Tuesday, December 6, 2022

Benjamin's corruption charges tossed

Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Dec 06, 2022 View in browser
 
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By Erin Durkin and Anna Gronewold

Former Lt. Gov. Brian Benjamin is off the hook, at least partially. The bribery charges that drove him from office were dismissed by a federal judge, who threw out three counts of bribery and honest services wire fraud.

The decision underscores how difficult it has become to make corruption charges stick, much to the delight of wheeling and dealing New York politicians. Benjamin was accused of taking illegal campaign contributions from a Harlem real estate developer, and steering $50,000 in state funds to the developer in return. But a wink and a nod isn't enough, ruled U.S. District Judge J. Paul Oetken, saying the tit for tat wasn't explicit enough. The indictment fails to allege an explicit quid pro quo, which is "an essential element of the bribery and honest services wire fraud charges brought against Benjamin," he wrote.

This comes on the heels of the Supreme Court signaling last week it is likely to toss the convictions of Joe Percoco and others connected to corruption scandals in former Gov. Andrew Cuomo's administration, perhaps making it easier still for pols to beat the wrap.

Although the corruption charges were thrown out, Benjamin will still have to face two counts of falsifying business records stemming from documents he filled out when he was being vetted as Hochul's No. 2. And the damage to his political career is done, having lost his post just months after being tapped as LG, though a statement from his lawyers hinted a comeback bid is not out of the question. Federal prosecutors plan to appeal the dismissal.

New York Lt. Gov. Brian Benjamin leaves the courthouse in New York, Tuesday, April 12, 2022.

New York Lt. Gov. Brian Benjamin leaves the courthouse in New York, Tuesday, April 12, 2022. Benjamin has been arrested in a federal corruption investigation. Authorities said the Democrat was arrested Tuesday on charges including bribery and falsification of records. | Seth Wenig/AP Photo


IT'S TUESDAY. Got tips, suggestions or thoughts? Let us know ... By email: EDurkin@politico.com and agronewold@politico.com , or on Twitter: @erinmdurkin and @annagronewold

WHERE'S KATHY? In Albany with no announced public schedule.

WHERE'S ERIC?  Calling in to WABC's "Bernie & Sid in the Morning," making an appointment-related announcement, speaking at New York University School of Professional Studies Shack Institute of Real Estate's 55th annual Conference on Capital Markets in Real Estate, attending the Sandy Hook Promise 10-Year Remembrance and Benefit Dinner, and speaking at the Office to End Domestic and Gender-Based Violence's Domestic and Gender-Based Violence Advocates of New York City ceremony.

 

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WHAT CITY HALL IS READING

Council speaker floats controversial changes to internal rules , by POLITICO's Joe Anuta and Sally Goldenberg: City Council Speaker Adrienne Adams has proposed power-shifting rules changes so controversial, she had to yank them from a scheduled committee hearing this week to appease unhappy colleagues. One shift in the larger proposal, much of which further empowers the speaker, would raise the bar for members trying to pass legislation without her support. Another would give Adams' office more power over the bill-drafting process by eliminating an independent unit that helps members write bills. And a third would limit members' say over who staffs their committees.

" NYC's Pandemic Response Lab to Close as Covid Testing Plummets ," by Bloomberg's Gregory Korte: "New York City's Pandemic Response Lab, a much-vaunted effort to increase Covid-19 testing capacity at the height of the pandemic, will close at the end of the month and eliminate all 185 jobs. ReOpen Diagnostics, the subsidiary of the laboratory automation company Opentrons Labworks Inc. that runs the Queens lab, said Monday it was winding down operations because of a 'rapidly changing external environment.'"

Fallout begins for Dem Council member joining GOP , by POLITICO's Joe Anuta: Democratic City Council Speaker Adrienne Adams said Monday that one of her members will face stiff consequences for switching to the Republican party. Brooklyn Council Member Ari Kagan, who represents a moderate district with a large Russian-speaking population, [announced] Monday afternoon that he will be leaving the Democratic Party and joining the GOP. Ahead of that pronouncement, the leader of the 51-member body released a statement outlining the consequences.

" Twin Friends of Eric Adams Are Dogged by Allegations and Unpaid Debts ," by The New York Times' Michael Rothfeld, William K. Rashbaum and Susan C. Beachy: "Vadim Shubaderov, a 35-year-old businessman, thought he had stumbled on the perfect opportunity when he met a charismatic pair of identical twins in Brooklyn. The brothers, Johnny and Robert Petrosyants, were successful bar operators who routinely dropped thousands of dollars at a Russian restaurant in the Flatiron district, were driven around in a Mercedes-Benz and, most impressively, counted the new Brooklyn borough president, Eric Adams, as a good friend. When the twins invited Mr. Shubaderov to invest in a catering company in 2014, he plunked down $350,000, virtually his entire life savings."

