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SCOTUS sympathetic to Percoco, Ciminelli appeals

Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Nov 29, 2022 View in browser
 
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By Anna Gronewold and Erin Durkin

Joe Percoco, Alain Kaloyeros, Louis Ciminelli: Remember these names? Of course you do. They're among the convicted players in the second-biggest scandal of the Cuomo administration.

They're back, and looking for the U.S. Supreme Court to overturn their convictions, a move that could have big implications for fraud cases and the prosecution of public corruption in years to come.

If Monday's oral arguments in the duo of cases are any indication, chances of that happening are looking pretty good, our Josh Gerstein wrote . In an unusual display of bipartisan consensus, both conservative and liberal justices questioned the legal justifications used by former U.S. Attorney Preet Bharara's office when he pursued the cases as part of his anti-corruption crackdown.

"What is curious about this case is that the State of New York doesn't seem to be upset about this arrangement," said Justice Clarence Thomas, a George H.W. Bush appointee. He pointed out that it was federal, rather than state, authorities who went after Percoco. "It seems as though we are using a federal law to impose ethical standards on state activity."

The justices also expressed skepticism about the strength of the specific type of fraud charges prosecutors used to nail defendants for bid-rigging in Gov. Andrew Cuomo's Buffalo Billion project. "Why did they go down this road?" asked Justice Elena Kagan, an Obama appointee.

Decisions aren't expected until June, but they have the potential to set powerful precedent by limiting the scope of how prosecutors pursue alleged corruption. And after all these years, they might give Joe, Alain and Louis slightly happier endings than most of us expected.

IT'S TUESDAY and state agency budget requests are due . Good luck, state agencies! 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? Making an economic development announcement on Long Island.

WHERE'S ERIC? Delivering an address on the mental health crisis in New York City and hosting an Albanian heritage celebration.

 

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WHAT CITY HALL IS READING

" Brooklyn Democratic Machine Appoints Little Pakistan Residents to Party Posts Without Their Knowledge ," by THE CITY's George Joseph and Yoav Gonen: "At least ten people living in Brooklyn's Little Pakistan neighborhood were appointed to obscure but meaningful positions within the borough's Democratic Party organization without their knowledge in October, an investigation by THE CITY has found. The irregular appointments were for the 'county committee,' a body of neighborhood representatives across the borough who vote on the party's rules and its nominees for special elections in deliberations that have become flashpoints of heated intra-party rivalries."

" Migrants still being turned away despite lining up for hours outside NYC ICE offices ," by New York Post's Desheania Andrews and Emily Crane: "Desperate migrants are still lining up overnight outside New York City's ICE headquarters in wintry temperatures — only to be turned away by security guards because the backlogged agency has already reached its apparent daily quota to process them."

" FDNY makes diversity push with 5 new measures signed into law by Mayor Adams ," by New York Daily News' Michael Gartland: "The FDNY's efforts to diversify its ranks are likely to pick up steam under five new measures Mayor Adams signed into law Monday morning at the department's Randalls Island training facility. The laws — all of which went into effect immediately after being signed — require that the FDNY implement a plan to hire more women and nonwhite firefighters, upgrade firehouses to accommodate women's privacy and submit an annual report focused on the demographic composition of firehouses around the city."

" MTA to spend more than $1B on accessibility upgrades ," by WNYC's Stephen Nessen: "The MTA is moving forward with more than $1 billion worth of accessibility upgrades. It's the latest step in the agency's recent commitment to build more elevators and ramps. The agency's board is scheduled to vote this week on a slate of contracts for the improvements, which will add elevators or replace old ones at 14 subway stations and nine Long Island Rail Road stations. One of the proposed contracts — valued at $965 million — covers the installation of 21 new elevators at eight stations across the city, as well as 14 elevator replacements at five other stations."

