Perdido 03

Perdido 03
Showing posts with label Sony. Show all posts
Showing posts with label Sony. Show all posts

Sunday, May 10, 2015

Fred LeBrun: Is Preet Bharara Saving The Best For Last?

Fred LeBrun in the Times-Union:

The timing of the Skelos charges by the feds is interesting. We in the media heard months ago, even before a New York City television station went public with it, that the feds were investigating Skelos and his son.

Every politically connected individual on Long Island had to know it was happening, which means Skelos had to know, and so did Gov. Andrew Cuomo.

Logically, then, all the while the governor's so-called ethics package was being batted about in the Legislature, the principals knew that at some point most probably the hammer would fall and make them all look foolish — again.

Perhaps that explains why the governor didn't do much of a victory dance over what half-baked ethics changes he did get passed, except to once again overstate their significance.

Of course, there may be another reason for Cuomo to button his lip. Conspicuously unresolved in the minds of many is whether the same federal prosecutor who has taken down both Silver and Skelos from on high is saving the best for last. We know of Bharara's displeasure with the way the governor's Moreland Commission looking into corruption was hastily disbanded.

With Skelos going down, the cheese stands alone.

Cuomo stands alone, but as I pointed out yesterday, there's plenty for the feds to investigate:

The Glenwood connections (which Cuomo either misremembered or lied about in a public statement last week.)

The bankster/bond deals.

The News Corp book deal.

The Sony connection. 

The Hollywood connection.

The investigations into Cuomo donors Cuomo's office sought to curtail during the Moreland Commission.

The fishiness of the deal he made with Silver/Skelos to shut down Moreland in return for a lukewarm ethics package that changed little in Albany.

The Moreland Commission tampering, including whether Cuomo or anyone from Cuomo's office directed commissioners to not refer criminal cases to the DA.

The post-commission tampering, including the drafting of statements by Cuomo's office for former Moreland Commissioners to issue in favor of Cuomo's handling of the commission.

That's a pretty extensive list of corruption charges.

Cuomo may stand alone, but he had better not get to cocky about it.

Cuomo helped, in part, take down a governor when he was attorney general and used that as a stepping stone to his current office.

You can bet that the current US Attorney for the Southern District, an ambitious man with a penchant for publicity who made his bones with Cuomo-enemy Chuck Schumer, wouldn't mind making a similar a career move for himself.

Saturday, May 9, 2015

Let's List The Quid Pro Cuomo Deals (UPDATED - 12:05 PM)

Let's see, how many examples of Quid Pro Cuomo deals do we have in the public record?

The IBTimes reported Cuomo took $132,000 in campaign donations from JP Morgan Chase, Bank of America and Citigroup and gave them $3 billion in bond business in return.

The IBTimes reported Cuomo received at least $700,000 in compensation from News Corporation for his memoir, All Things Possible, "after Cuomo’s administration backed a series of state initiatives that benefited the media giant."

All Things Possible has sold slightly more than 3,000 copies.

Hacked Sony emails showed "Cuomo’s campaign pressing Sony to deliver $50,000 worth of donations before a July 15, 2014 campaign filing deadline as he ramped up his re-election campaign last summer."

Film industry executives have donated $900,000 to Cuomo since 2011 while the film industry receives $421 million a year in tax breaks from New York State.

Cuomo's quid pro quo relationship with the real estate industry was revealed last summer in the NY Times' Moreland Commission expose:

The Real Estate Board of New York’s power and influence over state government is, as a well-known Democratic operative put it, “about as new as hieroglyphics.” Albany politicians often transition into lucrative real estate careers, and Governor Andrew Cuomo is a tuxedo-clad fixture at REBNY’s annual gala. But an investigative story in the New York Times yesterday laid out the extent of the industry’s influence with Cuomo in the most explicit manner yet. The industry’s initial response to the story, however, suggests that it is unlikely to impact how REBNY does business.

The Times’ three-month investigation chronicles the tempestuous saga of the short-lived Moreland Commission, which was formed by Cuomo last July to crack down on public corruption. It details how Cuomo sought to block a subpoena that the commission intended to send to REBNY in order to investigate, among other things, the organization’s political donations, its materials related to the controversial 421-a abatement used by New York developers including Extell Development and Silverstein Properties, and its communications with public officials.

