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March 29, 2012

Yonkers Politicians Guilty of Corruption Over Forest City Ratner Project

New York Magazine
by Norman Oder

A federal jury has convicted former Yonkers City Councilmember Sandy Annabi and Zehy Jereis, her political mentor and campaign manager, of extortion and conspiracy to accept and give corrupt payments, related to two real-estate deals, including an $842 million Forest City Ratner development.
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Prosecutors argued that the money enabled Jereis to control Annabi's vote — notably her decision in 2006 to support Forest City Ratner's giant Ridge Hill retail/residential project. The trial revealed the convoluted politics of Yonkers, the state's fourth-largest city, as well as Forest City Ratner's intensive effort to get Ridge Hill passed. After Jereis helped Forest City executives by setting up a meeting between them and Annabi, he asked for a job.

The company put him off until after Annabi voted, then gave him a backdated consulting contract and paid him $15,000 for three months even though he did virtually no work. A Forest City executive testified that Jereis "probably" would not have been hired if he had not produced Annabi's vote. Neither Forest City nor its employees were charged in the case.

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Related coverage...

The New York Times, Two Convicted in Yonkers Corruption Case

Preet Bharara, the United States attorney for the Southern District of New York, called the convictions “a victory for the citizens of Yonkers who – like all Americans -- deserve fair and honest government, and not government driven by bribes and riven with backroom deals.”

We probably deserve fair and honest real estate developers, too, no?

In court, a prosecutor, Mr. Halperin, noted that under the advisory federal sentencing guidelines, Ms. Annabi could face a sentence of 12 to 15 years, and Mr. Jereis of 14 to 17 years.
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Ms. Annabi’s lawyer, Mr. Aronwald, reiterated outside the courthouse that he planned to seek to have the verdict set aside. “The evidence was insufficient to sustain a guilty verdict,” he said. “The government did not prove a corrupt agreement."

NoLandGrab: The jury, obviously, felt otherwise.

Posted by eric at March 29, 2012 1:38 PM