"Former trooper's e-mails sought - Messages deleted from computer of suspended state agency official"

By RICK KARLIN, Capitol bureau, Albany, New York Times Union

First published: Thursday, May 8, 2008

Attorney General Andrew Cuomo is turning up the heat in his investigation of possible political interference by the State Police -- demanding that the New York Power Authority tell him who deleted e-mails belonging to former police Col. Daniel Wiese, the authority's now-suspended inspector general.

Wiese, who was close to former Govs. George Pataki and Eliot Spitzer, was placed on nonpaid administrative leave on Wednesday, said NYPA spokeswoman Christine Pritchard.

Wiese had earlier been on paid leave from his $181,701 job for his alleged involvement in political espionage within the ranks of the State Police.

According to a letter that Cuomo sent Tuesday to NYPA President and CEO Roger Kelley, Wiese's e-mails were deleted on April 1 -- the same day the investigation was announced.

"It appears that NYPA's IT system deleted many past e-mails on Wiese's computer system."

"These e-mails are relevant to this investigation."

"Undoubtedly you appreciate the seriousness of this extremely troubling conduct," Cuomo said in the letter.

Cuomo also is seeking e-mails relating to Lori DiMichelle, a NYPA travel coordinator and Albert Swanson, a deputy inspector general at the agency.

Both are said to be close to Wiese.

Cuomo wants NYPA to restore the missing e-mails from backup systems and provide them to his office.

"We will do everything in our power to get to the bottom of the matter and take appropriate action -- including holding accountable any personnel who acted in an inappropriate manner," Pritchard said.

Cuomo's probe of the State Police was started last month at the behest of Gov. David Paterson.

Paterson said he's heard complaints from lawmakers who believe some members of the force may have monitored or spied on politicians who had crossed former governors.

Wiese has emerged as a central figure in the investigation.

A former bodyguard for Pataki, Wiese lives in the ex-governor's hometown of Garrison.

He could not be reached for comment.

Wiese was named in Albany County District Attorney David Soares' investigation of aides to former Gov. Eliot Spitzer who used the State Police to gather information on Senate Majority Leader Joseph L. Bruno, Spitzer's chief political rival.

Soares found no criminal wrongdoing but concluded Spitzer may have lied about his role in the plot.

Bruno said Wednesday he was confident that Cuomo would conduct a complete investigation and he expressed surprise that NYPA computer files would have been deleted.

Rick Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com. The Associated Press and Gannett News Service contributed to this story.

"Senate gas-tax cut hits pothole"

By VALERIE BAUMAN, Associated Press

First published: Thursday, May 8, 2008

ALBANY -- The state Senate has passed legislation to suspend state gasoline taxes for the summer, but the initiative has little traction because of opposition from the Assembly and Gov. David Paterson.

The Republican-sponsored bill would eliminate the gas tax between Memorial Day weekend and Labor Day.

Senate Republicans claim the bill would save New Yorkers about 32 cents per gallon in state petroleum business, sales and motor fuel excise taxes.

The measure passed the Senate 46-15.

"Look at New Jersey, where you'll find a lower tax for gasoline, and you know what you'll find?"

"A lower price for gasoline," said Sen. Andrew Lanza of Staten Island.

"Gas costs more here, because we impose a higher tax here."

"If we impose a lower tax here gas will cost less here."

"What is so hard about that to understand?"

Opponents to the state measure -- which comes in an election year when the cost of gas is a top complaint for voters -- say they don't trust the oil industry not to jack up prices to eliminate any consumer savings.

The bill would also authorize anti-price gouging penalties for gas station owners and gasoline distributors who don't pass the savings on to consumers, Republicans said.

Paterson has said the state can't afford to lose the hundreds of millions of dollars in revenue in the face of more than $20 billion of projected deficits over the next three years.

Republicans claim that if federal, state and local governments all temporarily suspended their taxes for the summer, motorists would save 65 cents per gallon.

Presidential candidates Sens. John McCain and Hillary Rodham Clinton have already called for a suspension of the 18.4 cents per gallon federal gasoline tax over the summer.

Sen. Barack Obama has opposed the suspension.

Silver said the Senate measure would result in a $500 million shortfall, cutting funds dedicated to road and bridge work.

"Group wants rules on AMD tightened - Panel cites lack of oversight on computer chip maker that has option to build factory"

By LEIGH HORNBECK, Staff writer, Albany, New York Times Union

First published: Thursday, May 8, 2008

MALTA -- The leader of a group formed to study the impact of the Luther Forest Technology Campus will have on the community says the rules Advanced Micro Devices must follow if they build here are too vague.

Carol Henry, chairwoman of the Community Response Board, submitted a written statement to the Malta Town Board after the group studied amendments to the laws governing the tech park, called a planned development district.

The Luther Forest Technology Campus Economic Development Corp. submitted the amendments to the town in February.

The changes were intended to tailor the development district to the construction of a nanotechnology firm -- specifically AMD, which state officials are trying to lure to the site.

Henry said the development plan is "still quite generic in its approach to many topics that will impact the community."

Henry and other people who spoke at a public hearing Monday night said they worried about oversight.

Malta must not rely on state or federal officials to make sure the transportation of chemicals and other potentially dangerous work is done safely, Henry said.

Only Malta, he said, can do that effectively.

Another sticking point is the request from Luther Forest to clear the site before the plans are reviewed by the town Planning Board and before a building permit is issued.

Malta resident Robert Flanagan said he is worried about the traffic on Route 9P and other local roads during a planned 24-hour-a-day construction schedule.

AMD officials have said they want to start working on the site as early as next month, before access roads and the Round Lake bypass are complete.

AMD spokesman Ward Tisdale said he and other representatives from Luther Forest were at the hearing only to listen.

He said all the issues raised would be addressed.

The Town Board is scheduled to vote on the amendments next month.

Tom Peterson, the town attorney, said he expects the law will be "significantly different than where it stands now" and residents will have more opportunities to express their opinions about it.

"PSC aide to forfeit $50,000 - Commissioner Maureen Harris makes pension case deal; Buffalo firm bows to Cuomo"

By RICK KARLIN, Capitol bureau, Albnany, New York Times Union

First published: Friday, May 9, 2008

ALBANY -- State Public Service Commissioner Maureen Harris has agreed to pay a $50,000 settlement as part of Attorney General Andrew Cuomo's ongoing investigation into state pension system padding.

Harris had obtained a year's worth of public pension credits when she was a private practice attorney with Albany's Girvin & Ferlazzo law firm.

At the time, Harris and other other partners at the firm were listed as employees of the Hamilton Fulton Montgomery Board of Cooperative Educational Services.

In addition to the payment, Harris agreed to relinquish pension credits she had through BOCES.

Comptroller Thomas DiNapoli, who is also investigating pension abuses, had already rescinded the credits.

Also paying $50,000 was the Hodgson Russ law firm of Buffalo, whose attorneys were listed in five western New York BOCES organizations.

But because Hodgson Russ lawyers didn't sign up for pension benefits, individuals in that firm won't have to pay anything.

This marked the first settlement Cuomo has reached in his growing probe of pension abuses in which lawyers for school districts and various BOCES had been wrongly acquiring valuable public pension credits.

The practice was improper, according to Cuomo, because the lawyers should have been listed as outside contractors -- who don't qualify for public pensions or other benefits -- rather than employees.

Cuomo, in a meeting with the Times Union editorial board shortly after Thursday's announcement, said he believes the school cases are just the "the tip of the iceberg," when it comes to improper gathering of pension credits.

Noting that New York state is home to some 10,000 government entities ranging from villages and towns to water districts and public authorities, Cuomo predicted there could easily be hundreds of cases in which lawyers or others such as engineers or doctors, have wrongly been listed as employees rather than contractors in order to get taxpayer-funded pension benefits.

"It is one of the most pervasive government frauds I have ever seen in the state of New York ... this is a political perk on the local level."

Ultimately, he told the Times Union, he plans to offer legislation that would prevent such abuses and allow for better policing of these myriad government entities.

"The controls and the audits have been lacking," said Cuomo.

Michael Koenig, Harris's lawyer, stressed that the settlement agreement contains no admission of wrongdoing and he said his client reached out to the attorney general as soon as she learned that her former firm was under investigation.

"She wasn't trying to hide anything," Koenig said.

Hodgson Russ CEO and President Gary Schober noted the payment is not characterized as a fine or penalty.

Jeff Honeywell, Girvin & Ferlazzo's managing partner, said the firm is continuing to cooperate with the attorney general.

He noted, as have BOCES officials, that the arrangement by which firm lawyers were listed as employees dates back many years.

The state Education Department as well as the comptroller's office had not objected to such arrangements until this year, he said.

Cuomo, however, said the argument that the practice had gone on for years didn't make it right.

BOCES, which are educational cooperatives providing services such as legal work to member school districts, can get state reimbursement for the districts that use BOCES staff lawyers for certain functions.

For that reason, the BOCES reported lawyers as employees.

But the attorney general has said that alone isn't sufficient reason for listing the lawyers as employees.

To be considered a bona fide employee rather than contractor, a person must meet certain conditions, such as having regular hours and working under someone's supervision.

Ellen Nachtigall Biben, Cuomo's special deputy attorney general for public integrity, said BOCES pension enrollment was considered a perk for partners at Girvin & Ferlazzo.

While BOCES listed the lawyers as employee relations experts -- a function reimbursable by the state -- she noted Harris never worked on personnel issues.

Harris did perform other legal tasks for the BOCES, Koenig said.

As a member of the Public Service Commission, Harris, who was appointed by former Republican Gov. George Pataki, earns $109,800 to rule on utility rates regulations.

Rick Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com.

"Ex-chief named in wire tap - Former Schenectady top cop Gregory T. Kaczmarek mentioned in drug indictment that accuses wife, others"

By LAUREN STANFORTH, Staff writer, Albany, New York Times Union

First published: Friday, May 9, 2008

SCHENECTADY -- A former police chief who started his tenure in 1996 by dispelling rumors he was a drug user was mentioned in a drug conspiracy indictment Thursday that charged his wife, stepson and 22 others with involvement in a Schenectady-based cocaine and heroin ring that obtained drugs from Long Island.

Gregory T. Kaczmarek, who retired in 2002, was not charged in the state attorney general's indictment, unsealed by Schenectady County Court Judge Christine M. Clark on Thursday.

But authorities allege in the document that Kaczmarek's wife, Lisa, said in a tapped phone conversation with her associates on Feb. 18 that her husband would "mule" cocaine for the operation, and that he would "flash his badge" if the need arose.

Mule means carrying or transporting drugs.

Also, the indictment alleges the former chief and his wife met with the drug ring's leader Feb. 20 to "discuss the details surrounding the police seizing cocaine and other narcotics from the drug organization earlier in the day and how to proceed with their drug organization in view of that police seizure."

Interviewed at his Schenectady home Thursday afternoon, Kaczmarek said, "I love my wife and she has my full support."

He went on to acknowledge he and his wife were friends with the ring's alleged leader, Kerry "Slim" or "K" Kirkem.

Once the investigation focused on Kirkem, "I knew we would be targets," Kaczmarek said.

Otherwise, he declined to talk about the case.

Concerning the ex-chief's possible involvement, Attorney General Andrew Cuomo said Thursday afternoon, "There is an ongoing investigation on this matter, and at this time I have no further comment."

The 13-month probe of the ring, which began with traffic stops for drug possession in Saratoga and Greene counties, characterizes Lisa Kaczmarek, 48, as an alleged freelance dealer affiliated with the drug organization.

A law enforcement official familiar with the investigation described Lisa Kaczmarek as a "retail" dealer who moved small amounts of cocaine for the operation.

She is charged with second-degree conspiracy and faces 8 /3 to 25 years in prison if convicted.

Her son, Miles Smith, 20, is described in the indictment as an alleged worker for the drug organization and also faces conspiracy charges.

The Kaczmareks have hired high-profile local attorney Kevin Luibrand, who represented several plaintiffs who successfully sued the city for police misconduct when Gregory Kaczmarek was chief.

Luibrand declined comment Thursday.

Lisa Kaczmarek turned herself in to a law enforcement agency Thursday after police began fanning out across Schenectady and arresting those charged in the indictment, said Robin Baker, state Executive Deputy Attorney General for Criminal Justice.

Baker didn't say which agency.

Kaczmarek's wife denied a request for an interview from the Schenectady County jail, where she was being held without bail.

The 84-count indictment was the result of a multi-agency investigation called "Operation Slim Chance," led by the attorney general's Organized Crime Task Force and assisted by the State Police, Schenectady police, Schenectady district attorney's office and the U.S. Drug Enforcement Administration.

Authorities allege that Kirkem, 40, of both Schenectady and Waterford, and Oscar Mora, 30, of Waterford, ran the organization that brought drugs from Long Island to Schenectady, where they allegedly were sold throughout the Capital Region.

The indictment covers alleged activities between January and March.

Participants rented Schenectady apartments, or "stash houses," including two on Avenue A and Union Street, where drugs, cash and weapons could be concealed, investigators said.

Workers also took organized shifts to sell the drugs, often arguing with each other about not getting the most lucrative shifts, Baker said.

More than 58 ounces of cocaine, at an estimated value of $130,000, and more than 1,600 bags of heroin, valued at $33,000, were seized during the investigation.

Five vehicles, two guns and $22,549 in cash also were taken.

The drugs are believed to have been distributed throughout Albany, Saratoga, Schenectady, Columbia, Montgomery and Warren counties.

Schenectady County District Attorney Robert Carney said he believes there is a drug overdose death in Warren County that can be linked to the ring's particular drugs.

Thursday was not the first time that Lisa Kaczmarek has been in trouble with the law.

Three years ago, she was arrested after allegedly being caught with marijuana when she went through a security checkpoint at Schenectady City Court.

That case was later adjourned and sealed.

Gregory Kaczmarek ran the Schenectady police force when the U.S. Department of Justice launched a corruption probe that ended with four officers in federal prison.

The City Council, civil rights leaders and others criticized Kaczmarek as an out-of-touch leader who lost control of his department.

During Kaczmarek's tenure, the Justice Department's civil rights unit launched a separate investigation that faulted the department for violating constitutional rights of citizens.

For years, Kaczmarek was dogged by rumors of drug use.

When then-Mayor Albert P. Jurczynski was considering him for chief in 1996, Kaczmarek held a remarkable news conference to rebut the rumors.

"I'm not a drug user or abuser and never have been one," he said at the time.

Lisa Kaczmarek is scheduled to be arraigned in County Court this morning, possibly along with 19 others who were apprehended Thursday.

One person charged was already arraigned Thursday morning because he was being held in connection with a different case.

Three others named in the indictment had yet to be arrested Thursday, authorities said.

Lauren Stanforth can be reached at 454-5697 or by e-mail at lstanforth@timesunion.com. Assistant City Editor Mike Goodwin contributed to this story.

AND FROM THE CORRUPT EMPIRE OF NEW YORK, WHERE WHAT IS LAUGHINGLY CALLED "OUR GOVERNMENT" IS FIRMLY IN THE HANDS OF THE SPECIAL INTERESTS WHO HAVE BOUGHT AND PAID FOR IT, WE HAVE ...

SPECIAL INTERESTS CREATING SPECIAL PRIVILEGED CLASSES OF PEOPLE IN THE CORRUPT EMPIRE ...

SPECIAL CLASSES WHO ARE "OWED" BY THE COMMON FOLKS IN THIS CORRUPT ****HOLE WHO ARE THEMSELVES ENTITLED TO NOTHING ...

OTHER THAN AN EVER-INCREASING DUTY TO HAVE TO WORK TO SUPPORT THESE SPECIAL PRIVILEGED CLASSES IN THE STYLE THAT THEY HAVE GROWN ACCUSTOMED TO AS SPECIAL PRIVILEGED CLASSES ...

And so ...

"Local governments fight labor-backed 'Trojan horse' retiree's health bill that calls for study"

By MICHAEL GORMLEY, Associated Press

Last updated: 4:02 p.m., Friday, May 9, 2008

ALBANY -- Local governments say a proposal to study health benefits for retirees is really a "Trojan horse" that will protect forever free or nearly free lifetime health insurance for retired government workers.

The bill would for at least a year bar local governments and the state from finding cheaper ways to provide health insurance for their retirees until a task force reports its findings.

New York State Association of Counties Executive Director Stephen Acquario said Friday that the bill would prohibit governments from making cuts in local and state public spending, which has led to some of the highest taxes in the nation.

The bill (A-9393-A) could be acted on as early as next week and has strong majority sponsors in the Senate and Assembly.

It was revised in the Assembly's government employees committee where any action to reduce the health benefit for retirees would be suspended until a task force reports its recommendations.

The 12-member task force includes state government officials including at least three recommended by the AFL-CIO, but none from local governments, according to the bill.

"You're talking about retiree health care here," said AFL-CIO President Denis Hughes, who supports the measure.

"We owe it to them that they don't spend the end of their lives in misery."

The concern comes as Gov. David Paterson pushes to reduce local government spending and to cut taxes that he said are driving young New Yorkers to other states for jobs and lower costs of living.

"I think it's everybody's concern that in this panic -- in this weakened economy -- to deal with the cost of government that we do it well and do it right and we don't scapegoat the most vulnerable people, your retirees," Hughes said.

"That's my only interest."

He said he sees no problem excluding local government officials from the expert panel because labor leaders weren't included in panels created to cut local government spending.

"It's a classic legislative Trojan horse concealing a financial time bomb for taxpayers," said E.J. McMahon of the Empire Center for New York State Policy, part of the fiscally conservative Manhattan Institute.

"How about protecting taxpayers?"

"We need a detailed and objective study of options -- not a stacked task force that will deliver a foregone conclusion."

Governors George Pataki and Eliot Spitzer vetoed similar measures five times saying it would limit efforts to reduce costs.

There was no immediate comment from Paterson Friday.

AND WHILE WE ARE ON THE SUBJECT OF SPECIAL INTERESTS AND CORPORATE WELFARE IN A TIME OF RECESSION FOR THE ORDINARY NEW YORKERS WHO HAVE TO GO WITHOUT THEMSELVES TO PAY THE FREIGHT FOR THESE SPECIAL INTERESTS, WE HAVE ...

"AMD reveals little of plans - Chief executive doesn't discuss possible split, Luther Forest project at meeting"

By LARRY RULISON, Business writer, Albany, New York Times Union

First published: Friday, May 9, 2008

Hector Ruiz, chief executive officer of Advanced Micro Devices Inc., gave no indication at the annual shareholders' meeting Thursday that he wants to split the computer chip company in two.

Earlier in the week, AMD's stock surged on speculation the company might separate its manufacturing from chip design, a move that could have huge implications for plans to build a $3.2 billion computer chip factory at the Luther Forest Technology Campus in Malta.

In fact, in brief remarks at the meeting, held in Austin, Texas, Ruiz did not address the company's plans for Luther Forest.

And he barely talked about AMD's "asset smart" strategy, which has analysts thinking he wants to spin off manufacturing, turning AMD into a "fabless" company.

The annual meeting was webcast over the Internet.

Shareholders attending the meeting also did not seem to care about the rumors of a split or about the company's manufacturing strategy.

Only one stockholder asked Ruiz a question, wanting to know if AMD would consider sponsoring a golf tournament in Austin, where the company has significant operations.

"Even if you go through a recession, people still play golf," the man said.

Ruiz said management would take the idea under consideration.

Otherwise, Ruiz said little about the company's plans.

Since first announcing the asset-smart strategy about a year ago, Ruiz has declined to explain exactly what it entails.

