"Upstate highway chief sentenced Mon. found dead"
Associated Press
Last updated: 1:22 p.m., Tuesday, August 26, 2008
MARILLA, N.Y. -- A former upstate highway superintendent apparently killed himself hours after being sentenced to seven months in prison for stealing town funds and using town employees to build a pond at his home.
Erie County sheriff's deputies say relatives of 55-year-old David Pierce found his body and a note in the bed of his pickup truck near his family's farm outside Buffalo about 1 a.m. Tuesday.
He suffered a gunshot wound to the head.
Pierce had been sentenced to federal prison Monday afternoon.
At his sentencing, he apologized for disgracing the family name and said problems with alcohol, anxiety and greed led to his illegal activities.
Pierce was highway superintendent in rural Marilla for 20 years before resigning amid the FBI's investigation.
------
Information from The Buffalo News: http://www.buffalonews.com
Full Version: THE "PORK" IN NEW YORK
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"NY utility employee takes plea"
Associated Press
Last updated: 1:52 p.m., Tuesday, August 26, 2008
NEW YORK -- A former worker with the New York Power Authority has pleaded guilty to conspiracy charges accusing him of taking $167,000 in kickbacks from a crooked equipment supplier.
Federal prosecutors in Brooklyn say Edward Goldblatt, while a purchasing warehouse assistant at a Queens plant, accepted cash, electronics, travel tickets, cigars and other gifts from the unidentified vendor.
In exchange, Goldblatt allowed the vendor to overcharge the NYPA by bypassing the usual bidding process.
Goldblatt faces up to 20 years in prison, though the term could be much shorter under sentencing guidelines.
Associated Press
Last updated: 1:52 p.m., Tuesday, August 26, 2008
NEW YORK -- A former worker with the New York Power Authority has pleaded guilty to conspiracy charges accusing him of taking $167,000 in kickbacks from a crooked equipment supplier.
Federal prosecutors in Brooklyn say Edward Goldblatt, while a purchasing warehouse assistant at a Queens plant, accepted cash, electronics, travel tickets, cigars and other gifts from the unidentified vendor.
In exchange, Goldblatt allowed the vendor to overcharge the NYPA by bypassing the usual bidding process.
Goldblatt faces up to 20 years in prison, though the term could be much shorter under sentencing guidelines.
"Board members quit, suspend government in NY town"
By MICHAEL GORMLEY, Associated Press
Last updated: 7:02 p.m., Tuesday, August 26, 2008
ALBANY -- With eight months on the job, small town Supervisor Thomas Dias finds himself faced not with a crisis in government, but no government all.
The problem?
Three veteran Ancram town board members abruptly resigned over three days leading up to last Thursday's monthly meeting.
That leaves the rural, 200-year-old Columbia County town with a government unable to even pay its July bills.
"I said, `Wow!'"
"I was really surprised," Dias said when he received the first resignation.
He immediately sought guidance from an expert at the New York State Association of Towns, a lobbying and government resource organization.
"He said this is what is called an 'indeterminate possibility,'" Dias said, "that something like this will probably never happen, so there is no way to plan for it."
Dias is trying to get Democratic Gov. David Paterson to appoint at least one town councilman so the five-member board has a quorum and can conduct business until replacements are chosen by voters in the fall.
The town is solidly Republican.
Dias won election last fall on an independent line after losing a GOP primary.
Ancram is a Hudson Valley town of 1,500 people once known for its lead mines.
It is part of a county where gentrification is causing friction between local families living there for generations and Manhattanites buying weekend and vacation homes.
Dias is a retired IBM Corp. executive who moved to the town in 1989 and figures he's considered a new resident.
"Some people say it's about the new people coming," he said.
"They see how nice the town looks and they want to lock the door and not let anyone else in."
"I say the Ancram people kept this place nice for 300 years."
"I think they know what they were doing."
Dias, however, has shaken things up.
"I'm a person who likes contention," Dias said from the town 90 miles north of New York City.
"I think that to get good information you need a little contention ... and, I'm told, `That's not the way we've always done it.'"
Tension was evident in two of the letters of resignation.
James Bryant wrote that he hopes "the board will be objective in meeting the needs of both the old and new residents, as this town belongs to everyone that calls Ancram their home."
He resigned Monday after 20 years of public service.
"There are still several tasks to which I would have liked to contribute," wrote Gerald Roberts in his resignation letter after nearly 11 years on the town board.
"The momentum process and protocol that have evolved almost assuredly do not seem to embrace those challenges."
Neither Bryant nor Roberts returned calls to their homes.
The third board member, Robert Podris, said he resigned for health reasons.
Town law dictates vacancies are filled by the town board, but that's impossible without a quorum.
State law then kicks in and empowers the governor to fill one or all vacancies until an election.
"We're going as quickly as we can and the town is not facing emergency services being cut or anything like that," said Morgan Hook, a spokesman for Paterson.
The governor was speaking at the Democratic National Convention in Denver.
"Golly, this is just a small town in the Hudson Valley," Dias said, impatient at the pace.
"Heaven help us if it were something major."
By MICHAEL GORMLEY, Associated Press
Last updated: 7:02 p.m., Tuesday, August 26, 2008
ALBANY -- With eight months on the job, small town Supervisor Thomas Dias finds himself faced not with a crisis in government, but no government all.
The problem?
Three veteran Ancram town board members abruptly resigned over three days leading up to last Thursday's monthly meeting.
That leaves the rural, 200-year-old Columbia County town with a government unable to even pay its July bills.
"I said, `Wow!'"
"I was really surprised," Dias said when he received the first resignation.
He immediately sought guidance from an expert at the New York State Association of Towns, a lobbying and government resource organization.
"He said this is what is called an 'indeterminate possibility,'" Dias said, "that something like this will probably never happen, so there is no way to plan for it."
Dias is trying to get Democratic Gov. David Paterson to appoint at least one town councilman so the five-member board has a quorum and can conduct business until replacements are chosen by voters in the fall.
The town is solidly Republican.
Dias won election last fall on an independent line after losing a GOP primary.
Ancram is a Hudson Valley town of 1,500 people once known for its lead mines.
It is part of a county where gentrification is causing friction between local families living there for generations and Manhattanites buying weekend and vacation homes.
Dias is a retired IBM Corp. executive who moved to the town in 1989 and figures he's considered a new resident.
"Some people say it's about the new people coming," he said.
"They see how nice the town looks and they want to lock the door and not let anyone else in."
"I say the Ancram people kept this place nice for 300 years."
"I think they know what they were doing."
Dias, however, has shaken things up.
"I'm a person who likes contention," Dias said from the town 90 miles north of New York City.
"I think that to get good information you need a little contention ... and, I'm told, `That's not the way we've always done it.'"
Tension was evident in two of the letters of resignation.
James Bryant wrote that he hopes "the board will be objective in meeting the needs of both the old and new residents, as this town belongs to everyone that calls Ancram their home."
He resigned Monday after 20 years of public service.
"There are still several tasks to which I would have liked to contribute," wrote Gerald Roberts in his resignation letter after nearly 11 years on the town board.
"The momentum process and protocol that have evolved almost assuredly do not seem to embrace those challenges."
Neither Bryant nor Roberts returned calls to their homes.
The third board member, Robert Podris, said he resigned for health reasons.
Town law dictates vacancies are filled by the town board, but that's impossible without a quorum.
State law then kicks in and empowers the governor to fill one or all vacancies until an election.
"We're going as quickly as we can and the town is not facing emergency services being cut or anything like that," said Morgan Hook, a spokesman for Paterson.
The governor was speaking at the Democratic National Convention in Denver.
"Golly, this is just a small town in the Hudson Valley," Dias said, impatient at the pace.
"Heaven help us if it were something major."
"Paterson tells Dems times are tough"
By DEVLIN BARRETT, Associated Press
Last updated: 8:02 p.m., Tuesday, August 26, 2008
DENVER -- New York Gov. David Paterson on Tuesday gave the Democratic National Convention some of the same bad economic news he's been dishing out to home state audiences -- only this time he suggested a savior in Barack Obama.
Paterson, who is grappling with a state budget crisis caused largely by the reversal of fortunes on Wall Street, laid the blame for the current economic problems squarely with George Bush.
A million homes lost to foreclosure since last summer.
Declining wages coupled with high inflation.
Almost half a million lost jobs this year.
The doom-and-gloom litany has become something of a calling card for Paterson, who made similar points during a speech in Washington last month.
Like other governors who spoke Tuesday, Paterson charged Republican Arizona Sen. John McCain is a disciple of Bush economic policies who would, if elected, offer four more years of similar problems.
"I have a better idea," Paterson said.
"Let's give them four more months and then elect Barack Obama."
The governor, who is legally blind, told his story of how he lost most of his sight to an infection as an infant but persevered and ascended to the governor's mansion of the Empire State.
"I am always aware of how lucky I am," he said.
"There were people I knew who were smarter than me."
"There were those who worked harder and perhaps were more dedicated."
"But for the lack of opportunity, one of them would be standing here talking to you this evening."
Successes like his own, he said, are becoming more difficult because of Republican policies.
The governor's afternoon speech came to a largely empty auditorium hours before appearances by keynote speaker Mark Warner and Sen. Hillary Rodham Clinton, D-N.Y.
The governors were given short blocs; some prepared remarks were only a page.
"Thank you, my time is up," Paterson joked when the scantly filled auditorium loudly applauded his arrival.
By DEVLIN BARRETT, Associated Press
Last updated: 8:02 p.m., Tuesday, August 26, 2008
DENVER -- New York Gov. David Paterson on Tuesday gave the Democratic National Convention some of the same bad economic news he's been dishing out to home state audiences -- only this time he suggested a savior in Barack Obama.
Paterson, who is grappling with a state budget crisis caused largely by the reversal of fortunes on Wall Street, laid the blame for the current economic problems squarely with George Bush.
A million homes lost to foreclosure since last summer.
Declining wages coupled with high inflation.
Almost half a million lost jobs this year.
The doom-and-gloom litany has become something of a calling card for Paterson, who made similar points during a speech in Washington last month.
Like other governors who spoke Tuesday, Paterson charged Republican Arizona Sen. John McCain is a disciple of Bush economic policies who would, if elected, offer four more years of similar problems.
"I have a better idea," Paterson said.
"Let's give them four more months and then elect Barack Obama."
The governor, who is legally blind, told his story of how he lost most of his sight to an infection as an infant but persevered and ascended to the governor's mansion of the Empire State.
"I am always aware of how lucky I am," he said.
"There were people I knew who were smarter than me."
"There were those who worked harder and perhaps were more dedicated."
"But for the lack of opportunity, one of them would be standing here talking to you this evening."
Successes like his own, he said, are becoming more difficult because of Republican policies.
The governor's afternoon speech came to a largely empty auditorium hours before appearances by keynote speaker Mark Warner and Sen. Hillary Rodham Clinton, D-N.Y.
The governors were given short blocs; some prepared remarks were only a page.
"Thank you, my time is up," Paterson joked when the scantly filled auditorium loudly applauded his arrival.
"State: Lawyer owes NY $600K for pension payouts"
Associated Press
Last updated: 3:43 p.m., Wednesday, August 27, 2008
ALBANY -- New York Comptroller Thomas DiNapoli says the state has improperly paid out hundreds of thousands of dollars in pension benefits to a Long Island lawyer.
DiNapoli says Albert D'Agostino owes the retirement system about $605,000.
D'Agostino was incorrectly listed as an employee at three school districts and a planning commission, and received pension payments from August 2002 through March 2008.
This is part of an ongoing investigation of benefits paid improperly to professionals and others working as contractors for schools and local government.
A number could not immediately be located for D'Agostino, but he has said his employment was approved and appropriate.
D'Agostino remains under investigation by the Attorney General's office and could face charges.
------
On the Net: http://www.osc.state.ny.us
Associated Press
Last updated: 3:43 p.m., Wednesday, August 27, 2008
ALBANY -- New York Comptroller Thomas DiNapoli says the state has improperly paid out hundreds of thousands of dollars in pension benefits to a Long Island lawyer.
DiNapoli says Albert D'Agostino owes the retirement system about $605,000.
D'Agostino was incorrectly listed as an employee at three school districts and a planning commission, and received pension payments from August 2002 through March 2008.
This is part of an ongoing investigation of benefits paid improperly to professionals and others working as contractors for schools and local government.
A number could not immediately be located for D'Agostino, but he has said his employment was approved and appropriate.
D'Agostino remains under investigation by the Attorney General's office and could face charges.
------
On the Net: http://www.osc.state.ny.us
"FEMA rapped for denying flood aid to Rensselaer"
By KENNETH C. CROWE II, Staff writer, Albany, New York Times Union
Last updated: 2:24 p.m., Thursday, August 28, 2008
RENSSELAER - City and Rensselaer County officials criticized the Federal Emergency Management Agency for saying the city doesn't have enough damage from its Aug. 11 floods to qualify for assistance.
"It looks like Hurricane Katrina isn't the only things FEMA has screwed up," County Legislator Michael Stammel, R-Rensselaer, said.
FEMA identified $3.5 million in damages, which is below the $24 million threshold, local officials said.
"This one-size-fits-all approach is unfair to smaller communities who by nature cannot generate the money needed to recover from the storm without passing significantly more costs onto the homeowners and business owners already suffering from the loss of personal property and damage to their homes and businesses," County Executive Kathleen Jimino said.
"While $3.5 million of damage may not be a lot of money to New York City and other larger cites or municipalities, it seems to be an insurmountable amount for the city of Rensselaer and its taxpayers," Jimino said.
Stammel and Jimino said they would ask federal representatives to investigate the decision.
Jimino said the county would continue to pursue other avenues of disaster relief.
By KENNETH C. CROWE II, Staff writer, Albany, New York Times Union
Last updated: 2:24 p.m., Thursday, August 28, 2008
RENSSELAER - City and Rensselaer County officials criticized the Federal Emergency Management Agency for saying the city doesn't have enough damage from its Aug. 11 floods to qualify for assistance.
"It looks like Hurricane Katrina isn't the only things FEMA has screwed up," County Legislator Michael Stammel, R-Rensselaer, said.
FEMA identified $3.5 million in damages, which is below the $24 million threshold, local officials said.
"This one-size-fits-all approach is unfair to smaller communities who by nature cannot generate the money needed to recover from the storm without passing significantly more costs onto the homeowners and business owners already suffering from the loss of personal property and damage to their homes and businesses," County Executive Kathleen Jimino said.
"While $3.5 million of damage may not be a lot of money to New York City and other larger cites or municipalities, it seems to be an insurmountable amount for the city of Rensselaer and its taxpayers," Jimino said.
Stammel and Jimino said they would ask federal representatives to investigate the decision.
Jimino said the county would continue to pursue other avenues of disaster relief.
WHY SHOULD THE UNITED STATES TAXPAYERS HAVE TO PAY FOR THE RESULTS OF MISFEASANCE, MALFEASANCE AND GROSS NEGLIGENCE IN CORRUPT RENSSELAER COUNTY IN THE CORRUPT EMPIRE OF NEW YORK?
"Schumer calls for FEMA waiver"
Albany, New York Times Union
First published: Saturday, August 30, 2008
RENSSELAER -- U.S. Sen. Charles Schumer has asked the Federal Emergency Management Agency to waive its disaster reimbursement rules, so Rensselaer and other communities can get disaster aid to recover from the Aug. 11 floods.
"This flood had a devastating effect on local towns, villages and cities across upstate New York, and they should not be left to foot the entire bill alone," Schumer said Friday.
The city would receive $3.5 million in federal assistance if FEMA grants Schumer's request.
There was about $18 million in damage in 11 counties; the threshold for federal aid is $24 million.
"We appreciate the senator's attention and hope his efforts reverse the wrongheaded decision by FEMA," said Rensselaer County Legislator Michael Stammel, R-Rensselaer.
Rensselaer County Executive Kathleen Jimino said, "Any assistance to help the residents of Rensselaer would certainly be appreciated."
-- Kenneth C. Crowe II
"Schumer calls for FEMA waiver"
Albany, New York Times Union
First published: Saturday, August 30, 2008
RENSSELAER -- U.S. Sen. Charles Schumer has asked the Federal Emergency Management Agency to waive its disaster reimbursement rules, so Rensselaer and other communities can get disaster aid to recover from the Aug. 11 floods.
"This flood had a devastating effect on local towns, villages and cities across upstate New York, and they should not be left to foot the entire bill alone," Schumer said Friday.
The city would receive $3.5 million in federal assistance if FEMA grants Schumer's request.
There was about $18 million in damage in 11 counties; the threshold for federal aid is $24 million.
"We appreciate the senator's attention and hope his efforts reverse the wrongheaded decision by FEMA," said Rensselaer County Legislator Michael Stammel, R-Rensselaer.
Rensselaer County Executive Kathleen Jimino said, "Any assistance to help the residents of Rensselaer would certainly be appreciated."
-- Kenneth C. Crowe II
"AMD deal with Intel a factor in plant's future - Questions await company Chairman Hector Ruiz when he visits the Capital Region today"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published: Wednesday, August 27, 2008
MALTA -- Advanced Micro Devices Inc. Chairman Hector Ruiz will surely face questions today about the company's plans for a $3.2 billion computer chip factory here at the Luther Forest Technology Campus.
AMD has yet to officially commit to the site.
The company's financial condition and secretive "asset smart" strategy, designed to save money, are key to the decision.
But a technology-sharing agreement that AMD has with its main rival, Intel Corp., also looms large in the decision, analysts say.
AMD and Intel have had some form of the so-called patent cross-license agreement in place since 1976.
Such agreements are common in the industry, and AMD pays Intel royalties for the use of Intel technology.
The latest version was signed in 2001.
It is set to expire at the end of 2010, before AMD would likely finish construction of its Malta factory, known as Fab 4X.
Morningstar Inc. analyst Andy Ng said the agreement is key to AMD's manufacture of mainstay x86 processors that power personal computers and servers.
He said AMD likely can renegotiate before the expiration.
"They need it," Ng said of AMD.
"This agreement has been going on for a while."
"Chances are, it will go through."
Ng also said Intel, the world's No. 1 maker of x86 chips, might run into antitrust issues if it refuses to renegotiate.
AMD already has filed an antitrust suit against Intel, accusing the company of selling chips at a discount to customers in exchange for agreements that they not buy from AMD.
Intel spokesman Chuck Mulloy said Tuesday the company would not talk about the agreement with AMD or whether it will be renegotiated.
"We never comment about negotiations with anyone," he said.
"As far as we're concerned, that's all confidential."
An AMD spokesman could not be reached for comment.
Ng and other industry observers note the agreement can be canceled if AMD is acquired, and language in the agreement indicates that the license cannot be transferred to a third party.
That means if AMD's asset-smart strategy includes the spinoff or sale of its manufacturing operations -- something many analysts have said is a possibility -- then the agreement will also have to be amended.
"There could be hurdles there," Ng said.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published: Wednesday, August 27, 2008
MALTA -- Advanced Micro Devices Inc. Chairman Hector Ruiz will surely face questions today about the company's plans for a $3.2 billion computer chip factory here at the Luther Forest Technology Campus.
AMD has yet to officially commit to the site.
The company's financial condition and secretive "asset smart" strategy, designed to save money, are key to the decision.
But a technology-sharing agreement that AMD has with its main rival, Intel Corp., also looms large in the decision, analysts say.
AMD and Intel have had some form of the so-called patent cross-license agreement in place since 1976.
Such agreements are common in the industry, and AMD pays Intel royalties for the use of Intel technology.
The latest version was signed in 2001.
It is set to expire at the end of 2010, before AMD would likely finish construction of its Malta factory, known as Fab 4X.
Morningstar Inc. analyst Andy Ng said the agreement is key to AMD's manufacture of mainstay x86 processors that power personal computers and servers.
He said AMD likely can renegotiate before the expiration.
"They need it," Ng said of AMD.
"This agreement has been going on for a while."
"Chances are, it will go through."
Ng also said Intel, the world's No. 1 maker of x86 chips, might run into antitrust issues if it refuses to renegotiate.
AMD already has filed an antitrust suit against Intel, accusing the company of selling chips at a discount to customers in exchange for agreements that they not buy from AMD.
Intel spokesman Chuck Mulloy said Tuesday the company would not talk about the agreement with AMD or whether it will be renegotiated.
"We never comment about negotiations with anyone," he said.
"As far as we're concerned, that's all confidential."
An AMD spokesman could not be reached for comment.
Ng and other industry observers note the agreement can be canceled if AMD is acquired, and language in the agreement indicates that the license cannot be transferred to a third party.
That means if AMD's asset-smart strategy includes the spinoff or sale of its manufacturing operations -- something many analysts have said is a possibility -- then the agreement will also have to be amended.
"There could be hurdles there," Ng said.
"Visiting AMD chief stays coy - He visits Luther Forest and says decision likely will be made by year's end"
By CHRIS CHURCHILL, Business writer, Albany, New York Times Union
First published: Thursday, August 28, 2008
MALTA -- Under a strong midday sun, about 20 Saratoga County officials and members of the media waited in a back parking lot at the Luther Forest Technology Campus.
Then a blue Chevy Tahoe pulled up, and out stepped the man everyone was waiting Wednesday to see: Hector de Jesus Ruiz, the 62-year-old chairman of Advanced Micro Devices Inc., the company that may -- or may not -- build a $3.2 billion computer chip plant at the business park.
AMD hasn't committed to building the factory, which would be backed by $1.2 billion in state incentives.
It's therefore not surprising that Ruiz, during a question-and-answer session with reporters, was peppered with questions on whether the company will do so.
AMD faces a July 2009 deadline to commit to the project.
His answer: AMD is likely to make a decision by the end of the year, but only after a "repositioning" designed to return the money-losing company to economic health.
Part of that repositioning came earlier this week, when AMD sold a unit that produced chips for digital TVs to Broadcom Corp. for $192.8 million in cash.
"At the end of the day, when we finally make a decision here, we're going to be a very strong company," Ruiz said.
Ruiz came to Malta for a Luther Forest tour and, with former state Senate Majority Leader Joseph L. Bruno at his side, was driven around the sprawling and mostly wooded campus.
He was shown the roadways being built within the park and an under-construction bypass that will take commuters directly to the site from Northway Exit 11.
He also was shown some of the residential neighborhoods that surrounds the campus, and likely saw the ongoing installment of the $79 million water pipeline that would serve the AMD factory.
And he was eventually taken to the clear-cut site where stakes in the ground mark the outline of the proposed AMD plant -- and that's where Ruiz proclaimed delight at the surroundings.
"What a site," he said.
"I can't imagine a more beautiful place to put a facility."
For a corporate executive, Ruiz has a colorful past.
He was raised in a Mexican border town, where he worked as a shoeshine boy and played in a rock band called The Teenagers.
He got lucky when a Methodist missionary offered to pay for a year's tuition at the University of Texas, according to a profile published in the Austin American Statesman.
Ruiz eventually earned a Ph.D in electrical engineering at Rice University.
At times Wednesday, Ruiz seemed bemused by the amount of attention he was receiving.
And for all the hoopla, it's unclear how much of a role he will have in the Luther Forest decision.
That's because Ruiz was ousted last month from AMD's top job -- chief executive -- after the company reported its seventh consecutive losing quarter.
He was replaced by Dirk Meyer, an AMD engineering executive.
On Wednesday, though, Ruiz said New Yorkers should not worry that the change will affect AMD's decision on Luther Forest because the succession had long been planned and Meyer was on board with the project.
At the conclusion of the visit, and with a visit to Saratoga Race Course next on the agenda, Ruiz was pressed by reporters to offer odds on whether AMD will build in Malta.
But he didn't take the bait.
"I'm not a good horseplayer," he said.
Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.
By CHRIS CHURCHILL, Business writer, Albany, New York Times Union
First published: Thursday, August 28, 2008
MALTA -- Under a strong midday sun, about 20 Saratoga County officials and members of the media waited in a back parking lot at the Luther Forest Technology Campus.
Then a blue Chevy Tahoe pulled up, and out stepped the man everyone was waiting Wednesday to see: Hector de Jesus Ruiz, the 62-year-old chairman of Advanced Micro Devices Inc., the company that may -- or may not -- build a $3.2 billion computer chip plant at the business park.
AMD hasn't committed to building the factory, which would be backed by $1.2 billion in state incentives.
It's therefore not surprising that Ruiz, during a question-and-answer session with reporters, was peppered with questions on whether the company will do so.
AMD faces a July 2009 deadline to commit to the project.
His answer: AMD is likely to make a decision by the end of the year, but only after a "repositioning" designed to return the money-losing company to economic health.
Part of that repositioning came earlier this week, when AMD sold a unit that produced chips for digital TVs to Broadcom Corp. for $192.8 million in cash.
"At the end of the day, when we finally make a decision here, we're going to be a very strong company," Ruiz said.
Ruiz came to Malta for a Luther Forest tour and, with former state Senate Majority Leader Joseph L. Bruno at his side, was driven around the sprawling and mostly wooded campus.
He was shown the roadways being built within the park and an under-construction bypass that will take commuters directly to the site from Northway Exit 11.
He also was shown some of the residential neighborhoods that surrounds the campus, and likely saw the ongoing installment of the $79 million water pipeline that would serve the AMD factory.
And he was eventually taken to the clear-cut site where stakes in the ground mark the outline of the proposed AMD plant -- and that's where Ruiz proclaimed delight at the surroundings.
"What a site," he said.
"I can't imagine a more beautiful place to put a facility."
For a corporate executive, Ruiz has a colorful past.
He was raised in a Mexican border town, where he worked as a shoeshine boy and played in a rock band called The Teenagers.
He got lucky when a Methodist missionary offered to pay for a year's tuition at the University of Texas, according to a profile published in the Austin American Statesman.
Ruiz eventually earned a Ph.D in electrical engineering at Rice University.
At times Wednesday, Ruiz seemed bemused by the amount of attention he was receiving.
And for all the hoopla, it's unclear how much of a role he will have in the Luther Forest decision.
That's because Ruiz was ousted last month from AMD's top job -- chief executive -- after the company reported its seventh consecutive losing quarter.
He was replaced by Dirk Meyer, an AMD engineering executive.
On Wednesday, though, Ruiz said New Yorkers should not worry that the change will affect AMD's decision on Luther Forest because the succession had long been planned and Meyer was on board with the project.
At the conclusion of the visit, and with a visit to Saratoga Race Course next on the agenda, Ruiz was pressed by reporters to offer odds on whether AMD will build in Malta.
But he didn't take the bait.
"I'm not a good horseplayer," he said.
Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.
"Senate offers flood aid to city - Rensselaer would get $1.1M to help with costs related to Aug. 11 deluge"
By KENNETH C. CROWE II, Staff writer, Albany, New York Times union
First published: Thursday, September 4, 2008
RENSSELAER -- The city will receive $1.1 million from the state Senate to cover some of its costs to rebuild after suffering damage in the Aug. 11 flooding.
State and local officials Wednesday criticized the Federal Emergency Management Agency's guidelines for receiving federal assistance, which ruled out the city's requests for help.
The state needed to identify $24.3 million in damage, but could only identify $18.3 million in 11 counties.
"We should respond to municipalities that are struggling to make ends meet," said State Senate Majority Leader Dean Skelos, R-Rockville Center.
Skelos called on the state Assembly and Gov. David Paterson to match the Senate's contribution, which would give the $3.3 million to undertake repairs.
Nearly 6 inches of rain fell on the city in just a couple of hours on Aug. 11, sending the Quackenderry Creek over its banks.
The flood damaged about 40 homes, the Rensselaer Little League Field, the city public works garage and the Rensselaer Boys & Girls Club.
The city has a lot of work to do, Mayor Dan Dwyer said.
"Hardly anything has been fixed," Dwyer said.
The state funds will allow the city to deal with infrastructure and equipment demands.
Dwyer said he is concerned that the city will not be able to handle snowstorms this winter because the rising water damaged four trucks used for plowing.
About $90,000 has been donated to two relief funds to assist residents, Dwyer said.
The news conference Wednesday in the Hollow neighborhood featured Assemblyman Roy J. McDonald, R-Saratoga, who is campaigning for the 43rd State Senate District seat vacated by former Senate Majority Leader Joseph L. Bruno earlier this summer.
McDonald was given credit for pushing the city's cause.
Skelos said the state Senate was responding to the needs of a district that currently lacks a senator.
McDonald faces Nassau Councilman Ray Seney in the Sept. 9 Republican primary for the Senate seat.
By KENNETH C. CROWE II, Staff writer, Albany, New York Times union
First published: Thursday, September 4, 2008
RENSSELAER -- The city will receive $1.1 million from the state Senate to cover some of its costs to rebuild after suffering damage in the Aug. 11 flooding.
State and local officials Wednesday criticized the Federal Emergency Management Agency's guidelines for receiving federal assistance, which ruled out the city's requests for help.
The state needed to identify $24.3 million in damage, but could only identify $18.3 million in 11 counties.
"We should respond to municipalities that are struggling to make ends meet," said State Senate Majority Leader Dean Skelos, R-Rockville Center.
Skelos called on the state Assembly and Gov. David Paterson to match the Senate's contribution, which would give the $3.3 million to undertake repairs.
Nearly 6 inches of rain fell on the city in just a couple of hours on Aug. 11, sending the Quackenderry Creek over its banks.
The flood damaged about 40 homes, the Rensselaer Little League Field, the city public works garage and the Rensselaer Boys & Girls Club.
The city has a lot of work to do, Mayor Dan Dwyer said.
"Hardly anything has been fixed," Dwyer said.
The state funds will allow the city to deal with infrastructure and equipment demands.
Dwyer said he is concerned that the city will not be able to handle snowstorms this winter because the rising water damaged four trucks used for plowing.
About $90,000 has been donated to two relief funds to assist residents, Dwyer said.
The news conference Wednesday in the Hollow neighborhood featured Assemblyman Roy J. McDonald, R-Saratoga, who is campaigning for the 43rd State Senate District seat vacated by former Senate Majority Leader Joseph L. Bruno earlier this summer.
McDonald was given credit for pushing the city's cause.
Skelos said the state Senate was responding to the needs of a district that currently lacks a senator.
McDonald faces Nassau Councilman Ray Seney in the Sept. 9 Republican primary for the Senate seat.
"FBI pursues Sweeney probe - Troop G in Loudonville gets a visit; imprisoned Washington lobbyist talks to investigators"
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published: Sunday, September 14, 2008
ALBANY -- Federal agents from Washington, D.C., were in Albany last week hunting leads in an ongoing criminal investigation centered on former U.S. Rep. John Sweeney, including his dealings an Albany lobbying firm.
The FBI agents, assigned to a unit that works under the Justice Department's Public Integrity Section, also visited the local State Police headquarters -- Troop G in Loudonville -- for undisclosed reasons, according to two people familiar with their work here.
"There were federal agents who visited Troop G (Thursday)," said Lt. Glenn Miner, a State Police spokesman.
"As you know there are several active investigations, but as a matter of fairness to any person that might be inquired about we wouldn't discuss any specifics about what they were inquiring about."
Sweeney, a four-term Republican congressman who was defeated in 2006, has endured numerous scandals stemming from his brushes with the State Police.
They include a DWI arrest last year, a 2005 domestic dispute with his wife that triggered a 911 call to police, and Sweeney's controversial car crash that knocked out power to a Washington County ski area seven years ago but resulted in no tickets.
The State Police handling of a domestic dispute at Sweeney's Clifton Park home three years ago stirred the most controversy.
The congressman had declined to confirm or discuss the matter for months, and State Police refused to release any documents related to the call.
But two weeks before the November 2006 general election copies of the police report were leaked to the Times Union, Daily News and Newsday.
Sweeney claimed the report was fabricated and his campaign camp subsequently released another State Police report which contained a sanitized version of the 911 call.
The Washington-based FBI probe of Sweeney, however, is much broader than his dealings with the State Police.
A person briefed on the investigation said the probe stems from information supplied by former Washington lobbyist Jack A. Abramoff, who is cooperating with officials while serving federal prison terms related to his convictions on fraud and conspiracy charges.
FBI agents spent last week interviewing people who are familiar with the business dealings of Sweeney and a longtime friend and political mentor, William D. Powers of Chatham.
Powers, 66, a lobbyist, stepped down as state Republican chairman in 2001 after 11 years in the post.
One of the agents who was in Albany also had signed an affidavit that was used to obtain a federal search warrant for the June 6 raid of Powers' offices at 90 State St. in Albany.
Agents and federal prosecutors swarmed Powers' suite and office annex, removing a truckload of computers, phones, data disks, posters and other materials.
The search warrant, which was unsealed on a request by the Times Union, was laced with references to Sweeney and his ex-wife, Gaia "Gayle" Ford, who worked for Powers until shortly after Sweeney lost the November 2006 election to U.S. Rep. Kirsten Gillibrand, D-Greenport.
The court documents confirm the investigation is in part exploring Sweeney's dealings with the Albany lobbying firm after he was appointed to the powerful House Appropriations Committee in 2001.
In addition, a government memorandum filed recently in connection with the sentencing of Abramoff said there are "more lobbyists and public officials involved in crimes with Abramoff" than have been publicly identified.
The investigation of those people is ongoing, Justice Department attorneys said.
The government's sentencing memorandum on Abramoff, which outlined some details of his extensive cooperation, also referenced Abramoff's use of all-expenses-paid trips to the Northern Mariana Islands in the South Pacific to gain favoritism with Washington lawmakers.
In October 2006, the Times Union reported Sweeney may have violated congressional ethics rules when he did not disclose who paid for a trip he took to the Mariana Islands with Tony Rudy, an Abramoff employee who became a lobbyist after leaving the staff of former House Majority Leader Tom DeLay.
Rudy pleaded guilty to federal conspiracy charges in March 2006 in connection with his lobbying work for Abramoff.
He has not been sentenced.
Abramoff earned more than $10 million as a lobbyist for the government of the Mariana Islands, a U.S.-controlled territory that has been a source of great controversy because workers there have described the horrible conditions in which they produce garments sold in the United States.
Yet in Albany, the federal court documents confirm agents are scrutinizing a series of federal grants that allegedly were steered with Sweeney's help to Powers' clients, including the Lincoln Center for the Performing Arts, Siena College, and the Shaker Museum and Library near Powers' Columbia County home.
The investigation also is examining the circumstances by which Powers gave Sweeney's ex-wife a job while Sweeney was in Congress.
The search warrant identified items that would be seized to include "any thing of value paid to or received by Gayle Sweeney or John Sweeney ... (including) gifts, loans, offers of employment, contracts, billings, financial transactions, travel, tickets, souvenirs or photographs of sporting or entertainment events, or dining at restaurants."
The warrant hints agents may be pursuing the relationship between Sweeney and Powers in similar fashion to their examination of Abramoff's lavish gifts to the lawmakers he lobbied.
"In dealing with government officials, Abramoff generally provided a stream of things of value to public officials in exchange for official actions and influence," states a Justice Department memo filed last month in U.S. District Court in Washington, D.C.
"The things provided usually were items such as meals and drinks as well as tickets to sporting events and concerts."
E. Stewart Jones, a Troy attorney who has represented Sweeney on a number of unrelated issues, said Sweeney is being represented by an out-of-state firm in the federal investigation.
He has declined to identity the firm.
Sweeney could not be reached for comment.
Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published: Sunday, September 14, 2008
ALBANY -- Federal agents from Washington, D.C., were in Albany last week hunting leads in an ongoing criminal investigation centered on former U.S. Rep. John Sweeney, including his dealings an Albany lobbying firm.
