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Day three of Bruno trial

It's day three in the federal corruption trial of former Senate Majority Leader Joe Bruno.

Francis Collins, Bruno's former counsel, and currently a state Court of Claims judge, wrapped up his testimony this morning. He repeatedly stated he wasn't responsible for advising Bruno about financial disclosure forms.

The trial's fourth witness, Helen George, then took the stand. George, who worked as internal legal counsel at Wright Investors' Service, a Connecticut-based investment advisor that employed Bruno for a dozen years starting in 1994, was granted immunity for her testimony. Being granted immunity means the witness can't be prosecuted for their testimony. Only if charged with perjury would the immunity privilege be waived.

From 1994 to 1998, Bruno worked for Wright as a independent consultant. From 1998 until 2006, he was a part-time employee. For those dozen years, said George, Bruno functioned as an introducer – someone who met with potential clients, in this case union pension funds, and recommended they give Wright the power to invest their money.

A 1994 letter from the company to Bruno laid out his duties as well as disclosure requirements. Each potential client was to be informed of Bruno's affiliation with Wright. Before an investment contract was signed, a disclosure letter had to be sent to the client. According to George, she looked for but didn't find completed disclosure forms in Wright's files.

George admitted some pension fund trustees raised objections to signing the disclosure form because they didn't like working with referral agents in general. To the best of her knowledge, it was nothing to do with Joe Bruno specifically.

UPDATE: 7:08 P.M.
George acknowledged learning in a conversation with Francis Collins that the Legislative Ethics Committee had approved Bruno's job with Wright Investors' Service. However, she never received a written letter confirming such. She said she was "surprised" there was no letter. George testified that Frank Gluchowski, a lawyer for the Legislative Ethics Committee and later the legislative counsel to the Senate majority, recommended not issuing a letter because he thought it would "raise more questions than it answered."

Wednesday's other witnesses included former New York Sun reporter Bill Hammond and former Bruno press secretary Marsha White, among others. For details of their testimony, be sure to check out the next edition of The Legislative Gazette on Nov. 10.

First witnesses testify at Bruno trial

The first two witnesses testified this morning in the corruption trial of former Senate Majority Leader Joe Bruno.

James Featherstonhaugh, an attorney with the Albany-based firm Featherstonhaugh, Wiley & Clyne, LLP, was the lead witness. Featherstonhaugh, who introduced Bruno to the investment and brokerage firm McGinnSmith in 1992, admitted to knowledge of a financial relationship between Bruno and McGinnSmith. (Bruno would be elevated to the position of Senate majority leader in 1994.) Featherstonhaugh admitted to introducing Bruno to McGinn at the request of the firm's Chairman of the Board Tim McGinn.

The firm's chairman testified that Bruno was on the payroll. A letter sent to Bruno describing his role at the firm was admitted into evidence. According to the letter, Bruno would spearhead McGinnSmith's efforts at landing investment deals with labor union pension funds. McGinn called Bruno "a significant ally in that effort." A W-2 earnings summary, which was also admitted into evidence, showed that McGinn paid Bruno $24,500 in 1994.

McGinn said Bruno brought in investments by the hospitality workers union and the Teamsters. According to McGinn, Bruno didn't bring in funds from any entity other than labor unions.

James Featherstonhaugh told the jury that Sen. Bruno never asked him to conceal anything about his relationship with McGinnSmith.

UPDATE: 8:02 P.M.
Tim McGinn also said in his testimony that his firm offered Bruno an office, which he used about a dozen times. One interesting moment came when the chairman said his firm and Bruno intended to send our simultaneous press releases announcing the senator's job with McGinn. Bruno wasn't interested in making it public, according to McGinn.

Tim McGinn admitted having two conversations with Bruno about the ethics of working for the investment firm. According to McGinn, Bruno acknowledged the moral implications of his work, but told him it was okay. McGinn said he chose Bruno to work for the firm because he was a respected member of the community. He emphasized Bruno's life story and his success in the Legislature.

McGinn said Bruno requested payments be sent to his consulting company, Capital Business Consultants, Inc., rather than to him personally. He didn't give a reason, according to McGinn.

During questioning form Bruno's attorney Abbe David Lowell, McGinn said "it was well known" that Bruno worked for his firm and he made no effort to conceal it.

The prosecution pointed out that Bruno's compensation from the firm increased to $72,000 in 1995 from $24,500 the year before. Sen. Bruno became majority leader of the state Senate in November 1994.

The third witness of the day was Francis Collins, a New York state Court of Claims judge who served as Sen. Bruno's counsel.

Jury selected, attorneys give opening statements on first day of Bruno trial

Earlier this hour, seven women and five men were chosen as members of the jury that will determine the fate of former Senate Majority Leader Joe Bruno. Bruno is on trial facing charges that he abused his office and defrauded the government in failing to disclose his financial relationship with businesses and individuals. He has pleaded not guilty.

Five members of the potential jury pool were excused for various reasons. Prospective jurors can ask to be excused if they feel they wouldn't be able to judge the facts of the case objectively. Attorneys for either side can also request a juror be excused, sometimes without having to give a reason.

U.S. District Judge Gary L. Sharpe said he will not sequester the jury, meaning they can return home after each day. He reminded the potential jury pool to not discuss the trial with anyone or follow news coverage.

