minions like Kaloyeros, Percoco and Howe appear to be going down (and maybe Steven Pigeon in Buffalo too), but Fred LeBrun writes that is still to be determined:

After two terms of watching how this governor works, in the shadows, with as little accountability as he can get away with, it is small wonder the culture he's created hasn't caught up with him earlier.

And, it's hard to imagine a notorious micromanager like Andrew Cuomo being caught totally blind by the doings of his brother Joseph, and very old friend Todd. That just doesn't pass the sniff test. Again, to be determined though.

And just in case you aren't convinced that Preet Bharara has expanded his probes beyond the legislature, well, there was this warning from the U.S. attorney a few weeks back:

U.S. Attorney Preet Bharara issued an executive warning Tuesday, making clear that his push to clean up corruption isn’t limited to the state Legislature.

“We will keep looking hard at corruption in our legislative branch, as we have been,” Bharara said during a keynote speech at Common Cause New York’s annual gala at the University Club in Midtown. “But not just there: in the executive branch, too, both in city and in state government.

“Executive offices in government are far from immune from the creeping show-me-the-money culture that has been pervading New York for some time now.”

Given how many stories there are of Cuomo donors getting contracts, grants, tax breaks, subsidies or even vetoes around the same time they're giving money to the governor, at the very least the appearance of a show-me-the-money culture pervades Cuomo's administration.

Whether Bharara can connect any of this to Cuomo, as LeBrun writes, that's to be determined.

But make no mistake - that's exactly what Bharara is trying to do.

He said as much back in April.

Cuomo Ally Is Target Of Grand Jury Probe

Steve Brown from WGRZ:

BUFFALO, NY-- 2 On Your Side has learned a special grand jury will meet Monday to consider evidence in a long-running political corruption probe.

The investigation appears to be targeting long-time political power-broker Steve Pigeon.
This all began last May,  when Pigeon's condo and two other homes were searched by authorities.

After months with no new reported developments, it appears the investigation is now  accelerating.
Just this week, news broke that State Supreme Court Judge John Michalek has been questioned by investigators.

The Buffalo News has reported the investigation centers on whether Michalek asked Pigeon for help securing a job for a relative, at the same time a Pigeon associate had a multi-million dollar case pending before the judge.

Cuomo link to Mr. Pigeon:

If Gov. Andrew M. Cuomo seems obsessed with all things Buffalo in the months leading to his re-election campaign, those familiar with the governor point to his rejection by the voters of nine western counties in 2010.

Perhaps that’s why Cuomo is turning to G. Steven Pigeon, one of his oldest – and most controversial – Western New York allies, for fundraising, politics and even policy, according to several sources

The former Erie County Democratic chairman is taking on more assignments from Cuomo and is telling political leaders here of a larger role, according to at least half a dozen highly placed sources with knowledge of the situation.

A total of about 10 people interviewed for this article did not want to be identified, citing Pigeon’s controversial history and the governor’s penchant for keeping such matters within a close circle of advisers. And some say they doubt Pigeon’s claims of closer ties to the governor.

But there may be no more telling sign of a key role for Pigeon than his new and close relationship with former Assemblyman Sam Hoyt, the regional economic-development official from Buffalo who represents the governor in many matters here.

Pigeon and Hoyt personified political enmity during their respective days as party chairman and assemblyman, but observers now say the mere fact that the longtime archfoes are working together for Cuomo’s interests is significant.

Wheeeee!!!!

Four Cuomo associates and/or cronies under investigation by either the feds, the state attorney general or both (Pigeon, Alain Kaloyeros of SUNY Poly and two former aides, Joe Percoco and Todd Howe.)

Doesn't end, does it?

Cuomo's Buffalo Billion Project: Rigged Bidding, Hidden Process

Now that we have a report that US Attorney Preet Bharara is looking into Cuomo's Buffalo Billion boondoggle, it behooves us to go back and look at the expose the Democrat and Chronicle did on it back in June:

The Buffalo Billion program championed by Gov. Andrew Cuomo is a bold and costly experiment in economic development that is beset by secrecy and politics, and banking on a company with a history of losing money.

The program — hailed in Buffalo but resented across much of the rest of New York — has been promoted as both a catalyst for rejuvenating the western New York economy and a model for other upstate regions.

