“Corruption in Albany”

May 7, 2013 10:52 am

A New York Times editorial urges the FBI to continue to do what Gov. Cuomo and other leading lawmakers have failed to do: clean up New York’s “rancid state government.”

The Times’ editorial comes after another New York lawmaker was busted, this time on charges of embezzlement and obstruction of justice. That makes three of the last four state Senate leaders who have faced criminal charges.

The New York Daily News reports that State Sen. John Sampson was charged with embezzling $440,000 and using some of the money to fund a bid for one of the highest law enforcement jobs in the city. When Sampson feared getting caught, he told an associate he could track down informants and “take them out,” according to an indictment unsealed Monday.

Sampson, who pleaded not guilty, was once one of the most powerful lawmakers in Albany. No surprise, Sampson was also at the center of a corrupt process to steer a lucrative contract to a slots casino in Queens. A state Inspector General’s report in late 2010 found that Sampson and other Senate Democrats steered the multi-billion-dollar contract to operate a racino at the Aqueduct Racetrack to the politically connected Aqueduct Entertainment Group.

The contract was eventually given to Genting, which later struck a secret deal with Cuomo to build a $4 billion convention center next to the racetrack in return for a license to run a full-blown casino. That deal has since fallen apart but Genting is still pushing to legalize casinos in New York. The Malaysian firm has hired several top lobbyists in Albany. (See stories about that corrupt process here, here and here.) Meanwhile, Cuomo’s casino plans keep changing, but most of the negotiations are taking place in secret.

Given the corrupting influence casinos have had on state capitals, the FBI may need to send more agents to Albany.

Albany gets back to business

April 18, 2013 11:28 am

After a two-week break, New York lawmakers returned to work (for three days) amid the stench of more scandal as a handful of their colleagues were busted for a variety of corruption charges. So how do the honorable lawmakers in Albany deal with the scandal?

“Dark humor and stiff drinks,” reports The New York Times.

Apparently, the gag running through the halls of the Capitol is for lawmakers to frisk their colleagues to see if they are wearing a wire after a senator was caught on tape arranging a bribe. “You run into them, and you feel them up and down,” Assemblyman David I. Weprin, a Queens Democrat, told The Times. “You’ve got to make light of it some days.”

If that doesn’t work, start drinking. The workweek in Albany usually runs Monday to Wednesday. That explains why on a Tuesday night legislators, staffers and reporters gathered at Elda’s, a friendly bar in the Center Square neighborhood, to discuss their, ah, four-day weekend plans.

But in general it was back to business as usual. Assembly Speaker Sheldon Silver, a Manhattan Democrat, held a closed-door pep talk to tell members “a few bad apples” would not ruin their reputation. Meanwhile, one of the accused wrongdoers, attended a brief Senate session and sat in the so-called “crooked seat,” reserved near the chamber’s doors for lawmakers who are in trouble with the law. (The fact that there is a reserved seat in the corner for lawmakers in legal trouble is a sure sign that Albany’s moral compass is askew.)

Indeed, one of the top items on lawmakers’ agenda is working behind closed doors to hammer out a plan to change the state constitution in order to allow commercial casinos. That process is already off to a dubious start, considering one casino operator cut a deal with Gov. Andrew Cuomo to build a $4 billion convention center in hope of securing exclusive casino rights to New York City. That deal failed but that has not stopped the lobbyists and money from casino interests flowing into Albany. By the time the casino process ends, Albany may need more crooked seats.

For those not keeping score at home, here’s a quick update on the recent corruption arrests:

* Malcolm A. Smith, a Democratic senator from Queens, was charged with trying to bribe his way into the New York City mayor’s race.

* Assemblyman Eric A. Stevenson, a Bronx Democrat, was accused of taking bribes from developers of adult day care centers.

* Assemblyman Nelson L. Castro, also a Bronx Democrat, resigned in a deal with prosecutors under which he had secretly recorded conversations with other lawmakers to avoid prosecution on state perjury charges.

* Assemblyman William F. Boyland Jr. a Brooklyn Democrat, was indicted for bribery and other alleged crimes.

Olympic athletes: place your bets

July 28, 2012 4:09 pm

That didn’t take long.

The opening ceremony to the London Olympics was yesterday and already authorities are investigating an athlete who bet on a competitor and won $4,800. International Olympic Committee rules bar athletes from betting on Olympic events. (Of course, the IOC may top the NCAA when it comes to hypocrisy, corruption and money.)

