Bruno Trial In November?

by: phillip anderson

Wed Feb 11, 2009 at 11:34:47 AM EST

Bruno trial slated for November

A November trial has been tentatively scheduled for former Senate Majority Leader Joseph L. Bruno, who was indicted by a federal grand jury last month on allegations he made millions of dollars through his senatorial position.

Federal prosecutors on Tuesday told U.S. District Court Judge Gary L. Sharpe they are ready to go to trial in three months.

...

"I can see no realistic way we can go in May," Sharpe said. The judge then outlined a motion schedule that would lead up to a trial he tentatively scheduled to begin Nov. 2. Attorneys in the case said they expect the trial to last about a month.

Oh, and Uncle Joe knew he was under investigation in at least April of 2006, something that he neglected to tell anyone else, namely his constituents or his colleagues in the Senate until December of that year -- ya know, after the election.

Among the documents that were turned over was an FBI report from an April 2006 interview that Bruno had with FBI agents in Albany.

The FBI report, which is known as a ''302,'' is not filed in public records. It allegedly contains notes from at least two FBI agents who interviewed Bruno that spring after he requested to meet with them when he learned of the probe.

The document's existence confirms that Bruno knew roughly three years ago that he was the subject of a federal criminal probe. It also means he waited more than 18 months to publicly disclose the investigation to his senatorial colleagues and the public. Bruno finally went public in December 2007 after his office began receiving questions about the probe from newspaper reporters.

(btw, the TU is simply wrong about the dates here. The story broke in December of 2006, not 2007.)

Anyone want to take bets on whether a trial actually takes place this November?

Bruno Might not Run for Re-election

by: Roatti

Tue May 27, 2008 at 20:30:04 PM EDT

When asked whether he would run for re-election this fall, Bruno responded:

"I am where I am today. Here I am with you, having this delightful conversation and we'll see what life looks like."

When asked if he still enjoyed working in the legislature, Bruno said:

"It's more fun than it was six months ago. I have better feelings about it," he said. "But, I'll tell you, being in government these days, it's a pretty heavy burden, and it takes a toll too."

This is a very interesting statement at this time.  After Bruno outlasted his arch-nemesis Spitzer in state government, one would think he would want to stay for a while.  

This is complete congecture on my part, but I can only think of 2 motives for Joe not to seek his seat again.  One is that he knows the Democrats are going to take the senate and he wants to avoid the ugly leadership fight that will cannibalize the new GOP senate minority caucus in January.  The other is that he is depressed after losing his wife recently and wants to retire.  

I hope it's the former, but either way, a Bruno retirement adds another district to our ever-expanding map of possible takeovers.  

UPDATE: Robina points out in the comments that maybe Bruno also might see himself soon landing in jail as per that federal investigation (how could I forget that???)

NYT: Spitzer Behind Brunogate?

by: Soundpolitic

Mon Mar 24, 2008 at 18:39:52 PM EDT

Via the Front Page of the New York Times and into the Metro Section, the former Governor's claims that he had nothing to do with a "conspiracy" to discredit Bruno are bogus:

The governor has previously said he was not personally involved in the effort, suggesting only that he was vaguely aware that his aides had responded to a reporter's inquiry about Mr. Bruno's travels on state aircraft.

But testimony and other information gathered by the Albany County district attorney, P. David Soares, indicate that the governor's participation was extensive and reflected Mr. Spitzer's intense desire to damage Mr. Bruno, the people with knowledge of the case said.

Sadly, there's more below the fold...

More Good News For Bruno - Feds Investigating Smith Barney Broker

by: phillip anderson

Thu Mar 06, 2008 at 08:27:36 AM EST

Federal investigators are examining the activities of a broker at a local Smith Barney office in Albany in connection with their probe of the Senate Republican majority leader, Joseph Bruno, according to a source.

Investigators, who are looking into Mr. Bruno's work for a Connecticut investment firm that manages millions of dollars of pension fund money for labor unions and contractors, are examining the records of financial advisers who acted as middlemen between the firm and the funds. The activities of the Smith Barney broker in Albany, Mark Caropreso, are a subject of interest of investigators, the source said.