The FBI agents, assigned to a unit that works under the Justice Department's Public Integrity Section, also visited the local State Police headquarters -- Troop G in Loudonville -- for undisclosed reasons, according to two people familiar with their work here.
"There were federal agents who visited Troop G (Thursday)," said Lt. Glenn Miner, a State Police spokesman.
"As you know there are several active investigations, but as a matter of fairness to any person that might be inquired about we wouldn't discuss any specifics about what they were inquiring about."
Sweeney, a four-term Republican congressman who was defeated in 2006, has endured numerous scandals stemming from his brushes with the State Police.
They include a DWI arrest last year, a 2005 domestic dispute with his wife that triggered a 911 call to police, and Sweeney's controversial car crash that knocked out power to a Washington County ski area seven years ago but resulted in no tickets.
The State Police handling of a domestic dispute at Sweeney's Clifton Park home three years ago stirred the most controversy.
The congressman had declined to confirm or discuss the matter for months, and State Police refused to release any documents related to the call.
But two weeks before the November 2006 general election copies of the police report were leaked to the Times Union, Daily News and Newsday.
Sweeney claimed the report was fabricated and his campaign camp subsequently released another State Police report which contained a sanitized version of the 911 call.
The Washington-based FBI probe of Sweeney, however, is much broader than his dealings with the State Police.
A person briefed on the investigation said the probe stems from information supplied by former Washington lobbyist Jack A. Abramoff, who is cooperating with officials while serving federal prison terms related to his convictions on fraud and conspiracy charges.
FBI agents spent last week interviewing people who are familiar with the business dealings of Sweeney and a longtime friend and political mentor, William D. Powers of Chatham.
Powers, 66, a lobbyist, stepped down as state Republican chairman in 2001 after 11 years in the post.
One of the agents who was in Albany also had signed an affidavit that was used to obtain a federal search warrant for the June 6 raid of Powers' offices at 90 State St. in Albany.
Agents and federal prosecutors swarmed Powers' suite and office annex, removing a truckload of computers, phones, data disks, posters and other materials.
The search warrant, which was unsealed on a request by the Times Union, was laced with references to Sweeney and his ex-wife, Gaia "Gayle" Ford, who worked for Powers until shortly after Sweeney lost the November 2006 election to U.S. Rep. Kirsten Gillibrand, D-Greenport.
The court documents confirm the investigation is in part exploring Sweeney's dealings with the Albany lobbying firm after he was appointed to the powerful House Appropriations Committee in 2001.
In addition, a government memorandum filed recently in connection with the sentencing of Abramoff said there are "more lobbyists and public officials involved in crimes with Abramoff" than have been publicly identified.
The investigation of those people is ongoing, Justice Department attorneys said.
The government's sentencing memorandum on Abramoff, which outlined some details of his extensive cooperation, also referenced Abramoff's use of all-expenses-paid trips to the Northern Mariana Islands in the South Pacific to gain favoritism with Washington lawmakers.
In October 2006, the Times Union reported Sweeney may have violated congressional ethics rules when he did not disclose who paid for a trip he took to the Mariana Islands with Tony Rudy, an Abramoff employee who became a lobbyist after leaving the staff of former House Majority Leader Tom DeLay.
Rudy pleaded guilty to federal conspiracy charges in March 2006 in connection with his lobbying work for Abramoff.
He has not been sentenced.
Abramoff earned more than $10 million as a lobbyist for the government of the Mariana Islands, a U.S.-controlled territory that has been a source of great controversy because workers there have described the horrible conditions in which they produce garments sold in the United States.
Yet in Albany, the federal court documents confirm agents are scrutinizing a series of federal grants that allegedly were steered with Sweeney's help to Powers' clients, including the Lincoln Center for the Performing Arts, Siena College, and the Shaker Museum and Library near Powers' Columbia County home.
The investigation also is examining the circumstances by which Powers gave Sweeney's ex-wife a job while Sweeney was in Congress.
The search warrant identified items that would be seized to include "any thing of value paid to or received by Gayle Sweeney or John Sweeney ... (including) gifts, loans, offers of employment, contracts, billings, financial transactions, travel, tickets, souvenirs or photographs of sporting or entertainment events, or dining at restaurants."
The warrant hints agents may be pursuing the relationship between Sweeney and Powers in similar fashion to their examination of Abramoff's lavish gifts to the lawmakers he lobbied.
"In dealing with government officials, Abramoff generally provided a stream of things of value to public officials in exchange for official actions and influence," states a Justice Department memo filed last month in U.S. District Court in Washington, D.C.
"The things provided usually were items such as meals and drinks as well as tickets to sporting events and concerts."
E. Stewart Jones, a Troy attorney who has represented Sweeney on a number of unrelated issues, said Sweeney is being represented by an out-of-state firm in the federal investigation.
He has declined to identity the firm.
Sweeney could not be reached for comment.
Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.
AS A NEW YORK STATE RESIDENT WHO HAS BEEN TRACKING GOVERNMENT CORRUPTION IN THIS CORRUPT ****-HOLE OF A STATE SINCE THE 1970's, I ESPECIALLY LIKE THIS STATEMENT BY NEW YORK STATE INSURANCE CZAR ERIC "NIPS" DINALLO FROM THIS FOLLOWING ARTICLE THAT:
"We will continue to implement the Governor’s program of creative and pragmatic regulation that promotes growth while protecting policy holders and consumers.”
GOVERNOR'S PROGRAM OF CREATIVE AND PRAGMATIC REGULATION ....
A FLIM-FLAM ON THE PUBLIC BY ANY OTHER NAME ....
CREATIVE AND PRAGMATIC REGULATION OF WALL STREET IN NEW YORK STATE IS WHAT GOT US INTO THIS MESS IN THE FIRST PLACE ....
AND UNDAUNTED BY ITS ABJECT FAILURE, DAVID PATERSON, THE BLIND MAN AND SPITZER TOADY WHO IS THE GOVERNOR OF NEW YORK STATE TODAY IS GOING TO STAY "WITH THE PROGRAM OF FAILURE" ....
BECAUSE THE BLIND MAN IS A PART OF THE PROBLEM ....
AND BECAUSE HE HAS NOTHING ELSE TO OFFER ....
BEING NOTHING MORE THAN A HAND PUPPET FOR THE SPECIAL INTERESTS IN THE STATE WHO ARE THE ARCHITECTS OF THIS FINANCIAL MESS ....
And so ...
"Paterson announces bailout of AIG"
September 15, 2008 at 12:54 pm by Irene Jay Liu, Albany, New York Times Union
Gov. David Paterson just announced that the state is moving to help bail out American International Group, AIG, which faces a potential credit downgrade that would destroy the firm.
The Paterson administration, particularly Insurance Commissioner Eric Dinallo, has been working with the Federal Reserve to find ways to provide assistance to the firm.
The state’s plan would be to take steps to allow AIG to collateralize its own holdings (subsidiaries that are not liquid), up to $20 billion, so that it can apply for bridge loans.
Paterson emphasized that this will not cost taxpayers a dime nor will the move pose a risk to AIG policy holders.
AIG is seeking a $40 billion bridge loan from the federal government to help it get through this crisis.
In addition, Paterson said commissioners from New York and New Jersey are working together to help those who will lose their jobs as a result of Lehman’s financial woes - the investment bank announced that it will file for bankruptcy.
In addition, Merrill Lynch announced that it will be sold to Bank of America.
Paterson said besides AIG, no other firms are currently requesting state help.
He reiterated many times that no state dollars will be used in the bailout.
The governor spoke with NYC Mayor Michael Bloomberg about the crisis this morning.
In response to a questions that I couldn’t hear (the press conference was in New York City), Paterson said legislative leaders are “already on alert by now about what the fiscal condition of this state might be.”
Paterson has been sounding the alarm over the anticipated loss in tax revenues as a result of the downturn on Wall Street, and the need for belt-tightening in the state.
Paterson’s statement after the jump.
Governor David A. Paterson today announced a multi-billion dollar financing plan to stabilize American International Group (AIG), the world’s largest insurance provider, at no cost to New York taxpayers.
The plan calls for AIG to transfer some assets to provide necessary cash for short-term liquidity, a move that requires regulatory oversight approval from the New York Insurance Department.
AIG will undertake a series of transactions that are expected to raise about $20 billion, solving the company’s immediate cash liquidity problem.
Additionally, Governor Paterson has sent Insurance Superintendent Eric Dinallo to work with the Federal Reserve on a plan to help AIG.
“Wall Street’s continuing problems should serve as a stark reminder that this recession is far from over."
"New York State has taken the first step towards helping to stabilize AIG, which is otherwise a very healthy company,” said Governor Paterson.
“On a state level, we were able to reach a market-based solution that will stabilize AIG at no cost to New York taxpayers."
"Policyholders should also know that they are safe, and their insurance policies are still good."
"AIG’S insurance companies are financially strong, and the Insurance Department will continue to ensure that they remain strong.”
These transactions will protect the company’s policyholders, which is a pre-condition of the Insurance Department’s approval.
Additionally, the Insurance Department will continue to closely monitor AIG to ensure it has the assets to pay claims.
New York State Insurance Department Superintendent Eric Dinallo said:
“Under Governor Paterson’s direction, we are working closely with AIG to craft a transaction that will stabilize an important New York insurance company, while protecting policyholders."
"This continues our work with the bond insurers where the State proactively produced market-based commercial solutions."
"We will continue to implement the Governor’s program of creative and pragmatic regulation that promotes growth while protecting policy holders and consumers.”
AIG is the world’s largest insurance company with $1 trillion in assets, and more than 100,000 employees.
In New York State, AIG has 8,500 employees who earn an annual payroll of $897 million.
http://blogs.timesunion.com/capitol/archives/8720
"We will continue to implement the Governor’s program of creative and pragmatic regulation that promotes growth while protecting policy holders and consumers.”
GOVERNOR'S PROGRAM OF CREATIVE AND PRAGMATIC REGULATION ....
A FLIM-FLAM ON THE PUBLIC BY ANY OTHER NAME ....
CREATIVE AND PRAGMATIC REGULATION OF WALL STREET IN NEW YORK STATE IS WHAT GOT US INTO THIS MESS IN THE FIRST PLACE ....
AND UNDAUNTED BY ITS ABJECT FAILURE, DAVID PATERSON, THE BLIND MAN AND SPITZER TOADY WHO IS THE GOVERNOR OF NEW YORK STATE TODAY IS GOING TO STAY "WITH THE PROGRAM OF FAILURE" ....
BECAUSE THE BLIND MAN IS A PART OF THE PROBLEM ....
AND BECAUSE HE HAS NOTHING ELSE TO OFFER ....
BEING NOTHING MORE THAN A HAND PUPPET FOR THE SPECIAL INTERESTS IN THE STATE WHO ARE THE ARCHITECTS OF THIS FINANCIAL MESS ....
And so ...
"Paterson announces bailout of AIG"
September 15, 2008 at 12:54 pm by Irene Jay Liu, Albany, New York Times Union
Gov. David Paterson just announced that the state is moving to help bail out American International Group, AIG, which faces a potential credit downgrade that would destroy the firm.
The Paterson administration, particularly Insurance Commissioner Eric Dinallo, has been working with the Federal Reserve to find ways to provide assistance to the firm.
The state’s plan would be to take steps to allow AIG to collateralize its own holdings (subsidiaries that are not liquid), up to $20 billion, so that it can apply for bridge loans.
Paterson emphasized that this will not cost taxpayers a dime nor will the move pose a risk to AIG policy holders.
AIG is seeking a $40 billion bridge loan from the federal government to help it get through this crisis.
In addition, Paterson said commissioners from New York and New Jersey are working together to help those who will lose their jobs as a result of Lehman’s financial woes - the investment bank announced that it will file for bankruptcy.
In addition, Merrill Lynch announced that it will be sold to Bank of America.
Paterson said besides AIG, no other firms are currently requesting state help.
He reiterated many times that no state dollars will be used in the bailout.
The governor spoke with NYC Mayor Michael Bloomberg about the crisis this morning.
In response to a questions that I couldn’t hear (the press conference was in New York City), Paterson said legislative leaders are “already on alert by now about what the fiscal condition of this state might be.”
Paterson has been sounding the alarm over the anticipated loss in tax revenues as a result of the downturn on Wall Street, and the need for belt-tightening in the state.
Paterson’s statement after the jump.
Governor David A. Paterson today announced a multi-billion dollar financing plan to stabilize American International Group (AIG), the world’s largest insurance provider, at no cost to New York taxpayers.
The plan calls for AIG to transfer some assets to provide necessary cash for short-term liquidity, a move that requires regulatory oversight approval from the New York Insurance Department.
AIG will undertake a series of transactions that are expected to raise about $20 billion, solving the company’s immediate cash liquidity problem.
Additionally, Governor Paterson has sent Insurance Superintendent Eric Dinallo to work with the Federal Reserve on a plan to help AIG.
“Wall Street’s continuing problems should serve as a stark reminder that this recession is far from over."
"New York State has taken the first step towards helping to stabilize AIG, which is otherwise a very healthy company,” said Governor Paterson.
“On a state level, we were able to reach a market-based solution that will stabilize AIG at no cost to New York taxpayers."
"Policyholders should also know that they are safe, and their insurance policies are still good."
"AIG’S insurance companies are financially strong, and the Insurance Department will continue to ensure that they remain strong.”
These transactions will protect the company’s policyholders, which is a pre-condition of the Insurance Department’s approval.
Additionally, the Insurance Department will continue to closely monitor AIG to ensure it has the assets to pay claims.
New York State Insurance Department Superintendent Eric Dinallo said:
“Under Governor Paterson’s direction, we are working closely with AIG to craft a transaction that will stabilize an important New York insurance company, while protecting policyholders."
"This continues our work with the bond insurers where the State proactively produced market-based commercial solutions."
"We will continue to implement the Governor’s program of creative and pragmatic regulation that promotes growth while protecting policy holders and consumers.”
AIG is the world’s largest insurance company with $1 trillion in assets, and more than 100,000 employees.
In New York State, AIG has 8,500 employees who earn an annual payroll of $897 million.
http://blogs.timesunion.com/capitol/archives/8720
"NY state pension funds face Lehman losses"
Associated Press
Last updated: 3:45 p.m., Tuesday, September 16, 2008
ALBANY -- New York's pension funds for state workers and teachers face several hundred million dollars in losses from investments in troubled Lehman Brothers Holdings Inc.
The state Comptroller's office says the state Common Retirement Fund held 5 million Lehman shares on Monday, when the company filed for bankruptcy protection and its shares dropped to 21 cents.
A spokesman for the office says there's concern over the loss, but Lehman shares were a small part of the fund, which reported assets of $153 billion in March.
It wasn't immediately known how many shares were held by the Teachers' Retirement System, which has $100 billion in assets.
It reported holding just more than 2 million Lehman shares priced at $19.81 as of June 30, a stake worth about $42 million at the time.
Associated Press
Last updated: 3:45 p.m., Tuesday, September 16, 2008
ALBANY -- New York's pension funds for state workers and teachers face several hundred million dollars in losses from investments in troubled Lehman Brothers Holdings Inc.
The state Comptroller's office says the state Common Retirement Fund held 5 million Lehman shares on Monday, when the company filed for bankruptcy protection and its shares dropped to 21 cents.
A spokesman for the office says there's concern over the loss, but Lehman shares were a small part of the fund, which reported assets of $153 billion in March.
It wasn't immediately known how many shares were held by the Teachers' Retirement System, which has $100 billion in assets.
It reported holding just more than 2 million Lehman shares priced at $19.81 as of June 30, a stake worth about $42 million at the time.
"NY governor seeks help for AIG"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Tuesday, September 16, 2008
ALBANY -- New York officials were meeting Tuesday with American International Group Inc. and the Federal Reserve to try to strike a deal to keep AIG afloat, Gov. David Paterson said.
"I think they have a day, but this is the moment, we are in the moment right now," Paterson said on CNBC-TV.
"This would be an effect on the entire market, if AIG goes down."
Meanwhile, New York Attorney General Andrew Cuomo pushed for a federal deal to save AIG.
"While we do not generally support government intervention in these situations, in this case we do support the Federal Reserve being part of a private sector effort to stabilize AIG," Cuomo said.
"Given AIG's interconnections, its failure would pose serious hardships to many companies and individuals."
"The Fed's leadership and collaboration is therefore essential, and I hope they act soon."
Paterson spokesmen refused to comment on whether a federal bailout is expected.
Paterson said his administration is working to allow AIG, based in Manhattan, to access $20 billion of subsidiary money to pay for day-to-day operations.
Insurance regulations that protect assets for customers would have to be excused to allow AIG to tap into its subsidiaries' funds.
"What we did in New York was we tried to clear the way for an opportunity," Paterson said.
"Their argument is they are sound, but they just don't have cash right now."
Keeping AIG afloat would protect thousands of employees and investors in New York who are tied to AIG's troubles, the latest hit the state has taken as Wall Street's debacle unfolded this year.
"They have a trillion dollars in assets, I know that would have to reverberate in a lot of different areas," Paterson said, calling it a "catastrophic problem" waiting to happen.
Shares of AIG were falling sharply as investors grew increasingly pessimistic the company will find funding to avoid a liquidity crunch that could touch off even more global financial turmoil.
AIG's future was just part of New York's fiscal nightmare this week, after Wall Street was hit by losses unmatched since the Sept. 11, 2001, attacks.
"We probably lost a billion dollars yesterday," Paterson said.
The Democratic governor said Tuesday on CNBC that the stock market losses are sad for America, but especially damaging for New York.
That's because New York state government has come to depend on getting 20 percent of its revenues from Wall Street.
Paterson said the losses on Wall Street Monday alone may have wiped out the $475 million in spending cuts approved this summer in a special session of the Legislature to avoid a state budget deficit this year.
"I don't think the state had depleted its cushion for this year, but it makes next year go from bad to worse," said E.J. McMahon, from the fiscally conservative Empire Center for New York State Policy.
That will require the Legislature to cut spending further, and that would likely have to include school aid that has so far remained untouched.
"If there are still people around who thought maybe it would get better, this limited their bet," McMahon said.
"I'm sure there will be no shortage of people calling for increasing taxes, but only on the rich -- the people whose incomes are plummeting."
Senate Democratic leader Malcolm Smith of Queens said another emergency economic session of the Legislature is needed "to protect New York's place as the world's financial capital."
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Tuesday, September 16, 2008
ALBANY -- New York officials were meeting Tuesday with American International Group Inc. and the Federal Reserve to try to strike a deal to keep AIG afloat, Gov. David Paterson said.
"I think they have a day, but this is the moment, we are in the moment right now," Paterson said on CNBC-TV.
"This would be an effect on the entire market, if AIG goes down."
Meanwhile, New York Attorney General Andrew Cuomo pushed for a federal deal to save AIG.
"While we do not generally support government intervention in these situations, in this case we do support the Federal Reserve being part of a private sector effort to stabilize AIG," Cuomo said.
"Given AIG's interconnections, its failure would pose serious hardships to many companies and individuals."
"The Fed's leadership and collaboration is therefore essential, and I hope they act soon."
Paterson spokesmen refused to comment on whether a federal bailout is expected.
Paterson said his administration is working to allow AIG, based in Manhattan, to access $20 billion of subsidiary money to pay for day-to-day operations.
Insurance regulations that protect assets for customers would have to be excused to allow AIG to tap into its subsidiaries' funds.
"What we did in New York was we tried to clear the way for an opportunity," Paterson said.
"Their argument is they are sound, but they just don't have cash right now."
Keeping AIG afloat would protect thousands of employees and investors in New York who are tied to AIG's troubles, the latest hit the state has taken as Wall Street's debacle unfolded this year.
"They have a trillion dollars in assets, I know that would have to reverberate in a lot of different areas," Paterson said, calling it a "catastrophic problem" waiting to happen.
Shares of AIG were falling sharply as investors grew increasingly pessimistic the company will find funding to avoid a liquidity crunch that could touch off even more global financial turmoil.
AIG's future was just part of New York's fiscal nightmare this week, after Wall Street was hit by losses unmatched since the Sept. 11, 2001, attacks.
"We probably lost a billion dollars yesterday," Paterson said.
The Democratic governor said Tuesday on CNBC that the stock market losses are sad for America, but especially damaging for New York.
That's because New York state government has come to depend on getting 20 percent of its revenues from Wall Street.
Paterson said the losses on Wall Street Monday alone may have wiped out the $475 million in spending cuts approved this summer in a special session of the Legislature to avoid a state budget deficit this year.
"I don't think the state had depleted its cushion for this year, but it makes next year go from bad to worse," said E.J. McMahon, from the fiscally conservative Empire Center for New York State Policy.
That will require the Legislature to cut spending further, and that would likely have to include school aid that has so far remained untouched.
"If there are still people around who thought maybe it would get better, this limited their bet," McMahon said.
"I'm sure there will be no shortage of people calling for increasing taxes, but only on the rich -- the people whose incomes are plummeting."
Senate Democratic leader Malcolm Smith of Queens said another emergency economic session of the Legislature is needed "to protect New York's place as the world's financial capital."
"Rensselaer gets flood-repair aid"
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 2:46 p.m., Thursday, September 18, 2008
RENSSELAER -- Gov. David A. Paterson today announced the city will get an additional $500,000 to repair infrastrure damaged during flooding last month.
The funds were made available through the Community Development Block Grant program, federal funds administered through the state Division of Housing and Community Renewal.
"While the city of Rensselaer does not qualify for FEMA assistance, the funds we've helped to deliver will aid in the city's recovery,'' Paterson said in a prepared statement.
Nearly 6 inches of rain fell on the city in just a couple of hours Aug. 11, sending the Quackenderry Creek over its banks.
The flood damaged about 40 homes, the Rensselaer Little League Field, the city public works garage and the Rensselaer Boys & Girls Club.
The state funds will allow the city to deal with infrastructure and equipment repairs.
Mayor Dan Dwyer has said he was concerned that the city will not be able to handle snowstorms this winter because the rising water damaged four trucks used for plowing.
Dwyer was not available to comment on the new aid offer Thursday.
Earlier this month it was announced that the city will receive $1.1 million from the state Senate to cover some of its costs to rebuild after the flooding.
Local officials tried to get Federal Emergency Management Agency funds but the agency determined that the estimated damage costs in the affected counties was $18.2 million, well below the threshold of $24.3 million which would trigger FEMA review.
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 2:46 p.m., Thursday, September 18, 2008
RENSSELAER -- Gov. David A. Paterson today announced the city will get an additional $500,000 to repair infrastrure damaged during flooding last month.
The funds were made available through the Community Development Block Grant program, federal funds administered through the state Division of Housing and Community Renewal.
"While the city of Rensselaer does not qualify for FEMA assistance, the funds we've helped to deliver will aid in the city's recovery,'' Paterson said in a prepared statement.
Nearly 6 inches of rain fell on the city in just a couple of hours Aug. 11, sending the Quackenderry Creek over its banks.
The flood damaged about 40 homes, the Rensselaer Little League Field, the city public works garage and the Rensselaer Boys & Girls Club.
The state funds will allow the city to deal with infrastructure and equipment repairs.
Mayor Dan Dwyer has said he was concerned that the city will not be able to handle snowstorms this winter because the rising water damaged four trucks used for plowing.
Dwyer was not available to comment on the new aid offer Thursday.
Earlier this month it was announced that the city will receive $1.1 million from the state Senate to cover some of its costs to rebuild after the flooding.
Local officials tried to get Federal Emergency Management Agency funds but the agency determined that the estimated damage costs in the affected counties was $18.2 million, well below the threshold of $24.3 million which would trigger FEMA review.
"Ethics chief under scrutiny - State inspector general launches investigation of Herbert Teitelbaum related to travel records probe"
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published: Saturday, September 20, 2008
The state inspector general is investigating the executive director of the state Commission on Public Integrity about leaks in a probe of the Spitzer administration, according to a state official.
Herbert Teitelbaum is the target of the probe concerning Albany County District Attorney David Soares' allegations that he leaked information about Soares' investigation into the former administration's collection of then-Senate Majority Leader Joseph L. Bruno's travel records.
The source said the prosecutor believed Teitelbaum was passing on confidential information through a third party to Spitzer's aides.
Soares made similar accusations to the commission earlier this year in letters previously obtained by the Times Union.
Soares took testimony on the matter, but did not release any of those records among the 8,000 pages of material made public after he completed his investigation in July.
The Times Union filed a Freedom of Information Law request for any testimony concerning Teitelbaum; it was rejected by the district attorney's office this month on the grounds that the documents are needed for "law enforcement investigations and judicial proceedings," and would identify a confidential source and confidential information.
The investigation may be the reason Meave Tooher, the commission's former lead investigator, hasn't started what she said seven weeks ago would be her new job with the inspector general.
Tooher announced she was leaving the commission at the end of July, and still hasn't shown up for work at the inspector general's office.
"I really don't have any comment," she said this week when asked about her job status.
Inspector general spokeswoman Kate Gurnett wouldn't discuss Tooher's employment and wouldn't confirm the probe of Tooher's former boss.
A veteran attorney and investigative counsel, Tooher was hired away by the inspector general, said Walter Ayres, a spokesman for the commission.
Tooher played a large role in investigating and conducting interviews during the commission's own probe of the travel records matter.
Ayres has said that a letter Soares wrote to the commission detailing his suspicions about Teitelbaum compromising the district attorney's probe was reviewed by commissioners.
The commission expressed its faith in Teitelbaum's integrity in the wake of the review, he said.
Ayres said Friday the commission stands by Teitelbaum and he had no comment on whether the inspector general is investigating.
In the FOIL denial, the district attorney would not release any testimony taken from Spitzer aide Lloyd Constantine or Robert Hermann -- director of the Governor's Office of Regulatory Reform -- that concerned Teitelbaum.
Constantine has declined to discuss the matter, citing lawyer-client privilege.
Hermann referred a reporter to Gov. David Paterson's office.
Errol Cockfield, the governor's press secretary, referred inquiries to Soares, whose office wouldn't comment.
James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published: Saturday, September 20, 2008
The state inspector general is investigating the executive director of the state Commission on Public Integrity about leaks in a probe of the Spitzer administration, according to a state official.
Herbert Teitelbaum is the target of the probe concerning Albany County District Attorney David Soares' allegations that he leaked information about Soares' investigation into the former administration's collection of then-Senate Majority Leader Joseph L. Bruno's travel records.
The source said the prosecutor believed Teitelbaum was passing on confidential information through a third party to Spitzer's aides.
Soares made similar accusations to the commission earlier this year in letters previously obtained by the Times Union.
Soares took testimony on the matter, but did not release any of those records among the 8,000 pages of material made public after he completed his investigation in July.
The Times Union filed a Freedom of Information Law request for any testimony concerning Teitelbaum; it was rejected by the district attorney's office this month on the grounds that the documents are needed for "law enforcement investigations and judicial proceedings," and would identify a confidential source and confidential information.
The investigation may be the reason Meave Tooher, the commission's former lead investigator, hasn't started what she said seven weeks ago would be her new job with the inspector general.
Tooher announced she was leaving the commission at the end of July, and still hasn't shown up for work at the inspector general's office.
"I really don't have any comment," she said this week when asked about her job status.
Inspector general spokeswoman Kate Gurnett wouldn't discuss Tooher's employment and wouldn't confirm the probe of Tooher's former boss.
A veteran attorney and investigative counsel, Tooher was hired away by the inspector general, said Walter Ayres, a spokesman for the commission.
Tooher played a large role in investigating and conducting interviews during the commission's own probe of the travel records matter.
Ayres has said that a letter Soares wrote to the commission detailing his suspicions about Teitelbaum compromising the district attorney's probe was reviewed by commissioners.
The commission expressed its faith in Teitelbaum's integrity in the wake of the review, he said.
Ayres said Friday the commission stands by Teitelbaum and he had no comment on whether the inspector general is investigating.
In the FOIL denial, the district attorney would not release any testimony taken from Spitzer aide Lloyd Constantine or Robert Hermann -- director of the Governor's Office of Regulatory Reform -- that concerned Teitelbaum.
Constantine has declined to discuss the matter, citing lawyer-client privilege.
Hermann referred a reporter to Gov. David Paterson's office.
Errol Cockfield, the governor's press secretary, referred inquiries to Soares, whose office wouldn't comment.
James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.
"Investigation showed local union's tangled ties - But questions remain over handling of bombing case"
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published: Sunday, September 21, 2008
ALBANY -- The plan to firebomb an Albany concrete plant came together five years ago.
It was late at night, and a pair of beefy men inside the former Mad River tavern on North Pearl Street asked a bartender for a pair of rubber gloves and some rags before slipping quietly out the door.
They climbed into a new Mercury SUV, which was owned by their laborers union, and bought a 12-pack of Coors Light in bottles.
Then they drove to a friend's house to get a can of gasoline.
That spring, their union's ongoing war with the concrete company had reached a boiling point at a construction site in Bethlehem where a Wal-Mart store was being built.
Along the roads feeding the site, Local 190 members jumped on the hoods of trucks and shouted obscenities through bullhorns at the nervous drivers who dared to cross their picket lines.
Police records show that town cops had warned them more than once to tone it down before finally arresting the union's maverick former president, Ramsis Berghela, on charges of disorderly conduct, police records show.
But beyond the public protests, at least three union members connected to Local 190 were planning a more serious strike.
No one was injured during the arson attack that night in May 2003.
But it led to a federal grand jury investigation of local organized labor with the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives secretly probing Local 190's connections to powerful politicians, its campaign donations, lucrative government contracts and the union's relationships with biker gangs and organized crime figures from New York City to Rhode Island.
Court records and people familiar with the federal grand jury proceedings say the investigation focused on whether the firebombing was authorized by top labor union officials, including Sam Fresina, a laborers' district council business manager, or his son, Anthony, the business manager of Local 190.
The senior Fresina is a longtime friend of Albany Mayor Jerry Jennings, and has supported the mayor's political campaigns for 15 years.
In the end, the federal investigation failed to implicate anyone other than three men who admitted taking part in the arson.
The Fresinas have never been accused of wrongdoing in the case.
Still, questions linger about the handling of a case that languished for years in the U.S. Attorney's office.
Also, John Peters, a 37-year-old labor organizer from Long Island who masterminded the arson, said his efforts to cooperate with prosecutors were ignored.
When Peters was sentenced in May, his attorney said his client failed to get more credit for cooperating because federal prosecutors had lost interest in the case and then declined to even meet with Peters and learn what he knew.
"We found ourselves in the position of somebody who was trying to play fetch with a dead dog," his attorney, Terence L. Kindlon, told a federal judge as Peters was sentenced to a year and a day in federal prison.
The man behind the wheel of the gray SUV that night was Michael Kwarta, 32, a former bouncer from Schenectady who served as a labor organizer and sergeant-at-arms for Local 190.
Kwarta dialed his cellphone as he left the Mad River bar with Peters, then a $140,000-a-year organizer for Local 190's umbrella group, the Laborers International Union of North America (LIUNA).
The call woke up Chris Horn, a 29-year-old local prizefighter who'd recently joined the labor union and was viewed by some laborers as a glorified chauffeur and bodyguard.
Horn scrambled out of bed and drove across Albany to meet Kwarta and Peters.
When they arrived at the concrete plant, Horn, who was sober, climbed out of the SUV clutching two Molotov cocktails, according to court records.
The first bottle crashed against the concrete company's operations trailer and fizzled.
But the second bottle exploded.
As they sped away, the three men saw flames shooting up in the darkness.
Jennings said he recalled being shocked when he learned of the firebombing at the former Tri-Cities Aggregates plant near the Port of Albany.
The mayor, like many of the area's top politicians, including former Senate Majority Leader Joseph L. Bruno, has received political support from the labor union over the years.
Many of the local's members also have moved into city labor jobs after retiring from Local 190.
The union, based in Glenmont, has some 1,300 members.
Four years ago, Jennings demonstrated his close allegiance to the Fresinas when he left City Hall to attend a union election and help lobby support for Anthony Fresina, who was facing a heated challenge for his business manager post from Berghela.
Fresina's challengers complained that it was inappropriate for the mayor to attend, and a fight broke out.
The mayor quickly left, they said.
In an interview Friday, Jennings initially said he was "not that close to the group or Mr. (Sam) Fresina."
When pressed, Jennings, who was briefly a member of Local 190 as a younger man, then said: "I've been friends with the Fresinas for a long time."
Jennings said he doesn't believe the Fresinas would have condoned the attack.
"I would not expect that out of these guys," the mayor said.
"I'm a fervent union supporter but we expect everyone to play by the rules."
Despite their anger-filled protests, the firebombing sent shivers through the union's leadership.
"We were petrified," the former union official said in the interview last year.
And during his testimony before a federal grand jury, he added, he was peppered with questions about whether Sam or Anthony Fresina were involved.
The former official, and Berghela, who waged a failed election bid against Anthony Fresina for business manager in 2004, both claim that the union's former longtime attorney, Eugene Devine, told Local 190's leaders after the firebombing to keep their mouths shut.
"We sat there and discussed it," Berghela said.
"Gus Devine knew all about it but he knew about it after the fact."
"... (Devine said) don't say nothing to nobody."
"Anybody contacts you, you contact me."
Devine was elected a state Supreme Court justice in 2006.
During his race for the bench, he received political campaign support from Local 190.
He declined to comment when asked about Berghela's allegations.
Devine was among many Local 190 associates or officers who were subpoenaed by the federal grand jury and questioned about the union's dealings and the circumstances of the firebombing, according to two people familiar with the matter.
Sam Fresina and Anthony Fresina both declined to be interviewed for this article.
The attorney for their union, James E. Long, issued a statement Saturday saying "Sam and Anthony Fresina have fully cooperated with the United States Attorney's office in their investigation of this matter, going as far as testifying before the grand jury in this case."
Long said the two men "had absolutely nothing to do with this matter before or after the incident."
On May 12, 2003, three days after the firebombing, Anthony Fresina spoke cryptically about the unrest at a union meeting.
"Anthony says there were some allegations made about Local 190 and has decided to pull the picket until further notice," according to minutes of the meeting obtained by the Times Union.
"Anthony thanked all those who participated in the 9W picket."
Berghela, who was one of the first people questioned by detectives, said the Fresinas once filed labor charges against him for using a union credit card to pay a $120 bar bill.
It was petty, he said, noting that Kwarta kept his union job for nearly five years after the bombing and until shortly before he pleaded guilty last May.
Kwarta is scheduled to be sentenced on Friday.
Horn also pleaded guilty and was sentenced last December, receiving six months home confinement and three years of probation.
Federal court documents unsealed recently show that Horn became an informant in this and other investigations.
"Horn has testified in the grand jury, as well as provided significant information regarding the operation of the union, and assisted with our efforts to track the genesis of the bombing back to union leaders," former assistant United States Attorney James C. Woods wrote in a sealed memorandum to a federal judge last year.
"It was a tremendously illegal act which in many ways, you are very, very fortunate that no one was injured and no one was killed, which would have resulted in you perhaps spending most of the rest of your life in prison," U.S. District Judge David Hurd told Horn at his sentencing.
Horn briefly moved to Virginia a few years ago in a witness-relocation program funded by the ATF.
He showed no emotion during his sentencing last December, chatting with an attorney about his boxing career as his girlfriend sat in the front row of the nearly empty courtroom.
Horn is now a professional boxer who lives in the Albany area.
Throughout the investigation, there was an undercurrent of mob-related fears and at least two witnesses who testified in front of the federal grand jury were offered enrollment in the witness protection program by government prosecutors.
