Two Companies Under Scrutiny Increased Donations to Cuomo

A former aide to New York Gov. Andrew Cuomo, a focus of a federal public corruption probe, reported at least $70,000 in income from two companies that had business before the state and had contributed to the governor’s re-election campaign.

According to people familiar with the matter, the federal investigation is looking at payments that Joseph Percoco, Mr. Cuomo’s former aide and re-election campaign manager, reported he received from COR Development Co. LLC, a developer, and CHA, a civil engineering firm previously known as Clough, Harbour & Associates LLC, and whether the firms received beneficial treatment from the state.

Mr. Percoco’s annual financial disclosure statements show he received payments from both companies in 2014. According to the reports, he received between $50,000 and $75,000 from COR and between $20,000 and $50,000 from CHA.

A lawyer for Mr. Percoco didn’t respond to a request for comment. On Friday, his lawyer described his client as a “dedicated and effective public servant.”

Michael McGovern, a CHA lawyer, said Monday that the firm cooperated fully with Manhattan’s U.S. attorney’s office. Based on those discussions, he said, “It is our understanding that we are not a target of the investigation.”

A spokeswoman for COR said the company didn’t “hire, retain or pay Joe Percoco in any capacity” and intended to cooperate with any investigation. She declined to comment on the company listed on Mr. Percoco’s 2014 disclosure statements.
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Andrew Cuomo Defends Ex-Aide Joseph Percoco

Two Companies Under Scrutiny Increased Donations to Cuomo 1

On Monday, Mr. Cuomo said Mr. Percoco told him when he became his campaign manager that “he might be accepting consulting arrangements with other companies.” Still, he said Mr. Percoco never told him if he did or from whom. Mr. Cuomo also said he never asked.

COR and CHA have been deeply involved in state-funded projects in upstate and central New York, particularly several redevelopment initiatives connected to the State University of New York Polytechnic Institute.

When Mr. Percoco reported receiving the payments from these companies, he spent much of the year working as campaign manager for Mr. Cuomo’s 2014 re-election bid, coinciding with a significant increase in donations to the governor’s campaign from CHA.

Between 2013 and 2014, Clough, Harbour & Associates donated $160,000 to Mr. Cuomo’s campaign, according to filings with the state Board of Elections. Before that, the one reported contribution from the firm to Mr. Cuomo was $1,000 in 2010. The company gave another $35,000 to the governor’s campaign in 2015.
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In 2013, COR executives and LLCs affiliated with the company contributed $187,500 to Mr. Cuomo’s campaign, up from $60,000 in 2012 and $15,000 in 2011.

Before January 2011, the only contribution from those parties was a $5,000 donation from COR President Steven F. Aiello in 2010.

According to the state comptroller’s records, Steven F. Aiello’s son, Steven L. Aiello, works as a project assistant for the state’s Division of Military and Naval Affairs. He didn’t respond to a request for comment.

According to his LinkedIn page, he previously worked as director of operations on Mr. Cuomo’s 2014 re-election campaign.

Investigators also examine payments appearing to originate from Competitive Power Ventures Holdings LLC, and people familiar with the matter said that in that case, it seems the payments were made to Mr. Percoco’s wife, Lisa Toscano-Percoco.
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Mr. Percoco’s 2014 filing lists his wife as receiving between $75,000 and $100,000 from Chris Pitts LLC, while his 2012 filing showed her receiving between $5,000 and $20,000 from the same entity. His 2013 filing wasn’t available from the Joint Commission on Public Ethics, but Mr. Percoco worked as an aide to the governor in 2012 and 2013.

A person familiar with the matter said Chris Pitts has worked as an outside consultant to CPV, an energy company. Ms. Toscano-Percoco couldn’t be reached for comment.

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In a statement Monday, a CPV spokesman said the company had been contacted by the U.S. attorney’s office “to provide information related to past engagements with a few consultants.” The company is cooperating with the investigation, the spokesman said.

CHA is the lead architect and engineer on the RiverBend project, a business and manufacturing hub in Buffalo. Since 2013, it has been a central piece of Mr. Cuomo’s redevelopment initiative, Buffalo A Billion. The RiverBend project is managed by a nonprofit corporation connected to SUNY Polytechnic Institute, and the lead developer, LPCiminelli, is a major donor to the governor.

An attorney for LPCiminelli said Friday that the firm has cooperated with the investigation and will continue to do so.

Earlier Coverage

Former Aide Pushed Gov. Andrew Cuomo’s Agenda Behind the Scenes (May 1)
Federal Prosecutors Investigate People Close to Governor Over Buffalo Project (April 29)
Former Cuomo Aide Draws Scrutiny as Ties to Governor Persist (April 21)

CPV is building a power plant in Wawayanda in Orange County, a project that began before Mr. Cuomo took office but that his administration has since supported. CPV gave $6,500 to Mr. Cuomo’s campaign in November 2012.

For its part, COR was in 2012 named the lead developer on a $342-million redevelopment of Syracuse’s Inner Harbor, a project the governor has promoted.

In 2013, COR was selected to build a nanotechnology center for the SUNY College of Nanoscale Science and Engineering, a project managed by the same SUNY nonprofit as Riverbend.

According to state records, COR is also building a lighting manufacturing center at the same site as the SUNY Polytechnic Institute, which will be supported by $90 million in state funds. A film-production hub at the site, also built by COR, will be affiliated with the SUNY nanoscale college.

Mr. Cuomo and SUNY Polytechnic’s president, Alain Kaloyeros, have touted the economic potential of such partnerships between private companies and the state, even as federal investigators appeared to scrutinize the contracting process behind them.

Last year, subpoenas were sent to several entities involved in the Riverbend project, including LPCiminelli, SUNY Polytechnic Institute, and the state’s economic development corporation.

On Friday, Mr. Cuomo’s office said the federal investigation had “raised questions of improper lobbying and undisclosed conflicts of interest” by people who may have deceived and defrauded the state in connection with the Buffalo Billion and nanotechnology hubs. The statement said Mr. Cuomo had ordered a full review of the program.

SUNY Polytechnic has defended the integrity of its contracting process.