— " Plan Tests Tense Relationship Between N.Y.P.D. and Mentally Ill People ," by The New York Times' Corey Kilgannon

WHAT ALBANY'S READING

"Internal docs confirm AG Letitia James knew about aide's sexual harassment scandal well before election ," by New York Post's Allie Griffin and Bernadette Hogan: "Internal documents released by Attorney General Letitia James' office Monday night confirmed she knew about the sexual harassment allegations lobbed against a longtime top aide for more than a month before Election Day, but chose to keep it under lock-and-key before voters went to the polls. James and her office first learned that Chief of Staff Ibrahim Khan, 38, was facing sexual harassment complaints from two women on Oct. 2 — long before New York's Nov. 8 election date, according to the documents that provided a damning timeline into the scandal. The day after, the attorney general's office ordered Khan to switch to remote work and to stop communicating with coworkers and others close to James, according to the email provided by James' Deputy General Counsel Serena Longley.

— " NY GOP seeks probe of AG Letitia James over aide's sexual harassment scandal ," by New York Post's Zach Williams

" Former state Education Commissioner John King appointed SUNY chancellor ," by Times Union's Kathleen Moore: "John King Jr., the former state education commissioner whose tenure in that post was marked by the controversial rollout of the Common Core Learning Standards, was appointed SUNY chancellor Monday. King, who was also U.S. secretary of education under President Barack Obama, is returning to the state from Maryland. The SUNY Board of Trustees voted unanimously to appoint him Monday with a $750,000 salary. He will start Jan 17."

" Retiring NY Thruway Authority boss Matt Driscoll defends toll increase ," by Syracuse.com's Mark Weiner: "Former Syracuse mayor Matt Driscoll is defending a proposed system-wide toll increase along the New York State Thruway, saying the 5% hike for E-Z Pass customers is long overdue. The Thruway Authority board voted to move the proposed toll hike forward, setting in motion a series of public hearings. Driscoll, executive director of the Thruway Authority, plans to make the higher tolls one of his last initiatives before retiring Dec. 20 from a career in public service.'"

" After $500K election boost, carpenters union presses Hochul on bill on contractor disclosures ," by Buffalo News' Chris Bragg: "After spending more than $500,000 helping Gov. Kathy Hochul win a narrow election, a union representing New York carpenters is lobbying her to sign a bill that's sparked significant opposition, including within her own administration. If signed into law, the bill would make information about legal violations committed by state construction contractors more publicly accessible. But according to opponents' interpretation of the language, it would also reshape and undermine the normal process by which state contracts are bid and potentially make it more difficult for some companies to compete for state business."

" The Cap-and-Trade Fight Comes to New York ," by New York Focus' Colin Kinniburgh: "New York could be next. As the state's Climate Action Council wraps up deliberations over its plan for implementing the climate law, it is weighing a proposal that would set an economy-wide cap on carbon emissions, in line with those already set by the climate law. The policy would require emitters to buy 'allowances' for every ton of pollution up to that cap, with the proceeds going toward clean energy, electrification of buildings and transportation, and other initiatives needed to bring emissions down to zero. … If the council votes to endorse cap and invest, it would still only serve as a recommendation — not binding policy."

#UpstateAmerica: ICYMI: "How the Hudson Valley and the Catskills became the home to grunge icons, ex-punks and one-hit wonders."

 

JOIN WEDNESDAY FOR A POLITICO DISCUSSION ON THE NEW TRAVEL EXPERIENCE : Americans are now traveling in record numbers — but the travel experience has changed drastically in recent years, not always for the better. What lessons can we learn from the pandemic and different responses around the globe? And in the face of a possible recession, what will help the travel industry remain vibrant and deliver jobs? Join POLITICO on Dec. 7 for "The Travel Experience Redefined" to discuss these questions and more. Breakfast and coffee will be provided. REGISTER HERE .

 
 
TRUMP'S NEW YORK

" Jury deliberations begin in Trump Organization criminal fraud trial in New York ," by CBS News' Graham Kates: "A dozen New York jurors will soon decide if two Trump Organization companies committed fraud and tax evasion. After a six-week-long trial, Judge Juan Merchan reminded jurors Monday that in October they promised to 'set aside any biases that you have for or against Donald Trump or his family' in deciding if executives working for the Trumps broke the law by avoiding taxes, while reducing payroll liabilities, through a variety of alleged schemes. The former president was not charged in the Manhattan District Attorney's effort to prosecute the Trump companies, but his name was invoked frequently at the monthlong trial, by both sides."

FROM THE DELEGATION

Jeffries and Schumer begin their Dem buddy act , by POLITICO's Marianne LeVine and Sarah Ferris: The most important thing Chuck Schumer and Hakeem Jeffries have in common isn't their New York City borough. It's their shared leadership style: Neither top-down nor reflexively ideological, they move easily among progressives and centrists alike. The similarities pretty much end there. ... As they begin their cross-Capitol partnership next year, lawmakers close to both New York Democratic leaders say the interplay between their contrasting styles and skill sets will be critical to the party's prospects for the remainder of President Joe Biden's first term.