Stanley Segal, Horn's attorney, keyed in on the union's alleged propensity for violence at Horn's sentencing, telling the judge his client did what he was told out of "fear" and "stupidity."
"He was concerned for his safety and well-being," Segal told the judge.
"He was aware of the fact that one or both of the individuals had, on occasions, carried a firearm."
Brendan J. Lyons can be reached by e-mail at blyons@timesunion.com.
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published: Sunday, September 21, 2008
ALBANY -- The plan to firebomb an Albany concrete plant came together five years ago.
It was late at night, and a pair of beefy men inside the former Mad River tavern on North Pearl Street asked a bartender for a pair of rubber gloves and some rags before slipping quietly out the door.
They climbed into a new Mercury SUV, which was owned by their laborers union, and bought a 12-pack of Coors Light in bottles.
Then they drove to a friend's house to get a can of gasoline.
That spring, their union's ongoing war with the concrete company had reached a boiling point at a construction site in Bethlehem where a Wal-Mart store was being built.
Along the roads feeding the site, Local 190 members jumped on the hoods of trucks and shouted obscenities through bullhorns at the nervous drivers who dared to cross their picket lines.
Police records show that town cops had warned them more than once to tone it down before finally arresting the union's maverick former president, Ramsis Berghela, on charges of disorderly conduct, police records show.
But beyond the public protests, at least three union members connected to Local 190 were planning a more serious strike.
No one was injured during the arson attack that night in May 2003.
But it led to a federal grand jury investigation of local organized labor with the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives secretly probing Local 190's connections to powerful politicians, its campaign donations, lucrative government contracts and the union's relationships with biker gangs and organized crime figures from New York City to Rhode Island.
Court records and people familiar with the federal grand jury proceedings say the investigation focused on whether the firebombing was authorized by top labor union officials, including Sam Fresina, a laborers' district council business manager, or his son, Anthony, the business manager of Local 190.
The senior Fresina is a longtime friend of Albany Mayor Jerry Jennings, and has supported the mayor's political campaigns for 15 years.
In the end, the federal investigation failed to implicate anyone other than three men who admitted taking part in the arson.
The Fresinas have never been accused of wrongdoing in the case.
Still, questions linger about the handling of a case that languished for years in the U.S. Attorney's office.
Also, John Peters, a 37-year-old labor organizer from Long Island who masterminded the arson, said his efforts to cooperate with prosecutors were ignored.
When Peters was sentenced in May, his attorney said his client failed to get more credit for cooperating because federal prosecutors had lost interest in the case and then declined to even meet with Peters and learn what he knew.
"We found ourselves in the position of somebody who was trying to play fetch with a dead dog," his attorney, Terence L. Kindlon, told a federal judge as Peters was sentenced to a year and a day in federal prison.
The man behind the wheel of the gray SUV that night was Michael Kwarta, 32, a former bouncer from Schenectady who served as a labor organizer and sergeant-at-arms for Local 190.
Kwarta dialed his cellphone as he left the Mad River bar with Peters, then a $140,000-a-year organizer for Local 190's umbrella group, the Laborers International Union of North America (LIUNA).
The call woke up Chris Horn, a 29-year-old local prizefighter who'd recently joined the labor union and was viewed by some laborers as a glorified chauffeur and bodyguard.
Horn scrambled out of bed and drove across Albany to meet Kwarta and Peters.
When they arrived at the concrete plant, Horn, who was sober, climbed out of the SUV clutching two Molotov cocktails, according to court records.
The first bottle crashed against the concrete company's operations trailer and fizzled.
But the second bottle exploded.
As they sped away, the three men saw flames shooting up in the darkness.
Jennings said he recalled being shocked when he learned of the firebombing at the former Tri-Cities Aggregates plant near the Port of Albany.
The mayor, like many of the area's top politicians, including former Senate Majority Leader Joseph L. Bruno, has received political support from the labor union over the years.
Many of the local's members also have moved into city labor jobs after retiring from Local 190.
The union, based in Glenmont, has some 1,300 members.
Four years ago, Jennings demonstrated his close allegiance to the Fresinas when he left City Hall to attend a union election and help lobby support for Anthony Fresina, who was facing a heated challenge for his business manager post from Berghela.
Fresina's challengers complained that it was inappropriate for the mayor to attend, and a fight broke out.
The mayor quickly left, they said.
In an interview Friday, Jennings initially said he was "not that close to the group or Mr. (Sam) Fresina."
When pressed, Jennings, who was briefly a member of Local 190 as a younger man, then said: "I've been friends with the Fresinas for a long time."
Jennings said he doesn't believe the Fresinas would have condoned the attack.
"I would not expect that out of these guys," the mayor said.
"I'm a fervent union supporter but we expect everyone to play by the rules."
Despite their anger-filled protests, the firebombing sent shivers through the union's leadership.
"We were petrified," the former union official said in the interview last year.
And during his testimony before a federal grand jury, he added, he was peppered with questions about whether Sam or Anthony Fresina were involved.
The former official, and Berghela, who waged a failed election bid against Anthony Fresina for business manager in 2004, both claim that the union's former longtime attorney, Eugene Devine, told Local 190's leaders after the firebombing to keep their mouths shut.
"We sat there and discussed it," Berghela said.
"Gus Devine knew all about it but he knew about it after the fact."
"... (Devine said) don't say nothing to nobody."
"Anybody contacts you, you contact me."
Devine was elected a state Supreme Court justice in 2006.
During his race for the bench, he received political campaign support from Local 190.
He declined to comment when asked about Berghela's allegations.
Devine was among many Local 190 associates or officers who were subpoenaed by the federal grand jury and questioned about the union's dealings and the circumstances of the firebombing, according to two people familiar with the matter.
Sam Fresina and Anthony Fresina both declined to be interviewed for this article.
The attorney for their union, James E. Long, issued a statement Saturday saying "Sam and Anthony Fresina have fully cooperated with the United States Attorney's office in their investigation of this matter, going as far as testifying before the grand jury in this case."
Long said the two men "had absolutely nothing to do with this matter before or after the incident."
On May 12, 2003, three days after the firebombing, Anthony Fresina spoke cryptically about the unrest at a union meeting.
"Anthony says there were some allegations made about Local 190 and has decided to pull the picket until further notice," according to minutes of the meeting obtained by the Times Union.
"Anthony thanked all those who participated in the 9W picket."
Berghela, who was one of the first people questioned by detectives, said the Fresinas once filed labor charges against him for using a union credit card to pay a $120 bar bill.
It was petty, he said, noting that Kwarta kept his union job for nearly five years after the bombing and until shortly before he pleaded guilty last May.
Kwarta is scheduled to be sentenced on Friday.
Horn also pleaded guilty and was sentenced last December, receiving six months home confinement and three years of probation.
Federal court documents unsealed recently show that Horn became an informant in this and other investigations.
"Horn has testified in the grand jury, as well as provided significant information regarding the operation of the union, and assisted with our efforts to track the genesis of the bombing back to union leaders," former assistant United States Attorney James C. Woods wrote in a sealed memorandum to a federal judge last year.
"It was a tremendously illegal act which in many ways, you are very, very fortunate that no one was injured and no one was killed, which would have resulted in you perhaps spending most of the rest of your life in prison," U.S. District Judge David Hurd told Horn at his sentencing.
Horn briefly moved to Virginia a few years ago in a witness-relocation program funded by the ATF.
He showed no emotion during his sentencing last December, chatting with an attorney about his boxing career as his girlfriend sat in the front row of the nearly empty courtroom.
Horn is now a professional boxer who lives in the Albany area.
Throughout the investigation, there was an undercurrent of mob-related fears and at least two witnesses who testified in front of the federal grand jury were offered enrollment in the witness protection program by government prosecutors.
Stanley Segal, Horn's attorney, keyed in on the union's alleged propensity for violence at Horn's sentencing, telling the judge his client did what he was told out of "fear" and "stupidity."
"He was concerned for his safety and well-being," Segal told the judge.
"He was aware of the fact that one or both of the individuals had, on occasions, carried a firearm."
Brendan J. Lyons can be reached by e-mail at blyons@timesunion.com.
"North Greenbush hearing tonight could be crowded"
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 2:22 p.m., Thursday, September 25, 2008
NORTH GREENBUSH - A public hearing tonight in town hall could be a crowded affair.
Officials are proposing the creation a $9.5 million water district that will cost taxpayers in the district about $1,174 a year if they tap into it.
Whether customers covered by the district want to hook into the system or not, the project still will cost each about $845 a year in basic taxes for debt service costs.
The water services plan covers 850 to 1,000 parcels on Arbor Drive and Glenmore Road and in the Hills of North Greenbush subdivision and Defreestville.
If approved it will be the final water district needed to complete coverage of the town of 10,805 residents.
The project comes on the heels of the yet-to-be-completed Water District 14, which has caused months of controversy and produced a state comptrolers office audit critical of town board management practices involving its construction.
The Water District 14 project costs exceeded both its original $6.4 million contract cost and its $7.1 million bond expense.
The board recently approved a measure to provide the money to finish the district, which will be paid for by taxes from the entire town.
The public hearing will be held at 6 p.m. in Town Hall, 2 Douglas St., Wynantskill.
Here are the exact boundaries of the new district:
All parcels along North Greenbush Road (between the East Greenbush Town Line north to NYS Route 43), which are not included in the legally formed boundaries of existing Water Districts No. 8, 12, 16 or 17.
All parcels along Agway Drive, Thompson Court, Washington Avenue Extension, Bloomingrove Drive South, Van Alstyne Drive, Rock Cut Road, Scythe Tree Lane, Red Oak Lane, Miller Road, Mara Drive, Olga Lane, Westernview Terrace, Van Tassel Drive, Van Winkle Drive, Van Leuvan Drive South, Van Leuvan Drive East, Van Dyke Drive South, Brinker Drive South, Forest Meadows Boulevard, which are not included in the legally formed boundaries of existing Water Districts No. 7, 8, 12, 16 or 17.
All parcels along Peck Road, Aries View Drive, Geiser Road, Morning Star Drive, Mary View Drive, NYS Route 43, Rossi Way, Brackwyck Drive, Salisbury Road, Lape Road, Deerhaven Lane, Best Road, Morner Road, Higgins Road, Mammoth Spring Road, which are not included in the legally formed boundaries of existing Water Districts No. 12, 13, or 14.
All parcels along Snyders Lake Road, Sliters Lane, Mohameds Farm Way, Thomas Way, Windy Way, which are not included in the legally formed boundaries of existing Water Districts No. 12, 13, or 14.
All parcels included in the Hills of North Greenbush Subdivision, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels included in the Ridgewood Drive Subdivision, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels along Pershing Avenue, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels located along Glenmore Road (west of NYS Route 4), which are not included in the legally formed boundaries of existing Water Districts No. 3 or 4.
All parcels along Glenwood Road (south of Glenmore Road), which are not included in the legally formed boundaries of existing Water Districts No. 3 or 4.
All parcels along North Greenbush Road (between the Troy City Line and Winter Street Extension), which are not included in the legally formed boundaries of existing Water Districts No. 3, 4, 6 or 11.
All parcels along Williams Road, which are not included in the legally formed boundaries of existing Water Districts No. 3, 4 or 6.
All parcels along Mazoway Avenue and Catherine Avenue, which are not included in the legally formed boundaries of existing Water Districts No. 3 or 6.
All parcels along Highland Acres, Midland Road, Woodland Road and Arbor Drive, which are not included in the legally formed boundaries of existing Water Districts No. 3, 4, 6 or 11.
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 2:22 p.m., Thursday, September 25, 2008
NORTH GREENBUSH - A public hearing tonight in town hall could be a crowded affair.
Officials are proposing the creation a $9.5 million water district that will cost taxpayers in the district about $1,174 a year if they tap into it.
Whether customers covered by the district want to hook into the system or not, the project still will cost each about $845 a year in basic taxes for debt service costs.
The water services plan covers 850 to 1,000 parcels on Arbor Drive and Glenmore Road and in the Hills of North Greenbush subdivision and Defreestville.
If approved it will be the final water district needed to complete coverage of the town of 10,805 residents.
The project comes on the heels of the yet-to-be-completed Water District 14, which has caused months of controversy and produced a state comptrolers office audit critical of town board management practices involving its construction.
The Water District 14 project costs exceeded both its original $6.4 million contract cost and its $7.1 million bond expense.
The board recently approved a measure to provide the money to finish the district, which will be paid for by taxes from the entire town.
The public hearing will be held at 6 p.m. in Town Hall, 2 Douglas St., Wynantskill.
Here are the exact boundaries of the new district:
All parcels along North Greenbush Road (between the East Greenbush Town Line north to NYS Route 43), which are not included in the legally formed boundaries of existing Water Districts No. 8, 12, 16 or 17.
All parcels along Agway Drive, Thompson Court, Washington Avenue Extension, Bloomingrove Drive South, Van Alstyne Drive, Rock Cut Road, Scythe Tree Lane, Red Oak Lane, Miller Road, Mara Drive, Olga Lane, Westernview Terrace, Van Tassel Drive, Van Winkle Drive, Van Leuvan Drive South, Van Leuvan Drive East, Van Dyke Drive South, Brinker Drive South, Forest Meadows Boulevard, which are not included in the legally formed boundaries of existing Water Districts No. 7, 8, 12, 16 or 17.
All parcels along Peck Road, Aries View Drive, Geiser Road, Morning Star Drive, Mary View Drive, NYS Route 43, Rossi Way, Brackwyck Drive, Salisbury Road, Lape Road, Deerhaven Lane, Best Road, Morner Road, Higgins Road, Mammoth Spring Road, which are not included in the legally formed boundaries of existing Water Districts No. 12, 13, or 14.
All parcels along Snyders Lake Road, Sliters Lane, Mohameds Farm Way, Thomas Way, Windy Way, which are not included in the legally formed boundaries of existing Water Districts No. 12, 13, or 14.
All parcels included in the Hills of North Greenbush Subdivision, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels included in the Ridgewood Drive Subdivision, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels along Pershing Avenue, which are not included in the legally formed boundaries of existing Water Districts No. 13 or 14.
All parcels located along Glenmore Road (west of NYS Route 4), which are not included in the legally formed boundaries of existing Water Districts No. 3 or 4.
All parcels along Glenwood Road (south of Glenmore Road), which are not included in the legally formed boundaries of existing Water Districts No. 3 or 4.
All parcels along North Greenbush Road (between the Troy City Line and Winter Street Extension), which are not included in the legally formed boundaries of existing Water Districts No. 3, 4, 6 or 11.
All parcels along Williams Road, which are not included in the legally formed boundaries of existing Water Districts No. 3, 4 or 6.
All parcels along Mazoway Avenue and Catherine Avenue, which are not included in the legally formed boundaries of existing Water Districts No. 3 or 6.
All parcels along Highland Acres, Midland Road, Woodland Road and Arbor Drive, which are not included in the legally formed boundaries of existing Water Districts No. 3, 4, 6 or 11.
AND NEW YORK GOVERNOR DAVID PATERSON SAYS THE $700 BILLION BUSHIAN BAIL-OUT IS NOT ENOUGH ...
THE $700 BILLION IS JUST A STARTER SAYS OUR DAVID ...
And so ...
"Paterson sees slow rebound for Wall Street, nation"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:15 p.m., Thursday, September 25, 2008
ALBANY -- New York Gov. David Paterson plans to meet with legislative leaders next week in a public session to deal with losses of tax revenue and jobs from Wall Street's meltdown.
The public leaders' meeting Oct. 3 in Manhattan will be days after the administration receives the second quarter fiscal report that is expected to show steep declines in revenues from a string of failures in the financial sector.
Wall Street revenues -- business taxes and income taxes -- account for about a fifth of state revenues.
The meeting doesn't mean the Legislature would return to act before Nov. 4, when every seat is up for election.
Such sessions while lawmakers are busy campaigning are rare, although the Legislature frequently returns to session in December.
The regular session runs from January to June.
"Anything is possible," said John McArdle, spokesman for Senate Majority Leader Dean Skelos, a Long Island Republican.
"I'm sure that will be a topic of discussion."
Assembly Speaker Sheldon Silver, a Manhattan Democrat, will also attend the meeting.
"The speaker has said he's prepared to return to session at any time if there is a need to do so," said Silver spokesman Dan Weiller.
"We have already taken extraordinary action to contain state spending, but the events that unfolded in our state and nation over the last two weeks have created an urgent need for a reassessment of the current year's budget and the planning for next year's," Paterson said.
"Now is the time for us to agree on a plan of action to be implemented before year's end," Paterson said.
Earlier this year, the Legislature and Paterson agreed to cut $427 million from the $120 billion budget, but Paterson has said Wall Street's losses may have already wiped out that savings made to balance the budget.
A deficit of more than $5 billion is forecast for the fiscal year beginning April 1.
Earlier Thursday, Paterson said the proposed $700 billion bailout will inevitably need to grow and a full recovery from the ongoing crisis in financial markets could take 18 months to two years to play out.
Paterson also warned Thursday that federal policies and practices must change to avert future disaster.
He blamed the last two administrations in Washington for failing to appropriately regulate banking and the housing market since the 1990s.
"I think that, initially, the $700 billion -- which I think in the end will be $1 trillion -- will help restore confidence," Paterson told CNBC's "Squawk Box."
The National Conference of State Legislatures also believes a recovery in the states won't be fully felt until the 2010 budgets, even if the bailout is approved.
"It's not a pretty picture," said Michael Bird, a federal affairs staffer for NCSL.
On Thursday, key lawmakers in Washington agreed on a multibillion-dollar bailout plan for Wall Street aimed at staving off a national economic catastrophe.
THE $700 BILLION IS JUST A STARTER SAYS OUR DAVID ...
And so ...
"Paterson sees slow rebound for Wall Street, nation"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:15 p.m., Thursday, September 25, 2008
ALBANY -- New York Gov. David Paterson plans to meet with legislative leaders next week in a public session to deal with losses of tax revenue and jobs from Wall Street's meltdown.
The public leaders' meeting Oct. 3 in Manhattan will be days after the administration receives the second quarter fiscal report that is expected to show steep declines in revenues from a string of failures in the financial sector.
Wall Street revenues -- business taxes and income taxes -- account for about a fifth of state revenues.
The meeting doesn't mean the Legislature would return to act before Nov. 4, when every seat is up for election.
Such sessions while lawmakers are busy campaigning are rare, although the Legislature frequently returns to session in December.
The regular session runs from January to June.
"Anything is possible," said John McArdle, spokesman for Senate Majority Leader Dean Skelos, a Long Island Republican.
"I'm sure that will be a topic of discussion."
Assembly Speaker Sheldon Silver, a Manhattan Democrat, will also attend the meeting.
"The speaker has said he's prepared to return to session at any time if there is a need to do so," said Silver spokesman Dan Weiller.
"We have already taken extraordinary action to contain state spending, but the events that unfolded in our state and nation over the last two weeks have created an urgent need for a reassessment of the current year's budget and the planning for next year's," Paterson said.
"Now is the time for us to agree on a plan of action to be implemented before year's end," Paterson said.
Earlier this year, the Legislature and Paterson agreed to cut $427 million from the $120 billion budget, but Paterson has said Wall Street's losses may have already wiped out that savings made to balance the budget.
A deficit of more than $5 billion is forecast for the fiscal year beginning April 1.
Earlier Thursday, Paterson said the proposed $700 billion bailout will inevitably need to grow and a full recovery from the ongoing crisis in financial markets could take 18 months to two years to play out.
Paterson also warned Thursday that federal policies and practices must change to avert future disaster.
He blamed the last two administrations in Washington for failing to appropriately regulate banking and the housing market since the 1990s.
"I think that, initially, the $700 billion -- which I think in the end will be $1 trillion -- will help restore confidence," Paterson told CNBC's "Squawk Box."
The National Conference of State Legislatures also believes a recovery in the states won't be fully felt until the 2010 budgets, even if the bailout is approved.
"It's not a pretty picture," said Michael Bird, a federal affairs staffer for NCSL.
On Thursday, key lawmakers in Washington agreed on a multibillion-dollar bailout plan for Wall Street aimed at staving off a national economic catastrophe.
"NY lawmaker disciplined for intern relationship"
By VALERIE BAUMAN, Associated Press
Last updated: 4:46 p.m., Friday, September 26, 2008
ALBANY -- New York Assembly Speaker Sheldon Silver is banning a Buffalo lawmaker from participating in intern and mentoring programs after the Assembly's ethics committee found he had an inappropriate personal relationship with an intern.
The Ethics and Guidance Committee said in its report that Democrat Sam Hoyt had a relationship with a 23-year-old Assembly intern that started in 2003 and continued through early 2005.
The Assembly instituted a policy prohibiting such fraternization in May 2004 after earlier scandals.
The allegations against Hoyt surfaced when a western New York political blogger accused him of exchanging sexually explicit e-mails during an extramarital affair with a legislative employee.
"I accept the committee's findings and once again apologize to my family and the people of the 144th Assembly District."
"I look forward to putting this matter behind me and to continuing my work focusing on the enormous problems facing my district and the entire State of New York," Hoyt said in a statement Friday.
Hoyt, who faces a re-election challenge this year, avoided more serious consequences, including a formal censure, or being forced to step down from his position as chair of the local governments committee -- a position that adds $15,000 a year to his $79,500 base salary.
The 46-year-old Democrat had denied violating the fraternization rule and blamed the accusation on political opponents resorting to "the lowest tactics."
The ethics committee noted that the woman Hoyt had a relationship with was no longer an intern when the policy was adopted in 2004.
In the e-mails, one of which was sent by "samhoyt" to "blueskies588," the author describes wanting to kiss and cuddle her.
"I chose you over Buffalo. flying back tonight!" according to an e-mail dated June 9, 2004.
Another 2003 e-mail contained a long list:
"I wish ... i could see you do that little cheerleader move ... could be kissing that perfect stomach of yours."
It closed: "i miss you so much. xoxo."
After answering questions before the ethics committee earlier this week, Hoyt said he expected his name to be cleared.
"It is absolutely unacceptable for any Assembly member to behave in this manner, or to do anything else that damages the integrity of the intern program," Silver said Friday.
By VALERIE BAUMAN, Associated Press
Last updated: 4:46 p.m., Friday, September 26, 2008
ALBANY -- New York Assembly Speaker Sheldon Silver is banning a Buffalo lawmaker from participating in intern and mentoring programs after the Assembly's ethics committee found he had an inappropriate personal relationship with an intern.
The Ethics and Guidance Committee said in its report that Democrat Sam Hoyt had a relationship with a 23-year-old Assembly intern that started in 2003 and continued through early 2005.
The Assembly instituted a policy prohibiting such fraternization in May 2004 after earlier scandals.
The allegations against Hoyt surfaced when a western New York political blogger accused him of exchanging sexually explicit e-mails during an extramarital affair with a legislative employee.
"I accept the committee's findings and once again apologize to my family and the people of the 144th Assembly District."
"I look forward to putting this matter behind me and to continuing my work focusing on the enormous problems facing my district and the entire State of New York," Hoyt said in a statement Friday.
Hoyt, who faces a re-election challenge this year, avoided more serious consequences, including a formal censure, or being forced to step down from his position as chair of the local governments committee -- a position that adds $15,000 a year to his $79,500 base salary.
The 46-year-old Democrat had denied violating the fraternization rule and blamed the accusation on political opponents resorting to "the lowest tactics."
The ethics committee noted that the woman Hoyt had a relationship with was no longer an intern when the policy was adopted in 2004.
In the e-mails, one of which was sent by "samhoyt" to "blueskies588," the author describes wanting to kiss and cuddle her.
"I chose you over Buffalo. flying back tonight!" according to an e-mail dated June 9, 2004.
Another 2003 e-mail contained a long list:
"I wish ... i could see you do that little cheerleader move ... could be kissing that perfect stomach of yours."
It closed: "i miss you so much. xoxo."
After answering questions before the ethics committee earlier this week, Hoyt said he expected his name to be cleared.
"It is absolutely unacceptable for any Assembly member to behave in this manner, or to do anything else that damages the integrity of the intern program," Silver said Friday.
"Spitzer confronts a life without political power - Six months after quitting in disgrace as governor, ex-star weighs past, future"
By DANNY HAKIM, New York Times
First published: Sunday, September 28, 2008
ALBANY -- Former Gov. Eliot Spitzer was reading his newspaper on a recent Thursday morning when he was jolted by a comment made by his successor, David Paterson.
In the 22nd paragraph of a New York Times article on Aug. 21, Paterson said that aides to Spitzer had lacked experience in Albany, and added that the Spitzer administration's management approach sometimes "just didn't work."
Spitzer grew upset, according to a senior aide to Paterson and another official.
He picked up the phone, reached a Paterson aide, demanded a public apology from the governor and "issued threats, veiled and unveiled" against Paterson, said aide, who insisted on anonymity because he did not want to anger either man.
No public apology was offered; Spitzer and Paterson have not spoken since June.
Six months have passed since Spitzer's breathtakingly quick exodus from office after being implicated as a patron of a prostitution ring.
One day, Eliot Laurence Spitzer was a national figure some saw destined for the White House; the next he was a target of ridicule.
Now, in interviews with friends and former aides, and through e-mail messages obtained through a Freedom of Information request by The New York Times, a picture emerges of Spitzer trying to focus on the future and his family, with the threat of criminal charges still hanging over him.
He is working at the real estate firm owned by his ailing, 84-year-old father, and has discussed with friends whether to undertake charity, environmental or free legal work to try to rehabilitate his image.
But despite his efforts to move forward, Spitzer can be moved by flashes of anger, especially when it comes to what he views as his achievements and legacy, and he has faced an adjustment as he confronts life without the power he once wielded.
On Sept. 18, approached by a reporter outside his father's Fifth Avenue office, he lamented the federal rescue of American International Group, the giant insurer, and defended the aggressive steps he had taken to force the ouster of its chairman, Maurice R. Greenberg, in 2005 amid an accounting scandal.
He said his political demise shouldn't diminish his achievements.
"I committed my sins, and I've paid for them," he said.
Then he added, referring to AIG: "But I was right."
Asked how he was doing, he shrugged and responded, with resignation and a degree of joylessness: "Making money is making money," before heading inside the building.
He declined to speak further.
Spitzer's daily routine, once scrutinized by a roving pack of reporters, aides and cameras, has taken on a more quotidian feel.
He sometimes jogs in Central Park before work, buys his own cup of coffee, drops his daughters at the school bus and hails his own cab to the Fifth Avenue office building that houses his family's real estate business.
The glare of the cameras has been replaced with fleeting moments of recognition in an Upper East Side neighborhood.
Sometimes people offer him supportive words or smiles.
Construction workers snicker at him, and cabdrivers take pictures of him on their cell phones.
It wasn't like this when the news first broke in March.
Then there were gestures of comfort from the powerful inhabitants of Spitzer's world.
Former Vice President Al Gore reached out to him, as did Gov. Bill Richardson of New Mexico, according to e-mail records.
Ethel Kennedy, widow of Sen. Robert F. Kennedy, relayed to the governor a quotation to lift his spirits.
"Our greatest glory consists not in never falling, but in rising every time we fall," Kennedy wrote, adding: "See you back on top."
Spitzer was so moved by the words that when he resigned a few days later, he used them in his short resignation speech.
The same week, Spitzer sent an e-mail message to a top aide describing the personal turmoil he had brought to his family.
"We are surviving," he wrote.
"Silda has tough moments."
"My job now is to take care of her."
"I have done more than my share of damage."
Assemblyman Mark Weprin, a Queens Democrat who has been close to the Spitzers, recalls the former governor telling him at the time:
"It's been horrible living a Greek tragedy."
He added: "But what am I'm going to do?"
At 49, Spitzer is plotting a second act, though his life will be in limbo until his legal troubles are resolved.
Over the last two months, four of those charged in the prostitution ring have pleaded guilty, including a booking agent who, as part of her plea deal, has agreed to cooperate with prosecutors.
Prosecutors have not signaled whether they will charge the former governor.
He is expected to appear before the state's Commission on Public Integrity, which is hearing an appeal from a former aide who the commission has said improperly used the state police to gather damaging information about the Senate Republican leader at the time, Joseph L. Bruno.
The aide, Darren Dopp, has suggested that Spitzer was more involved in the effort to undermine Bruno than he has acknowledged.
Most of the former governor's friends were reluctant to speak about the state of the Spitzers' marriage -- a grim-looking Silda Wall Spitzer remains one of the most searing images of Spitzer's brief appearances after the story broke.
Herbert E. Nass, a Manhattan lawyer and friend of Spitzer's, said the former governor was contrite.
"He's remorseful, and I think he's focused on his wife and his kids," Nass said.
"He walks home from work and tells me he's gotten positive -- he hasn't gotten a lot of negative stuff out in public -- and he's focused on his family."
He and his wife have three daughters.
His friends say they do not have a deep understanding of the couple's bond, but say that it appears intact.
Wall Spitzer has emerged more publicly in recent weeks, writing an appeal that was highlighted on a Fortune magazine Web site for the charity she founded, "Children for Children."
"I think the marriage is going to stick together, but whether it does long term, who knows?" said Weprin.
"Who knows about any marriage?"
"But it survived the bumpiest ride it could."
By DANNY HAKIM, New York Times
First published: Sunday, September 28, 2008
ALBANY -- Former Gov. Eliot Spitzer was reading his newspaper on a recent Thursday morning when he was jolted by a comment made by his successor, David Paterson.
In the 22nd paragraph of a New York Times article on Aug. 21, Paterson said that aides to Spitzer had lacked experience in Albany, and added that the Spitzer administration's management approach sometimes "just didn't work."
Spitzer grew upset, according to a senior aide to Paterson and another official.
He picked up the phone, reached a Paterson aide, demanded a public apology from the governor and "issued threats, veiled and unveiled" against Paterson, said aide, who insisted on anonymity because he did not want to anger either man.
No public apology was offered; Spitzer and Paterson have not spoken since June.
Six months have passed since Spitzer's breathtakingly quick exodus from office after being implicated as a patron of a prostitution ring.
One day, Eliot Laurence Spitzer was a national figure some saw destined for the White House; the next he was a target of ridicule.
Now, in interviews with friends and former aides, and through e-mail messages obtained through a Freedom of Information request by The New York Times, a picture emerges of Spitzer trying to focus on the future and his family, with the threat of criminal charges still hanging over him.
He is working at the real estate firm owned by his ailing, 84-year-old father, and has discussed with friends whether to undertake charity, environmental or free legal work to try to rehabilitate his image.
But despite his efforts to move forward, Spitzer can be moved by flashes of anger, especially when it comes to what he views as his achievements and legacy, and he has faced an adjustment as he confronts life without the power he once wielded.
On Sept. 18, approached by a reporter outside his father's Fifth Avenue office, he lamented the federal rescue of American International Group, the giant insurer, and defended the aggressive steps he had taken to force the ouster of its chairman, Maurice R. Greenberg, in 2005 amid an accounting scandal.
He said his political demise shouldn't diminish his achievements.
"I committed my sins, and I've paid for them," he said.
Then he added, referring to AIG: "But I was right."
Asked how he was doing, he shrugged and responded, with resignation and a degree of joylessness: "Making money is making money," before heading inside the building.
He declined to speak further.
Spitzer's daily routine, once scrutinized by a roving pack of reporters, aides and cameras, has taken on a more quotidian feel.
He sometimes jogs in Central Park before work, buys his own cup of coffee, drops his daughters at the school bus and hails his own cab to the Fifth Avenue office building that houses his family's real estate business.
The glare of the cameras has been replaced with fleeting moments of recognition in an Upper East Side neighborhood.
Sometimes people offer him supportive words or smiles.
Construction workers snicker at him, and cabdrivers take pictures of him on their cell phones.
It wasn't like this when the news first broke in March.
Then there were gestures of comfort from the powerful inhabitants of Spitzer's world.
Former Vice President Al Gore reached out to him, as did Gov. Bill Richardson of New Mexico, according to e-mail records.
Ethel Kennedy, widow of Sen. Robert F. Kennedy, relayed to the governor a quotation to lift his spirits.
"Our greatest glory consists not in never falling, but in rising every time we fall," Kennedy wrote, adding: "See you back on top."
Spitzer was so moved by the words that when he resigned a few days later, he used them in his short resignation speech.
The same week, Spitzer sent an e-mail message to a top aide describing the personal turmoil he had brought to his family.
"We are surviving," he wrote.
"Silda has tough moments."
"My job now is to take care of her."
"I have done more than my share of damage."
Assemblyman Mark Weprin, a Queens Democrat who has been close to the Spitzers, recalls the former governor telling him at the time:
"It's been horrible living a Greek tragedy."
He added: "But what am I'm going to do?"
At 49, Spitzer is plotting a second act, though his life will be in limbo until his legal troubles are resolved.
Over the last two months, four of those charged in the prostitution ring have pleaded guilty, including a booking agent who, as part of her plea deal, has agreed to cooperate with prosecutors.
Prosecutors have not signaled whether they will charge the former governor.
He is expected to appear before the state's Commission on Public Integrity, which is hearing an appeal from a former aide who the commission has said improperly used the state police to gather damaging information about the Senate Republican leader at the time, Joseph L. Bruno.
The aide, Darren Dopp, has suggested that Spitzer was more involved in the effort to undermine Bruno than he has acknowledged.
Most of the former governor's friends were reluctant to speak about the state of the Spitzers' marriage -- a grim-looking Silda Wall Spitzer remains one of the most searing images of Spitzer's brief appearances after the story broke.
Herbert E. Nass, a Manhattan lawyer and friend of Spitzer's, said the former governor was contrite.
"He's remorseful, and I think he's focused on his wife and his kids," Nass said.
"He walks home from work and tells me he's gotten positive -- he hasn't gotten a lot of negative stuff out in public -- and he's focused on his family."
He and his wife have three daughters.
His friends say they do not have a deep understanding of the couple's bond, but say that it appears intact.
Wall Spitzer has emerged more publicly in recent weeks, writing an appeal that was highlighted on a Fortune magazine Web site for the charity she founded, "Children for Children."
"I think the marriage is going to stick together, but whether it does long term, who knows?" said Weprin.
"Who knows about any marriage?"
"But it survived the bumpiest ride it could."
"NY faces $1.2B budget shortfall, more jobless"
By VALERIE BAUMAN, Associated Press
Last updated: 4:15 p.m., Friday, October 3, 2008
ALBANY -- New Yorkers should prepare for fewer services and potentially higher school and local property taxes under the most stern budget warning yet from Gov. David Paterson.
"Everything is on the chopping block," Paterson said Friday at a meeting with legislative leaders in New York City, where he told every level of government to brace for the financial blow as lawmakers try to close a projected $1.2 billion budget gap.
Paterson expects the deficit to grow to $2 billion by the end the fiscal year and noted an unemployment rate above 6 percent for the first time since the aftermath of the Sept. 11, 2001 terror attacks.
He called for a special emergency session of the Legislature on Nov. 18 to make budget cuts that will likely hit every state agency, health care programs and even school aid, which the Democrat said he didn't want to change in the middle of the year but could be reduced next year.
Because cuts at the state level could mean costs passed along to local residents if municipal governments and school districts increase taxes to maintain spending, Paterson advised all levels of government to rein in expenses.
"People should really expect to hear about government shortfalls, and that their local governments are going to be lean," said Elizabeth Lynam, deputy research director of the Citizens Budget Commission, an independent fiscal and government watchdog group.
"It's tough times, it's not going to be back to business as usual for quite awhile."
Paterson rejected the idea of a tax increase, instead calling on legislators to make hard decisions and accusing them of not understanding the severity of the crisis.