But the management of the Buffalo Billion by the Cuomo administration has raised eyebrows — and concerns — in some quarters.

Consider:

•One of Cuomo's largest campaign contributors from the Buffalo area has been awarded contracts to develop two of the three facilities that will house companies recruited to set up shop in Buffalo. The state's original solicitation for a developer to build a massive solar panel manufacturing plant included a requirement that might have limited the pool of respondents to just one firm, LPCiminelli, whose owner has contributed $96,500 to Cuomo's campaign during his two races for governor. The state later relaxed the requirement, but awarded the contract to Louis Ciminelli's firm anyway.

•The state development corporation managing the Buffalo Billion has taken up to a year to release public records that, among other things, detail how Ciminelli and other developers were selected. Documents detailing how much developers are getting paid have been redacted to remove payment figures. One of Cuomo's lieutenants went so far as to liken a reporter's efforts to obtain records under the state Freedom of Information Law to terrorism.

•The state is making its biggest investment — $750 million — to build a solar panel manufacturing plant for SolarCity despite that company's mounting financial losses and legal problems. SolarCity lost a record $375 million last year and is the subject of a federal investigation considering its receipt of stimulus funds.

I know there are many readers out there skeptical that Preet Bharara is going to go after Andrew Cuomo or that the Obama administration (which would have to sign off on such an effort) would allow it.

I share that skepticism, especially after VP Joe Biden's recent bromance with Cuomo.

That said, the Buffalo Billion project doesn't pass the smell test - they rigged the bidding process for a Cuomo donor, then when called on that rigging, tweaked the process and handed the project over to the donor anyway.

They ignored FOIL request for documents related to the bidding process, then compared a reporter's attempts to get those records as "terrorism". 

Even then, they released redactred records to hide stuff.

One of the companies involved in the project is under a federal investigation already for possible misue of stimulus funds and that same company lost hundreds of millions of dollars last year.

Something stinks here, that's for sure.

Whether the stink reaches as high as Cuomo, well, that remains to be seen.

But between the federal investigation into the Buffalo Billion project and the investigation into Steven Pigeon, the reputed go-to guy for Cuomo in Western New York (see here and here), I bet there's some concern within the administration about where all of this goes.

Preet Bharara Expands Corruption Probe To Cuomo's Buffalo Billion Boondoggle

It's been a few months since we got a leak out of the US attorney's office regarding corruption - this one's a doozy:

Manhattan US Attorney Preet Bharara has expanded his anti-corruption crusade to the far western edge of the state — investigating Gov. Cuomo’s controversial Buffalo Billion revitalization project, The Post has learned.

The probe of Cuomo’s pet project is the first to touch his office beyond Bharara’s investigation of the governor’s shutdown of the Moreland Commission to Investigate Public Corruption last year.

The new investigation is focused on the multimillion-dollar contracts awarded to build facilities for high-tech, drug-development and clean-energy businesses, a source familiar with the probe told The Post.

Bharara’s office has slapped several firms with subpoenas in recent months, the source said.

“It’s a comprehensive look at the bidding process,” the source said.

“They’re looking at communications between contractors and state officials.”

Bharara’s probe extends some 250 miles beyond the boundaries of his district, the Southern District of New York, which is headquartered in Manhattan and includes The Bronx and six suburbs north of the city.

First we had leaks about Shelly Silver - Silver got indicted.

Then we had leaks about Dean Skelos - Skelos (and son) got indicted.

Now we have leaks that the feds are investigating state officials over the Buffalo Billions project.

If the pattern continues, well, you know how this ends...

Here are some details:

Cuomo announced the 10-year Buffalo Billion program in his 2012 State of the State speech, saying it would be modeled on the $1 billion-plus program to spur nanotech research and draw semiconductor manufacturers to the Albany region.

One of the plan’s key projects is construction of a $750 million solar-panel factory along the Buffalo River. It will be run by SolarCity, a power provider chaired by Elon Musk, a co-founder of PayPal and CEO of the Tesla Motors electric-car company.

Other elements of Cuomo’s plan include construction of the Buffalo Medical Innovation and Commercialization Hub facility at the Buffalo Niagara Medical Campus, and redevelopment of a downtown Buffalo office tower into a headquarters for IBM and other high-tech firms.

