NY Senate Leader and Son Arrested on Corruption Charges

Originally published on May 5, 2015, at NationofChange.org

New York State Senate Majority Leader Dean Skelos and his son, Adam Skelos, were arrested on Monday on federal corruption charges. Accused of committing fraud, extortion, and accepting bribes, Skelos allegedly abused his official position to solicit nearly $220,000 in payments to his son. After NY Assembly Speaker Sheldon Silver was arrested in January for accepting roughly $4 million in bribes and kickbacks, Adam purchased a burner phone and naively shared the number with a confidential informant working with the FBI.

On December 20, 2010, Dean Skelos met with a senior executive, a lobbyist, and the founder of Glenwood Management, a real estate development firm. According to the complaint against him, Skelos directly asked them to send Glenwood’s title insurance commissions and other business to his son in exchange for negotiating upcoming legislation renewals. Unbeknownst to Skelos, the senior executive at the meeting would end up cooperating with the FBI and secretly recording their conversations.

After several meetings with Skelos, the FBI informant at Glenwood caused a $20,000 check to be issued to Adam from a title insurance company dependent on Glenwood for business even though Adam did no work for them whatsoever. The informant also arranged for an environmental company named AbTech Industries to hire Adam in 2011 as a consultant and pay him $4,000 each month for his father’s political influence. With financial investments in AbTech, the informant and Glenwood’s founding family had substantial influence in hiring Adam at AbTech. In a conversation recorded in February 2015 by a senior AbTech executive who recently began cooperating with the FBI, Adam admitted that he became a consultant for the company even though he “literally knew nothing about water or, you know, any of that stuff.”

When Skelos felt that AbTech was not paying his son enough money, he threatened to block Nassau County’s approval of a $12 million contract with the environmental company unless payments to Adam were sharply increased. AbTech’s CEO begrudgingly agreed to increase Adam’s payments to $10,000 each month in exchange for the contract’s approval.

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NY Assembly Speaker Arrested for Accepting $4 Million in Bribes

Originally published on January 25, 2015, at NationofChange.org

The FBI arrested New York Assembly Speaker Sheldon Silver on Thursday charging him with multiple counts of conspiracy, fraud, and extortion. Accused of accepting roughly $4 million in bribes and kickbacks, Silver allegedly abused his position by providing state funding and other benefits to the highest bidders while funneling the dirty money through two corrupt law firms. After Silver convinced Governor Andrew Cuomo to terminate the commission investigating his illegal activities, a lobbyist and close friend of Silver decided to cooperate with the Justice Department by testifying against him.

Elected to the New York State Assembly in 1976, Silver has been Speaker since February 11, 1994. By soliciting and obtaining client referrals worth millions of dollars in exchange for official favors, Silver allegedly abused his power over the real estate industry and healthcare funding. Instead of reporting the bribes, Silver attempted to disguise the money as legitimate income earned from his work at the two law firms accused of laundering his kickbacks.

For steering real estate developers with business before the state legislature to a law firm run by a co-conspirator, Silver received approximately $700,000 in kickbacks. Although Silver had performed no legal work to earn those payments, the law firm Goldberg & Iryami received millions of dollars in legal fees from real estate developers. Goldberg & Iryami reportedly paid Silver to use his official power and influence to refer potential clients to their firm.

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