In the newspaper’s story, REBNY president Steven Spinola seems to make a direct connection between the financial support and the industry-favorable policy to which it gives rise.

In a memo to REBNY members seen by the newspaper, Spinola said that based on private meetings with Cuomo, the Senate majority leader [Dean Skelos or Jeffrey Klein] and Assembly Speaker Sheldon Silver, he had come to a clear conclusion: REBNY’s “past efforts to maintain a personal and supportive relationship was critical in shaping the outcome” of legislation. “Our future ability to adopt favorable legislation, stop terrible legislation or modify legislation to limit the pain to our industry is directly tied to our continued positive relationship,” Spinola continued in the memo.

Cuomo's largest donor, Glenwood Management, is at the center of both the Sheldon Silver and Dean Skelos corruption cases.

Cuomo received $1.5 million from Glenwood during the last campaign cycle.

Cuomo said he would continue to take money from Glenwood because they have done nothing wrong and besides, he's never met with anybody from Glenwood to discuss anything related to real estate.

Except that he has - at least three times.

Here's Gothamist:

It's been two days since Governor Cuomo told reporters that he has "never" talked about rent regulations with real estate company Glenwood Management—one of the state's largest political donors, best known these days for allegedly passing favors under the table to both Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver. Today, however, Capital reports that Cuomo appears to be suffering from selective memory loss: According to the Governor's public schedule, he actually met with Glenwood three times back in 2011 to discuss, you guessed it, "rent regulations."

In one of those meetings, the only people in the room were the governor, Glenwood President Leonard Litwin, and Senior VP Charles Dorego, the guy who just signed a non-prosecution agreement with U.S. Attorney Preet Bharara, and consequently has Albany lawmakers shaking in their loafers.

New York City's rent regulation law is set to expire June 15th, along with 421-a, a '70s-era tax subsidy that favors large developers like Glenwood. For the past few months, housing advocates have been pushing for stronger rent regulation laws, and the abolishment of 421-a. Cuomo has spoken out in favor of renewing both.

It's worth noting that Cuomo received a combined $1.5 million in donations from Glenwood and Litwin, in his last election cycle. Just this week, an indictment against Skelos accused the Senate majority leader of supporting developer-friendly rent control legislation, in exchange for Glenwood paying his son, Adam, for doing very little.

And in January, Silver was accused of sending Glenwood business to law firm Goldberg & Iryami, P.C. in exchange for referral fees. Of Albany's notorious three men in a room, Cuomo is the last one standing.

As if all this doesn't look bad enough, Capital notes that Cuomo's Glenwood meetings took place in the leadup to June 2011, the last time rent control laws and 421-a were up for renewal. 

David Sirota from IBTimes with a little more on Cuomo and Glenwood:

Neither Cuomo's office nor Glenwood Management responded to International Business Times' request for comment about the governor's relationship with Litwin. But documents reviewed by IBTimes illustrate Cuomo’s role in the developer's state business.
The Cuomo-run New York State Housing Finance Agency, for instance, approved a $260 million state-supported low-interest loan in 2014 to finance Glenwood’s new luxury apartment building in midtown Manhattan. At the time the loan to Glenwood was approved, the NYHFA was headed by Cuomo appointee Bill Mulrow, an executive and registered lobbyist at Blackstone, a private equity and real estate firm. Mulrow was just appointed to be the governor’s chief of staff. According to NYHFA documents, Glenwood also has had other business with the agency.

And then there was the "ethics" deal Cuomo got out of former Assembly Speaker Silver and soon-to-be-former Senate Majority Leader Skelos in return for shutting down the Moreland Commission that was investigating Albany corruption and had uncovered some dirt on both Sheldon Silver and Dean Skelos.

That ethics deal was so lukewarm that the NY Times reported not much had really changed afterward. 

The Wall Street Journal reported that prosecutors were investigating "whether New York Gov. Andrew Cuomo or his staff directed an anticorruption commission to not refer cases to district attorneys for prosecution, according to people familiar with the matter."

In addition, the WSJ reported that prosecutors

are investigating whether the Cuomo administration interfered in the commission's work, and why the commission was disbanded.

Finally, prosecutors have indicated they want to know whether the governor's office pressured several commissioners to issue statements in recent weeks disputing the notion the administration had interfered in its investigations, these people said.

