Bruno Trial Opening Statements 1103

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF NEW YORK --------------------------------------------UNITED STATES OF AMERICA

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-versus-

09-CR-29

5 JOSEPH L. BRUNO 6 7

Defendant. --------------------------------------------TRANSCRIPT OF JURY TRIAL *EXCERPT held in and for

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the United States District Court, Northern District of

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New York, at the James T. Foley United States Courthouse,

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445 Broadway, Albany, New York, on MONDAY, NOVEMBER 2, 2009,

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the HON. GARY L. SHARPE, United States District Court Judge,

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Presiding.

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*EXCERPT - GOVENMENT/DEFENDANT'S OPENING STATEMENTS

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APPEARANCES:

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FOR THE GOVERNMENT:

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UNITED STATES ATTORNEYS OFFICE - NDNY

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BY:

ELIZABETH C. COOMBE, AUSA and

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BY:

WILLIAM C. PERICAK, AUSA

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FOR THE DEFENDANT:

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McDERMOTT, WILL LAW FIRM

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BY:

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DREYER, BOYAJIAN LAW FIRM

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BY:

ABBE D. LOWELL, ESQ. and PAUL M. THOMPSON, ESQ.

WILLIAM J. DREYER, ESQ. and APRIL M. WILSON, ESQ. BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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(In open court at 2:30 PM...)

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THE COURT:

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Miss Coombe, are you ready for

your opening statement?

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MS. COOMBE:

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THE COURT:

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MS. COOMBE:

I am, your Honor.

Thank you.

Please. Good afternoon, ladies and

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gentlemen.

This case is about conflicts of interest, it's

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about failure to disclose conflicts of interest, and it's

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about concealment of information that might have exposed

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conflicts of interest.

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in this case relate to more than $3 million of the payments

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that Senator Bruno received between 1993 and 2006.

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learn that during the time that Senator Bruno received these

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payments from private parties, he was a New York State

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Senator, and after January 1 of 1995, when he became the New

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York State Senate Majority Leader, Senator Bruno was one of

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the three most powerful men in New York State.

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hear how all kinds of people and parties came to meet with

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him and his staff; labor unions, private companies, even

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utilities; all kinds of entities.

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Bruno because he had the power to make things happen in New

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York State.

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The conflicts of interest at issue

You will

You will

They came to see Senator

During this trial you will see and hear evidence about how Senator Bruno exploited his official BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 position for his own personal enrichment and gain.

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learn about the payments Senator Bruno received.

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learn that in some cases Senator Bruno was paid by people in

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order to contact others who had business before him.

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other cases, Senator Bruno was paid directly by people who

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had business before him.

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You will You will

And in

You will see and hear evidence that Senator

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Bruno failed to disclose and, in fact, actually concealed

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and disguised these contacts and these payments and the

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resulting conflicts of interest.

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evidence that Senator Bruno took official action which

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benefited the parties he contacted and the parties that were

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paying him.

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Senator Bruno failed to disclose information to his fellow

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legislators and to the citizens which they could have used

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to determine whether Senator Bruno was placing the public

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interests first, as he was required to do, or whether he was

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instead placing his own financial self-interest above the

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public interest.

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You will also see and hear

You will also see and hear evidence that

As Judge Sharpe mentioned to you, Senator

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Bruno is charged with honest services mail and wire fraud.

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And the Judge has -- will instruct you in more detail about

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the elements of the offense and he has already instructed

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you about the elements of the offense.

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prove each and every one of those elements beyond a

The Government must

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 reasonable doubt. But a critical issue in this case will be

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intent.

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deprive the citizens of their intangible right to his honest

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services?

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intended to make full and complete disclosure of the

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contacts he was making and the payments he was receiving, or

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whether he instead intended to conceal and disguise

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conflicts of interest and related information.

Did Senator Bruno act with the intent necessary to

You will need to determine whether Senator Bruno

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During the trial you will hear testimony from

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witnesses and you will see exhibits and that will help you

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to understand the payments that Senator Bruno received, the

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official actions that he took which benefited private

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parties and, finally, for you to determine whether he had

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the necessary intent to be guilty of honest services mail

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and wire fraud.

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that evidence.

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of documents.

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you one at a time through witnesses on the witness stand,

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but I do want to give you a brief guide to some of that

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evidence, and I'm going to start by talking to you about the

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payments that Senator Bruno received.

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I want to give you an overview of some of I'm not going to overwhelm you with dozens The Government will produce the exhibits to

I've already mentioned that in some cases

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Senator Bruno was paid to contact people who had business

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before him.

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that paid Senator Bruno to contact labor union officials in

You will learn that there were two companies

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 order to get their investment business. Now, labor unions

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have benefit funds for their members.

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funds, they have health and welfare funds, and other funds.

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And one of the jobs of some union officials is to serve as a

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trustee on those funds to oversee the investment of their

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union members' money.

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competition from investment advisers across the country to

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manage money and to earn fees for managing that money.

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They have pension

And you will hear that there's

In approximately 1994, Senator Bruno began to

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contact the heads of unions on behalf of a Connecticut

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investment adviser whose name is Wright Investors Services.

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Wright used several different words to describe Senator

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Bruno's role.

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him a referral agent, and they called him a solicitor and

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also a finder.

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Bruno's role was clear.

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unions and to open the door for Wright.

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contacted the union head normally directly, but sometimes

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indirectly, and asked them to take a look at Wright or give

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Wright a fair shake.

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They called him an introducer, they called

Regardless of the title used, Senator His job was to call the heads of He normally

Between 1994 and 2006, Senator Bruno

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contacted 15 union heads, and 11 of the funds associated

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with those unions became Wright clients.

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those contacts, Wright paid Senator Bruno approximately

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$1.3 million.

As a result of

You will learn that an Albany investment bank

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 and investment broker McGinn Smith & Company also received

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some commissions for executing brokerage rights in

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connection with some of these accounts that Senator Bruno

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referred to Wright, and you will learn that McGinn Smith &

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Company paid Senator Bruno approximately $630,000 between

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1993 and 2005.

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During the trial, you will hear from the

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witness stand many of the union heads who Senator Bruno

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contacted.

They will testify for you about how their unions

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routinely and regularly had interests before the

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Legislature.

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legislation, but they also had interests in obtaining state

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money for their members, and they knew Senator Bruno because

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of these interests.

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investment advisers was fierce and that many of them will

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tell you, the union heads, that they were constantly

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bombarded with calls from investment advisers.

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learn that Senator Bruno's calls were different.

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also hear from staff members who worked at the Senate who

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met with the union firms.

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about the legislative interests of the unions and the

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interests that the unions had in state money.

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see documents regarding Senator Bruno's relationship with

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Wright, and including documents written by Senator Bruno's

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primary contact with Wright, a salesman whose name is

Not only did they have interests in

You will hear that the competition for

And you will You will

They will be able to tell you

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

You will also

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 Kenneth Singer. You will see in a document that Mr. Singer

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wrote regarding some potential clients in Niagara Falls, New

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York.

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you win/fight for them on issues in Niagara Falls and that

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the main issue is the helicopter ride in Niagara Falls.

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will learn about the helicopter ride, how that related to

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Senator Bruno's official duties, and about the mixing of

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Senator Bruno's private business interests and his public

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duties.

Everything depends on their perception of how hard

You

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Now, I want to mention, as an investment

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adviser, Wright is regulated by the Securities Exchange

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Commission.

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that Senator Bruno contacted union heads on behalf of

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Wright, SEC rules required that the union officials he

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contacted who decided to have their unions become Wright

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clients receive a written document that informed them of

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Senator Bruno's role with Wright and the fact that Senator

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Bruno was being paid as a result of the business that they

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had given to Wright.

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written acknowledgments were never obtained from the union

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officials Senator Bruno contacted, and you will see a Wright

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document about this issue.

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problem with obtaining these written acknowledgments was

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that certain trustees object to signing such a form because

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they believe it looks as though they were improperly

You will learn that for the first four years

You will hear evidence that these

That document states that the

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 influenced in their decision to employ Wright.

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and hear evidence that in 1998, to avoid the need for

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written disclosures, Senator Bruno entered into an

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employment arrangement with Wright and its parent, the

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Winthrop Corporation.

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change in his status, the Securities Exchange Commission

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rule still required disclosure.

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disclosure of his employment and the nature of the

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affiliation with his employer.

You will see

You will learn that even after this

The rules required

And you will hear from union

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officials and union heads that Senator Bruno routinely

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failed to make those disclosures.

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Now, in addition to Wright and McGinn Smith,

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there were other companies that paid Senator Bruno to make

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contacts for them, not to unions, but to other entities and

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businesses that had business before the Legislature.

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For example, you'll hear from Leonard

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Fassler.

Mr. Fassler paid Senator Bruno approximately

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$483,000, through seven different companies over 11 years.

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He initially agreed to pay Senator Bruno a commission to

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introduce his companies to perspective clients.

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hear about one in particular which occurred in 1997.