Mr. Caropreso declined to comment.

The broker's father is Anthony Caropreso, a major figure in Albany's labor community - director of labor relations for the Eastern Contractors Association, a trade association of general contractors, subcontractors, suppliers, and service firms.

The younger Mr. Caropreso is on the board of directors for the association, according to the group's Web site.

Ruh-roh.

Good morning, John McArdle!

Write Your Own Punchline: Brunogate And The Ethics School

by: phillip anderson

Mon Feb 11, 2008 at 11:59:42 AM EST

The federal investigation of the Senate majority leader, Joseph L. Bruno, is weighing on a Connecticut school dedicated to teaching ethics.

How's that?

Wright Investors' Service, an investment firm that had employed Mr. Bruno, below, for more than a decade, is largely owned by the School for Ethical Education. John Winthrop Wright, the former chairman and chief executive of Wright Investors' Service, founded the school and left his Wright holdings to it upon his death in 1996. The school has no students of its own but teaches ethics courses to students at institutions ranging from elementary schools to colleges.

Knock yourselves out...

On Bruno: "He's not been accused of anything, and I think that's all we're saying."

by: phillip anderson

Mon Feb 04, 2008 at 11:14:31 AM EST

John McArdle, a spokesman for Mr. Bruno, said: "We've cooperated with the inquiry. He's not been accused of anything, and I think that's all we're saying."

Not exactly the strongest statement from John. I really expect more of our public servants...

Some More On Those Bruno Subpoenas

by: phillip anderson

Mon Feb 04, 2008 at 11:04:41 AM EST

Federal agents have demanded business records from several Albany-area labor unions that have sent tens of millions of dollars to investment firms that employed state Senate Majority Leader Joseph L. Bruno over the past decade, according to labor representatives and other sources.

FBI agents served subpoenas last week on the unions' pension and welfare fund leaders. The unions include Laborers Local 190 and Teamsters Local 294, among others.

The FBI told the labor organizations to produce records involving Wright Investors Service of Milford, Conn., and its holding company, Winthrop Corp., Bruno's longtime employers before his abrupt resignation in December.

The subpoenas, signed by Assistant U.S. Attorney Elizabeth Coombe of the Albany office, also call for any union records involving Bruno and his Brunswick consulting company, Capital Business Consultants. Coombe said Saturday she had no comment.

I think the nature of the relationship between Bruno and Wright/Winthrop can be neatly summed up by this paragraph:

Bruno, the top Republican in the state and majority leader since 1995, served as a business development agent for Wright, or Winthrop Corp., since about the time he took over his leadership post in the Senate.

Nice.

Deconstructing a Dicker Smear

by: phillip anderson

Mon Nov 26, 2007 at 11:14:37 AM EST

FBI TWIST IN SPITZ PROBE

Gov. Spitzer is being blamed for siccing the FBI on Senate Majority Leader Joseph Bruno - after earlier accusations that he unleashed the State Police, and tried to unleash the Internal Revenue Service, on him as well.

Sources close to Bruno told The Post that Senate investigators probing the Dirty Tricks Scandal have turned up what one called "strong indications" that Spitzer tapped his powerful law-enforcement connections last year while still attorney general to push the FBI into investigating the Rensselaer County-based Bruno's private consulting business.

"Sure, we think Spitzer was behind it. He's been behind every other attempt to destroy Joe, and it's all tied in," said a source familiar with Bruno's thinking. Bruno, the state's most powerful Republican, hastily called a press conference last December to announce the FBI probe after learning The Post was about to reveal that several Albany-area officials and business leaders had received federal subpoenas.

First, "Gov. Spitzer is being blamed". Blamed by whom? An unnamed source "familiar with Bruno's thinking." Let's face it, such a source is also likely to blame Spitzer for the weather.

Second, "strong indications." These indications are not elaborated upon at all. In fact, they aren't even mentioned again. Dicker's article contains 12 paragraphs. Only the first three deal in any way with the smear he's trying to advance.

