Corruption Charges Sully Economic Development Scheme in Upstate New York

Though he was elected while promising to clean up corruption in the state government, recent corruption charges are hitting New York Governor Andrew Cuomo's inner circle.

1 minute read

September 25, 2016, 1:00 PM PDT

By James Brasuell @CasualBrasuell

New York State Capitol

The New York State Capitol in Albany. | Kyle Lee / Shutterstock

"Two high-ranking officials in the administration of Gov. Andrew Cuomo, Joe Percoco and Alain Kaloyeros, were charged Thursday by federal agents as part of a sweeping probe of the administration's economic development efforts," reports Jimmy Vielkind.

The complaint by U.S. Attorney Preet Bharara's office "alleges Percoco extorted developers who built multi-million dollar facilities for the SUNY Polytechnic Institute, which was led by Kaloyeros. It also alleged that Kaloyeros and developers rigged the construction bids for several facilities, which the Democratic governor has touted as a cornerstone of legacy in upstate New York."

The SUNY Poly will be familiar to anyone following the "Eds and Meds" approach to economic development. According to Vielkind, "SUNY Poly has slowly grown next to the University at Albany as the site of a research consortium for chip manufacturers."

"Under its model of economic development, public entities own research tools that are then leased to private companies whose scientists and engineers have helped the Capital Region’s economy bloom," adds Vielkind.

Bharara emphasized during the press conference that Governor Cuomo had not been charged, "but the indictment is a blow to Cuomo," according to Vielkind. A lot more detail about what's known of the charges and the responses from the accused and Governor Cuomo's office is included in the article.

Thursday, September 22, 2016 in Politico New York

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