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March 15, 2011
Krugerpalooza: Tuesday Edition
NY Post, Ratner's Kruger connection! Bruce had dealings with indicted senator
The biggest developer in the borough — whose Atlantic Yards project is the biggest in Brooklyn history — is now linked to the biggest pay-to-play story in years.
Federal wiretaps show that a lobbyist for Forest City Ratner, which is building the Barclays Center arena as part of the 16-tower apartment and retail complex, paid hundreds of thousands in bribes to state Sen. Carl Kruger (D–Brighton Beach), the former Finance Committee powerhouse.
The lobbyist, Richard Lipsky, was indicted by federal prosecutors with Kruger and several others last week, for his role in the scandal, which included funneling $252,000 to Kruger, who in turn provided state funding to projects being developed by Forest City and other clients.
No one from Forest City was indicated or charged — and it is unclear if the company knew what Lipsky was allegedly doing.
But Forest City Vice President Bruce Bender was caught on the federal wiretap negotiating with Kruger, who has steered millions in state money to the $4-billion project.
The Brooklyn Paper, Arrested Kruger: I’m not going anywhere
State Sen. Carl Kruger says he’s going to continue serving the people of Southern Brooklyn despite federal charges that could earn him up to 120 years in the Big House — and land him in the poorhouse.
Five days after federal authorities announced that the Democrat sold his political clout and government connections for close to $1 million in payoffs to deep-pocketed lobbyists and developers, the embattled legislator said he’s going to keep on fighting for the residents who sent him to Albany.
“I am here to represent the people of my district,” Kruger, who’s facing more than $5 million in fines, repeated to reporters in Albany on Monday during his first public appearance since his arrest last week. “I am here to do my job and that’s what I’m doing.”
NoLandGrab: What a statesman — only thinking about his beloved constituents.
Cleveland Scene, A Brooklyn Bridge, Cute State Senator, Involve Forest City in New York Corruption Case
New York news is finding its way back to the Forest City.
Wire-taps, bribes, scathing snippets of conversation published in the newspaper; ring a bell? The scenario must be annoyingly familiar to Cleveland’s best-loved real estate developer, Forest City Enterprises. Although the company avoided the Cuyahoga County corruption fallout, it’s not faring so well in New York where it is being showcased as “Real Estate Developer No. 1” in a federal public corruption case there.
The criminal case was unsealed last week and is a little complicated. We will try to boil it down for you. There is a skating rink, a retail development, and a bridge in Brooklyn. To clarify—not the Brooklyn Bridge, but another one. All are part of a new complex that the company's Forest City Ratner division is developing to be the new home to the Nets.
Let's hope they're wrong about Prospect Park being part of the project.
The Times notes that this is the second time in less than two years that Forest City Ratner has been named in a federal corruption investigation involving New York. The company has escaped indictment both times.
NLG: So far.
Posted by eric at March 15, 2011 11:40 PM