That silence has fueled speculation on Wall Street and in the international media that AMD, the world's second largest microprocessor manufacturer, would sell its chip fabs or even sell the company.

"Our plans are bold, and progress is ongoing," Ruiz told shareholders Thursday.

"And I hope to communicate additional details of this complex undertaking in the very near future."

Ruiz promised that AMD, which lost $358 million in the first quarter, would become profitable again during the last six months of the year.

"AMD will emerge in the second half of the year as a more capable and nimble organization," he said.

Despite the split speculation and its financial condition, AMD is still moving ahead with plans to build the factory in Malta, although the company has yet to officially commit to the site.

New York is offering AMD a package of cash and tax breaks valued at $1.2 billion.

AMD must reach a decision by July 31, 2009, to get the incentives.

AMD officials have been frequently visiting the region, to work on getting a building permit in hand to possibly begin construction as early as January.

"Analysis: NY unsettled amid claims of rogue state police - NY probes claims of rogue police and an insider with extraordinary access"

By MICHAEL GORMLEY, Associated Press

Last updated: 12:32 p.m., Saturday, May 10, 2008

ALBANY -- The allegation is startling and the pattern it's based on unsettling: A rogue element in the state police has for years tailed and snitched on elected officials and political enemies.

Tabloid headlines like "State Police Smear Squad," led by the New York Post citing anonymous sources, have rattled a New York state government already torn by an unprecedented year of scandal.

The claims prompted Gov. David Paterson last month, just two weeks into his administration, to call on Attorney General Andrew Cuomo to investigate the state police.

The accusations stoke longtime suspicions and conspiracy theories that connect -- accurately or not -- isolated acts, associations, even family connections in the administrations of Republican Gov. George Pataki and Democratic Gov. Eliot Spitzer.

The Cuomo probe is the latest to hit New York's capitol, already gripped by scandal and investigation, including a state body investigating all the investigations.

"There was obviously an element in the police force and it wasn't Republican or Democrat, it was just out of control people who had power that were clearly monitoring a lot of the elected officials," Paterson said in a radio interview a week ago.

He said his own extraordinary admission of past marital affairs a day after his March 17 inauguration was prompted in part by fear of the alleged state police squad.

When confronted by news reporters, he backed off the personal assertion and said more than 10 lawmakers statewide, from both parties, told him state police were watching them, stopping them for traffic infractions, even releasing a tip on a speeding ticket to a blog before the lawmaker got home.

Cuomo, a Democrat with his eye on the governor's office, immediately turned up the heat publicly.

He called in a veteran prosecutor who was part of the New York City Police Department corruption case in the 1970s, detailed in the Al Pacino movie "Serpico."

But those who were deep inside the Pataki and Spitzer administrations discount the tales of such a shadow operation, even in the other's administration.

They say it's an old yarn given life in an increasingly partisan Capitol in a legislative election year where screaming headlines of scandal trump those about the impending recession and $20 billion of state budget deficits forecast for the next three years.

But these former aides also hedge their bets.

"I never saw evidence of any kind of a rogue unit in the state police," said one former high ranking member of the Spitzer administration.

"No one ever said, 'We have secret information.'"

But the former official added:

"I never say 'never' anymore because of all the bizarre things that happened."

Two former Pataki administration officials also denied any knowledge of a rogue unit.

"I have no reason to think it happened," said one of the former officials.

He then added: "I have no proof to say it didn't."

"No one was playing those kinds of games," said another former Pataki hand.

The former administration officials spoke on the condition of anonymity because of the sensitivity of the matter that, if true, could violate civil rights laws.

"I think it's probably overstated and less sinister than it sounds," said Democratic Sen. Eric Schneiderman of New York City.

Schneiderman, like most in Albany, is quick to defend the state police, operating in a difficult spot in a power structure in which they serve the governor.

Old Albany hands say such accusations also dogged state police in the Democratic administrations of Mario Cuomo, Hugh Carey and even Franklin Roosevelt.

Those in charge of the state police during the Pataki and Spitzer administrations flatly deny troopers are used as political pawns.

"It is critically important that the state police be seen as apolitical due to their enormous power to arrest and investigate," former state police Superintendent Thomas Constantine told Cuomo's investigators.

At the center of the accusations is Daniel Wiese.

He is regarded as an accomplished and respected state police officer, fiercely loyal to the governors he worked for and a bit of a hothead.

In the 1980s, Wiese managed to earn the respect and friendship of a young prosecutor in the Manhattan District Attorney's Office who liked to join covert ops.

The lawyer, Eliot Spitzer, came to believe Wiese put his life on the line for him during an investigation of the Gambino crime family.

When Spitzer became governor in 2007, Wiese called him on a direct line.

At about the same time he met Spitzer, Wiese was a young trooper making friends with a local mayor.

Wiese would become part of George Pataki's so-called Peekskill mafia of confidants who surrounded the governor when he took office in 1995.

Through the two administrations, Wiese was often there when politics mixed with police.

In March 1996, Wiese yanked the state police protection of Lt. Gov. Betsy McCaughey-Ross, who at the time was on the outs with her boss.

State police said she abused the unit, treating them more like chauffeurs.

Soon after, Wiese invoked the Fifth Amendment against self-incrimination during testimony to a federal grand jury investigating the Pataki administration, according to reports by The Village Voice newspaper.

The grand jury was probing allegations that a Pataki fundraiser offered to help Korean-American families get parole for relatives in return for campaign donations.

Wiese, Pataki and his aides were never indicted.

The New York Times reported that Wiese tried to monitor the investigation, insisting on updated information from New York City detectives and demanding that one of his men join the team until federal investigators took over and froze state police out.

In the 2002 election, when Spitzer was running for re-election as attorney general and Pataki was running for a third term as governor, Wiese acted as intermediary, carrying Spitzer's complaint about a nasty jab by his Pataki-picked Republican opponent, according to a high-level Pataki official.

Then, in 2003, lawmakers contested Pataki's appointment of Wiese as inspector general of the state Power Authority.

A day after Wiese retired from the state police, he took the $160,000-a-year job at the Authority, whose board was appointed by Pataki.

A special waiver allowed Wiese to also collect a state police pension of about $60,000.

In March of this year, a week after Spitzer resigned after being implicated in a prostitution investigation, Albany County District Attorney P. David Soares issued a second report into claims that top Spitzer aides concocted a plot to embarrass Senate Republican leader Joseph Bruno using state police records to track his use of state aircraft.

Again, Wiese was there.

The March 28 report quoted testimony by former Spitzer Communications Director Darren Dopp saying that Spitzer had arranged for Wiese to talk to a New York Times reporter to "confirm that (state police) had long held concerns about Mr. Bruno's use of the aircraft" dating to the Pataki administration.

The story countered Bruno's insistence that Spitzer started it.

On April 5, Wiese was put on paid leave pending Cuomo's investigation.

Last week, Wiese's pay was stopped during his suspension after Cuomo told reporters he believes e-mails were erased.

Wiese's lawyer, Kevin Kitson of White Plains, didn't respond to repeated requests for comment.

Schneiderman, the Democratic senator and former prosecutor, said the Cuomo inquiry could serve to clarify the long-standing concern over whether state police overstepped their bounds from public protection to political aggression.

"You are up against a very, very dangerous line," he said.

------

Michael Gormley is the Albany, N.Y., Capitol editor for The Associated Press. He can be reached by e-mail at mgormley(at)ap.org.

"Plug Power sues broker over loss - Latham fuel cell maker seeks $62.8 million, claiming UBS improperly invested its funds"

By LARRY RULISON, Business writer, Albany, New York Times Union

First published: Saturday, May 10, 2008

COLONIE -- Plug Power Inc. is suing UBS Financial Services Inc. for $62.8 million, claiming the brokerage firm improperly invested that sum in so-called auction rate securities, now battered by the subprime mortgage mess.

On Thursday, the Latham-based fuel-cell manufacturer announced it was taking a $2.8 million charge to account for the drop in value of the investments, which are bonds sold through periodic auction.

That was the same day the company filed suit against UBS in U.S. District Court in Albany.

UBS has been the company's broker since 2005.

In February, after the subprime mortgage meltdown, the $300 billion market for auction rate securities, also known as ARS, dried up, leaving Plug and others unable to liquidate their holdings.

The auction rate securities UBS bought for Plug were backed by federally insured student loans, and Plug said in the lawsuit that student loan-backed ARS are the hardest to sell, with discounts of 25 percent or more.

"Throughout the fall of 2007, other brokers and investment advisers began advising clients to liquidate their ARS holdings, in light of the failed auctions and increased liquidity risks," the lawsuit states.

"UBS did not notify Plug Power of these risks."

A UBS spokesman did not return a phone call or e-mail for comment.

This week, UBS settled with 20 municipalities in Massachusetts that invested in ARS, and New York Attorney General Andrew Cuomo also is investigating the company.

Plug said its chief financial officer, Gerry Anderson, called UBS in October with concerns over the investments.

Plug alleges the broker told Anderson the securities "were safe and liquid."

Plug warned investors in March that it held $92.8 million in ARS and there was "increased liquidity risk" because of market disruption.

Plug spokesman Eoin Connolly said Friday he believes the company was able to convert a portion of that to cash -- resulting in the current $60 million in holdings.

He said the suit was filed to give the company options for recovering the money.

"It could resolve itself any number of ways," he said.

As of March 31, Plug had $146.8 million in cash, cash equivalents and available-for-sale securities, among which $60 million was invested in ARS.

During a conference call Thursday, analysts asked officials how the company would manage with a significant portion of its cash position tied up in ARS.

Plug is still spending about $10 million a quarter on research and development on fuel-cell systems designed for both commercial and home power markets, but its operations have yet to break even.

It lost $20 million in the first quarter.

"We still are confident that we will have appropriate liquidity to continue to drive this business to market adoption and grow it profitably," Anderson said.

Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.

"Town GOP turns on its own - Clifton Park Republican committee disowns supervisor, three council members over appointment to water board"

By JORDAN CARLEO-EVANGELIST, Staff writer, Albany, New York Times Union

First published: Saturday, May 10, 2008

CLIFTON PARK -- The town's one-party political scene has turned topsy-turvy after its Republican committee disowned four of Clifton Park's five top elected officials.

In the wake of a public rift several weeks ago, the committee renounced Supervisor Phil Barrett, Councilwoman Lynda Walowit and councilmen Tom Paolucci and Scott Hughes after they failed to show for a committee meeting.

"The committee regretfully must inform the community that these elected officials no longer speak for, or represent, the Republican Party in Clifton Park," committee Chairman Bob Wilcox said in a statement late Thursday night.

The internal upheaval is remarkable and, in the wake of Democrats taking Colonie last year, is at least a sign of instability in Albany's shrinking number of suburban GOP strongholds -- this one in the district of the state's most powerful Republican, Senate Majority Leader Joseph L. Bruno.

Republicans haven't been in the minority on the Town Board here since a brief stretch that ended in the early 1990s.

And, technically speaking, they're still not.

But who holds sway -- and the power of the pulpit -- is now in question.

Barrett, a five-term incumbent re-elected in November on multiple party lines by a 2-1 ratio, said he learned of the news Friday when it was reported on timesunion.com.

Wilcox, the party's new chairman, said the renouncement stemmed from the foursome's failure to show at a committee meeting Thursday, when party leadership expected them to explain their public split over an appointment to the Clifton Park Water Authority Board last month.

Hughes and Paolucci accused Wilcox of pressuring them to appoint a party loyalist and campaign donor and beckoning them to party caucuses they said would be illegal because votes and appointments were to be decided.

Wilcox denied the allegations, saying he merely asked that a committeeman, Dan Keegan, be considered for the post with the water authority, which will decide whether Clifton Park joins the county's controversial water pipeline.

He also requested the board table the vote while Councilman Sanford "Sandy" Roth, who is the council's liaison to the water authority, was absent while recuperating from a heart attack.

Roth now may be the only board member who has the party's support.

Hughes, who was elected to his first term in November after briefly filling a vacancy, responded forcefully.

"I feel like Ronald Reagan, who made the quote, 'I didn't leave my party.'"

"'My party left me,' " Hughes said.

"The fact is that there are serious issues involved here, issues about ethics and open government -- principles that I will not compromise on."

Wilcox was not immediately available to elaborate on his statement.

Hughes, among others, has said a small group of people are trying to "hijack" the town committee and push elected officials toward accepting the county water plan, which some fear will be unnecessarily costly.

Saratoga County Republican Chairman Jasper Nolan rejected the idea that Clifton Park was being pressured to join the county water plan as well as the notion that he had anything to do with the town committee's actions.

He has been accused of using Wilcox to sway the Clifton Park committee -- a notion both men reject.

"Each of the towns fulfill their own destiny."

"I'm busy enough that I don't interfere," Nolan said.

"I'm no Dan O'Connell," he added, referring to the longtime boss of Albany's Democratic political machine.

Walowit was not immediately available for comment.

Paolucci said he is -- and plans to remain -- a Republican, regardless of what the Clifton Park GOP does.

"It's kind of shocking," Paolucci said.

"I got involved with Republican politics because I think government should be small and we should be giving money back to the people whenever we can."

"That's what we've been doing here."

Both councilmen have more than three years left on their terms.

Barrett downplayed whether the rift would affect town business.

He has yet to say publicly whether he will seek a sixth two-year term in 2009.

"You can reach any conclusion you want, but it is what it is," he said.

"I have been supported by the Republican, the Independence and the Conservative parties for years, and I certainly appreciate all the support I've been shown."

While Barrett was not openly critical of Wilcox like Hughes and Paolucci, he voted with them to appoint John Ryan to the water authority board.

The split left committee Vice Chairman Adam Kramer, who was out of town this week, hoping relations could be mended.

"I was not at the meeting and was not aware that this was going to happen," Kramer said, adding that he would have urged against it, even if he were outvoted.

"I sincerely hope that this family squabble could be healed and put back together."

Jordan Carleo-Evangelist can be reached at 454-5445 or by e-mail at jcarleo-evangelist@ timesunion.com.

"Former Schenectady chief covers wife's bail - Lisa Kaczmarek pleads not guilty to drug conspiracy; report says husband included in transcript of recording"

By CAROL DeMARE, Staff writer, Albany, New York Times Union

First published: Saturday, May 10, 2008

SCHENECTADY -- The wife of former police chief Gregory T. Kaczmarek was released from jail on $10,000 bail Friday, just hours after pleading not guilty to conspiracy in connection with a drug indictment.

Lisa Kaczmarek, 48, was one of 24 people arrested a day earlier as part of a 13-month multi-agency probe into a drug trafficking ring.

The investigation, led by the state Attorney General's Organized Crime Task Force, alleges the drug ring operated a cocaine pipeline from Long Island and New York to the Capital Region.

Hours earlier, Lisa Kaczmarek shackled, handcuffed and wearing an orange jail jumpsuit, appeared before acting Schenectady County Judge Christine M. Clark to hear a felony complaint read charging her with second-degree conspiracy.

Kaczmarek was freed after her husband posted a certified bank check for $10,000 to cover the bail about 2:25 p.m. at the county jail, Schenectady County Sheriff Harry Buffardi said.

Assistant Deputy Attorney General Michael Sharpe, who is prosecuting the case, said he intends to use wiretap evidence against Lisa Kaczmarek and other defendants.

If convicted, she faces a maximum of 8 1/3 to 25 years in prison.

Miles Smith, 20, Lisa Kaczmarek's son, also pleaded not guilty to conspiracy and drug sale counts.

He is expected to make a bail application on Monday.

Meanwhile, the Daily Gazette on Friday published a transcript of a recording on which it says Greg Kaczmarek can be heard offering to travel downstate to haul drugs back to the Capital Region for his birthday.

The former chief, who retired in 2002, does not face charges in the ongoing investigation, but he told the Times Union on Thursday he expected he and his wife would be targets once the investigation focused on a friend, alleged ringleader Kerry "Slim" Kirkem.

Neither Sharpe nor the Kaczmareks' attorney, Kevin Luibrand, could not be contacted for comment about the development late Friday.

It is alleged Lisa Kaczmarek was caught on a recorded phone line telling a friend that her husband could transport drugs for them.

Both Kaczmareks allegedly met with Kirkem on Feb. 20 to "discuss the details surrounding the police seizing cocaine and other narcotics from the drug organization earlier in the day and how to proceed with their drug organization in view of that police seizure."

During the bail application for Lisa Kaczmarek, defense attorney Luibrand asked Clark to consider giving his client the same $5,000 cash or $10,000 bond bail set earlier for Leah Armenia, who is charged with conspiracy and drug possession as part of the investigation.

Sharpe said it would be difficult for Armenia, a 25-year-old Hannaford supermarket supervisor, to even make the bail set.

He said during Armenia's arraignment that her Union Street apartment was used as a "stash house," and she was paid rent to allow large quantities of cocaine, heroin and weapons to be kept there.

He argued that in the case of Lisa Kaczmarek, a higher bail should be considered.

Luibrand renewed his argument for the lower amount and told the judge Lisa Kaczmarek "is not a flight risk whatsoever."

The judge sided with the prosecutor's recommendation.

Carol DeMare can be reached at 454-5431 or by e-mail at cdemare@timesunion.com.

"Ethics panel works in secret - Commission keeping eye on legislators works behind closed doors, in consultation with lawmakers' counsel"

By IRENE JAY LIU, Capitol bureau, Albany, New York Times Union

First published: Sunday, May 11, 2008

ALBANY -- A special commission that legislators claim is their "independent" ethics watchdog is anything but, a monthlong Times Union investigation has found.

In practice, the Legislative Ethics Commission is an extension of the legislators' own team of lawyers, particularly the counsels of the majorities -- the Senate Republicans and Assembly Democrats.

The commission's staff is hired by and regularly consults with the legislative lawyers.

They draft recommendations behind closed doors, long before the commission's appointed members sit down for an official vote.

The commission's co-chair, a Senate representative, signs the staff's paychecks.

The commission is in a suite of Senate majority offices in the Alfred E. Smith state office building.

"Part of the problem here, since it's not independent and it's secret, it's the worst of both worlds," said Blair Horner, legislative director for the New York Public Interest Research Group.

"It's the legislators self-policing in New York, so that doesn't inspire confidence."

The commission's duties include "administration and enforcement" of the Public Officers Law for members and employees of the Legislature and candidates for state legislative office.

It issues advisory opinions, investigates complaints and keeps financial disclosure statements of elected officers and candidates.

Few activities are made public.

Like its predecessor, the Legislative Ethics Committee, it operates in secrecy.

Advisory opinion requests and responses are not subject to the state's Freedom of Information Law.

Investigations of complaints aren't made public unless a "notice of probable cause," a formal finding that wrongdoing may have occurred, is issued.

In the nearly two decades the ethics panels have existed, not one such notice has been issued, said Melissa Ryan, executive director and commission counsel.

Financial statements are available to the public, but dollar amounts are redacted.

Filers don't have to certify "under penalty of perjury" that their disclosures are accurate.

The commission also provides guidance on ethics laws through advisory opinions to legislators, staff and candidates.

The development of the advisories provide a window into the commission's secrecy, lack of independence and significance of the commission's decisions on civil or criminal cases.

Based on interviews with people involved with the commission, some of whom would speak only on condition of anonymity, a picture of its inner workings emerges.

When legislators or staff members want guidance on the ethics law, they often seek informal advice from the commission, Ryan said.

But if the issue is complex or doesn't have precedence, Ryan said she will suggest the person request a formal advisory opinion.

The person seeking an advisory opinion makes a written request, often hand-delivered to the commission, according to a person familiar with the commission operations.

