GOV’S PALS PROBED TOO
Feds eye Andy’s ‘Buffalo Billion’ program
ALBANY — A former top aide and several others close to Gov. Cuomo are being probed by the Manhattan U.S. attorney’s office for potential improper lobbying and undisclosed conflicts of interest involving an upstate power plant and Cuomo’s signature “Buffalo Billion” economic development program, the Daily News has learned.
Joseph Percoco, who until recently was Cuomo’s $169,000-a-year executive deputy secretary and had long been his political enforcer and close personal friend, is said by sources familiar with the investigation to be a key target.
A source with knowledge of the situation said Percoco failed to accurately report that outside income he received came from entities with business before the state.
He also seemingly failed to report potential conflicts of interest to the Cuomo administration or recuse himself from projects he had ties to, several sources said.
Percoco is said to have hooked up with the companies through Washington-based lobbyist Todd Howe, president of lobbying firm WOH Government Solutions.
Howe once worked for Mario Cuomo and served as Andrew Cuomo’s deputy chief of staff when he was federal housing secretary under President Bill Clinton.
His firm is a subsidiary of Albany-based Whiteman Osterman & Hanna LLP, which is registered to lobby on behalf of a major Buffalo Billion developer, Louis Ciminelli, as well as CPV Valley, which is building a power plant in Orange County.
“It sounds like there was here,” said one source.
Also being looked at, sources said, are Alain Kaloyeros, the politically connected head of a State University high-tech research center, Ciminelli, and CPV Valley, a source with knowledge of the investigation told The News.
The governor’s office on Friday received a subpoena, a source said. But neither the governor nor his cur- rent aides were served personally, the source added.
For Cuomo, there was no one closer than Percoco, who left the administration earlier this year to become senior vice president for Madison Square Garden. Steven Cohen, Cuomo’s former chief of staff in both the attorney general’s office and the governor’s office, said Cuomo won’t put his friendship above “integrity and the obligation owed to the public.”
“Friend or not, any instance of misconduct will be met with unambiguous action to ferret out the wrongdoing, correct the problem and ensure that law enforcement exacts the appropriate penalty,” Cohen said.
Shortly after The News broke the story online Friday, Cuomo’s counsel Alfonso David released a statement confirming that Manhattan U.S. Attorney Preet Bharara’s probe into the Buffalo Billion “has recently raised questions of improper lobbying and undisclosed conflicts of interest by some individuals which may have deceived state employees involved in the respective programs and may have defrauded the state.”
“We take violations of the public trust seriously and we believe these issues must be resolved by further investigation by the U.S. attorney.”
Cuomo tapped Bart Schwartz, who served as chief of the criminal division in the Manhattan U.S. attorney’s office under Mayor Rudy Giuliani, to review the Buffalo Billion program.
“Any grants made by this program will be thoroughly scrutinized — past, current or future,” David said, adding that Bharara’s office was notified of the move.
Schwartz said the Cuomo administration “has made it clear to me that they have zero tolerance for any violation of the public trust from any actor or entity and I should follow the facts.”
Through an aide, Cuomo said
his counsel’s statement “speaks for itself.”
One source said the administration became aware Percoco was being investigated earlier this week.
In addition to having Schwartz conduct the internal review, he’ll also monitor Buffalo Billion contracts going forward and recommend interim changes that can be made, a source said.
Cuomo also barred state employees from having meetings or communications with Howe and directed the administration to suspend any discussions of regulatory or other matters with CPV, the source said.
In a statement, Percoco’s lawyer, Barry Bohrer, did not address any specifics or even confirm the investigation. “Mr. Percoco was a dedicated and effective public servant, who is proud of the service that he rendered to the people of the state of New York,” Bohrer said.
Howe had no comment when reached by phone.
The Buffalo Billion was a major economic development initiative announced during Cuomo’s first term.
Ciminelli, who has donated nearly $100,000 to Cuomo’s campaigns dating back to 2006, won a major Buffalo Billion contract in- volving SolarCity. The initial request for proposals for that project was written in a way that it could only benefit Ciminelli’s company. And though it was rewritten, the well-connected developer still won the bid.
Ciminelli’s lawyer, Daniel Oliverio, said while the developer and his firm have produced documents and given other information to Bharara’s investigators, “we have not been identified as a target or subject of the investigation whatsoever. I have heard nothing about undisclosed conflicts or improper lobbying. That’s all news to me.”
The News first reported in September that Bharara was investi- gating SUNY Polytechnic Institute, which is headed by the highly-paid Kaloyeros, as part of the probe into the much-ballyhooed Buffalo Billion economic development plan.
The News reported at the time that SUNY Polytechnic had received subpoenas seeking documents and other information.
SUNY in July entered into a $1.5 million contract with criminal defense firm Kelley Drye and Warren LLP to represent the institute. A SUNY Polytechnic spokeswoman had no immediate comment.
A Bharara spokesman had no comment Friday.