A lobbyist for a real estate developer with ties to New Rochelle Mayor Noam Bramson has been indicted in a federal public corruption probe.
Richard Lipsky, a lobbyist employed by Forest City Ratner, has been indicted on allegations of paying bribes to New York State Sen. Carl Kruger (D-Brooklyn). Vice President of Governmental Affairs and Public Relations Bruce Bender is also identified in the complaint for his role in seek funds from Kruger last December for three projects — $9 million for a bridge related to the Atlantic Yards project; $2 million for the Mill Basin retail development in Brooklyn; and $4 million for a skating rink in Prospect Park. Mr. Bender’s wife, Amy Bender, is on the board of the Prospect Park Alliance, the park’s fund-raising group.
Referred to in the charging document as “a significant real estate development firm (“Real Estate Developer #1″)”, Forest City employed Richard Lipsky up until Wednesday when the developer terminated the relationship.
Forest City Ratner is the developer behind the Echo Bay Development project in New Rochelle which recently received an extension of a Memorandum of Understanding. Mayor Noam Bramson aggressively pushed through the M.O.U. after a series of secret meetings with City officials and refusing to allow public comment on a revised development plan. Bramson has received thousands of dollars in campaign donations from the Ratner family. Bramson also receives tens of thousands of dollars a year in payments from Rep. Nita Lowey (D-NY) who has, in turn, also received funds from the Ratner family. Bramson has been the most vocal proponent for the Forest City Ratner plan to develop Echo Bay.
In a similar scheme, Yonkers officials were indicted in 2010 for their involvement in a bribery scheme involving a Forest City Ratner project in Yonkers.
Forest City Ratner, the developer behind the Echo Bay Redevelopment Project in New Rochelle, has been implicated in a scheme to bribe former Yonkers City Councilwoman Sandy Annabi. The one time Democratic Majority Leader of the Yonkers City Council turned herself into the FBI in White Plains this morning. She has been accused of receiving more than $160,000 In secret payments to change her votes on to Yonkers development projects. The Indictment also charges Zehy Jereis, the former head of the Yonkers Republican Party, and Anthony Mangone a Westchester County attorney, with conspiracy, bribery, and extortion in connection with two real estate development projects within the City of Yonkers which were pending before Annabi..
Annabi and Jereis are due to stand trial in Federal court on June 20th.
The charging document is here: Kruger DOJ Complaint
Highlights:
KRUGER and LIPSKY’s Corrupt Scheme
33. As set forth above, between November 2006 and the end of December 2010, RICHARD LIPSKY, the defendant, caused a total of over $250,000 to be paid from Richard Lipsky Associates, Inc., and/or RLA Strategic Planning Corp. to the Olympian Bank Account and/or the Bassett Bank Account. Based on my review of calls intercepted, pursuant to judicial authorization, on LIPSKY’s cellphone (LIPSKY Phone”) from on or about December 1, 2010, through in or about March 2011, and based on my review of, among other things ” public records, bank records, surveillance I and calls intercepted on the KRUGER Phone,’ I believe that LIPSKY paid these bribes to Olympian and Bassett to obtain official benefits from CARL KRUGER, the defendant. Specifically, between November 2009 and the present, KRUGER has taken a number of official actions to benefit the clients of LIPSKY’s lobbying business, and, as a result, LIPSKY. These clients included, among others, as defined below, Real Estate Developer #1, Beverage Distributor #1, the Supermarket Retailer, and an Albany- based lobbying firm, and the Retail Coalition. . Among other things, and as set forth below, KRUGER has sponsored or supported legislation aimed to further the interests of LIPSKY’s clients; has provided active support for causes important to LIPSKY’s clients, including by lobbying other elected and unelected officials; and has caused the disbursement of state funds to one of LIPSKY’s clients, namely, Real Estate Developer #1.
2.
13. RICHARD LIPSKY, the defendant, is a professional lobbyist and has been the principal of Richard Lipsky Associates, Inc., since approximately 1981. According to publicly filed documents, LIPSKY’s clients include, among others, a significant real estate development firm (“Real Estate Developer #1”) which is spearheading an over $4 billion, multi-year, mixed-use commercial and residential development project in Brooklyn,’ New’ York, as well as various unions and· associations, food retail businesses, supermarkets, and beverage distributors.
3.
50. Calls intercepted on the KRUGER Phone reveal that’ CARL KRUGER, the defendant, spoke directly with the Vice President of Governmental Affairs and Public Relattons for Real Estate Developer #1 (the “Vice President”). Based on my training and experience and other investigation in this case, I believe the calls between KRUGER and the Vice President related to a variety of real estate development projects and, spetifically, to KRUGER’s ability, in his official capacity, to help Real Estate Developer #1 on its various projects.
This Can’t Be True- Can It?
The very same Forest City who greased the wheels of the Bramson campaign?
Who tells city council – if we don’t make 8% on our investment the taxpayers will have to make up the difference?
Who pulls the plug on 26 acre Echo Bay hoping to get only the city land, for free, and no guarantee on the rest?
Who refuses when councilperson asks FC to assure that a measly 20,000 be made available in the event the city needed it to complete their study to help FC move forward?
Who pulls an end run on the veterans and preservationists to exclude them from talks to rehab the Armory?
Who continues to hold the city hostage by shutting out any and all alternative plans for Echo Bay until FC is solvent enough to do what THEY want?
Bramsons pets? Or is it the other way around?
Makes me think of some adjectives
Bribery, corruption, extortion, hostage taking, campaign finance pay to play, and generally sticking it to the residents.
Such a deal