Assemblyman Nelson Castro (
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Feds busted a Bronx assemblyman today for allegedly pocketing envelopes of cash to push legislation in Albany — marking the second corruption case against a state lawmaker this week.
Assemblyman Eric Stevenson [D-Bronx] got caught in a sting operation in which his co-defendants paid bribes to another, unidentified assemblyman who was cooperating with authorities, according to the Manhattan US Attorney’s Office.
Sources have identified the other lawmaker as Assemblyman Nelson Castro [D-Bronx]. His office confirmed his participation in the operation.
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Court papers say he’s been charged in a sealed indictment in Bronx criminal court, and has been cooperating for more than a year as part of a deal in which he will step down in disgrace to avoid prosecution.
In addition to Castro, the complaint against Stevenson says a cooperating witness in the case is also a pol “who has previously run as a candidate for the New York State Assembly.”
The Post exclusively revealed today that Sigfredo Gonzalez, who in 2008 unsuccessfully sought the statehouse seat that Stevenson now holds, is the cooperating witness.
“Stevenson solicited, agreed to accept and accepted cash payments totaling more than approximately $20,000,” according to the federal criminal complaint.
Castro’s office said in a statement today he will resign Monday. As part of his deal for leniency after his 2008 perjury indictment, Castro agreed to cooperate with the Bronx DA’s office in their corruption investigation and step down as a state assemblyman.
Stevenson, Igor Belyansky, Rostislav “Slava” Belyansky, Igor Tsimerman and David Binman were identified in a five-count criminal complaint filed by Manhattan federal prosecutors.
Stevenson’s four co-defendants run adult daycare centers in the Bronx and Westchester County and they paid off the Bronx Democrat for various favors, feds said.
The four got Stevenson’s help to reach ConEd and “expedite the installation of a gas line” at a center on Jerome Avenue, officials said.
Stevenson also reached out the the city’s Buildings Department to gain a certificate of occupancy for his pals, according to prosecutors.
The alleged scheme also called for Stevenson’s help to block construction of any other nearby adult daycare centers, thus making his co-defendants’ operations the only games in town.
According to the complaint, co-defendants paid for “Stevenson’s assistance drafting, proposing and enacting legislation that would establish a temporary moratorium on the construction and/or opening of new adult daycare centers which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by these two centers.”
“Assemblyman Stevenson was only too happy to oblige for the right price,” US Attorney Preet Bharara said today at a news conference.
The federal prosecutor pulled out a line from Tom Cruise’s “Jerry Maguire” to illustrate Stevenson’s alleged greed.
“Assemblyman Stevenson basically said ‘Show me the money,’ “ Bharara said. “The money was shown over and over again.”
The complaint notes that Stevenson and his co-defendants discussed naming one of the centers after Stevenson’s grandfather, the late Assemblyman Edward Stevenson Sr., who once held the seat Stevenson now occupies.
In January, Stevenson allegedly met with the cooperating witness and said he was worried that Tsimerman, one of his co-defendants, “might be recording their conversations.”
“Stevenson expressed concern that ‘they bring me down’ and said that if that happened, ‘somebody’s going to the cemetery,'” the complaint charges.
Stevenson knew the risk of accepting bribes and remarked on tape on Dec. 27 how prison time “put some age on” disgraced former city Comptroller Alan Hevesi, authorities said.
“Bottom line, if half of the people up here in Albany was ever caught for what they do, they would probably be in the same place [as Hevesi] so who are they bullsh—ing?” Stevenson was recorded telling the feds’ cooperating witness, according to the complaint.
During the same Dec. 27 chat, Stevenson showed he was keenly aware of what could happen if he was caught.
“Look at what they gave [former city councilman] Miguel [Martinez] from Washington Heights for $106,000 … five years [in prison] for $106,000, “Stevenson allegedly said. “(Former Assemblyman Anthony) Seminerio died in jail.”
But Stevenson might have also talked himself into believing he’d beat the rap, or get a cush sentence, if ever busted.
“Look at this guy [former state Sen. Joseph Bruno, he] got off on appeal and never went back. They had him for a million,” Stevenson allegedly said on tape.
“Look at [former state Sen. Carl] Kruger … he had been extorting money [since he was] a district manager. They got him in the, the easiest federal penitentiary you coud ever be in.”