All the correspondence from the commission is hand-delivered, possibly to avoid mail fraud prosecution, the person said.

Federal prosecutors frequently use statutes that outlaw mail fraud to prosecute public corruption cases involving elected officials.

Ryan said hand deliveries are simply more convenient.

"Why would I mail?"

"They're right here," said Ryan, pointing out an office window to the Capitol across the street.

After a request for a formal advisory opinion, Ryan, as counsel, will draft an advisory opinion.

It goes to four legislative lawyers, one from each party in each house, in sealed envelopes marked confidential, according to several people familiar with the commission.

The lawyers review the draft and discuss changes but no written record of the meeting is kept.

Previous drafts of opinions are destroyed to prevent confusion, Ryan said.

For many years, no meeting could be held without a longtime committee member from the Senate majority, former Sen. James Lack, according to a source close to the committee.

Lack, who served on the committee from its inception in 1989 until he retired in 2001, was described as the person who "seemed to be in charge," according to the source.

Lack, now a Court of Claims judge, did not return a call for comment Friday.

A day or two before the meeting, binders with the agenda and related documents, including the draft advisory opinions, are hand-delivered to members.

At the meeting, commission members and conference lawyers vote to accept or reject the opinions, or hold off voting if changes are needed.

According to Ryan and commission co-chair Sen. Andrew Lanza, R-Staten Island, about half the time advisory opinions are passed as is.

Most changes are minor, Ryan said.

Not every draft opinion makes it to the commission.

After the legislative lawyers and Ryan finalize an opinion, the counsel will advise the legislator of the outcome.

Legislators can withdraw their requests for any reason, including the prospect that they don't like what the draft says.

Once the commission votes on the opinion, it is legally binding.

Since 2000, 15 out of 94 requests for opinions have been withdrawn.

"If it really stunk, their lawyer would tell them to withdraw the request," said Assemblyman Jack McEneny, D-Albany, a former co-chair of the Legislative Ethics Committee.

If an opinion has already been printed and put in the commission's binders and a legislator then asks to withdraw it before a vote, the draft is removed and replaced by a blank sheet of paper, according to a source familiar with the commission.

Ryan said the main reason opinions are withdrawn is because the question "becomes moot" and that "usually they get withdrawn before the opinion is drafted."

Lanza said the withdrawal of unfavorable opinions has "not been my experience at all."

Ryan says it is important that withdrawn opinions remain confidential.

"We don't want them to fear that if they asked for an opinion and it said no, that it would come out," said Ryan.

A favorable opinion, on the other hand, has great value.

Under state law, "such opinion ... may be introduced and shall be a defense in any criminal or civil action."

But while an opinion can be a strong defense, its strength depends on the integrity of the process that generated it, Columbia Law school professor and former assistant U.S. Attorney Daniel Richman said.

"Certainly to the degree that there was collusion between the legislator and the commission in the creation of the opinion, I wouldn't give it much faith in a good-faith defense," Richman said.

Federal authorities, for example, are examining the process by which Senate Majority Leader Joseph L. Bruno may have received authorization from within state government for his private business dealings, according to sources with knowledge of the investigation.

The FBI is looking at several opinions Bruno received more than a decade ago from the then-Legislative Ethics Committee.

The Commission on Public Integrity, which governs the executive branch, state employees and lobbyists, regularly publishes advisory opinions, with the names redacted.

Ryan, however, argues the small number of legislators and others covered by the commission would make it easier to identify redacted names.

McEneny said that without confidentiality, lawmakers won't seek guidance.

NYPIRG's Horner said there's a simple solution: Create a single independent ethics body for the Legislature and everyone else, as 36 states have done.

"Our primary purpose is not to provide defenses for legislators, it's to provide guidance to legislators. ... it works well as a sounding board for people who want to do the right thing." said Ryan.

As for the notion that the commission enables lawmakers to bend the law, Lanza replied that its purpose is to foster and ensure ethical behavior.

"It's not going to prevent someone who is intent on breaking the law, but we hope that it will act as a deterrent," he said.

Horner, though, notes that the commission hasn't deterred corruption in the Legislature, with several lawmakers convicted or currently under indictment or investigation for acts ranging from bribery to funneling state money to family members.

"An independent commission should deter people from getting into trouble," he said.

"Obviously, it hasn't worked."

Irene Jay Liu can be reached at 454-5081 or bye-mail at iliu@timesunion.com.

"Talk of a birthday, drug deals - Investigators say recordings show troubling ties between Kaczmarek, wife and alleged drug kingpin"

By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union

First published: Sunday, May 11, 2008

SCHENECTADY -- For the six tumultuous years that he was chief of the Schenectady police force, Gregory T. Kaczmarek stood watch over a city that was losing its grip on crime as big-time dealers came calling with their guns and violence, looking for a slice of the bustling drug trade.

The mid-sized department was overwhelmed at times, more than once calling for help from the State Police as the beleaguered force battled its own problems with rampant corruption and internal strife.

In telephone conversations secretly recorded by a state attorney general's task force, Kaczmarek can be heard allegedly taking part in conversations between his wife, Lisa, and an accused violent drug kingpin who state authorities say represents the very problems that have driven Schenectady to the brink.

Indeed, Kerry "Slim" Kirkem, 40, a downstate transplant who now calls Waterford and Schenectady his home, is allegedly heard in one of the wiretaps boasting that he would take control of the Electric City's drug trade and murder anyone who stands in the way, according to copies of the wiretaps obtained by the Times Union.

"I'm a start coming over there."

"I'm a start coming over there showing my face," Kirkem, whom Gregory Kaczmarek has described as a friend, can be heard telling an accused accomplice in a Feb. 16 telephone conversation.

"I don't give a (expletive) about nobody when it come to the business, I'll murder you."

"... The team that's behind you is strong, we about to take over the entire Schenectady."

"We too strong."

"We too strong for anybody."

Two days later, just after noon on a Monday afternoon, Lisa Kaczmarek used a cellphone registered to her husband to call Kirkem and urge him to drive to Long Island to bring back a shipment of cocaine, according to the wiretap transcripts.

Gregory Kaczmarek is heard in the background joking and joining in the conversation as his wife, in apparent desperation, urges Kirkem to make the trip.

At the time of the call, Lisa Kaczmarek was at a Guilderland pizza restaurant where she tends bar, according to a person with knowledge of the investigation.

Her conversations with Kirkem are laced with obscenities, threats of violence and boasts of the deals they have made, according to the transcripts.

"Why we got to wait so long?" Lisa Kaczmarek asked.

"Greg's got a birthday Wednesday."

At that point, according to state authorities, Gregory Kaczmarek can be heard in the background saying:

"That's my birthday present."

Four minutes later, at 12:53 p.m., Lisa Kaczmarek dials Kirkem's number again and State Police investigators, who were monitoring Kirkem's calls, listen in as she suggests her husband could make the drive.

"Oh, no, he's not gonna see nobody else," Kirkem responds.

"Yeah, well, you don't trust Greg?" she asks.

"They definitely ain't gonna do that," Kirkem said, as the conversation continued.

"This is Long Island we talkin' about, you talking about a white guy going into the black, you buggin'."

In the background of the bar, according to the wiretap documents, Kaczmarek can be heard laughing and stating: "I'll show him the badge."

Near the end of the conversation, after they make another comment about Gregory Kaczmarek riding along as a protector, Lisa Kaczmarek pleads with Kirkem to make the trip by that Wednesday, which was her husband's birthday.

"You'll be fine with the next batch."

"You'll be fine," Kirkem said.

"If that don't come through, see if you can find something else for Greg's birthday cause you're my only connect," she says.

Kaczmarek turned 56 that Wednesday.

The calls ends moments later.

It's not clear how many other telephone calls involving Lisa Kaczmarek may have been recorded during the operation, dubbed "Operation Slim Chance" in an apparent knock on Kirkem's nickname.

People with knowledge of the case said the two conversations involving Gregory Kaczmarek do not appear to contain any incriminating statements, although the investigation is continuing.

But the secretly recorded tapes will certainly fuel the drug-abuse rumors that have plagued Kaczmarek from the day he became chief.

Meanwhile, his 48-year-old wife and 22-year-old stepson, both of whom have posted bail on the indictment, are facing the prospect of state prison for their alleged involvement in the cocaine and heroin ring.

In an interview last week with the Times Union, Kaczmarek said that once he learned Kirkem was implicated, "I knew we would be targets."

The 13-month investigation was sparked by traffic stops in Saratoga and Greene counties that netted drugs.

Attorney General Andrew Cuomo has declined to characterize Gregory Kaczmarek's status, including whether he could face any charges.

They have described Lisa Kaczmarek as a retail-level dealer, and she is facing 8 to 25 years in prison if convicted.

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.

"Investigation's integrity questioned"

Albany, New York Times Union

First published: Sunday, May 11, 2008

A state trooper accused of smashing a man's face against a wall two years ago had privately returned to a downtown Albany bar where the incident unfolded to review surveillance tapes of the melee, according to new records filed in a federal lawsuit brought by the alleged victim.

The tapes, which were apparently lost or misplaced by the owner of the bar, The Bayou Cafe on North Pearl Street, showed a sequence of events that apparently support the assault victim's version of what happened, and contradict information contained in a State Police report, according to court records.

The new information raises questions about the thoroughness of the Internal Affairs investigation, which was five months old last year when a State Police attorney said he had "no knowledge whatsoever" the trooper involved had privately returned to the bar to look at the tapes.

One of the troopers involved, Joshua Kean, was then assigned to the Capital's Executive Services Detail.

He and another trooper, William K. Reyner, happened upon a street fight between a large group in the downtown bar district on Dec. 10, 2006.

The trooper wrote in a State Police report filed at 2:30 a.m. that night that the group scattered as the troopers jumped from their vehicle to break it up.

He also said the alleged victim, Derek DeMeo, was "laying on the ground next to a brick wall holding his head," according to the police report.

But that information contradicts statements by State Police officials last year that the troopers pulled DeMeo out from under a pile of fight participants in front of the bar.

DeMeo was put in an ambulance and sent to Albany Medical Center Hospital.

No police went to the hospital to interview him or take a statement.

He claims in a lawsuit that a trooper grabbed him in front of the bar and pushed him across Columbia Street, slamming his head face-first into a stone wall.

He lost teeth and suffered a large cut to his face.

City workers were called to that spot days later by a shop owner who asked them to wash DeMeo's blood off the sidewalk under the wall.

Kean wrote in the police report that night there was "no criminal action warranted."

"... Closed by investigation."

Yet, an affidavit filed by the bar's owner, Ralph Spillenger, said the trooper returned to the bar "days" after the incident.

It's unclear if the trooper was in uniform or there in an official capacity.

The trooper "requested permission to view the video taken from the surveillance system," Spillenger said in the affidavit.

Spillenger said the trooper acknowledged being the person seen escorting DeMeo away from the fracas toward the wall where DeMeo claims he was assaulted.

In a letter dated Jan. 24, 2007, State Police told DeMeo's attorney, Kevin A. Luibrand, they had no reports on file about the case.

They also denied Luibrand's request for copies of the tapes of their police radio calls, saying it would "constitute an unwarranted invasion of the personal privacy of those concerned," records show.

The State Police later produced the incident report after Luibrand filed a court case demanding they produce it.

A judge scolded the police agency for playing "cat-and-mouse" with their records.

DeMeo, 26, of Rexford, is suing the bar, its owner, and the two troopers for his injuries, which included a severely damaged eye, according to the complaint filed in U.S. District Court.

State Police chief counsel Glenn Valle could not be reached for comment last week.

In an interview in April 2007, he said:

"We have conducted an investigation which has not been completed yet but at this point there is not a scintilla of evidence supporting the allegation that any member of the State Police was involved with injuring this individual."

"To the contrary, we have received evidence that indicates that the responding troopers came to the aid of this individual who was involved in a street altercation and called emergency medical services on his behalf."

DeMeo's attorney is now seeking a court order to force the bar's owner to preserve computer records of the tapes, which Spillenger said were lost.

Albany city police officials said that digital tapes of the incident captured by a city-owned surveillance camera in that area were recorded over within days of the incident.

-- Brendan J. Lyons

WHY, OF COURSE, THEY DIDN'T ...

THAT WOULD BE UNTHINKABLE, NOW WOULDN'T IT?

And so ...

"Rogue unit claims denied - State Police officials say political espionage teams never existed"

By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union

First published: Monday, May 12, 2008

The State Police never had a "renegade unit" within the agency that engaged in political espionage against elected leaders or public office candidates, according to interviews with several current and former State Police officials.

The president of the agency's Police Benevolent Association and three former State Police superintendents -- Thomas Constantine, James W. McMahon and Wayne Bennett -- all question the validity of that assertion in recent published reports.

That position was bolstered by an Associated Press article on Saturday that, citing unnamed sources in the Pataki and Spitzer administrations, characterized the allegations as an old tale "given life in an increasingly partisan Capitol where screaming headlines of scandal" have dominated state government.

Still, six weeks ago Gov. David Paterson, citing the conspiracy theories from about 10 fellow lawmakers, called for an unprecedented investigation of the agency as he granted subpoena power to Attorney General Andrew M. Cuomo.

Find answers, the governor told Cuomo.

But key law enforcement figures from the past and present said that while Cuomo might unearth a few isolated cases of State Police employees abusing their positions for political purposes, he will not find evidence of an organized network, as was first alleged in a March 31 story in the New York Post that cited anonymous sources.

"It is our view that the State Police is not a dirty police agency, not an agency with rogue units such as the (New York Post) report falsely alleged," said Daniel M. De Federicis, president of the New York State Troopers PBA.

"I'm going on the record saying that ... supremely confident about that."

De Federicis said he has spoken to current and former troopers statewide, including some who were assigned to protect governors, and no one has knowledge of such a unit's existence.

Yet it's doubtful that anyone involved in such acts would admit it.

The former State Police leaders, who worked under various governors for 20 years dating to 1986, said the allegations may stem from something as simple as disgruntled lawmakers who believed they were ticketed and not let off because of a conspiracy.

"Is it possible that one or two or three people might be able to do something like this without being detected?"

"I suppose it's possible," said Bennett, who was appointed superintendent by Gov. George Pataki in September 2003 and remained in the post until his retirement, under Gov. Eliot Spitzer, in May 2007.

"Secrets do not remain secrets normally in police departments," Bennett said.

"If there was any kind of a rogue group of any significant number of people it certainly would've gotten out and we would've heard about it."

McMahon, now deputy executive director of the Virginia-based International Association of Chiefs of Police, agrees.

"There was no official unit nor in 37 years did I ever hear that in the State Police," said McMahon, a State Police superintendent under Gov. George Pataki from 1994 to 2003.

"I have never seen anything close to that."

"We don't keep dossiers on anybody unless there's an open criminal case and we don't call it dossiers."

"... There was no black bag units or no official units or anything like that."

"How long could something operate like that in today's environment that it wouldn't get out."

John Byrne, a retired Bureau of Criminal Investigation captain once based in Loudonville, said he never heard of a "renegade unit" that would secretly leak police reports, keep tabs on their private lives.

In the 1990s, Byrne spent five years at the agency's Albany headquarters as captain of the Special Investigations Unit.

Constantine, who retired as State Police superintendent in 1994 to take a top position at the U.S. Drug Enforcement Administration, said the agency was uncharacteristically exploited by Spitzer during last year's scandal involving the release of State Police travel itineraries on Senate Majority Leader Joseph L. Bruno.

Former Superintendent Preston Felton, who resigned from his post earlier this year, should have resigned earlier rather than follow orders from the governor's office to gather the information, Constantine said.

"I was very concerned about the integrity of the state and the integrity of the State Police," he said.

But, he added, "I would like to believe and I do believe there was no organization within the State Police that was involved in any systemic political spying."

"... I really doubt that."

The allegations surfaced several months after Felton, who could not be reached for comment for this article, admitted directing troopers to compile itineraries on Bruno's controversial use of State Police helicopters and ground escorts.

Felton acted at the direction of Spitzer's top aides, who released the public documents to the Times Union under the Freedom of Information Law.

Byrne and others admit what Felton did -- personally facilitating the matter -- was unprecedented.

"He may have been following orders, but this was never done before," Byrne said.

Accusations characterizing that preserving the records was unusual turned out to be false.

Other itineraries documenting Bruno's use of State Police aircraft had been kept dating back several years, according to other agency records provided to the Times Union in a subsequent request.

But Cuomo's three-week investigation of the matter last July concluded that Spitzer's aides had misused the agency for political purposes.

A report this spring by Albany County District Attorney David Soares said Spitzer lied about his involvement.

Cuomo's report also found that Bruno's use of State Police for campaign-related travel and other, undisclosed meetings was not criminal because it included government business.

But Cuomo also called Bruno's practices an "abuse of taxpayer resources."

De Federicis said the PBA is eager for Cuomo to investigate the latest State Police allegations, especially as they relate to questions of political espionage raised by former U.S. Rep. John Sweeney, R-Clifton Park.

Sweeney has privately blamed the leak of a State Police 911 report documenting a domestic dispute with his wife on people connected to Pataki.

His attorney and others close to the congressman suspect involvement by Pataki's former senior policy adviser, Zenia Mucha, and a former State Police colonel, Daniel Wiese, a close friend of Pataki's.

The report was leaked to three newspapers, including the Times Union, about two weeks before Sweeney's failed re-election bid in November 2006.

A second police report -- purported to document the 911 call -- also was leaked to news outlets on the eve of the election.

It contained a sanitized version of the incident and characterized the call as "assist citizen" with no mention of the fight.

PBA leaders contend the second report was fabricated by State Police officials to aid Sweeney's ailing campaign and cloud the validity of the first report.

Cuomo said he would investigate the leak of both documents.

The attorney general also confirmed his agency suspects someone at the New York Power Authority, where Wiese had been appointed by Pataki as a $179,000-a-year security director, may have tried to erase some of Wiese's computer files around the time Cuomo launched his investigation.

Wiese was suspended in the wake of the probe and The Associate Press reported Saturday that his salary has been discontinued.

Other questions about Wiese first surfaced four years ago when the Village Voice reported Wiese had invoked his Fifth Amendment right against self-incrimination during a grand jury investigation.

The probe centered on Pataki's 1994 gubernatorial campaign and whether the governor provided favoritism to state prison inmates seeking parole in exchange for campaign contributions from their families.

Wiese's name also emerged in a recent report in which the Albany County district attorney's office determined that Spitzer arranged for Wiese to give an interview to the New York Times regarding Bruno's use of state aircraft to attend fundraising events.

Wiese's powerful positions in the Pataki and Spitzer administrations enabled him to call on favors from troopers across the state, according to some State Police members[/u].

"There's enough smoke to be concerned about a possible fire," said a senior aide to Paterson.

Matthew Tynan, president of the 1,300-member NYS Police Investigators Association, agreed that the possibility of a special NYSP hit squad was farfetched.

"We're the most regulated and scrutinized police department outside of the New York City police in the state," Tynan said.

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.

"A who's who of lawyers for cops - Albany County investigators tap big names for rights suit defense"

By BRENDAN LYONS, Senior writer, Albany, New York Times Union

First published: Monday, May 12, 2008

ALBANY -- Several Albany County sheriff's investigators have retained some well-known attorneys to represent them in a federal lawsuit brought by a man who was arrested at a downtown bus station and forcibly sedated at Albany Medical Center Hospital during a fruitless search for drugs.

The lawyers include former District Attorney Paul Clyne, Stephen Coffey and John Reilly, an Albany Corporation Counsel attorney who regularly defends the city's police force in cases involving police misconduct allegations.

