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Todd Howe, Key Witness in Albany Corruption Trial, Is Jailed Todd Howe, Key Witness in Albany Corruption Trial, Is Jailed
(about 7 hours later)
Todd R. Howe, the government’s star witness in a sweeping corruption trial centered on Albany, was taken into custody on Thursday night, just hours after he admitted in court that he had violated the terms of the cooperation deal he had reached with prosecutors. Todd R. Howe, the star prosecution witness in a sweeping corruption trial centered on Albany, was arrested on Thursday night, just hours after he admitted in court that he had violated the terms of his cooperation deal.
The jailing of Mr. Howe, a former lobbyist and loyalist to Gov. Andrew M. Cuomo and his father, was a stunning development in the case against Joseph Percoco, a former top aide to the governor, and three other defendants. The arrest of Mr. Howe, a former lobbyist and loyalist to Gov. Andrew M. Cuomo and his father, was a stunning development in the case against Joseph Percoco, a former top aide to the governor, and three other defendants.
Mr. Howe, who was being held in the Metropolitan Correctional Center in Lower Manhattan, was expected to be brought before a judge in Federal District Court in Manhattan on Friday for a bond revocation hearing. One provision of Mr. Howe’s cooperation deal was that he “commit no further crimes whatsoever.” But on Thursday, Mr. Howe, under a grueling cross-examination, acknowledged that he tried to defraud a credit card company after his cooperation agreement had been finalized.
“He was remanded for violating the terms of his bail,” said Nicholas Biase, a spokesman for the United States attorney’s office in Manhattan. “No additional charges have been filed.” Prosecutors often rely on witnesses whose admissions of past crimes could weaken their credibility. Salvatore Gravano helped the government bring down nearly 40 gangsters — most notably John J. Gotti — even though Mr. Gravano had admitted his participation in 19 murders.
Mr. Howe struck the cooperation deal in September 2016 and has assisted prosecutors in their investigation of Mr. Percoco and alleged bribery schemes involving companies doing business the state. One provision of Mr. Howe’s agreement was that he “commit no further crimes whatsoever.” In other cases, jurors’ concerns about the credibility of the witness have led to mistrials.
But on Thursday, Mr. Howe, under a grueling cross-examination, testified that in the spring of 2016, on one of his numerous trips to New York to meet with prosecutors in preparation for the cooperation agreement, he stayed at the Waldorf Astoria Hotel. But to have a government witness arrested midway through cross-examination is extremely uncommon, and poses a problem for prosecutors when the trial resumes on Monday and Mr. Howe’s cross-examination is scheduled to continue.
He admitted that in October, several weeks after he had signed his deal, he called his credit card company and claimed that he had not stayed at the Waldorf, and asked that the $600 hotel charge be credited back to him. The arrest is the latest obstacle prosecutors have encountered in pursuing corruption cases in Albany: The government is retrying two prominent former state leaders, Sheldon Silver and Dean G. Skelos, after their 2015 convictions were overturned last year in light of a Supreme Court decision that narrowed the legal definition of corruption.
“You lied to your credit card company about staying at the Waldorf the very night that you had come to New York to see the government?” a defense lawyer, Daniel M. Gitner, asked Mr. Howe on cross-examination on Thursday. Mr. Howe struck his cooperation deal in September 2016, and assisted the government in its investigation of Mr. Percoco and alleged bribery schemes involving companies doing business with the state.
On Thursday, the second day of cross-examination, Mr. Howe was questioned about one of his numerous trips to New York in 2016, where he stayed at the Waldorf Astoria Hotel, to meet with prosecutors in preparation for the cooperation agreement.
Mr. Howe admitted on the stand that in October, several weeks after he signed his deal, he called his credit card company and claimed that he had not stayed at the Waldorf, and asked that the $600 hotel charge be credited back to him.
“You lied to your credit card company about staying at the Waldorf the very night that you had come to New York to see the government?” a defense lawyer, Daniel M. Gitner, asked Mr. Howe on cross-examination.
“Correct,” Mr. Howe replied.“Correct,” Mr. Howe replied.
“As you sit here now,” Mr. Gitner said, “do you realize that you are in violation of your cooperation agreement?”“As you sit here now,” Mr. Gitner said, “do you realize that you are in violation of your cooperation agreement?”
“I do, looking at this, yes,” said Mr. Howe, who had been shown a copy of the agreement.“I do, looking at this, yes,” said Mr. Howe, who had been shown a copy of the agreement.
“As you sit here now, do you think they’re going to rip it up?” Mr. Gitner asked.“As you sit here now, do you think they’re going to rip it up?” Mr. Gitner asked.
“I sure hope not,” Mr. Howe replied.“I sure hope not,” Mr. Howe replied.
