Prosecutors Seek Forfeiture of Money Paid to Bribe Ex-Cuomo Aide
Prosecutors wrote in a letter motion to U.S. District Judge Valerie Caproni of the Southern District of New York that they could not agree to a forfeiture amount with Percoco's defense team—so they're asking for it all.
September 17, 2018 at 01:16 PM
5 minute read
U.S. attorneys have told a Manhattan federal judge they want to claw back money paid to bribe Joseph Percoco, a former top aide in the Cuomo administration, in the wake of his conviction on political corruption charges.
Prosecutors wrote in a letter motion to U.S. District Judge Valerie Caproni of the Southern District of New York that they have been unable to agree to a forfeiture amount with Percoco's defense team, so the government is asking for it all—more than $300,000.
Percoco was convicted in March of this year of taking bribes from two companies with business before the state.
Percoco is represented by Barry Bohrer, a partner at Schulte Roth & Zabel in Manhattan. The case was prosecuted by attorneys with the office of U.S. Attorney Geoffrey Berman of the Southern District of New York.
According to the letter from prosecutors, Percoco's team agreed to forfeiture of the $35,000 Percoco was convicted of taking from COR Development, a developer from central New York that sought money from the state for ongoing development projects.
They hit a road bump with the other $285,000 Percoco was convicted of taking. Those payments were made to Percoco's wife over 38 months from Competitive Power Ventures, an energy company that wanted to build a power plant in the Hudson Valley. The company provided Lisa Percoco a low-show job in exchange for Percoco's influence over state officials.
Prosecutors said in the letter that Percoco's attorneys wanted the total forfeiture amount related to the CPV payments discounted because of “direct costs incurred in providing the goods or services.”
“The Government asserts there are no such 'costs' that should be deducted from the forfeitable amount of proceeds Percoco obtained in connection with his crimes because, as supported by the jury's verdict at trial, Lisa Percoco's job itself was provided as part of a quid pro quo agreement, and therefore all of her compensation from CPV is proceeds of the CPV-related crimes of which Percoco was convicted,” prosecutors wrote in the letter.
They are not seeking forfeiture of about $1,600 of reimbursements that Percoco's wife received from CPV for meals and other expenses. The filing was first reported by the Albany Times Union.
Bohrer wrote in his own letter to Caproni Monday afternoon that Percoco's wife should be allowed to keep $95,000 of the total for consulting services she provided to CPV. He said those services were “lawful and bona fide” based on testimony heard at trial and should be taken into account in any final forfeiture amount.
He came up with the number by comparing the salary of Percoco's wife to that of another consultant for CPV. Percoco's wife was paid $7,500 each month by the company. The other consultant was paid $2,500 each month. Bohrer wrote that since Percoco's wife was also a consultant for the company, she should be allowed to keep the same amount as was paid to the other consultant, which would add up to $95,000 over 38 months.
“Because Mr. Percoco's wife, Lisa Percoco, who was the direct recipient of the funds at issue, provided lawful and bona fide services to CPV, the forfeiture amount should be determined by taking into account the fair value of those services,” Bohrer wrote in the letter.
That would bring Percoco's total forfeiture amount down from $320,000 to $225,000.
Percoco, who at one point served as executive deputy secretary to Cuomo, is scheduled to be sentenced before Caproni on Thursday. Prosecutors have asked Caproni to deliver a sentence that will “meaningfully exceed” five years in an effort to set a precedent for future public corruption cases. Percoco's attorneys are asking for a maximum sentence of two years in prison.
Percoco apologized in a letter to Caproni on Thursday for the actions that led to his conviction in March. He expressed remorse in his letter for how his actions may have diminished the public trust in state government. He also expressed regret for how the charges and his conviction will affect his family. Percoco and his wife have two young daughters.
“I spend every moment I can with my daughters to keep them strong and prepare them for what lies ahead: life without their father for an extended period of time,” Percoco wrote.
Former U.S. Attorney Preet Bharara alleged in 2016 that Percoco had used his position in state government to benefit COR and CPV. Percoco, who had also served as Cuomo's campaign chairman in 2014, left state government in 2016 before his indictment.
Percoco agreed to influence state officials to approve a power purchase agreement for CPV in exchange for the low-show job for his wife, prosecutors said. The company was seeking an agreement valued at $100 million.
COR paid Percoco to expedite the release of millions of dollars for development projects in central New York, according to prosecutors. Percoco also facilitated a raise for a COR executive's son who was then working in Cuomo's office.
Steven Aiello, an executive at COR, was also charged and convicted as part of the scheme. He will be sentenced later this year.
Prosecutors had also brought extortion charges against Percoco as part of the scheme, but he was found not guilty of those claims in a split verdict.
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