Reilly was retained by Scott Gavigan, a city detective assigned to the sheriff's Drug Interdiction Unit.

It's not clear whether the fees for the attorneys will be paid by taxpayers or if the investigators and their supervisor, Inspector John Burke, will pay legal fees out of their own pockets.

The defendants had been represented exclusively by Robert Roche, an Albany attorney paid by the county.

Tunde Clement, a convicted felon now in prison on unrelated drug charges, filed a lawsuit in March 2007 alleging civil rights violations and that he was a victim of assault and battery at the hands of sheriff's and hospital officials.

Sheriff's investigators arrested him on a minor charge -- resisting arrest -- after he stepped off a bus from New York City two years ago.

City Court Judge William Carter threw out the charge months later, in part on the grounds that police cannot arrest someone only for resisting arrest.

Clement was taken to a police station that day and forced to strip and squat naked as members of the sheriff's unit inspected his body for hidden drugs.

None were found.

They took him to Albany Med and, without obtaining a search warrant, asked hospital medical staff to forcibly sedate Clement and search his insides for contraband.

Most hospitals will not conduct such procedures without a court order unless a patient is endangered because they have ingested drugs.

Clement was clear-eyed and lucid when he refused to sign a consent form before hospital doctors drugged him and inserted a camera in his rectum.

They also X-rayed him and used drugs to force him to vomit the contents of his stomach, hospital records show.

Tests performed on Clement's blood and urine for the presence of drugs and alcohol were negative.

Clement was set free about eight hours after arriving at the hospital and given an appearance ticket for City Court.

John Queenan, Clement's attorney, filed a letter in federal court last week saying Albany County officials have not met pre-trial discovery deadlines for turning over their files.

Queenan also has asked for a conference to discuss the recent entry into the case by the high-profile local attorneys.

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.

"2 AMD executives out in restructuring amid slump, former server chief promoted"

Associated Press

Last updated: 7:02 p.m., Monday, May 12, 2008

SAN FRANCISCO -- Two executives have left Advanced Micro Devices Inc., including the head of the slumping chip maker's microprocessor division, as the company tries to engineer a dramatic turnaround to fend off larger rival Intel Corp.

The Sunnyvale-based company said Monday that Mario Rivas, executive vice president of the computing solutions group, and Michel Cadieux, chief talent officer, have resigned from AMD to "pursue new opportunities."

Rivas oversaw AMD's microprocessor business, which produces more than two-thirds of the company's total sales and has been under pressure the past two years.

AMD's sales have been dampened by intensifying competition from Intel and by technical glitches that delayed the launch of AMD's new Opteron server chip by eight months.

Rivas has been replaced by Randy Allen, who's been with AMD 24 years and most recently led the company's server business.

AMD did not disclose the reasons Rivas and Cadieux resigned, other than saying they were part of a series of management changes connected to the company's ongoing restructuring efforts.

AMD has lost more than $4 billion since the last three months of 2006 and its stock has fallen from over $40 in 2006 to around $7 today.

Last month the company announced plans to jettison about 1,600 workers out of 16,800 worldwide, in an overhaul expected to be finished by September.

The departures of Rivas and Cadieux come one month after AMD's chief technology officer, Phil Hester, resigned for undisclosed reasons.

AMD said Hester's departure was not related to the company's restructuring.

AMD shares rose 22 cents, or 3.2 percent, to close at $7.16.

IS NYS GOVERNOR DAVID PATERSON PLAYING POLITICS HERE TO APPEASE A STATE LEGISLATURE CAUCUS?

IT SURE DOES SOUND LIKE IT ...

And so ...

"New York farmers fear state labor policy will leave them without enough workers"

By CAROLYN THOMPSON, Associated Press

Last updated: 7:22 p.m., Monday, May 12, 2008

BATAVIA, N.Y. -- New York farmers say a shift in state policy is making it harder for them to hire experienced seasonal workers through federal guest-worker contracts.

During a meeting with Gov. David Paterson Monday, farmers said the state Labor Department is forcing less experienced domestic workers from Puerto Rico and elsewhere upon them by rejecting growers' applications to hire foreign workers on H-2A visas.

"There's been kind of a shift in the Department of Labor's response to growers trying to get certified for the H-2A workers, and it's been a shift from previous administrations," Oswego apple grower Eric Behling said.

"Other states have applied through the H-2A program and haven't met the resistance."

The H-2A program allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs.

Paterson said the state's handling of applications is dictated by federal law.

His labor commissioner, Patricia Smith, said the Labor Department has been accused of falling short in its efforts to recruit domestic workers.

"It got to the point where the Commonwealth of Puerto Rico threatened to sue the state of New York and get it decertified from the H-2A program," she said.

"We are balancing right now our legal requirements imposed upon us by the federal government with your needs to get as much labor as possible," she told farmers.

Paul Bencal of the Niagara County Farm Bureau said the state had "changed the rules mid-stride" by classifying Puerto Rican workers as domestic.

Farmers said they doubt the new hires will possess the experience, skill and reliability of long-time workers from places like Jamaica and Mexico, and fear their crops and business will suffer.

"We advertise for workers who can drive tractors and work in other areas of harvesting and during the year, trimming trees and that sort of thing," said Behling, who grows about 200 acres of apples.

"If we are forced to hire people ...."

"It's like they're pushing people onto us that are perhaps not qualified."

"Are they qualified to drive a tractor?"

Paterson said he would look to find a compromise to the issue in the federal farm agriculture bill.

In the meantime, Smith said she will work with labor officials in Puerto Rico to enlist more qualified workers.

"No one's going to be required to take workers that are not experienced," she said.

"NY judges warned against using authority to protest pay - NY panel warns judges against using rulings from the bench to protest lack of pay raises"

Associated Press

Last updated: 11:32 a.m., Monday, May 12, 2008

ALBANY -- New York's Judicial Conduct Commission is warning judges not to let a dispute over pay raises affect their courtroom behavior.

The panel that disciplines judges won't say if any are being investigated for delaying cases as part of a protest over the Legislature's failure to approve judicial pay raises for nearly a decade.

The commission says it's reacting to newspaper stories that some judges were sending a message to legislators.

Some judges have recused themselves from cases brought by state legislators and their law firms, citing a conflict of interest.

Chief Judge Judith Kaye is leading a lawsuit against the Legislature to secure raises, but has warned judges not to protest through action from the bench.

"GOP bill would raise pension - Former secretary to state party chairman stands to get increased benefits"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Monday, May 12, 2008

ALBANY -- Republican lawmakers want the former secretary to the state GOP chairman to get a bigger public pension than the one she's on course to receive.

A bill advanced by the Senate Rules Committee, controlled by Majority Leader Joseph L. Bruno and sponsored by Assemblyman Rob Walker, R-Hicksville, would improve Julie A. Cleary's benefits at the expense of New York state's pension fund and her employer, the Nassau County Board of Elections.

The bill is now in committees.

Cleary is the former secretary for Nassau County GOP Chairman Joseph Mondello.

In 2006, Bruno helped Mondello become the head of the state party.

The bill is one of dozens that surface each year to give specific public employees improved pensions.

When successful, such legislation adds to the liabilities of the retirement fund, now at $154.5 billion in value.

State officials have been looking at drains on the pension fund, including what Attorney General Andrew Cuomo has called widespread fraud by lawyers and other private professionals who have manipulated the system to obtain taxpayer-funded pensions.

The bill for Cleary is uncommon in a few ways, say aides to state Comptroller Thomas DiNapoli, a former Nassau County assemblyman.

Cleary, who worked for the state Senate from 1998 to 2004, began working for the Nassau County elections commission in 2004, public records show.

She is a $107,531-per-year executive assistant to the Republican elections commissioner.

She said she doesn't know anything about the bill and seemed surprised when a reporter read it to her over the telephone.

She said she would call back after taking care of some business, but did not.

Records show a Julie A. Cleary, of Wantagh, will turn 55 this June.

The bill for her was first introduced by the same sponsors in 2007 to reclassify her as a Tier 1 employee instead of Tier 2.

The improved status means many more benefits and a bigger pension, although the comptroller's office had no estimates.

If she is designated as a Tier 1 member, she can retire at 55 with no early retirement penalties.

As a Tier 2 member with less than 30 years of service, she would face an early retirement reduction of 27 percent, according to the comptroller's office.

Also, as a Tier 1 member, her final average salary calculation, on which the pension is based, could also be greater because Tier 1 employees may cash in more of their unused vacation time.

The bill also would reset the start of her membership in the pension system to Dec. 31, 1971.

It says that "through no fault of her own" Cleary was put into the system in Jan. 1, 1974, but doesn't say if that was a mistake.

It said she was already given three years of pension credits.

Walker said he submitted the bill to help a constituent fix her status, referring to Cleary.

A spokesman for Bruno did not immediately respond.

Nassau County officials say they have no record of Cleary being on the payroll until 2004.

Jennifer Freeman, a spokeswoman for DiNapoli, said the bill is unusual because it comes with a past service cost of about $51,800, which would be paid to the pension fund by all employers who contribute to the retirement system -- state agencies, municipalities and other public entities.

This cost would make up for shortages paid to the pension fund during the longer period of Cleary's membership in the system.

Usually, Freeman said, such make-up costs are paid only by the person's employer.

"This is atypical," Freeman said.

The bill would also cost Nassau County $1,100 annually.

Every year 150 to 180 bills are introduced involving individual pensions, Freeman said, and 20 to 30 become law.

Stephen Madarasz, a spokesman for the Civil Service Employees Association, said he isn't surprised about the Cleary measure because of quirks in the retirement system, which has four tiers.

Tier 1 is the most generous.

Madarasz said he has heard of employees needing to straighten out their start times for pension purposes, but if one person's issues are fixed and others' are not, that isn't fair.

"It's harder to make a case for one person as opposed to a class of persons," he said.

The justification for the improved pension for Cleary is thin, said Sen. Craig Johnson, a Democrat from Nassau County.

Cleary did not provide further explanation, but said her public career began in 1971.

Matthew Walter, a spokesman for Mondello, said he could not provide any information.

Walker said he doubts the Cleary measure will pass because local governments affected usually must support such legislation.

He said Nassau County, led by Democratic Executive Thomas Suozzi, is unlikely to back up the bill.

Suozzi, chairman of a state commission aiming to reduce the costs of government, said:

"If Ms. Cleary was truly misclassified on the beginning of her employment, there may be some merit."

"But if this is just an attempt to bump someone's pension because she's politically connected, that would be completely inappropriate."

Two years ago, the Rules Committee, also controlled by Bruno at the time, submitted a bill to improve the pension of a former business associate of the senator.

The man had been fired twice from state jobs.

That pension bill, to add almost four years of extra state service time to boost the retirement payout to Peter A. Chiefari, a longtime Rensselaer County resident, did not succeed.

James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.

"A murky world revealed - Schenectady drug case transcripts indicate a sophisticated ring"

By PAUL NELSON, Staff writer, Albany, New York Times Union

First published: Tuesday, May 13, 2008

SCHENECTADY -- Dealers made profits in the thousands, moved cocaine by the kilo and worked out a schedule among themselves so that there was no conflict.

Transcripts of State Police wiretaps reviewed by the Times Union Monday revealed more details into the inner workings of a sophisticated drug syndicate that allegedly involved the wife and stepson of onetime Police Chief Gregory T. Kaczmarek, among others.

The 13-month-long federal, state and local investigation into the sale and transport of cocaine and heroin between Suffolk County, Long Island and Schenectady culminated last week with the indictment of nearly two dozen people, among them alleged ringleaders Kerry "Slim" or "K" Kirkem and Oscar "O" Mora.

Authorities allege that Kirkem, 40, of both Schenectady and Waterford, and Mora, 30, of Waterford, ran the organization.

A city man also was arrested over the weekend at the Schenectady County Jail while visiting drug courier suspect Misty Gallo, according to Undersheriff Gordon Pollard.

Meanwhile, two other alleged members of the ring -- Maximo Doe of Coram, Long Island, and Wilfred Cordero of Schenectady -- remained at large as of Monday afternoon, said Lee Park, a spokesman for the state attorney general's office, which is leading the probe.

"It is an active investigation," Park said.

Miles Smith, the 20-year-old son of Greg and Lisa Kaczmarek, was released from the Schenectady County Jail Monday on $10,000 cash bail, Pollard said.

Greg Kaczmarek, who retired as chief of police in 2002, has not been charged.

Last week, he bailed out his wife.

The transcripts reviewed by the Times Union primarily center on wiretapped phone calls made between Jan. 31 and March 3 of this year.

In those conversations, numerous callers are heard making arrangements for the sale or pickup of drugs at various locations, ranging from four apartments in Schenectady and one in Coram, Suffolk County.

The transcript, along with the the 54-page indictment, unsealed May 8, provides an indication of the sophistication of the operation, noting that members of the ring rented so-called "stash houses" where they would allegedly keep drugs, cash and weapons.

Prosecutors also contend ring members would communicate via phone "in a guarded and cryptic" manner to avoid detection.

Kirkem allegedly boasts to one of his associates of his unlimited access to large quantities of crack cocaine.

"I got all the crack ... I got all the crack in the world, you heard me?" Kirkem allegedly tells accused ring member Hazel Nader in a Feb. 8 conversation, according to the transcript.

The transcript also captures several discussions between Kirkem and Gallo, who is accused of being in the process of driving thousands of dollars' worth of drugs from downstate when she was pulled over in late February by State Police.

She cries hysterically upon later discovering the cargo is missing, surreptitiously removed from the trunk of her vehicle by State Police while she was being given a field sobriety test:

Gallo: (Crying) I said it's not in my trunk no more.

Kirkem: I can't hear you ... You calm down. What happened?

Gallo: (Crying) I looked in my trunk ...

Kirkem: Your what?

Gallo: There's nothing in my trunk no more.

In another part of the transcript, Lisa Kaczmarek is in a taped phone conversation with her associates on Feb. 18 saying that her husband would "mule" or carry cocaine for the operation, and that he would "flash his badge" if need be.

The indictment alleges the former chief and his wife met with Kirkem Feb. 20 to discuss what to do and how to proceed in the aftermath of the police seizure of their drugs.

City police spokesman Lt. Brian Killcullen said Monday the department would need to find out what badge Kaczmarek was issued before deciding what, if anything, to do.

"We'll reach out and see what was issued," he said.

"The comments he made (about the badge) are not in and of themselves quite the same as someone actually flashing a badge and looking for some kind of favor."

Former Schenectady Mayor Albert P. Jurczynski, who appointed Greg Kaczmarek as top cop, defended his decision and expressed disappointment at the news of the Kaczmareks' alleged role in the enterprise.

He stressed that though he and Greg Kaczmarek had a good working relationship, they were not best friends.

"I don't have an ax to grind and we're not bosom buddies," he added, noting he had not talked with Kaczmarek since the allegations surfaced and had no intentions to reach out to his former police chief.

Staff writers Jimmy Vielkind, Tena Tyler, Jen Patterson and News Research Director Sarah Hinman contributed to this report. Paul Nelson can be reached at 454-5347 or by e-mail at pnelson@timesunion.com.

"Stonerside Stables dispute dropped"

By DENNIS YUSKO, Staff writer, Albany, New York Times Union

Last updated: 1:53 p.m., Tuesday, May 13, 2008

SARATOGA SPRINGS -- A city Realtor has dropped a suit claiming it was owed a 5 percent commission on the nearly $17.5 million sale of the Stonerside Stables horse farm on Nelson Avenue.

Roohan Realty of Broadway sued Kentucky-based Stonerside Stables, LLC, last May in state Supreme Court in Saratoga County.

It alleged the stables' owner, Robert McNair, who also owns the Houston Texans football team, "failed and refused" to pay the real estate company an approximately $875,000 contracted commission on the horse farm's sale to Sheikh Mohammed bin Rashid Al Maktoum, who is the ruler of Dubai.

But attorneys representing McNair said Tuesday that Roohan Realty dropped the suit because it had no case.

The 2004 contract that promised the company commission if the prestigious 106-acre property sold expired after a year, well before the farm was sold in January 2007, said Randall Ezick, local counsel for Stonerside Stables.

"They got sued when there was no basis for it," Ezick said of his client.

Owner Tom Roohan did not respond to a request for a comment.

Michele Anderson, his attorney in the case, confirmed the litigation was recently discontinued, but declined to discuss it.

Stonerside Stables is located at 36 Nelson Ave., which adjoins Saratoga Race Course.

It includes a one-mile training track, 46 horse stalls in two stables, a mansion and a dairy barn that has been converted to a lodge.

Robert McNair and his wife, Janice, purchased the horse farm and 14 acres of property east of the Northway for $5.5 million in 1999 from the estate of Betsey Cushing Whitney.

Sheik Mohammed's Darley Stud Management now operates it.

"Nine Mile Point plant loses power, reduces output - Power interruption to upstate NY nuclear plant called a low level emergency, output reduced"

Associated Press

Last updated: 2:32 p.m., Tuesday, May 13, 2008

SCRIBA, N.Y. -- Power output from an upstate New York nuclear reactor was reduced when off-site electricity to the plant was lost.

The U.S. Nuclear Regulatory Commission says the incident Tuesday at the Nine Mile Point Unit 1 reactor is an unusual event, the lowest of its four emergency classifications.

The Lake Ontario plant has two incoming power lines, one of which was shut down for maintenance.

Officials are trying to learn why the second stopped providing power just before 8:30 a.m.

Diesel generators at the plant kicked in, providing emergency power while operators reduced output to 90 percent of normal.

Full power was restored later in the morning and the unusual event was declared over at 10:22. a.m.

"State lawmakers grapple with foreclosure bills - One-year moratorium? Sixty-day notice for borrowers? Assembly, Senate consider options"

By CHRIS CHURCHILL, Business writer, Albany, New York Times Union

First published: Tuesday, May 13, 2008

ALBANY -- A move to stop home foreclosures for one year now heads to the state Senate, which also is considering separate foreclosure legislation proposed by Gov. David Paterson.

With the number of foreclosures rising statewide, the Assembly, controlled by Democrats, last week passed legislation that would impose the foreclosure moratorium.

The Senate's Republican majority seems unlikely to pass the bill, though it may offer more support to Paterson's foreclosure proposals.

Paterson's multifaceted bill, introduced earlier this month in both the Senate and Assembly, would require lenders to send notice to borrowers 60 days before beginning foreclosure, and would mandate that the lender and homeowner meet to attempt a settlement.

"This bill is really about getting the right parties talking," said Lora LeFabvre, the governor's deputy secretary for public finance and local government.

The bill, which was the subject of a Senate Banking Committee hearing on Monday, also would strengthen the state's anti-predatory lending law, establish a "reasonable ability to repay" standard for home loans and require the registration of mortgage loan servicers, among other steps.

Paterson's bill does not include a foreclosure moratorium -- to the relief of bankers and others who say such a move would make it harder for New Yorkers to get a mortgage.

It "would present a clear threat to credit availability," said John Scarchilli, president of Pioneer Bank in Troy and chairman of the New York Bankers Association.

On Monday, state Banking Superintendent Richard Neiman cited statistics claiming there were 14,000 foreclosure filings in New York during the first three months of the year, up 40 percent from 2007.

Approximately one in 200 New York homes is in the foreclosure process, Neiman told the banking committee.

Though New York's foreclosure problem is generally considered modest compared to other states, lawmakers on Monday were receptive to Paterson's legislation.

State Sen. Hugh Farley, R-Schenectady, chairman of the banking committee, called the governor's bill "the vehicle" by which lawmakers would address the crisis.

