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ALBANY----The man poised to become the most powerful Republican in the state in January is being investigated by the FBI.
 After learning that someone had leaked information concerning the federal inquiry to the media, Senate Majority Leader Joseph Bruno (R-Brunswick) called a late afternoon news conference Wednesday to confirm that the FBI is probing him and his private consulting company, Capital Business Consultants LLC which he operates out of his Troy home in Rensselaer County.
The company provides marketing, business strategy and business development.
Bruno, 77, read a prepared statement and refused to provide a list of his company's clients, divulge his income from the business or say if the probe is related to state business. The federal investigation was initiated last spring and Bruno said that while subpoenas had been issued, he says he's had been told initially that he was not a target of the investigation.
"They're going into the background over the last five or six years into the relationships of my business interest", he said.
On Wednesday, a major Albany lobbyist and close friend of Bruno, attorney James Featherstonhaugh, said that federal investigators have asked him to produce records of a real estate deal in which both he and Bruno were involved, First Grafton Corp. The firm was dissolved in May 2005 and Bruno had owned 25% of the venture through a blind trust formed in 1992. The operation was formed to create residential developments on 625 acres in the town of Grafton near Bruno's home.
Other principals in the real estate venture were Bruno's brother, Peter; Doug Rutnik, father of newly elected Congresswoman Kirsten Gillibrand, and Richard Carota, a Glens Falls businessman and associate of Peter Bruno.
Bruno's son, lobbyist Kenneth Bruno, former Rensselaer County district attorney, built a house on property he and his ex-wife purchased from First Grafton for $44,000.
Bruno seemed apprehensive and nervous during the televised conference. He said that he doesn't know exactly what investigators are looking for but that he is cooperating fully.
"I have confidence in the system. Once they get through looking at whatever it is they want to look at, I'm sure that we're going to be just fine. I'm guilty of nothing", Bruno said.
Bruno has hired former U.S. attorney William Dreyer. He claims that under the state Constitution legislators are part-time and are allowed to be have outside employment. Bruno said that his consulting firm had been cleared by the Legislative Ethics Committee.
While under federal investigation himself, Bruno was among the loudest opponents and critics of Democratic state comptroller Alan Hevesi, calling for Hevesi's resignation for using state employees to chauffeur his ailing wife.
Bruno said that he was "sharing this" because there have been leaks, which I believe are totally illegal".
Allegations have been made against Bruno involving his connection with Evident Technologies, a company to which Bruno steered $500,000 in state grants. Two of Evident's directors, co-founder Jared Abbruzzese and Wayne Barr, a former co-chairman, are personal friends of Bruno's and share his avid interest in horse racing.
Abbruzzese is the subject of an investigation by the state Lobbying Commission for allowing Bruno to use his private plane for several trips including a tour of Kentucky horse farms owned by Barr. Bruno has refused to say if the investigation is related to Abbruzzese.
Abbruzzese is being represented by Albany attorney Stephen Coffey.
Published reports have indicated that Abbruzzese's wife, Sherrie who is listed as the manger of Dove Interests LLC, bought a 12-acre lot from First Grafton for $90,000 in 2004.
Despite long time allegations of shady dealings by Bruno and alleged conflicts of interest, Bruno claimed that "there have never been conflicts in anything that I have done. My life has been in business and I have always said that I would earn my living outside the Legislature so that I wasn't dependent on this income".
Bruno earns $125,000 annually as a state Senator, $79,500 as a senator and $41,500 as majority leader, a post he has held since 1994. He says that the investigation won't cause him to lose his leadership post to which he was elected again last month before his colleagues knew of the investigation. "I am guilty of nothing so why would it impact my ability to do anything?" 12-20-06
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© 2006 North
Country Gazette
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