United States v. Percoco

317 F. Supp. 3d 822
CourtDistrict Court, S.D. Illinois
DecidedMay 10, 2018
Docket16-CR-776 (VEC)
StatusPublished
Cited by1 cases

This text of 317 F. Supp. 3d 822 (United States v. Percoco) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Percoco, 317 F. Supp. 3d 822 (S.D. Ill. 2018).

Opinion

VALERIE CAPRONI, United States District Judge:

On March 13, 2018, a jury returned a verdict in the trial of Defendants Joseph *825Percoco, Peter Galbraith Kelly, Jr., Steven Aiello, and Joseph Gerardi (the "January Defendants").1 Prior to charging the jury, the Court dismissed one count of extortion under color of official right as to Percoco, pursuant to Federal Rule of Criminal Procedure 29(a). See Order (Feb. 28, 2015), Dkt. 515. This opinion explains the reasons for the Court's ruling.

BACKGROUND

I. Facts2

The Government charged Percoco with engaging in two extortion schemes: one related to an energy company, Competitive Power Ventures ("CPV"), and the other related to a real estate company, COR Development Company LLC ("COR Development" or "COR"). See Complaint, Dkt. 1; Second Superseding Indictment (Sept. 19, 2017) ("S2 Indictment"), Dkt. 321. Only the scheme involving COR is relevant to this decision.

Until 2016, Percoco was a top aide to the Governor of New York, Andrew Cuomo. See Tr. 441-43. Percoco was a longtime friend of Cuomo, having served on Cuomo's staff when Cuomo was New York State's Attorney General and the U.S. Secretary of Housing and Urban Development. Tr. 459, 496-97, 2130-32, 3185, 3646.3 Under Andrew Cuomo, Percoco served as Executive Deputy Secretary in the Governor's office, also known as the Executive Chamber. See Tr. 443, 1103-05. In that position, Percoco oversaw numerous divisions within the Executive Chamber, including the divisions responsible for operations, appointments, and labor relations. Tr. 441-42, 457-58, 1103-05, 1119-20, 1248-49. By virtue of his position and his relationship to Cuomo, Percoco was known to be one of the most powerful members of the Cuomo administration. See Tr. 1119-20, 1183-85, 1231-32, 2092, 2098, 2197, 3185.

In April 2014, Percoco left state employment to work full time on Cuomo's reelection campaign. See GX-1206; SYR-3832; Tr. 444, 573-75, 912-14, 1016, 1185.4 Although he no longer held an official position, Percoco continued to use his office and telephone in the Executive Chamber, and he continued to exercise influence over numerous state projects, operations, and personnel. See, e.g. , GX-571, GX-669, GX-676, GX-1507, GX-1701, GX-1702; Tr. 1127-28, 1231-35, 1249-52, 2379-80, 2410-17, 2535-37, 4964-68. According to cooperating witness Todd Howe, "regardless of whether [Percoco] was [on] the campaign ... he had the ability to pick up the phone and get things done." Tr. 2098.

In the summer of 2014, Empire State Development ("ESD"), a state agency, told COR that the company would need to enter into a "labor peace agreement"

*826("LPA") in order to receive a state grant to help finance a project that COR was developing in the Syracuse Inner Harbor area. See GX-513, GX-551; Tr. 643-46, 660-61, 2533-34. Because COR believed that having an LPA would make the project more costly, Aiello and Gerardi, two executives at COR, sought assistance from Percoco to reverse ESD's decision to require the LPA. See GX-551, GX-556A, GX-1706. In late July 2014, Aiello emailed Howe, who was a consultant for COR, asking, "[I]s there any way [Percoco] can help us with this issue while he is off the 2nd floor [i.e. , not employed by the Governor's office] working on the Campaign[?]" GX-550. Less than two weeks later, COR paid Percoco $15,000, routed through Howe. GX-1401I, GX1420H, GX-1606A; Tr. 2098-99, 2479-80.5 Howe, Aiello, Gerardi, and Percoco exchanged a number of emails about the LPA throughout the summer and fall of 2014. See, e.g. , GX-1707 (collecting emails). In October 2014, COR paid Percoco another $20,000, again routed through Howe. GX-1401J, GX-1420L, GX-1606B; Tr. 2098-99, 2483-84.

In early December 2014, Gerardi reached out to Percoco through Howe because ESD was continuing to press COR to enter into an LPA. See GX-583, GX-586, GX-588, GX-1706. Approximately one hour later, Percoco called Andrew Kennedy, an employee in the Governor's office, and told Kennedy to stop ESD from requiring COR to enter into the LPA. See GX-1706; Tr. 475-76, 1272-76. Kennedy subsequently contacted an official at ESD, causing a flurry of calls and emails among the agency's staff. See GX-1706; Tr. 682-85, 1274-76. The next day, ESD told COR that it would no longer require an LPA for the project. See GX-590, GX-1706; Tr. 685-86.

A few days later, Percoco returned to state employment. See GX-1206; Tr. 444, 1016. Subsequently, in mid-2015, Percoco pressured state officials to release funds that had been allocated to one of COR's projects, see GX-1703, and, later that year, he secured a raise for Aiello's son, who worked in the Executive Chamber, see GX-1704.

II. Procedural History

Before the case was submitted to the jury, the Court asked the parties to address whether Count Eight,6 which charged Percoco with extortion under color of official right, 18 U.S.C. § 1951, in relation to the COR Development scheme, must be dismissed because Percoco did not hold any official position at the time that he received payments from COR Development. Tr. 3689-90. The Court entertained numerous arguments on this question in the following days. See Tr. 3985-90, 4228-46, 5489-5502, 5740-61; Percoco Ltr. (Feb. 19, 2018), Dkt. 490; Gov. Ltr. (Feb. 20, 2018), Dkt. 494. At the close of all of the evidence, the Court dismissed Count Eight pursuant to Rule 29(a) and indicated that a written opinion would follow. See Order (Feb. 28, 2018), Dkt. 515; Tr. 5757.7

*827DISCUSSION

I. Legal Standard

Under Rule 29(a), a court must "enter a judgment of acquittal of any offense for which the evidence is insufficient to sustain a conviction." Fed. R. Crim. P. 29(a). "[T]he relevant question is whether, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt." United States v. Taylor , 475 Fed.Appx. 780, 781 (2d Cir. 2012) (quoting Jackson v. Virginia , 443 U.S. 307, 319, 99 S.Ct. 2781

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Bluebook (online)
317 F. Supp. 3d 822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-percoco-ilsd-2018.