Silver, in Retrial, Found Guilty on All Counts of Corruption
The former head of the state Assembly was accused of honest services fraud, extortion, and other corruption crimes.
May 11, 2018 at 05:10 PM
5 minute read
former speaker of the New York State Assembly, exits federal court on Friday.
Former Assembly Speaker Sheldon Silver, once one of the most powerful men in New York state politics, has again been found guilty on all seven counts of federal corruption related to two separate schemes in which he enriched himself by steering work toward two law firms for payments, while using his office to provide benefits to those employing those firms.
Silver, appearing outside the courthouse after the verdict, said that while he was disappointed in the jury's decision, he had full faith in his legal team to prevail on appeal.
“I feel confident in my attorneys. Obviously I'm obviously disappointed at this point,” Silver said. “I'm very confident that the judicial process will play out in my favor.”
The case, which moved along the well-worn path of witnesses and evidence from the 2015 trial, was retried after the U.S. Supreme Court's decision in McDonnell v. United States required a narrower interpretation of federal bribery statutes. In overturning Silver's previous conviction, the U.S. Court of Appeals for the Second Circuit said the jury instructions provided by U.S. District Judge Valerie Caproni of the Southern District of New York were such that it was unclear if the jury's verdict would have remained the same after McDonnell.
In a statement, Morrison & Foerster partner Carrie Cohen, who led the prosecution team for the U.S. Attorney's Office for the Southern District of New York in Silver's first trial, said she was “glad justice was served again.”
“We built a strong case and the facts remained the same with no issue proving official action,” Cohen said.
Silver's attorney, Allen & Overy partner Michael Feldberg, said he believed there remained “significant legal issues—challenging and difficult legal issues” that he looked forward to the opportunity to present on appeal.
“The legal issues include the McDonnell issue but that's not the only issue,” Feldberg said outside of the court.
At the core of the government's case were two schemes, both of which hinge on referral fees paid to Silver by two different law firms—Weitz & Luxenberg, for asbestos-induced mesothelioma cancer cases, and Goldberg & Iryami, for tax certiorari work. In the former, Silver allegedly induced former Columbia University Dr. Robert Taub to refer his cancer patients, in exchange for state funding for research and other perks, while receiving rainmaker fees from the law firm.
In the latter, Silver allegedly orchestrated a complex scheme that saw major real estate companies dependent on sun-setting state real estate laws send their tax work to Goldberg & Iryami where, unbeknownst to them, Silver received referral fees for the business.
The jury deliberated for only a day, but juror Marvin Carson, one of the only jurors to speak to the media after the verdict, said that deliberations were still very emotional.
“When you go and read the verdict, you start crying,” he said.
The jury's biggest struggle was the first charge against Silver for honest service mail fraud in the mesothelioma scheme, Carson said. It took the jury three hours on that count alone, he said.
“We were not used to dealing with it, and we wanted every detail to be checked off. And then it gave us a way of working—in other words, we attacked each point, and discussed it,” he said. “There was always somebody who wasn't ready to agree.”
Nothing about the process was easy for the jury, according to Carson.
“It was all back-and-forth. This was work,” he said.
Carson did say he was surprised at the speed at which the jury worked, stating that the sense among the group was that they would be back on Monday.
During the trial, Feldberg did all he could to focus the jury on the needed elements to prove a crime in the wake of McDonnell, asking the jurors to consider what the terms of the alleged deal between Silver and the other sides of the conspiracies were, when and how the alleged quid pro quo was put in place, and what the official acts specifically were that Silver was to take in exchange for the benefit.
Sure, Feldberg acknowledged, some of what Silver did may be displeasing to the jury, maybe even unseemly, and possibly not as honest as would be ideal. But, he argued, the actions were not only legal but within Silver's right as a former member of Albany's so-called “three men in a room” power brokers.
“It is not a crime to be a politician—even a powerful one,” Feldberg said.
In a statement, U.S. Attorney Geoffrey Berman praised prosecutors for the victory.
“I commend the career prosecutors of our Office's Public Corruption Unit, whose determination in securing this important conviction fittingly underscores the importance of pursuing cases against corrupt politicians, no matter the difficulty,” he said. “One of the most worthy endeavors of this office is combating public corruption. We will continue to do so with the independence and resolve the Southern District is known for and the citizens of New York so rightly deserve.”
Silver's scheduling was scheduled for July 13.
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