Furthermore, if Bruno's boys had anything better than BS they can feed Dicker and the readers of the Post, don't you think we'd know about it in great detail? Do you really think they'd be so coy?

The rest of the article shows, once again, why it was written in the first place. It's 9 paragraphs of rehashing the various scandals and non-scandals of the past 5 months. It's essentially a vehicle for bringing it all up again with the added bonus of introducing a new and highly implausible smear that doesn't seem to be supported by anyone willing to attach their name to it.

It's Dicker. I know. Normally, I would just let it pass, but what inspired this post was that Liz over at Daily Politics included it in her "News of the Day" this morning by saying "The Senate GOP says it has proof..." when, of course, the Senate GOP said no such thing.

The Soares Report

by: robert.harding

Fri Sep 21, 2007 at 20:54:08 PM EDT

Here are some of the findings:

Furthermore, even assuming an "unauthorized exercise" of "official functions," it does not appear that anyone knew that their "act[s] [were] unauthorized" (Penal Law § 195.00 [1]).  The evidence showed that Dopp was aware that the Executive Chamber had oversight of state aircraft usage.  The evidence further revealed that Dopp was aware of prior scandals involving the abuse of state resources by public officials.  Dopp also knew that the Spitzer Administration implemented the certification policy in January 2007.  Considering all this, it is not unreasonable for Dopp to believe his actions were authorized.  In addition, it is extremely unlikely that the ODA could prove otherwise beyond a reasonable doubt.  Turning to Howard and Felton, they each explained that they were simply following their superior's direction to obtain and/or create the documents.  Based on this, it would be difficult to attribute to them knowledge of

an unauthorized act.

  For the purposes of the ODA's analysis, we assumed a hypothetical worst case scenario where the evidence was evaluated in a light most unfavorable to each witness.  This means we assumed, for purposes of this analysis, that the Executive Chamber directed the State Police to gather information on Senator Bruno's use of state transportation for the specific purpose of releasing information to the media to "smear" him.  Further, such a view entailed assuming that there was no FOIL request in existence when the information was gathered.  Rather, the FOIL request was assumed to have been a pretext to cover up the true purpose for collecting the information.  Even making these assumptions, the ODA concludes that no crime occurred.

This FOIL request was also a primary part of the findings:

And Now, Back to Brunogate

by: phillip anderson

Tue Aug 21, 2007 at 09:07:25 AM EDT

Bruno's Got New Worries

According to an August 10, 2007, press release from Cornell Law School, Law Professor Steven Clymer is joining the US Attorneys Office to assist in public corruption cases. But what public corruption cases could he be assisting? The press release, quoting a TU story, clues us in (emphasis mine):

The Albany Times Union reported that “[s]everal law enforcement officials describe Clymer as tough, thorough, very bright and creative; some think he’ll have a big role in the Bruno probe, which the office has not officially acknowledged.

Ruh-roh.

Too Little Too Late - Nice Effort Ethics Commission

by: Jonathan S. Tuttle

Mon Aug 20, 2007 at 00:16:13 AM EDT

  As reported by the New York Times on Friday (“Ethics Commission Tightens Rules on Officials’ Aircraft Use” – 8/17/07 - Metro, B1), the Ethics Commission issued its new rule in response to Andrew Cuomo’s report, from last month, regarding Joe Bruno’s travel at taxpayer expense.

  While it’s nice that the Ethics Commission has finally decided to narrow the loophole – indeed, it was so big that you could have flown two C-130’s through it at the same time – it is troubling that Andrew Cuomo, good government groups and imagine this, the Senate Republicans have pointed out the deficiencies in the supposed remedy.

The T-U exonerates itself

by: Hudson

Thu Aug 09, 2007 at 16:55:52 PM EDT

With "Troopergate" (a name some object to, preferring "Brunogate" -- even the title is controversial here), the Times-Union has to many Democratic readers sullied its reputation.