This is the stuff that's in the public record.

I'm sure there's a lot more that we don't know about, but given the Cuomo's administration's official policy to delete emails after 90 days, a lot of that may never be revealed.

Unless US Attorney Preet Bharara has wiretaps on people in Albany.

Oh, wait - he does.

And maybe if US Attorney Preet Bharara has some bad players cooperating with the feds against Albany politicians.

Oh, wait - he does.

I dunno if the feds are actually going after Cuomo for all this corruption, but there sure is a lot of smoke around Cuomo and his merry minions.

Seems to me if the feds look at Cuomo as closely as they looked at Sheldon Silver and Dean Skelos, they'll find plenty to take him for an early morning police car ride downtown.

Friday, May 8, 2015

More Damning Details In Cuomo Pay-To-Play Scandal

David Sirota and Matthew Cunningham-Cook follow up on their pay-to-play piece on Andrew Cuomo last night with this:

The Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. have over the past 2 1/2 years received taxpayer-financed contracts to help manage the sale of more than $3 billion worth of bonds for New York state, according to a review of state records by International Business Times. The three banking companies secured this lucrative line of business during the same period they delivered more than $132,000 in campaign contributions to Gov. Andrew Cuomo through political action committees under their corporate control.

...
  • JPMorgan’s PAC gave Cuomo $15,000 April 10, 2013, and the Cuomo administration announced the firm would serve as an underwriter on a $46 million bond issue May 30, 2013.
  • Citigroup's PAC gave Cuomo $15,000 May 1, 2013, and Cuomo officials named the firm an underwriter on a $61 million bond June 19, 2013.
  • JPMorgan’s PAC gave Cuomo another $10,000 July 2, 2013, and the Cuomo administration named the firm an underwriter on another $36 million bond in August 2013.
  • Bank of America’s PAC gave Cuomo $15,500 July 2, 2014, just after the firm had been named an underwriter on a June 2014 bond. Cuomo’s administration would subsequently name the firm an underwriter on a separate $185 million bond in March 2015.

The contracts to the banks went through a non-competive bidding process.

Can you say cha-chinggg!!!

Sony, News Corporation, REBNY, now the banks - who doesn't Cuomo hit up in the Quid Pro Cuomo game?

I dunno if the feds are looking into any of this stuff, but to be honest, the amount of money Cuomo's taking makes the Skelos stuff look small.

Friday, April 17, 2015

NY State Fast Tracks $26 million Tax Break For Sony, Cuomo Gets $300,000 From Sony Execs

This sure sounds like a Quid Pro Cuomo:

Just weeks before a California fund-raiser with Sony executives that netted Governor Andrew Cuomo's re-election campaign $300,000, a Sony executive requested the fast-tracking of $26 million in film credits from New York State.

Keith Weaver, executive vice president for worldwide government affairs at Sony Pictures Entertainment, wrote to an Empire State Development employee about some "pending production tax credits."

"I need your help, as we need to resolve a number of pending production tax credits by 1/15/14 in order to realize the benefit this year.  Our tax and production finance folks were steadfastly working the process, but now we have approximately $26M in tax credits outstanding…  We most assuredly can’t leave $26M hanging out there for another full year (i.e., next tax filing period)," he wrote on Dec. 20, 2013, according to emails obtained by hackers and published in searchable form Thursday by Wikileaks.

Weaver asked if the E.S.D. employee, Rhonda Glickman, could "help move this forward."

And boy did Glickman ever move it forward - she got back to Weaver that day and Sony got indication it would get the $26 million in tax breaks three days later:

Three days later, Weaver wrote in an internal email that he believed the credit had been expedited.

"I just wanted to send you a quick note about this, as it looks like Gov’t Affairs will be effective in expediting $26M in outstanding film credit claims in time for our 1/15/14 tax filing date… I will know definitively by 1/6, but I just wrapped up a call were some commitments were made. While this a timing issue, our effectiveness will mean realizing a significant cash benefit in 2014 versus the next likely opportunity in 2017," he wrote, in the email released by Wikileaks. "Happy holidays!"

A few weeks after that, Governor Cuomo's reelection campaign took in $300,000 from a California fundraiser.

Preet, where are you?