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will hear evidence that Mr. Fassler mentioned to Senator

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Bruno that he had a good investment opportunity, but Senator

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Bruno said that he didn't have the money necessary for the

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investment opportunity.

You will

You will see documents that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

You

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 Mr. Fassler sent Senator Bruno a check for $15,000, with a

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note that said:

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consulting invoice to Sage Equities for this payment.

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Thanks, and regards, Len.

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Dear Joe:

Would you please send me a

Senator Bruno returned a document to

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Mr. Fassler entitled Invoice, which purported to be for

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consultant services, marketing, management, organization and

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conferences, as agreed.

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the investment.

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And he also included a check for

You will see Senator Bruno's agreements with

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Mr. Fassler's companies and you will see that after the

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initial agreement, those agreements did not require Senator

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Bruno to do anything.

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who will not be able to tell you anything Senator Bruno did

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that was worth anywhere near the amount of money he was

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paid.

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And you will hear from Mr. Fassler,

You will also see and hear evidence about

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$270,000 paid by another individual Russell Ball through a

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company of his over 14 months in 2004 and 2005.

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see the written agreements which led to these payments.

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you will hear that the only thing Senator Bruno did during

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the time he was being paid by Mr. Ball was to introduce

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Mr. Ball to some entities Senator Bruno knew through his

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official position and to help Mr. Ball resolve billing and

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other disputes with Consolidated Edison, a regulated utility BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

You will And

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 that had regular recurring issues before the Legislature.

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You will also see and hear evidence about

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payments made by another individual, Jared Abbruzzese,

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through four different companies, including a publicly

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traded company.

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of $360,000 in 2004 and 2005.

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payments continued $20,000 a month until they were abruptly

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terminated four months early after a new CEO became

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affiliated with the publicly traded company.

Those companies paid Senator Bruno a total You will hear how the

If the

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agreement had not been terminated early, Senator Bruno would

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have been entitled to another $80,000 in payments.

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hear that when the payments ended, Mr. Abbruzzese bought a

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horse from Senator Bruno for exactly that amount, $80,000.

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And you will hear testimony that the horse was virtually

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worthless and was eventually given away to a little girl

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after a notice was placed on a convenience store bulletin

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board.

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payments and you will hear from Mr. Abbruzzese that Senator

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Bruno produced no written work product, and Mr. Abbruzzese

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will not be able to tell you anything that Senator Bruno did

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that was worth anywhere near what he was paid.

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You will

You will see the brief letters that led to these

While Senator Bruno was receiving these

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payments from the various sources and contacting the unions

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and the other people that I mentioned, he took official

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action.

He took official action which benefited the unions BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 and other people he contacted, and he took official action

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which vested the interests of Mr. Abbruzzese, Mr. Ball, and

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Mr. Fassler.

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and others defeated, which directly affected the unions and

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others Senator Bruno contacted, as well as those who paid

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Senator Bruno.

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You will hear about bills that were passed,

For example, you will hear that one of the

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unions Senator Bruno contacted for Wright, the New York City

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Correction Officers Benevolent Association, finally after

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years of lobbying, obtained a huge legislative victory

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shortly after the annuity fund hired Wright.

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see documents that this legislative victory caused angst

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among other New York City municipal unions.

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And you will

You will also hear about hundreds of

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thousands of dollars of state money which went to unions and

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companies, including, at Mr. Abbruzzese's request, $250,000

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in the form of a grant to a local technology company Evident

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Technologies, and at Mr. Fassler's request, a $250,000

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equity investment to a company called Aviation Learning.

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You will also hear that while one of Mr. Fassler's

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companies, VyTek, was paying Senator Bruno, that company,

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VyTek, was the member -- was a member of a team bidding on a

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multi-billion dollar state wireless network contract, and

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that at Mr. Fassler's request, Senator Bruno convened a

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meeting in his Senate office to discuss this project. BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 These are just a few of the examples of the

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kinds of evidence you will hear about the official actions

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Senator Bruno took which benefited the unions and others he

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had contacted, as well as Mr. Abbruzzese, Mr. Fassler, and

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Mr. Ball.

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Now, I've already mentioned to you that a

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critical issue in this case will be intent.

Both testimony

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from witnesses and documents will help you determine whether

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Senator Bruno intended to make full and complete disclosure

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or whether he intended to conceal and disguise conflicts of

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interest and related information.

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legislative ethics committee, which is a bipartisan

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committee made up of representatives of the New York State

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Senate and the New York State Assembly.

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Legislature is a part time legislature and outside

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employment is not prohibited, but one of the things the

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legislative ethics committee does is it's available to issue

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advisory opinions to legislators considering outside

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employment.

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part time legislature affects the public's right to

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disinterested decision making, and that right is violated

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where an official makes a decision while concealing a

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conflict of interest which was the potential motivation for

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that decision.

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the legislative ethics committee about his anticipated

You will hear about a

The New York

And nothing about the fact that New York is a

You will hear that Senator Bruno approached

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 employment at McGinn Smith & Company. You will also learn

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that Senator Bruno did not tell the committee that he would

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be contacting labor unions.

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You will also hear evidence that Wright

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employees, Mr. Fassler, and Mr. Ball all believed that their

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relationships with Senator Bruno had been cleared by that

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ethics committee.

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never told the legislative ethics committee about his

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financial relationships with Wright, Mr. Fassler, Mr. Ball,

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But you will learn that Senator Bruno

or Mr. Abbruzzese. You will also see annual statements of

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financial disclosure Senator Bruno filed.

You will see that

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Senator Bruno used a company name Business Consultants and

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later Capital Business Consultants LLC to report payments

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from his outside financial interests rather than identifying

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the people who were actually paying him.

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exhibit which shows that although Senator Bruno used the

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name Business Consultants Incorporated, no such entity was

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ever incorporated, although it had been registered as a

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d/b/a, doing business as.

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state workers performed any necessary work regarding Senator

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Bruno's outside financial activities and that neither

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Business Consultants nor Capital Business Consultants LLC

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ever had any employees except for a brief period of time

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when Senator Bruno's daughter worked for Capital Business

You will see an

You will also hear testimony that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 Consultants. You will learn that neither of these companies

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was anything more than an empty shell.

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the financial disclosure statements that Senator Bruno did

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not provide his true title that he had with Wright on those

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forms, which is -- which was in his formal written

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agreements with Wright, and that he did not even provide a

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cursory description of what he was actually doing.

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also see that Senator Bruno did not call attention to the

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payments he received and the contacts he made by disclosing

You will also see on

You will

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exactly who he was being paid by and exactly what he was

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doing for them.

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Now, during this trial you will hear from

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many witnesses.

I've mentioned some of the categories of

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witnesses you will hear from of people who paid Senator

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Bruno.

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from Senate staffers, people who handled union and/or

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legislative issues, people who handled budget issues, and

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lawyers.

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who will testify.

You will hear from union officials and you will hear

I want to say a word to you about the witnesses

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The government does not vouch for any witness

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who will testify during this trial.

It will be up to you,

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as Judge Sharpe has already told you, to determine the

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credibility of the witnesses.

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function of the jury.

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to do this.

It is a very important

Now, there are several ways for you

One is to look for corroboration.

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

Did you hear

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GOVERNMENT OPENING - COOMBE UNITED STATES v BRUNO 09-CR-29 other testimony or see documents that tend to suggest that a

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witness is telling the truth?

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witness have some motive to be truthful or untruthful?

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Another is to look at what kind of benefit a witness is

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receiving.

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that might affect his or her testimony?

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bias.

Does the

Is the witness receiving any kind of benefit And another is

Does the witness have any kind of bias?

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Another is motive.

In addition to the testimony, you will see many documents.

The documents, many of which were created

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when the events occurred, will be particularly helpful to

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you as you evaluate the testimony of the witnesses.

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will be a lot to digest as the trial proceeds, but after you

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have heard and digested all of the evidence in the case, you

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will be persuaded beyond a reasonable doubt that Senator

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Bruno did, indeed, violate honest services mail and wire

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fraud, and I will return to you and I will ask you to find

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him guilty of all of the counts in the Indictment.

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Thank you.

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THE COURT:

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MR. LOWELL:

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THE COURT:

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MR. LOWELL:

Thank you.

There

Mr. Lowell.

May it please the Court. Please. Counsel.

Members of the Bruno

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family.

Ladies and gentlemen of the jury.

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didn't take Miss Coombe but 30 seconds to raise the issue of

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$3.2 million.

And it's a lot of money.

As I thought, it

But the evidence is

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 going to show you that that $3.2 million was over 12 years

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from 13 different companies.

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evidence is going to show you, when you put it in that

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perspective because we can start, as Miss Coombe said, by

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agreeing of the importance of having honest public

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officials, but the evidence that you hear and that you're

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going to see is going to show you that Joe Bruno, when he

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was a senator, and the senate staff who worked with him,

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carried out this ideal for over 30 years until he retired

Looks a lot different, the

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last year at 80 years old.