But ambitious T-U editor Rex Smith has been working overtime -- on WAMC, with media watchdog groups, on paper's editorial page, and on the T-U website -- to exonerate himself and his paper's actions. You can read his most recent effort here; after the jump is my response, sent as a comment to the T-U's website.

Tuesday Morning 'Air Bruno' Roundup

by: phillip anderson

Tue Jul 03, 2007 at 09:31:59 AM EDT

The Albany Times Union:
Interest grows in Bruno's travels
Soares, Cuomo seek documents on senator's flights; Spitzer orders review of alleged threats

The flap surrounding Senate Majority Leader Joseph L. Bruno's use of state aircraft widened Monday, with Attorney General Andrew Cuomo and Albany County District Attorney David Soares requesting documents related to the Brunswick Republican's flights to New York City on state aircraft.

Gov. Eliot Spitzer's office also ordered State Police to conduct a formal "threat assessment," which could clarify whether Bruno was entitled to State Police drivers who transported him from New York City airports and helipads to his destinations in the city.

...

Spitzer spokesman Darren Dopp said Bruno's requests for police escorts were in New York City, not the Capitol Region. Dopp also said Bruno has a "standing request" that police be allowed to use their sirens and emergency lights when they drive him in New York City to speed his progress through traffic.

"Numerous times he requests lights and sirens and we say no," Dopp said, explaining that even the governor doesn't get such escorts.

A "standing request" that cops use their sirens and lights so he can get to fund raisers around NYC faster? Whatever, Uncle Joe.

Investigating Air Bruno

There was state Senate Majority Leader Joseph Bruno, indignantly demanding the resignation of then-state Comptroller Alan Hevesi last fall for using state employees as drivers and aides for his wife. When the question came up as to whether Mr. Bruno had also used state employees as drivers, he dismissed it as inappropriate.

Almost a year later, the answers to similar, and entirely appropriate, questions about Mr. Bruno's use of state resources reveal that he can't dodge such questions. Mr. Bruno seems to have no reservations about using state-owned helicopters to fly to political fundraisers in Manhattan, or having the State Police chauffeur him and his aides around.

Nothing short of a vigorous inquiry by a government entity with enforcement power can satisfy the questions that arise when it's clear that Mr. Bruno requested the use of the state's helicopters for "legislative business meetings."

...

It's well worth remembering that Mr. Bruno is not, say, the governor, with whom he has engaged in a power struggle that overshadows so much of state government. He's instead one of the leaders of an ostensibly part-time Legislature.

The New York Times
State-Financed Trips Weren’t Improper, Bruno Says

Mr. Bruno also said he used State Police transportation in part because he was the target of threats.

“They told me, the authorities, not to open mail at my home at times, not to open packages,” he said

He said a “deranged” man had been stopped outside of his office door once. “He was trying to get in, and when they asked him he said he was going to kill me,” he said. “So, you know, give me a break.”

Newsday
Spitzer wants Bruno's travel records reviewed

"I'm not concerned about anything," he told reporters. "We have not done anything illegal, we have not done anything improper." Asked whether he'd ever used state aircraft only for political events, Bruno said: "Of course not. That would be just plain stupid.

The Binghamton Press & Sun-Bulletin
Bruno rips Spitzer: Governor a 'dictator'

"That would be just plain stupid ... It would be criminal. It would be dumb. It is dumb for anybody stupid enough to allege that somebody would do that," he said.

I'll be posting the most hilarious and bizarre bruno quotes of the last 24 hours shortly. I think Uncle Joe is losin' it...

The Many Defenses of 'Air Bruno'

by: phillip anderson

Mon Jul 02, 2007 at 10:51:35 AM EDT

1. The "this is nonsense, the trips were legitimate" defense:

"On those days, we met with government officials and did legislative business," McArdle said Sunday. "The notion that he uses the helicopter for personal use is nonsense."

2. The "the Governor does it too" defense:

"If they pursue this, they are going to find themselves subject to an inquiry based on the exact same things that they're alleging," said Bruno spokesman John McArdle. State Republican Chairman Joe Mondello called yesterday for just such a probe.

