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Understanding Federal Public Corruption Charges in New York

Understanding Federal Public Corruption Charges in New York

Public corruption charges in New York at the federal level are governed primarily by federal statutes such as the Hobbs Act, the Travel Act, and the federal program bribery statute. These laws make it a crime for public officials to use their position for personal gain through bribery, extortion, or other means. While public corruption cases can be complex, having a basic understanding of the key laws and typical scenarios can help citizens follow these important prosecutions.

The Hobbs Act

The Hobbs Act, 18 U.S.C. § 1951, is one of the main tools federal prosecutors use to go after public corruption in New York and nationwide. Under this law, it is a crime to obstruct, delay, or affect interstate commerce through robbery or extortion. The law defines extortion as obtaining property from another, without their consent, through wrongful use of fear or under color of official right.In public corruption cases, prosecutors often use the “under color of official right” clause to target officials who accept bribes or other benefits in exchange for official action like awarding contracts or approving permits. Unlike regular extortion, the victim does not need to be afraid of negative consequences for refusing to pay. The mere acceptance of a benefit by a public official in exchange for official action can be enough.Some examples of Hobbs Act public corruption cases in New York include:

• The conviction of former New York State Assembly Speaker Sheldon Silver for taking millions in bribes and kickbacks in exchange for taking official actions.
• The conviction of former New York State Senate Majority Leader Dean Skelos and his son for pressuring companies to provide the son with lucrative no-show jobs and consulting fees in exchange for the senator’s help in legislation.
• The conviction of the former head of the New York City correction officers’ union, Norman Seabrook, for directing $60,000 in union funds to a hedge fund manager in exchange for a $60,000 cash kickback.

The Travel Act

The Travel Act, 18 U.S.C. § 1952, is another important tool for federal prosecutors in public corruption cases in New York. This law makes it illegal to travel interstate or use the mail or any facility in interstate commerce to distribute the proceeds of or otherwise promote, manage, establish, or carry on any “unlawful activity.” Bribery and extortion qualify as “unlawful activities” under the Travel Act.By charging this in addition to bribery or extortion, prosecutors can establish federal jurisdiction even if the corrupt transactions occurred entirely within New York. The interstate phone calls, emails, wire transfers, or travel related to the scheme can trigger the Travel Act.For example, former New York State Senator Carl Kruger was convicted under the Travel Act for accepting bribes from real estate developers and a hospital executive. Even though the bribes were paid locally in New York, Kruger discussed them over the phone with contacts in other states.

Federal Program Bribery

The federal program bribery statute, 18 U.S.C. § 666, is a powerful anti-corruption law used frequently in New York public corruption cases. This law makes it a crime to embezzle, steal, or bribe concerning any organization or state/local government agency that receives more than $10,000 in federal funds in a year.Under this statute, prosecutors do not need to prove a direct link between the corruption and federal funds. If the agency as a whole receives over $10,000, that is enough. The law applies to any agent or employee of the organization and targets bribes intended to influence or reward them.This statute has been used in New York to prosecute bribery schemes involving HUD funds, transportation agencies, and other entities that get federal money. For example, former New York State Assemblyman William Boyland was convicted of soliciting bribes from undercover agents posing as businessmen seeking to do business with the state.

Common Defenses in Public Corruption Cases

Those charged with public corruption frequently argue they did not have the required criminal intent. They may claim the benefits they received were legitimate campaign contributions, gifts from friends, or normal political horse-trading not meant as bribes.Another common defense is that the defendant did not actually take any official action in exchange for the benefits. If the prosecution cannot prove a clear quid pro quo, some charges may fail.Defendants may also attack the credibility of any cooperating witnesses, like Jona Rechnitz in the Seabrook case, who testify for the prosecution in exchange for leniency. Juries are instructed to weigh the testimony of cooperating witnesses carefully.Procedural defenses around the statute of limitations or technical flaws in the indictment are also raised. But public corruption cases often succeed or fail based on the strength of the quid pro quo evidence prosecutors can produce.

Penalties and Sentencing Guidelines

Penalties for federal public corruption convictions can be severe. Bribery concerning federal programs under 18 U.S.C. § 666 can be punished by up to 10 years in prison. Violations of the Hobbs Act and Travel Act are punishable by up to 20 years. The actual sentence imposed depends on the federal sentencing guidelines.Factors that can increase sentences under the guidelines include the value of the bribes or kickbacks, the sophistication of the scheme, the defendant’s role as a public official, and prior criminal history. Abuse of positions of trust to facilitate corruption is also considered an aggravating factor.Federal judges have imposed tough sentences in some recent New York public corruption cases. For example, Seabrook and Silver both received over 6 year sentences, while Skelos received 5 years. However, other factors like age, health, and cooperation can lead to lighter sentences.

Recent Public Corruption Reforms in New York

In response to various public corruption scandals, New York has enacted reforms aimed at strengthening ethics laws and rules for state legislators and other officials. Recent changes include:

• Increased financial disclosure requirements for lawmakers and new restrictions on outside income.
• New regulations on spending by independent expenditure committees that support candidates.
• Stricter donation limits for those seeking state contracts and new oversight of grants.
• Creation of a new public campaign financing system and the Joint Commission on Public Ethics to investigate violations.

However, some critics argue additional reforms are still needed to limit the power of special interests in Albany. There are ongoing debates around issues like closing donation loopholes, limiting legislators’ outside income, and improving enforcement.The federal statutes used to combat public corruption provide important tools. But lasting change likely requires strengthening ethics, transparency, and oversight at the state level as well. Ongoing media coverage and public engagement on these issues are important to spur further progress.

Resources

Overview of the Hobbs Act from the Justice Department: https://www.justice.gov/jm/criminal-resource-manual-2402-hobbs-act-under-color-official-rightNew York Times article on the Sheldon Silver case: https://www.nytimes.com/2015/11/30/nyregion/sheldon-silver-guilty-corruption-trial.html​New York Times article on the Dean Skelos corruption case: https://www.nytimes.com/2018/07/17/nyregion/dean-skelos-sentence.htmlCNBC article on the Norman Seabrook case: https://www.cnbc.com/2019/02/08/ex-new-york-jail-union-boss-norman-seabrook-sentenced-to-58-months-in-prison.html​Overview of the Travel Act from the Justice Department: https://www.justice.gov/archives/jm/criminal-resource-manual-2062-travel-act-18-usc-1952​New York Times article on the Carl Kruger case: https://www.nytimes.com/2011/12/21/nyregion/carl-kruger-sentenced-to-7-years-in-corruption-case.htmlOverview of 18 U.S.C. § 666 from the Justice Department: https://www.justice.gov/archives/jm/criminal-resource-manual-2076-18-usc-666-bribery-concerning-programs-receiving-federal-fundsNew York Times article on the William Boyland Jr. case: https://www.nytimes.com/2013/03/01/nyregion/william-boyland-jr-is-found-guilty-of-bribery.html​New York Times article on cooperating witnesses in corruption cases: https://www.nytimes.com/2018/05/04/nyregion/jona-rechnitz-testify-corruption-cases.html​United States Sentencing Commission overview of public corruption punishments: https://www.ussc.gov/sites/default/files/pdf/training/primers/2019_Primer_Public_Corruption.pdf​New York Law Journal article on recent public corruption sentences: https://www.law.com/newyorklawjournal/2018/10/05/public-corruption-sentences-in-new-york-are-harsh-but-are-they-effective/New York Times article on state public corruption reform laws: https://www.nytimes.com/2016/06/18/nyregion/after-corruption-scandals-cuomo-reforms-end-albany-tradition-of-secrets.html