Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Ex-Cuomo aide, eight others charged in New York corruption case

Stock Markets Sep 22, 2016 10:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. New York Governor Andrew Cuomo with his aide Joseph Percoco at the Hotel Nacional in Havana

By Nate Raymond

NEW YORK (Reuters) - U.S. prosecutors have charged nine men in a wide-ranging corruption and fraud case in New York, including two former top advisors to Governor Andrew Cuomo, in a case involving state contracts worth hundreds of millions of dollars.

The charges announced on Thursday follow a federal investigation into Buffalo Billion, a signature $1 billion economic development project by Cuomo aimed at revitalizing the area around the one-time industrial powerhouse city of Buffalo, located near the border with Canada.

Joseph Percoco, a former executive deputy secretary to the governor, and Alain Kaloyeros, president of SUNY Polytechnic Institute were charged on Thursday along with six others in a criminal complaint filed in Manhattan federal court.

Prosecutors also revealed charges against Todd Howe, a lobbyist and a former strategic advisor to Cuomo when he was secretary of the U.S. Department of Housing and Urban Development.

Howe pleaded guilty earlier this month to charges including extortion and wire fraud and is cooperating with authorities, court papers said.

Richard Morvillo, Howe's lawyer, said his client had "accepted responsibility for his actions and will testify truthfully if called upon."

Barry Bohrer, a lawyer for Percoco, in a statement called the prosecution "an overreach of classic proportions."

Alain Kaloyeros, president of SUNY Polytechnic Institute, was also charged in the case. His lawyer, Michael Miller, declined to comment.


Cuomo announced the Buffalo Billion plan in 2012, saying the state would provide incentives, including tax credits and state grants, to induce companies to come to the Buffalo area and help revitalize the struggling region.

According the complaint, the criminal charges stemmed from two overlapping schemes involving bribes, corruption and fraud in the awarding of contracts and other state benefits.

One scheme, according to the complaint, involved efforts by Percoco, described as Cuomo's "right-hand-man" to obtain bribes from company executives seeking benefits and business from the state, which he sometimes funneled through bank accounts and a shell company Howe set up.

Howe, meanwhile, arranged for more than $315,000 to be funneled to Percoco and his wife, funded by two companies for which he was consulting, the complaint said.

These included an energy company that had obtained a $100 million contract to finance a power plant, the complaint said.

In the second scheme, Kaloyeros, who oversaw a grant application process for Buffalo Billion and similar programs, hired Howe to help develop projects and locate developers for them, the complaint said.

Howe in turn sought bribes and gratuity payments from a Syracuse real estate developer involved in the other scheme with Percoco and a Buffalo-based developer, the complaint said.

Ex-Cuomo aide, eight others charged in New York corruption case

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email