3. The "People want to hurt Bruno" defense:

Mr. McArdle said Mr. Bruno needed police escorts because his life had been threatened.

“There clearly continue to be threats against Senator Bruno,” he said. “In the past, he has been advised by the state police and others to have protection in the city.”

And let's not forget the super special combo defense/dodge; the "the trips were legitimate but we won't release the itinerary - why? because the governor won't release his (he does so regularly)" defense:

McArdle wouldn't release details of the government business conducted on each of the three days, explaining that Bruno won't release that detail because Gov. Eliot Spitzer doesn't.

Spitzer spokesman Paul Larrabee said they would turn over travel schedules if asked. "We routinely provide the schedules for public review," he said.

Pick one, Mr. McArdle. We pay you a hefty public salary to spin us. We expect something more professional. At least do it with some modicum of skill.

Guess Who Flies Bruno to Fundraisers? YOU Do.

by: phillip anderson

Sun Jul 01, 2007 at 16:18:50 PM EDT

It ain't a pretty story and I can't wait for the reaction to these revelations by all those who were screaming for Alan Hevesi's head back December.

State flies Bruno to fundraisers
Taxpayers finance trips of Senate majority leader to New York City political events

Three times this year, Senate Majority Leader Joseph L. Bruno has used taxpayer-funded state aircraft to fly to political fundraisers in Manhattan while certifying he was on official state business, according to documents obtained by the Times Union.

In addition to routinely using state helicopters to fly from Albany to New York City for years, almost weekly, Bruno has also received ground transportation downstate from State Police, even when traveling to fundraisers.

...

Three of Bruno's 145-mile, one-hour helicopter flights to Manhattan in May were on dates that Republicans hosted major fund-raisers, two of which featured Bruno, the effective head of the state GOP:

On May 3, Bruno and three aides -- Michael Avella, Jeff Lovell and John McArdle -- were flown by two State Police pilots and dropped at a helipad at West 30th Street, the records state. They were then driven by a State Police investigator to the Sheraton Hotel at 7th Avenue and 52nd Street at 2 p.m.

Bruno hosted the 33rd Annual Spring Reception of the State Senate Republican Campaign Committee at the Sheraton that day. A reception, costing $1,000 per person, began at 5 p.m. A private reception costing $5,000 per person began at 5:30 p.m.

The investigator said in a memo that he picked up the foursome at the hotel at 7 a.m the next day, took them to Aqueduct Racetrack in Queens, and delivered them to Laguardia Airport at 10 a.m. when a State Police aviation crew flew them back to Albany.

On May 17, Bruno and his three aides left the Exit 23 helipad at the Thruway Authority headquarters in Albany at 11 a.m. aboard one of the executive Bell helicopters.

At 12:30 p.m. a State Police investigator in Manhattan brought Bruno to a meeting at C.V. Starr & Co. on Park Avenue. The company's leader is former AIG Chairman Maurice Greenberg. AIG has been a generous contributor to state Republican campaigns. State Police then transported Bruno to the Sheraton, where he spent the night.

From 6 p.m. to 9 p.m., Bruno and numerous Senate Republicans attended the Annual New York Republican State Committee Dinner at the Sheraton. Participants paid at least $1,000 per person and up to $10,000 per couple to hear U.S. Sen. John McCain and former Mayor Rudolph Giuliani speak.

Why on Earth would Uncle Joe need such services? Are you ready fro this one? Because of "constant threats to his life." Really.

Bruno's staff claims he faces constant threats to his life and safety and is therefore provided security details.

But, why would anyone want to hurt Joe Bruno? Well, he blames...

...the Albany Times Union itself. I swear, you can't make this stuff up.

Bruno spokesman Mark Hansen would not discuss the trips or provide Bruno's itinerary.

"Sen. Bruno uses the transportation services provided to him in his role as majority leader for state purposes," Hansen said. "As he has, and continues to receive, death threats and other threats to his safety, based on what people read in the Times Union and other negative reports, he is provided with State Police protection when traveling."

