New York: The Land of "Honest Services" Theft

Feds: Bruno “exploited” power, public’s trust
The Albany Times Union by Robert Gavin - November 2, 2009

A federal prosecutor today cast former state Senate Majority Leader Joseph L. Bruno as a scheming state leader who skated by New York’s ethics rules, deceptively solicited unions with business before the state and reeled in hundreds of thousands of dollars while betraying the public’s trust in a shroud of secrecy. “He exploited his position,” said Assistant U.S. Attorney Elizabeth Coombe as the trial of Bruno began before Judge Gary Sharpe in U.S. District Court on Broadway in downtown Albany. An eight-count indictment accuses Bruno, 80, who had been the Legislature’s most powerful Republican for more than 14 years, of mail and wire fraud in an alleged scheme to defraud the public of “honest services.” The silver-haired Bruno, of Brunswick, sat with his hands folded as the prosecutor repeatedly told a jury of seven women and five men of upcoming evidence they would hear to show his guilt. While many parties were “constantly bombarded” by investor representatives, “Senator Bruno’s calls were different,” she said. She told jurors Bruno approached 15 unions on behalf of the Milford, Conn.-based Wright Investor Services and 11 later invested with the outfit, which had paid the senator $1.3 million. She noted Bruno also received $630,000 from the locally based McGinn-Smith and Company between 1993 and 2005. She highlighted the alleged “mixing of Senator Bruno’s private interests and public duties.” She told jurors they would hear from the likes of union officials, as well as Loudonville businessman Jared Abbruzzese, who she said paid Bruno $360,000 in 2004 and 2005 – and then exchanged a horse when the payments stopped. Coombe said Bruno did not inform a legislative-controlled ethics committee he would be contacting labor unions – which deal with the state – when he approached the panel.

And the prosecutor said while Bruno sat atop the Senate leadership, some bills passed and some would not that “directly affected the unions.” She also alleged the senator had “empty shell” entities, identified as Business Consulting Inc. and Capital Business Consultants, within the alleged scheme. While Coombe spoke for less than 30 or so minutes, defense attorney Abbe Lowell doubled that time, questioning what proof existed to his client’s guilt. The high-profile lawyer began his opening arguments addressing those in court, with special mention to “members of the Bruno family.” He painted Bruno as a self-made business success story who was repeatedly re-elected 16 times – and hardly conducted his dealings secretly. Rather, he told jurors, Bruno did not as much as violate a state ethic rule, let alone a federal felony. Lowell scrawled words on a paper board to illustrate his points. He said Bruno never had any exchange, applied no pressure to anyone, paid off no one and showed “no hiding of anything required in the state of New York.” Not one document, e-mail, check, phone message or witness for that matter would support the government’s case, Lowell said. While Coombe had alleged Bruno hid details of his consultant work to the state legislative ethics panel, Lowell said Bruno repeatedly kept it informed. And he questioned how Bruno could have broken the law when other Senate staffers – who knew of Bruno’s work – have not been charged. “It is wrong for public officials to violate the public’s trust,” he said. “But it is equally wrong when an innocent man is convicted.” Coombe objected twice during Lowell’s lengthy opening. Sharpe rebuked her twice, noting the lawyer was offering arguments and not evidence. While lawyers were meeting to potentially “expedite” the trial, according to Sharpe, Jurors were sent home without any witnesses being called. The trial resumes Tuesday at 9 a.m. (Staff writer James M. Odato contributed to this story)