New York state lawmakers indicted on bribery and money laundering charges

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N.Y. State Sen. Carl Kruger and Assemblyman William Boyland surrendered to authorities on Thursday, after being charged for allegedly selling their influence to hospitals, real estate developers and lobbyists.

N.Y. Sen. Carl Kruger allegedly took over $1 million to grant political favors.

Prosecutors said that Kruger, a longtime Brooklyn Democrat, received over $1 million in bribes since 2006. Much of his illegal activities were connected to prominent Albany lobbyist Richard Lipsky, with whom he shared fees, and then took “the very official acts in favor of which Lipsky had been paid to lobby.”

In one instance, Kruger helped steer $500,000 in taxpayer monies to one of Lipsky’s clients.

The court documents claim that Kruger regularly worked with Lipsky to ensure that his clients received favorable treatment on issues that required government approval. Kruger sought to conceal the bribes and kickbacks, passing them through a bogus company called Adex Management, and then further through a shell company, Olympian Strategic Development.

Olympian was controlled by Dr. Michael Turano, the son of Kruger’s close friend Dorothy Turano, a local community board director.

Boyland, a four-term Democrat, was hired as a “no-show employee” at Brookdale Hospital, which at the time, was seeking approval in Albany for its expansion plans. Boyland picked up $177,000 under the sham arrangement.

Besides the lawmakers, several others were indicted in illegal schemes. David P. Rosen, of Medisys Health Systems, who gave Boyland the “no-show” job; hospital executives Robert Aquino and Solomon Kalish; real estate developer Aaron Malinsky and Dr. Turano.

The 53-page complaint detailed the FBI’s investigation which included bugs on Kruger and Lipsky’s phones, recording months of conversations and regular surveillance.

The men were charged on various counts of bribery, mail and wire fraud, and money laundering.

Preet Bharara, of the U.S. Attorney’s office in Manhattan said “Once again I am here to report, sadly, that the crisis of corruption continues in Albany.  Every single time we arrest a state senator or assemblyman it should be a jarring wakeup call,” he added. “Instead, it seems like no matter how many times the alarm goes off Albany just hits the snooze button.”

Information from The New York Times

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