Baiting the Big Brown Bear,
FBI Subpoenas Bruno Files
And Press Learns About It
By Henry J. Stern
February 5, 2008
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Lost between the front page excitement of the New York Giants' remarkable playoff victory on Sunday and the multi-state primary held Tuesday, a story inside Monday's Times called attention to some unfinished business in Albany.
Under the headline INVESTIGATION INTO BRUNO BROADENS: Pension Fund Records of Unions Are Sought, Danny Hakim wrote on B1 that "Federal authorities have widened their investigation of the Senate majority leader, Joseph L. Bruno, issuing subpoenas to pension funds affiliated with union locals in and around the senator's Albany-area district, people with knowledge of the investigation said.
"Half a dozen union locals in the Albany area have invested tens of millions of dollars with a Connecticut investment firm that has long employed the senator. Mr. Bruno and the investment firm, Wright Investors' Service, severed their ties shortly after the New York Times revealed the investments in December, but neither has been willing to detail what the senator's job was, beyond saying it was related to "business development."
"The subpoenas, which were issued last week and seek records related to Wright and Mr. Bruno, were reported Sunday in the Times-Union of Albany. It is the first indication in several months that the roughly two-year-old federal investigation into Mr. Bruno's outside business dealings remains active."
Fredric U. Dicker in the Post, who has taken the lead in pursuing ethical issues in Albany, particularly those relating to Governor Spitzer, covered the story on p14 Monday in an item headlined FEDS PROBE UNIONS TIED TO BRUNO. The article concluded with a blind pro-Bruno quote from "a law-enforcement official."
That story ran at the bottom of the page, the top carried another Dicker story on ethics, SPITZ AIDE FACING SLAP OVER SCANDAL. The lede: "The State Public Integrity Commission could seek disciplinary action against a former top aide to Gov. Spitzer at a meeting Friday, while Senate investigators prepare for a new hearing on the Dirty Tricks Scandal four days later." We observe that " The "Dirty Tracks Scandal" has apparently replaced "Troopergate" as the Post's handle for whatever Senator Bruno's minions are now investigating.
The Albany Times-Union deserves credit for breaking the new FBI story Monday, although the officials who leaked the story should not be ignored. Dicker's article features Darren Dopp, the fall guy in what we used to call "Choppergate". It is worth reading for conspiracy buffs who have the time and energy to untangle the Albany snarl of mutual investigation.. BTW, calling Dopp the fall guy does not mean that he was innocent, but that the Spitzer defense perimeter appears to have excluded the eager beaver from its protective ring. Perhaps assisting in his search for gainful employment was sufficient.
Anti-Bruno items are not new in the press, although nothing much usually comes of them.. Over thirteen months ago, two Times articles discussed his 'business activities.' On December 20, 2006, Michael Cooper and Danny Hakim wrote BRUNO IS SUBJECT OF INQUIRY BY F.B.I. (The Times quaintly uses periods in headlines for both the FBI and the MTA). Their lede: "New York Senate Majority Leader Joseph L. Bruno, one of the three men who effectively control statea government, said Tuesday (Dec. 19) that the Federal Bureau of Investigation was looking into his business interests."
This could have been a pre-emptive disclosure by Bruno, aware that a story about the FBI inquiry was being prepared. It requires what Hillary Clinton called "a willing suspension of disbelief" to think that Bruno would, out of the blue, disclose that he was under investigation by the FBI. People do not generally make spontaneous statements on such subjects, even if they are exculpatory.
The next day, December 21, 2006, the Times published a story by Mike McIntire which gave some specifics of the inquiry. The headline: FEDERAL INQUIRY FOCUSES ON TWO BRUNO FIRMS. The lede: "Federal investigators have issued subpoenas to at least two firms linked to the state senate majority leader, Joseph L. Bruno, as part of their investigation into his business dealings, one of Mr. Bruno's former partners and a legislative aide said yesterday." One of the companies involved "Jared E. Abbruzzese. an investor in a group seeking control of the state's thoroughbred racing franchise -- a decision in which Mr. Bruno will pay a key role."
In the thirteen months between the Times articles, Mr. Bruno was not indicted by anyone. That is not a story, unless the case were presented to a grand jury which refused to indict, but there is no indication that that is the case here. In December 2006, it was Mr. Bruno himself who leaked the first negative story, but if the FBI or US attorney had done that, and no indictment resulted, it seems to us that there would be some obligation on the part of law enforcement agencies to tell the public why there was no indictmen, or to clear his name if that was justified.