It was a tough stance for a politician known for his congeniality and popularity on both sides of the aisle.
Paterson said he was willing to risk friendships by criticizing lawmakers for not offering specific budget suggestions.
The leaders committed to talking about cuts and returning for a special session, but they were only specific about areas they weren't willing to touch.
Senate Majority Leader Dean Skelos got a commitment from Paterson that he wouldn't raise taxes, and Assembly Speaker Sheldon Silver balked about potentially hurting schools and low-income families.
Paterson pointed out that the executive branch already cut $1.5 billion.
Skelos, a Long Island Republican pledged the Senate's support, but warned against "acting hastily by cutting spending in the wrong areas ... or enacting job-killing tax increases."
Silver pledged a bipartisan effort with the Senate to get to work earlier than usual on the 2009-10 budget.
"We need to act," the Manhattan Democrat said.
"Delay will only put off the inevitable."
One of the greatest obstacles to cutting state costs will be the powerful public employee unions.
"Even as the crisis unfolds, school districts, local governments, the city of New York and the state of New York have been committing themselves to generous long-term contracts," said E.J. McMahon from the fiscally conservative Empire Center for New York State Policy.
Paterson didn't call for layoffs or concessions from public employee unions.
But if they are needed, he said he would have private discussions with the state's powerful union leaders before speaking about them publicly.
Civil Service Employees Association President Danny Donohue urged Paterson to consider raising taxes.
"As the governor considers the destruction of the quality of life in New York that another $2 billion will cause, he should remember that it is largely the result of greed and unethical business practices by an unchecked corporate sector," Donohue said.
"Working New Yorkers will end up paying the price for this reckless irresponsibility and lack of government oversight."
The special session will be two weeks after elections, so lawmakers won't have to consider cutting politically sensitive spending before voters go to the polls.
Paterson said lawmakers will likely need to convene on additional days after that and predicted a difficult negotiating meeting before the Nov. 18 session.
Paterson said he is trying to avoid a downgrade of the state's credit rating, which would make borrowing far more expensive for the state.
He's preparing for even more budget strife by promising to deliver his executive budget for the next fiscal year more than a month early -- Dec. 16 instead of Jan. 20.
"Local governments and the school districts need to prepare for this right now," McMahon said.
"They have to understand that there's going to be a big change."
"That was good -- I think he's continuing to show the right kind of leadership."
By VALERIE BAUMAN, Associated Press
Last updated: 4:15 p.m., Friday, October 3, 2008
ALBANY -- New Yorkers should prepare for fewer services and potentially higher school and local property taxes under the most stern budget warning yet from Gov. David Paterson.
"Everything is on the chopping block," Paterson said Friday at a meeting with legislative leaders in New York City, where he told every level of government to brace for the financial blow as lawmakers try to close a projected $1.2 billion budget gap.
Paterson expects the deficit to grow to $2 billion by the end the fiscal year and noted an unemployment rate above 6 percent for the first time since the aftermath of the Sept. 11, 2001 terror attacks.
He called for a special emergency session of the Legislature on Nov. 18 to make budget cuts that will likely hit every state agency, health care programs and even school aid, which the Democrat said he didn't want to change in the middle of the year but could be reduced next year.
Because cuts at the state level could mean costs passed along to local residents if municipal governments and school districts increase taxes to maintain spending, Paterson advised all levels of government to rein in expenses.
"People should really expect to hear about government shortfalls, and that their local governments are going to be lean," said Elizabeth Lynam, deputy research director of the Citizens Budget Commission, an independent fiscal and government watchdog group.
"It's tough times, it's not going to be back to business as usual for quite awhile."
Paterson rejected the idea of a tax increase, instead calling on legislators to make hard decisions and accusing them of not understanding the severity of the crisis.
It was a tough stance for a politician known for his congeniality and popularity on both sides of the aisle.
Paterson said he was willing to risk friendships by criticizing lawmakers for not offering specific budget suggestions.
The leaders committed to talking about cuts and returning for a special session, but they were only specific about areas they weren't willing to touch.
Senate Majority Leader Dean Skelos got a commitment from Paterson that he wouldn't raise taxes, and Assembly Speaker Sheldon Silver balked about potentially hurting schools and low-income families.
Paterson pointed out that the executive branch already cut $1.5 billion.
Skelos, a Long Island Republican pledged the Senate's support, but warned against "acting hastily by cutting spending in the wrong areas ... or enacting job-killing tax increases."
Silver pledged a bipartisan effort with the Senate to get to work earlier than usual on the 2009-10 budget.
"We need to act," the Manhattan Democrat said.
"Delay will only put off the inevitable."
One of the greatest obstacles to cutting state costs will be the powerful public employee unions.
"Even as the crisis unfolds, school districts, local governments, the city of New York and the state of New York have been committing themselves to generous long-term contracts," said E.J. McMahon from the fiscally conservative Empire Center for New York State Policy.
Paterson didn't call for layoffs or concessions from public employee unions.
But if they are needed, he said he would have private discussions with the state's powerful union leaders before speaking about them publicly.
Civil Service Employees Association President Danny Donohue urged Paterson to consider raising taxes.
"As the governor considers the destruction of the quality of life in New York that another $2 billion will cause, he should remember that it is largely the result of greed and unethical business practices by an unchecked corporate sector," Donohue said.
"Working New Yorkers will end up paying the price for this reckless irresponsibility and lack of government oversight."
The special session will be two weeks after elections, so lawmakers won't have to consider cutting politically sensitive spending before voters go to the polls.
Paterson said lawmakers will likely need to convene on additional days after that and predicted a difficult negotiating meeting before the Nov. 18 session.
Paterson said he is trying to avoid a downgrade of the state's credit rating, which would make borrowing far more expensive for the state.
He's preparing for even more budget strife by promising to deliver his executive budget for the next fiscal year more than a month early -- Dec. 16 instead of Jan. 20.
"Local governments and the school districts need to prepare for this right now," McMahon said.
"They have to understand that there's going to be a big change."
"That was good -- I think he's continuing to show the right kind of leadership."
"Malta chip fab: $4.6 billion tab"
By LARRY RULISON, Business writer, Albany, New York Times Union
Last updated: 1:01 p.m., Tuesday, October 7, 2008
Officials from Advanced Micro Devices Inc. said this morning that the computer chip factory planned for Malta now has a $4.6 billion price tag — about $1.2 billion more than previously planned.
AMD, the world's No. 2 chip maker, announced this morning that it is spinning off its manufacturing as part of a $2.1 billion investment from the government of Abu Dhabi.
The chip fab planned for the Luther Forest Technology Campus in Malta — first announced by AMD more than two years ago — will be the cornerstone facility for the spin-off, which will be known as a "foundry" — meaning it will make chips for a variety of companies, including AMD.
The investment by Abu Dhabi, through the entity Advanced Technology Investment Co., will allow AMD to expand its current manufacturing capabilities in Dresden, Germany, where it has two existing factories.
AMD will be the main customer for those factories.
Luther Forest, on the other hand, will likely be used for making chips designed by other companies.
That means the Luther Forest chip fab, known as Fab 4X, won't be tied to the growth of AMD, but rather will compete for business from other chip-design companies worldwide.
"It is very likely that the first products could be non-AMD products," said Terry Caudell, AMD's director of wafer manufacturing strategies.
"It is very possible."
Caudell said the increased price tag for the Luther Forest facility does not mean it needs to ask for more money from the state.
New York has already offered AMD a $1.2 billion incentive package that includes $650 million in cash to build at Luther Forest.
"We're not going to change anything in the incentive package," Caudell said.
AMD still must get the state to transfer the incentive package from AMD to ATIC before the spin-off deal can occur.
ATIC must also re-apply for Empire Zone benefits for the site, which are included in the $1.2 billion incentive package.
Caudell said AMD briefed state officials about the plans to spin off manufacturing and the need for the benefits to be transferred to ATIC before today's announcement, without getting into specifics.
"There are no surprises on the hill here on the need to do this," he said.
By LARRY RULISON, Business writer, Albany, New York Times Union
Last updated: 1:01 p.m., Tuesday, October 7, 2008
Officials from Advanced Micro Devices Inc. said this morning that the computer chip factory planned for Malta now has a $4.6 billion price tag — about $1.2 billion more than previously planned.
AMD, the world's No. 2 chip maker, announced this morning that it is spinning off its manufacturing as part of a $2.1 billion investment from the government of Abu Dhabi.
The chip fab planned for the Luther Forest Technology Campus in Malta — first announced by AMD more than two years ago — will be the cornerstone facility for the spin-off, which will be known as a "foundry" — meaning it will make chips for a variety of companies, including AMD.
The investment by Abu Dhabi, through the entity Advanced Technology Investment Co., will allow AMD to expand its current manufacturing capabilities in Dresden, Germany, where it has two existing factories.
AMD will be the main customer for those factories.
Luther Forest, on the other hand, will likely be used for making chips designed by other companies.
That means the Luther Forest chip fab, known as Fab 4X, won't be tied to the growth of AMD, but rather will compete for business from other chip-design companies worldwide.
"It is very likely that the first products could be non-AMD products," said Terry Caudell, AMD's director of wafer manufacturing strategies.
"It is very possible."
Caudell said the increased price tag for the Luther Forest facility does not mean it needs to ask for more money from the state.
New York has already offered AMD a $1.2 billion incentive package that includes $650 million in cash to build at Luther Forest.
"We're not going to change anything in the incentive package," Caudell said.
AMD still must get the state to transfer the incentive package from AMD to ATIC before the spin-off deal can occur.
ATIC must also re-apply for Empire Zone benefits for the site, which are included in the $1.2 billion incentive package.
Caudell said AMD briefed state officials about the plans to spin off manufacturing and the need for the benefits to be transferred to ATIC before today's announcement, without getting into specifics.
"There are no surprises on the hill here on the need to do this," he said.
"Paterson: New AMD deal needs review"
By LARRY RULISON AND JAMES M. ODATO, Staff writers, Albany, New York Times Union
Last updated: 4:58 p.m., Tuesday, October 7, 2008
Gov. David Paterson said now that a foreign country is investing in Advanced Micro Devices Inc. he expects the state and federal governments will examine the $1.2 billion taxpayer-fund incentive package AMD is getting to build a micro-chip manufacturing plant in Malta.
But the governor said the job potential the project brings is needed to diversify the state's economy, which is losing tax revenue from the economic crisis on Wall Street.
"I think this is an immense opportunity for New York."
"This is the kind of job creation we need."
"We can't continue to be dependent on Wall Street," Paterson said.
In a move that has giant implications for the Capital Region and New York state, AMD announced this morning that it plans to spin off its manufacturing operations and that it will commit to a $3.2 billion computer chip factory in Saratoga County.
The move is being aided by a $2.1 billion investment by the Abu Dhabi government, which will take a majority stake in the new manufacturing entity, which will also own AMD's two fabs in Germany.
In light of the changes and the investment from Abu Dhabi, the governor said the Committee on Foreign Investments in the United States and the state's Empire State Development Corp. must explore the new deal.
"We can't be overcome with fear even in an economic calamity that we don't go forward and make some disciplined yet some strong moves that could help us in the future."
"There's a possibility of 1,465 jobs and another 600 construction jobs beyond that."
"This may be one of the biggest technological centers in the country."
"It may create a new culture where people are running to New York to participate in that economic opportunity rather than away from it as they did in the past.''
Paterson has not said whether he'll try to change the terms of an incentive package that requires the state to kick in $1.2 billion to build Advanced Micro Devices Inc's micro-chip manufacturing plant in Malta.
AMD's announcement is the company's first formal commitment to the Malta project at Luther Forest.
"It's an important day for the region," said F. Michael Tucker, CEO of the Center for Economic Growth in Albany.
"It's a new dawn, really."
New York state has offered AMD $1.2 billion to build the facility, but until today AMD has never officially committed to the project.
AMD said that construction of the New York fab, known as Fab 4X, would begin in the middle of 2009, assuming the state transfers the incentives to the new company overseeing chip manufacturing.
That entity will be headquartered in California and will be temporarily called The Foundry Co.
AMD also said it envisions additional manufacturing being built in Abu Dhabi in the future.
Michael Relyea, head of the Luther Forest Technology Campus, said this morning that he is under the impression that AMD still is planning for as many as three fabs in Malta.
The Foundry Co. has pledged to invest up to $6 billion in operations over the next five years, which includes the Luther Forest project.
The entity will also assume $1.2 billion in AMD debt, helping AMD become fiscally stronger in its battle with No. 1 chip maker Intel Corp.
"At a time of general bleak economic news, this is great news about the Capital Region and its economic future," U.S. Sen. Charles Schumer, D-N.Y., said in a statement.
"This is something we worked on long and hard and I am glad to see it bear fruit."
"This investment will establish the Capital Region once and for all as one of the premier high-tech, nanotechnology centers of the world."
Paterson and AMD officials will hold a news conference today at 3:15 p.m. at the Capitol.
Schumer also is expected to be at that event.
AMD spokesman Travis Bullard said three things have to happen before the new company can officially proceed with Fab 4X: federal approval of the transaction, New York's transfer of the incentives and AMD shareholder approval.
All are expected to occur.
"This is not the formal commitment (letter), but what we can say is we are doing Fab 4X," Bullard said.
By LARRY RULISON AND JAMES M. ODATO, Staff writers, Albany, New York Times Union
Last updated: 4:58 p.m., Tuesday, October 7, 2008
Gov. David Paterson said now that a foreign country is investing in Advanced Micro Devices Inc. he expects the state and federal governments will examine the $1.2 billion taxpayer-fund incentive package AMD is getting to build a micro-chip manufacturing plant in Malta.
But the governor said the job potential the project brings is needed to diversify the state's economy, which is losing tax revenue from the economic crisis on Wall Street.
"I think this is an immense opportunity for New York."
"This is the kind of job creation we need."
"We can't continue to be dependent on Wall Street," Paterson said.
In a move that has giant implications for the Capital Region and New York state, AMD announced this morning that it plans to spin off its manufacturing operations and that it will commit to a $3.2 billion computer chip factory in Saratoga County.
The move is being aided by a $2.1 billion investment by the Abu Dhabi government, which will take a majority stake in the new manufacturing entity, which will also own AMD's two fabs in Germany.
In light of the changes and the investment from Abu Dhabi, the governor said the Committee on Foreign Investments in the United States and the state's Empire State Development Corp. must explore the new deal.
"We can't be overcome with fear even in an economic calamity that we don't go forward and make some disciplined yet some strong moves that could help us in the future."
"There's a possibility of 1,465 jobs and another 600 construction jobs beyond that."
"This may be one of the biggest technological centers in the country."
"It may create a new culture where people are running to New York to participate in that economic opportunity rather than away from it as they did in the past.''
Paterson has not said whether he'll try to change the terms of an incentive package that requires the state to kick in $1.2 billion to build Advanced Micro Devices Inc's micro-chip manufacturing plant in Malta.
AMD's announcement is the company's first formal commitment to the Malta project at Luther Forest.
"It's an important day for the region," said F. Michael Tucker, CEO of the Center for Economic Growth in Albany.
"It's a new dawn, really."
New York state has offered AMD $1.2 billion to build the facility, but until today AMD has never officially committed to the project.
AMD said that construction of the New York fab, known as Fab 4X, would begin in the middle of 2009, assuming the state transfers the incentives to the new company overseeing chip manufacturing.
That entity will be headquartered in California and will be temporarily called The Foundry Co.
AMD also said it envisions additional manufacturing being built in Abu Dhabi in the future.
Michael Relyea, head of the Luther Forest Technology Campus, said this morning that he is under the impression that AMD still is planning for as many as three fabs in Malta.
The Foundry Co. has pledged to invest up to $6 billion in operations over the next five years, which includes the Luther Forest project.
The entity will also assume $1.2 billion in AMD debt, helping AMD become fiscally stronger in its battle with No. 1 chip maker Intel Corp.
"At a time of general bleak economic news, this is great news about the Capital Region and its economic future," U.S. Sen. Charles Schumer, D-N.Y., said in a statement.
"This is something we worked on long and hard and I am glad to see it bear fruit."
"This investment will establish the Capital Region once and for all as one of the premier high-tech, nanotechnology centers of the world."
Paterson and AMD officials will hold a news conference today at 3:15 p.m. at the Capitol.
Schumer also is expected to be at that event.
AMD spokesman Travis Bullard said three things have to happen before the new company can officially proceed with Fab 4X: federal approval of the transaction, New York's transfer of the incentives and AMD shareholder approval.
All are expected to occur.
"This is not the formal commitment (letter), but what we can say is we are doing Fab 4X," Bullard said.
"AMD plan leaves Saratoga Co. optimistic, skeptical"
By LEIGH HORNBECK, Staff writer, Albany, New York Times Union
Last updated: 12:48 p.m., Tuesday, October 7, 2008
It's been a gamble lying beneath every construction decision in Saratoga County for four years: is AMD really coming?
But this morning's news that the computer chip manufacturer plans to build a $3.2 billion factory in Malta fell on optimistic and skeptical ears.
"Show me a shovel in the ground and I'll be convinced," said Cliff Baum, owner of the Coffee Planet in Ballston Spa.
"I'm waiting until the end."
"It could have a positive impact here but in terms of whether or not they're really coming, isn't the money coming from a foreign country?"
AMD announced this morning that it plans to spin off its manufacturing operations and that it will commit to the $3.2 billion computer chip factory in Saratoga County.
The move is being aided by a $2.1 billion investment by the Abu Dhabi government, which will take a majority stake in the new manufacturing entity, which will also own AMD's two fabs in Germany.
Millions of dollars of infrastructure decisions were predicated on AMD or a similar high-tech company moving to the Luther Forest Technology Campus in Malta.
A $67 million water line to serve AMD is under construction along with the $22 million Round Lake bypass and $37 million in roads to be built within the park.
AMD's arrival has been described as the magnet that would keep the area's young people from moving away to find jobs.
It also is described as the engine that would keep the county growing all before AMD ever said it was definitely coming.
John Lawler, chairman of the Saratoga County Water Authority, said he wasn't celebrating yet, but he was enthusiastic.
"Looking at the industry and the company, it was clear AMD needed this plant to remain a worldwide player and they had a very attractive incentive package not likely to be matched elsewhere," Lawler said, referring to the $1.2 billion the state offered AMD to build in Malta.
By LEIGH HORNBECK, Staff writer, Albany, New York Times Union
Last updated: 12:48 p.m., Tuesday, October 7, 2008
It's been a gamble lying beneath every construction decision in Saratoga County for four years: is AMD really coming?
But this morning's news that the computer chip manufacturer plans to build a $3.2 billion factory in Malta fell on optimistic and skeptical ears.
"Show me a shovel in the ground and I'll be convinced," said Cliff Baum, owner of the Coffee Planet in Ballston Spa.
"I'm waiting until the end."
"It could have a positive impact here but in terms of whether or not they're really coming, isn't the money coming from a foreign country?"
AMD announced this morning that it plans to spin off its manufacturing operations and that it will commit to the $3.2 billion computer chip factory in Saratoga County.
The move is being aided by a $2.1 billion investment by the Abu Dhabi government, which will take a majority stake in the new manufacturing entity, which will also own AMD's two fabs in Germany.
Millions of dollars of infrastructure decisions were predicated on AMD or a similar high-tech company moving to the Luther Forest Technology Campus in Malta.
A $67 million water line to serve AMD is under construction along with the $22 million Round Lake bypass and $37 million in roads to be built within the park.
AMD's arrival has been described as the magnet that would keep the area's young people from moving away to find jobs.
It also is described as the engine that would keep the county growing all before AMD ever said it was definitely coming.
John Lawler, chairman of the Saratoga County Water Authority, said he wasn't celebrating yet, but he was enthusiastic.
"Looking at the industry and the company, it was clear AMD needed this plant to remain a worldwide player and they had a very attractive incentive package not likely to be matched elsewhere," Lawler said, referring to the $1.2 billion the state offered AMD to build in Malta.
"AMD deal marks a 'new dawn' - Financing, manufacturing shift expected to take chip maker off 'death watch'"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Wednesday, October 8, 2008
MALTA — Advanced Micro Devices Inc. said Tuesday it will move forward with plans for a multibillion-dollar computer-chip factory in Saratoga County after securing a $6 billion investment from the government of Abu Dhabi.
The deal assures much-needed capital for financially struggling AMD, which appeared too hobbled by its knock-down battle with rival Intel Corp. to build the high-tech facility first proposed two years ago.
Instead, AMD has decided to spin off its two German factories, or "chip fabs," into a new entity: a foundry solely for manufacturing.
With fresh financing and $1.2 billion in debt lifted off its books, AMD will focus on chip design, a much less costly — and less risky — business.
Manufacturing will carried out under a separate business temporarily called The Foundry Co.
"They had to do this to survive," said Silicon Valley technology analyst Rob Enderle.
"They were pretty much on death watch."
"This takes them off death watch, it's absolutely huge for New York."
In addition to expanding in Germany, The Foundry Co. plans to build a $4.6 billion chip fab at Luther Forest Technology Campus in Malta.
Previous estimates had put the cost of the plant at $3.2 billion, but AMD has decided to make the factory bigger.
The plant would employ 1,465 people.
If state officials agree to transfer a $1.2 billion incentive package from AMD to the new company, the deal could help transform the Capital Region, which has been working over the past decade to become a hub for the computer-chip industry like places such as Austin, Texas, and San Francisco.
"It's an important day for the region."
"It's a new dawn, really," said F. Michael Tucker, president of the Center for Economic Growth, an Albany-based group that promotes regional business development.
Based in Sunnyvale, Calif., AMD is the world's No. 2 maker of microprocessors that power personal computers and servers.
But in an all-out price war with No. 1 rival Intel Corp., AMD has been bleeding cash, losing nearly $5 billion since the beginning of 2007.
Many in the local business community wondered privately if the company's plans for Saratoga County, first announced by Gov. George Pataki in the summer of 2006, were a pipe dream.
But AMD got creative, coming up with a strategy to shed its costly manufacturing operations, something the Abu Dhabi government was more than willing to pump full of cash from oil revenue.
The strategy, first called "asset light" and now "asset smart" by AMD, not only includes spinning off manufacturing but also trying to tap into the ever-increasing use of so-called "foundries" by chip companies.
These foundries, most of which are in Asia, essentially do contract manufacturing for companies like Texas Instruments and Sony.
Even AMD is a customer for certain products, such as graphics chips.
The new company will try to tap this growing market for chip outsourcing, and AMD will be its first customer.
But the plan is to sell its services to other companies as well — a huge potential market expected to grow to $32 billion a year by 2012, from the current $25 billion.
And while AMD's needs will be handled for now by the company's two existing fabs in Dresden, Germany, it's expected that the Luther Forest fab would start off taking orders from other companies.
"It's very likely that the first products could be non-AMD products," said Terry Caudell, AMD's director of wafer manufacturing strategies.
"It's very possible."
"We think that The Foundry Co., by building more capacity, is going to help fill that demand."
Under the terms of the deal, a fund backed by the government of Abu Dhabi, Advanced Technology Investment Co., or ATIC, will invest $2.1 billion in The Foundry Co., of which $700 million will go to AMD for its own investment in the new company.
The Foundry Co. will take on $1.2 billion of AMD's debt.
ATIC will also commit to pump an additional $3.6 billion to $6 billion into The Foundry Co. over the next five years, money that will go to support expansion in Dresden and construction of the Luther Forest fab.
Another government-funded Abu Dhabi investment company, Mubadala Development Co. will invest $314 million in AMD, raising its current equity stake to 19.3 percent from 8.1 percent.
The deal hinges on state officials approving the transfer of the $1.2 billion in incentives previously promised to AMD to The Foundry Co., which will be 55.6 percent owned by ATIC and 44.4 percent owned by AMD.
If that transfer is approved by the board of Empire State Development Corp., the state's economic development arm, then the deal would close by the beginning of next year, AMD officials said.
Caudell, who is also project manager for the New York fab, said The Foundry Co. would acquire the land it needs at Luther Forest — roughly 200 acres — sometime during the first quarter next year.
Initial site clearing would begin later in the spring, with full-scale groundbreaking and construction starting in the summer.
The factory would be completed and would start generating revenue in late 2011 or early 2012, Caudell said.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
Fast facts about the AMD deal
• The Foundry Co., plans to spend $4.6 billion on the new factory in Saratoga County.
• The fab will employ 1,465 people; its annual payroll will be $88 million.
• AMD estimates 4,300 construction jobs will be created during the two-year building window, with an annual payroll of $210 million
• Also, it's estimated another 5,050 jobs will be created in the local economy to support and serve the fab.
The collective payrolls would top $200 million.
• The Foundry Co. will be based in Silicon Valley with an initial 3,000 employees worldwide, most of them working in Germany.
Its CEO will be Doug Grose; its chairman will be Hector Ruiz, former AMD chairman.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Wednesday, October 8, 2008
MALTA — Advanced Micro Devices Inc. said Tuesday it will move forward with plans for a multibillion-dollar computer-chip factory in Saratoga County after securing a $6 billion investment from the government of Abu Dhabi.
The deal assures much-needed capital for financially struggling AMD, which appeared too hobbled by its knock-down battle with rival Intel Corp. to build the high-tech facility first proposed two years ago.
Instead, AMD has decided to spin off its two German factories, or "chip fabs," into a new entity: a foundry solely for manufacturing.
With fresh financing and $1.2 billion in debt lifted off its books, AMD will focus on chip design, a much less costly — and less risky — business.
Manufacturing will carried out under a separate business temporarily called The Foundry Co.
"They had to do this to survive," said Silicon Valley technology analyst Rob Enderle.
"They were pretty much on death watch."
"This takes them off death watch, it's absolutely huge for New York."
In addition to expanding in Germany, The Foundry Co. plans to build a $4.6 billion chip fab at Luther Forest Technology Campus in Malta.
Previous estimates had put the cost of the plant at $3.2 billion, but AMD has decided to make the factory bigger.
The plant would employ 1,465 people.
If state officials agree to transfer a $1.2 billion incentive package from AMD to the new company, the deal could help transform the Capital Region, which has been working over the past decade to become a hub for the computer-chip industry like places such as Austin, Texas, and San Francisco.
"It's an important day for the region."
"It's a new dawn, really," said F. Michael Tucker, president of the Center for Economic Growth, an Albany-based group that promotes regional business development.
Based in Sunnyvale, Calif., AMD is the world's No. 2 maker of microprocessors that power personal computers and servers.
But in an all-out price war with No. 1 rival Intel Corp., AMD has been bleeding cash, losing nearly $5 billion since the beginning of 2007.
Many in the local business community wondered privately if the company's plans for Saratoga County, first announced by Gov. George Pataki in the summer of 2006, were a pipe dream.
But AMD got creative, coming up with a strategy to shed its costly manufacturing operations, something the Abu Dhabi government was more than willing to pump full of cash from oil revenue.
The strategy, first called "asset light" and now "asset smart" by AMD, not only includes spinning off manufacturing but also trying to tap into the ever-increasing use of so-called "foundries" by chip companies.
These foundries, most of which are in Asia, essentially do contract manufacturing for companies like Texas Instruments and Sony.
Even AMD is a customer for certain products, such as graphics chips.
The new company will try to tap this growing market for chip outsourcing, and AMD will be its first customer.
But the plan is to sell its services to other companies as well — a huge potential market expected to grow to $32 billion a year by 2012, from the current $25 billion.
And while AMD's needs will be handled for now by the company's two existing fabs in Dresden, Germany, it's expected that the Luther Forest fab would start off taking orders from other companies.
"It's very likely that the first products could be non-AMD products," said Terry Caudell, AMD's director of wafer manufacturing strategies.
"It's very possible."
"We think that The Foundry Co., by building more capacity, is going to help fill that demand."
Under the terms of the deal, a fund backed by the government of Abu Dhabi, Advanced Technology Investment Co., or ATIC, will invest $2.1 billion in The Foundry Co., of which $700 million will go to AMD for its own investment in the new company.
The Foundry Co. will take on $1.2 billion of AMD's debt.
ATIC will also commit to pump an additional $3.6 billion to $6 billion into The Foundry Co. over the next five years, money that will go to support expansion in Dresden and construction of the Luther Forest fab.
Another government-funded Abu Dhabi investment company, Mubadala Development Co. will invest $314 million in AMD, raising its current equity stake to 19.3 percent from 8.1 percent.
The deal hinges on state officials approving the transfer of the $1.2 billion in incentives previously promised to AMD to The Foundry Co., which will be 55.6 percent owned by ATIC and 44.4 percent owned by AMD.
If that transfer is approved by the board of Empire State Development Corp., the state's economic development arm, then the deal would close by the beginning of next year, AMD officials said.
Caudell, who is also project manager for the New York fab, said The Foundry Co. would acquire the land it needs at Luther Forest — roughly 200 acres — sometime during the first quarter next year.
Initial site clearing would begin later in the spring, with full-scale groundbreaking and construction starting in the summer.
The factory would be completed and would start generating revenue in late 2011 or early 2012, Caudell said.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
Fast facts about the AMD deal
• The Foundry Co., plans to spend $4.6 billion on the new factory in Saratoga County.
• The fab will employ 1,465 people; its annual payroll will be $88 million.
• AMD estimates 4,300 construction jobs will be created during the two-year building window, with an annual payroll of $210 million
• Also, it's estimated another 5,050 jobs will be created in the local economy to support and serve the fab.
The collective payrolls would top $200 million.
• The Foundry Co. will be based in Silicon Valley with an initial 3,000 employees worldwide, most of them working in Germany.
Its CEO will be Doug Grose; its chairman will be Hector Ruiz, former AMD chairman.
"Fab feeling: 'Guess what, guys; it happened' - Chip factory advocates gloat a bit over AMD decision"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Thursday, October 9, 2008
MALTA — Supporters of Advanced Micro Devices' $4.6 billion computer-chip factory project celebrated — and gloated — Wednesday at the plant's future location here.
Political and business leaders gathered at Luther Forest Technology Campus for a rally just a day after AMD said it was spinning off manufacturing operations and would build the Malta plant.
The plan is part of a $7.2 billion deal with the Emirate of Abu Dhabi to create a global "foundry" to make chips for AMD and others.
One of those leaders was Bob Hayes, chairman of the board of Luther Forest Technology Campus Development Corp., where the state-of-the-art factory will be built.
"To the naysayers," Hayes said, "guess what, guys; it happened."
The elation was understandable.
After first announcing more than two years ago that it planned to build the factory, known as a chip fab, at Luther Forest, AMD entered a bloody price war with rival Intel Corp.
The result has been $5.5 billion in losses for AMD since the fourth quarter of 2006, and growing doubt locally that the Saratoga County project would survive.
Also at the event Wednesday — and as outspoken as ever — was former Senate Majority Leader Joseph L. Bruno, now a lobbyist and chief executive of a Latham consulting firm.
Bruno, who retired from the Legislature in the summer, helped to craft the $1.2 billion state incentive package that helped persuade AMD and its partners to build the factory.
"Just a few weeks ago, I was getting calls: 'It's never going to happen; it's never going to happen; AMD's in trouble,' " Bruno said.
"Now we're here."
"Tough decisions, if they're made properly, they lead to benefits like they do here."
Under the terms of AMD's spinoff, an investment fund financed by the government of Abu Dhabi is pumping $2.1 billion into the new foundry company, which will take over ownership of the company's two chip fabs in Dresden, Germany.
The new firm, temporarily dubbed The Foundry Co., will also assume $1.2 billion in AMD debt, helping to improve its balance sheet.
The Foundry Co. has also promised to spend between $3.6 billion and $6 billion to upgrade the Dresden factories and build the new factory in Luther Forest, a 1,350-acre technology park currently in the early stages of development in the towns of Malta and Stillwater.
AMD still faces a few regulatory hurdles before construction at Luther Forest can proceed, including the transfer of AMD's state incentive package to The Foundry Co.
But AMD officials here Wednesday also made their most effusive statements ever about the fab.
Even dating back to the project's announcement in June 2006 under then-Gov. George Pataki, company officials have been guarded in their comments about the likelihood the plant would ultimately get the green light from AMD's board to move forward.
At the time, there were rumors that political leaders, fresh off budget negotiations, had forced AMD to make the announcement before it was ready.
Not much of that restraint appears to remain.
AMD is now better poised to battle with Intel, and its Persian Gulf investors have billions of dollars in oil wealth backing them.
"This is going to happen, guys," Terry Caudell, AMD's director of wafer manufacturing strategies and project director for Luther Forest, told Wednesday's crowd, which numbered about 125.
"I guess it's been said 'Be careful what you ask for because that's what you're going to get.'"
"You're going to get a chip factory."
AMD is taking the first steps right away.
It is leasing 9,000 square feet of office space at Saratoga Technology & Energy Park, a state-owned office park within the borders of Luther Forest.
The office is slated to open Dec. 1 and will be used by The Foundry Co. to plan the chip fab and oversee construction, which is scheduled to begin next summer and take about two years.
AMD spokesman Travis Bullard said about a dozen people would work there initially, with up to 40 by next year.
Once completed, the fab will employ 1,465.
AMD also said Wednesday it will give $5 million to the towns of Malta and Stillwater over four years, including $1 million that will be used to create a public ballpark complex on 32 acres in Luther Forest.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Thursday, October 9, 2008
MALTA — Supporters of Advanced Micro Devices' $4.6 billion computer-chip factory project celebrated — and gloated — Wednesday at the plant's future location here.
Political and business leaders gathered at Luther Forest Technology Campus for a rally just a day after AMD said it was spinning off manufacturing operations and would build the Malta plant.
The plan is part of a $7.2 billion deal with the Emirate of Abu Dhabi to create a global "foundry" to make chips for AMD and others.
One of those leaders was Bob Hayes, chairman of the board of Luther Forest Technology Campus Development Corp., where the state-of-the-art factory will be built.
"To the naysayers," Hayes said, "guess what, guys; it happened."
The elation was understandable.
After first announcing more than two years ago that it planned to build the factory, known as a chip fab, at Luther Forest, AMD entered a bloody price war with rival Intel Corp.
The result has been $5.5 billion in losses for AMD since the fourth quarter of 2006, and growing doubt locally that the Saratoga County project would survive.
Also at the event Wednesday — and as outspoken as ever — was former Senate Majority Leader Joseph L. Bruno, now a lobbyist and chief executive of a Latham consulting firm.
Bruno, who retired from the Legislature in the summer, helped to craft the $1.2 billion state incentive package that helped persuade AMD and its partners to build the factory.
"Just a few weeks ago, I was getting calls: 'It's never going to happen; it's never going to happen; AMD's in trouble,' " Bruno said.
"Now we're here."
"Tough decisions, if they're made properly, they lead to benefits like they do here."
Under the terms of AMD's spinoff, an investment fund financed by the government of Abu Dhabi is pumping $2.1 billion into the new foundry company, which will take over ownership of the company's two chip fabs in Dresden, Germany.
The new firm, temporarily dubbed The Foundry Co., will also assume $1.2 billion in AMD debt, helping to improve its balance sheet.
The Foundry Co. has also promised to spend between $3.6 billion and $6 billion to upgrade the Dresden factories and build the new factory in Luther Forest, a 1,350-acre technology park currently in the early stages of development in the towns of Malta and Stillwater.
AMD still faces a few regulatory hurdles before construction at Luther Forest can proceed, including the transfer of AMD's state incentive package to The Foundry Co.
But AMD officials here Wednesday also made their most effusive statements ever about the fab.