People want to kill Bruno because of the stuff they read in the TU. Oh, and even though they want to claim that these trips are justified as they are legitimate trips conducting the people's business, they will not discuss them or even release his itinerary.

Fishy doesn't even begin to describe this.

Much more on the flip...

Bruno: "I've been accused of nothing as we speak."

by: phillip anderson

Tue Jun 05, 2007 at 10:02:05 AM EDT

Bruno says he's yet to be accused

Senate Majority Leader Joseph L. Bruno refused Monday to add much insight into new reports on the FBI investigation into his business dealings, saying prosecutors have yet to accuse him of anything.

Asked by reporters about stories that appeared in the Times Union on Sunday, Bruno said he won't discuss matters that appear in the Capital Region daily.

However, he did not deny his acquisition of two mares from politically connected multimillionaire Earle I. Mack, as reported in one of the Times Union articles.

...

"I'm not going to comment on any story that gives credibility to the Times Union, because they have no credibility in many peoples' minds," said the Brunswick Republican.

Asked if he is confident he won't face charges in the federal probe involving him, he said: "I've said all that I'm going to say about what's been going on for over a year. I've been accused of nothing. I'm accused of nothing as we speak. And I expect to be accused of nothing, contrary to the speculation of the Times Union and people who don't want to deal in facts."

Uh huh. Just keep those fingers in your ears, Joe. It'll all go away. Best of luck with that.

Brunogate Returns - Joe Just Loves Those Horses Edition

by: phillip anderson

Mon Jun 04, 2007 at 11:09:51 AM EDT

Bruno Inquiry Scrutinizes Thoroughbred Transactions

Federal authorities investigating the business dealings of Joseph L. Bruno, the majority leader of the State Senate, have been examining records related to his purchases and sales of thoroughbred horses.

One series of transactions being scrutinized was between Mr. Bruno, the state’s top Republican, and Earle I. Mack, a real estate developer and former ambassador to Finland.

Citing documents and an interview with Mr. Mack’s lawyer, The Times Union of Albany reported yesterday that Mr. Bruno bought two mares from Mr. Mack in 2005 for $50,000, and that after spending $74,000 to breed them with stud horses, he sold three of their foals at auction for $425,000. Mr. Mack bought one of the foals for $105,000, the newspaper reported.

Mr. Mack once served on the board of the New York Racing Association as a Bruno appointee. The association oversees thoroughbred racetracks at Saratoga, Belmont and Aqueduct and is bidding to keep the franchise, which expires at the end of the year.

Mr. Mack has been a prominent Republican donor for state and national campaigns. In New York, he gained attention in 2003 after he flew Gov. George E. Pataki and his wife to a vacation on the Caribbean island of St. Barts on his private jet.

If any of that sounds fishy to you, worry not. Bruno's spokesman, the ever candid John McArdle has a classic non-denial denial for you.

John McArdle, a spokesman for Mr. Bruno, said that the majority leader “has cooperated fully and believes he has done nothing wrong.” He added that Mr. Bruno “has reported any and all information that he is required to under the law regarding his personal and business dealings.”

You believe him, right?

Albany Times Union Reveals Contours of Case Against Bruno

by: pontificator

Sun Jun 03, 2007 at 14:47:06 PM EDT

The FBI has assembled a potential case against Senate Majority Leader Joseph L. Bruno using a federal law that is the Justice Department's preferred weapon in public corruption cases, according to sources briefed on the investigation.

That law makes it a felony, punishable by up to five years in prison, to deprive the public of the "honest services" of its government.

The sources, who are involved in the case but spoke on the condition they not be identified, said agents in the FBI's white-collar crime unit in Albany believe they have compiled enough evidence to propose criminal charges to the U.S. Attorney's office. The sources declined to provide details.

A federal grand jury in Albany has been reviewing the matter for more than a year. A decision on whether the panel will consider an indictment of Bruno, the state's most powerful Republican, would ultimately be made by U.S. Attorney Glenn T. Suddaby, the top federal prosecutor in New York's Northern District and an appointee of President Bush.