A report this year by the nonprofit Investigative Post blasted Buffalo Billion as a “costly experiment in economic development that is beset by secrecy and politics.” The report said that requests for records under the state Freedom of Information Law were ignored until a lawsuit was filed and that the documents released were stripped of “key information,” including payments to developers.

The report also revealed the developer of two Buffalo Billion buildings is Louis Ciminelli, who contributed $96,500 to Cuomo’s two campaigns for governor.

At one point, the request for proposals to build SolarCity required applicants to have “over 50 years of proven experience” in construction in around Buffalo, which, the report said, excluded any company except Ciminelli’s.

The requirement was changed to 15 years, but his company, LPCiminelli, got the job anyway.

The report also said McGuire Development donated $25,000 to Cuomo’s campaign three months after scoring the technology-hub construction job.

There's been more Buffalo/Cuomo funkiness in the past few months.

Former Erie County Democratic Chair Steve Pigeon, a Cuomo "advisor," was raided in the spring over alleged corruption:

State and federal investigators Thursday searched the homes of three Western New York political operatives – confidants to the New York governor, Buffalo mayor and a member of Congress – sending shock waves across state Democratic and Republican party circles.

The investigation of G. Steven Pigeon, Steven M. Casey and Christopher M. Grant appears focused around an independent political committee called the WNY Progressive Caucus, which has ties to Pigeon. Investigators appear interested in the financial activities of the caucus and its ties to several political campaigns in recent years. The probe also includes questions about “elevated” payments for advertising, mailings and other political activities, a law enforcement official said.

The raids targeted three men who have been integral players in local and statewide politics, and that fact was not lost on party insiders in Buffalo and Albany.

Pigeon has vast political connections, from Gov. Andrew M. Cuomo to billionaire businessman B. Thomas Golisano.

Casey – dubbed the “shadow mayor” – was until last year the first deputy mayor under Buffalo Mayor Byron W. Brown.

Grant is chief of staff for Rep. Chris Collins, R-Clarence.

Here's a good introduction to the Pigeon raids and a comprehensive look into the whole Pigeon mess in Buffalo.

There's also a Pigeon/Moreland connection:
 

In the Erie County Sheriff’s race, the WNYPC candidate Dick Dobson embarrassed Bert Dunn on primary night. Dunn decided to waste his money and run on a tailor-made third party line, unsuccessfully. WNYPC abandoned Dobson, however, during the general election. There was an unaccounted-for $20,000 that was paid to “Buying Time, LLC” for Dick Dobson ads, which was later claimed to have been a payment reportedly made by AJ Wholesalers directly to Buying Time on the WNYPC’s behalf.  

Buying Time is associated with Governor Andrew Cuomo. So associated, in fact, that the New York Times reported that it was sniffing around Buying Time that prompted Cuomo’s office to begin interfering with the work of the shortly-thereafter-disbanded Moreland Commission on Public Corruption.

Kathy Hochul's husband, Bill Hochul, reportedly recused himself from the Pigeon investigation because of his wife's connections to some of those involved in the case:

U.S. Attorney William J. Hochul Jr. has recused himself from an investigation into the political activities of G. Steven Pigeon, sources close to the probe told The Buffalo News on Friday.

Because of the potential political ramifications of the probe – including the fact that Pigeon has served as a top political adviser to his wife’s boss, Gov. Andrew M. Cuomo – Hochul removed himself from the case weeks ago and named his top assistant – James P. Kennedy – to oversee the investigation and coordinate with the state Attorney General’s Office, the sources said.

The U.S. Justice Department requires a prosecutor to recuse himself or herself from a case when “a conflict of interest exists or there is an appearance of a conflict of interest or loss of impartiality.”

The investigation – which became public knowledge Thursday with the execution of three search warrants – is focused on the political activities of Pigeon, former Democratic Party chairman for Erie County; Steven M. Casey, a Democrat and former deputy mayor of Buffalo; and Christopher M. Grant, a Republican who serves as chief of staff for Rep. Chris Collins, R-Clarence.

Before we get too excited about the Post story that state officials are being investigated over the Buffalo Billion project, we should note that the report is coming in, you know, the NY Post.

That said, the NY Post independently verified an account from WNBC in January that Bharara was going after Dean Skelos.

A Skelos spokesperson had decried the WNBC report as thinly sourced.