Having this as a proper goal,

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that of having honest public officials, the evidence will

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show that in this case, the prosecutors made a mistake by

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charging a man who will be shown to be a hardworking, honest

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public servant who was elected and re-elected 16 times,

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often with no opposition, to be somebody who would violate

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the public trust that he cherished so much.

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heard that this was a case about public officials, and

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prosecutors use the phrase theft of honest services, you may

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have thought, oh, the Government's accusing Joe Bruno of

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bribery or taking official actions for gifts or extorting

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people to get benefits or bags of cash or secret meetings or

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kickbacks.

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Mr. Bruno did not do legitimate business with companies that

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are listed in the Indictment, you may have thought that they

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were somehow involved in an illegal enterprise, they were

When you just

And when you heard Miss Coombe say that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 involved in organized crime, or who knows what.

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is your impression, let me start by telling you that the

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uncontradicted evidence in this case will be that there were

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no exchanges of any kind for official action for any

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payment; that there was never any pressure of Senator Bruno

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on anyone; that there was no payoff, but salaries on

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businesses that he was allowed to have; that there was never

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any action that he took in front of any state agency for the

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funds that he received; and, finally, that there was no

But if that

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hiding of anything required to be reported in the State of

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New York.

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And you will see after all the exhibits Miss

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Coombe told you about, all the documents, all the number of

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witnesses who have been interviewed and will come before

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you, all the people that have been spoken to by the

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government, all the massive amount of evidence that has been

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acquired, you will not find one single piece of paper that

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has anything from their union pension funds, senate staff,

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Senator Bruno's office, his family members, all whose

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records you will see, not one document, not one event, not

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one check, not one letter, not one phone message, not one

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note, nor a single witness who will say anything about being

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in a scheme to defraud, trying to hide information, not

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disclosing what they thought was proper, not taking money

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improperly.

Not one.

Instead, the only document that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

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DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 you're going to see that talks about fraud, schemes and

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wrongdoing is the document that the prosecutors wrote

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themselves, the Indictment.

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Instead, the evidence is going to be document

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after document where Mr. Bruno or one of his staff was

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asking the right question, trying to do the right thing,

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trying to fill it out the right way, being sensitive to any

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conflicts of interest and to make sure that the ethics rules

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were obeyed.

And I say instead, because as you read the

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charges or hear about them or listen to what Miss Coombe

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just said, you would probably get the impression that Joe

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Bruno, when he was a state senator and also in business, did

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everything himself; that he set up his own businesses; that

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he answered his own phones; that he sent his own mail; that

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he kept his own finances; that he paid his own bills; that

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he managed his own checking account; that he filed his own

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taxes; that he wrote his own employment agreements and he

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did his own ethics committee disclosures forms.

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But the facts are going to show you that is far from the

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case.

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including a number of lawyers and ethics experts, none of

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whom the prosecutors have charged with anything.

23

will have to decide how did Mr. Bruno do wrong.

24

will see right from the start of this case that these

25

lawyers and ethics staff will swear under oath from this box

All of it.

He included a lot of people in the so-called scheme,

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

And so you And you

19

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 (indicating) that they were brought into the process of the

2

outside jobs of the disclosure forms to do the right thing,

3

to make sure it was done correctly, and that Mr. Bruno was

4

sensitive to even the appearance of a conflict of interest

5

and that he was careful and that they were careful on his

6

behalf.

7

The prosecutors have written an Indictment

8

and it has 35 pages of allegations all around the issue of

9

honest services.

Consider, please, the evidence to be 35

10

strands of charges that are on the wall, and it will be now

11

I would like to go through and see which ones stick.

12

me review with you what is and especially what is not the

13

crimes charged.

14

So let

They are not that when he served as a

15

business consultant, he did not send a written invoice or

16

write a written report.

17

required.

18

will see that he wasn't supposed to.

19

helped his daughter Kate by giving her a job in his private

20

company using completely private funds.

21

his senate staff helped him with his ethics forms and

22

finances and business arrangements after they had already

23

worked a 40 hour week.

24

of the Government's case, is the allegation that Mr. Bruno

25

lied on his financial disclosure ethics forms and in other

You will see that that was not

It is not that he didn't punch a time clock.

No.

You

It is not that he

And it is not that

The actual charges, the heart

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

20

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 documents. And what is the --

2

MS. COOMBE:

Objection, your Honor.

3

not the Government's theory of the case.

4

THE COURT:

5

MR. LOWELL:

That's

Your objection is overruled. And what is it the prosecutor

6

alleges that he lied about?

Was it his private jobs that

7

they allege resulted in having a conflict of interest with

8

his public service?

9

people who the prosecutors allege had a significant interest

Because he was a legally working for

10

in what was going on before the New York State government?

11

And then the third thing is that, they even charge that

12

they -- that he did not do enough work for some of the

13

employers that they have listed in the Indictment to justify

14

the fees that he received.

15

Indictment, his salary was, in fact, not income, but were a

16

series of gifts that he also did not disclose as such.

17

this, they have brought eight separate charges around all of

18

his employment with these 13 companies, for all the years he

19

worked as a private person in addition to his public

20

service.

21

your screen, that from in or about 1983 -- 1993 and

22

continuing through 2006, the entire 13 year period, they

23

allege to be the scheme to defraud.

24 25

And so, according to the

From

Indeed, the Indictment reads, and you can look at

In effect, they are alleging that all of his private employment -- and you've heard the prosecutor say BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

21

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 that it included McGinn Smith and Wright Investors Services

2

and a man named Fassler and a man named Abbruzzese and a man

3

named Ball; she did not mention a company named Asentinel,

4

but her Indictment does -- are all part of the same scheme

5

for the entire period.

6

you that these are different companies hiring him in

7

different years, with different people, with different

8

missions, with different circumstances, and with different

9

arrangements, and that they are not any scheme at all.

10

But the evidence will actually show

As you hear the evidence, please keep in mind

11

that there are two parts to what Miss Coombe just said, and

12

she enumerated them to you.

13

be -- and to use her exact phrase -- a concealment or a

14

false statement and --

15 16

MS. COOMBE:

She said, first, there has to

Objection, your Honor.

I didn't

say false statement.

17

THE COURT:

Overruled.

I have already

18

explained to the jury the function of an opening statement.

19

It is argument.

20

It is not evidence. MR. LOWELL:

Overruled.

There are two parts to the

21

Government's charges, both you will have to find beyond a

22

reasonable doubt, as the Court has instructed you and as

23

Miss Coombe has laid out.

24

false reporting, a concealment, something that was supposed

25

to be disclosed but he purposefully did not.

The first is that there was a

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

Second,

22

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 falsely not disclosed was a significant conflict of

2

interest.

3

is no crime.

If you don't find that both occurred, then there

4

We are in a federal courtroom in a federal

5

courthouse in a federal case, but you will see that the

6

Indictment does not charge or define any federal law that

7

tells New York State legislators how to fill out their

8

disclosure forms, how or what is a conflict of interest,

9

what defines how much work you're supposed to do in your

10

private work.

No.

That's not in the federal law.

But what

11

the prosecutors do quote from are a series of New York State

12

ethics rules that they put right in the Indictment.

13

will see ... that they allege that there was state ethics

14

rules that Mr. Bruno and other state legislators were

15

supposed to fill out and follow.

16

itself states, a violation of these New York State rules, if

17

they were pursued by state officials, would be punished by

18

either a civil or administrative fine, like a speeding

19

ticket I suppose or as a simple misdemeanor.

20

prosecutors have brought this case, you have now been

21

explained by the Judge and the prosecutor the way its made

22

the proverbial federal case, is to allege that Mr. Bruno's

23

actions violated New York State law, and then because

24

someone mailed Mr. Bruno a pay check or somebody sent an

25

e-mail, they used interstate commerce, and that gave federal

And you

But as the Indictment

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

So the way the

23

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 jurisdiction to the case.

2 3

Miss Coombe has told you the Government's part of the story.

4

Now it's my turn.

My dad had a favorite radio show.

It was

5

called The Rest of the Story.

6

Paul Harvey who would tell you part of a story and then you

7

would think the outcome would be one way, but then he would

8

tell you the rest of the story and you would often hear the

9

opposite.

10

There was an announcer named

So I would like to go over each and every

allegation with you to show you the other side of the story.

11

The Indictment states that Mr. Bruno had a

12

conflict of interest by contacting for personal compensation

13

and by entering into financial relationships with persons or

14

entities who were pursuing their issue before the

15

Legislature or state agencies, and -- and this was the

16

"and" -- by concealing the nature of such conflicts of

17

interest and relationships.

18

from another part of the New York law.

19

member of the legislature should have any interest which is

20

a substantial conflict of interest with the proper discharge

21

of his duties.

22

obligation that the prosecutors put in the document that

23

brings us to court today doesn't talk about any conflict of

24

interest, it doesn't talk about the appearance of conflict,

25

but says there has to be a substantial conflict.