[snip]

A source briefed on the investigation said the FBI is homing in on the so-called "honest-services" law, a one-sentence amendment Congress inserted into federal statutes 20 years ago to close a loophole in its laws defining mail fraud and wire fraud.

The broadly written law prohibits anyone from depriving the public of an inherent "right to honest services." The law has given the Justice Department wider discretion in the prosecution of public corruption, experts said, and has led to numerous convictions even in cases where there was no clear-cut bribe or theft.

"You don't have to establish the clear quid pro quo that you need for a bribery conviction," said Henning, a former federal prosecutor.

In recent years, the honest services law was used to convict Abramoff, former Illinois Gov. George Ryan, former Connecticut Gov. John Rowland and former U.S. Rep. Randy "Duke" Cunningham of California.

Reform, Thy Name Is Bruno

by: phillip anderson

Thu Mar 15, 2007 at 09:55:15 AM EDT

The Greatest Reformer in This State

Now I've been saying for at least a year or two that old man Bruno has lost touch with reality.  Not surprising.  He's an old man.  It happens.  I think we can consider the case closed on this matter.

The senator called himself "the greatest reformer in this state - probably since Teddy Roosevelt," adding: "I need people to acknowledge that, instead of all these liberal writers talking about tax cuts as spending."

He needs people to acknowledge he is the greatest reformer in this state since Teddy Roosevelt.  Now, unless you want to consider the way he has made bribing politicians into an actual side business by calling it consulting as "reform", than I think we can just all agree that the old man is batty.  It will be interesting to see how far down he can drag the already dead and dying NY republicans before they pull the plug.  Put some beer on ice and pop some corn, its gonna be fun.

Nice.

Abbruzzese, the Vultures and Bruno

by: am

Sat Mar 10, 2007 at 11:23:12 AM EST

The 3 heads in our much smaller story here is that of Cerberus, Romulus Holdings Inc., and Mr. Abbruzzese's TechOne. This budding partnership was happening about the same time as the more reported Motient/Tejas shenangans - where Mr. Bruno's investment has raised eyebrows. But the stories are somewhat similar, as are the players. In the coverage at that time: "Vultures Circling" we see that "Romulus and Cerberus are known as "vulture funds," or investment banks that specialize in buying the debt of distressed companies at rock-bottom prices." And Romulus is "an investment vehicle of . . . Gary Singer, who was sentenced to 28 months in prison in 1995 as a result of insider-trading violations."  (my emphasis)

These three formed CRT Satellite Investors LLC (for Cerberus, Romulus and TechOne), and Digital Satellite Lenders LLC (DST) which invested in WSNet, Inc. We learn in WSNet Bankruptcy Slammed that WSNet filed for Chapter 11 in 2002 after "its primary lender [DST] cleaned out its [WSNet] bank account. Alleged in this article that "Singer and Feinberg fired the company's CEO and replaced him with Abbruzzese" when WSNet tried to acquire 2 cable systems that the partner's in DST were working to acquire the public debt on. The NYT wraps up the affair this way:

In 2000, Cerberus invested $42 million in the debt of WSNet Holdings, a small provider of satellite television programming. Over the next two years, according to shareholder lawsuits, Cerberus forced the company into bankruptcy by secretly buying up the bonds of companies WSNet hoped to acquire and forbidding WSNet executives from pursuing deals. Through bankruptcy proceedings, the fund tried to take control of the company, lawsuits contend. The suits also contend that Cerberus installed directors at WSNet who maximized Cerberus's profits at the expense of other stakeholders. The claims were settled for a relatively small amount [hmmm… does this imply that even though they settled, it wasn't really all that guilty?] in 2005, by which time Cerberus had recouped its initial investment in WSNet, according to the lawsuits.

This is all happening at the same time that Singer's brother Steven is the chair of Motient and Abbruzzese is a director. The connection to Romulus is still strong as we see below the jump. .