The Post verified it and the WNBC report turned out to be accurate - Skelos and son got nailed a couple of months later.

So, we'll see how this goes and if the pattern holds.

Up until now, it's been leaks, indictment, leaks, indictment...

Now we have a new leak, this one involving state officials and Cuomo's Buffalo Billion boondoggle.

An interesting development, to say the least.

Cuomo Donations From Western NY Politico Under Criminal Investigation Subject Of Probe

From the Buffalo News:

All of G. Steven Pigeon’s recent political contributions – including those to Gov. Andrew M. Cuomo – are “fair game” in the probe of his fundraising activities, according to a source familiar with the state investigation.

Investigators are focused on the origin of about $150,000 in contributions by the Buffalo political operative, mostly in 2012 and 2013, said the source, who asked not to be identified because of the sensitivity of the situation.

...

Pigeon, 54, who served for seven years as Erie County Democratic chairman, remains the central figure in an investigation into possible corruption that prompted agents of the FBI, State Police and state Attorney General’s Office to search his waterfront condominium May 28. The same agencies also executed simultaneous search warrants at the homes of Steven M. Casey, former first deputy mayor of Buffalo, and Christopher M. Grant, chief of staff to Rep. Chris Collins, R-Clarence.

...

While Pigeon has always insisted that any money donated to political causes and candidates stemmed from his own funds, new questions surround his ability to make large contributions following revelations that he owes the federal government more than $244,000 in back taxes.

...

New interest is focused on at least two significant contributions or loans that Pigeon made in late 2013 – including donations of almost $100,000 to the caucus and $54,000 to Cuomo, especially a $50,000 contribution in connection with the governor’s 2012 birthday bash at Manhattan’s Waldorf Astoria Hotel.

...

In February, Pigeon revealed his tax returns to The Buffalo News to indicate a more than healthy income in the mid-six figures. But the contention that he was financially capable of such hefty contributions occurred 11 months after he negotiated a tax repayment plan with the Internal Revenue Service as he was incurring even more tax problems with the federal government.

Investigators are now curious about his ability to finance such significant contributions to Cuomo and the caucus, according to several sources.

The source familiar with the investigation said Pigeon’s connection to the Cuomo campaign also interests investigators.

...

Several sources confirm that Pigeon was involved in Cuomo’s Western New York campaign, including participating in periodic conference calls coordinated by Joseph Percoco, a longtime top aide to the governor.

You can see more here about the Pigeon/Cuomo connection.

Looks like Cuomo's now got to fight a two front war against criminal probes - the feds in the US attorney's office looking into Moreland tampering and Albany corruption and now state investigators out of the AG's office running a probe into Cuomo's Western New York political crony.

Political Adviser, Confidant To Cuomo, Is Target Of Criminal Investigation And Law Enforcement Search

From the Buffalo News:

State and federal investigators Thursday searched the homes of three Western New York political operatives – confidants to the New York governor, Buffalo mayor and a member of Congress – sending shock waves across state Democratic and Republican party circles.

The investigation of G. Steven Pigeon, Steven M. Casey and Christopher M. Grant appears focused around an independent political committee called the WNY Progressive Caucus, which has ties to Pigeon. Investigators appear interested in the financial activities of the caucus and its ties to several political campaigns in recent years. The probe also includes questions about “elevated” payments for advertising, mailings and other political activities, a law enforcement official said.

The raids targeted three men who have been integral players in local and statewide politics, and that fact was not lost on party insiders in Buffalo and Albany.

Pigeon has vast political connections, from Gov. Andrew M. Cuomo to billionaire businessman B. Thomas Golisano.

Casey – dubbed the “shadow mayor” – was until last year the first deputy mayor under Buffalo Mayor Byron W. Brown.

Grant is chief of staff for Rep. Chris Collins, R-Clarence.

The Cuomo connection:

Last year, Pigeon also gave $54,000 to Cuomo’s re-election campaign. He and Cuomo have been tight for years, and the governor has sent signals to people in and out of government in Western New York that Pigeon should be considered his go-to political point person from the area.

The Cuomo administration had no comment Thursday.

More on the Cuomo/Pigeon connection from the Buffalo News in October 2013:

If Gov. Andrew M. Cuomo seems obsessed with all things Buffalo in the months leading to his re-election campaign, those familiar with the governor point to his rejection by the voters of nine western counties in 2010.