Said State Sen. Martin Connor, D-Brooklyn:

"To say that New York is not as bad as other states should not belittle the fact that New York has an enormous problem."

But speakers warned lawmakers to beware of unintended consequences.

They said the legislation, even without a moratorium, could lead banks to become wary of lending in New York -- and that could harm the consumers and exacerbate a housing downturn.

Scarchilli predicted the 60-day notification provision would add as much as four months to the foreclosure process.

That's because it adds another 60-day delay if the borrower responds, he said, adding that New York's mortgage foreclosure process is already the nation's longest.

Still, LeFabvre, the governor's deputy secretary, said such a delay could prove beneficial if it allowed struggling borrowers to negotiate with lenders and prevent the loss of a home.

In Massachusetts, Gov. Deval Patrick has pushed for a six-month foreclosure moratorium, and U.S. Sen. Hillary Rodham Clinton, D-N.Y., has advocated a 90-day national foreclosure freeze.

The bill passed by the Assembly would freeze foreclosures for borrowers making the minimum monthly payments determined by a judge.

LeFabvre said Paterson decided against including a moratorium in his legislation because it would only freeze the process without encouraging conversation between lenders and borrowers.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

"Pay raise suit no excuse for judges - Cases involving lawmakers or their law firms can't be refused, Commission on Judicial Conduct rules"

By JAY JOCHNOWITZ, State editor, Albany, New York Times Union

First published: Tuesday, May 13, 2008

ALBANY -- New York's judges can't refuse to hear cases involving state lawmakers or legislators' law firms because Chief Judge Judith Kaye and the Unified Court System are suing the Legislature for a judicial pay hike, the Commission on Judicial Conduct said Monday.

Moreover, the panel warned, it wouldn't help the judiciary's image if the commission has to look into instances of judges bowing out of cases involving lawmakers or their firms.

A commission spokesman would not say whether any judges are under investigation for refusing to hear such cases.

The issue came to the fore in recent weeks after various judges around the state started citing conflicts of interest because of Kaye's battle with the Legislature.

Kaye and the Unified Court System have sued over the lack of raises for judges since 1999.

Lawmakers, who also haven't had a raise in that time, must approve raises for the judiciary.

The commission, backed by an opinion from its Advisory Committee on Judicial Ethics, said Kaye's suit alone doesn't create a conflict for judges.

The advisory committee found that although judges have an interest in the outcome of the suit, they aren't named parties and have no role in guiding the litigation.

The advisory committee found that "the relationship between a judge, who is not a named party to that lawsuit, and a legislator remains too remote as a factor, in and of itself, to reasonably call into question a judge's impartiality when a legislator or a member of his/her law firm appears before a judge in an unrelated action."

Recusing themselves with no other basis, the commission suggested, could be considered misconduct, since under state rules judges must "perform the duties of judicial office impartially and fairly."

Nor are they supposed to comment on pending cases.

The commission, which said it issued the statement in response to a request for guidance from four judges, also warned judges they could come under scrutiny if they don't follow the rules.

"It would benefit neither the judiciary nor their justifiable interest in a fair compensation package for the Commission to be constrained to consider complaints against judges alleged to have violated these or other sections of the Rules in connection with the salary issue," the panel said.

"The Commission urges all parties with a role to play in this matter to do so responsibly, professionally and with the utmost sensitivity to promoting public confidence in the independence, integrity, and impartiality of the judiciary, the courts and the administration of justice."

Jay Jochnowitz can be reached at 454-5424 or by e-mail at jjochnowitz@timesunion.com.

'Picture worth a thousand words? - Obscene gesture aside, defenders say nanotech chief's worth even more"

By MARC PARRY, Staff writer, Albany, New York Times Union

First published: Tuesday, May 13, 2008

ALBANY -- Pay Alain Kaloyeros the highest salary of any state employee, and officials gush about why he's worth it.

Splash a picture of him flipping the bird at a photographer in the New York Post, and lawmakers tell you about his great sense of humor.

"He's known for saying exactly what he feels," said Ron Canestrari, a Cohoes Democrat.

"That's part of his charm."

The shot of Kaloyeros surfaced Monday on Page 3 of the tabloid.

It's a group shot from a party at the University at Albany's College of Nanoscale Science and Engineering, which Kaloyeros runs.

Nine other people in the picture are mostly smiling, but Kaloyeros glares at the camera, his middle finger extended.

Kaloyeros is paid $666,995 by UAlbany, and makes another $250,000 from the Research Foundation of the State University of New York.

The state has poured hundreds of millions of dollars into his nanotech center.

A spokesman for Kaloyeros didn't return messages seeking comment on why a guy usually photographed at podiums announcing ventures was caught in a tabloid making obscene gestures.

The Post -- which got the photo from "a tipster" who said it demonstrated Kaloyeros' "legendary arrogance" -- quoted Kaloyeros saying he was "probably joking."

Assemblyman Jack McEneny loved that quote -- an example, he said, of Kaloyeros' wicked humor.

The Albany Democrat went on to praise Kaloyeros as "one of those rare personalities" -- a guy at home with science but also personable enough to put lay people and investors at ease.

McEneny offered this speculation on who leaked the picture to the Post: "Probably someone who might earn a little bit less."

"Senate serves up pork - GOP majority's $218M in capital projects include Skidmore music center, HVCC program"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Wednesday, May 14, 2008

ALBANY -- The Senate on Tuesday unveiled $218 million in capital projects, providing funds for private companies, local authorities and previously undisclosed big-ticket expenses such as a music center at Skidmore College and a semiconductor plant in Saratoga County.

The items, some of which were labeled by former Gov. Eliot Spitzer as "a horrendous thing to look at ... dripping with fat," include $4 million for Senate Majority Leader Joseph L. Bruno's alma mater, Skidmore College in Saratoga Springs, and $6 million for a semiconductor training center at Hudson Valley Community College, also in Bruno's district.

The Skidmore project is supposed to be the subject of a news conference Friday involving the Arthur Zankel Music Center, a campus concert facility now under construction, with Bruno speaking, a Skidmore spokesman said.

No one would provide details Tuesday.

Also, the semiconductor plant at the New York State Energy Research & Development Authority's property in Saratoga County appeared to be set for a future announcement, although it may be related to a neighboring site for Advanced Micro Devices, one lawmaker said.

The projects amount to about $218 million of the $350 million the Senate can spend at its discretion.

None of the projects are for Democrats' programs, said Sen. Liz Krueger, D-Manhattan, who complained the list was dropped on the Senate minority by surprise and passed in three seconds without many members knowing what happened.

"What's the process?"

"What's the review?"

"Why?" she asked.

A spokesman for the Senate GOP did not return a call.

The remaining funds likely will be the subject of another resolution later this session, a Senate aide said.

In a news release, Bruno called the grants "smart investments" but did not spell out what the money is being used for.

The Assembly released a list of $244 million worth of projects on April 9, and also did not clarify what the recipients will do with the funds.

The Assembly has $350 million of its own to spend on capital projects.

The Assembly list includes matching funds for a few of the same projects as the Senate.

For instance, there's $1.7 million for the Hotel Syracuse and $10 million for the proposed Marcy nanocenter site development, which also show up on the Senate list.

The Senate list includes sums as small as $500,000 for the Baseball Hall of Fame, Albany Medical Center and Albany College of Pharmacy, and as large as $12.5 million for a Hofstra University Medical School building.

The money is part of a total $1.2 billion in the budget for projects desired by the Senate and Assembly majorities and Gov. David Paterson.

Paterson has not revealed all his projects yet.

"This is basically capital pork," said E.J. McMahon, director of the Manhattan Institute's Empire Center for New York State Policy.

He said the money would be better used to shore up multibillion-dollar gaps in the state's plans for highways, bridges and mass transit.

The Senate set up money for several private companies.

GE would get $3 million for a digital medical X-ray equipment manufacturing plant, a project at the Rensselaer Technology Park touted by Bruno.

The Hyatt Regency Hotel in Buffalo would get a total of $1.7 million.

New Process Gear in Syracuse gets $5 million, on top of grants in previous years and $13 million from the Assembly.

Rochester Institute of Technology is in line for $10 million for its Golisano Institute for Sustainability.

Other businesses on the list include WNYC Public Radio, which is in line for $2 million for a state-of-the-art radio communications operation, and YMCA of Greater Rochester, which is to get $1.5 million.

M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.

"Class-action lawsuit in state pension cases? - Lawyer says he is preparing to challenge the stripping of credits"

By RICK KARLIN, Capitol bureau, Albany, New York Times Union

First published: Wednesday, May 14, 2008

An Albany lawyer is preparing a class-action lawsuit to try to stop Attorney General Andrew Cuomo and Comptroller Thomas DiNapoli from stripping pension credits from lawyers who state officials say don't deserve them.

The lawsuit will likely be filed later this week in state Supreme Court in Albany County and will seek restraining orders against Cuomo and DiNapoli, said lawyer James Roemer, who specializes in public sector employment issues.

While he wouldn't immediately divulge details of his legal strategy or name the initial plaintiffs, Roemer said he's representing four individuals from Long Island who have lost pension credits during the past few weeks.

Roemer said he believes thousands of lawyers could potentially join the suit, given the many private attorneys who work for government entities, including towns and villages, school boards and utility districts, and who have enrolled in the state pension system.

Cuomo and DiNapoli say lawyers in private practice generally shouldn't get public pensions.

"We've been working on this project, if you will, for almost a month and we've dubbed it 'Operation Pushback,' " said Roemer who is with the Roemer Wallins & Minneaux.

He also is working with members of the DeGraff, Foy and Kunz firm.

For the past few weeks, following reports of alleged pension fund abuse reported in the Long Island newspaper Newsday, DiNapoli and Cuomo have been investigating lawyers who've worked for government organizations, starting with school districts and BOCES.

So far, DiNapoli has suspended about a dozen people from the pension system or stripped them of their retirement credits, saying they should have been categorized as independent contractors rather than employees.

And Cuomo last week got settlements worth $100,000.

But Roemer, 63, who himself draws a six-figure pension for his work for a number of Capital Region municipalities, contends that the pensions are justified.

"For 70 years plus, this has been authorized," Roemer said, explaining that no one from the comptroller or other office had questioned the practice until now.

Cuomo spokesman John Milgrim said his office couldn't comment since the legal action hasn't been filed.

DiNapoli spokeswoman Emily DeSantis predicted the comptroller would withstand any challenge.

"These individuals were not entitled to that service credit because they acted as independent contractors, not employees," she said of those who've lost their credits.

"We are confident that our determinations will be upheld."

Roemer has been one of the central characters in the pension controversy.

His situation was detailed in a 1997 Times Union story that disclosed how he had accrued $80,240 in annual pension credits for his work as a labor contract negotiator for the cities of Utica, Schenectady and Saratoga Springs, as well as the town of Colonie and Schoharie and Sullivan counties.

By the time Roemer started collecting his pension in 2001, it was worth $119,874 a year, according to state records.

While Cuomo hasn't publicly commented on Roemer's case in particular, his situation fits what the attorney general said is a pattern in which lawyers statewide have improperly gathered pension credits.

Essentially, Cuomo and DiNapoli say, these lawyers as well as some other professionals didn't meet commonly recognized conditions for being considered employees.

Those conditions include having one's own place to work, being directed by a supervisor and keeping regular hours.

Roemer maintains he and others meet that threshold.

"You don't need a desk and a telephone to be considered an employee," Roemer said.

He has set up a Web site for people looking to learn more about the lawsuit, at http://snysr.com, although as of Tuesday evening it was still under construction.

Rick Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com. James M. Odato contributed to this story.

THIS FOLLOWING STORY IS ILLUSTRATIVE OF HOW CORRUPTION IN NEW YORK STATE HAS BECOME SO ENTRENCHED ...

AND THE WRITER, FRED "THE BROWN" LeBRUN IS A GREAT CHAMPION OF CORRUPTION IN NEW YORK, AND THOSE WHO ARE CORRUPT IN GOVERNMENT ...

THE MEDIA IN NEW YORK STATE IS NOT A PART OF THE SOLUTION OF CORRUPTION ...

IT IS A PART OF THE PROBLEM OF CORRUPTION ...

And so ...

"Cuomo pension probe tinged with a certain lack of fair play"

By FRED LEBRUN, Staff writer, Albany, New York Times Union

First published: Wednesday, May 14, 2008

On the best of days, elevating the reputation of lawyers in general is too heavy a lift for one mere columnist.

And these are certainly not the best of days for the image of the legal profession, thanks in great measure to state Attorney General Andrew Cuomo and his zealous rooting out of lawyers who may have gotten public retirement benefits for which they were not eligible.

That Cuomo is himself a lawyer, and the First Lawyer of the state to boot, must be disconcerting at the least to the lawyer community.

Particularly because the brush with which he's tarring a wide range of attorneys who don't deserve it is usually the stuff of spiteful lawyer-bashing.

Hasn't Andrew heard all those professional courtesy jokes?

Since February, Cuomo has been investigating the employment relationship of lawyers and other licensed professionals -- but mostly lawyers -- with school districts and various municipal units across the state.

It all started on Long Island and involved a handful of lawyers claimed as full- or part-time employees by one or more school districts, when in fact they were independent contractors, and therefore not eligible for state retirement pension credits.

Since then, to great fanfare and lots of razzle, Cuomo has broadened his inquiry statewide into every type of municipal arrangement.

No lawyer can hide.

He's repeatedly called the practice of fudging lawyers' employee status a long-standing scam.

"In many instances, these were not simple misunderstandings, but repeated acts of fraud," he stated in one news release.

My retort is, how many is many?

Which ones intended to defraud the public retirement system, as opposed to which ones had no idea, or thought it was a vetted practice because it has been going on for nearly 50 years, or took the retirement credits in lieu of actual pay?

It's that broad brush business, and it makes me -- dare I say it -- sympathetic to most lawyers who might be in Andrew Cuomo's cross-hairs.

For 40 years, especially earlier in my career, I spent countless hours covering the basics of community life throughout the Capital Region.

Every public entity from library boards to zoning boards, town boards and school boards -- even sewer district meetings.

Really exciting stuff.

There was always an attorney present, as there had to be for the legal intricacies involved.

They were paid little or nothing, worked long hours, didn't court the limelight, often acted as spokesmen because they knew what not to say and for the most part got little out of it except fulfilling a sense of civic responsibility.

Yes, there are still those who believe in public service.

Now, maybe they were also looking to make political connections, or work up a client list or ingratiate themselves for some other reason.

What's wrong with that?

The point is they were given retirement credits because they gave tremendous value to their communities and, I would argue, deserved it.

I was reminded of all this after reading reporter Rick Karlin's story Tuesday about Albany County Judge Stephen Herrick recalling how he was hired to do Albany School District legal work.

He charged the district modestly, because of retirement credits.

"I never would have taken the job if I was taken out of the pension system," he said.

A statement, I suspect, that has been repeated in one form or another by hundreds and hundreds of lawyers from Montauk to Williamsville.

Now, has Andrew Cuomo done a good thing by pursuing lawyers defrauding the system?

Of course.

Kudos to the attorney general for that.

But he has not been particularly discriminating when it comes to identifying those whose intent is clear and provable, and the vast majority of lawyers who simply don't deserve to be tarred with the same brush.

Especially because common sense dictates that so many lawyers would not risk their licenses to practice and their reputations within their communities over a few thousand in pension benefits.

And, because every lawyer arrangement being assailed by the attorney general also involved the approval of elected officials, boards, other lawyers, and repeated auditing all the way up to the state comptroller.

For almost 50 years.

Clearly, this was accepted practice, not necessarily created by lawyers in the first place.

So, if we need to change the rules and make it clear what lawyers can't do with the retirement system, let's do it.

And enforce it in the future, but not in the past when it was murky or unknown.

Because it's just as plausible to see the current system raising the AG's ire for being devised over time by financially stricken municipal units looking for alternative compensations for badly needed and expensive lawyers that didn't require local taxpayer dollars, but used good, old "state aid" instead.

Hardly an unprecedented solution to a local problem.

Fred LeBrun can be reached at 454-5453 or by e-mail at flebrun@timesunion.com.

"NY governor proposes stricter oversight of doctors, misconduct and infection control"

By VALERIE BAUMAN, Associated Press

Last updated: 12:12 a.m., Wednesday, May 14, 2008

ALBANY -- New Yorkers would be let in on the secret when their doctor is charged with misconduct under a proposal by New York Gov. David Paterson expected to be announced Wednesday.

The measure would end the protection for doctors against disclosure of the charges until a final determination is made.

Paterson is introducing a broad patient safety measure designed to tell the public more about everything from physician drug use to infectious disease risks.

It addresses concerns raised by past detractors, including a critical 2005 report from the New York Comptroller's Office that found the state could do much better at rooting out bad doctors.

"It signals that the health department is going to get tough on dangerous doctors," said Blair Horner, a spokesman for the New York Public Interest Research Group.

The proposal was partially prompted by Long Island anesthesiologist Dr. Harvey Finkelstein, who health officials said dipped syringes more than once into vials of medicine, contaminating the drugs and infecting at least one person with hepatitis.

The bill would give more power to the state Office of Professional Medical Conduct, which monitors and disciplines physicians.

"New York is in line with efforts of other states, and really trying to strengthen the information that comes to the office of professional medical conduct," said Lisa Robin, senior vice president of member services for the Federation of State Medical Boards.

"I know much of it reflects the Federation's policies, with increasing the reporting requirements."

Any professional discipline charges would be made public.

Right now the public isn't notified of physician misconduct unless and until the doctor is found guilty.

Charges are issued after an investigation is complete, which can take an average of about six months.

State law is currently silent about when officials can disclose charges of professional misconduct to the public, but attorneys for the state say legal precedent requires a legislative change before misconduct charges against a doctor can be released.

The comptroller's office found that the OPMC was thorough in its investigation of cases of potential misconduct, but wasn't proactively rooting it out.

Instead, the report said the OPMC relied primarily on referrals from outside sources -- which didn't always let them know about every instance of potential misconduct.

This has hindered the office's ability to protect consumers.

"Some of the older reporting and disciplinary things had more to do with hospitals," New York Health Commissioner Dr. Richard Daines said.

"Now we're carrying it into office-based surgery and office-based practices, so we have reporting and oversight."

Paterson's proposal would require the OPMC to continuously review medical malpractice claims reported to the Department of Health to identify potential misconduct and investigate those instances.

"These are common sense measures that I think most New Yorkers would be surprised aren't currently the law," Horner said.

"Sadly it's been a long time since anything serious has been done to improve patient protection in New York, and we think this is a good step in that direction."

Courts would also be required to report to OPMC any time a doctor was sentenced for misdemeanor or felony offenses.

Health officials say that right now they eventually find out about criminal sentences, but the bill would get them that information much faster.

Another major change would be that the proposal would also extend existing laws on infection control to keep up with the changing world of medically transmitted infections.

The infection-related aspects of the proposal were, in part, a reaction to Finkelstein's story.

The investigation was triggered in December 2004 when health officials in Nassau County found two of his patients had hepatitis C.

Since then, Finkelstein has said he corrected his method.

The state Health Department didn't determine until 2006 that it was necessary to notify thousands of Finkelstein's patients that they should be tested for HIV and hepatitis.

"Over the course of the last few months, in looking at the Finkelstein case, it has been determined that we need a more aggressive stance," said Joseph Baker III, assistant deputy secretary for Health and Human Services.

The comptroller's report had also raised concerns about how long it could take to investigate instances of potential misconduct.

Paterson's proposal would authorize the health commissioner to inform the public of health threats, despite the fact that the information would otherwise be considered confidential.