The document goes on to quote It states that no

And please note that the New York State

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

That's

24

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 what the charge says. And as to that, the government and

2

the Indictment goes on to define what it means by quoting

3

another partial portion of the New York State ethics law.

4

And that says that a conflict is that which will impair an

5

official's independence of judgment.

6

impair.

7

So as to conflicts of interest, the government alleges that

8

companies Mr. Bruno worked for when he was working in

9

private business had interests in what was going on in New

It doesn't say might

It says will impair its independence of judgment.

10

York State government.

Actually, that's not even the

11

charge.

12

explained.

13

companies that Mr. Bruno worked for or a company other than

14

the one that hired him, whether it was Mr. Fassler or

15

Mr. Abbruzzese or Mr. Ball, had an interest in the New York

16

State government and that caused Mr. Bruno to take a

17

position in government that was not his independent

18

judgment.

It's one step more removed, as Miss Coombe They actually charge that the client of the

That's what the statute says.

19

But the whole evidence, the rest of the story

20

will tell you something else.

First, you're going to see

21

that New York is one of those states that has a part time

22

legislature.

23

see, legislators are allowed to have outside jobs.

24

might not have known that from the presentation that Miss

25

Coombe made to you.

Its session is not full time.

Next, you'll You

Indeed, the evidence will show that in

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

25

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 2004 alone, almost half of New York State legislators had

2

outside income and employment.

3

government and what you'll hear to be it's 130 billion

4

dollar budget involves almost every business and every

5

profession, once private employment is allowed, you're going

6

to hear from the senate staff that it's almost impossible to

7

work for someone or somebody whose business does not have

8

some interest in the New York State government.

9

Given that New York State's

And third, whether it is tax laws, licensing

10

agreements, employment laws, environmental laws, work safety

11

laws, housing codes, health care permits, you are going to

12

hear from the senate staff that you would be hard-pressed to

13

find any business not interested in what the Legislature

14

does.

15

years, like Ken Riddett or Frank Gluchowski or other

16

senators that the government may call as witnesses also will

17

explain this to you at the trial.

And the lawyers who worked for the Senate for over 30

18

As part of their conflict of interest charge,

19

the prosecutors allege that Mr. Bruno did work for a company

20

named McGinn Smith and Wright Investors Services that

21

provided investment advice to union pension funds and that

22

unions had interests in front of New York State.

23

the prosecutors may parade 20 witnesses to the box and may

24

take up a week of evidence doing so to tell you that

25

Mr. Bruno made an introduction of their pension fund to BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

In fact,

26

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Wright Investors Services and that they, the union, cared

2

about a piece of legislation or a note.

3

with either of that.

4

those witnesses.

5

business having some general interests in New York State

6

government is the starting point of any conflict of interest

7

and not the ending as to what would make a conflict.

8

Remember the word "substantial".

9

lawyers who are called to the stand are going to explain

We don't disagree

And they wouldn't even have to call

Because the evidence is going to be that a

And the senate ethics

10

this difference to you as well.

And among the things that

11

these experts will say when they are testifying witnesses is

12

the following:

13

this company called McGinn to one of his ethics lawyers, a

14

man by the name of Francis Collins, who goes by the name Tim

15

and who is now a New York State Judge.

16

described the work that McGinn asked Mr. Bruno to provide to

17

them.

18

clients, unions and their pension funds.

19

then tell you that in keeping with Senator Bruno's practice

20

of making sure he could do outside work and that he will not

21

have a conflict of interest, Mr. Bruno asked Mr. Collins to

22

come to a meeting to discuss his possible employment with

23

McGinn, and that he also asked Judge Collins to get an

24

opinion from the legislative ethics committee to make sure

25

that it was okay for him to take the job.

Mr. Bruno provided his offer to do work for

That letter

And that would include, among other potential Judge Collins will

And you're going

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

27

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 to see the actual letter. You will see that it is Senator

2

Bruno asking then legislator George E. Pataki, later

3

Governor, the chair of the ethics committee as to whether he

4

was allowed to take this job.

5

Collins wrote that letter and that it was Judge Collins, not

6

Senator Bruno, who drafted the letter that went to the

7

ethics committee that described the work that Mr. Bruno was

8

offered to do by McGinn.

9

Judge Collins, and it was to his staff, was just make sure

You will hear that Judge

And Mr. Bruno's instruction to

10

you do it right.

11

committee wrote back, considered the request, and told

12

Senator Bruno that this type of work was allowed.

13

And then you'll see that the ethics

Moreover, if you have the impression from

14

what you just heard that Mr. Bruno pressured funds or anyone

15

else to hire the firms that hire him, McGinn or Wright

16

Investors, with some idea if they would not do so, he would

17

take action again them, he would not help them in the

18

Legislature, or he would do anything else, the evidence

19

again will lead you to the opposite.

20

hear when you hear the witnesses from Wright and the pension

21

funds is as follows:

22

hired as, he has always said, to make connections and to

23

open doors.

24

in the senate ethics field, Mr. Riddett, Mr. Gluchowski, and

25

others, that this is perfectly allowed.

Because what you will

First, you'll see that Mr. Bruno was

And you will hear from the attorneys that work

Then you will hear

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

28

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 that after making an introduction between his employer

2

Wright Investors Services and a possible pension fund,

3

that's all Mr. Bruno did.

4

like Peter Donovan or a man named Eugene Helm and all of the

5

pension funds witnesses, like a man named Larry Bowman from

6

the Plumbers Steamfitters, or Sam Fresina from the Laborers,

7

or John Bulgaro, if the government calls them, they will all

8

agree that Mr. Bruno never remotely pressured anyone to hire

9

Wright.

The Wright investors witnesses

All he ever said was they were a good shot and the

10

pension funds ought to give them a look, and if what they

11

saw was good, great, and if they didn't like what they said,

12

goodbye.

That's all he said.

13

The Wright pension fund witnesses will also

14

tell you that these evaluations of Wright were not done by

15

the seat of the pants, by some political, inexperienced

16

union official.

17

themselves that they had and they fulfilled their serious

18

obligations to make sure that they invested their member

19

funds wisely.

20

Investors Services had to make presentations.

21

show their abilities and to convince the trustees that they

22

were good enough.

23

not just hear from Wright, but often heard from two or three

24

or more other possible investment managers, as when you see

25

a piece of evidence from one of the pension funds, a Local

Instead, you will hear from the trustees

And to do that, you will hear that Wright They had to

You will see that the pension funds did

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

29

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Teamsters Union 294, and you will see just in this one

2

example, three presentations by three separate investment

3

managers, with Wright just being one of them, and the

4

trustees getting to pick who was best.

5

witnesses will tell you that sometimes they got the

6

business, sometimes they didn't, and whether they did or did

7

not was based on whether they were the best for the job.

8

had nothing to do with whether Mr. Bruno made the

9

introduction or not.

Wright Investors

It

And if that were not enough, you're

10

going to hear that the pension funds also employed

11

independent financial advisers and lawyers.

12

Securities or a firm called Morgan Stanley or even a former

13

White House counsel and U.S. Department of Labor official to

14

help make decisions about who was the best investment

15

manager.

16

background, you will hear and it will come to the stand,

17

actually attended the meetings of the trustees.

18

see, for example, at a meeting of a union called Laborers

19

Local 190, where their independent adviser, a man by the

20

name of Frank Lily who used to work at the White House and

21

used to be in the Department of Labor was the one to make

22

the recommendation.

23

sometimes as well, Wright was the right thing.

24

see that Wright was, in fact, a good investment firm, and

25

that they should have been hired by the pension funds.

Like Wachovia

This review by independent advisers with this

As you will

Wright witnesses will tell you that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

And you will

In

30

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 fact, Wright witnesses will tell you that before they hired

2

Mr. Bruno as a consultant, Wright managed over $2 billion of

3

pension fund business -- 2 billion -- and that after he

4

stopped working for them, they maintained the business and

5

the expertise and that they were, indeed, a good pension

6

fund manager for people to use.

7

has already happened, that the prosecutors may tell you that

8

Mr. Bruno made 15 calls that helped 11 firms make an

9

introduction between Wright and pension fund managers.

The evidence will be, it

But

10

that's not the whole story.

11

that Wright investors had 121 such pension funds that had

12

decided that they were the ones that could best service

13

their needs.

14

advisers and lawyers and trustees were also never pressured

15

in any way by Mr. Bruno to hire Wright.

16

turns out, that a pension fund didn't hire Wright or stopped

17

using Wright, Mr. Bruno did nothing to stop that, to hurt

18

the pension fund or their unions or anything at all.

19

The whole story will show you

And you will also hear that these independent

And the fact, as it

From Wright and the pension fund witnesses,

20

the evidence will be that the unions with whom Mr. Bruno and

21

the other state legislators dealt, by the way, on

22

legislation is not the same as the pension fund trustees.

23

There are unions and there are pension funds.

24

see that the pension funds are regulated under federal law.

25

You may have heard something called the Federal Pension Fund BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

And you will

31

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Act, and it is federal law, not state law that regulates

2

them, and that Mr. Bruno could not have been an impact

3

because they didn't regulate the pension funds.