Mr. Howe’s lawyer did not immediately respond to a request for comment regarding the arrest, which was reported Friday by The Wall Street Journal. Late Thursday, after the day’s proceedings had ended, a judge, J. Paul Oetken, granted a government request that Mr. Howe’s bail conditions be revoked, a court filing shows. Mr. Howe was then arrested at his hotel room and taken to the Metropolitan Correctional Center in Lower Manhattan.
Prosecutors often rely on witnesses whose credibility can be called into question. Many mob-related trials, for example, have featured the testimony of former organized-crime figures; in a case against John Gotti, a key witness, Salvatore Gravano, admitted his participation in 19 murders. “He was remanded for violating the terms of his bail,” said Nicholas Biase, a spokesman for the United States attorney’s office in Manhattan. “No additional charges have been filed.”
In some of the cases, prosecutions have ended in mistrials, largely because of jurors’ concerns about the credibility of the witness. The government declined to comment on how Mr. Howe’s arrest might affect its trial strategy.
But to have a government witness arrested midway through cross-examination is exceedingly uncommon, and poses an obvious problem for prosecutors when the trial resumes on Monday. A bedraggled Mr. Howe, wearing a faded Martha’s Vineyard T-shirt, his graying hair mussed, appeared briefly on Friday before a magistrate judge, Stewart D. Aaron, who advised him of his rights as Mr. Howe nodded slightly.
Mr. Howe, an old friend of Mr. Percoco’s, has pleaded guilty to felony charges and has been cooperating with the government against Mr. Percoco and three executives of two firms, COR Development and Competitive Power Ventures, who are also on trial. A prosecutor, Janis Echenberg, told the judge that Mr. Howe had consented to be held without bond.
Mr. Percoco has been charged with taking at least $315,000 in bribes from the executives, paid to Mr. Percoco’s wife through a third party and through a company operated by Mr. Howe, in return for taking official actions on the firms’ behalf. After the hearing, Mr. Howe’s lawyer, Richard J. Morvillo, asked by reporters whether Mr. Howe would be returning to court on Monday to continue testifying, called it an “interesting question.”
Prosecutors have been candid about the questions concerning Mr. Howe’s credibility. During opening arguments, a prosecutor, Robert L. Boone, pre-emptively told the jury that Mr. Howe was a criminal who had pleaded guilty to eight felonies, many of which related to him telling lies. “I’m planning to be here Monday morning,” Mr. Morvillo said.
“He has lied to his employer, he has lied to the I.R.S. and he’s even lied to the defendants. He will tell you all about it,” Mr. Boone said in his opening statement. Asked how his client was doing, Mr. Morvillo added, “I’m sure you can imagine.”
Lawyers for Mr. Percoco and his co-defendants either declined to comment or had no comment on Mr. Howe’s arrest, which was reported Friday by The Wall Street Journal.
Mr. Howe, an old friend of Mr. Percoco’s, pleaded guilty in 2016 to charges that included extortion, fraud and conspiracies to commit honest services fraud and bribery. He has been cooperating with the government against Mr. Percoco and three executives of two firms, COR Development and Competitive Power Ventures, who are also on trial. Gov. Cuomo, a Democrat who is running for re-election, has not been accused of any wrongdoing.
Mr. Percoco has been charged with obtaining at least $315,000 in bribes from the executives, paid to Mr. Percoco’s wife through a third party and through a company operated by Mr. Howe, in return for Mr. Percoco’s taking official actions on the firms’ behalf.
Prosecutors have been candid about the questions concerning Mr. Howe’s credibility. During opening statements, a prosecutor, Robert L. Boone, pre-emptively told the jury that Mr. Howe was a criminal who had pleaded guilty to eight felonies, many of which related to him telling lies.
“He has lied to his employer, he has lied to the I.R.S. and he’s even lied to the defendants. He will tell you all about it,” Mr. Boone said.
But under questioning by Mr. Gitner, who represents one of the executives charged in the case, Peter Galbraith Kelly Jr., Mr. Howe seemed to admit to lies that the government had not been aware of.But under questioning by Mr. Gitner, who represents one of the executives charged in the case, Peter Galbraith Kelly Jr., Mr. Howe seemed to admit to lies that the government had not been aware of.
He acknowledged, for example, that in applying for a disability insurance policy in 2014, he checked a box stating that he had never been convicted of a felony, even though that was not true. He acknowledged, for example, that in applying in 2014 for a disability insurance policy, he checked a box stating that he had never been convicted of a felony, even though that was not true.
“And the government is hearing about that for the first time right now?” Mr. Gitner asked.“And the government is hearing about that for the first time right now?” Mr. Gitner asked.
“Yes,” Mr. Howe said.“Yes,” Mr. Howe said.