In cases of potential communicable disease threats, the commissioner would also be able to order doctors to 'cease and desist' performing specific procedures until the OPMC can hold a hearing.

"He wants to make sure the commissioner has all the tools and the powers at his disposal to protect the public health, and, while protecting the due process rights of doctors, making sure that doctors that commit misconduct are either properly retrained and, or taken out of the system -- if that's what needs to happen," Baker said.

Much of Paterson's bill is focused on speeding the state's response to public health threats and getting information to patients more quickly.

"While in many instances, yes, you can get a subpoena, you can get a court order -- there are ways to get things done -- we need to be able to act very swiftly," Daines said.

------

On the Net: http://www.health.state.ny.us/nysdoh/opmc/main.htm

http://www.nydoctorprofile.com/

"'Booker' in Spitzer prostitution case pleads guilty"

By Wire report

Last updated: 11:10 a.m., Wednesday, May 14, 2008

A woman accused of being a prostitution ring booker has pleaded guilty in the federal probe that brought down former NY Gov. Eliot Spitzer, the Associated Press is reporting.

Temeka Rachelle Lewis, 32, pleaded guilty Wednesday in Manhattan federal court to promoting prostitution and money laundering.

She is among four defendants in the case involving the Emperor's Club VIP call girl ring.

Court papers say the FBI secretly recorded conversations between Lewis and Spitzer about a Feb. 13 tryst with a prostitute in Washington.

Spitzer, who's identified in the court papers as Client No. 9, announced his resignation on March 12.

"Woman pleads guilty in Spitzer prostitution probe - Woman pleads guilty to booking clients in probe that brought down former NY Gov. Spitzer"

By DAVID B. CARUSO, Associated Press

Last updated: 7:12 p.m., Wednesday, May 14, 2008

NEW YORK -- A woman accused of booking clients for a high-priced call girl ring pleaded guilty Wednesday to money laundering and promoting prostitution in the federal probe that brought down former Gov. Eliot Spitzer.

Temeka Rachelle Lewis, who worked as a booking agent for the Emperor's Club VIP, is the first defendant to admit guilt in the case that led to Spitzer's resignation.

She made a brief court appearance in a plea bargain that obligates her to turn over records, testify before a grand jury if asked and answer any questions investigators may have about her role in arranging dates between Emperor's Club working girls and the agency's deep-pocketed clients.

Her agreement to cooperate was revealed in court papers filed by prosecutors, then reluctantly confirmed by her lawyer, Marc Agnifilo, after a federal magistrate turned down his request to have the records sealed.

Members of the news media had objected to a seal.

Agnifilo said Lewis, 32, has yet to be asked to appear before the grand jury.

He added that prosecutors have not disclosed whether the probe's next target is Spitzer, who has not been charged.

Asked why his client pleaded guilty, Agnifilo said Lewis, who majored in English at the University of Virginia and has never been in trouble with the law before, just wants to put the case behind her.

"She's basically a very good person."

"Sitting at a defense table in a federal courthouse is the last place she imagined she'd be," he said.

"I have no doubt she'll never be in trouble again."

Lewis, with her mother and sister looking on, appeared calm in court, then left without speaking to reporters.

Under federal sentencing guidelines she could face around 16 months in prison, or less, depending on the level of her cooperation with prosecutors, Agnifilo said.

Her sentencing was tentatively scheduled for August.

The Emperor's Club investigation began last year when banks flagged suspicious cash transfers to companies set up to disguise payments by the ring's clients.

Some of the transfers were traced to Spitzer.

The FBI disclosed in court papers that agents secretly recorded conversations between Lewis and Spitzer about a Feb. 13 tryst in Washington with a prostitute.

The former governor, identified in court papers only as Client 9, allegedly paid $4,300.

Spitzer, who is married and has three teenage daughters, resigned March 12, just days after his role in the case became public.

Spitzer has apologized without expressly acknowledging he had visited prostitutes.

The other defendants are Mark Brener, 62, of Cliffside Park, N.J., who is accused of running the ring; Cecil Suwal, 23, who lives with Brener; and Tanya Hollander, 36, of Rhinebeck, N.Y., who authorities said also worked as a booking agent for prostitutes.

Investigators say the ring charged $1,000 to $5,500 per hour for dozens of prostitutes in New York, Washington, Los Angeles, Miami, London and Paris.

As state attorney general, Spitzer built a reputation as a crusader against shady practices and overly generous compensation on Wall Street.

The Democrat's cases included prosecution of prostitution rings and the sex tourism industry.

"NY lawmakers optimistic about governor's proposal for stricter oversight of doctors"

By VALERIE BAUMAN, Associated Press

Last updated: 5:52 p.m., Wednesday, May 14, 2008

ALBANY -- Lawmakers say Gov. David Paterson's proposal to increase doctor oversight and prevent misconduct has a good chance of passing this session -- but with changes.

Assembly Health Committee Chairman Richard Gottfried, a New York City Democrat, says both legislative chambers will have a few concerns about Paterson's proposal to tell the public more about medical misconduct.

Gottfried says he's confident that some version of the bill will pass this session, but declined to comment on his concerns until he had more time to review the legislation.

"The infection control and physician discipline issues are very important," Gottfried said.

"The governor's initiative should help focus attention and bring about an agreement that can become law this session."

State Senate Health Committee Chairman Kemp Hannon, a Long Island Republican, has introduced his own measure, with goals that overlap with the governor's.

Overall, he says New York will likely pass legislation to increase patient safety, infection control and oversight of practitioners before the end of session in June.

"We try to be a little more pointed about dealing with infection control and education about infection control and about aiming that at ambulatory and outpatient settings," Hannon said of his own proposal.

"We also added in a requirement that the patient safety center annually review the physician profiles."

Under Paterson's proposal, any professional discipline charges would be made public.

Right now the public isn't notified of physician misconduct unless and until the doctor is found guilty.

Charges are issued after an investigation is complete, which can take an average of about six months.

The goal is to give the Office of Professional Medical Conduct more power and oversight of physicians, to provide more information to New Yorkers in the case of public health threats, and to prevent problems from happening in the first place.

"I don't see the issues here as breaking down on partisan lines, fortunately," Gottfried said.

"I think this is an issue where it's certainly doable for the legislature to come together and work out whatever issues we may have."

Vito Grasso, executive director of the New York state Academy of Family Physicians, said it's crucial to increase oversight, but Paterson's approach could unfairly damage the career of a physician who's not ultimately found guilty.

"I would also hope that if the individual was completely acquitted that information would be just as well-documented and publicized," Grasso said.

In 2007, the state Health Department received 8,163 complaints against doctors.

Of those, officials opened 4,151 investigations.

Ultimately charges were brought against just 311 physicians, and health officials said the vast majority of those were sustained -- the doctor was found guilty of misconduct.

State law is currently silent about when officials can disclose charges of professional misconduct to the public, but attorneys for the state say a legislative change is necessary before charges against a doctor can be released.

A 2005 investigation by the comptroller's office found that the OPMC was thorough in its investigation of cases of potential misconduct, but wasn't proactively rooting it out.

"The publication of charges is something that I would say is very common across the states," said Lisa Robin, senior vice president of member services for the Federation of State Medical Boards.

"So I would applaud the governor's office for introducing this legislation."

Paterson's proposal would also require the OPMC to continuously review medical malpractice claims reported to the Department of Health to identify and investigate potential misconduct.

Courts would have to report to OPMC any time a doctor was sentenced for misdemeanor or felony offenses.

Another major change would be that the proposal would extend existing laws on infection control to keep up with the changing world of medically transmitted infections.

The infection-related aspects of the proposal were, in part, a reaction to Dr. Harvey Finkelstein, an anesthesiologist from Long Island accused of dipping syringes more than once into vials of medicine, contaminating the drugs and infecting at least one person with hepatitis.

------

On the Net: http://www.health.state.ny.us/nysdoh/opmc/main.htm

http://www.nydoctorprofile.com/

http://www.health.state.ny.us/nysdoh/healt...tientsafety.htm

"New York Legislature releasing details of capital 'pork' - NY Legislature details $750 million in capital 'pork' going back home this election year"

By MICHAEL GORMLEY, Associated Press

Last updated: 5:33 p.m., Wednesday, May 14, 2008

ALBANY -- Senate and Assembly members will direct $750 million in pork-barrel spending for construction projects to recipients including colleges, downtown renewal programs and ethnic museums in their districts this election year.

Despite the $5 billion deficit and the prospect of $20 billion in deficits in the next three years, lawmakers contend the spending -- usually announced with much fanfare in their districts -- is essential for boosting the economy.

Among the projects Assembly members and senators found money for was $2 million for the Lesbian, Gay, Bisexual and Transgender Community Center; $3.4 million split between a Buffalo hotel and a Syracuse hotel; and $500,000 for the National Baseball Hall of Fame in Cooperstown.

"What's wrong with this is the public has no way to evaluate what the benefits are," said Elizabeth Lynam of the Citizens Budget Commission, an independent fiscal watchdog of government.

"They tend to be for narrow constituent bands, yet they are being funded from taxpayer-paid coffers."

The Senate's Republican majority detailed nearly $218 million in spending, none of which will go to Democrats trying to take over the majority this fall.

Democratic Gov. David Paterson is expected to give Democratic senators some of his share of the $1.2 billion in capital spending approved in April.

The Assembly released details of their $243 million share in April.

The Senate's list of grants was released Tuesday evening.

The Assembly released an Internet link on April 9 in one of several press releases issued on the day the state budget was passed.

Paterson hasn't yet released his list.

"Making smart investments to New York's economy and capital infrastructure is a vital component of keeping our state vibrant and competitive in the global marketplace," said Republican Senate Majority Leader Joseph Bruno, who has represented his district based in Rensselaer County since 1976.

Fiscal critics and good-government groups have long criticized such discretionary spending directed by individual lawmakers.

They say the projects chosen behind closed doors are funded based more on political need and a lawmaker's seniority than the need of communities.

The projects include more than $35 million for five State University of New York projects and several grants worth millions of dollars each for New York City museums and ethnic programs.

Among the spending:

--The Senate majority is providing more than $7 million to colleges, an airport and for development of a county industrial park in the district served by Senate Majority Leader Joseph Bruno.

That includes $4 million to his alma mater, Skidmore College in Saratoga Springs.

--The Senate also provided more than $35 million to Long Island projects, including waterfront development; a medical school building at Hofstra University; and for a high-tech "innovation center."

Long Island has long been a Senate Republicans' stronghold.

--The Assembly's grants include $15 million to the Queens Museum of Art, $10 million to the Coney Island Boardwalk, $2 million to the Brooklyn Academy of Music, and $25 million for the University at Rochester's Clinical and Translational Sciences Building.

The Assembly Democrats' strength is in New York City and upstate's biggest cities.

--The Assembly provided $2 million to WNYC National Public Radio in New York City and $750,000 for Millennium High School in Manhattan, an innovative public school that allows for less formal learning in small groups rather than traditional classrooms.

------

On the Net:

http://www.senate.state.ny.us

(see "Senate reports")

http://www.assembly.state.ny.us

(see "What's New" for April 9 press releases)

'Commission receives record complaints against judges - State commission reports record 1,711 misconduct complaints against judges last year"

Associated Press

Last updated: 5:22 p.m., Wednesday, May 14, 2008

ALBANY -- The State Commission on Judicial Conduct says it received a record 1,711 complaints last year against some of the state's 3,500 judges and justices.

Most complaints were dismissed after preliminary review.

In its annual report released Wednesday, the state agency responsible for investigating judicial misconduct says in 2007 it conducted 413 preliminary inquiries, authorized 192 new investigations and carried forward 275 pending cases.

Its 27 public decisions resulted in five judges removed, 10 censured, nine publicly admonished, and three public stipulations where judges agreed to leave the bench and not to seek office again.

Another nine judges resigned in 2007 while under investigation.

--------

On the Net:

http://www.scjc.state.ny.us

WITHOUT EVER-INCREASING "WELFARE" FROM THE "STATE", LIFE IN NEW YORK STATE WILL NOT BE ABLE TO CONTINUE ...

AND THE ECONOMY WILL BE HURT ...

WHICH IS A REAL JOKE WHEN YOU THINK ON IT ...

THE ONLY ECONOMY THAT WE REALLY HAVE ANYMORE IS AN ARTIFICIAL ONE CREATED BY THE "STATE" TAKING MONEY FROM THE MANY AND GIVING IT TO THE FEW .....

WE ARE BECOMING NO DIFFERENT FROM THE SOVIET UNION BACK IN THE 1950's ...

THE "STATE-RUN ECONOMY" ....

AND WHERE IS THE SOVIET UNION TODAY, PRAY TELL?

OH!

YES, THAT'S RIGHT ...

THERE ISN'T ONE ANY LONGER ...

IT COLLAPSED OF ITS OWN WEIGHT ...

JUST LIKE THE CORRUPT EMPIRE OF NEW YORK IS DOING TODAY ...

AS OLDER PEOPLE UP HERE LIKE MYSELF TELL YOUNGER PEOPLE TO GET OUT OF THIS CORRUPT ****HOLE, AND GO SOME OTHER PLACE TO START THEIR LIVES WHERE THE OPPRESSIVE "STATE" WON'T ALWAYS BE IN YOUR POCKET, TAKING FROM YOU TO GIVE TO THE CONNECTED SPECIAL INTERESTS WHO CONTROL THIS STATE UP HERE FOR THEIR BENEFIT, AND THEIRS ALONE ...

And so ...

"Critics say IDA impasse harmful - Nonprofit, business groups say delay in making changes is drag on state's economy"

By CHRIS CHURCHILL, Business writer, Albany, New York Times Union

First published: Wednesday, May 14, 2008

ALBANY -- A coalition of nonprofit and business groups on Tuesday said the ongoing impasse over revamping industrial development agencies is hurting the state's economy.

The groups urged the quick passage of a measure that would again allow IDAs to issue tax-exempt bonds on behalf of nonprofit groups and others seeking to build so-called civic facilities.

IDAs have been unable to do so since the end of January, when a legislative stalemate over the future of the agencies led to the expiration of a provision allowing them to assist the civic groups, as they have long done.

The groups say the stalemate is delaying construction projects statewide, causing a drag on the economy.

"We ought to be creating opportunities for development, not putting barriers in place," Carl Young, president of the New York Association of Homes and Services for the Aging, said Tuesday.

Young spoke at a Capitol news conference designed to pressure lawmakers into action.

The hundreds of IDAs statewide are essentially two-headed beasts.

They give tax breaks to private developers as a way to increase the state's employment base.

They also provide tax-exempt bonds for nonprofits like hospitals, nursing homes and colleges.

The tax breaks to private developers are controversial, with critics claiming IDAs give to undeserving projects and are free from oversight; almost no one argues the help for nonprofits should end.

But as debate swirls over how best to change the way IDAs help private developers, the state's nonprofits are caught in the middle.

They could go to private lenders for construction money, but they would lose the tax exemption and add significantly to the cost of their projects.

Albany Medical Center is among the nonprofit entities affected by the impasse.

The hospital, which did not participate in Tuesday's news conference, expected to use IDAs this year to fund nearly $12 million in renovation projects.

"If we have to go to alternative sources, it will end up costing us more money," said Greg McGarry, a spokesman for the hospital.

McGarry said Albany Med will not delay the projects, however, and he was unsure how much more the hospital would have to pay.

The last legislative action on IDA overhaul was in January, when the Assembly passed a bill that would impose sweeping changes to the way the agencies operate.

The bill would require more financial disclosure and require builders who receive help to pay workers a so-called prevailing or union-scale wage.

Assemblyman Sam Hoyt, D-Buffalo, sponsored the legislation, which he said aims to "shine light on their activities" and make them "more successful, more accountable and more careful with the taxpayers' money."

Business groups, and many Senate Republicans, object to the bill, saying it will increase construction costs for IDA-sponsored projects.

They say it would offset any benefits IDAs could offer.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

"Appraiser: Cuomo plan for code is too costly - Effort to end inflated values for home loans also draws criticism from bankers, mortgage lenders"

By CHRIS CHURCHILL, Business writer, Albany, New York Times Union

First published: Wednesday, May 14, 2008

ALBANY -- New York Attorney General Andrew Cuomo is rocking the home appraisal industry -- and not just in his home state.

Cuomo has successfully pushed a "home valuation code of conduct" that will apply nationally and could affect the price paid for real estate.

Independent appraisers say it will affect them, too.

"This is the straw that broke the camel's back," said Bob La Belle, owner of La Belle Appraisal Group in Clifton Park.

"It's not economically feasible for me to stay in business anymore."

Appraisers generally are asked to determine a home's value after a buyer and seller have agreed on a purchase price.

The appraiser's determination influences the size of the mortgage a lender is willing to offer.

Cuomo says fraudulent collusion between mortgage brokers and appraisers often brings inflated home value estimates, leading to both the housing bubble of the last decade and the ongoing foreclosure crisis.

Cuomo last September issued subpoenas to Freddie Mac and Fannie Mae, suggesting he was considering legal action.

Settling the investigation, the mortgage giants in March agreed to the code of conduct for all the loans they back -- and that applies not just in New York but nationally.

The code, scheduled to go into effect Jan. 1, forbids mortgage brokers from selecting or paying appraisers; prevents lenders from using appraisers they employ; and prohibits lenders from using appraisal management companies they own or control, among other steps.

Also under the agreement, Fannie Mae and Freddie Mac agreed to pay $24 million to create an "Independent Valuation Protection Institute" that will implement and monitor the code.

Cuomo trumpets the agreement as a triumph for consumers.

Reaction from the banking and mortgage industries has been strongly negative.

And earlier this month, the federal Office of Thrift Supervision said the process leading to the agreement was "flawed" because it did not allow for input from lenders or federal regulators.

Groups like the American Bankers Association and the Mortgage Bankers Association have even accused Cuomo of a power grab that allows New York "to unlawfully exercise authority that resides exclusively in the federal government."

Cuomo, though, said reaction to the code has been overwhelmingly positive, and says the reaction from industry was predictable.

"The agreements with Fannie Mae and Freddie Mac ... are groundbreaking and require real structural change in the industry," Cuomo said in a statement.

"So it is not surprising that current industry participants, many of whom have significant economic interests of their own at stake, have differing perspectives."

Some in the industry fear prohibiting mortgage brokers from hiring appraisers will lead lenders to route all appraisals through large management firms, to the detriment of smaller businesses like the one owned by La Belle.

"It's the end of the small independent appraiser," said La Belle, who has been in business since 1979 and says he receives about $300 per appraisal.

Cuomo's measure applies only to loans funded by Freddie Mac and Fannie Mae.

But together, they now account for about 80 percent of new mortgages, according to an Associated Press report, and the impact of the agreement is significant.

"That's the bulk of my business, and appraisal work in general," La Belle said.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

"Ex-chief unlikely to face charges, experts say - Gregory Kaczmarek's knowledge of a drug operation that allegedly involves his wife would not be enough"

By PAUL NELSON, Staff writer, Albany, New York Times Union

First published: Wednesday, May 14, 2008

SCHENECTADY -- A law professor and local attorneys agree it's unlikely former Schenectady police chief Gregory T. Kaczmarek will face criminal charges related to a 13-month probe into a drug enterprise that has ensnared two of his family members.

Albany Law School Professor Daniel Moriarty said just having knowledge about the alleged Schenectady-based narcotics operation is not enough to accuse the former chief, who has had to deal with rumors of drug use in the past.