WHAT ALBANY'S READING

" Buffalo gunman pleads guilty in racist supermarket massacre ," by The Associated Press' Carolyn Thompson: "The white gunman who massacred 10 Black shoppers and workers at a Buffalo supermarket pleaded guilty Monday to murder and hate-motivated terrorism charges, guaranteeing he will spend the rest of his life in prison. Payton Gendron, 19, entered the plea Monday in a courthouse roughly two miles from the grocery store where he used a semiautomatic rifle and body armor to carry out a racist assault he hoped would help preserve white power in the U.S."

" Hochul plans renewed push against illegal guns ," by Spectrum's Nick Reisman: "Gov. Kathy Hochul plans to propose 'a very comprehensive' plan to staunch the tide of illegal guns into New York, she signaled on Monday ahead of her State of the State address in the coming weeks. Hochul indicated the push against illegal guns will be part of her 2023 agenda as she concludes her first full year in office and begins a full, four-year term at the start of the year. The governor did not give specifics on her plan, but does plan on expanding resources for the State Police as well as leaning on an existing multi-state task force that started earlier in the year to tackle the issue of illegal firearms."

" 'Profile in courage' – Gov. Hochul vetoes dozens of bills now that election is over ," by New York Post's Zach Williams: "New York Gov. Kathy Hochul has unleashed a spigot of gubernatorial rejection over the past week after going 11 months without vetoing a single standalone bill passed by the state Legislature this year. Records show her issuing at least 51 vetoes since the Nov. 8 election after refusing to take a stance on many touchy issues while courting support from voters and Albany Democrats as Republican challenger Lee Zeldin was breathing down her neck."

" Campaign donations, spending in NY governor's race highest in 20 years ," by Newsday's Michael Gormley: "This year's race for New York governor was fueled by more than $78 million in campaign donations and more than $68 million in spending, which doubled the figures for each of the last four gubernatorial races to a level unseen in 20 years, according to state records. Democratic Gov. Kathy Hochul raised more than $55 million and spent more than $47 million on the race she won. Her Republican opponent, Rep. Lee Zeldin of Shirley, raised more than $23 million and spent more than $16 million. …

"Those figures don't include millions of dollars more spent by what are often national partisan groups operating as independent expenditure committees, which often air negative TV ads and by law are supposed to be independent of campaigns. Such committees spent at least $21 million in support of Zeldin and at least $500,000 in support of Hochul."

#UpstateAmerica: Retired Price Chopper CEO Neil Golub wants you to think about calling the city "New Schenectady" to reflect its new vibes.

TRUMP'S NEW YORK

" At Trump Org. fraud trial, defense rests and deflects blame ," by The Associated Press' Michael R. Sisak: "The defense rested Monday at the Trump Organization's criminal tax fraud trial after a contentious day in court, putting the case involving former President Donald Trump's real estate empire on track for deliberations next week. Trump Organization lawyers contend that Manhattan prosecutors are seeking to punish the company for longtime finance chief Allen Weisselberg's scheme to avoid personal income taxes on company-paid perks such as an apartment and luxury cars."

 

GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is featuring a special edition of our "Future Pulse" newsletter at the 2022 Milken Institute Future of Health Summit from Dec. 6 to 8. The newsletter takes readers inside one of the most influential gatherings of health industry leaders and innovators solving the biggest global health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE .

 
 
AROUND NEW YORK

— "A Rikers Officer Had Sex With a Detainee. It Took 7 Years to Fire Him ."

— A new LIRR station can open at Grand Central Terminal next month after the feds granted a waiver to a safety regulation requiring a specific technology that prevents train crashes.

— Just a handful of cases were filed in the opening weekend of the Adult Survivors Act.

— Mediation between the Roman Catholic Diocese of Albany and plaintiffs who sued under the Child Victims Act is being described as a "complete and total waste of time."

— A Queens elementary school has so many new homeless students that staff had to create a free store for clothing and food.

— The state budgeted the money, but has made little progress bringing 1,000 shuttered psychiatric beds back into service.