Perhaps that’s why Cuomo is turning to G. Steven Pigeon, one of his oldest – and most controversial – Western New York allies, for fundraising, politics and even policy, according to several sources.

The former Erie County Democratic chairman is taking on more assignments from Cuomo and is telling political leaders here of a larger role, according to at least half a dozen highly placed sources with knowledge of the situation.

A total of about 10 people interviewed for this article did not want to be identified, citing Pigeon’s controversial history and the governor’s penchant for keeping such matters within a close circle of advisers. And some say they doubt Pigeon’s claims of closer ties to the governor.

But there may be no more telling sign of a key role for Pigeon than his new and close relationship with former Assemblyman Sam Hoyt, the regional economic-development official from Buffalo who represents the governor in many matters here.

Pigeon and Hoyt personified political enmity during their respective days as party chairman and assemblyman, but observers now say the mere fact that the longtime archfoes are working together for Cuomo’s interests is significant.

“The only way Sam would even talk to him is because he’s told to,” said one local Democratic leader who is familiar with the situation and asked not to be identified.

Also telling is that Hoyt would not comment for this article. Neither would the normally talkative Pigeon.

And while Cuomo spokesman Richard Azzopardi would not discuss Pigeon specifically when questioned by The Buffalo News, he did not deny the suggestion that Pigeon plays a role for the governor.

“The governor has many friends in Buffalo, from the mayor to the county executive to Sam Hoyt to Steve Pigeon,” Azzoparadi said.

Pigeon’s larger profile may also stem from other roles such as major campaign donor and the $50,000 check he presented to Cuomo’s birthday fundraiser at Manhattan’s Waldorf-Astoria Hotel last December.

Other Democrats say a senior official for the governor has told members of the Cuomo administration, including Hoyt, to have regular contact with Pigeon. They say that Pigeon has joined conference calls and meetings and that his involvement transcends politics to include economic-development matters.

One major Democrat said local officials “employed by the State of New York” are aware of Pigeon’s enhanced position for the governor.

“He’s going to be his top political person,” the Democrat said of Pigeon’s role for the governor in Western New York. “Steve is telling people that.”

Pigeon’s role now fills a vacuum created by the Cuomo team’s lack of a relationship with the Erie County Democratic organization headed by Chairman Jeremy J. Zellner, according to many sources. And because the governor remains determined to win the one region where voters rejected him in 2010, Pigeon’s influence will be especially large, they say.

It all occurs as Cuomo looks to build his own local organization apart from Erie County Democratic Headquarters, hoping to win as much of New York State as possible next year to bolster a potential presidential bid.

“The governor is clearly fixated with Western New York; he wants to do better here,” said another Democrat familiar with the situation. “But he’s not going to deal with Zellner. So where does he go?”

“The governor clearly doesn’t have any use for the current Erie County Democratic Party organization,” said a state lawmaker who asked not to be identified, indicating that the situation opens possibilities for political operatives such as Pigeon to get the governor’s ear.

Pigeon’s admittance into Cuomo’s confidence should come as no surprise.

As Erie County chairman in 2002, he emerged as one of the few state leaders who endorsed Cuomo’s first but ill-fated bid for governor. The majority of local and statewide party leaders backed then-State Comptroller H. Carl McCall in a hotly contested primary.

And as Cuomo faced several opponents in the 2006 Democratic primary for state attorney general, Pigeon backed him over Denise E. O’Donnell, the former U.S. attorney for Western New York. While most Erie County Democrats supported the hometown candidate, Pigeon went with Cuomo at significant personal expense. O’Donnell is the mother of Pigeon’s longtime political associate Jack O’Donnell.

This is something to keep an eye on.

Cuomo desperately wanted to win Buffalo and surrounding counties in his re-election bid last year and handed out lots of state largesse to win people over to his cause.

That state largesse became known as the "Buffalo Billion" and was meant to be used for economic development in the region - though the Cuomo administration has worked hard to keep who was getting that money secret.

G. Steven Pigeon was his point guy in Buffalo - the guy with the "enhanced position" with the governor.

You can bet some of the "Buffalo Billion" flowed through him.

Why is Cuomo fighting to keep the "Buffalo Billion" recipients secret?

Again, something to keep an eye on - another burgeoning Cuomo scandal.