Back to sports betting. We did a blog post the other day, pointing to concerns about bets during the Olympics and match fixing. As sports betting spreads, look for corruption and sports-betting scandals to become a part of all games.

Back to business in Alabama?

March 9, 2012 10:12 am

Shortly after a casino owner was found not guilty of trying to buy votes from state lawmakers in Alabama, his attorney talked about trying to re-open the casino.

Of course, casino owner Milton McGregor would need support from the lawmakers he was accused of trying to bribe. The Press-Register in Alabama weighed in with an editorial that cautioned lawmakers against jumping back in to the casino game.

Indeed, while McGregor was found not guilty, the federal corruption trial provided residents a window into the way the casino industry and lobbyists interact. Even if prosecutors weren’t able to prove their case, the alleged cozy ties between the gambling and government interests sure looked bad. Lawmakers should use the trial to re-think the social and economic costs of casinos, not to mention the corrupting influence that gambling can have on elected officials.

Even if they are not found guilty. That doesn’t make gambling right.

Closing arguments in Alabama casino corruption trial

February 27, 2012 1:05 pm

Defense attorneys have decided not to call any witnesses in the federal corruption trial involving casino operators, lobbyists and Alabama lawmakers.

As such, the closing arguments are expected to begin on Tuesday and the jury is expected to begin deliberations on Wednesday. Meanwhile, the judge approved a request by federal prosecutors to drop some of the charges against the defendants.

Six defendants are accused of buying and selling votes for pro-gambling legislation designed to protect keep open two casinos that former Gov. Bob Riley wanted to close.

This is the second time the defendants have been on trial in the sweeping case involving alleged bribes paid to lawmakers in return for pro-gambling votes. A jury deadlocked on the charges in August, and two other defendants were acquitted. In that case, defense attorneys only called one witness.

The reporting of both trials has been pretty thin and unsophisticated, making it hard to gauge the strength of the case. However, it seems like this time – based on the reporting – that the prosecutors have put on a case that is more compelling, clear and concise.

Place your illegal bets

February 18, 2012 10:27 am

A federal corruption trial involving lawmakers, lobbyists and casino industry representatives in Alabama continues to offer a window into how business often gets done when government and gambling interests intersect. 

A casino developer testified Friday that he put $20,000 in cash in a small box and gave it to a state legislator who sought money in return for supporting the businessman’s projects in Alabama.

Ronnie Gilley said he gave the cash to former Rep. Terry Spicer in a box that was for cell phones. He said the lawmaker thanked him and said he needed a new phone. Gilley has pleaded guilty to paying bribes. Spicer pleaded guilty to taking more than $100,000 in bribes from Gilley and his lobbyist, Jarrod Massey. Defense attorneys have tried to discredit Gilley, saying he his cooperating with the government in return for a shorter sentence. 

Gilley’s testimony came in the third day of the sweeping corruption trial involving casino owner Milton McGregor, Sen. Harri Anne Smith, former Sens. Larry Means and Jim Preuitt, casino lobbyist Tom Coker, and casino spokesman Jay Walker. Federal prosecutors contend lawmakers and lobbyists worked with Gilley to buy and sell votes for pro-gambling legislation designed to reopen Gilley’s and McGregor’s casinos during a state crackdown on electronic bingo machines.

The case is shining a harsh light on the corrupting influence gambling has on lawmakers, which is a pattern that has played out in various forms in other states that have legalized gambling. See earlier posts here and here.

Casino corruption trial – take 2

February 14, 2012 8:15 am

A federal gambling corruption trial in Alabama offers a window into the alleged nefarious ways the casino industry and lawmakers intersect.

A casino owner is one of the defendants on trial for a scheme that prosecutors said involved bribes in return for pro-gambling votes. Prosecutors allege that Milton McGregor, owner of the Victory Land Casino, paid a state aide who wrote gambling legislation $3,000 a month. The aide died last month, resulting in a trial delay.

Prosecutors said the payments totaled more than $70,000 over two years and ended when the FBI’s corruption investigation of the Alabama state house was disclosed. McGregor’s attorney says the payments were for political consulting work that his client reported to the Internal Revenue Service for tax purposes.

A lobbyist testified that she offered $2 million offered $2 million in campaign contributions to state Sen. Jim Preuitt for his vote on pro-gambling legislation. The lobbyist has pleaded guilty to conspiracy charges and is cooperating with the government.

This is the second time McGregor and other defendants have gone to court. In August, the defendants were either acquitted or the jury was deadlocked on charges that resulted in a mistrial.