— A Jamaican preacher and alleged ISIS marriage broker is on trial in Manhattan under charges of recruiting for the Middle East extremist group.

— A Suffolk County police officer earned the nickname "Baby Whisperer" after delivering five babies within five years.

— Horatio Sanz settled a lawsuit that accused him of sexually assaulting an underage superfan at a "Saturday Night Live" afterparty.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Rahm EmanuelMargaret Carlson … CNN's Pamela BrownMadeline RyanGeoff Ogunlesi Chris Frates of Storyline … Alexandra Ulmer Alissa de Carbonnel

MAKING MOVES — Jasmin Alemán is now congressional affairs specialist at the Office of the Comptroller of the Currency. She most recently was a legislative assistant for Rep. Ritchie Torres (D-N.Y.) and is a Chuck Schumer alum. … Aimee Vargas has been named senior adviser to the dean of the NYU Silver School of Social Work. She is the former director of downstate intergovernmental affairs in the Cuomo administration. …

… Liz Amster will be chief of staff for Rep. Jake Auchincloss (D-Mass.). She previously was chief of staff for Rep. Kathleen Rice (D-N.Y.). … Dorothy DeWitt is now chief counsel for finance for Sen. Kirsten Gillibrand (D-N.Y.). She most recently was director of the CFTC's Division of Market Oversight.

SPOTTED: Chris Christie and Michael Cohen separately at the New York Rangers/New Jersey Devils game. Cohen went over to say hi to Christie during intermission. Christie caught a puck and handed it to a kid, earning a big ovation.

WHAT WALL STREET IS READING — " Oz Senate Defeat Opens Door to Ex-Hedge Fund CEO McCormick for Another Run ," by Bloomberg's Katherine Burton, Sridhar Natarajan and Gregory Korte

WEDDING — Jordan Emont recently married Sammy Greissman. The two are resident physicians at Columbia-New York Presbyterian Hospital, with Emont an OB/GYN and Greissman in internal medicine. Emont is also a freelance photographer. The couple met in graduate school at Yale doing their Master of Public Health degrees. Pic by Robin Ernst

Real Estate

" NY Seeks To Close Rent Aid Portal As Soon As Mid-January ," by Law360's Emma Whitford: "A New York agency tasked with distributing billions in federal rent aid wants permission to close its tenant application portal as soon as Jan. 15 in light of insufficient funding, according to a recent state court filing. Barbara Guinn, executive deputy commissioner of New York's Office of Temporary and Disability Assistance, laid out her stance in a 17-page affidavit Wednesday, seeking leave to eliminate a major lingering pandemic-era eviction defense. Currently, tenants who apply for rental assistance generally see a pause in any pending eviction case."

" Struggling Ida victims were entitled to 18 months of rental aid. Fewer than 300 in NY and NJ got it. ," by WNYC's Karen Yi: "When the remnants of Hurricane Ida struck in September 2021, FEMA distributed short-term housing aid to 19,500 displaced residents in New Jersey and New York — enough to pay up to two months of rent. But Gothamist found fewer than 300 — about 1.5% — of those New Jersey and New York residents received the additional rental assistance FEMA offered, meant to help disaster victims for as much as 18 months after the storm. The agency said it doesn't know how many people applied for continued aid, but advocates said most homeowners they heard from were never told the extra assistance was available in the first place."

" City Watch: Live Next to a Vacant Apartment? This Housing Group Wants to Know ," by City Limits' David Brand: "The notion that property owners are holding rent-stabilized apartments off the market amid New York City's housing shortage has fueled outrage among tenant groups and elected officials in recent weeks. … The problem is, no one actually knows how many apartments are actually being deliberately 'warehoused' or why landlords have opted not to rent them out. ... In the absence of specific data, the housing organization Open New York has launched a project asking everyday residents to crowdsource the locations of vacant apartments—rent-stabilized and unregulated units alike—to paint a more complete picture."

 

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