Even dating back to the project's announcement in June 2006 under then-Gov. George Pataki, company officials have been guarded in their comments about the likelihood the plant would ultimately get the green light from AMD's board to move forward.
At the time, there were rumors that political leaders, fresh off budget negotiations, had forced AMD to make the announcement before it was ready.
Not much of that restraint appears to remain.
AMD is now better poised to battle with Intel, and its Persian Gulf investors have billions of dollars in oil wealth backing them.
"This is going to happen, guys," Terry Caudell, AMD's director of wafer manufacturing strategies and project director for Luther Forest, told Wednesday's crowd, which numbered about 125.
"I guess it's been said 'Be careful what you ask for because that's what you're going to get.'"
"You're going to get a chip factory."
AMD is taking the first steps right away.
It is leasing 9,000 square feet of office space at Saratoga Technology & Energy Park, a state-owned office park within the borders of Luther Forest.
The office is slated to open Dec. 1 and will be used by The Foundry Co. to plan the chip fab and oversee construction, which is scheduled to begin next summer and take about two years.
AMD spokesman Travis Bullard said about a dozen people would work there initially, with up to 40 by next year.
Once completed, the fab will employ 1,465.
AMD also said Wednesday it will give $5 million to the towns of Malta and Stillwater over four years, including $1 million that will be used to create a public ballpark complex on 32 acres in Luther Forest.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
"A threat to AMD's deal emerges - Long-standing pact with Intel on sharing technology faces review"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Friday, October 10, 2008
MALTA — An Intel Corp. agreement poses a risk to Advanced Micro Devices Inc.'s $7.2 billion deal with the government of Abu Dhabi, which is expected to pave the way for a multibillion-dollar computer-chip factory in Saratoga County.
AMD and Intel, its prime rival in the microprocessor market, still must review a long-standing agreement they have to share technology.
The pact, which has been in place since 1976 and runs through 2010, prohibits the technology from being transferred to a third party.
The agreement can be canceled if AMD is acquired.
But AMD isn't being bought.
Rather, it will spin off manufacturing to a new entity that will be majority-owned by an Abu Dhabi investment fund.
That entity, called The Foundry Co., will make computer chips for AMD and others.
"We do have serious questions," said Intel spokesman Chuck Mulloy.
"We need to understand (the deal) more."
Mulloy said that like others in the semiconductor industry, Intel is waiting for AMD to file a proxy statement with the U.S. Securities and Exchange Commission for the required shareholder vote on the deal.
The document should explain how the the spinoff is structured.
An Adu Dhabi investment fund, Advanced Technology Investment Co., is investing $2.1 billion in the manufacturing spinoff, with promises to invest up to an additional $6 billion to expand existing AMD chipmaking factories in Germany and build a $4.6 billion fab at Luther Forest Technology Campus in Malta.
In a research report published Wednesday, Citigroup Global Markets analyst Glen Yeung said the Intel agreement will pose a risk to the Abu Dhabi deal.
"Intel said it has serious legal questions about AMD's newly announced asset-light restructuring plan and implications for the company's license agreements," Yeung wrote.
However, AMD does not see it that way.
"We are confident that there are no issues with the licensing," said company spokesman Travis Bullard.
The AMD-Abu Dhabi deal also needs New York to approve transferring incentives for the Luther Forest plant from AMD to The Foundry Co., the new manufacturing entity, and federal approval of the ATIC investment from the Committee on Foreign Investment in the United States.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Friday, October 10, 2008
MALTA — An Intel Corp. agreement poses a risk to Advanced Micro Devices Inc.'s $7.2 billion deal with the government of Abu Dhabi, which is expected to pave the way for a multibillion-dollar computer-chip factory in Saratoga County.
AMD and Intel, its prime rival in the microprocessor market, still must review a long-standing agreement they have to share technology.
The pact, which has been in place since 1976 and runs through 2010, prohibits the technology from being transferred to a third party.
The agreement can be canceled if AMD is acquired.
But AMD isn't being bought.
Rather, it will spin off manufacturing to a new entity that will be majority-owned by an Abu Dhabi investment fund.
That entity, called The Foundry Co., will make computer chips for AMD and others.
"We do have serious questions," said Intel spokesman Chuck Mulloy.
"We need to understand (the deal) more."
Mulloy said that like others in the semiconductor industry, Intel is waiting for AMD to file a proxy statement with the U.S. Securities and Exchange Commission for the required shareholder vote on the deal.
The document should explain how the the spinoff is structured.
An Adu Dhabi investment fund, Advanced Technology Investment Co., is investing $2.1 billion in the manufacturing spinoff, with promises to invest up to an additional $6 billion to expand existing AMD chipmaking factories in Germany and build a $4.6 billion fab at Luther Forest Technology Campus in Malta.
In a research report published Wednesday, Citigroup Global Markets analyst Glen Yeung said the Intel agreement will pose a risk to the Abu Dhabi deal.
"Intel said it has serious legal questions about AMD's newly announced asset-light restructuring plan and implications for the company's license agreements," Yeung wrote.
However, AMD does not see it that way.
"We are confident that there are no issues with the licensing," said company spokesman Travis Bullard.
The AMD-Abu Dhabi deal also needs New York to approve transferring incentives for the Luther Forest plant from AMD to The Foundry Co., the new manufacturing entity, and federal approval of the ATIC investment from the Committee on Foreign Investment in the United States.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
"Is AMD the next big thing? - Time will tell if a $4.6B bet on a chip fab plant pays off for the Capital Region like the Erie Canal or GE"
By PAUL GRONDAHL, Staff writer, Albany, New York Times Union
First published in print: Saturday, October 11, 2008
MALTA — Gov. DeWitt Clinton was considered nutty for proposing to spend $7 million in 1817 to build a 363-mile canal from Albany to Buffalo, a public works project mocked as "Clinton's folly."
Thomas Edison's decision to relocate from New Jersey and establish the General Electric Co. in godforsaken Schenectady in 1886 raised eyebrows.
Derided by naysayers and considered ill-advised initially, the Erie Canal and GE proved to be two of the greatest transformative developments in the Capital Region's economic history, solid anchors of the local economy for generations.
History will be the judge whether AMD's plan to build a $4.6 billion chip fab plant in Saratoga County will live up to the hyperbole of boosters who tout it as "an Erie Canal for the 21st century."
Historians and academics are unwilling to declare AMD an epic addition at this point.
They seem dubious about declaring it a rising tide that will life the fortunes of all Capital Region residents.
There is consensus that it's a major investment, but not a Top 5 transformational project.
Yet.
"At this point, nobody can say for sure whether AMD really will be the next big thing, although it will create follow-on businesses and it helps legitimize this area as a high-tech center," said P. Thomas Carroll, executive director of the Hudson Mohawk Industrial Gateway in Troy and an authority on America's 19th-century industrial history.
To add some perspective, the Burden Iron Works in Troy sold out about $1 million worth of horseshoes annually for four decades starting in the mid-1800s, or about $500 million in today's dollars.
Iron manufacturing was a durable local economic engine for more than two generations, while Carroll is not convinced that the here today, gone tomorrow mentality of Silicon Valley will allow AMD to make a lasting mark.
"My concern is that tech boom cities can die out quickly."
"I think we need to be wary that we're not getting into a Gold Rush mentality where you end up with a ghost town in 10 years," Carroll said.
Iron and railroads and the brawn of the Industrial Revolution muscled their way to the top of the heap in the local economy, but W. Douglas McCombs, curator of history at the Albany Institute of History and Art, finds that subtler, more diffuse developments can be equally transformative.
McCombs pointed to thousands of women employed in the textile industry in the late 19th- and early 20th-century in Troy shirt-collar factories and Cohoes woolen mills.
"For the first time, average business people were buying stiff collars to create a show of respectability, which represents the middle class emerging as an economic force," he said.
Severin Carlson, dean of the School of Business at the College of Saint Rose, sees parallels between AMD's plans and a sprawling science-based industrial park developed in Hsinchu, Taiwan in the early 1980s that he visited.
The town-sized Hsinchu complex is still going strong two decades later.
"Hsinchu has been so successful because it involved a solid strategic plan and it's a manufacturing facility instead of just R&D," Carlson said.
"That kind of model would give AMD much greater potential for growth."
"Even though people have been skeptical of Tech Valley here, they had a plan and an objective."
"AMD would not have come to this region without Tech Valley."
"It takes time to realize what's visionary and what's not," said Assemblyman Jack McEneny, D-Albany, a local historian.
McEneny feels AMD, added to major nanotechnology investment at the University at Albany and high-tech innovations at RPI and other local college campuses, together with state government funding, could equal a historic development.
"The technology that came out of the Erie Canal made us the Empire State, an empire of commerce and industry through the early 20th-century."
"That entrepreneurial spirit is back now, but we'll have to wait and see if Hector Ruiz is the next Erastus Corning or Stephen Van Rensselaer for our region."
Paul Grondahl can be reached at 454-5623 or by e-mail at pgrondahl@timesunion.com.
Tom Carroll's top 5 area historic developments
1) Harnessing water power for industry at Burden Iron Works, Troy
2) Erie Canal, Albany to Buffalo
3) Thomas Edison's decision to move General Electric to Schenectady
4) Voyage of Henry Hudson signals European arrival
5) Growth of higher education infra-structure, Union College, Schenectady
By PAUL GRONDAHL, Staff writer, Albany, New York Times Union
First published in print: Saturday, October 11, 2008
MALTA — Gov. DeWitt Clinton was considered nutty for proposing to spend $7 million in 1817 to build a 363-mile canal from Albany to Buffalo, a public works project mocked as "Clinton's folly."
Thomas Edison's decision to relocate from New Jersey and establish the General Electric Co. in godforsaken Schenectady in 1886 raised eyebrows.
Derided by naysayers and considered ill-advised initially, the Erie Canal and GE proved to be two of the greatest transformative developments in the Capital Region's economic history, solid anchors of the local economy for generations.
History will be the judge whether AMD's plan to build a $4.6 billion chip fab plant in Saratoga County will live up to the hyperbole of boosters who tout it as "an Erie Canal for the 21st century."
Historians and academics are unwilling to declare AMD an epic addition at this point.
They seem dubious about declaring it a rising tide that will life the fortunes of all Capital Region residents.
There is consensus that it's a major investment, but not a Top 5 transformational project.
Yet.
"At this point, nobody can say for sure whether AMD really will be the next big thing, although it will create follow-on businesses and it helps legitimize this area as a high-tech center," said P. Thomas Carroll, executive director of the Hudson Mohawk Industrial Gateway in Troy and an authority on America's 19th-century industrial history.
To add some perspective, the Burden Iron Works in Troy sold out about $1 million worth of horseshoes annually for four decades starting in the mid-1800s, or about $500 million in today's dollars.
Iron manufacturing was a durable local economic engine for more than two generations, while Carroll is not convinced that the here today, gone tomorrow mentality of Silicon Valley will allow AMD to make a lasting mark.
"My concern is that tech boom cities can die out quickly."
"I think we need to be wary that we're not getting into a Gold Rush mentality where you end up with a ghost town in 10 years," Carroll said.
Iron and railroads and the brawn of the Industrial Revolution muscled their way to the top of the heap in the local economy, but W. Douglas McCombs, curator of history at the Albany Institute of History and Art, finds that subtler, more diffuse developments can be equally transformative.
McCombs pointed to thousands of women employed in the textile industry in the late 19th- and early 20th-century in Troy shirt-collar factories and Cohoes woolen mills.
"For the first time, average business people were buying stiff collars to create a show of respectability, which represents the middle class emerging as an economic force," he said.
Severin Carlson, dean of the School of Business at the College of Saint Rose, sees parallels between AMD's plans and a sprawling science-based industrial park developed in Hsinchu, Taiwan in the early 1980s that he visited.
The town-sized Hsinchu complex is still going strong two decades later.
"Hsinchu has been so successful because it involved a solid strategic plan and it's a manufacturing facility instead of just R&D," Carlson said.
"That kind of model would give AMD much greater potential for growth."
"Even though people have been skeptical of Tech Valley here, they had a plan and an objective."
"AMD would not have come to this region without Tech Valley."
"It takes time to realize what's visionary and what's not," said Assemblyman Jack McEneny, D-Albany, a local historian.
McEneny feels AMD, added to major nanotechnology investment at the University at Albany and high-tech innovations at RPI and other local college campuses, together with state government funding, could equal a historic development.
"The technology that came out of the Erie Canal made us the Empire State, an empire of commerce and industry through the early 20th-century."
"That entrepreneurial spirit is back now, but we'll have to wait and see if Hector Ruiz is the next Erastus Corning or Stephen Van Rensselaer for our region."
Paul Grondahl can be reached at 454-5623 or by e-mail at pgrondahl@timesunion.com.
Tom Carroll's top 5 area historic developments
1) Harnessing water power for industry at Burden Iron Works, Troy
2) Erie Canal, Albany to Buffalo
3) Thomas Edison's decision to move General Electric to Schenectady
4) Voyage of Henry Hudson signals European arrival
5) Growth of higher education infra-structure, Union College, Schenectady
"New Yorker consumers glum"
October 10, 2008 at 9:20 am by Cathy Woodruff, Business writer, Albany, New York Times Union
New Yorkers weren’t showing the same optimism about their economic condition as the nation as a whole in September, according to the consumer confidence survey out today from the Siena Research Institute.
Consumer confidence in New York declined 1.9 points in September, while it rose nationally by 7.3 percent.
And, at a total rating of 56.3, New York’s consumer confidence is 14 points below the nation’s 70.3 level.
“Nationally, September’s numbers rebounded, but here at home, New Yorkers failed to muster any sort of rally,” said Douglas Lonnstrom, the research institute’s founding director and a professor of statistics and finance at Siena College in Loudonville.
“And really, it is far more alarming."
"We’re down, and falling behind national confidence, and most of these interviews were conducted before the end-0f-September financial crisis,” he added.
“With Wall Street reeling, Main Street bracing and kitchen tables dreading red 401(k) statements, next month’s numbers will likely be lower.”
October 10, 2008 at 9:20 am by Cathy Woodruff, Business writer, Albany, New York Times Union
New Yorkers weren’t showing the same optimism about their economic condition as the nation as a whole in September, according to the consumer confidence survey out today from the Siena Research Institute.
Consumer confidence in New York declined 1.9 points in September, while it rose nationally by 7.3 percent.
And, at a total rating of 56.3, New York’s consumer confidence is 14 points below the nation’s 70.3 level.
“Nationally, September’s numbers rebounded, but here at home, New Yorkers failed to muster any sort of rally,” said Douglas Lonnstrom, the research institute’s founding director and a professor of statistics and finance at Siena College in Loudonville.
“And really, it is far more alarming."
"We’re down, and falling behind national confidence, and most of these interviews were conducted before the end-0f-September financial crisis,” he added.
“With Wall Street reeling, Main Street bracing and kitchen tables dreading red 401(k) statements, next month’s numbers will likely be lower.”
ARE WE BEING SOLD TO THE OIL-RICH ARABS NOW, AS CHATTEL?
"AMD deal needs vote - Empire State Development Corp. must approve transfer of $1.2B state incentive"
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published in print: Sunday, October 12, 2008
ALBANY — New York taxpayers are set to become major financial partners with Advanced Micro Devices Inc., a struggling California company, and a hugely wealthy Middle East emirate in the biggest project in state history.
The deal will result in the state's partners organizing in the Cayman Islands and awarding a $3 million bonus to Hector Ruiz, the former AMD chairman who structured the agreement, according to information not disclosed in a round of news conferences last week.
Yet, in the thick contract between the state and the company, AMD, a one-paragraph term suddenly rises to great importance for the $4.6 billion chip manufacturing plant to be built in Malta.
Under a covenant called "No Assignment," AMD agreed two years ago that it could not transfer the deal it entered into to get a $1.2 billion incentive package from the state … unless the state's economic development arm, Empire State Development Corp., gave its approval.
AMD lawyers say they've begun formal negotiations with ESDC to get the needed authorization.
The goal is to hand off the public financing agreement to a new entity called Foundry Co. as soon as possible.
Foundry will be made up of AMD and its new investment partners, the government of oil-rich Abu Dhabi.
The deal involves purchase of AMD's computer plants by a new organization in Abu Dhabi called Advanced Technology Investment Co.
It would be the majority owner of the proposed New York state-subsidized chip manufacturing facility envisioned for Luther Forest Technology Campus.
Abu Dhabi is sitting on billions of dollars and has begun investing overseas to diversify its petroleum-based economy.
How the emirate's leaders are investing is not always a matter of public record.
AMD disclosed to shareholders late last week in federal securities documents that Foundry will organize in the Cayman Islands.
In addition, Ruiz, the former AMD chairman, will lead Foundry and get a $3 million bonus if the deal is consummated.
State officials are hailing AMD has new partners with deep pockets and decided to go forward with the Saratoga County project, which will create 1,465 jobs.
AMD still needs the state to cooperate by transferring the benefits to Foundry.
"We need written authorization," said Sue Snyder, a lawyer representing AMD, who helped negotiate the grant agreement with the Pataki administration in 2006.
State officials were unsure if the Public Authorities Control Board, another state panel that keeps check on debt, must also approve the deal.
Comptroller Thomas DiNapoli is praising the AMD plan despite his warnings to the state about the cost of its massive debt load.
"The money is being used for infrastructure — long-term debt,'' said Mary Louise Mallock, first deputy comptroller.
She said the "multiplier" effect from the plant should offer a large return on investment.
Snyder, the AMD lawyer, said the "no assignment" condition in the contract is standard in such agreements.
But Gov. George Pataki's negotiators were good enough to offer some flexibility by inserting the exception of allowing a transfer to a new entity if ESDC provides written approval, she said.
The state is being urged by its proposed new partners not to delay a decision, as it has with the background checks and other due diligence related to the still unfinished task of choosing an operator for a proposed racino at Aqueduct Raceway in Queens.
AMD also notes in its federal filings that the state benefit package can't be weakened substantially by the state or the deal won't be acceptable.
"This matter has to be concluded by the end of the year ... so that construction can begin by 2009," said Kevin McAulliffe, another AMD lawyer.
"The goal is to have everything wrapped up in December so we can close by end of the year."
The deal, if it is transferred as expected, calls for the state to sell bonds to raise at least $650 million to finance the AMD-Abu Dhabi project.
Gov. David Paterson remains positive about the project and its new partnership.
The funds include up to $500 million to reimburse the partnership for expenses for real estate, construction, machinery and equipment and $150 million for research and development.
The bond sale would produce new debt and the cost of interest payments to bond investors would be in the tens of millions of dollars each year, likely around $35 million based on borrowing rates available to the state.
The AMD-Abu Dhabi group would get up to another $600 million in tax breaks as part of the incentive deal — reimbursement for sales taxes on about $3 billion in equipment and machinery, and property taxes for the real estate on the 200-acre Malta site the investors propose to purchase.
The project should have no costs in the present budget or next year's budget, said Jeffrey Gordon, a Division of the Budget spokesman.
The ESDC board must vote on transferring the benefits, said Warner Johnston, a spokesman for the agency.
Warner couldn't say when the vote will occur, but ruled out Wednesday's board meeting in Buffalo.
The ESDC is still reviewing what amendments will be necessary to the project's application for Empire Zone credits.
The state's ability to sell bonds at favorable rates in a rocky financial market is uncertain.
The state doesn't have to raise the cash until 90 days after being notified the money is necessary to the project.
AMD must produce invoices for all expenses that are reimbursable.
The bond sale would likely begin next year, perhaps when the markets have settled.
New York state bonds are typically well-received in the market, said Michael Decker, co-chief executive of the Regional Bond Dealers Association in Alexandria, Va.
"There's been a retreat from the market,'' Decker said.
"Is today a good time to sell those bonds?"
"Well, you could do better by waiting awhile."
If many municipalities wait to float debt at the same time, however, the market could get flooded and the state may not be able to capitalize with good rates.
"New York has never had an issue selling bonds and we don't foresee any," said Risa Heller, a Paterson spokeswoman.
AMD spokesman Travis Bullard did not know why the Cayman Islands was preferred for Foundry, although oil-rich nations often use banks in countries that offer favorable tax rates.
U.S. taxes will be paid on Foundry's U.S. operations, he said.
Advanced Technology Investment Co., which will own most of Foundry, is described as a new sovereign wealth fund created by the government of Abu Dhabi to invest in technology companies.
The AMD effort is the company's first relationship since it was formed to invest in technology ventures.
One of the minority owners of the new AMD project is Mubadala, another Abu Dhabi government-owned company that already has an ownership stake in AMD.
Mubadala invests in high technology and aerospace firms and has also invested in oil fields, real estate partnerships and hospitals.
According to The New York Times, Abu Dhabi has become active in investing abroad, sometimes through a fund valued at an estimated $700 billion.
The securities it invests in and the assets it supports are not fully known.
The fund's chairman is Sheik Khalifa bin Zayed al-Nahyan, president of the United Arab Emirates, the ruler of Abu Dhabi.
The president is elected to renewable five-year terms by a body known as the Supreme Council of Rulers, the top policy-making body in the UAE.
James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.
"AMD deal needs vote - Empire State Development Corp. must approve transfer of $1.2B state incentive"
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published in print: Sunday, October 12, 2008
ALBANY — New York taxpayers are set to become major financial partners with Advanced Micro Devices Inc., a struggling California company, and a hugely wealthy Middle East emirate in the biggest project in state history.
The deal will result in the state's partners organizing in the Cayman Islands and awarding a $3 million bonus to Hector Ruiz, the former AMD chairman who structured the agreement, according to information not disclosed in a round of news conferences last week.
Yet, in the thick contract between the state and the company, AMD, a one-paragraph term suddenly rises to great importance for the $4.6 billion chip manufacturing plant to be built in Malta.
Under a covenant called "No Assignment," AMD agreed two years ago that it could not transfer the deal it entered into to get a $1.2 billion incentive package from the state … unless the state's economic development arm, Empire State Development Corp., gave its approval.
AMD lawyers say they've begun formal negotiations with ESDC to get the needed authorization.
The goal is to hand off the public financing agreement to a new entity called Foundry Co. as soon as possible.
Foundry will be made up of AMD and its new investment partners, the government of oil-rich Abu Dhabi.
The deal involves purchase of AMD's computer plants by a new organization in Abu Dhabi called Advanced Technology Investment Co.
It would be the majority owner of the proposed New York state-subsidized chip manufacturing facility envisioned for Luther Forest Technology Campus.
Abu Dhabi is sitting on billions of dollars and has begun investing overseas to diversify its petroleum-based economy.
How the emirate's leaders are investing is not always a matter of public record.
AMD disclosed to shareholders late last week in federal securities documents that Foundry will organize in the Cayman Islands.
In addition, Ruiz, the former AMD chairman, will lead Foundry and get a $3 million bonus if the deal is consummated.
State officials are hailing AMD has new partners with deep pockets and decided to go forward with the Saratoga County project, which will create 1,465 jobs.
AMD still needs the state to cooperate by transferring the benefits to Foundry.
"We need written authorization," said Sue Snyder, a lawyer representing AMD, who helped negotiate the grant agreement with the Pataki administration in 2006.
State officials were unsure if the Public Authorities Control Board, another state panel that keeps check on debt, must also approve the deal.
Comptroller Thomas DiNapoli is praising the AMD plan despite his warnings to the state about the cost of its massive debt load.
"The money is being used for infrastructure — long-term debt,'' said Mary Louise Mallock, first deputy comptroller.
She said the "multiplier" effect from the plant should offer a large return on investment.
Snyder, the AMD lawyer, said the "no assignment" condition in the contract is standard in such agreements.
But Gov. George Pataki's negotiators were good enough to offer some flexibility by inserting the exception of allowing a transfer to a new entity if ESDC provides written approval, she said.
The state is being urged by its proposed new partners not to delay a decision, as it has with the background checks and other due diligence related to the still unfinished task of choosing an operator for a proposed racino at Aqueduct Raceway in Queens.
AMD also notes in its federal filings that the state benefit package can't be weakened substantially by the state or the deal won't be acceptable.
"This matter has to be concluded by the end of the year ... so that construction can begin by 2009," said Kevin McAulliffe, another AMD lawyer.
"The goal is to have everything wrapped up in December so we can close by end of the year."
The deal, if it is transferred as expected, calls for the state to sell bonds to raise at least $650 million to finance the AMD-Abu Dhabi project.
Gov. David Paterson remains positive about the project and its new partnership.
The funds include up to $500 million to reimburse the partnership for expenses for real estate, construction, machinery and equipment and $150 million for research and development.
The bond sale would produce new debt and the cost of interest payments to bond investors would be in the tens of millions of dollars each year, likely around $35 million based on borrowing rates available to the state.
The AMD-Abu Dhabi group would get up to another $600 million in tax breaks as part of the incentive deal — reimbursement for sales taxes on about $3 billion in equipment and machinery, and property taxes for the real estate on the 200-acre Malta site the investors propose to purchase.
The project should have no costs in the present budget or next year's budget, said Jeffrey Gordon, a Division of the Budget spokesman.
The ESDC board must vote on transferring the benefits, said Warner Johnston, a spokesman for the agency.
Warner couldn't say when the vote will occur, but ruled out Wednesday's board meeting in Buffalo.
The ESDC is still reviewing what amendments will be necessary to the project's application for Empire Zone credits.
The state's ability to sell bonds at favorable rates in a rocky financial market is uncertain.
The state doesn't have to raise the cash until 90 days after being notified the money is necessary to the project.
AMD must produce invoices for all expenses that are reimbursable.
The bond sale would likely begin next year, perhaps when the markets have settled.
New York state bonds are typically well-received in the market, said Michael Decker, co-chief executive of the Regional Bond Dealers Association in Alexandria, Va.
"There's been a retreat from the market,'' Decker said.
"Is today a good time to sell those bonds?"
"Well, you could do better by waiting awhile."
If many municipalities wait to float debt at the same time, however, the market could get flooded and the state may not be able to capitalize with good rates.
"New York has never had an issue selling bonds and we don't foresee any," said Risa Heller, a Paterson spokeswoman.
AMD spokesman Travis Bullard did not know why the Cayman Islands was preferred for Foundry, although oil-rich nations often use banks in countries that offer favorable tax rates.
U.S. taxes will be paid on Foundry's U.S. operations, he said.
Advanced Technology Investment Co., which will own most of Foundry, is described as a new sovereign wealth fund created by the government of Abu Dhabi to invest in technology companies.
The AMD effort is the company's first relationship since it was formed to invest in technology ventures.
One of the minority owners of the new AMD project is Mubadala, another Abu Dhabi government-owned company that already has an ownership stake in AMD.
Mubadala invests in high technology and aerospace firms and has also invested in oil fields, real estate partnerships and hospitals.
According to The New York Times, Abu Dhabi has become active in investing abroad, sometimes through a fund valued at an estimated $700 billion.
The securities it invests in and the assets it supports are not fully known.
The fund's chairman is Sheik Khalifa bin Zayed al-Nahyan, president of the United Arab Emirates, the ruler of Abu Dhabi.
The president is elected to renewable five-year terms by a body known as the Supreme Council of Rulers, the top policy-making body in the UAE.
James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.
"OK, it's not an issue"
Albany, New York Times Union
First published in print: Sunday, October 12, 2008
Advanced Micro Devices Inc.'s technology-sharing agreement with rival Intel Corp. and its possible impact on AMD's plans to spin off manufacturing to a new company is a nonstarter, according to AMD.
The issue was brought up repeatedly at a business event with AMD Friday in Saratoga Springs, a day after the Times Union published a story saying that the cross-licensing agreement would be a potential risk to the deal.
"Frankly, it's really a nonissue," said Ward Tisdale, AMD's global manager for community affairs.
"Our lawyers looked at it, and they're bright."
"Nine ways to Sunday, it's really a nonissue."
Albany, New York Times Union
First published in print: Sunday, October 12, 2008
Advanced Micro Devices Inc.'s technology-sharing agreement with rival Intel Corp. and its possible impact on AMD's plans to spin off manufacturing to a new company is a nonstarter, according to AMD.
The issue was brought up repeatedly at a business event with AMD Friday in Saratoga Springs, a day after the Times Union published a story saying that the cross-licensing agreement would be a potential risk to the deal.
"Frankly, it's really a nonissue," said Ward Tisdale, AMD's global manager for community affairs.
"Our lawyers looked at it, and they're bright."
"Nine ways to Sunday, it's really a nonissue."
"Ruiz in line for spinoff spoils - AMD chairman will collect bonus when manufacturing unit deal is completed"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Saturday, October 11, 2008
SARATOGA SPRINGS — Advanced Micro Devices Inc. Chairman Hector Ruiz will get a $3 million bonus if the company successfully spins off its manufacturing operations.
The spinoff is part of a $7.2 billion deal between AMD and the government of Abu Dhabi that will bring a $4.6 billion computer chip factory to Saratoga County.
Ruiz is set to become chairman of the spinoff, a foundry that will make microprocessors for AMD and other companies.
Doug Grose, AMD's head of manufacturing, will become chief executive of the new venture, which is being called The Foundry Co. for now.
Details of the bonus Ruiz stands to receive if the deal goes through were included in a regulatory filing AMD made Friday with the U.S. Securities and Exchange Commission.
As chairman of the spinoff, Ruiz will be paid an annual salary of $1.15 million and will be eligible for an annual bonus up to 400 percent of that salary, an amount that equates to $4.6 million.
"AMD's board of directors sets Hector Ruiz's performance compensation based on achieving objectives critical to AMD's long-term success," AMD spokesman Travis Bullard said Friday.
Although AMD has been extremely secretive until this week about its plans to spin off manufacturing in a strategy called "asset smart," Ruiz has visited Albany three times since June to give state officials updates on the project, including his visit Tuesday to reveal that the new company would move ahead with the New York chip fab by the middle of next year.
One of the conditions of the deal with Abu Dhabi is getting the state to transfer $1.2 billion in economic incentives offered to AMD to The Foundry, something AMD officials have said won't be a problem.
AMD also must receive shareholder approval for the spinoff and must get clearance from the Committee on Foreign Investment in the United States, which checks business transactions with foreign entities for national security concerns.
"These are not insurmountable issues," Ward Tisdale, AMD's global community affairs manager said at a meeting Friday with businesspeople in Saratoga Springs.
"They are routine."
Another detail that was disclosed in Friday's SEC filing is that although The Foundry will be headquartered in Silicon Valley, it is being incorporated as a Cayman Island corporation.
"The use of an international corporate structure is pretty standard for this type of global enterprise and shouldn't be surprising," spokesman Bullard said.
Tisdale, who spoke at the Holiday Inn on Broadway at an event sponsored by The Saratoga County Chamber of Commerce and the Saratoga Economic Development Corp., also answered questions about whether AMD expected any resistance since it is partnering with Abu Dhabi, a Persian Gulf emirate.
"The answer is no," Tisdale said.
"They are very smart, very shrewd, very good businessmen."
"We don't see any issues whatsoever."
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Saturday, October 11, 2008
SARATOGA SPRINGS — Advanced Micro Devices Inc. Chairman Hector Ruiz will get a $3 million bonus if the company successfully spins off its manufacturing operations.
The spinoff is part of a $7.2 billion deal between AMD and the government of Abu Dhabi that will bring a $4.6 billion computer chip factory to Saratoga County.
Ruiz is set to become chairman of the spinoff, a foundry that will make microprocessors for AMD and other companies.
Doug Grose, AMD's head of manufacturing, will become chief executive of the new venture, which is being called The Foundry Co. for now.
Details of the bonus Ruiz stands to receive if the deal goes through were included in a regulatory filing AMD made Friday with the U.S. Securities and Exchange Commission.
As chairman of the spinoff, Ruiz will be paid an annual salary of $1.15 million and will be eligible for an annual bonus up to 400 percent of that salary, an amount that equates to $4.6 million.
"AMD's board of directors sets Hector Ruiz's performance compensation based on achieving objectives critical to AMD's long-term success," AMD spokesman Travis Bullard said Friday.
Although AMD has been extremely secretive until this week about its plans to spin off manufacturing in a strategy called "asset smart," Ruiz has visited Albany three times since June to give state officials updates on the project, including his visit Tuesday to reveal that the new company would move ahead with the New York chip fab by the middle of next year.
One of the conditions of the deal with Abu Dhabi is getting the state to transfer $1.2 billion in economic incentives offered to AMD to The Foundry, something AMD officials have said won't be a problem.
AMD also must receive shareholder approval for the spinoff and must get clearance from the Committee on Foreign Investment in the United States, which checks business transactions with foreign entities for national security concerns.
"These are not insurmountable issues," Ward Tisdale, AMD's global community affairs manager said at a meeting Friday with businesspeople in Saratoga Springs.
"They are routine."
Another detail that was disclosed in Friday's SEC filing is that although The Foundry will be headquartered in Silicon Valley, it is being incorporated as a Cayman Island corporation.
"The use of an international corporate structure is pretty standard for this type of global enterprise and shouldn't be surprising," spokesman Bullard said.
Tisdale, who spoke at the Holiday Inn on Broadway at an event sponsored by The Saratoga County Chamber of Commerce and the Saratoga Economic Development Corp., also answered questions about whether AMD expected any resistance since it is partnering with Abu Dhabi, a Persian Gulf emirate.
"The answer is no," Tisdale said.
"They are very smart, very shrewd, very good businessmen."
"We don't see any issues whatsoever."
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
"Trial begins for Stephentown Highway Superintendent"
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 10:44 a.m., Tuesday, October 14, 2008
TROY — A county court trial began this morning for Stephentown Highway Superintendent Neil Gardner, facing felony counts for purchasing gravel from an illegal mine and submitting alleged forged documents to cover it up.
The non-jury trial before Judge Robert Jacon may run through Thursday, said Gardener's attorney, Thomas Spargo.
Gardner, 52, was indicted in February on 22 counts of first-degree offering a false instrument for filing, 10 counts of first-degree falsifying business records and 12 counts of second-degree criminal possession of a forged instrument, all felonies.
He also is charged with one misdemeanor count of operating a mine without a permit.
He is free on bail and won re-election a year ago despite the allegations.
Gardner's legal road got less bumpy in July when Jacon threw out 20 of 44 felony charges against him for lack of sufficient evidence.
The case is being prosecuted by state Assistant Attorney General Nancy Snyder.
The charges, the result of a state Department of Environmental Conservation investigation, accuses Gardner of falsifying documents filed with the town to conceal his purchase of thousands of cubic yards of sand and gravel for the town from a mine that did not have a state operating permit on property on Route 22 owned by Anthony Cormier.
In October 2006, state investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau, which regularly performed work for the Stephentown Highway Department.
Freeman mined and delivered the gravel and billed the town.
The case began when Freeman sent a bill to the town for $30,715, but the town refused to pay after discovering the mine was illegal, officials have said.
According to the indictment, Gardner also is accused of knowing town records were manipulated in November 2005 to make it look like the gravel came from a legally operated mine run by Troy Sand and Gravel of West Sand Lake.
Gardner still faces felony counts on those charges.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 10:44 a.m., Tuesday, October 14, 2008
TROY — A county court trial began this morning for Stephentown Highway Superintendent Neil Gardner, facing felony counts for purchasing gravel from an illegal mine and submitting alleged forged documents to cover it up.
The non-jury trial before Judge Robert Jacon may run through Thursday, said Gardener's attorney, Thomas Spargo.
Gardner, 52, was indicted in February on 22 counts of first-degree offering a false instrument for filing, 10 counts of first-degree falsifying business records and 12 counts of second-degree criminal possession of a forged instrument, all felonies.
