U.S. Supreme Court tosses former Cuomo aide's bribery conviction
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[May 12, 2023]
By Nate Raymond and Andrew Chung
(Reuters) -The U.S. Supreme Court on Thursday overturned the bribery
conviction of Joseph Percoco, an ex-aide to Democratic former New York
Governor Andrew Cuomo, in a ruling that further limits the ability of
federal prosecutors to pursue corruption cases.
The justices ruled 9-0 in favor of Joseph Percoco, Cuomo's former
executive deputy secretary who was charged in 2016 as part of a
corruption crackdown by federal prosecutors in Manhattan centered on the
halls of the state capital of Albany.
In Percoco's case, the jury was required "to determine whether he had a
'special relationship' with the government and had 'dominated and
controlled' government business," conservative Justice Samuel Alito
wrote in the court's opinion. "We conclude that this is not the proper
test for determining whether a private person may be convicted of
honest-services fraud, and we therefore reverse and remand for further
proceedings."
Percoco was convicted in 2018 and sentenced to six years in prison for
seeking $315,000 in bribes in exchange for helping two corporate clients
of Albany lobbyist Todd Howe seeking state benefits and business.
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Thursday's ruling represented the latest in recent years in which the
court, which has a 6-3 conservative majority, has limited prosecutors in
political corruption cases. In 2020, it overturned the convictions of
two aides to Republican former New Jersey Governor Chris Christie in the
"Bridgegate" political scandal. In 2016, it threw out Republican former
Virginia Governor Robert McDonnell's bribery conviction.
The Supreme Court heard arguments in November in the case involving
Percoco and a related one involving former construction company
executive Louis Ciminelli. The justices also unanimously overturned
Ciminelli's conviction on Thursday.
Percoco's attorney, Yaakov Roth, said he was "gratified" with the
court's decision, calling the prosecution an abuse of the federal fraud
statutes that "blurred the fundamental line between private citizens and
public officials."
The U.S. Justice Department declined to comment.
Percoco was convicted alongside an executive at a real estate developer,
Steven Aiello, who prosecutors said orchestrated bribes to Percoco. Howe
pleaded guilty and cooperated with investigators. Prosecutors said
Percoco referred to the payments as "ziti," a type of pasta that became
a term for money by characters in "The Sopranos" mobster TV series.
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![](../images/051123PIX/news_a48.jpg)
Joseph Percoco (L), former aid to New
York Governor Andrew M. Cuomo, walks out of the Manhattan Federal
Courthouse in New York, September 22, 2016. REUTERS/Bria Webb/File
Photo
![](http://archives.lincolndailynews.com/2023/May/12/images/ads/current/heartlandcollege_lda_050123.png)
At the time of the actions at issue, Percoco was no longer serving
in government as Cuomo's aide but instead managing the governor's
2014 re-election campaign, a fact his lawyers said meant he could
not be convicted of bribery.
Defense lawyers argued that Percoco's status as a private citizen
meant that his acceptance of money to convince the government to do
something indicated he was not a criminal but a lobbyist who was
free to be paid for his influence.
The New York-based 2nd U.S. Circuit Court of Appeals in 2021 upheld
his conviction, finding Percoco had a guaranteed job in Cuomo's
administration post-election and in the interim exercised enough
influence over government decision-making to owe a duty to the
public.
The charges against Percoco and Ciminelli were pursued by former
Manhattan U.S. Attorney Preet Bharara, an appointee of President
Barack Obama. Bharara also brought corruption cases against top
state lawmakers including former Assembly Speaker Sheldon Silver.
Cuomo was not charged but resigned in 2021 in an unrelated sexual
harassment scandal.
The case involving Ciminelli focused on Howe's role as a consultant
hired to help administer Cuomo's $1 billion revitalization
initiative for the Buffalo, New York, area - dubbed the "Buffalo
Billion."
Prosecutors said executives at two companies including Ciminelli
conspired with Howe and Alain Kaloyeros, who oversaw the project's
grant application process, to rig bids to ensure contracts went to
their firms.
![](http://archives.lincolndailynews.com/2023/May/12/images/ads/current/chuckglass_sda_SHG_2023.png)
Ciminelli was convicted alongside Kaloyeros, the former president of
State University of New York's Polytechnic Institute, and developers
Joseph Gerardi and Aiello. They also have asked the Supreme Court to
reverse their convictions.
Ciminelli's lawyers argued that prosecutors relied on an invalid
legal theory of wire fraud that involved depriving a victim not of
tangible property but of economically valuable information.
(Reporting by Nate Raymond in Boston; Additional reporting by Andrew
Chung in New York and John Kruzel in Washington; Editing by Will
Dunham)
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