4

a piece of evidence that Miss Coombe didn't tell you which

5

you're going to hear.

6

who represented unions but often there was an equal number

7

of management or employer trustees.

8

money too.

9

unions wanted is not going to be the evidence.

10

And here's

These trustees were not just people

Because it was their

And so the idea that the trustees did only what

I think from what I heard the prosecutors

11

say, the evidence is going to be that Mr. Bruno would

12

contact a union and then the pension fund would make a

13

decision.

14

that's not true.

15

union official would then be working through a financial

16

independent adviser.

17

may also in that room have an attorney.

18

talk to the trustees, and among the trustees will be

19

management, and then a decision is made.

20

Mr. Pericak, who will talk to some of the witnesses, or Miss

21

Coombe state that a pension fund did not know that Mr. Bruno

22

was working for Wright, as you heard her say that there was

23

an effort not to disclose, you ought to consider this:

24

pension fund trustee did not know that Mr. Bruno had any

25

financial connection with Wright, then how could that

The rest of the story is, I'm going to show you A union official may get contacted, a

An independent adviser, you will find, These two will then

So when

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

If a

32

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 pension fund trustee or that union be making a decision to

2

try to help Senator Bruno with a financial arrangement that

3

they didn't even know about?

4

the whole evidence.

5

So as to pension funds, that's

And that will be the rest of the story.

With respect to the private people who hired

6

Mr. Bruno over the last 13 years, the prosecutors charged

7

this too was part of the scheme to defraud, to lie about

8

employment, to hide conflicts of interest.

9

evidence will show you to the contrary.

But, again, the

First, you will

10

hear from the people who hired Mr. Bruno -- a Mr. Fassler, a

11

Mr. Abbruzzese, and a Mr. Ball or perhaps his wife -- that

12

not one of them hired Mr. Bruno as a consultant to do

13

anything with the state government.

14

each of them, that Mr. Bruno was a successful business

15

person in the communications industry before he was elected

16

and that he was a successful speaker, a leader, thinker and

17

strategy man.

18

of this experience and success.

19

law, you will hear that they were allowed to have it.

20

the prosecutors may raise the issues that he never wrote a

21

written report or Mr. Bruno didn't punch a clock or he

22

didn't have a time sheet, the employers who come as

23

witnesses will tell you it's not what they were supposed to

24

get from him, and you will hear that that's not what

25

consultants do.

They will tell you,

These men who hired him wanted the benefits And under New York State While

In fact, you are going to hear from the

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

33

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 employers and from the senate lawyers involved in the

2

contract process, again, Judge Collins, Ken Riddett, who you

3

will find was a former judge, and Frank Gluchowski, that

4

Mr. Bruno was not required to do any specific amount of

5

work; that the lawyers made this clear in their contract

6

negotiations with the employers; and that these lawyers

7

actually either wrote or revised the agreements between

8

Mr. Bruno and his employers to make absolutely clear, as

9

this contract example will show you, that the company

10

understands that you, meaning Mr. Bruno, will have sole

11

discretion to determine your schedule in providing the

12

services under the contract.

13

By the way, while we're on the subject, you

14

will hear and see that in each instance, the prosecutors

15

allege to be part of a scheme to defraud, Mr. Bruno asked

16

lawyers, and not just any lawyers, but Judge Collins, former

17

Judge Riddett, and Frank Gluchowski, all experienced with

18

ethics law, to determine if he could do the work and who

19

actually wrote or revised contracts under which he worked.

20

These attorneys and judges will tell you that they were put

21

in the middle between Mr. Bruno and the business entities to

22

make sure that it was done right.

23

or judges are charged with any offense.

24

to ask, how is there a scheme if they're the ones

25

responsible for the contracts?

None of these attorneys And you will have

And the employers,

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

34

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Mr. Fassler, Mr. Abbruzzese, Mr. Ball or his wife will tell

2

you that the advice they received from Mr. Bruno was what

3

they hoped; they will tell you why it was valuable, they

4

will tell you why it helped them, and they will tell you

5

that when it stopped, they ended the relationship.

6

again, with no incident, no recrimination, or no problem.

7

And,

And, furthermore, the evidence will be that

8

each of these people who hired Mr. Bruno was not a stranger

9

to him.

He was not someone looking for an improper

10

influence or a way to the door.

11

to get Mr. Bruno's ear.

12

acquaintances who already had his ear.

13

hire him, pay him, make him a consultant if they wanted to

14

find out what was going on or ask the Senate staff to deal

15

with a problem.

16

He was not somebody trying

These were longstanding friends or They didn't have to

The prosecutors charge that these business

17

people involved paid Mr. Bruno too much or Mr. Bruno did not

18

earn the money he was paid.

19

that from the people who hired him.

20

more than that, however.

21

that Mr. Bruno went about finding companies who had business

22

in front of the New York State government as a means of

23

finding employment.

24

However, the rest of the story is going to be:

25

supported the casuals of working men and their -- and women

But you're not going to hear The Indictment charges

The Indictment actually charges

And it says it in the Indictment.

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

Mr. Bruno

35

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 and their labor unions and the goal of economic development

2

to create jobs from the day that he was elected to office

3

before he did any work for any of the companies that are

4

listed in the Indictment.

5

positions and the help that he provided for people was the

6

reflection of what the statute calls, quote, independent

7

judgment of what was good for Upstate New York and the

8

people who worked and lived here.

9

that these efforts Mr. Bruno took were not for unions.

You will see, therefore, that the

The evidence will show As

10

unions, they were for working people who might or might not

11

be in unions.

12

vacations or cars or bonuses or buildings.

13

efforts to support a minimum wage, to make sure welfare

14

didn't cost jobs, to get training grants for unions so

15

workers would be able to keep up with technology, for

16

ridding the workplace of hazardous materials and other

17

safety improvements that would benefit workers who happen to

18

be union members.

19

Ed Bartholomew, John Porter, Abe Blackman, or Dave Dudley

20

will be the witnesses who can explain this to you.

21

proof at trial will be that Mr. Bruno's motivation, his

22

independent judgment to help working people and not their

23

unions was not whether Wright hired him or whether pension

24

funds hired Wright, but started the minute he understood

25

that his immigrant Dad was a worker involved with coal in a

They were not efforts to get union leaders These were

And the staff who worked on these issues,

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

The

36

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 paper mill and did not read or write and held that job under

2

very bad conditions for 30 years and who, when the company

3

brought in new equipment, fired him because he was unable to

4

read the documents.

5

made it a commitment to support training grants that would

6

keep workers viable whenever there were changes in the

7

industry for which they worked.

8 9

And from that day forward, Mr. Bruno

In addition, you will see Mr. Bruno's positions to help unions' men and women was, was, finally,

10

we can agree was, as the prosecutors say, the cost of

11

Mr. Bruno's job.

12

story is that he learned about the conditions of working

13

people and supported their issues because he was a wage

14

laborer himself.

15

driving a truck through Glens Falls to put himself through

16

college was how he learned the lessons that he put into

17

place to show his independent judgment as a legislator.

18

the prosecutors will raise the support for issues and talk

19

about the hundreds of thousands of dollars of grants that

20

were part of the process to get benefits for working men and

21

women.

22

his, yes, but not because any union pension fund hired

23

Wright or not because any union was somebody he hoped Wright

24

would entertain a presentation with, but a lesson you will

25

hear was because of a lack of proper health care that his

Not the job they say.

The rest of the

Cutting and hauling blocks of ice and

And

The evidence will be that this was a priority to

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

37

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 mom experienced that caused her premature death, leaving his

2

Dad to raise eight kids.

3

will see how his health care reform with working people had

4

nothing to do with Wright was that he supported these

5

initiatives before he was ever hired by Wright.

6

supporting these initiatives after he stopped working for

7

Wright.

8

hired Wright.

9

that never hired Wright.

And another piece of evidence you

He supported these initiatives for unions that He supported these initiatives for unions And he even supported these

10

initiatives for unions that fired Wright.

11

this from the senate staff as well.

12

He was

And you will hear

While the prosecutors charge some of these

13

efforts by Mr. Bruno or his staff did create opportunity for

14

a few of the businessmen who hired him, the people he talked

15

about, Miss Coombe mentioned Mr. Fassler, Abbruzzese, the

16

rest of the story will be, that he was never hired by any of

17

these individuals to take any action in the state and he was

18

never paid by them to do so, is that the companies that they

19

raise, like this company Evident or CTI Communication

20

Technologies are not the companies that hired him.

21

not the same companies that hired him.

22

that some of the things the Government will raise, if you

23

slide forward, that helped, like when he was doing work on

24

what Miss Coombe talked about for utilities and contracts

25

and ConEdison, these were efforts that his staff did for

They're

The proof will be

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

38

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 thousands of New Yorkers and not because anybody was a

2

friend or an employer.

3

staff like Bernie McGarry or Rick Burdick.