He also is charged with one misdemeanor count of operating a mine without a permit.
He is free on bail and won re-election a year ago despite the allegations.
Gardner's legal road got less bumpy in July when Jacon threw out 20 of 44 felony charges against him for lack of sufficient evidence.
The case is being prosecuted by state Assistant Attorney General Nancy Snyder.
The charges, the result of a state Department of Environmental Conservation investigation, accuses Gardner of falsifying documents filed with the town to conceal his purchase of thousands of cubic yards of sand and gravel for the town from a mine that did not have a state operating permit on property on Route 22 owned by Anthony Cormier.
In October 2006, state investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau, which regularly performed work for the Stephentown Highway Department.
Freeman mined and delivered the gravel and billed the town.
The case began when Freeman sent a bill to the town for $30,715, but the town refused to pay after discovering the mine was illegal, officials have said.
According to the indictment, Gardner also is accused of knowing town records were manipulated in November 2005 to make it look like the gravel came from a legally operated mine run by Troy Sand and Gravel of West Sand Lake.
Gardner still faces felony counts on those charges.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
"Stephentown official denies altering documents"
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 5:45 p.m., Wednesday, October 15, 2008
TROY - Stephentown Highway Superintendent Neil Gardner denied in court Wednesday that he forged documents to cover up illegal gravel purchases for the town.
State Assistant Attorney General Nancy Snyder held up yellow load slips that noted gravel purchased by the town for a few months in 2005 came from a Troy Sand and Gravel mine.
The gravel actually came from a mine on Anthony Cormier's property in town where Cormier was building a home.
"You knew when these were filed with the town clerk that they did not say the gravel came from Cormier's property, yes?" Snyder asked Gardner.
"No ma'am," replied Gardner who was first elected to the post in 1989.
Snyder said that earlier testimony pointed out that Gardner could not read and write and asked him if that was true.
"I can make out some words but I can't read a book or write you an essay," Gardner said.
Snyder handed Gardner one of the load slips, documents that showed how many cubic yards of gravel the town purchased and from where, and asked him to read the source written on it.
After a long pause as he struggled to concentrate, Gardner said, "Troy, sand, gravel."
Gardner, 52, was indicted in February on counts of first-degree offering a false instrument for filing and first-degree falsifying business records, both felonies.
He also is charged with one misdemeanor count of operating a mine without a permit.
He is free on bail and won re-election a year ago despite the allegations.
The non-jury trial before Judge Robert Jacon resumes Thursday.
In October 2006, state Department of Environmental Conservation investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau, which regularly performed work for the Stephentown Highway Department.
Freeman mined and delivered the gravel and billed the town.
Cormier earlier testified that he and Gardner had a verbal agreement for the town to purchase the gravel.
Gardner agreed that was true but said it was common practice for the town to purchase gravel from building sites and said it was allowed out to 120 feet from around the building as long as the owner had a building permit.
"We have been doing it that way for 20 years," Gardner said.
Gardner testified he was given the load slips in an envelope from Freeman, did not look at them and just slipped them under the door of the town clerk's office after hours, something he regularly did.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 5:45 p.m., Wednesday, October 15, 2008
TROY - Stephentown Highway Superintendent Neil Gardner denied in court Wednesday that he forged documents to cover up illegal gravel purchases for the town.
State Assistant Attorney General Nancy Snyder held up yellow load slips that noted gravel purchased by the town for a few months in 2005 came from a Troy Sand and Gravel mine.
The gravel actually came from a mine on Anthony Cormier's property in town where Cormier was building a home.
"You knew when these were filed with the town clerk that they did not say the gravel came from Cormier's property, yes?" Snyder asked Gardner.
"No ma'am," replied Gardner who was first elected to the post in 1989.
Snyder said that earlier testimony pointed out that Gardner could not read and write and asked him if that was true.
"I can make out some words but I can't read a book or write you an essay," Gardner said.
Snyder handed Gardner one of the load slips, documents that showed how many cubic yards of gravel the town purchased and from where, and asked him to read the source written on it.
After a long pause as he struggled to concentrate, Gardner said, "Troy, sand, gravel."
Gardner, 52, was indicted in February on counts of first-degree offering a false instrument for filing and first-degree falsifying business records, both felonies.
He also is charged with one misdemeanor count of operating a mine without a permit.
He is free on bail and won re-election a year ago despite the allegations.
The non-jury trial before Judge Robert Jacon resumes Thursday.
In October 2006, state Department of Environmental Conservation investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau, which regularly performed work for the Stephentown Highway Department.
Freeman mined and delivered the gravel and billed the town.
Cormier earlier testified that he and Gardner had a verbal agreement for the town to purchase the gravel.
Gardner agreed that was true but said it was common practice for the town to purchase gravel from building sites and said it was allowed out to 120 feet from around the building as long as the owner had a building permit.
"We have been doing it that way for 20 years," Gardner said.
Gardner testified he was given the load slips in an envelope from Freeman, did not look at them and just slipped them under the door of the town clerk's office after hours, something he regularly did.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
"Town official guilty of 24 felony counts"
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 5:10 p.m., Friday, October 17, 2008
TROY - Stephentown Highway Superintendent Neil Gardner stood stunned in county court today as a judge found him guilty of two-dozen felony counts for offering forged documents to cover up illegal gravel purchases for the town.
"We are very disappointed," Gardner's attorney Thomas Spargo said outside court.
"He only engaged in conduct that benefited his town and he did not personally benefit from it at all."
Gardner was acquitted of one misdemeanor count of operating a mine without a permit.
State Assistant Attorney General Nancy Snyder, who prosecuted the case, said Gardner faces up to seven years in prison when he is sentenced in December.
Spargo said he plans to appeal.
If the conviction stands, Gardner could lose the elected position he has held since 1985.
After a three-day, non-jury trial, Judge Robert Jacon announced his verdict.
Gardner's family sat behind him as he was found guilty of 12 counts of criminal possession of a forged instrument and 12 counts of offering a forged instrument for filing, both low-level felonies.
In October 2006, state Department of Environmental Conservation investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau.
The firm regularly performed work for the Stephentown Highway Department.
The investigation started when information surfaced that the town was mining gravel from an unpermitted site on the property of Anthony Cormier.
Cormier was building a home and barn on the site and had asked Gardner if the town wanted to buy gravel he needed to get rid of to level his land for construction.
After that allegation surfaced, the town asked Gardner to get Freeman, whose company participated in the mining, to produce load slips verifying the purchases before Cormier could be paid.
The load slips noted the gravel came from a Troy Sand and Gravel mine, not the Cormier property, which led to the felony charges against Gardner and Freeman.
Gardner testified that Freeman handed him an envelope, which he pushed under the door of the town clerk's office.
He said he never looked at the slips and was unaware of the alteration.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
Gardner was freed on his own recognizance pending sentencing.
Attorney General Andrew Cuomo's office gave this statement:
"While acting in his capacity as an elected official, Mr. Gardner demonstrated a complete lack of integrity by engaging in this illegal scheme."
"Public integrity is among my top priorities and this office will continue to crack down on corrupt government officials who fail the people they serve by breaking the law[/u]."
By BOB GARDINIER, Staff writer, Albany, New York Times Union
Last updated: 5:10 p.m., Friday, October 17, 2008
TROY - Stephentown Highway Superintendent Neil Gardner stood stunned in county court today as a judge found him guilty of two-dozen felony counts for offering forged documents to cover up illegal gravel purchases for the town.
"We are very disappointed," Gardner's attorney Thomas Spargo said outside court.
"He only engaged in conduct that benefited his town and he did not personally benefit from it at all."
Gardner was acquitted of one misdemeanor count of operating a mine without a permit.
State Assistant Attorney General Nancy Snyder, who prosecuted the case, said Gardner faces up to seven years in prison when he is sentenced in December.
Spargo said he plans to appeal.
If the conviction stands, Gardner could lose the elected position he has held since 1985.
After a three-day, non-jury trial, Judge Robert Jacon announced his verdict.
Gardner's family sat behind him as he was found guilty of 12 counts of criminal possession of a forged instrument and 12 counts of offering a forged instrument for filing, both low-level felonies.
In October 2006, state Department of Environmental Conservation investigators took records from the offices of the town clerk, Gardner and Russ Freeman of Russ Freeman Excavating Inc. in Nassau.
The firm regularly performed work for the Stephentown Highway Department.
The investigation started when information surfaced that the town was mining gravel from an unpermitted site on the property of Anthony Cormier.
Cormier was building a home and barn on the site and had asked Gardner if the town wanted to buy gravel he needed to get rid of to level his land for construction.
After that allegation surfaced, the town asked Gardner to get Freeman, whose company participated in the mining, to produce load slips verifying the purchases before Cormier could be paid.
The load slips noted the gravel came from a Troy Sand and Gravel mine, not the Cormier property, which led to the felony charges against Gardner and Freeman.
Gardner testified that Freeman handed him an envelope, which he pushed under the door of the town clerk's office.
He said he never looked at the slips and was unaware of the alteration.
Freeman pleaded guilty in Town Court in October 2007 to second-degree offering a false instrument for filing and was fined $1,000.
He died of cancer in December.
Gardner was freed on his own recognizance pending sentencing.
Attorney General Andrew Cuomo's office gave this statement:
"While acting in his capacity as an elected official, Mr. Gardner demonstrated a complete lack of integrity by engaging in this illegal scheme."
"Public integrity is among my top priorities and this office will continue to crack down on corrupt government officials who fail the people they serve by breaking the law[/u]."
HE DIDN'T PAY HIS TAXES, FOLKS, BECAUSE HE IS SO DEDICATED TO MAKING SURE THAT THE "BLIND MAN", NYS GOVERNOR DAVID PATERSON, GETS WHAT HE WANTS ....
HEY, THAT SOUNDS LIKE A PRETTY GOOD EXCUSE TO ME ....
RIGHT UP THERE ON A PAR WITH THE DOG ATE HIS TAX RETURNS BEFORE HE COULD SEND THEM IN ...
And so ...
"Paterson's top aide tax deadbeat - O'Byrne owed $54,121, including outstanding $11,499"
By IRENE JAY LIU AND RICK KARLIN, Capitol bureau, Albany, New York Times Union
First published in print: Saturday, October 18, 2008
ALBANY — A top aide to Gov. David Paterson has been served three warrants for unpaid state income taxes during the last year and a half, totaling $54,121.71 with interest and penalties.
Charles J. O'Byrne, who as secretary to the governor is Paterson's closest and most trusted adviser, has paid off two of the warrants.
He still has an outstanding warrant for $11,499.71, according to records at the Department of State.
"Warrants like this are for failing to pay all or part of the income tax that you owe," said Tom Bergen, spokesman for the state Department of Taxation and Finance.
"We call them 'send' letters,'' he said, adding "we dialogue with the taxpayer."
He stressed that a warrant doesn't imply criminality, or that a person has tried to evade taxes or has lied about his or her income.
Sometimes people simply don't file their taxes on time, or don't pay what they owe.
O'Byrne, who earns $178,500 as Paterson's secretary, could not be reached for comment despite multiple attempts.
Calls and e-mails to the governor's press office seeking comment were not returned.
One warrant, filed in May 2007 for $26,056.76, was satisfied in January.
Another, for $16,565.78, was filed in February of this year and satisfied in June.
A third, amounting to $11,499.71, was filed in October 2007 and remains open.
Warrants typically consist of unpaid personal income taxes, penalties and interest — although the state doesn't make those breakdowns public, Bergen said.
All of the warrants were filed in New York City, where O'Byrne has his primary residence.
Bergen said the state typically has about 500,000 warrants out at any given time.
O'Byrne began working for state government in 2004 as a speechwriter and counsel for the Senate Minority conference; he was hired by Paterson, who was Democratic Minority Leader at the time.
When Paterson was elected lieutenant governor, O'Byrne became his chief of staff, and then rose to the position of secretary when Paterson ascended to the governorship.
Before his career in state service, O'Byrne was a Jesuit priest, a corporate attorney and a speechwriter for Howard Dean's presidential campaign.
O'Byrne is also close to the Kennedy family.
While a student at Columbia Law School, he befriended Stephen Smith Jr., whose mother is John F. Kennedy's sister.
He has received compensation in excess of $1,000 annually as a trustee to the Jean K. Smith and Kym Smith trusts, according to O'Byrne's financial disclosure submitted to the State Ethics Commission.
The specific amount of income is not subject to freedom of information laws.
He has been a trustee for the entities, as well as the Kennedy Smith Foundation and the Smith Family Trust for a number of years, according to financial disclosure forms.
From 2004 to 2007, O'Byrne received additional income outside of his state salary as a nonfiction writer and an attorney providing consulting services.
He is director of Bobblehead LLC, the company that owns the rights to his planned memoir; that book is under contract to Random House, according to disclosure forms.
This matter comes to light at a time when Paterson has feverishly advocated for state fiscal restraint.
He and the Legislature have already made $1.5 billion in cuts to this year's budget.
Paterson has called legislators back for a special session to trim more due to worsening revenue forecasts.
Just last month, the New York Post reported the state Department of Taxation and Finance sent letters to 10,000 small businesses — pizzerias, used-car dealers, and other cash-heavy enterprises — warning those who "fail to collect or timely remit these taxes are subject to civil and criminal penalties."
At least one insider who has worked closely with O'Byrne, and who wished to remain anonymous, said he believed O'Byrne has become so dedicated to working for Paterson that he may have simply forgotten or even failed to file or pay all his taxes.
"Charles's entire life revolves around David, and making sure that the governor gets what he wants,'' he said.
Researchers Sarah J. Hinman and Laurie Northrup contributed to this report.
HEY, THAT SOUNDS LIKE A PRETTY GOOD EXCUSE TO ME ....
RIGHT UP THERE ON A PAR WITH THE DOG ATE HIS TAX RETURNS BEFORE HE COULD SEND THEM IN ...
And so ...
"Paterson's top aide tax deadbeat - O'Byrne owed $54,121, including outstanding $11,499"
By IRENE JAY LIU AND RICK KARLIN, Capitol bureau, Albany, New York Times Union
First published in print: Saturday, October 18, 2008
ALBANY — A top aide to Gov. David Paterson has been served three warrants for unpaid state income taxes during the last year and a half, totaling $54,121.71 with interest and penalties.
Charles J. O'Byrne, who as secretary to the governor is Paterson's closest and most trusted adviser, has paid off two of the warrants.
He still has an outstanding warrant for $11,499.71, according to records at the Department of State.
"Warrants like this are for failing to pay all or part of the income tax that you owe," said Tom Bergen, spokesman for the state Department of Taxation and Finance.
"We call them 'send' letters,'' he said, adding "we dialogue with the taxpayer."
He stressed that a warrant doesn't imply criminality, or that a person has tried to evade taxes or has lied about his or her income.
Sometimes people simply don't file their taxes on time, or don't pay what they owe.
O'Byrne, who earns $178,500 as Paterson's secretary, could not be reached for comment despite multiple attempts.
Calls and e-mails to the governor's press office seeking comment were not returned.
One warrant, filed in May 2007 for $26,056.76, was satisfied in January.
Another, for $16,565.78, was filed in February of this year and satisfied in June.
A third, amounting to $11,499.71, was filed in October 2007 and remains open.
Warrants typically consist of unpaid personal income taxes, penalties and interest — although the state doesn't make those breakdowns public, Bergen said.
All of the warrants were filed in New York City, where O'Byrne has his primary residence.
Bergen said the state typically has about 500,000 warrants out at any given time.
O'Byrne began working for state government in 2004 as a speechwriter and counsel for the Senate Minority conference; he was hired by Paterson, who was Democratic Minority Leader at the time.
When Paterson was elected lieutenant governor, O'Byrne became his chief of staff, and then rose to the position of secretary when Paterson ascended to the governorship.
Before his career in state service, O'Byrne was a Jesuit priest, a corporate attorney and a speechwriter for Howard Dean's presidential campaign.
O'Byrne is also close to the Kennedy family.
While a student at Columbia Law School, he befriended Stephen Smith Jr., whose mother is John F. Kennedy's sister.
He has received compensation in excess of $1,000 annually as a trustee to the Jean K. Smith and Kym Smith trusts, according to O'Byrne's financial disclosure submitted to the State Ethics Commission.
The specific amount of income is not subject to freedom of information laws.
He has been a trustee for the entities, as well as the Kennedy Smith Foundation and the Smith Family Trust for a number of years, according to financial disclosure forms.
From 2004 to 2007, O'Byrne received additional income outside of his state salary as a nonfiction writer and an attorney providing consulting services.
He is director of Bobblehead LLC, the company that owns the rights to his planned memoir; that book is under contract to Random House, according to disclosure forms.
This matter comes to light at a time when Paterson has feverishly advocated for state fiscal restraint.
He and the Legislature have already made $1.5 billion in cuts to this year's budget.
Paterson has called legislators back for a special session to trim more due to worsening revenue forecasts.
Just last month, the New York Post reported the state Department of Taxation and Finance sent letters to 10,000 small businesses — pizzerias, used-car dealers, and other cash-heavy enterprises — warning those who "fail to collect or timely remit these taxes are subject to civil and criminal penalties."
At least one insider who has worked closely with O'Byrne, and who wished to remain anonymous, said he believed O'Byrne has become so dedicated to working for Paterson that he may have simply forgotten or even failed to file or pay all his taxes.
"Charles's entire life revolves around David, and making sure that the governor gets what he wants,'' he said.
Researchers Sarah J. Hinman and Laurie Northrup contributed to this report.
"AMD says deal preserves Intel agreement - Pact essential to plans for Malta chip factory"
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Saturday, October 18, 2008
MALTA — Advanced Micro Devices Inc. says its $7.2 billion deal with the Emirate of Abu Dhabi to spin off manufacturing is structured to preserve a long-standing technology-sharing agreement with rival Intel Corp.
The agreement, which has been in place since the 1970s, is vital to AMD's long-term success, as well as to its plans to build a $4.6 billion computer chip factory at Luther Forest Technology Campus in Malta.
Some analysts also question whether the Intel agreement poses a risk to the Abu Dhabi deal.
The Sunnyvale, Calif., company is spinning off two chip fabs in Germany into a new entity called The Foundry Co. that will make microprocessors for AMD and other companies.
Foundry is planning to build the Luther Forest fab as well.
Essentially, AMD says its agreement with Intel can be extended to AMD's subsidiaries, and technically, Foundry will be treated as an AMD subsidiary.
"We are completely confident the structure of this transaction takes into account our cross-license agreements," AMD spokesman Travis Bullard said.
Under the language of the 2001 agreement, a subsidiary is defined as an entity that is at least 50 percent controlled by AMD.
Foundry will be 44.4 percent owned by AMD and 55.6 percent owned by Advanced Technology Investment Co., an investment fund owned by Abu Dhabi.
However, Foundry's board of directors will be equally split between representatives from AMD and ATIC, which AMD officials say satisfies the definition of subsidiary.
Also, the Intel agreement says that a subsidiary is defined as an entity that distributes no more than 70 percent and no less than 30 percent of its profits to AMD.
Under the agreement with Abu Dhabi, AMD will get 45 percent of Foundry's profits, meaning Foundry falls well within the guidelines for being an AMD subsidiary.
Intel spokesman Chuck Mulloy, asked on Friday if AMD's explanation was satisfactory, said "We certainly need to learn more."
"We may need to ask AMD some questions, too."
"But we're not in a position to block (creation of Foundry)."
"We'll continue to do our research."
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
By LARRY RULISON, Business writer, Albany, New York Times Union
First published in print: Saturday, October 18, 2008
MALTA — Advanced Micro Devices Inc. says its $7.2 billion deal with the Emirate of Abu Dhabi to spin off manufacturing is structured to preserve a long-standing technology-sharing agreement with rival Intel Corp.
The agreement, which has been in place since the 1970s, is vital to AMD's long-term success, as well as to its plans to build a $4.6 billion computer chip factory at Luther Forest Technology Campus in Malta.
Some analysts also question whether the Intel agreement poses a risk to the Abu Dhabi deal.
The Sunnyvale, Calif., company is spinning off two chip fabs in Germany into a new entity called The Foundry Co. that will make microprocessors for AMD and other companies.
Foundry is planning to build the Luther Forest fab as well.
Essentially, AMD says its agreement with Intel can be extended to AMD's subsidiaries, and technically, Foundry will be treated as an AMD subsidiary.
"We are completely confident the structure of this transaction takes into account our cross-license agreements," AMD spokesman Travis Bullard said.
Under the language of the 2001 agreement, a subsidiary is defined as an entity that is at least 50 percent controlled by AMD.
Foundry will be 44.4 percent owned by AMD and 55.6 percent owned by Advanced Technology Investment Co., an investment fund owned by Abu Dhabi.
However, Foundry's board of directors will be equally split between representatives from AMD and ATIC, which AMD officials say satisfies the definition of subsidiary.
Also, the Intel agreement says that a subsidiary is defined as an entity that distributes no more than 70 percent and no less than 30 percent of its profits to AMD.
Under the agreement with Abu Dhabi, AMD will get 45 percent of Foundry's profits, meaning Foundry falls well within the guidelines for being an AMD subsidiary.
Intel spokesman Chuck Mulloy, asked on Friday if AMD's explanation was satisfactory, said "We certainly need to learn more."
"We may need to ask AMD some questions, too."
"But we're not in a position to block (creation of Foundry)."
"We'll continue to do our research."
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
"Aide cites depression in tax flap - Chief of staff who failed to pay taxes on time keeps Paterson support"
By IRENE JAY LIU, Capitol bureau, Albany, New York Times Union
First published in print: Sunday, October 19, 2008
ALBANY — A top aide to Gov. David Paterson attributed his failure to pay state and federal taxes for five years to clinical depression, according to a statement released Saturday.
Charles J. O'Byrne, who is secretary to the governor and Paterson's closest and most trusted adviser, said he has paid more than $200,000 in state and federal taxes, penalties and interest he owes from 2001 through 2005.
"During several periods in my life I have suffered from clinical depression," O'Byrne said in a statement.
"As those who suffer from this disease understand, I became neglectful of certain responsibilities in my personal life."
"This is a part of my past for which I take full responsibility."
The Times Union reported Friday that O'Byrne, who earns $178,500 as Paterson's chief of staff, owed $54,121.71 in state taxes and had been served three warrants for unpaid state income taxes.
A state tax warrant of $11,499.71 remains open, according to state tax records.
O'Byrne also owed about $151,000 to the IRS, the New York Post reported Saturday.
O'Byrne said he disclosed his health history and tax delinquencies to Paterson when he was first employed by the governor in 2004, when Paterson was Senate minority leader.
"From the moment Charles O'Byrne was in the governor's employ, Charles made the governor aware of his health history, his tax delinquencies and later the steps he was taking to fix the situation," said Risa Heller, a Paterson spokeswoman.
"The governor considers this a part of Charles' past for which he has taken full responsibility and all appropriate steps to remedy the situation."
"The governor considers Charles to be an outstanding public servant and has full confidence in him," she said in a statement.
By IRENE JAY LIU, Capitol bureau, Albany, New York Times Union
First published in print: Sunday, October 19, 2008
ALBANY — A top aide to Gov. David Paterson attributed his failure to pay state and federal taxes for five years to clinical depression, according to a statement released Saturday.
Charles J. O'Byrne, who is secretary to the governor and Paterson's closest and most trusted adviser, said he has paid more than $200,000 in state and federal taxes, penalties and interest he owes from 2001 through 2005.
"During several periods in my life I have suffered from clinical depression," O'Byrne said in a statement.
"As those who suffer from this disease understand, I became neglectful of certain responsibilities in my personal life."
"This is a part of my past for which I take full responsibility."
The Times Union reported Friday that O'Byrne, who earns $178,500 as Paterson's chief of staff, owed $54,121.71 in state taxes and had been served three warrants for unpaid state income taxes.
A state tax warrant of $11,499.71 remains open, according to state tax records.
O'Byrne also owed about $151,000 to the IRS, the New York Post reported Saturday.
O'Byrne said he disclosed his health history and tax delinquencies to Paterson when he was first employed by the governor in 2004, when Paterson was Senate minority leader.
"From the moment Charles O'Byrne was in the governor's employ, Charles made the governor aware of his health history, his tax delinquencies and later the steps he was taking to fix the situation," said Risa Heller, a Paterson spokeswoman.
"The governor considers this a part of Charles' past for which he has taken full responsibility and all appropriate steps to remedy the situation."
"The governor considers Charles to be an outstanding public servant and has full confidence in him," she said in a statement.
"36% more join jobless ranks - Retail, hotel, other sectors suffer with late-summer gas price rise"
By ERIC ANDERSON, Deputy Business Editor, Albany, New York Times Union
First published in print: Friday, October 17, 2008
The number of people unemployed but looking for work in the Capital Region jumped 36 percent in a year, the state Labor Department reported Thursday.
The rise in the September jobless rate was propelled by losses in industries that are consumer-driven, including retail, transportation, leisure and hospitality.
"We started to see deterioration when gas prices began to rise," said state labor markets analyst James Ross, commenting on the increase in Capital Region unemployment.
Two sectors with the largest annual job losses — trade, transportation and utilities; and leisure and hospitality — are both heavily dependent on consumer spending, Ross said.
The unemployment rate increased to 5.2 percent in September, a 13-year high for the month, from 3.8 percent a year ago.
The increases came even though the region added jobs, which were at a record high for September of 449,500, up 0.1 percent from 449,100 last year.
Statewide, 5.6 percent of the work force was unemployed in September, up from 4.5 percent a year earlier.
Buffalo's 6.1 percent was the highest among metro areas, while Ithaca's 4.5 percent was the lowest.
The Capital Region's rate was the second lowest among metros.
The number of unemployed people in the Capital Region rose to 23,600 from 17,300 a year ago, the state said.
The mixed picture comes as stock markets swing wildly and consumer spending declines.
Gas lately has been getting less expensive, but the local economy faces other challenges.
"Our big potential downside is state government," Ross said.
"Massachusetts already announced layoffs."
Gov. Deval Patrick on Wednesday announced plans to cut 1,000 jobs from the Massachusetts work force.
Ross said Albany, as the state capital, would feel a disproportionate impact from similar cutbacks in New York.
Meanwhile, Advanced Micro Devices Inc.'s announcement last week that it will proceed with construction of a $4.6 billion semiconductor plant in Malta should lift the local economy next year, Ross said.
Dan Gentile, executive director of the Capital Region Workforce Investment Board, which provides training, counseling and other services for job seekers, described the economic outlook and its impact on jobs as "a real mixed bag.
"I have seen a slight uptick in closings and layoffs, and that's a trend we haven't seen in 10 years in the area," Gentile said.
"We're also focusing on AMD coming to town ... and concerns that we don't have enough workers."
Gentile said he has seen cutbacks scattered around the region, including the layoffs this week at the Pepsi Bottling plant in Latham that will leave 20 employees without jobs.
At the same time, the expansion in high-tech manufacturing is boosting demand for skilled workers, he said.
In addition to AMD, GE Healthcare is nearing completion of a new digital imaging plant at the Rensselaer Technology Park in North Greenbush.
The outlook for the rest of the year is uncertain.
Ross said that, with the uncertain economy, "seasonal gains likely will be much less than we've seen historically," in such areas as retail trade.
Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.
Mixed directions
The number of Capital Region jobs increased over the past year, but so did the number of people out of work.
Jobs: Up 0.1 percent to a record for September of 449,500.
Unemployed: 23,600, up 36 percent from last year.
Unemployment rate: 5.2 percent, a 13-year high, up from 3.8 percent.
By ERIC ANDERSON, Deputy Business Editor, Albany, New York Times Union
First published in print: Friday, October 17, 2008
The number of people unemployed but looking for work in the Capital Region jumped 36 percent in a year, the state Labor Department reported Thursday.
The rise in the September jobless rate was propelled by losses in industries that are consumer-driven, including retail, transportation, leisure and hospitality.
"We started to see deterioration when gas prices began to rise," said state labor markets analyst James Ross, commenting on the increase in Capital Region unemployment.
Two sectors with the largest annual job losses — trade, transportation and utilities; and leisure and hospitality — are both heavily dependent on consumer spending, Ross said.
The unemployment rate increased to 5.2 percent in September, a 13-year high for the month, from 3.8 percent a year ago.
The increases came even though the region added jobs, which were at a record high for September of 449,500, up 0.1 percent from 449,100 last year.
Statewide, 5.6 percent of the work force was unemployed in September, up from 4.5 percent a year earlier.
Buffalo's 6.1 percent was the highest among metro areas, while Ithaca's 4.5 percent was the lowest.
The Capital Region's rate was the second lowest among metros.
The number of unemployed people in the Capital Region rose to 23,600 from 17,300 a year ago, the state said.
The mixed picture comes as stock markets swing wildly and consumer spending declines.
Gas lately has been getting less expensive, but the local economy faces other challenges.
"Our big potential downside is state government," Ross said.
"Massachusetts already announced layoffs."
Gov. Deval Patrick on Wednesday announced plans to cut 1,000 jobs from the Massachusetts work force.
Ross said Albany, as the state capital, would feel a disproportionate impact from similar cutbacks in New York.
Meanwhile, Advanced Micro Devices Inc.'s announcement last week that it will proceed with construction of a $4.6 billion semiconductor plant in Malta should lift the local economy next year, Ross said.
Dan Gentile, executive director of the Capital Region Workforce Investment Board, which provides training, counseling and other services for job seekers, described the economic outlook and its impact on jobs as "a real mixed bag.
"I have seen a slight uptick in closings and layoffs, and that's a trend we haven't seen in 10 years in the area," Gentile said.
"We're also focusing on AMD coming to town ... and concerns that we don't have enough workers."
Gentile said he has seen cutbacks scattered around the region, including the layoffs this week at the Pepsi Bottling plant in Latham that will leave 20 employees without jobs.
At the same time, the expansion in high-tech manufacturing is boosting demand for skilled workers, he said.
In addition to AMD, GE Healthcare is nearing completion of a new digital imaging plant at the Rensselaer Technology Park in North Greenbush.
The outlook for the rest of the year is uncertain.
Ross said that, with the uncertain economy, "seasonal gains likely will be much less than we've seen historically," in such areas as retail trade.
Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.
Mixed directions
The number of Capital Region jobs increased over the past year, but so did the number of people out of work.
Jobs: Up 0.1 percent to a record for September of 449,500.
Unemployed: 23,600, up 36 percent from last year.
Unemployment rate: 5.2 percent, a 13-year high, up from 3.8 percent.
"NYSUT's lesson in politics - Teachers union poised to announce endorsements of 30 state Senate Republicans and 5 Democrats"
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published in print: Monday, October 20, 2008
New York State United Teachers is preparing to announce today endorsements of 30 state Senate Republican incumbents and five Senate Democrats for re-election in a move that may be helpful to both parties in their clash for control of the upper chamber of the Legislature and harmful to any effort to close a budget deficit through education aid cuts.
The heavily armed NYSUT, with 600,000 members and millions in campaign dollars, on Sunday was still counting votes of its 70-member board regarding the endorsements of Democratic Senators Malcolm Smith, the minority leader; Craig Johnson, William Stachowski, David Valesky and Jeff Klein.
But the trend seemed in favor of supporting their return to office following a positive vote for supporting all 30 Senate GOP incumbents, said Alan Lubin, executive vice president of NYSUT.
Balloting began Wednesday on the GOP slate and Friday on the Democrats.
Voting is to be completed by today.
The union, furious at the Senate GOP for voting in favor of property tax caps aimed at retarding the growth of school budgets, had proposed to remain neutral this year in the Senate races.
That plan was scuttled after Senate Majority Leader Dean Skelos, R-Rockville Centre, promised in a series of public statements recently to block any attempts by the Gov. David Paterson's administration to reduce education aid as a way to shore up a yawning budget deficit.
Paterson has estimated this year's shortfall at $2 billion.
Smith followed up Skelos' pledge of guarding against midyear cuts by announcing that Senate Democrats "are not cutting education funding" and criticized "politician Dean Skelos and the Republican-controlled Senate," saying they are protecting special interests instead of taxpayers.
Lubin said both sides got a chance to discuss their plans for education aid with the union in recent days.
"It was an open door,'' Lubin said.
"We were reaching out both ways."
He said Skelos' stand against reductions to K-12 and higher-education spending convinced the union it was time to revisit its endorsement positions.
Discussions were conducted with Skelos, Smith and individual senators.
The endorsements could prove helpful to the Republicans.
The union already had endorsed Assemblyman Roy McDonald, R-Wilton, who is seeking the seat vacated by state Sen. Joseph L. Bruno, R-Brunswick, because the Assembly never voted on the property tax cap legislation and McDonald didn't support it either, Lubin said.
The union, which has been generous to Assembly Democrats, also is expected to endorse the Democrat seeking McDonald's Assembly seat - Ian McGaughey of Wilton and one other Assembly candidate today, Lubin said.
"It's more backward thinking," said Democrat Mike Russo, who is challenging McDonald in the Senate race.
"I think NYSUT wants to keep the Senate Republicans" in control.
He said the union's backing is valuable because of its size and money.
Sen. Hugh Farley, R-Niskayuna, said the endorsement "is important."
It puts Republicans in the position of being against tax increases, against state employee layoffs, in favor of property tax caps and opposed to midyear education cuts.
"Something's got to give," said E.J. McMahon, executive director of the Manhattan Institute's Empire Center for New York State Policy.
If the state budget deficit exceeds $2 billion, he said, Republicans may have to do some things they don't want to.
Farley said the shortfall should be closed with greater emphasis on Medicaid fraud prevention.
As much as $4 billion could be saved by cracking down more aggressively on the Medicaid abuses, he said.
By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
First published in print: Monday, October 20, 2008
New York State United Teachers is preparing to announce today endorsements of 30 state Senate Republican incumbents and five Senate Democrats for re-election in a move that may be helpful to both parties in their clash for control of the upper chamber of the Legislature and harmful to any effort to close a budget deficit through education aid cuts.
The heavily armed NYSUT, with 600,000 members and millions in campaign dollars, on Sunday was still counting votes of its 70-member board regarding the endorsements of Democratic Senators Malcolm Smith, the minority leader; Craig Johnson, William Stachowski, David Valesky and Jeff Klein.
But the trend seemed in favor of supporting their return to office following a positive vote for supporting all 30 Senate GOP incumbents, said Alan Lubin, executive vice president of NYSUT.
Balloting began Wednesday on the GOP slate and Friday on the Democrats.
Voting is to be completed by today.
The union, furious at the Senate GOP for voting in favor of property tax caps aimed at retarding the growth of school budgets, had proposed to remain neutral this year in the Senate races.
That plan was scuttled after Senate Majority Leader Dean Skelos, R-Rockville Centre, promised in a series of public statements recently to block any attempts by the Gov. David Paterson's administration to reduce education aid as a way to shore up a yawning budget deficit.
Paterson has estimated this year's shortfall at $2 billion.
Smith followed up Skelos' pledge of guarding against midyear cuts by announcing that Senate Democrats "are not cutting education funding" and criticized "politician Dean Skelos and the Republican-controlled Senate," saying they are protecting special interests instead of taxpayers.
Lubin said both sides got a chance to discuss their plans for education aid with the union in recent days.
"It was an open door,'' Lubin said.
"We were reaching out both ways."
He said Skelos' stand against reductions to K-12 and higher-education spending convinced the union it was time to revisit its endorsement positions.
Discussions were conducted with Skelos, Smith and individual senators.
The endorsements could prove helpful to the Republicans.