Kaczmarek's wife, Lisa, 48, and stepson, Miles Smith, 20, were among 24 people indicted last week following a 13-month state attorney general investigation into a drug operation that allegedly funneled large quantities of crack cocaine and heroin from Long Island to Schenectady for distribution.

The Schenectady County grand jury indictment outlines elaborate plans to peddle drugs out of four apartments in Schenectady and one in Coram in Suffolk County, Long Island.

Stash houses where the drugs, guns and drug proceeds would be stored also are described in the court document.

And while wiretapped phone conversations indicate Gregory Kaczmarek was present during talks his wife allegedly had with accused ringleader Kerry "Slim" Kirkem, 40, that alone doesn't make him an accomplice to a crime, according to the law professor.

"To be an accomplice, you have to intend to aid, intend to participate," Moriarty said.

"Knowledge is not sufficient, purpose is sufficient."

Lawyers speaking about the investigation agreed with Moriarty's assessment, noting it would be an uphill legal battle even if Lisa Kaczmarek opted to testify against her husband.

In that scenario, Gregory Kaczmarek could argue he never made comments that his wife attributes to him -- about flashing his police badge to assist with the drug running -- since his voice is only captured in the background on a wiretapped phone conversation.

His attorney also could contend that any remarks he may have made are not admissible in court because he was having a privileged conversation with his spouse.

The Kaczmareks are being represented by Kevin Luibrand.

"I think if they had evidence they would have charged him," Luibrand said.

"There was enough to require that he protect his interest."

And prosecutors would need to corroborate any testimony Lisa Kaczmarek might give.

"Her testimony would have to be corroborated by somebody else's," Moriarty said.

This is not the first time the Kaczmareks have been mentioned in connection with drugs.

When then-Schenectady Mayor Albert P. Jurczynski was considering Gregory Kaczmarek for chief in 1996, Kaczmarek held a remarkable news conference to challenge rumors.

"I'm not a drug user or abuser and never have been one," he said at the time.

He retired in 2002.

Three years ago, Lisa Kaczmarek was arrested after allegedly being caught with marijuana when she went through a security checkpoint at Schenectady City Court.

That case was later adjourned and sealed.

Moriarty said considering potential charges against Gregory Kaczmarek would be a different story if he were still active in law enforcement and had allegedly flashed his police badge.

"If he was still a police officer, then he would have certain legal duties," he said.

But without the active status, "You may have certain moral and social obligations, but no legal obligations."

Meanwhile, two of the 24 defendants named in the indictment remained at large Tuesday, according to authorities.

Paul Nelson can be reached at 454-5347 or by e-mail at pnelson@timesunion.com.

"NY prosecutor who targeted public corruption wins big with Spitzer prostitution investigation"

By LARRY NEUMEISTER, Associated Press

Last updated: 6:33 a.m., Thursday, May 15, 2008

NEW YORK -- Michael Garcia's predecessors as U.S. attorney in Manhattan took on all five mob families, the titans of Wall Street, Osama bin Laden and even Martha Stewart.

So it was largely unnoticed when Garcia wanted to attack public corruption.

Then his public corruption unit investigated a prostitution ring that took down former New York Gov. Eliot Spitzer.

In an interview last week, the U.S. attorney for the Southern District of New York declined to comment on the investigation.

That's not surprising since his office must decide whether to bring criminal charges against Spitzer, identified in court papers only as Client No. 9.

A woman accused of booking clients for the high-priced call girl ring, Temeka Rachelle Lewis, pleaded guilty Wednesday to promoting prostitution and money laundering.

She could face around 16 months in prison, or less, depending on how much she cooperates with prosecutors, when she is sentenced in August, her lawyer said.

Three others accused of being part of the ring still face charges, and their lawyers are negotiating with the U.S. attorney's office.

The escort service prosecution that ensnared Spitzer is the highest profile in a string of successes this year for one of the nation's busiest and largest federal prosecutors offices, which has more than 220 assistant U.S. attorneys.

The day after the charges were announced, former Democratic Assemblyman Brian McLaughlin pleaded guilty to a decade of crimes, admitting he took thousands of dollars in kickbacks and forced members of a labor union he led to hang his Christmas lights.

In a span of several weeks, Garcia's office announced a guilty plea by former Refco Inc. chief executive Phillip R. Bennett, the arrest of an alleged Israeli spy in a 20-year-old case, and a slew of extraditions and convictions of international drug traffickers.

The public corruption unit has fewer than 10 prosecutors and is one of the smaller teams in the office.

Garcia said he knew he wanted to beef up the unit even before he was named chief of the office.

He had worked in the office in the 1990s on major terrorism cases, including the trial of four men convicted and sentenced to life in the 1993 World Trade Center bombing.

"It wasn't something I thought we had focused on or had a lot of resources on," Garcia said.

Later, he worked for several months as acting commissioner of the U.S. Immigration and Naturalization Service, and from 2003 to 2005, as assistant secretary for Immigration and Customs Enforcement.

Garcia said politics plays no role in his decisions about criminal cases.

But his investigations certainly affect politics.

Last year, former New York City police commissioner Bernard B. Kerik was charged with conspiracy, tax evasion and making false statements just as Rudy Giuliani, his friend and political patron, was in the middle of a fiercely competitive Republican presidential primary.

Giuliani, the former mayor who had held Garcia's job in the 1980s, dropped out of the race in January, his law-and-order reputation tarnished in part by his association with his former police commissioner.

Giuliani had urged President Bush to pick Kerik as his Homeland Security secretary in 2004, a nomination that foundered after revelations that Kerik had not paid all taxes for a nanny-housekeeper who may have been in the country illegally.

The resignation of Spitzer, a Democrat, was a high-water mark for an office that had suffered setbacks when Garcia first took over in August 2005.

Several major cases brought by Garcia's predecessors had imploded.

Floor specialists at the New York Stock Exchange were acquitted, a racketeering case against John A. "Junior" Gotti was abandoned after a third jury deadlocked, and obstruction of justice charges were dropped against technology banker Frank Quattrone.

Garcia blamed the setbacks on what happens when "the stars line up badly in a bunch of cases."

He is reluctant to gloat after this year's triumphs.

"After saying things are cyclical here, it's hard to turn around and say, 'No, it's all about leadership,'" he said.

"NY AG to investigate new forms of pension fraud in schools - NY AG to investigate potential pension fraud by school districts and superintendents"

Associated Press

Last updated: 3:12 p.m., Thursday, May 15, 2008

ALBANY -- New York Attorney General Andrew Cuomo says he's expanding his statewide investigation into pension fraud to include school superintendents he suspects are inappropriately getting pension benefits while collecting paychecks.

He says it's easy for school districts to abuse a waiver that allows retired superintendents to return to work while still getting a pension.

It allows them to simultaneously receive paychecks and accrue a bigger pension.

The superintendents are only allowed to be rehired if a district can find no one else competent to fill the position.

With school costs driving up New York property taxes, Cuomo says education waste, fraud and theft are major concerns across the state.

IF THESE PEOPLE ARE IN TROUBLE ....

WHY CAN'T THEY TALK TO THEIR LENDERS THEN?

THIS DEMOCRAT MORATORIUM IS NOTHING BUT SOME ELECTION YEAR HOO-HAH ....

And so ...

"Foreclosure bill stalls in Senate - Legislation passed by Assembly has shallow Republican support"

By CHRIS CHURCHILL, Business writer, Albany, New York Times Union

First published: Thursday, May 15, 2008

ALBANY -- New York's proposed foreclosure freeze is getting a cold reception in the state Senate, to the chagrin of some Democrats.

The bill -- a response to rising foreclosure rates statewide -- sailed through the Assembly last week, but seems to have shallow support among Republican leaders in the Senate, where it may not go to a vote.

Frustrated Senate Democrats on Wednesday held a news conference to demand that Senate Majority Leader Joseph L. Bruno allow a vote on the measure.

They called the freeze a step that could keep thousands of New Yorkers in their homes by allowing them time to talk to housing experts and negotiate with lenders.

"A moratorium gives the chance for the counseling process to take place," said Sen. Neil Breslin, D-Bethlehem.

The banking industry strongly objects to the freeze, in part because the foreclosure process in New York already includes consumer protections and, at an average of 445 days, is the nation's longest.

An additional one-year moratorium would extend the foreclosure process to over two years, said Michael Smith, president and CEO of the New York Bankers Association.

And that could bring consequences -- including a tightening of borrowing requirements even for New Yorkers with strong credit.

"A moratorium would not solve the problem today and would seriously hurt the credit market for the future," Smith said.

Kieran Quinn, chairman of the national Mortgage Bankers Association, agreed, warning that the moratorium might cause some lenders to avoid New York.

Gov. David Paterson supports foreclosure legislation that does not include a moratorium.

Instead, it strengthens the state's anti-predatory-lending law, establishes a "reasonable ability to repay" standard for loans, and requires the registration of mortgage loan servicers, among other steps.

A spokesman for Bruno would say only that the senator will focus on Paterson's bill as the way to address foreclosure and mortgage problems -- suggesting dim prospects for the foreclosure moratorium.

Senate Democrats pushing for the moratorium also said they support Paterson's legislation, but said it is designed only to prevent future problems and would do little to help homeowners who already are in trouble.

They said the need for the moratorium is urgent, because thousands of adjustable-rate mortgages are scheduled to reset this year, demanding higher payments from homeowners.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

"A rocky start for veterans project - Vietnam returnees say part of 'early intervention' message demeaning"

By DENNIS YUSKO, Staff writer, Albany, New York Times Union

First published: Thursday, May 15, 2008

BALLSTON SPA -- A Saratoga County project that would anticipate legal difficulties of troubled returning military members started badly after some veterans questioned its function and called part of its message demeaning.

Other veterans, however, call the "early intervention" effort by the county public defender's office important and useful.

The tangle started earlier this month when county Assistant Public Defender Van Zwisohn sent a letter to area service providers, veterans groups and attorneys, saying the public defender's office and the county district attorney's office were seeking stories of troubled Iraq and Afghanistan vets who are at risk for committing violence or crime, or suffering other problems.

The goal is to gauge the need for a program that would assist returning service members before they break the law, Zwisohn wrote in a May 1 memo.

It cited the experience of Vietnam veterans.

"Many will remember the distrust and fear that greeted many returning veterans from Vietnam when they got into legal trouble."

"The 'crazed Vietnam vet' was a caricature of young men who came back from combat with drug problems, emotional problems and adjustment problems" that made them more likely than civilians to land in court and jail, Zwisohn wrote in the opening paragraph.

Some veterans found the language insulting.

"I thought this was a slap in the face," said Bob Becker of Schenectady, a Vietnam-era Marine.

"It just makes Vietnam vets and the veterans of today look bad, saying they are crazy."

Colonie attorney Mathew Tully, who served with the New York Army National Guard at ground zero and was disabled in Iraq, urged the public defender's office to recant the letter and apologize.

He also criticized the plan's intent.

"It appears they are playing favorites with criminal law with veterans and that's a very slippery slope," said Tully.

Zwisohn could not be reached for comment.

After hearing Tully's complaints, Saratoga County Public Defender John Ciulla Jr. contacted veterans, and discovered some Vietnam vets found the letter's first paragraph offensive.

Ciulla issued an apology in a follow-up letter.

But he and Saratoga County District Attorney James A. Murphy III defended what they say are pro-active steps.

Ciulla said he hoped criticism would not derail the prospective project, part of a statewide initiative of the New York State Defenders Association called "The Military and Veterans Defense Project."

Murphy said he would not treat vets differently:

"My position is, like any criminal case, we'll evaluate all the factors which may mitigate the conduct."

John Rowan, president of the Vietnam Veterans of America New York Chapter, replied to Tully's concerns in an open e-mail.

Rowan said other cities, including Syracuse and Buffalo, have recently established "court diversion" programs for veterans so they can receive assistance.

"I find this an enlightened and far-reaching response to a serious problem," Rowan wrote.

"Unfortunately, that did not happen during the Vietnam era, and many of my comrades were incarcerated."

Dennis Yusko can be reached at 454-5353 or by e-mail at dyusko@timesunion.com.

"Water Authority to appraise lands"

By JORDAN CARLEO-EVANGELIST, Staff writer, Albany, New York Times Union

Last updated: 12:16 p.m., Friday, May 16, 2008

BALLSTON SPA -- A state Supreme Court justice this morning gave the Saratoga County Water Authority two months to appraise some 20 parcels it hopes to condemn through eminent domain in order to complete its controversial $67 million water pipeline.

An attorney for the authority, Mark Schachner, told Justice Thomas Nolan that the authority has hired Latham appraisers Alvey & DiMura to value the lands on which the county hopes to lay pipe for its 26-mile pipeline from Moreau to Malta.

Schachner told the court that process could be complete within 60 days.

The county is seeking to buy easements on the lands to bury the pipe and access it in the future, but Schachner stressed that the landowners would still own the properties and have access to them, with some limitations on future uses.

"It's still their land," he said after the brief proceeding.

Nonetheless, several landowners who would be affected have raised concerns about the process, including 83-year-old Mary Zetterstrom, whose Saratoga Springs farm fields the waterline would cross.

While Zetterstrom is not outright opposed to the project, she, her family and friends worry that a berm created by burying the pipe will turn what remains of her hay and cattle farms into a swampy mess -- a lesson learned after she said a 1970s sewer project had the same effect to 11 of her acres.

They want assurances that measures would be taken to prevent that -- assurances they said were made in the 1970s with the sewer project but never kept.

Among other things, the Zetterstroms have asked the county to move the path of the new pipe closer to the old one, which they say would minimize the impact on the remaining land.

"They've cut it in half," Mary Zetterstrom said of her property, "and flooded the rest.''

Debby Zetterstrom, Mary's daughter, said their protest is not about money but the promise to preserve her mother's home and livelihood.

"If they don't protect the land, it's all for naught," she said.

Greenfield resident Will Orthwein raised questions with how the water authority has conducted itself with landowners, saying he received a letter late Thursday that led him to believe this morning's hearing had been postponed and that he arrived in court only to find out for the first time that the water authority no longer seeks to permanently condemn his land.

Nolan said what Orthwein had received was a copy of the water authority's request for a postponement, a request he said he denied in part because of the short notice.

Schachner said no legal papers have been filed formally opposing the water authority's pursuit of the lands through eminent domain.

How many people actually oppose it, if any, may not be known until after the appraisals are complete and formal compensation offers are made, he said.

With that in mind, Nolan urged the water authority to move "more quickly than not.''

"Then," the judge said, "we can figure out which cases really need to go through the litigation."

He added later: "I want to keep on top of the case to make sure those offers are made promptly."

Nolan scheduled all parties to return to court July 21 at 9 a.m.

"Albany lawyer sues over pension probe - Roemer wants investiagtion stopped, lists memos, advisories to back up arguments"

By RICK KARLIN, Capitol bureau, Albany, New York Times Union

Last updated: 8:59 p.m., Thursday, May 15, 2008

ALBANY - A veteran municipal lawyer filed suit in state court today, hoping to derail investigations into use of the state pension system by lawyers and to reverse decisions made against some of them.

State Comptroller Thomas DiNapoli and Attorney General Andrew Cuomo have been investigating lawyers statewide who they say may be improperly enrolled in the pension system because they were independent contractors, not employees.

Almost a dozen people have lost pension credits or had them suspended.

Albany lawyer James Roemer's legal complaint alleges that Cuomo has launched a "politically motivated gambit" and that DiNapoli has embarked on an "illegal and unconstitutional course of action."

In his filing in state Supreme Court in Albany County, Roemer refers to previous decisions and memos from past comptrollers about pensions or other benefits.

Roemer cites a 1940 state constitutional amendment that says that pension benefits "shall not be diminished or impaired," and his exhibits include past memos, newsletters and advisories.

Some of his arguments:

The state retirement system, not the beneficiary, "determines the eligibility," of people getting pension credits.

Rather than needing several "indicia," or conditions of employment, to prove that someone is an employee not a contractor, people need to meet only one such condition.

These "indicia" can include having a work space, being under the supervision of someone else or keeping regular hours.

The work hours for some jobs such as labor attorneys are regular but, as suggested in a 1997 comptroller's memo, that shouldn't exclude such people from retirement credits.

Independent contractors are hired for "a one-time specific job," according to a 1994 state retirement system newsletter.

That shows that school lawyers could be considered employees, Roemer said.

He also cited a story in Newsday, a Long Island newspaper, about how DiNapoli, when he was chairman of the Mineola Board of Education in the 1970s, voted to hire an outside lawyer as an employee.

The lawyer, who has since died, received retirement benefits.

While he has until recently focused on schools and BOCES organizations, Cuomo says lawyers at any of the state's thousands of government entities, including villages and sewer districts, could be wrongfully enrolled in the pension system.

Roemer draws a state pension himself and he was profiled in a 1997 Times Union story detailing how was able to use retirement systems rules to qualify for benefits.

At the time, former Comptroller Carl McCall was quoted saying the benefits appeared to be legal.

In today's suit, Roemer is representing three downstate lawyers and one from Binghamton.

All are fighting to keep or restore pensions the state is trying to take from them.

Roemer said thousands of lawyers could potentially find themselves in similar straits, so the suit is filed as a class action.

Both Cuomo and DiNapoli didn't have detailed rebuttals, but held firm in their contention that lawyers who are truly independent contractors don't deserve state pension benefits.

Cuomo spokesman John Milgrim said the AG is "quite confident that our investigation is not only legally well-founded but in the public interest."

Cuomo has maintained that just because a practice has gone on for years doesn't make it right.

DiNapoli stressed that each case is being looked at individually and decisions have been justified.

Also today, Cuomo said he was planning hearings about pension fraud with the Legislature next week and he is expanding his probe into the practice of "double dipping," in which school superintendents retire, collect a pension and then are rehired somewhere else.

Specifically, Cuomo wants to explore if the waivers that allow that practice have been abused.

"Analysis: Union-paid analyst judges labor bill's fiscal hit - Now union power in NY includes determining the cost of pro-labor bill"

By MICHAEL GORMLEY, Associated Press

Last updated: 5:22 p.m., Friday, May 16, 2008

ALBANY -- The Assembly has stopped using an actuary who provided fiscal analysis for pro-labor legislation while being paid by labor unions.

The decision came after the New York Times reported that the actuary, whose analysis was used in bills, was shown to be paid by unions seeking the legislation.

Assembly majority spokesman Dan Weiller said the actuary, Jonathan Schwartz, will no longer be used and all the pending bills for which he provided fiscal analysis will be analyzed again to determine the public cost of the measures.

Friday's disclosure that the union-paid expert wrote the required fiscal analysis on a pro-labor bill is one of the most brazen examples of how close special interests can get to lawmakers in Albany.

The New York Times reported that the analysis showing the bill wouldn't cost taxpayers a dime was the work of a union-hired actuary.

And even he questioned his work.

Schwartz later called it a step above voodoo and said he probably got carried away when his analysis showed no cost for the bill.

His analysis has been used on several New York City pension bills in recent years.

"We assume he comes up with a real number," Assemblyman Peter Abbate, a Brooklyn Democrat who sponsored the pension bill, told the newspaper.

"He was hired by them."

Mayor Michael Bloomberg, who opposes the bill, had said it would cost the city $200 million.

The bill would give public employee unions another chance to buy into a lucrative early retirement offer.

Abbate didn't return a call requesting comment Friday.

"It is indefensible that the Legislature would hire a consultant with so obvious a conflict," said Blair Horner of the New York Public Interest Research Group.

"It shows how Albany lawmakers just don't get it."

Some of the most memorable instances of cozy relationships with special interests had higher stakes.

