Joseph Percoco, March 12, 2018/ photo credit: David Handschuh/ ALM
NEW YORK CITY—New York Gov. Andrew Cuomo's former aide Joseph Percoco was sentenced to six years in prison. In March, a jury found the governor's former executive deputy secretary guilty of soliciting and taking more than $300,000 to assist Competitive Power Ventures Inc. and real estate developer, COR Development, in their business dealings with the State of New York.
Percoco had been found guilty of conspiracy to commit honest services fraud and solicitation of bribes and gratuities.
As reported in GlobeSt.com, at the trial, federal prosecutors charged Percoco with receiving more than $287,000 from CPV, including payments to his wife, Lisa Toscano-Percoco, for a “low-show” job. The feds alleged bribe payments were made for Percoco to help CPV secure low cost state emission credits and a “lucrative long-term energy purchase agreement with the state.” This would ensure a buyer for the energy produced at CPV's plant, in which they saved approximately $100 million in development costs, according to prosecutors.
CPV was completing construction of a $900 million, 680 megawatt natural gas-fired energy plant in Orange County.
Prosecutors sought forfeiture of the money paid as bribes, as reported in The New York Law Journal. This included $35,000 that Percoco was convicted of taking from COR Development and $285,000 from CPV. The government did not seek forfeiture of reimbursements of approximately $1,600 that Toscano-Percoco received from CPV for meals and other expenses.
“I hope that this sentence will be heard in Albany,” said Manhattan Federal District Court Judge Valerie E. Caproni, who presided over the case. She commented that it was not surprising that the citizens of New York have lost faith in their government.
Earlier this year, the former speaker of the New York State Assembly, Sheldon Silver, and the former majority leader of the New York State Senate, Dean Skelos, were both convicted of fraud.
In the past Cuomo had compared Percoco as being like a brother. He had worked on the governor's campaign and also for his father, Gov. Mario Cuomo.
Gov. Andrew Cuomo issued the following statement in response to Percoco's sentencing: “Joe Percoco is paying the price for violating the public trust. And it should serve as a warning to anyone who fails to uphold his or her oath as a public servant. On a personal level, the human tragedy for Joe's young children and family is a very sad consequence.”
Several Orange County officials have called for an investigation into the permits granted for the CPV Valley Energy Center project.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