The union already had endorsed Assemblyman Roy McDonald, R-Wilton, who is seeking the seat vacated by state Sen. Joseph L. Bruno, R-Brunswick, because the Assembly never voted on the property tax cap legislation and McDonald didn't support it either, Lubin said.
The union, which has been generous to Assembly Democrats, also is expected to endorse the Democrat seeking McDonald's Assembly seat - Ian McGaughey of Wilton and one other Assembly candidate today, Lubin said.
"It's more backward thinking," said Democrat Mike Russo, who is challenging McDonald in the Senate race.
"I think NYSUT wants to keep the Senate Republicans" in control.
He said the union's backing is valuable because of its size and money.
Sen. Hugh Farley, R-Niskayuna, said the endorsement "is important."
It puts Republicans in the position of being against tax increases, against state employee layoffs, in favor of property tax caps and opposed to midyear education cuts.
"Something's got to give," said E.J. McMahon, executive director of the Manhattan Institute's Empire Center for New York State Policy.
If the state budget deficit exceeds $2 billion, he said, Republicans may have to do some things they don't want to.
Farley said the shortfall should be closed with greater emphasis on Medicaid fraud prevention.
As much as $4 billion could be saved by cracking down more aggressively on the Medicaid abuses, he said.
"Jobless fund going broke - State unemployment claims up 25 percent, federal loan looms"
By RICK KARLIN, Capitol bureau, Albany, New York Times Union
First published in print: Wednesday, October 22, 2008
ALBANY — As Wall Street continues to struggle and the overall economy sags, New York's $615 million Unemployment Insurance Trust Fund is on the verge of going broke and is expected to look to Washington for a loan.
With unemployment claims up 25 percent compared with a year ago, when the fund was at $720 million, the coffers could run dry by early next year, officials predict.
At that point, the state will turn to the federal government for a loan to continue payments to the unemployed.
The state unemployment fund is rated as one of five nationwide that are "not solvent,'' which means the reserves are less than three months' worth of payments, according to the National Employment Law Project, a group that follows labor issues.
The others are South Carolina, Indiana, Ohio and Michigan.
The cash-strapped state had to pay the federal government $7 million in interest when the fund needed money in 2006.
And there have been other payments in other troubled times, including the post 9/11 economic slump.
The state avoided interest payments in 2007 when it borrowed $222 million, but interest charges were avoided because the state didn't get a second loan that year and paid off the loan in May, said Leo Rosales, a state Department of Labor spokesman.
"It's something we expect," Rosales said, referring to turning to the federal government for loan to pay benefits.
If the fund runs dry, it doesn't mean people won't get unemployment insurance, he added.
While this wouldn't be the first time New York's unemployment system has been bailed out by Washington, critics believe that chronic under-funding is leading to excess costs over the long-term because the state is exposed to paying interest on the federal loans.
"It's actually a pretty simple problem,'' said Andrew Stettner, deputy director of NELP, who explained that all employers pay into the fund, which is then tapped as needed.
While the unemployment fund hasn't been a major issue with the Legislature in past years, it could be a big topic come January given the looming recession and rising unemployment, which stood at 5.8 percent last month, up from 4.5 percent a year ago.
"I believe we will be revisiting this in the next session,'' said Assemblywoman Susan John, D-Rochester, who last year sponsored a bill that would have increased the amount employers pay and eventually raise the benefit cap to $550 a week and then index it to inflation.
Generally, New York provides up to 26 weeks of unemployment insurance with a cap of $405 a week.
Congress last summer, though, provided for 13-week extension.
Stettner and John believe businesses should pay more unemployment taxes, which are only paid on the first $8,500 of individual earnings and average just over a half percent for all wages.
John noted that New Jersey and Connecticut tax the first $27,700 and $15,000 respectively.
Business interests say they would have to examine how a higher cap would affect them.
And they note that they also pay federal unemployment taxes, which come back in the form of loans as needed.
"They are essentially borrowing their own tax money back,'' said Margaret Moree, director of federal affairs at the state Business Council.
Rick Karlin can be reached at 454-5758 or rkarlin@timesunion.com.
By RICK KARLIN, Capitol bureau, Albany, New York Times Union
First published in print: Wednesday, October 22, 2008
ALBANY — As Wall Street continues to struggle and the overall economy sags, New York's $615 million Unemployment Insurance Trust Fund is on the verge of going broke and is expected to look to Washington for a loan.
With unemployment claims up 25 percent compared with a year ago, when the fund was at $720 million, the coffers could run dry by early next year, officials predict.
At that point, the state will turn to the federal government for a loan to continue payments to the unemployed.
The state unemployment fund is rated as one of five nationwide that are "not solvent,'' which means the reserves are less than three months' worth of payments, according to the National Employment Law Project, a group that follows labor issues.
The others are South Carolina, Indiana, Ohio and Michigan.
The cash-strapped state had to pay the federal government $7 million in interest when the fund needed money in 2006.
And there have been other payments in other troubled times, including the post 9/11 economic slump.
The state avoided interest payments in 2007 when it borrowed $222 million, but interest charges were avoided because the state didn't get a second loan that year and paid off the loan in May, said Leo Rosales, a state Department of Labor spokesman.
"It's something we expect," Rosales said, referring to turning to the federal government for loan to pay benefits.
If the fund runs dry, it doesn't mean people won't get unemployment insurance, he added.
While this wouldn't be the first time New York's unemployment system has been bailed out by Washington, critics believe that chronic under-funding is leading to excess costs over the long-term because the state is exposed to paying interest on the federal loans.
"It's actually a pretty simple problem,'' said Andrew Stettner, deputy director of NELP, who explained that all employers pay into the fund, which is then tapped as needed.
While the unemployment fund hasn't been a major issue with the Legislature in past years, it could be a big topic come January given the looming recession and rising unemployment, which stood at 5.8 percent last month, up from 4.5 percent a year ago.
"I believe we will be revisiting this in the next session,'' said Assemblywoman Susan John, D-Rochester, who last year sponsored a bill that would have increased the amount employers pay and eventually raise the benefit cap to $550 a week and then index it to inflation.
Generally, New York provides up to 26 weeks of unemployment insurance with a cap of $405 a week.
Congress last summer, though, provided for 13-week extension.
Stettner and John believe businesses should pay more unemployment taxes, which are only paid on the first $8,500 of individual earnings and average just over a half percent for all wages.
John noted that New Jersey and Connecticut tax the first $27,700 and $15,000 respectively.
Business interests say they would have to examine how a higher cap would affect them.
And they note that they also pay federal unemployment taxes, which come back in the form of loans as needed.
"They are essentially borrowing their own tax money back,'' said Margaret Moree, director of federal affairs at the state Business Council.
Rick Karlin can be reached at 454-5758 or rkarlin@timesunion.com.
NEW YORK STATE GOVERNOR DAVID PATERSON CAN SPEW BULL**** WITH THE BEST OF THEM, IT SEEMS ...
"NY gov aide owed almost $300K in taxes, penalties"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Wednesday, October 22, 2008
ALBANY -- Gov. David Paterson's embattled chief of staff Charles O'Byrne had to pay nearly $300,000 in overdue state and federal taxes, penalties and interest -- almost $100,000 more than previously reported, O'Byrne's tax attorneys said Wednesday.
The lawyers also said O'Byrne sent a last check for $3,600 to tax officials on Tuesday, days after Paterson's office said all the debts were fully paid.
They said the check cut Tuesday was an intentional overpayment mailed as a precaution to duplicate a September payment that hadn't yet been posted to O'Byrne's account.
The lawyers, Henry Berger and Richard Kestenbaum of Manhattan, released no checks or other records that proved a payment was made in September.
The total was higher than the estimate provided since Saturday by Paterson's office because it reflects a final tally with state and federal tax agencies, according to Paterson spokeswoman Risa Heller.
The lawyers also detailed the mental illness O'Byrne has blamed for his failure to file tax returns from 2001 through 2005.
O'Byrne suffered three bouts of clinical depression and received therapy and medication, but is no longer on medication, they said.
The last occurrence was in late 2006, when Paterson was elected lieutenant governor, and weeks into 2007, when O'Byrne was the lieutenant governor's chief of staff making $178,500 a year.
O'Byrne said he informed Paterson of the debt and illness in 2004 and again in 2007.
Paterson has confirmed that account.
On Wednesday, Paterson's office released a statement by Dr. Howard Kremen, who said he treated O'Byrne for major depressive disorder from early 2001 to 2006, and said O'Byrne has been free of depression since 2006.
That conflicts slightly -- by a few weeks -- from the account by the lawyers who said O'Byrne suffered depression into early 2007.
Kestenbaum, one of O'Byrne's lawyers, said O'Byrne suffered an established "nonfiler syndrome" which he said affects high-functioning professionals and leads to failure to meet financial obligations when suffering clinical depression.
Rhondalee Dean-Royce, a spokeswoman for the American Psychiatric Association, said there is no such disorder or syndrome listed in the Diagnostic and Statistical Manual of Mental Disorders, a standard reference.
At the IRS office in California, they see many cases of accountants and attorneys and other professionals not filing their taxes for reasons ranging from they were too busy, to depression, to family tragedy, said Larry Wright, an IRS spokesman.
But he said he hadn't heard of nonfiler syndrome.
O'Byrne's attorneys said he paid $51,303 in back state taxes, $16,711 in penalties and $12,905 in interest.
He also paid $127,018 in federal taxes, $50,836 in penalties and $34,005 in interest on the federal debt.
O'Byrne didn't file the tax debt on his state ethics forms because he didn't think he had to, said Berger.
But Berger said O'Byrne will amend his form to include the debt.
Under state ethics law, that will avoid any penalty.
O'Byrne, a former Catholic priest who is also a lawyer, said he made the tax payments with loans of $5,000 to $20,000 from his sisters.
He also got loans of $60,000 to $100,000 from friends Jean Kennedy Smith, the sister of Sen. Edward M. Kennedy, and real estate lawyer Brian Krisberg.
The lawyers wouldn't break out the details, but said O'Byrne will pay interest.
O'Byrne's lawyers said no money was accepted from anyone doing business with the state.
The Senate investigations committee is investigating the case.
------
AP Writer Jennifer Peltz contributed to this report from New York City.
"NY gov aide owed almost $300K in taxes, penalties"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Wednesday, October 22, 2008
ALBANY -- Gov. David Paterson's embattled chief of staff Charles O'Byrne had to pay nearly $300,000 in overdue state and federal taxes, penalties and interest -- almost $100,000 more than previously reported, O'Byrne's tax attorneys said Wednesday.
The lawyers also said O'Byrne sent a last check for $3,600 to tax officials on Tuesday, days after Paterson's office said all the debts were fully paid.
They said the check cut Tuesday was an intentional overpayment mailed as a precaution to duplicate a September payment that hadn't yet been posted to O'Byrne's account.
The lawyers, Henry Berger and Richard Kestenbaum of Manhattan, released no checks or other records that proved a payment was made in September.
The total was higher than the estimate provided since Saturday by Paterson's office because it reflects a final tally with state and federal tax agencies, according to Paterson spokeswoman Risa Heller.
The lawyers also detailed the mental illness O'Byrne has blamed for his failure to file tax returns from 2001 through 2005.
O'Byrne suffered three bouts of clinical depression and received therapy and medication, but is no longer on medication, they said.
The last occurrence was in late 2006, when Paterson was elected lieutenant governor, and weeks into 2007, when O'Byrne was the lieutenant governor's chief of staff making $178,500 a year.
O'Byrne said he informed Paterson of the debt and illness in 2004 and again in 2007.
Paterson has confirmed that account.
On Wednesday, Paterson's office released a statement by Dr. Howard Kremen, who said he treated O'Byrne for major depressive disorder from early 2001 to 2006, and said O'Byrne has been free of depression since 2006.
That conflicts slightly -- by a few weeks -- from the account by the lawyers who said O'Byrne suffered depression into early 2007.
Kestenbaum, one of O'Byrne's lawyers, said O'Byrne suffered an established "nonfiler syndrome" which he said affects high-functioning professionals and leads to failure to meet financial obligations when suffering clinical depression.
Rhondalee Dean-Royce, a spokeswoman for the American Psychiatric Association, said there is no such disorder or syndrome listed in the Diagnostic and Statistical Manual of Mental Disorders, a standard reference.
At the IRS office in California, they see many cases of accountants and attorneys and other professionals not filing their taxes for reasons ranging from they were too busy, to depression, to family tragedy, said Larry Wright, an IRS spokesman.
But he said he hadn't heard of nonfiler syndrome.
O'Byrne's attorneys said he paid $51,303 in back state taxes, $16,711 in penalties and $12,905 in interest.
He also paid $127,018 in federal taxes, $50,836 in penalties and $34,005 in interest on the federal debt.
O'Byrne didn't file the tax debt on his state ethics forms because he didn't think he had to, said Berger.
But Berger said O'Byrne will amend his form to include the debt.
Under state ethics law, that will avoid any penalty.
O'Byrne, a former Catholic priest who is also a lawyer, said he made the tax payments with loans of $5,000 to $20,000 from his sisters.
He also got loans of $60,000 to $100,000 from friends Jean Kennedy Smith, the sister of Sen. Edward M. Kennedy, and real estate lawyer Brian Krisberg.
The lawyers wouldn't break out the details, but said O'Byrne will pay interest.
O'Byrne's lawyers said no money was accepted from anyone doing business with the state.
The Senate investigations committee is investigating the case.
------
AP Writer Jennifer Peltz contributed to this report from New York City.
QUOTE(Livyjr @ Oct 22 2008, 04:48 PM) 
NEW YORK STATE GOVERNOR DAVID PATERSON CAN SPEW BULL**** WITH THE BEST OF THEM, IT SEEMS ...
"NY gov aide owed almost $300K in taxes, penalties"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Wednesday, October 22, 2008
ALBANY -- Gov. David Paterson's embattled chief of staff Charles O'Byrne had to pay nearly $300,000 in overdue state and federal taxes, penalties and interest -- almost $100,000 more than previously reported, O'Byrne's tax attorneys said Wednesday.
Kestenbaum, one of O'Byrne's lawyers, said O'Byrne suffered an established "nonfiler syndrome" which he said affects high-functioning professionals and leads to failure to meet financial obligations when suffering clinical depression.
Rhondalee Dean-Royce, a spokeswoman for the American Psychiatric Association, said there is no such disorder or syndrome listed in the Diagnostic and Statistical Manual of Mental Disorders, a standard reference.
At the IRS office in California, they see many cases of accountants and attorneys and other professionals not filing their taxes for reasons ranging from they were too busy, to depression, to family tragedy, said Larry Wright, an IRS spokesman.
But he said he hadn't heard of nonfiler syndrome.
"NY gov aide owed almost $300K in taxes, penalties"
By MICHAEL GORMLEY, Associated Press
Last updated: 6:16 p.m., Wednesday, October 22, 2008
ALBANY -- Gov. David Paterson's embattled chief of staff Charles O'Byrne had to pay nearly $300,000 in overdue state and federal taxes, penalties and interest -- almost $100,000 more than previously reported, O'Byrne's tax attorneys said Wednesday.
Kestenbaum, one of O'Byrne's lawyers, said O'Byrne suffered an established "nonfiler syndrome" which he said affects high-functioning professionals and leads to failure to meet financial obligations when suffering clinical depression.
Rhondalee Dean-Royce, a spokeswoman for the American Psychiatric Association, said there is no such disorder or syndrome listed in the Diagnostic and Statistical Manual of Mental Disorders, a standard reference.
At the IRS office in California, they see many cases of accountants and attorneys and other professionals not filing their taxes for reasons ranging from they were too busy, to depression, to family tragedy, said Larry Wright, an IRS spokesman.
But he said he hadn't heard of nonfiler syndrome.
NEW YORK STATE GOVERNOR DAVID PATERSON IS THE WRONG MAN FOR THE JOB ....
DAVID PATERSON REPRESENTS THE CORRUPT STATUS QUO IN NEW YORK STATE, AS THIS O'BYRNE FIASCO MORE THAN AMPLY DEMONSTRATES ....
HE IS TOO TIED IN TO THE CORRUPTION IN NEW YORK STATE TO BE A LEADER FOR A BETTER, NON-CORRUPT FUTURE ...
And so ...
"Top Paterson aide O'Byrne resigns - Senior adviser William Cunningham III to take on post"
By IRENE JAY LIU , RICK KARLIN and JAMES M. ODATO, Capitol bureau, Albany, New York Times Union
Last updated: 6:06 p.m., Friday, October 24, 2008
Charles O'Byrne, top aide to Gov. David Paterson, is departing the administration after having offered to resign throughout the course of the week.
O'Byrne resigned his position as Secretary to the governor, according to administration sources.
O'Byrne and the Paterson administration have been under fire since last weekend, when it was revealed that O'Byrne owed nearly $300,000 in state and federal back taxes, penalties and interest.
He failed to file tax returns from 2001 to 2005, according to documents released Wednesday.
The decision for O'Byrne to resign was mutual between the secretary and governor, according to a state official.
"There was consensus that his departure was in everyones best interest, including his own," said the official.
"This is the toughest decision (Paterson) has had to make so far ... because it was a personal one," said Democratic strategist Hank Sheinkopf, who heard about O'Byrne's departure this afternoon.
"Charles O'Byrne served his governor well and did what was right so the governor wouldn't be hit with this issue any more."
Senate Majority Leader Dean Skelos released a statement commending the decision, yet continuing to question the governors knowledge of O'Byrne's failure to pay taxes.
"Everyone has an obligation to pay their taxes."
"No one likes to do it, but it is the law and when someone does not comply with the law there are consequences."
"By removing his Chief of Staff Charles O'Byrne, Gov. Paterson took appropriate action today to show that no one, even those serving at the highest levels of government, is above the law," said Skelos.
"Despite the Governor's actions today, questions remain about exactly when the Governor knew about O'Byrne's failure to pay his taxes, and why he chose to do nothing about the matter until it became public this week."
O'Byrne will be replaced, at least in the interim, by William Cunningham III, who is senior adviser to the governor and a longtime friend and colleague of his father, Basil Paterson, according to an administration source.
Paterson named Cunningham as senior adviser in April, not long after Paterson ascended to governor in the wake of Eliot Spitzer's resignation over a prostitution scandal.
In the $170,000 position, Cunningham has served as a sounding board to the governor, vetting ideas and strategies.
A graduate of Williams College and Columbia University School of Law, Cunningham is a former assistant U.S. attorney and was a partner in several law firms.
Basil Paterson and Cunningham worked together at the Long Island-based law firm Meyer, Suozzi, English and Klein.
"Ive known the governor for about 15 years," Cunningham told Newsday in April.
"I got to know David through his dad."
"I'd say one of the things David and I have as a common bond is we both love his parents, Basil and Portia."
"Our paths would cross frequently enough that on Inauguration Day (the governor) asked to speak with me and took me aside."
"I met with him the following week."
O'Byrne settled his $211,860 federal debt in May.
He completed payment Tuesday on $80,920 owed the state, three days after he issued a statement that the debt had been paid.
"A scheme that stretched across the globe - Fraud cases raise questions about the work of attorneys whose clients later faced criminal charges"
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published in print: Sunday, October 26, 2008
SARATOGA SPRINGS — The money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah.
The wealthy investor on the other end of the telephone line listened closely to three men from Saratoga County, including an attorney, who cast themselves as international financiers with access to billions.
The investor, Brent Ferrin, who lives in Park City, Utah, was skeptical.
The men making the pitch were speaking in garbled sentences about Latvian banks, Patriot Act restrictions and shadowy European bank executives who, it would turn out, actually lived in Las Vegas.
But Ferrin played along.
He questioned why the paper work for a major international loan was being handled by a ''personal injury lawyer'' from Saratoga Springs.
The attorney, John M. Hogan Jr., jumped in to defend himself.
''Let me tell you why,'' Hogan said.
''Because I, I am tenacious."
"I don't let go of things when I get my hands onto them."
"I was for, did they say I was an accountant before I was a lawyer?"
"... And did they tell you that ah, I don't like to lose and that I'm a bulldog?"
"That's what people call me.''
Unbeknownst to Hogan and his partners in the deal, Ferrin was recording every word for the FBI.
It wasn't the first time Hogan, 73, a member of a longtime Saratoga Springs law firm, played a role, knowingly or not, in a questionable loan deal, court records show.
But like several upstate New York attorneys who figured in recent federal investigations of real estate and mortgage fraud, Hogan was not charged.
Indeed, a months-long Times Union examination has uncovered instances in which federal authorities investigated the roles of lawyers and other licensed professionals embroiled in schemes involving mortgage or bank fraud, without bringing charges.
It comes as other lawyers and their clients, who have been prosecuted in upstate federal courts, are accusing the Justice Department of being selective in its prosecutions and of failing to pursue potential conspirators due to a mix of whimsical decision-making and limited law enforcement resources.
As the U.S. economy is reeling in the wake of years of sloppy mortgage lending, the government's decision to limit its prosecutions has exposed a gap in law enforcement priorities.
It also highlights a shift in focus by the FBI and Justice Department toward combating terrorism and child pornography.
In June, that issue bubbled up in a federal courtroom in Albany as U.S. District Judge Gary L. Sharpe sentenced two men, Thomas Disonell and Matthew Kupic, to prison for a series of mortgage fraud crimes that could have put them behind bars for much longer than the 24 months they received.
Sharpe reacted strongly as the government sought to credit the men for cooperation that was never used to prosecute anyone else.
''This case caused me to crack an eyebrow,'' Sharpe declared on the bench that day.
''How can they do what they did without the complicity of the lawyers that are involved in the closing?"
"... I'm not oblivious to the fact that the criminal cases filed with the FBI as the investigating agency is almost nil compared to what they were before 9/11."
"I know where their resources are."
"And I'm not attacking that one iota."
"... But I happen to know that the amount of time and energy invested in white-collar fraud in criminal investigations is not what it was prior to 9/11.''
Andrew T. Baxter, acting U.S. attorney for New York's Northern District, while declining to comment on any specific case, said it is not a matter of being selective.
He said that ''attorney-client privilege can make it more difficult to gather evidence.''
''In investigating a fraudulent scheme, a key issue as to every subject is the strength of the evidence of the knowledge of the fraudulent nature of relevant transactions and the criminal intent of those involved,'' Baxter said.
''The fact that a subject of an investigation is a lawyer or licensed professional may affect our ability to prove knowledge and intent.''
Still, the Saratoga County case and others like it have exposed a trend in which people accused of federal fraud-related charges turned to attorneys and other professionals who, unwittingly or not, allegedly helped them complete their crimes.
In 2005, a year after Ferrin recorded his telephone conversation with Hogan, two other men on the conference call that day, Philip Rechnitzer of Clifton Park and Ronald Persaud of Saratoga Springs, were indicted by a federal grand jury in Albany.
The indictment accused them of bilking Ferrin and other investors of more than $1.6 million.
Persaud's wife, Indranie, his ex-wife, Esther, and their son, Shawn, a student at Albany Law School, also were indicted.
The charges allege numerous investors lost money while seeking financing for high-end development projects like theme parks, Caribbean resorts and even a Lake George hotel.
The investors have testified in federal court they believed they were dealing with high-powered financiers who had access to billions of dollars in overseas funding, and not a husband-and-wife team from upstate New York who were having financial troubles.
In 2004, at a time when Esther Persaud was claiming to be the managing director of at least three overseas banks, she listed her job as an office manager and stated she had $50 cash on hand when she filed for bankruptcy in Albany.
Ronald Persaud, whom prosecutors have cast as the ringleader, also filed for bankruptcy that year, claiming assets of under $11,000.
It took place at a time when federal prosecutors say he was fabricating official-looking European bank notes purported to be worth billions of dollars and using those, often with local lawyers at his side, to convince investors to give him money to secure multimillion-dollar loans.
Defense attorneys in the case say lawyers were integral in the deals.
As the ongoing trial of Ronald and Esther Persaud opened two weeks ago, their criminal attorneys cast blame on at least five business attorneys, including Hogan.
Their pitch to the jury in Albany is that lawyers approved documents and wire transfers, and handed over the fraudulent bank notes to investors.
The only attorney charged in connection with the scheme was William Tessitore, who lost his law license and pleaded guilty to bank fraud Aug. 11, admitting he looted $624,000 from his escrow accounts.
Prosecutors agree that the presence of attorneys is exactly why many victims fell for the scheme, but they have been silent on whether any of the other attorneys violated any laws.
In their trial briefs and other court filings in the Persaud case, they make clear that ''the subject fraud was advanced through the assistance of attorneys'' and ''attorney accounts were used to receive alleged wire fraud proceeds.''
According to court records in the case, and the testimony of witnesses at Persaud's trial, Hogan played a key role.
He served as a point of contact for duped investors and attended at least one purported ''closing'' for a loan in Zurich, Switzerland, that never took place.
Also, Hogan's law firm helped Ronald and Esther Persaud file for bankruptcy in 2004.
Early that year, Ronald Persaud listed assets of less than $11,000 and his job as a ''mortgage consultant'' while months later he was posing as an overseas banker during conversations with Hogan and investors.
The bankruptcy documents make no mention of Persaud's purported work as an international financier.
''Hogan, by virtue of his law license and his status as a member in good standing of the bar, gave the outward appearance of legitimacy to the fraud conspiracy,'' according to a government memorandum filed in Persaud's case.
Still, court records and an FBI document shared with the Times Union show Hogan wasn't the only attorney who aided — if unwittingly — in the alleged crimes of Rechnitzer and Persaud.
Anthony Ianniello, a well-known real estate lawyer in Clifton Park, handled the closing on a mortgage in which Persaud's wife, Indranie, a $40,000-a-year postal worker, sharply inflated her income on loan documents so her husband could secretly obtain an $890,000 home in Saratoga Springs.
Ianniello also set up a partnership through which Persaud purchased a $135,000 Porsche coupe a year after filing for bankruptcy, and with the proceeds of his alleged crimes, according to the indictment.
There is no indication that Ianniello knew Indranie Persaud was committing mortgage fraud.
Ianniello declined to comment.
But the Porsche deal raised suspicions of authorities.
A state motor vehicle investigator who examined the Porsche transaction, and Ianniello's files, concluded in a government report that ''the unsatisfactory and illogical explanations provided by the attorney, lead him to the conclusion that the Porsche transaction was 'classic money laundering to hide an asset,' '' according to a memo filed in court by the U.S. Attorney's Office.
Ianniello was never charged.
Last year, Ianniello was called in for an interview with the FBI and federal prosecutors.
He appeared alone.
An FBI report detailing Ianniello's responses to questions indicates he gave carefully worded answers about his dealings with the Persauds, for whom he had handled dozens of real estate transactions.
The FBI report indicates Ianniello said he was unaware Ronald Persaud and his wife had laundered money through Ianniello's private attorney escrow accounts.
''He also did not know why money would be transferred from Latvia,'' the FBI report states.
''Ianiello advised that he never dreamed there was a Latvian bank involved."
"... He did not recall his staff telling him about these transfers."
"... He stated that he was busy and preoccupied.''
Both Ianniello and Hogan are listed as witnesses by the government in the ongoing trial of Ronald, Esther and Shawn Persaud in U.S. District Court in Albany.
It's unclear whether they will testify.
During a conference in court Thursday, U.S. District Judge Thomas J. McAvoy asked prosecutors whether Hogan would be able to testify this week.
The judge told the attorneys that based on what has transpired in the courtroom, including new information that Hogan was allegedly a member of the board of directors of at least one of the shell banks controlled by the Persauds in Scandinavia, that Hogan could put himself in legal jeopardy by testifying.
''He's in danger,'' McAvoy told the attorneys, referring to Hogan.
Assistant U.S. Attorney Thomas A. Capezza responded that the government had not offered Hogan an immunity deal.
''We will have backup witnesses in the event something happens with John Hogan,'' Capezza told the judge.
Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published in print: Sunday, October 26, 2008
SARATOGA SPRINGS — The money was supposed to come from overseas: a $100 million deal to finance a ski resort in Utah.
The wealthy investor on the other end of the telephone line listened closely to three men from Saratoga County, including an attorney, who cast themselves as international financiers with access to billions.
The investor, Brent Ferrin, who lives in Park City, Utah, was skeptical.
The men making the pitch were speaking in garbled sentences about Latvian banks, Patriot Act restrictions and shadowy European bank executives who, it would turn out, actually lived in Las Vegas.
But Ferrin played along.
He questioned why the paper work for a major international loan was being handled by a ''personal injury lawyer'' from Saratoga Springs.
The attorney, John M. Hogan Jr., jumped in to defend himself.
''Let me tell you why,'' Hogan said.
''Because I, I am tenacious."
"I don't let go of things when I get my hands onto them."
"I was for, did they say I was an accountant before I was a lawyer?"
"... And did they tell you that ah, I don't like to lose and that I'm a bulldog?"
"That's what people call me.''
Unbeknownst to Hogan and his partners in the deal, Ferrin was recording every word for the FBI.
It wasn't the first time Hogan, 73, a member of a longtime Saratoga Springs law firm, played a role, knowingly or not, in a questionable loan deal, court records show.
But like several upstate New York attorneys who figured in recent federal investigations of real estate and mortgage fraud, Hogan was not charged.
Indeed, a months-long Times Union examination has uncovered instances in which federal authorities investigated the roles of lawyers and other licensed professionals embroiled in schemes involving mortgage or bank fraud, without bringing charges.
It comes as other lawyers and their clients, who have been prosecuted in upstate federal courts, are accusing the Justice Department of being selective in its prosecutions and of failing to pursue potential conspirators due to a mix of whimsical decision-making and limited law enforcement resources.
As the U.S. economy is reeling in the wake of years of sloppy mortgage lending, the government's decision to limit its prosecutions has exposed a gap in law enforcement priorities.
It also highlights a shift in focus by the FBI and Justice Department toward combating terrorism and child pornography.
In June, that issue bubbled up in a federal courtroom in Albany as U.S. District Judge Gary L. Sharpe sentenced two men, Thomas Disonell and Matthew Kupic, to prison for a series of mortgage fraud crimes that could have put them behind bars for much longer than the 24 months they received.
Sharpe reacted strongly as the government sought to credit the men for cooperation that was never used to prosecute anyone else.
''This case caused me to crack an eyebrow,'' Sharpe declared on the bench that day.
''How can they do what they did without the complicity of the lawyers that are involved in the closing?"
"... I'm not oblivious to the fact that the criminal cases filed with the FBI as the investigating agency is almost nil compared to what they were before 9/11."
"I know where their resources are."
"And I'm not attacking that one iota."
"... But I happen to know that the amount of time and energy invested in white-collar fraud in criminal investigations is not what it was prior to 9/11.''
Andrew T. Baxter, acting U.S. attorney for New York's Northern District, while declining to comment on any specific case, said it is not a matter of being selective.
He said that ''attorney-client privilege can make it more difficult to gather evidence.''
''In investigating a fraudulent scheme, a key issue as to every subject is the strength of the evidence of the knowledge of the fraudulent nature of relevant transactions and the criminal intent of those involved,'' Baxter said.
''The fact that a subject of an investigation is a lawyer or licensed professional may affect our ability to prove knowledge and intent.''
Still, the Saratoga County case and others like it have exposed a trend in which people accused of federal fraud-related charges turned to attorneys and other professionals who, unwittingly or not, allegedly helped them complete their crimes.
In 2005, a year after Ferrin recorded his telephone conversation with Hogan, two other men on the conference call that day, Philip Rechnitzer of Clifton Park and Ronald Persaud of Saratoga Springs, were indicted by a federal grand jury in Albany.
The indictment accused them of bilking Ferrin and other investors of more than $1.6 million.
Persaud's wife, Indranie, his ex-wife, Esther, and their son, Shawn, a student at Albany Law School, also were indicted.
The charges allege numerous investors lost money while seeking financing for high-end development projects like theme parks, Caribbean resorts and even a Lake George hotel.
The investors have testified in federal court they believed they were dealing with high-powered financiers who had access to billions of dollars in overseas funding, and not a husband-and-wife team from upstate New York who were having financial troubles.
In 2004, at a time when Esther Persaud was claiming to be the managing director of at least three overseas banks, she listed her job as an office manager and stated she had $50 cash on hand when she filed for bankruptcy in Albany.
Ronald Persaud, whom prosecutors have cast as the ringleader, also filed for bankruptcy that year, claiming assets of under $11,000.
It took place at a time when federal prosecutors say he was fabricating official-looking European bank notes purported to be worth billions of dollars and using those, often with local lawyers at his side, to convince investors to give him money to secure multimillion-dollar loans.
Defense attorneys in the case say lawyers were integral in the deals.
As the ongoing trial of Ronald and Esther Persaud opened two weeks ago, their criminal attorneys cast blame on at least five business attorneys, including Hogan.
Their pitch to the jury in Albany is that lawyers approved documents and wire transfers, and handed over the fraudulent bank notes to investors.
The only attorney charged in connection with the scheme was William Tessitore, who lost his law license and pleaded guilty to bank fraud Aug. 11, admitting he looted $624,000 from his escrow accounts.
Prosecutors agree that the presence of attorneys is exactly why many victims fell for the scheme, but they have been silent on whether any of the other attorneys violated any laws.
In their trial briefs and other court filings in the Persaud case, they make clear that ''the subject fraud was advanced through the assistance of attorneys'' and ''attorney accounts were used to receive alleged wire fraud proceeds.''
According to court records in the case, and the testimony of witnesses at Persaud's trial, Hogan played a key role.
He served as a point of contact for duped investors and attended at least one purported ''closing'' for a loan in Zurich, Switzerland, that never took place.
Also, Hogan's law firm helped Ronald and Esther Persaud file for bankruptcy in 2004.
Early that year, Ronald Persaud listed assets of less than $11,000 and his job as a ''mortgage consultant'' while months later he was posing as an overseas banker during conversations with Hogan and investors.
The bankruptcy documents make no mention of Persaud's purported work as an international financier.
''Hogan, by virtue of his law license and his status as a member in good standing of the bar, gave the outward appearance of legitimacy to the fraud conspiracy,'' according to a government memorandum filed in Persaud's case.
Still, court records and an FBI document shared with the Times Union show Hogan wasn't the only attorney who aided — if unwittingly — in the alleged crimes of Rechnitzer and Persaud.
Anthony Ianniello, a well-known real estate lawyer in Clifton Park, handled the closing on a mortgage in which Persaud's wife, Indranie, a $40,000-a-year postal worker, sharply inflated her income on loan documents so her husband could secretly obtain an $890,000 home in Saratoga Springs.
Ianniello also set up a partnership through which Persaud purchased a $135,000 Porsche coupe a year after filing for bankruptcy, and with the proceeds of his alleged crimes, according to the indictment.
There is no indication that Ianniello knew Indranie Persaud was committing mortgage fraud.
Ianniello declined to comment.
But the Porsche deal raised suspicions of authorities.
A state motor vehicle investigator who examined the Porsche transaction, and Ianniello's files, concluded in a government report that ''the unsatisfactory and illogical explanations provided by the attorney, lead him to the conclusion that the Porsche transaction was 'classic money laundering to hide an asset,' '' according to a memo filed in court by the U.S. Attorney's Office.
Ianniello was never charged.
Last year, Ianniello was called in for an interview with the FBI and federal prosecutors.
He appeared alone.
An FBI report detailing Ianniello's responses to questions indicates he gave carefully worded answers about his dealings with the Persauds, for whom he had handled dozens of real estate transactions.
The FBI report indicates Ianniello said he was unaware Ronald Persaud and his wife had laundered money through Ianniello's private attorney escrow accounts.
''He also did not know why money would be transferred from Latvia,'' the FBI report states.
