Sheldon Silver charged with fraud and extortion

Assembly leader took millions, prosecutors says

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Sheldon Silver, the longtime leader of the Democratically-controlled state Assembly was arrested on several federal corruption charges, on Jan. 22, according to the FBI. United States Attorney for the Southern District of New York Preet Bharara said that Assembly Speaker Silver used his official position to receive nearly $4 million in bribes and kickbacks. Silver, 70, who represents the Lower East Side of Manhattan and has been the leader in the Assembly since 1994, was charged with five counts of fraud and extortion.

“Over his decades in office, Speaker Silver has amassed titanic political power, but, as alleged, during the same time, Silver also amassed a tremendous personal fortune — through the use of that political power,” Bharara said in a prepared release.

According to the court documents, Silver steered $500,000 in a grants to a cancer research specialist physician who then referred patients to the personal injury law firm of Weitz & Luxenberg that specializes in mesothelioma and asbestos cases. Silver previously reported earning about $750,000 from the firm. Supposedly they paid Silver more than $3 million for “referral fees.”

Another $700,000 was allegedly given to Silver when he persuaded two of the state’s largest real estate development companies to move a portion of their legal business to a real estate firm operated by Silver’s former lawyer, which then paid Silver the money.

“We hold our elected representatives to the highest standards and expect them to act in the best interest of their constituents,” FBI Special Agent-in-Charge Richard Frankel said in a release. “In good faith, we trust they will do so while defending the fundamental tenets of the legal system. But as we are reminded today, those who make the laws don’t have the right to break the laws.”

The federal investigation began when Bharara took possession of the files of the Moreland Commission, which was looking into corruption in state politics, but was disbanded by Gov. Andrew Cuomo last April. Bharara said in October that investigations were continuing. According to the U.S. Attorney, Silver “thwarted” the commission by initially filing legal motions on behalf of the Assembly and taking actions to block its investigation into legislative outside income, and then by negotiating with the governor to terminate the commission.

Understandably upset by the arrest of his lifelong friend, Village of Lawrence Mayor Martin Oliner said: “I am sure Shelly will be vindicated in the end. Never judge one side of the story without hearing the other side.”

Silver appeared in court on Jan. 22. He was released on a $200,00 personal recognizance bond and surrendered his passport.