Thursday, March 10, 2011

Powerful NY state democrat senator surrenders to feds, took bribes from health care network, diverted taxpayer money

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3/10/11, "Brooklyn State Senator Carl Kruger Surrenders To Feds," Gothamist
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3/10/11, "NY state pols charged in influence-peddling case," AP, Tom Hays

"A state senator and assemblyman from New York City are among eight people charged
  • in a federal influence-peddling case.

A criminal complaint names Sen. Carl Kruger and Assemblyman William Boyland Jr.,

Charges in the complaint include conspiracy and money laundering. The complaint alleges that Kruger "received a stream of bribes totaling at least $1 million" and

It says he directed state money to a lobbyist, who is also charged.

Kruger's attorney had no immediate comment. Boyland did not immediately return a request for comment left with his staff.

A senator since 1994, Kruger was the powerful Senate Finance Committee chairman from 2008 to 2010

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3/10/11, "Brooklyn State Senator Carl Kruger Surrenders To Feds," Gothamist

"State Senator Carl Kruger, the Brooklyn Democrat—and one-time Amigo— who represents neighborhoods including Brighton Beach, Sheepshead Bay, Gravesend, Bergen Beach, Mill Basin, and Midwood, will turn himself into federal authorities this morning and will be "processed on several charges." It's believed that he—and State Assemblyman William Boyland, lobbyist Richard Lipsky and two hospital executives—will face corruption charges related to what the Daily News calls a
  • "long-running, broad-reaching bribery conspiracy."

The News expands, "Sources said Kruger took bribes to do favors for hospital executives, a Brooklyn-based developer and a lobbyist, Richard Lipsky. The payoffs were funneled into checking accounts that Kruger had access to, the sources said. One source said the feds will charge Kruger with using his influence in the Senate to push for approval of a merger involving the now-defunct Parkway Hospital in Queens."

Kruger is the ranking Democrat on the State Senate Finance Committee (when the Democrats controlled the State Senate, Kruger was the committee's head). A source told the Post, "Everyone knows that Carl has been using his post to take money for years, so this isn't surprising.

  • What's more surprising is that it didn't happen 10 years ago."

He's also been the target of a probe on, as the NY Times reports, whether "he had helped businessmen surmount bureaucratic hurdles in exchange for assistance raising campaign money." The Times also calls him a "wily fixture in the Capitol. His ability to reach across the aisle and form close alliances with Republicans helped him earn a committee chairmanship when Democrats were in the minority."

The Post says a "teary-eyed" Kruger left his Mill Basin home at 6 a.m. this morning; his lawyer Benjamin Brafman said, "He's saddened because he's one of the most dedicated public servants for the past 25 years with an impeccable reputation. This obviously is a difficult day for all of us.""

Carl Kruger (left) with his attorney surrendering at the FBI building today. AP


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