4

Government opening, you heard about a company called

5

Evident, which you will see Mr. Abbruzzese had an interest

6

in.

7

And will you see that that interest was no more than any

8

other person who was an investor in a company, one part of

9

which may have been doing business with the State of New

He did.

And you'll hear that from the senate In the

He had an 8 percent interest in this company.

10

York.

11

that these were the Fassler companies or the Abbruzzese

12

companies or the Ball companies, but as the Judge said, the

13

Indictment isn't evidence.

14

something quite different.

15

Just because the government in its Indictment may say

And the evidence will show

And as to helping his friends, such as

16

Mr. Fassler's company, a company called VyTek, with what you

17

heard a smidgen of about, attempting to get a contract, to

18

get the wireless contract for the State of New York, you'll

19

find that Mr. Fassler had a piece of one company that was in

20

a consortium with Motorola, IBM and TRW, and that his piece

21

of one company that was part of the consortium was going to

22

have to bid for the business.

23

Mr. Bruno could have nothing to do with the bid, didn't do

24

anything with the bid, and nothing came of it.

25

Mr. Bruno's friend didn't get the contract.

And you will hear that

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

In fact,

And you will

39

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 hear from this man that they probably should have because

2

the company that was awarded the bid failed.

3

Miss Coombe talked about a company called

4

Aviation Learning, another example of how Mr. Bruno took

5

actions on behalf of those who hired him.

6

from the company Aviation Learning will be they never heard

7

of Mr. Fassler and they never heard from Mr. Bruno.

8

finally, on every occasion neither Mr. Bruno nor his staff

9

did anything, they will tell you, for a company that his

But the evidence

And,

10

friends were involved in that they wouldn't have done for

11

you, or you, or him, or her, or anybody in New York with a

12

problem, because they will tell you that's how Mr. Bruno

13

thought of his constituent services.

14

you, again, his consistent independent judgment.

15

And that will show

The Indictment next charges that Mr. Bruno

16

did not do legitimate work commensurate with the payments he

17

received.

18

actually unreported gifts.

19

charge is made in the Indictment.

20

prosecutors' evidence, though, you will see that they can't

21

seem to make up the charge.

22

too much work to -- to introduce Wright to pension union

23

funds.

24

behalf of the other companies that he was hired by.

25

maybe is that the Indictment disagrees and the prosecutors

The prosecutors allege that those funds are Three different places that If you follow the

First, they accuse him of doing

And now they're saying he didn't do enough work on

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

And it

40

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 think that he should have done more work or been paid less,

2

but the witnesses who hired him will tell you that Mr. Bruno

3

did what the work in the agreement which said he should do

4

and that they think the federal government is becoming the

5

salary police and criticizing their relationship.

6

And one more thing.

The prosecutors charge

7

that the money Mr. Bruno was paid over 13 years was for

8

gifts that he did not report.

9

and his accountants will tell you that he owed no tax on

But consider this, his staff

10

that if they were gifts and that he listed them as salary

11

and he paid taxes on them.

12

As salary.

Let me take a few moments to address the two

13

last strands of the Government's Indictment.

The issue of

14

the horse sale to Jared Abbruzzese and a company that was

15

not mentioned to you by name but serves as the last charge

16

in the Indictment, a company called Asentinel.

17

horses, the prosecutors allege that part of the scheme in

18

2005 or 6, Jared Abbruzzese sold his interest in a

19

thoroughbred race horse to Mr. Bruno for what they say was

20

an inflated price as a way to give him another improper gift

21

not disclosed and that the amount was a convenient $80,000,

22

left on a contract that Mr. Bruno had in a consulting

23

agreement.

24

doesn't tell you the rest of the story.

25

going to show you that this was not a horse sale made up as

As to the

They're right as far as it goes, they just The evidence is

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

41

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 to be part of a scheme and that Mr. Bruno and his family had

2

been involved in horses since they -- his kids were little

3

and since he had a farm.

4

the particular horse sale did not start in 2006, when it

5

ended, but it started two years before when three people,

6

Mr. Abbruzzese, a horse veterinarian named Dr. Bilinski, and

7

Mr. Bruno, joined together with the idea of breeding and

8

selling horses, and that both Dr. Bilinski and

9

Mr. Abbruzzese were experienced in the horse business as

10

well.

The evidence will show you that

And either of these men can explain that to you.

11

Next, they are going to tell you that the

12

value of thoroughbred horses is not a precise science.

13

Mr. Abbruzzese will explain that he had special reasons for

14

the money he paid for this horse.

15

absolutely right, that any witness could come to the stand

16

and say it was worthless, but worthless is what is the issue

17

that you will have to decide.

18

horse, not worthless if somebody wanted that horse for

19

reasons Mr. Abbruzzese and others will explain.

20

to which, as to the value of horses, you will see that this

21

was not about a single horse sale.

22

horses involved in the arrangement that led up to the

23

dissolution in 2006.

24

Government.

25

horses, one of which the government told you was sold for

And Miss Coombe is

Maybe worthless as a race

In addition

There were numerous

And you did not hear that from the

You also did not hear that in this group of

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

42

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 $80,000, is another horse that sold for 150,000, and another

2

horse that sold for 170,000.

3

than it looks at first.

4

before, that Mr. Bruno did as he had always done, by asking

5

senate ethics lawyers to be involved in the process to make

6

sure that the contracts were properly done.

7

the horses, will be what you see.

8 9

It's a lot more complicated

And you're going to hear, as

And that, as to

Indeed, these same ethics lawyers will tell you that in 2006, what you will see in the evidence, when

10

Mr. Abbruzzese and Dr. Bilinski and Mr. Bruno had this

11

venture to have horses, it dissolved, and you're going to

12

hear that the reason it dissolved was because everybody

13

wanted to obey the ethics rules.

14

and Dr. Bilinski wanted to get a racing thoroughbred

15

franchise or be involved in the race tracks or involved in

16

the racing aspects of horses, and because Mr. Bruno was a

17

senator, they were not allowed to be in a financial horse

18

relationship with a public official when racing was

19

involved.

20

that the reason they dissolved the partnership was not to be

21

a part of a scheme to defraud, but it was to do the right

22

thing under the ethics law.

23

are going to tell you that.

24 25

You see, Mr. Abbruzzese

And so you're going to hear from the witnesses

The lawyers and the witnesses

And as to that last company, Asentinel, let me say this for now:

Here, the charges are that Mr. Bruno

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

43

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 entered into an agreement to be a consultant to a company

2

called Asentinel by introducing Asentinel to people who did

3

business in New York State or people who were part of the

4

New York State government.

5

things.

6

Asentinel was a man by the name of David Perdue.

7

call him, David Perdue will tell you he has known Mr. Bruno

8

for 25 years, that they were in the communications business

9

together and they liked and trusted and wanted each others'

10

experience; that he approached Mr. Bruno, not the other way

11

around.

12

doesn't charge Mr. Perdue did anything wrong.

13

further will tell you that his business was an excellent

14

business which could save his customers, including the State

15

of New York, lots of money in telephone and communication

16

bills.

17

see that what was the very first thing that Mr. Bruno did

18

with the possible contract with the Asentinel?

19

to his ethics lawyer to see if it was a good idea.

20

you'll hear from the ethics lawyer that he reviewed the

21

contract and he didn't think it was a good idea because he

22

thought that it gave Asentinel too much power, so he

23

recommended to Mr. Bruno that he not do it.

24

happened?

25

Because his lawyer said don't do it.

But you need to know three

You need to know first that the man behind the If they

That's going to be important because the government Mr. Perdue

And, most important, as you have now heard, you will

He didn't.

He gave it And

And guess what

There was never any contract. And you are -- you'll

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

44

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 also hear that the lawyer who gave this advice was never

2

asked this question, even though he was interviewed by the

3

government six different times.

4

of the last two charges will be.

5

And that is what the story

Ladies and gentlemen, for all that we have

6

just reviewed, as you can see from the Indictment, the main

7

charge that the government has to prove beyond a reasonable

8

doubt is not that just Mr. Bruno had a conflict and not even

9

that he did not do enough work for the money that he was

10

paid, but, according to the Indictment, he schemed by,

11

quote, concealing, disguising, and failing to disclose his

12

financial relationships.

13

refers back to that New York State ethics law that says that

14

legislators should fill out yearly disclosure forms that

15

states, to question four on the form, any office or position

16

that he or she has.

17

of the occupation or business.

18

and the amount of a gift.

19

nature and the amount of income.

20

that the prosecutors have brought in this case says right

21

out there in the charges that under New York State law, for

22

a violation to occur, it has to be, quote, a false statement

23

made knowingly and willfully, with an intent to deceive.

24

will not, according to what you hear, be a violation of a

25

law to make a mistake or to fail to disclose something

Specifically, the Indictment

On question five, the name and address On question nine, the nature

And on question thirteen, the But even the Indictment

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

It

45

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 unless you did it with the intent and the purpose that Judge

2

Sharpe will instruct you at the end of case.

