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Dean Skelos, Extortion, New York 2016

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New York State Senate Majority Leader Dean Skelos and Son Arrested on Corruption Charges

New York State Senate Majority Leader Dean Skelos and his son Adam Skelos were taken into custody this morning on charges that they extorted those with business before New York State to make payments to Adam Skelos, with the expectation that such payments would result in official action by Dean Skelos.

The defendants were also charged with bribery and honest services fraud schemes. Among other things, Dean Skelos is accused of illegally obtaining a $20,000 payment for Adam Skelos from a large real estate developer dependent on Dean Skelos for tax breaks and a $10,000 monthly payment from an environmental technology company seeking government-funded contracts in New York State.

U.S. Attorney Preet Bharara said: “As the Complaint charges, in six counts, Dean Skelos unlawfully used his power and influence as Senate Majority Leader, repeatedly, to illegally enrich his son, Adam Skelos, and indirectly, himself. And, more specifically, the Complaint, in multiple places, alleges that Dean Skelos’s support for certain infrastructure projects and legislation was often based, not on what was good for his constituents or good for New York, but rather on what was good for his son’s bank account.”

FBI Assistant Director-In-Charge Diego Rodriguez said: “The charges announced today describe the alleged criminal activity of Dean and Adam Skelos. In particular, the defendants are alleged to have conspired to take advantage of Dean Skelos’s powerful position within state government to influence and extort those with business before the state. When all was said and done, Dean Skelos is charged with having caused more than $200,000 to be paid to Adam Skelos in exchange for backdoor bribes.”

According to the allegations contained in the Complaint unsealed today in Manhattan federal court, Dean Skelos used his power to pressure companies with business before New York State to make payments to his son, Adam Skelos, who substantially depended on these companies for his income. Dean Skelos and Adam Skelos were able to secure these illegal payments through implicit and explicit representations that Dean Skelos would use his official position to benefit those making the payments, which Dean Skelos in fact did when it was necessary to ensure that the payments to Adam Skelos continued.

Dean Skelos is accused of obtaining over $200,000 in payments to Adam Skelos through persistent and repeated pressure applied to a senior executive of a major real estate developer (“Developer-1”) who is cooperating with the Government and referred to in the Complaint as CW-1. In response to this pressure, CW-1 arranged for Developer-1 to pay $20,000 to Adam Skelos and further arranged for an environmental technology company (the “Environmental Technology Company” or “Company”) in which Developer-1’s founding family and CW-1 owned stakes to make $10,000 monthly payments to Adam Skelos.

Dean Skelos and Adam Skelos surrendered to the FBI in Manhattan this morning, and are scheduled to appear before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court later today.

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