Was the failure to indict a result of the intimidation of victims so they would not testify, or because in fact there were no victims of consensual business transactions, or because no crime had been committed, or could be proven on the basis of available evidence? Was there pressure on the local US attorney by Justice Department higher-ups or from former Attorney General Alberto Gonzales not to pursue the case? Of course, if that were true, it would be highly unlikely to appear in any disclosure, unless the US attorney was thoroughly disgruntled.
This week's subpoenas appear to focus on a new subject, substantial investments by unions which Bruno helped to guide. Bruno says he was employed by Wright, but no longer is. Private business is not forbidden under the rules of the legislature. The issue here is that, when the senator's 'employment' depends entirely on the political influence he exerts because of the office he holds, that employment is, in our view, a totally unacceptable conflict of interest.
Senator Bruno's self-enrichment, through employment as a consultant or a rainmaker, or through real-estate transactions, derive from situations in which he personally profited because of his public office. This conduct may or may not be criminal, depending on what evidence is discovered. The case of former Senator Guy Velella, accused of taking bribes, lingered for years before the Manhattan District Attorney, Robert M. Morgenthau, found incriminating evidence, on the basis of which the former Senator was tried and convicted.
Law enforcement officers, and most of the public, know that there are numerous homicides which cannot be prosecuted because there is insufficient evidence to convict the killer. That state of affairs applies far more frequently to bribery, which is a crime of consent, while
murder is generally non-consensual. The victim, however, is usually unable to make a complaint.
The guilty, especially if they are rich, powerful, well-connected, and represented by able counsel, or appear before pliant judges, may escape conviction for their crimes. Or the laws may be written in such a way that their actions, distasteful or unjust as they may appear to be, do not constitute crimes. It is the legislators who write the laws, and they are not inclined to criminalize their own conduct, even if to outsiders there appears to be a blatant sale of political influence.
Perhaps the most publicized Bruno episode was the hiring of his adult son, Kenneth, at a six-figure fee, to lobby for Cablevision, a firm which objected to the construction of a West Side stadium because it would be competitive with Madison Square Garden, which they owned.
Bruno and Assembly Speaker Sheldon Silver, another beneficiary of Cablevision's largesse, at least through his political commitees, both opposed the project, which was supported by Governor Pataki and Mayor Bloomberg. The votes of Bruno and Silver were sufficient to block it at the Public Authorities Control Board. Without judging the merits of the stadium or its location, we do not believe that its fate should be determined by hundreds of thousands of dollars paid to the son of a member of the Public Authorities Control Board.
The McIntire story, which appeared in the Times on December 21, 2006, contains a laundry list of Senator Bruno's alleged conflicts of interest. You should link to it for diversion, especially if you are unaware of the diversity of transactional opportunites available to a leader of the New York State Senate.
A fascinating column on this subject, JOE BRUNO'S BURDEN OF PROOF, appears on p29 of today's Daily News. Written by Bill Hammond, the column begins with advice to the senator which is unlikely to be taken. We quote:
"Now that the FBI probe of Senate Majority Leader Joe Bruno is back in the headlines, the best thing for Bruno to do -- the only thing -- is to come completely clean. Don't just take it from me. Instead, follow the guidelines laid down by one of New York's most outspoken experts in government. This expert says a high-ranking public official accused of wrongdoing, should clear the air by exposing himself to full public scrutiny..."
To discover the identity of this expert, and to learn more about the mess in Albany, we advise you to link to Bill Hammond's column. He tells the story better than we can. You will enjoy his objective analysis of the issue of full disclosure. The column is also easy to read.
Now you can return to thinking about the Giants and the primaries. Vote, if you have not already done so. The polls close at 9 p.m. in New York State.
Just keep in mind that Albany continues to fester. "The most dysfunctional legislature in the country," as the Brennan Institute called it, is now teamed with a governor who, judged by his first year alone, is worthy of his colleagues.
We again express the hope that, enlightened rather than embittered by adversity and humiliation, and strengthened by a staff that can say 'no' if circumstances require, Mr. Spitzer will fulfill the promise his background suggests and become a strong Governor.
Note: There are 55 days remaining until the legal deadline for the adoption of the state budget for fiscal 2008-09. It's time for all our friends at the Capitol to get to work. We know it is cold up there, but please do not wait until the crocuses bloom. Happy Valentine's Day..
#445 02.05.08 1714wds Do you know why? |