3

As the trial goes on, you'll become well

4

acquainted with a New York State financial disclosure form

5

and specifically with what the prosecutors say Mr. Bruno did

6

wrong.

7

the company he drew money from, Business Consultants or

8

Capital Business Consultants, and you heard Miss Coombe say

9

that, that he should have put down the name of the companies

As to question four, rather than list the name of

10

that were hiring him.

11

the name of Mr. Fassler's company, or he should have put

12

Sage or Interliant or VyTek.

13

allege just as to question five.

14

So he should have put down Wright or

And that would be what they

As to question nine, rather than stating what

15

he got paid and income taxes and it was income, he should

16

have put down all $3.2 million down.

17

have done.

18

That's what he should

As to question thirteen, rather than listing

19

that he received income from Business Consultants or the

20

company he worked for or Capital Business Consultants, he

21

should have put down Wright Investors.

22

funds.

23

contributed to the -- no, maybe he should put down the name

24

of the trustees.

25

supposed to put down, because when the people take the

No, no.

No.

The pension

He should have put down the unions that

Anyway, we'll find out what it was he was

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

46

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 stand, everything he did, he did pursuant to the way the

2

rules work.

3

And in addition to quoting from the New York

4

State law that makes a violation of disclosures a civil fine

5

or a misdemeanor, the prosecutors have alleged, as Miss

6

Coombe went over with you, that he committed four other acts

7

of concealment.

8

to do business through entities like Business Consultants

9

and Capital Business Consultants to hide his identity.

First, they allege that Mr. Bruno decided

10

Next, they accuse him of seeking an opinion from the

11

legislative ethics committee that he could work for pension

12

fund managers but conceal the fact that those clients would

13

include unions.

14

the fact that he was employed by Wright Investors Services

15

when he was asking union pension funds to give Wright

16

consideration.

17

purposefully failed to properly disclose that he was seeking

18

this business from unions by not properly filling out a

19

Securities and Exchange Commission form or by changing his

20

status from a consultant to an employee so that he can avoid

21

the issue of disclosure.

22

four charges, the evidence is going to show you is wrong.

23

As to the business entities, he is going to be shown not to

24

have used business entities like companies and doing

25

businesses as to failing to disclose, but like millions of

Third, they allege that Mr. Bruno concealed

And fourth, and finally, that he

And each and every one of those

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

47

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 people he works with, companies and entities, for tax

2

liability and other legitimate business reasons.

3

will hear that from the people who were involved in putting

4

these together, like his assistant, Pat Stackrow or the

5

lawyers involved.

6

this was not even a subject that Mr. Bruno knew much about,

7

whether to do business as a company, or doing business as,

8

or a partnership, or a joint venture.

9

others involved.

And you

Indeed, the evidence is going to show you

And that's why he got

And you will actually see the evidence of

10

the lawyers' involvement in the process who were responsible

11

for putting together Business Consultants and Brunswick

12

Equities.

13

do it on his own advice.

14

lawyers that gave him that advice.

Mr. Bruno didn't do it on his own, and he didn't

15

And you'll hear from the staff and

And as to doing business through a company

16

called or an entity called Business Consultants to disguise

17

the fact that he was behind the company, you're going to see

18

county forms, state forms, and federal income tax forms that

19

list Business Consultants, Capital Business Consultants, and

20

each and every one of them puts down that behind the company

21

is the name Joseph L. Bruno, and that the document that's on

22

the screen will have been filed with the Rensselaer County

23

Clerk himself.

24 25

As to hiding Wright from the unions and hiding the fact that he was going to work for unions from BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

48

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 the legislative ethics committee, the evidence will show

2

that this letter that Miss Coombe talked to you about and

3

that I showed you on the screen was written by Judge Tim

4

Collins who thought he was describing the work accurately

5

and properly.

6

Mr. Collins, discussed the issue with another lawyer, Ken

7

Riddett, and that Mr. Bruno was not involved in how Judge

8

Collins wrote the letter, that he never told him to hide

9

anything; that the attorneys who were involved did not think

You will hear from Mr. Collins that he,

10

they were doing anything wrong.

And the prosecutors have

11

not charged either of those men with being involved in this

12

scheme.

13

As to hiding the fact that he was employed by

14

Wright Investors when talking to unions, the evidence may be

15

that one or another trustee will say I didn't know that

16

Mr. Bruno had a financial relationship with Wright

17

Investors, but that didn't mean Mr. Bruno was keeping it

18

from anybody, because the whole evidence is going to be that

19

you're actually going to see letters and minutes of pension

20

fund meetings in which Mr. Bruno is not only mentioned, he's

21

actually at the pension fund meeting disclosing his

22

relationship to Wright.

23

presentation made to the paper international union.

24

Mr. Bruno was present.

25

witnesses, like Ken Singer, who will tell you that he heard

One, for example, will be the

You will hear from Wright Investors

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

49

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Mr. Bruno make the disclosure that he was involved with

2

Wright.

3

like Ken Riddett, and he'll tell you he heard Mr. Bruno make

4

the disclosure.

5

hide, to fail to disclose, to conceal, and the people who

6

are being concealed from are going to come to the stand and

7

say they weren't concealed.

8 9

And you will hear from Mr. Bruno's own staff people

So the evidence is going to be a scheme to

And as to trying to hide the names of the companies that Mr. Fassler or Mr. Abbruzzese was involved in

10

to show that he had any connections with these people

11

because the company's name is Interliant and Mr. Fassler

12

stands behind you, you will actually see the financial

13

disclosure forms where Mr. Bruno puts down the name of

14

Interliant, or VyTek Wireless, or those companies in which

15

he actually holds an interest when its a stock ownership.

16

But I suppose then the question will be, should he have put

17

VyTek, paren, by the way this means that Mr. Fassler who has

18

a two percent interest in it.

19

experts.

20

But we'll hear from the

As to this issue, you are going to hear from

21

these people, Ken Riddett, Frank Gluchowski, and Pat

22

Stackrow, all people involved, that they knew all about his

23

business relationships, that he never asked them to hide it;

24

he never asked them not to disclose it, and that didn't even

25

dawn on them this was something they were not supposed to BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

50 DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 Yes, as to that SEC form, the one that you heard about

1

do.

2

from the prosecutors, the Indictment reads that this was

3

something that Mr. Bruno was supposed to disclose and his

4

failure to do it was proof that he schemed to defraud.

5

is the obligation of the investment adviser.

6

hear that the investment adviser is Wright Investors

7

Service, not Mr. Bruno.

8 9

This

And you will

And then, as to the issue of changing Mr. Bruno from somebody who was a consultant or a referral

10

agent or a door opener, or whatever it is, that the

11

witnesses will say to being an employee so that this form no

12

longer had to be filled out, you're going to hear that was

13

the idea of Wright Investors Services for its purposes.

14

more than that, you're going to hear that this whole issue

15

of whether he should be an employee or a referral agent or a

16

consultant was discussed between Wright lawyers, lawyer

17

Helen George, and Mr. Bruno's lawyer, Ken Riddett, and

18

Mr. Collins as well, and that they came to the decision as

19

to the right way to do it.

20

But

And ladies and gentlemen, here's how you can

21

tell that the Indictment doesn't tell you the rest of the

22

story.

23

that the problem Wright was having in filling out this SEC

24

disclosure form was that the problem with obtaining the

25

forms was that certain trustees object to signing such a

The Indictment says, and Miss Coombe quoted from it,

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

51

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 form because they believed it looks as though they were

2

improperly influenced in their decisions to employ Wright.

3

And remember she said that to you?

4

says a good deal more.

5

even though the contract is awarded as a result of

6

competitive presentations by several advisers.

7

George, who wrote this letter, will explain that her

8

statement didn't have anything to do with Mr. Bruno's being

9

a public official, but had to do with the whole issue of

But the actual letter

And the actual letter says:

...but

And Helen

10

whether or not union pension funds should be introduced

11

through any such referral agent, and not because of his

12

position in the state Senate.

13

unless I just told it to you.

14

But you wouldn't know that

So let's finish with the disclosure forms.

15

Because, finally, as to the disclosure forms, that's the

16

heart of the case, the prosecutors say that Mr. Bruno

17

purposefully and knowingly lied on these forms by not

18

listing the client of Wright or his own consulting business

19

or by not showing that he got gifts.

20

to the disclosure forms will paint a different picture.

21

First, Mr. Bruno did not just take this form and fill it out

22

any old way; that he wanted to lie and hide and cheat.

23

was his staff, including lawyers and ethics experts who

24

decided how things should go on this form.

25

or Frank Gluchowski or Pat Stackrow is going to say they

The whole evidence as

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

It

Not Ken Riddett

52

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 were directed to do anything wrong. And none of them is

2

charged with doing anything wrong.

3

that Mr. Bruno provided all of his finances to his assistant

4

Pat.

5

W-2s, his 1099s, and every form from which these financial

6

disclosure forms were done, and that it was her

7

responsibility to gather the evidence.

8

not one single time did Mr. Bruno ever deny any staff person

9

access to these financial records that they kept.