Biden and the Boroughs

" EPA delays cleanup of Brooklyn's toxic Newtown Creek Superfund site until 2032 ," by Gothamist's Nathan Kensinger: "The Newtown Creek is one of the most polluted bodies of water in the nation, fouled by more than a century of sewage overflows, oil spills and industrial waste. The coastline of this 3.8-mile waterway, located along the border of Brooklyn and Queens, is lined with wastewater facilities, factories, warehouses and oil storage tanks. Coming up with a plan to clean this toxic estuary may now take five years longer than expected, according to a new timeline released by the Environmental Protection Agency."

AROUND NEW YORK

— Mayor Eric Adams launched a new lifestyle medicine program at city hospitals.

— The city has quietly canceled its internet master plan.

— Reported antisemitic hate crimes in the city more than doubled last month.

— The MTA's contract with transit workers expires in six months .

— Gov. Kathy Hochul announced $10 million for a series of projects to revitalize Rochester's downtown.

— Police are investigating an incident in which a father and son were shot with a BB gun on Staten Island as a potential anti-Semitic hate crime.

— The MTA wants to redesign subway turnstiles to prevent fare evasion.

— The New York State Bar Association is suing the state for the first pay raise in 18 years.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Julian Zelizer (53), celebrating with friends at a piano bar in NYC … The Air Current's Jon Ostrower Dan Levitan of BerlinRosen … SEC's Angelica AnninoEvelyn FarkasDana BrisbaneNatalie JohnsonBeth Argaman

MAKING MOVES — Matthew Colangelo has been named senior counsel to Manhattan District Attorney Alvin Bragg. He was formerly a senior official at the U.S. Department of Justice. … Caroline Griffin is joining Brown & Weinraub. She was formerly chief of staff at the Dormitory Authority of the State of New York.

SPOTTED at the 75th anniversary party celebrating "Meet the Press" at the Renwick Gallery on Monday night: Chuck Todd, Cesar Conde, Noah Oppenheim, Carrie Budoff Brown, Mitch Landrieu, Josh Dawsey, Andrew Bates and Megan Apper, Marc Short, Molly Ball, Vanessa Valdivia and Chris Meagher, Betsy Fischer Martin and Jonathan Martin, Matt Gorman, Jen Psaki, Sam Feist, DHS Secretary Alejandro Mayorkas and Tanya Mayorkas, Sen. Rob Portman (R-Ohio), Rep. Debbie Dingell (D-Mich.), Susan Glasser and Peter Baker, April Delaney, Neera Tanden, Anna Palmer and Patrick Mellody, Jake Sherman, Justice Gilpin-Green, Ashley Parker and Michael Bender, Symone Sanders, Geoff Bennett, Katherine Schneider, Jim Acosta and Liz Landers, Ian Sams, Julie Tsirkin, Andrea Mitchell, David Gelles, Melissa Frankel, John Reiss, Luke Russert, Maureen Orth, Kristen Welker, Miriam Sapiro and Stephen Labaton and Anthony Coley.

Real Estate

" NYC Needs Thousands of Apartments for the Formerly Incarcerated. 50 Face Furious Opposition ," by City Limits' David Brand: "Each year, thousands of New York City residents cycle from the streets and shelters to Rikers Island jails, with scant housing options to provide stability after their release. A report issued earlier this year by the Corporation for Supportive Housing (CSH) found that about one in five people arrested and sent to Rikers in 2020 were homeless and experiencing mental illness, meaning they could qualify for supportive housing—permanent apartments with on-site services. All told, that's 2,589 people—almost certainly an undercount, according to the report's authors."

" Series of Major Housing Approvals, Announcements Mark Progress in Adams' 'City of Yes' ," by Gotham Gazette's Ethan Geringer-Sameth: "New York City is soon to be awash in new housing construction with the City Council approval in recent months of over 12,000 new units and a mayoral administration promising to bring thousands more through major development projects and changes to city zoning rules. The development is essential to meet the city's demand for housing, particularly affordable housing, where the vacancy rate for the lowest income apartments is less than 1% while tens of thousands of individuals sleep in shelters or on the streets each night. The approved and announced development alone is not enough to meet that need, but it has largely been hailed as a promising start for a new administration and City Council."

" NYC's Silverstein to Raise $1.5 Billion for Office-to-Housing Push ," by Bloomberg's Natalie Wong: "New York developer Silverstein Properties is seeking to raise $1.5 billion for converting older offices to residential buildings. The landlord, known for developing towers at the World Trade Center, is in talks with investors to kick-start what could be a "$10 billion-plus" opportunity, Chief Executive Officer Marty Burger said in an interview. The firm is exploring acquisitions of Manhattan office buildings that are facing growing vacancies or debt burdens. The effort could potentially expand to other areas of the US, such as Washington, D.C., Boston and the West Coast."

 

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