''Ianiello advised that he never dreamed there was a Latvian bank involved."
"... He did not recall his staff telling him about these transfers."
"... He stated that he was busy and preoccupied.''
Both Ianniello and Hogan are listed as witnesses by the government in the ongoing trial of Ronald, Esther and Shawn Persaud in U.S. District Court in Albany.
It's unclear whether they will testify.
During a conference in court Thursday, U.S. District Judge Thomas J. McAvoy asked prosecutors whether Hogan would be able to testify this week.
The judge told the attorneys that based on what has transpired in the courtroom, including new information that Hogan was allegedly a member of the board of directors of at least one of the shell banks controlled by the Persauds in Scandinavia, that Hogan could put himself in legal jeopardy by testifying.
''He's in danger,'' McAvoy told the attorneys, referring to Hogan.
Assistant U.S. Attorney Thomas A. Capezza responded that the government had not offered Hogan an immunity deal.
''We will have backup witnesses in the event something happens with John Hogan,'' Capezza told the judge.
Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.
"Fraud cases in region test responsibilities of lawyers - Defendants who say they trusted attorneys raise issue of prosecutorial double standard"
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published in print: Sunday, October 26, 2008
ALBANY — Nine years ago, Mark Slagen fell into financial troubles after the house he shared with his wife, Ann, burned and left them homeless as their insurance coverage ran short.
Slagen, a former police officer and state Inspector General's Office investigator, said an acquaintance introduced them to a mortgage broker, Anthony Andersen, who pledged to help them refinance their way out of trouble.
Slagen would later regret the introduction, which would lead to his being convicted in a felony mortgage fraud scheme.
He cooperated with the FBI and that effort, according to federal prosecutors, helped force Andersen to plead guilty.
Andersen's corrupt deals relied on the work of other licensed professionals, including at least one attorney, James Blendell of Latham, who records show served as the closing agent for many of Andersen's bad deals.
Like other Capital Region attorneys embroiled in the paperwork of mortgage fraud scandals, Blendell was reported to state disciplinary authorities, but never accused of wrongdoing.
Attorneys for Slagen and other people caught up and convicted in the fraud schemes have accused the Justice Department of selective prosecutions.
It all unfolded in early 2001 when Andersen convinced him to "flip" two real estate properties in Troy and Rensselaer, court records show.
It was a crime that involved falsely inflating the value of the homes so the broker, Andersen, could pocket the profits of a mortgage set up to fail.
It was, according to the FBI, a classic mortgage fraud scheme.
''Slagen's responsibilities would be to appear at the closings and sign some paperwork, and that he would be compensated,'' according to his plea agreement.
Looking back, Slagen, who pleaded guilty to a felony but was sentenced to probation because he cooperated with the FBI, said he felt duped by Andersen and Blendell, who was never implicated in any of the crimes for which Slagen and Andersen both were convicted.
Court records and public documents filed in Rensselaer County indicate Blendell handled numerous real estate closings that were part of Andersen's sprawling mortgage fraud scheme.
Andersen, of Holyoke, Mass., and his wife, Lisa Andersen, both pleaded guilty to fraud-related charges and await sentencing.
Prosecutors did not identify Blendell in court documents by name.
Donald T. Kinsella, Slagen's attorney, questioned why his client was singled out when Blendell and at least seven other so-called ''straw purchasers'' in the case, including a police detective, were not charged.
''For some inexplicable reason, the government chose not to prosecute other individuals who were complicit with Mr. Andersen in the far-ranging scheme in which Mr. Slagen was but a limited participant,'' Kinsella wrote in a memo to the judge prior to his client's sentencing.
''Mr. Slagen has provided information to the New York state authorities in this matter, and we expect that at least one professional will be facing sanctions from New York state authorities.''
Blendell did not respond to requests for comment.
Slagen said he questioned Blendell whether his two property deals were legal.
''I brought in a copy of the Public Officer's Law and put it on his desk,'' Slagen said.
''He said to me this is completely legitimate.''
It isn't the only case in which allegations of a prosecutorial double standard have emerged.
Berne Watkins, a Glenmont businessman, partly blames his former business attorney, Michael Kornstein of Albany, for his conviction on fraud charges related to a massive property deal that involved former Urban League Director Aaron Dare, who is in prison for his role.
Watkins, 71, is scheduled to report to federal prison later this month to begin a 9-month sentence for his guilty plea last year in the $8.5 million real estate scheme.
The crimes centered on the sale of three large rental properties Watkins owned in Albany and Schenectady.
At Watkins' sentencing last summer, his defense attorney questioned why others in the deal were not prosecuted.
Kinsella, without naming Kornstein, noted that the attorney had approved a series of phony promissory notes that served as a basis for the federal charges against Dare and Watkins.
There are no allegations Kornstein knew the notes were phony.
''There were others in the case who could've been prosecuted who weren't: an attorney who drafted the documents, including the phony notes,'' Kinsella told a judge.
''I'm not a real estate attorney, but the first time I saw them, just looking at them, they were, obviously, bogus.''
Kornstein declined to comment.
''I trusted my lawyer and if he knew there was something wrong with the documents he should have told me,'' Watkins said.
''I created no words in any of those things.''
Watkins said that after he pleaded guilty and agreed to cooperate, he met with an assistant U.S. Attorney to talk about Kornstein's role.
''The meeting lasted 10 minutes,'' Watkins said.
''He hardly asked a question.''
By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union
First published in print: Sunday, October 26, 2008
ALBANY — Nine years ago, Mark Slagen fell into financial troubles after the house he shared with his wife, Ann, burned and left them homeless as their insurance coverage ran short.
Slagen, a former police officer and state Inspector General's Office investigator, said an acquaintance introduced them to a mortgage broker, Anthony Andersen, who pledged to help them refinance their way out of trouble.
Slagen would later regret the introduction, which would lead to his being convicted in a felony mortgage fraud scheme.
He cooperated with the FBI and that effort, according to federal prosecutors, helped force Andersen to plead guilty.
Andersen's corrupt deals relied on the work of other licensed professionals, including at least one attorney, James Blendell of Latham, who records show served as the closing agent for many of Andersen's bad deals.
Like other Capital Region attorneys embroiled in the paperwork of mortgage fraud scandals, Blendell was reported to state disciplinary authorities, but never accused of wrongdoing.
Attorneys for Slagen and other people caught up and convicted in the fraud schemes have accused the Justice Department of selective prosecutions.
It all unfolded in early 2001 when Andersen convinced him to "flip" two real estate properties in Troy and Rensselaer, court records show.
It was a crime that involved falsely inflating the value of the homes so the broker, Andersen, could pocket the profits of a mortgage set up to fail.
It was, according to the FBI, a classic mortgage fraud scheme.
''Slagen's responsibilities would be to appear at the closings and sign some paperwork, and that he would be compensated,'' according to his plea agreement.
Looking back, Slagen, who pleaded guilty to a felony but was sentenced to probation because he cooperated with the FBI, said he felt duped by Andersen and Blendell, who was never implicated in any of the crimes for which Slagen and Andersen both were convicted.
Court records and public documents filed in Rensselaer County indicate Blendell handled numerous real estate closings that were part of Andersen's sprawling mortgage fraud scheme.
Andersen, of Holyoke, Mass., and his wife, Lisa Andersen, both pleaded guilty to fraud-related charges and await sentencing.
Prosecutors did not identify Blendell in court documents by name.
Donald T. Kinsella, Slagen's attorney, questioned why his client was singled out when Blendell and at least seven other so-called ''straw purchasers'' in the case, including a police detective, were not charged.
''For some inexplicable reason, the government chose not to prosecute other individuals who were complicit with Mr. Andersen in the far-ranging scheme in which Mr. Slagen was but a limited participant,'' Kinsella wrote in a memo to the judge prior to his client's sentencing.
''Mr. Slagen has provided information to the New York state authorities in this matter, and we expect that at least one professional will be facing sanctions from New York state authorities.''
Blendell did not respond to requests for comment.
Slagen said he questioned Blendell whether his two property deals were legal.
''I brought in a copy of the Public Officer's Law and put it on his desk,'' Slagen said.
''He said to me this is completely legitimate.''
It isn't the only case in which allegations of a prosecutorial double standard have emerged.
Berne Watkins, a Glenmont businessman, partly blames his former business attorney, Michael Kornstein of Albany, for his conviction on fraud charges related to a massive property deal that involved former Urban League Director Aaron Dare, who is in prison for his role.
Watkins, 71, is scheduled to report to federal prison later this month to begin a 9-month sentence for his guilty plea last year in the $8.5 million real estate scheme.
The crimes centered on the sale of three large rental properties Watkins owned in Albany and Schenectady.
At Watkins' sentencing last summer, his defense attorney questioned why others in the deal were not prosecuted.
Kinsella, without naming Kornstein, noted that the attorney had approved a series of phony promissory notes that served as a basis for the federal charges against Dare and Watkins.
There are no allegations Kornstein knew the notes were phony.
''There were others in the case who could've been prosecuted who weren't: an attorney who drafted the documents, including the phony notes,'' Kinsella told a judge.
''I'm not a real estate attorney, but the first time I saw them, just looking at them, they were, obviously, bogus.''
Kornstein declined to comment.
''I trusted my lawyer and if he knew there was something wrong with the documents he should have told me,'' Watkins said.
''I created no words in any of those things.''
Watkins said that after he pleaded guilty and agreed to cooperate, he met with an assistant U.S. Attorney to talk about Kornstein's role.
''The meeting lasted 10 minutes,'' Watkins said.
''He hardly asked a question.''
"Wall Street workers leaving NYC for fresh start - Amid downturn, Wall Streeters leaving NYC for smaller firms in other states, overseas"
By VALERIE BAUMAN, Associated Press
Last updated: 2:55 p.m., Sunday, October 26, 2008
ALBANY -- Bankers and brokers looking to escape the financial meltdown are scrambling to relocate their families, possessions and rarified talent far from Wall Street to places such as Florida, Chicago, Milwaukee, Virginia and Asia.
Travis Lacey left investment bank Jeffries & Co. and Wall Street behind in September to work for Baird in Chicago.
He also left behind the nagging sense of worry that had plagued him since his company had started announcing layoffs earlier in the year.
"Anyone in that environment, you never know what's going to happen," Lacey said.
"There are a lot of good bankers that unfortunately are at the wrong place at the wrong time, especially in New York."
Corporate headhunters say Wall Street's malaise will lead to a permanent talent loss for New York.
It could help small boutique firms become bigger players with employees they would never have been able to lure from the city long-regarded as the world's financial capital.
"We're definitely hiring," said Robert Escobio, chief executive officer of Coral Gables, Fla.-based Southern Trust Securities Inc., a broker-dealer and investment banking firm.
"Right now we have the capital, and right now we're looking to expand."
"And I think that's what a lot of boutiques are looking to do, too."
Escobio said in the past few months, one out of every four or five resumes comes from top Wall Street firms -- compared with about one out of 100 in years past.
Former Wall Streeters also tend to bring clients with larger net worth -- another potential long-term blow to firms trying to recover from the meltdown -- so boutiques and middle market firms stand to reap the profits.
In turn they deliver something that's currently elusive on Wall Street: stability.
Jobs in the financial sector can pay anywhere from $100,000 to well into the seven-figure range depending on location, experience and the size of a firm, said Kimberly Bishop, vice chairman of Slayton Search partners, a Chicago-based headhunting firm.
"There's some talent available to some companies that wasn't available before," she said.
Wall Street workers who are thinking about relocating need to be flexible about income, Bishop said.
Some junior Wall Street workers may be able to get more senior positions in smaller firms, getting comparable or better pay.
But many more will make less while benefiting from a cheaper cost of living outside of New York City.
"They are going to make less, most of them," said Kurt Kraeger, the managing director of the New York Office of Robert Walters headhunting firm.
"Even before this (economic downturn), the same type of positions overseas, let's say, did pay about 20 percent less than you would make here ... the people who go to smaller firms, often times the bonuses are smaller."
New York is the top paying state for personal financial advisers, with an average salary of $131,660, according to the U.S. Bureau of Labor statistics.
Colorado followed, paying an average of $119,590, then Massachusetts, with an average pay of $116,170, according to the 2007 occupational employment survey.
Idaho was the lowest paying state for financial advisers, paying an average of $50,980.
West Virginia, North Dakota, Alaska, Nebraska and Kentucky all follow, paying an average below $60,000 a year for the same job.
Middle market and boutique firms are also appealing because they offer increased job responsibility and freedom, said Peter Kies, a managing director at Robert W. Baird, a Milwaukee-based middle market firm.
"As every round of cuts occurred, we got an increasing flow of resumes," Kies said.
"You can have a Wall Street kind of experience and live in Richmond, Milwaukee or Chicago."
Baird has seen roughly 50 percent more applications from Wall Street than they received last year, he said.
European and Asian banks are also seeing the abundance of workers as an opportunity to strengthen their position in the U.S. market.
"I'm noticing that people are willing to work places that they would have hung up on me if I had suggested it a year ago," Kraeger said of his headhunting work.
More bankers are willing to go to Asia than ever before because it is still viewed as an emerging market, said James Constable, owner of Albany Beck Consulting, an English headhunting firm that places financial workers in jobs from London to Singapore.
"Banks (in New York and London) are not looking to add to their work force in the short term," Constable said in an e-mail interview.
"This means that the volume is down, so instead the banks are opting to hire one senior candidate rather than a number of more junior ones."
So far this month, Albany Beck has received 38 percent more resumes from Wall Street candidates willing to work overseas than they did in October of 2007, Constable said.
New York Comptroller Thomas DiNapoli expects 40,000 Wall Street jobs could be lost by the end of the year.
So far he said 13,200 people have lost jobs in New York's financial sector since a year ago.
While some boutiques and middle market firms were hit hard by the economic downturn, larger banks had bought much more of the toxic mortgage-backed assets at the heart of the meltdown.
While headhunting to link new securities jobs with Wall Street casualties is one of the few growth industries these days, it's not easy, said Robin Judson, managing director of Smiths Hanley Associates LLC, a New York City hiring firm.
The finance job market is flooded with highly qualified executives and bankers, but "there aren't enough jobs to go around," Judson said.
By VALERIE BAUMAN, Associated Press
Last updated: 2:55 p.m., Sunday, October 26, 2008
ALBANY -- Bankers and brokers looking to escape the financial meltdown are scrambling to relocate their families, possessions and rarified talent far from Wall Street to places such as Florida, Chicago, Milwaukee, Virginia and Asia.
Travis Lacey left investment bank Jeffries & Co. and Wall Street behind in September to work for Baird in Chicago.
He also left behind the nagging sense of worry that had plagued him since his company had started announcing layoffs earlier in the year.
"Anyone in that environment, you never know what's going to happen," Lacey said.
"There are a lot of good bankers that unfortunately are at the wrong place at the wrong time, especially in New York."
Corporate headhunters say Wall Street's malaise will lead to a permanent talent loss for New York.
It could help small boutique firms become bigger players with employees they would never have been able to lure from the city long-regarded as the world's financial capital.
"We're definitely hiring," said Robert Escobio, chief executive officer of Coral Gables, Fla.-based Southern Trust Securities Inc., a broker-dealer and investment banking firm.
"Right now we have the capital, and right now we're looking to expand."
"And I think that's what a lot of boutiques are looking to do, too."
Escobio said in the past few months, one out of every four or five resumes comes from top Wall Street firms -- compared with about one out of 100 in years past.
Former Wall Streeters also tend to bring clients with larger net worth -- another potential long-term blow to firms trying to recover from the meltdown -- so boutiques and middle market firms stand to reap the profits.
In turn they deliver something that's currently elusive on Wall Street: stability.
Jobs in the financial sector can pay anywhere from $100,000 to well into the seven-figure range depending on location, experience and the size of a firm, said Kimberly Bishop, vice chairman of Slayton Search partners, a Chicago-based headhunting firm.
"There's some talent available to some companies that wasn't available before," she said.
Wall Street workers who are thinking about relocating need to be flexible about income, Bishop said.
Some junior Wall Street workers may be able to get more senior positions in smaller firms, getting comparable or better pay.
But many more will make less while benefiting from a cheaper cost of living outside of New York City.
"They are going to make less, most of them," said Kurt Kraeger, the managing director of the New York Office of Robert Walters headhunting firm.
"Even before this (economic downturn), the same type of positions overseas, let's say, did pay about 20 percent less than you would make here ... the people who go to smaller firms, often times the bonuses are smaller."
New York is the top paying state for personal financial advisers, with an average salary of $131,660, according to the U.S. Bureau of Labor statistics.
Colorado followed, paying an average of $119,590, then Massachusetts, with an average pay of $116,170, according to the 2007 occupational employment survey.
Idaho was the lowest paying state for financial advisers, paying an average of $50,980.
West Virginia, North Dakota, Alaska, Nebraska and Kentucky all follow, paying an average below $60,000 a year for the same job.
Middle market and boutique firms are also appealing because they offer increased job responsibility and freedom, said Peter Kies, a managing director at Robert W. Baird, a Milwaukee-based middle market firm.
"As every round of cuts occurred, we got an increasing flow of resumes," Kies said.
"You can have a Wall Street kind of experience and live in Richmond, Milwaukee or Chicago."
Baird has seen roughly 50 percent more applications from Wall Street than they received last year, he said.
European and Asian banks are also seeing the abundance of workers as an opportunity to strengthen their position in the U.S. market.
"I'm noticing that people are willing to work places that they would have hung up on me if I had suggested it a year ago," Kraeger said of his headhunting work.
More bankers are willing to go to Asia than ever before because it is still viewed as an emerging market, said James Constable, owner of Albany Beck Consulting, an English headhunting firm that places financial workers in jobs from London to Singapore.
"Banks (in New York and London) are not looking to add to their work force in the short term," Constable said in an e-mail interview.
"This means that the volume is down, so instead the banks are opting to hire one senior candidate rather than a number of more junior ones."
So far this month, Albany Beck has received 38 percent more resumes from Wall Street candidates willing to work overseas than they did in October of 2007, Constable said.
New York Comptroller Thomas DiNapoli expects 40,000 Wall Street jobs could be lost by the end of the year.
So far he said 13,200 people have lost jobs in New York's financial sector since a year ago.
While some boutiques and middle market firms were hit hard by the economic downturn, larger banks had bought much more of the toxic mortgage-backed assets at the heart of the meltdown.
While headhunting to link new securities jobs with Wall Street casualties is one of the few growth industries these days, it's not easy, said Robin Judson, managing director of Smiths Hanley Associates LLC, a New York City hiring firm.
The finance job market is flooded with highly qualified executives and bankers, but "there aren't enough jobs to go around," Judson said.
NEW YORK DAILY NEWS DAILY POLITICS BLOG
October 27, 2008, 4:56 PM
Rog Murdock said: John Galt -- I saw those articles and I struggle to understand how some lawyers step so far afield.
JOHN GALT RESPONDS: But Roger Murdock ...
If you can't or won't be prosecuted for what you have done, then where is the "stepping far afield"?
The quick answer is that there isn't any "afield" to step into, at all ...
EVERYTHING GOES, Roger Murdock, if you are a lawyer ...
Not you, particularly ...
You operate by your own internal code of justice, which is in tune with mine ...
But your "breathren" have no limits on them, at all ......
That is what stands out to me in those articles - the lawyers never get prosecuted ....
They get paid to aid and assist the scams, but they don't have to ever face the law, unlike their co-conspirators ...
And that is another irony of that article involving Bush-appointee Gary L. Sharpe in the Northern District of New York ...
In what I believe was the first case that he decided after joining the bench in 2005, Judge Sharpe gave the federal stamp of approval to lawyers in Rensselaer County making disbursements on behalf of clients in aid of violating the law in New York State ...
In other words, lawyers serving as "BAG MEN" ....
With that ruling, Judge Sharpe made Rensselaer County a wide-open county in terms of there being no law enforcement with regard to lawyer participation in land fraud and land scams in Rensselaer County ....
And you notice in one of those articles that the land scams were in fact in Rensselaer County ...
Big surprise that, ain't it?
And so ...
http://www.nydailynews.com/blogs/dailypoli...pen-thread.html
October 27, 2008, 4:56 PM
Rog Murdock said: John Galt -- I saw those articles and I struggle to understand how some lawyers step so far afield.
JOHN GALT RESPONDS: But Roger Murdock ...
If you can't or won't be prosecuted for what you have done, then where is the "stepping far afield"?
The quick answer is that there isn't any "afield" to step into, at all ...
EVERYTHING GOES, Roger Murdock, if you are a lawyer ...
Not you, particularly ...
You operate by your own internal code of justice, which is in tune with mine ...
But your "breathren" have no limits on them, at all ......
That is what stands out to me in those articles - the lawyers never get prosecuted ....
They get paid to aid and assist the scams, but they don't have to ever face the law, unlike their co-conspirators ...
And that is another irony of that article involving Bush-appointee Gary L. Sharpe in the Northern District of New York ...
In what I believe was the first case that he decided after joining the bench in 2005, Judge Sharpe gave the federal stamp of approval to lawyers in Rensselaer County making disbursements on behalf of clients in aid of violating the law in New York State ...
In other words, lawyers serving as "BAG MEN" ....
With that ruling, Judge Sharpe made Rensselaer County a wide-open county in terms of there being no law enforcement with regard to lawyer participation in land fraud and land scams in Rensselaer County ....
And you notice in one of those articles that the land scams were in fact in Rensselaer County ...
Big surprise that, ain't it?
And so ...
http://www.nydailynews.com/blogs/dailypoli...pen-thread.html
DAVID PATERSON HAS NO FORESIGHT ...
AS NYS GOVERNOR, HE SHOULD HAVE SEEN THIS COMING A LONG TIME AGO, AND HE SHOULD HAVE TAKEN STERN STEPS THEN TO PREPARE THE STATE FOR TOUGH TIMES AHEAD ....
BUT DAVID PATERSON DOESN'T HAVE "STERN" IN HIM ....
AND NOW, THANKS TO HIS NEGLIGENCE, IT IS A CRISIS ...
HE'S PART OF THE GO-ALONG-TO-GET-ALONG SET IN ALBANY ...
A PART OF THE STATUS QUO ...
DAVID PATERSON IS MISMANAGING NEW YORK INTO A DEEP FINANCIAL HOLE ....
And so ..
"Paterson: New York's fiscal woes are deepening"
By CAROLYN THOMPSON, Associated Press
Last updated: 5:06 p.m., Monday, October 27, 2008
BUFFALO, N.Y. -- New York state's budget hole may be some $300 million deeper than estimated just three weeks ago Gov. David Paterson suggested Monday on the eve of releasing his latest economic forecast.
"You will find that it is a very dismal and unfortunate situation that we are in," warned Paterson, who is pressing the state Legislature for drastic action when it convenes for an emergency special session next month.
During a stop in Buffalo, Paterson said the deficit for the current fiscal year is nearly $1.5 billion.
Preliminary estimates Oct. 3 put the number at $1.2 billion, prompting Paterson to tell New Yorkers then to prepare for fewer services and potentially higher school and property taxes.
It gets even worse down the road, he said Monday, estimating the gap for 2009-10 will be twice what he thought back in July, when he gave a televised, alarm-sounding address in advance of an earlier round of legislative efforts to close the budget gap.
At that time, the 2009-10 deficit was projected at $6.4 billion.
On Monday, he again ruled no cost-cutting measure out, including layoffs of state employees.
He has asked for $2 billion in spending cuts when the Legislature convenes Nov. 18.
"When you're in that amount of trouble, everything is on the table," he said, "not because you want it to be, but because it's the only way to manage."
"It is a crisis and a crisis means that everyone has to be accountable and everyone has to sacrifice."
Paterson has said he's cut $1.5 billion from the executive branch in the $120 billion state budget and now it's time for lawmakers to bring their proposals to cut spending.
In Rochester Monday, Assembly Speaker Sheldon Silver was asked if there will be cuts in education spending and told reporters, "I don't plan to cut anything."
"I look forward to see what the governor's proposals are, then we will go from there."
Silver acknowledged his proposal for a higher tax on New Yorkers making $1 million or more a year is dead for the session.
The governor and Senate Republican leader Dean Skelos had already said they weren't going to increase taxes, even though the Assembly passed a higher tax on millionaires.
The opposition to a millionaires' tax has strengthened since Wall Street's meltdown, when the number of New Yorkers who would be subject to the increased tax began to shrink.
In Buffalo, Paterson said he doesn't believe it will take much arm-twisting to convince lawmakers of the need to take action to cut the deficit.
"Because of what happened to" Merrill Lynch, AIG, Lehman Bros., Fannie Mae and Freddie Mac, and "because of what happened in terms of the bailout package, I don't think anyone at this point needs a wakeup call," he said.
A spokesman for the state budget office said details about the budget picture to be released Tuesday will help explain the discrepancy between the deficit estimates from earlier this month and now.
------
Associated Press Writer Ben Dobbin in Rochester contributed to this story.
AS NYS GOVERNOR, HE SHOULD HAVE SEEN THIS COMING A LONG TIME AGO, AND HE SHOULD HAVE TAKEN STERN STEPS THEN TO PREPARE THE STATE FOR TOUGH TIMES AHEAD ....
BUT DAVID PATERSON DOESN'T HAVE "STERN" IN HIM ....
AND NOW, THANKS TO HIS NEGLIGENCE, IT IS A CRISIS ...
HE'S PART OF THE GO-ALONG-TO-GET-ALONG SET IN ALBANY ...
A PART OF THE STATUS QUO ...
DAVID PATERSON IS MISMANAGING NEW YORK INTO A DEEP FINANCIAL HOLE ....
And so ..
"Paterson: New York's fiscal woes are deepening"
By CAROLYN THOMPSON, Associated Press
Last updated: 5:06 p.m., Monday, October 27, 2008
BUFFALO, N.Y. -- New York state's budget hole may be some $300 million deeper than estimated just three weeks ago Gov. David Paterson suggested Monday on the eve of releasing his latest economic forecast.
"You will find that it is a very dismal and unfortunate situation that we are in," warned Paterson, who is pressing the state Legislature for drastic action when it convenes for an emergency special session next month.
During a stop in Buffalo, Paterson said the deficit for the current fiscal year is nearly $1.5 billion.
Preliminary estimates Oct. 3 put the number at $1.2 billion, prompting Paterson to tell New Yorkers then to prepare for fewer services and potentially higher school and property taxes.
It gets even worse down the road, he said Monday, estimating the gap for 2009-10 will be twice what he thought back in July, when he gave a televised, alarm-sounding address in advance of an earlier round of legislative efforts to close the budget gap.
At that time, the 2009-10 deficit was projected at $6.4 billion.
On Monday, he again ruled no cost-cutting measure out, including layoffs of state employees.
He has asked for $2 billion in spending cuts when the Legislature convenes Nov. 18.
"When you're in that amount of trouble, everything is on the table," he said, "not because you want it to be, but because it's the only way to manage."
"It is a crisis and a crisis means that everyone has to be accountable and everyone has to sacrifice."
Paterson has said he's cut $1.5 billion from the executive branch in the $120 billion state budget and now it's time for lawmakers to bring their proposals to cut spending.
In Rochester Monday, Assembly Speaker Sheldon Silver was asked if there will be cuts in education spending and told reporters, "I don't plan to cut anything."
"I look forward to see what the governor's proposals are, then we will go from there."
Silver acknowledged his proposal for a higher tax on New Yorkers making $1 million or more a year is dead for the session.
The governor and Senate Republican leader Dean Skelos had already said they weren't going to increase taxes, even though the Assembly passed a higher tax on millionaires.
The opposition to a millionaires' tax has strengthened since Wall Street's meltdown, when the number of New Yorkers who would be subject to the increased tax began to shrink.
In Buffalo, Paterson said he doesn't believe it will take much arm-twisting to convince lawmakers of the need to take action to cut the deficit.
"Because of what happened to" Merrill Lynch, AIG, Lehman Bros., Fannie Mae and Freddie Mac, and "because of what happened in terms of the bailout package, I don't think anyone at this point needs a wakeup call," he said.
A spokesman for the state budget office said details about the budget picture to be released Tuesday will help explain the discrepancy between the deficit estimates from earlier this month and now.
------
Associated Press Writer Ben Dobbin in Rochester contributed to this story.
"State alleges $13.8M in overbilling - Health plan was billed by surgical centers charging higher rate, probe finds"
By CATHLEEN F. CROWLEY, Staff writer, Albany, New York Times Union
First published in print: Tuesday, October 28, 2008
ALBANY — The health plan that insures state employees was allegedly overbilled to the sum of $13.8 million by ambulatory surgical centers, New York officials announced Monday.
The surgical centers billed the New York State Health Insurance Program the "out-of-network" rate — familiar to anyone who has sustained an injury far from home — but waived the 20 percent out-of-network surcharge the patient was supposed to pay.
The practice essentially allowed the centers to charge the state often considerably higher rates without inflicting any extra cost on the patient.
"This practice is a well-known secret,'' said state Civil Service Commissioner Nancy G. Groenwegen.
It also borders on fraud, said state Insurance Superintendent Eric Dinallo.
The second most egregious violator, according to the state, was the Capital Region Ambulatory Surgery Center, a practice run by orthopedic surgeons at the Bone and Joint Center on Washington Avenue in Albany.
The Ambulatory Surgery Center agreed to reimburse the state $2.2 million and pay $22,250 in fines.
As part of the settlement, the center also joined the health plan as an in-network provider.
Dr. James E. Striker, vice president of Capital Region Orthpaedics Group that owns the center, confirmed the group repaid the money in April, but said the billing was not fraudulent.
He would not elaborate.
NYSHIP provides health benefits for 1.2 million state workers, their families and retired state workers at a cost of about $6 billion annually.
The total members' share is $1 billion.
The billing scheme drove up the plan's costs and was unfair to doctors who played by the rules, Groenwegen said.
By eliminating the out-of-network patient fee, the surgical centers dismantled the incentive for patients to stay in-network.
It also forced NYSHIP to pay a more expensive rate, which could be significantly higher than the rate paid by in-network providers.
For example, investigators found that Capital Region Ambulatory Surgery Center charged $25,115 for a surgery that an in-network provider could only charge $1,272 for, according to the Comptroller's Office.
State officials have been aware of the practice, and began investigating in 2007.
In many cases, the doctors are in-network physicians who own the centers.
Auditors from the Comptroller's Office reviewed bills from the 22 surgical centers across the state that bill the most out-of-network fees.
They found that 17 cents on every dollar was an overcharge.
"A surprising 20 of 22 medical providers inappropriately waived out-of-pockets costs for patients and submitted inflated bills to the state totalling some $14 million," said State Comptroller Thomas P. DiNapoli.
"This is only a small sample of the universe of providers."
"… The abuse could be much more widespread.''
There are about 550 surgical centers in the state, according to the Insurance Department.
With the state's finances in turmoil, state auditors are under pressure to reign in loose dollars.
"There is such a push on, given the budget situation, to find money anywhere,'' said Courtney Burke, director of the New York State Health Policy Research Center at the Rockefeller Institute.
"And health care is a big target."
Health care providers have long been complaining that insurance reimbursement rates do not pay a fair amount.
The state Health Department has acknowledged that the reimbursement rates are out of date and have begun the process of revising Medicaid rates, which are often used as a baseline.
Meanwhile, doctors and hospitals look to maximize their revenue.
Four out of the 20 surgical centers noted in the report have settled with the state, repaying a total of $9 million.
The three other clinics are the Endoscopy Center of Long Island, which repaid $3.1 million; the Digestive Health Center of Huntington, $1.3 million; and Day-Op of North Nassau (Great Neck), $1.2 million.
The Day-Op Center of Long Island in Mineola, repaid $1.2 million but could face more enforcement action because it has not agreed to stop waiving out-of-pocket expenses.
Cathleen F. Crowley can be reached at 454-5348 or ccrowley@timesunion.com.
To read the Comptroller's full report, visit the office's Web site at http://www.osc.state.ny.us/
By CATHLEEN F. CROWLEY, Staff writer, Albany, New York Times Union
First published in print: Tuesday, October 28, 2008
ALBANY — The health plan that insures state employees was allegedly overbilled to the sum of $13.8 million by ambulatory surgical centers, New York officials announced Monday.
The surgical centers billed the New York State Health Insurance Program the "out-of-network" rate — familiar to anyone who has sustained an injury far from home — but waived the 20 percent out-of-network surcharge the patient was supposed to pay.
The practice essentially allowed the centers to charge the state often considerably higher rates without inflicting any extra cost on the patient.
"This practice is a well-known secret,'' said state Civil Service Commissioner Nancy G. Groenwegen.
It also borders on fraud, said state Insurance Superintendent Eric Dinallo.
The second most egregious violator, according to the state, was the Capital Region Ambulatory Surgery Center, a practice run by orthopedic surgeons at the Bone and Joint Center on Washington Avenue in Albany.
The Ambulatory Surgery Center agreed to reimburse the state $2.2 million and pay $22,250 in fines.
As part of the settlement, the center also joined the health plan as an in-network provider.
Dr. James E. Striker, vice president of Capital Region Orthpaedics Group that owns the center, confirmed the group repaid the money in April, but said the billing was not fraudulent.
He would not elaborate.
NYSHIP provides health benefits for 1.2 million state workers, their families and retired state workers at a cost of about $6 billion annually.
The total members' share is $1 billion.
The billing scheme drove up the plan's costs and was unfair to doctors who played by the rules, Groenwegen said.
By eliminating the out-of-network patient fee, the surgical centers dismantled the incentive for patients to stay in-network.
It also forced NYSHIP to pay a more expensive rate, which could be significantly higher than the rate paid by in-network providers.
For example, investigators found that Capital Region Ambulatory Surgery Center charged $25,115 for a surgery that an in-network provider could only charge $1,272 for, according to the Comptroller's Office.
State officials have been aware of the practice, and began investigating in 2007.
In many cases, the doctors are in-network physicians who own the centers.
Auditors from the Comptroller's Office reviewed bills from the 22 surgical centers across the state that bill the most out-of-network fees.
They found that 17 cents on every dollar was an overcharge.
"A surprising 20 of 22 medical providers inappropriately waived out-of-pockets costs for patients and submitted inflated bills to the state totalling some $14 million," said State Comptroller Thomas P. DiNapoli.
"This is only a small sample of the universe of providers."
"… The abuse could be much more widespread.''
There are about 550 surgical centers in the state, according to the Insurance Department.
With the state's finances in turmoil, state auditors are under pressure to reign in loose dollars.
"There is such a push on, given the budget situation, to find money anywhere,'' said Courtney Burke, director of the New York State Health Policy Research Center at the Rockefeller Institute.
"And health care is a big target."
Health care providers have long been complaining that insurance reimbursement rates do not pay a fair amount.
The state Health Department has acknowledged that the reimbursement rates are out of date and have begun the process of revising Medicaid rates, which are often used as a baseline.
Meanwhile, doctors and hospitals look to maximize their revenue.
Four out of the 20 surgical centers noted in the report have settled with the state, repaying a total of $9 million.
The three other clinics are the Endoscopy Center of Long Island, which repaid $3.1 million; the Digestive Health Center of Huntington, $1.3 million; and Day-Op of North Nassau (Great Neck), $1.2 million.
The Day-Op Center of Long Island in Mineola, repaid $1.2 million but could face more enforcement action because it has not agreed to stop waiving out-of-pocket expenses.
Cathleen F. Crowley can be reached at 454-5348 or ccrowley@timesunion.com.
To read the Comptroller's full report, visit the office's Web site at http://www.osc.state.ny.us/
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