In 2002, Service Employees International Union Local 1199 President Dennis Rivera joined Albany's notorious three men in a room -- the governor and Assembly and Senate leaders -- to work out a $1 billion health care reform plan that funded raises for Rivera's union members.

In exchange, Rivera, who is also a top state Hispanic leader, helped the leaders score or keep crucial political support.

But many of the costly programs in that 2002 bill continue to cost taxpayers millions today.

And in 2003, hip-hop mogul Russell Simmons joined the same three men in a room to negotiate legislation that would reduce mandatory sentences under the state's Rockefeller-era drug laws.

Reforms have flowed since then that have provided earlier releases for many nonviolent drug dealers and users.

Whether the currency is millions of dollars in campaign funds or influence with the right crowds and voters, unions representing public workers and teachers have long had their way with Albany, running up tabs of billions of dollars a year along the way.

"They have developed this huge blind spot when it comes to conflicts of interest and this is just another example of it," Horner said.

"It's just mind blowing."

Weiller said he couldn't determine how often a fiscal analysis is done by someone paid by the special interest that would benefit from the bill.

But he said that doesn't matter because the Assembly Ways and Means Committee does it's own thorough fiscal analysis of bills.

The Senate's Republican majority scoffed at the policy of the other chamber, and said it requires several fiscal analyses of the numbers, including one by the Senate Finance committee.

"From our standpoint, we don't rely on any one fiscal note or actuary's estimate, particularly if comes from an interested party," said John McArdle, spokesman for Senate Majority Leader Joseph Bruno.

Yet, despite the flaw in the bill and the apparent conflict of interest in its fiscal premise, the Assembly and Senate majorities aren't saying they have any problem now with the pension measure.

Both houses are reviewing it, spokesmen said.

------

Michael Gormley is the Albany, N.Y., Capitol editor for The Associated Press. He can be reached by e-mail at mgormley(at)ap.org.

"Auditors find Medicaid inappropriately paid $3 million - Medicaid payments made for newborns whose mothers were enrolled in managed care plans"

Associated Press

Last updated: 1:12 p.m., Friday, May 16, 2008

ALBANY -- State auditors say about $3 million in Medicaid payments were inappropriately made over two years, mostly for newborns whose bills should have been handled instead by their family's managed care plans.

State Comptroller Thomas DiNapoli says the state Health Department failed to promptly update enrollment information.

Auditors reviewed Medicaid claims for people in three managed care plans for two years ending Sept. 30, 2007.

They found 3,750 recipients whose managed care enrollment information was not properly updated in the eligibility files used to process Medicaid claims.

Some 98 percent were newborns with mothers enrolled in a managed care plan but hospitals billed Medicaid.

Auditors recommended the Health Department recover the money, noting it has already taken steps.

--------

On the Net:

http://www.osc.state.ny.us/audits/allaudit...3008/07s100.pdf

"Ex-head of NY governor's security detail in apparent suicide"

By MICHAEL GORMLEY, Associated Press

Last updated: 10:42 p.m., Thursday, May 15, 2008

ALBANY -- A former head of the governor's state police protection unit apparently committed suicide at his home, a state official confirmed.

Retired state police Inspector Gary Berwick, who protected former Gov. George Pataki and his family, was found dead at his home Thursday, according to a current state official and a former Pataki official.

They spoke on the condition of anonymity because of the sensitivity of the case and because the death hadn't officially been announced.

"He was a wonderful man," Pataki told The Associated Press.

"My family is just devastated."

"He was an ultimate professional who put his life on the line to protect us."

"This is a person of tremendous integrity, tremendous professionalism."

Berwick had worked to protect Pataki and his family for 12 years in their home and on the job.

There was no indication Thursday that Berwick was part of New York Attorney General Andrew Cuomo's probe into claims that a rogue unit of state troopers tailed and investigated lawmakers.

Retired for several months, Berwick left a wife and three daughters.

He was remembered by Pataki aides as a by-the-book trooper.

Cuomo is investigating accusations by 10 or more lawmakers about state police security details under Pataki and former Gov. Eliot Spitzer.

That investigation includes Daniel Wiese, the former head of Pataki's security detail and a close security adviser to Spitzer.

Berwick, as a major, succeeded Wiese and ran Pataki's detail, but he retired at about the time Acting Superintendent Preston Felton resigned.

Felton had been appointed by Spitzer, and was criticized in investigative reports for his role in compiling records of Senate Republican leader Joseph Bruno's use of state aircraft on days he attended GOP fundraisers.

Cuomo also is investigating the role of Spitzer's detail when the Democrat was alleged to have met with a high-priced prostitute in Washington, D.C., earlier this year.

The allegations led to his resignation March 17.

A Cuomo spokesman had no immediate comment.

In his first public comments on the Cuomo probe, Pataki rejected claims that state police did political work for governors.

"You spend 12 years with people on your detail, and I can tell you this, they are wonderful human beings," said the three-term Republican, who left office in 2006.

He then countered the claims the unnamed lawmakers made to current Democratic Gov. David Paterson, prompting the Cuomo probe.

"They did not have a rogue unit, they did not do political intelligence, they did not keep political files or spy on political figures," Pataki said.

"I can't say anything about what happened on Jan. 1, 2007, but I can tell you I am just very proud of the work they did."

"You just can't help but say a prayer for him and his family," Pataki said of Berwick.

State police were shocked at word of Berwick's death, said state Troopers Police Benevolent Association President Dan De Federicis.

"This was certainly devastating news to the state police family," he said.

"Gary was universally considered by all troopers a great man, a great person, a great state trooper, and we're just heartbroken."

"Analysis: Paterson says he'll square off with unions - David, the governor, faces twin Goliaths of public labor and the Legislature"

By MICHAEL GORMLEY, Associated Press

Last updated: 2:22 p.m., Saturday, May 17, 2008

ALBANY -- New York Gov. David Paterson is taking on the fight of his political life.

He's promising to stand up to public worker unions in Albany, where their hundreds of thousands of votes and millions of dollars donated to campaigns and spent on lobbyists have given them unmatched power.

The question now is not just whether Paterson is up to the challenge, but whether it's too late.

"It can't be business as usual," Paterson said Thursday in casting doubt on unions' effort to boost benefits through the Legislature.

"This is not the time to sweeten the pot because we're about to lose the whole pot."

It was a reference to what Paterson calls "the terrible truth" of New York's fiscal health.

That includes locked-in benefits and other spending in state budgets over the last several years that prompt his projection of $21 billion in budget gaps over the next three years.

Even in a cynical place like Albany, where governors for years have made other dire predictions only to embrace bloated budgets as good compromises, Paterson is raising expectations.

On Thursday, Paterson appeared to side with fiscally tight New York City Mayor Michael Bloomberg who is opposing a union lobbying effort to provide a second chance for employees to buy into a lucrative early retirement plan.

Bloomberg says it would cost the city $200 million, an estimate disputed by lawmakers and union leaders.

Now, Paterson is facing his own tests.

The Democrat is starting to see the annual string of pro-labor measures to improve pension and other benefits for unionized public workers and retirees.

Those efforts have passed with overwhelming or unanimous support in the Legislature, only to be vetoed by former governors George Pataki and Eliot Spitzer.

But Paterson, in office just three months after 20 years in the Senate's Democratic minority where he benefited from the bales of campaign contributions spread about by unions, lacks the public mandate of those who were elected to the office.

And he lacks Bloomberg's billions that would help him fight off the kind of nasty union TV ad campaign that hurt Spitzer early in his brief time in office.

Paterson, who rose from lieutenant governor when Spitzer resigned March 17 over a prostitution investigation, has also sought to rebuild bridges between the executive and legislative branches.

That, however, can be seen as a sign of weakness in the Capitol's brand of power politics.

So far, his record is mixed.

Despite forecasting a falling sky in March, he eventually supported an even greater increase in the record amount of school aid.

He also allowed the teachers' unions to attach a measure that will make it easier to get tenure, although in a slightly weakened form.

The measure prohibits school districts from using student performance on standardized tests as a measure of whether a teacher should get tenure, which provides almost lifelong job security.

But more recently, Paterson angered the United University Professions union, part of the powerful New York State United Teachers union, by giving the State University of New York about $140 million less of an increase than was sought.

University workers rallied outside the Capitol chanting, "Hey, hey, ho, ho, SUNY cuts have got to go."

They said the cut put SUNY on the road to being "dismantled."

But as with most lobbyists and activists in Albany, the demonstrators had a better sense of outrage than math.

Paterson didn't "cut" SUNY funding, which will still increase by $20 million to $4.53 billion.

That doesn't include the $3.75 billion more in capital funding and another $6 billion in capital cash committed for coming years.

And Paterson plans more as he commits to fulfilling Spitzer's promise to bring SUNY to the national fore in higher education.

The "cut" to which the unions referred was the 3.5 percent spending reduction Paterson is requiring of all agencies as revenues decline.

He said the 2009-10 budget must result in a true cut of 5 percent to 10 percent.

Paterson has another test headed his way.

The Legislature will soon send to his desk a bill that would prohibit state and local governments from trying to change generous health benefits provided to retirees.

That would take the costly item off the table in collective bargaining for at least a year while a panel considers the future of health care for retirees.

That panel, created by the Legislature, is heavily represented by labor, whose members could eventually collect the benefit.

There are no seats on the panel for representatives of local government.

So the accidental governor's trial by fire will get hotter in June, because these measures are often slipped into the final, late hours of the legislative session when few are watching.

Paterson so far hasn't let up on legislators, who would rather not be known as the people who have been raising your taxes, in one form or another, for years.

That's the cycle Paterson said he must end, this "trying to cut the same the same piece out of the pie."

"They don't understand," he said, "that there is no pie."

------

Michael Gormley is the Albany, N.Y., Capitol editor for The Associated Press. He can be reached by e-mail at mgormley(at)ap.org.

PUBLIC SERVICE IN THE CORRUPT EMPIRE OF NEW YORK SHOULD BE ABOUT MAKING SCADS OF MONEY OFF OF THE STATE'S TAXPAYERS, WHO ARE NOTHING MORE THAN A BUNCH OF SUCKERS, SCHLUBS AND CHUMPS TO BE EXPLOITED BY THOSE IN "PUBLIC SERVICE" IN NYS ...

AND SO IT IS ...

SHEEP ARE FOR SHEARING, AFTERALL ...

AND LAMBS ARE FOR THE SLAUGHTER ...

And so ...

"Pension creates 6-figure winners - Almost 900 people, ranging from former Gov. Pataki to state officials convicted of crimes to retired cops, earn more than $100,000 a year from system"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Sunday, May 18, 2008

ALBANY -- George M. Philip is a notable man in many ways, including the fact that his state pension is 16 times that of the public servant's.

Philip tops a list of 899 people making at least $100,000 annually from New York retirement payouts -- a list obtained by the Times Union.

The 60-year-old Burnt Hills resident receives $261,030 annually from the State and Local Retirement System run by Comptroller Thomas DiNapoli.

He also receives another $280,000 a year in salary for his new job in academia.

In November, after ending his career at the separate State Teachers Retirement System, Philip immediately received a waiver to allow him to become interim president of the University at Albany.

Although Philip's compensation is extraordinary, he is not alone in the six-figure club.

Nor is he the only guy double-dipping.

The list of 899 pensioners receiving at least $100,000 from DiNapoli's accounts is top-heavy with former cops from Nassau and Suffolk counties, the Power Authority and the Port Authority of New York and New Jersey.

Many of the police officers retired before their 50th birthday after piling up overtime pay that amplifies the top three earning years that drive a formula used to calculate an employee's final pension.

It also includes people who were dismissed from their jobs for dishonorable behavior, including at least three people who were found guilty of crimes committed in their public posts and another person booted from his job because of improprieties.

For instance, former Comptroller Alan Hevesi, who oversaw the $154 billion pension fund, pleaded guilty to a felony of defrauding the state government.

He's still drawing his pension of $104,123 after about 30 years of public service.

Former Power Authority lawyer Carmine J. Clemente, of Albany, who was fired last year after the attorney general and inspector general found he misused his health care benefits, is No. 25 on the list with a pension of $163,040.

He pleaded guilty to a misdemeanor charge.

Before retiring, he misused more than $21,000 by claiming his ex-wife on his health policy, investigators said.

His brother, Michael Clemente, was fired from his post as general manager of the State University of New York Construction Fund in 2002 after state investigators found he violated contract rules to help a distant relative of Gov. George Pataki's.

After his dismissal, he was hired by Senate Republicans as a budget officer and built more years of credits.

His pension: $111,473.

At least four former heads of Off Track Betting Corp. are on the list, including one who's public career ended in dishonor and a criminal conviction -- Capital District OTB founder Davis Etkin of Schenectady is No. 296, getting $116,217 a year.

Etkin's guilty plea in 2000 to treating himself to OTB assets and attempting to bribe a witness who was to testify against him followed an investigation into his lavish spending and questionable use of $4 million while at the helm of the Schenectady-based betting operation.

Other former OTB heads on the list include Donald Groth, of Catskill OTB, at $115,442; Joseph Mondello, the state GOP leader, from Nassau OTB, at $111,697; and his successor at the post, another Republican politician from the county, Gregory Peterson, at $116,188.

Groth just recently retired at age 65.

He remains as the head of the OTB making $219,000 annually because, he says, he's got a lot of unfinished business to accomplish in Albany, lobbying for changes to betting laws, before exiting.

"I've been very good to OTB, but it was a two-way street," Groth said.

"When you've invested 40 years in something, there should be some return."

No. 241 on the list is Albany attorney James W. Roemer Jr.

The 63-year-old lawyer retired in 2001 with a $119,874 pension.

His package came together from credits for part-time employment with municipalities, including Utica and Schenectady, despite being a private attorney.

Roemer filed a class-action lawsuit last week aimed at blocking Attorney General Andrew Cuomo and DiNapoli from stripping pension credits from lawyers.

At No. 812, George Pataki is the only ex-governor on the list, at $101,200 a year.

Some of his lieutenants and aides, such as former director of operations James Natoli, No. 181 with $124,002, and Maryanne Gridley, No. 107 with $133,054, also made the list.

Pataki beefed up pay for commissioners, directors and himself during his 12-year tenure, helping all to build their pension nests.

No. 546 is John L. Buono, who served as Hudson Valley Community College's $170,000 per-year president until retiring from the post at the end of 2003 at age 60.

HVCC kept him on another year as a consultant.

That made him able to collect a pension at the same time as his post-retirement consulting fee of $170,000.

After three decades of paid public service -- including stints as Rensselaer County executive and head of the state Dormitory Authority -- he remains as the Pataki-appointed chairman of the Thruway Authority and last month voted to increase tolls.

Although the post doesn't include a salary, his pension of $107,315 provides income.

A top former Senate aide, Kenneth Riddett, Senate Majority Leader Joseph L. Bruno's top lawyer for years, was also high on the list, receiving $136,748.

He had a long public career and Bruno bumped his pay up shortly before he retired two years ago to become a lobbyist.

Cuomo said it may be worth considering penalizing criminals who stole from the state with forfeiture of pensions, but said that would require a constitutional amendment.

Stephen Madarasz, a spokesman for the Civil Service Employees Association, said CSEA wouldn't mind seeing criminals stripped of pensions.

He said he believes that change could be made by statute.

Others note that police officers and firefighters are enjoying substantial pensions thanks to the overtime they get and that should be changed.

Keith Brainard, research director of National Association of State Retirement Administrators, said New York's pension formula isn't out of whack.

It offers 2 percent of pay for each year, 1.66 percent for those who don't make it to 20 years.

The average multiplier for public pensions nationwide is 1.85, Brainard said.

"I suspect a large proportion of those officers getting a six-figure pension worked a lot of overtime," he said.

"If the (Legislature) in its infinite wisdom chose to change that, it could."

Assembly Government Employees Committee Chairman Peter Abbate, D-Brooklyn, said he doesn't like taking away benefits.

People enter public service jobs counting on overtime and constitutionally protected pensions as part of their compensation, he said.

Cops in many agencies can retire with full benefits after 20 years.

Some work 80 hours a week for long periods during their last few years to build up pensions, according to employers such as the Port Authority.

"The mayors and county executives complain that pensions cost so much," Abbate said.

"They should direct their chiefs of police or police commissioners not to offer them overtime."

"The Port Authority thinks they're going to save money by not hiring people, so what happens?"

"They force overtime taken by their more senior members."

Nassau County Executive Thomas Suozzi, a Democrat who has tried to cut police expenses, said he isn't happy seeing so many of his former officers on the list of the highest paid pensioners, several in the $150,000-a-year club.

"It's an outrageous abuse," he said.

"It's unconscionable how much they make in salaries in the first place, but then it's the cost of pension payments."

There are 350,000 people receiving retirement checks from the public pension system.

The average benefit is $16,202 for most state workers, $35,877 for police and fire retirees.

At $261,037, Philip, whose pension tops the list, said he worked 38 years to put together his nest egg.

The sum was calculated based on the average of the highest three years of salary times the number of years in the system and the multiplier.

"Not too many of my colleagues worked in public service so many years," he said, adding that he held the jobs of CEO and chief investment officer.

He suggested he was underpaid at $379,600 while overseeing a $105 billion pension fund.

The state Legislature helped him.

In 2000, it sweetened the pensions for public workers by setting up automatic cost-of-living increases, the discontinuation of 3 percent co-pays for any worker with 10 years of service and two extra years of service credit for the older members of the system who never had to contribute to their pensions, such as Philip.

Bottom line, he got 79 percent of his final average salary.

He said he hopes his interim gig at UAlbany ends soon, so he can actually be retired.

But if the school needs him, he said he'll apply for another waiver that allows him to keep working, and collecting a paycheck.

James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.

"Questions awaited retired trooper - Former State Police major who committed suicide was part of probes into executive security detail"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Saturday, May 17, 2008

ALBANY -- The retired State Police major who hanged himself in Orange County Thursday was described by friends and associates as a person who took his job seriously; he also obtained representation by a police-union lawyer recently amid probes of the executive security unit he led.

Gary Berwick, who was in charge of the security detail for former Govs. George Pataki and Eliot Spitzer, was expected to be contacted by the U.S. attorney's office and his former agency in separate inquiries probing what Spitzer's security detail knew about his patronage of prostitutes, according to law enforcement officials.

State Police Superintendent Harry Corbitt pledged to look into the issue when he was confirmed by the state Senate last month, and officials have said the Manhattan-based U.S. attorney for the Southern District, Michael Garcia, is considering charges against Spitzer.

Berwick, 48, was a protege of Daniel Wiese, his predecessor as executive security chief.

Wiese's activities as a State Police official and later as the New York Power Authority's security chief are expected to be looked at by Attorney General Andrew Cuomo's office in a separate investigation triggered by suspicions by Senate Republicans and Democratic Gov. David Paterson of political spying by some officers within the State Police.

Berwick, who is survived by his wife and three daughters, retired this spring at around the same time as Acting State Police Superintendent Preston Felton.

In his first public comments on the Cuomo probe, Pataki rejected claims that State Police did political work for governors.

"You spend 12 years with people on your detail, and I can tell you this -- they are wonderful human beings," Pataki said Thursday.

He then countered the claims ten unnamed lawmakers made to Paterson, prompting the attorney general's probe.

"They did not have a rogue unit, they did not do political intelligence, they did not keep political files or spy on political figures," Pataki said.

"I can't say anything about what happened on Jan. 1, 2007, but I can tell you I am just very proud of the work they did," said Pataki, who left office at the end of 2006.

James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com. The Associated Press contributed to this report.