You're going to hear

She kept his checkbook, his taxes, his income, his

And not one time,

Not one

10

time.

Not one single time did any of them say well, I want

11

to make sure that we include Wright Investors and he said

12

no, no, don't do that.

13

tell you it wasn't their job to get the information, put it

14

correctly on the form.

15

role, when this was done, was to look at the form maybe two

16

days before it was to be filed and signed it where his

17

secretary told him to sign it.

18

tell you that it was their direction to do anything but

19

let's get it right.

20

direction to get it right, they're also going to tell you to

21

look at the two things that gave them the directions.

22

First, you're going to see the instruction book that

23

everybody uses to fill out the financial disclosure form.

24

And that instruction book on the question that the

25

prosecutors say that he did wrong says boldly, boldly, in

Not one single time will any witness

And you'll also hear Mr. Bruno's

And not one of them will

And when they tell you it was their

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

53

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 case you didn't get it, clients, customers, or patients

2

(sic) should not be listed.

Client, customers, or patients

3

(sic) should not be listed.

So, you put down the name of

4

Wright, you're not putting down the name of Wright's

5

clients.

6

you're not putting down those entities that hired Business.

7

Why the scheme to defraud?

8

see, you will hold it in your hands, says, clients,

9

customers or patients (sic) should not be listed.

You put down the name of Business Consultants and,

The instruction book, you will

And if

10

that's not enough, look at the income.

11

this is a form you will see -- what does it say?

12

clients, customers or patients should not be listed.

13

to ethics, the staff is going to show you that they had the

14

ball and that they didn't drop it; they followed the

15

instructions; and that the instructions they followed gave

16

them the advice that now Mr. Bruno is being asked to answer

17

for.

18

Question thirteen -It says So as

And as to ethics, the staff will tell you one

19

more thing.

They will tell you he was so sensitive and he

20

was trying to avoid conflicts in a very difficult and

21

complicated world, he even asked if it was okay to play golf

22

with his son when his son was a registered lobbyist.

23

when you hear the evidence as to whether or not there was a

24

conflict or whether or not this man violated any of the

25

rules, you're going to have to ask yourself where was he BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

So

54

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 going to find better instructions than the ones staff told

2

him to follow.

3

So, finally, the evidence will be that

4

Mr. Bruno is the man the supporters thought he was, not a

5

man who violated honest services, but gave them services for

6

all the years he served.

7 8 9

You heard about his family's background a bit.

You will hear evidence about that.

You will hear

10

about his growing up and having five brothers and two

11

sisters.

12

behalf of working people based on the experiences of his dad

13

and of his mom.

14

position of working men through his own work experiences.

15

You'll hear that he served his country in the state

16

Legislature as a businessman and before that in the Korean

17

War.

18

leader who had business experience and was a successful

19

businessman and how important that was to people in Upstate

20

New York.

21

his staff involved in almost everything, not to do something

22

wrong, but to do what they were supposed to do.

23

rather than being, as Miss Coombe said, the third most

24

powerful man in the New York State Legislature, you will

25

hear that he was the most collaborative, that he delegated,

You'll hear about how he came to his position on

You'll hear about how he came to the

Whenever called, you'll hear he was the first majority

And you'll hear he was a man who helped and got

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

And that

55

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 that he brought senators in and asked them for their

2

opinion, and that when grants that Miss Coombe told you

3

about had his name on it or another senator's name on it,

4

and you'll hear from Senators Maziarz, Volker, Myers, and

5

the others that they may call.

6

Miss Coombe ended her presentation with you

7

as I would like to do, telling you this is a case about

8

intent.

9

that a person has to do something knowingly and willfully

10

and has to do something with a particular kind of intent,

11

intent to deceive.

12

prosecutors will have to show more than any violation of New

13

York State law, although we believe the evidence will show

14

that that wasn't even violated, they have charged and they

15

will have to prove beyond a reasonable doubt that there was

16

a scheme as they have alleged it in the Indictment to be

17

that it was a knowing and willful attempt by Mr. Bruno to

18

rob -- that's right, steal -- from the people of New York

19

their right to honest services in a manner that their chart

20

will instruct you at the end of the case.

21

The New York State ethics law, you recall, states

And this is a federal case.

The

There's a lot of evidence in this case.

And

22

there's always ways in a case, as Miss Coombe told you, if

23

you can sort it out, filter it, and figure out whether or

24

not somebody was taking actions to do something wrong or

25

whether he was doing actions not to do something wrong. BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

So

56

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 here are the questions that I think will sort the evidence

2

out in the various ways for you.

3

to have a conflict of interest if you being in support of

4

working people is something that you did all your life?

5

it a scheme to defraud to influence people to hire you

6

because of your position in government when no one will say

7

that that's what you did?

8

all the businesses involved are legitimate businesses that

9

hired him with a paper trail, a contract lawyer, ethics

Is it a scheme to defraud

Is

Is it a scheme to defraud when

10

lawyers, 1099s, W-2s?

11

by having that?

12

and your lawyers and your counsel to write to the ethics

13

committee in hopes that somebody will make a mistake and not

14

put down the fact that you have a union client?

15

scheme to defraud where the prosecutors allege that you were

16

hired for improper purposes, paid too much money, acted

17

improperly, using your firms and filing improper forms, and

18

not a single person comes into this courtroom and says they

19

were not part of such a scheme?

20

the evidence to determine whether or not this man had the

21

intent to deprive the people of the State of New York of his

22

honest services or whether or not these charges do not fly.

23

Is that the way you create a scheme,

Is it a scheme to defraud to ask your staff

And is it a

That's how you can measure

Ladies and gentlemen, you were chosen in a

24

long process today in which you promised to be fair and

25

impartial and follow the rules and laws.

And I won't go

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

57

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 over that because it's been so long. Let me remind you of

2

the three principal ones.

3

has told you.

4

First, Judge Sharpe told you an indictment is not evidence.

5

You don't need to hear more about that except you need to

6

understand that indictments and grand jurys are the process

7

by which prosecutors bring charges and that the defense has

8

no involvement in what happened in front of that grand jury.

9

Now we get our chance, and you are the people before whom we

And the government and the Judge

I want to do it a certain different way.

10

get that chance.

As to the presumption of innocence, I want

11

to take it one step further and remind you, as Judge Sharpe

12

did, that it is alone enough to force an acquittal until and

13

such time that each and every one of you is convinced by

14

proof beyond a reasonable doubt to the opposite.

15

enough -- let me say it a different way.

16

verdict form right this second and asked you to fill it out,

17

each and every one of you would have to vote not guilty

18

because if you didn't, you would not have provided the

19

presumption of innocence which the Judge has said you are

20

supposed to provide.

21

said, the prosecutors have it.

22

and every one of you individually about each and every

23

element in each and every one of their eight charges.

24

Mr. Bruno does not have to put on a witness, doesn't have to

25

try to disprove the charges, doesn't have to take the stand,

It is

If I gave you a

And as to the burden, as Judge Sharpe They have to convince each

BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

58

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 doesn't have to do anything. But -- you've seen the names

2

of witnesses and the documents you're going to see, but it's

3

not an obligation of the defense to do so.

4

As to what it is to have reasonable doubt,

5

Judge Sharpe told you what it means.

6

you again.

7

system of justice.

8

individually come to that conclusion yourself for there to

9

be anything that removes that presumption.

10

And he'll tell it to

You should know, it's the highest burden in our Nothing is higher.

And you have to

You have been very patient this whole day

11

with Miss Coombe and me, so let me finish by stating that it

12

is wrong for public officials to violate the public trust.

13

But it's equally wrong for an innocent man to be charged.

14

So when the evidence shows you that there was no failure to

15

disclose anything that was required, that there was no

16

intent to deceive, that there was no substantial conflict,

17

that there was no leaving off anything that was supposed to

18

be reported, and when the evidence does show you that there

19

were actions throughout this man's career that were

20

consistent with this independent judgment, when working in

21

private jobs and having outside income is allowed by state

22

legislators -- maybe they should change the law, but it's

23

allowed -- and when you include ethics lawyers in the

24

business dealings and follow these lawyers' advice, and you

25

do more disclosure than is required, you will see that BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

59

1

DEFENDANT OPENING - LOWELL UNITED STATES v BRUNO 09-CR-29 there's not even a state ethics violation that alone is a

2

violation of a federal felony.

3

the evidence is presented, at the end of this case, I'm

4

going to come back to this podium and I'm going to ask you

5

to restore this 80 year old's (sic) man's name and good

6

opinion by concluding the government has not proven any of

7

these charges beyond a reasonable doubt and that each and

8

every one of them was a mistake.

9

THE COURT:

And because of this, when

(whispering).

Thank you.

10 11 12

*

*

*

*

*

(end request excerpt.)

13 14 15 16 17 18 19 20 21 22 23 24 25 BONNIE J. BUCKLEY, RPR, CRR UNITED STATES COURT REPORTER - NDNY

Thank you.