The trial is being held U.S. District Court in Albany, and may last into December.

UPDATE: 5:28 P.M.
Attorneys for the prosecution and defense delivered their opening statements this afternoon. Assistant U.S. Attorney Elizabeth Coombe spoke on behalf of the prosecution.

She said the government plans to prove that Sen. Bruno violated federal statute that entitled the public to the "honest services" of its elected officials. They plan to show that Bruno failed to disclose, and intended to keep secret, his financial relationships with investment firms and individuals. The government alleges Bruno was granted over $3 million over more than 10 years by various groups and individuals. He did this "for his own personal enrichment," Coombe said today. He "concealed and disguised" his actions.

Abbe David Lowell, a top white-collar lawyer from Washington, D.C., delivered the defense's opening statement. He does not deny many of the facts of the case, but denies what the prosecution says the facts amount to. He characterized Sen. Bruno as a "hard-working, honest public servant." He asserted Bruno never pressured anyone to take a certain action. He says witnesses will testify that the former Senate majority leader didn't violate financial disclosure forms nor hide any of his financial relationships. Lowell countered the prosecution's claim that Bruno's actions rise to the level of a "scheme" to defraud the public.

Senate Committe Seeks Answers on Cigarette Tax Sales

The Senate Standing Committee on Investigations and Government Operations is holding a hearing today at 10:30 a.m. at Borough of Manhattan Community College to discuss New York state's failure in collecting taxes on cigarettes sold to Non-Native Americans on Indian reservations, announced Committee Chairman Senator Craig M. Johnson.

Last year a law was passed that required these taxes to be collected, but the state Department of Taxation and Finance has been obstructed in their collection efforts.

Witnesses confirmed to appear include the Governor's Counsel Peter Kiernan, Deputy Commissioner of the State Department of Taxation and Finance William Comiskey, representatives from the Seneca, St. Regis Mohawk, Onondaga and Poospatuck nations, as well as representatives from New York City, local governments and the tobacco and convenience store industries, and others.

UPDATE 11:35 A.M.
“The failure to secure this badly needed revenue continues as other states – most recently Florida – have been able to reach tax collection agreements with their local Native American nations,” said Sen. Johnson in a prepared statement. “This committee wants to be helpful in crafting a solution to this problem, but first we – and the public – need to be apprised of where the state and the nations stand.”

Sampson to discuss Monserrate's fate

New York state Senate Majority Conference Leader John L. Sampson will hold a press conference at 3 p.m. today in New York City to discuss the a 9-member Senate committee that will decide the fate of Sen. Hiram Monserrate.

Monserrate was recently found guilty of misdemeanor assault against his girlfriend. Several state Democrats and U.S. Sens. Kirsten Gillibrand and Charles Schumer have asked him to step down.

You can watch live footage of the press conference here: http://www.livestream.com/nysenate

UPDATE 3:50 P.M.
Sen. Eric Schneiderman will chair a committee to decide the fate of Sen. Hiram Monserrate who was found guilty of a misdemeanor charge of assaulting his girlfriend. The other Democratic members will be: Sens. Diane Savino, Ruth Hassell-Thompson, Toby Ann Stavisky and Andrea Stewart Cousins.

The Republican Senate conference has not named its four members.

Monserrate said he would comply with the committee's decision.

Lawmakers Address Mercury Exposure

Assemblyman Robert K. Sweeney, D-Lindenhurst, lead a public hearing on mercury exposure in New York state, with Assembly members Ellen C. Jaffee, D-Suffern, and Brian P. Kavanagh, D-Manhattan, attending.

Better managing of mercury related hazardous waste and trying to phase out the use of mercury where possible are two goals of those who testified. Another key point was mercury emissions from coal-burning power plants and incinerators that release mercury into the atmosphere. Once mercury enters the atmosphere it can accumulate in large bodies of water and soil.

One factor is mercury emissions from other states’ industrial facilities travel downwind and account for a large amount of mercury pollution in New York state, said Hydrologist for United States Geological Survey Douglas Burns. Mercury emissions generated in New York account for about 20 percent of the total emissions in the state.

Elyse Kunz, director of Community Advocates for Safe Emissions, is concerned about the toxic substances coming out of the Lafarge cement facility in Ravena, Albany. She stated that the EPA in 2007 ranked Lafarge the fourth dirtiest cement kiln in the nation.

“I ask you today, please protect our community,” pleaded Kunz. “Protect the common good from avoidable health hazards and ensure that we have clear air to breath. Enact regulations to significantly reduce the hazardous pollutants from cement plants and other like it in the most stringent manner possible.”

A call to Lafarge North America was not returned at the time of this post.

UPDATE 10/21/09:

John Regan, environmental manager from Lafarge's Ravena plant said, "Our plant is strictly regulated by New York state DEC and we comply to all their laws and regulations.

“We tend to rely on the experts about issues like this," continued Regan. "We comply with the regulations, which are among the most stringent regulations in the world."

Regan cited the United States Environmental Protection Agency's nationwide data from 2007 that ranks Lafarge's Ravena plant 404th, and not the fourth as some critics have said, out of the 1,607 industrial facilities in pounds of mercury released.