In his official Web site bio, Stevenson claims to be following in “the great strides and footsteps” of his grandfather and his late father, who was a Democratic district leader, saying they served had both served his district “with impeccable character, distinction and honorable leadership.”
Stevenson was so brazen in his thirst for money, he ignored the cautionary tales of corrupt, convicted state Sen. Pedro Espada Jr., according to the complaint.
The cooperating witness identified as a one-time Assembly candidate — and was also a former employee of both Belyansky defendants — met with Stevenson on May 15 last year, one day after Espada’s conviction.
“The [cooperating witness] told Stevenson, ‘What happens in this business Eric, when the money is good and there is a way you can get it and you start to do it, and then you do it once, and then notice that you don’t get caught, then you go and do it again, and you keep doing it again, again, again, that’s what happens,” according to the complaint.
“You’ve gotta be real careful.”
Stevenson and his co-defendants are expected to appear in Manhattan federal court later today on charges including bribery and conspiracy.
Bharara declared this to be another sad day for New Yorkers, forced to see their crooked pols pocketing green for themselves.
“For the second time in three days, we unseal criminal charges against a sitting member of our state legislature,” Bharara said.
“As alleged, Assemblyman Eric Stevenson was bribed to enact a statutory moratorium to give his co-defendants a local monopoly – a fairly neat trick that offends core principles of both democracy and capitalism, simultaneously, and it is exactly what the defendants managed to do.”
The prosecutor sadly concluded that money rules all in Albany.
“And based on these allegations, it becomes more and more difficult to avoid the sad conclusion that political corruption in New York is indeed rampant and that a show-me-the- money culture in Albany is alive and well,” he said.
Bharara wondered out loud how many other bills and government actions are rooted in dirty, greased-palm payouts.
“Given the allegations in today’s case how many other pending bills were born of bribery — and worse how many passed bills were born of bribery?” Bharara said.
“How much of the work of the city and state government is tarnished by tawdry graft?”
Stevenson allegedly pocketed $10,000 cash on Sept. 7 last year after a steak meal in the Bronx with both Belyansky defendants and the cooperating witness — who was wired with video and audio recorders.
The lawmaker initially refused the envelope of green, fearing restaurant surveillance cameras would capture the illicit transaction, feds said.
“After the group walked outside the restaurant, Belyansky handed Stevenson [the envelope] containing $10,000 cash,” according to the federal complaint. “Stevenson’s receipt of [the envelope] is visible on the video recording taken by the [cooperating witness].”
Stevenson looked to get rich anywhere he could — including a hotel bathroom, prosecutors said.
The cooperating witness rented two adjoining hotel rooms in Albany on Feb. 16, setting the scene for a highly orchestrated dance of graft, officials said.
Slava Belyansky allegedly came into the witness’ quarters from an adjoining room and handed the one-time pol an envelope of full of money.
The cooperating witness then took a few steps into bathroom, where Stevenson had been waiting and handed him the envelope with $4,500 cash, prosecutors said.
“As Stevenson and the cooperating witness walked out of the bathroom … Stevenson then greeted Slava with a handshake and a hug,” according to the complaint.
Stevenson’s co-defendants really weren’t getting much for their investment.
The assemblyman’s moratorium proposal was introduced with just one sponsor, himself, on Feb. 20.
It was referred to the Assembly Aging Committee and that’s as far as it got. With no co-sponsors, it’s unlikely Stevenson’s co-defendants would score their prized local monopoly.
The Stevenson bust comes on the heels of another massive political corruption case that came down on Tuesday against state Sen. Malcolm Smith [D-Queens]. The lawmaker and several GOP operatives were busted for an alleged scheme to buy Smith’s way on to the mayoral ballot as a Republican.
Stevenson was first elected to represent the 79th Assembly District in 2010 and was re-elected this past November.
Bharara warned lawmakers that the bride they accept could be from a government informant.
“If you are a corrupt official in New York you have to worry that one of your colleageus is working for us,” said Bharara, who urged whistleblowers to come forward.
“So what I hope happens going forward is that if you are an elected official or you work for one or you’re in government anywhere and you see corruption or criminality of any stripe you will call authorities.”
All five defendants were released on $250,000 bond. They all must stay within New York state, though magistrate judge Nathaniel Fox granted Stevenson the right to enter New Jersey while traveling to and from Albany.
“I feel great. I’m innocent and I will prove it,” Stevenson said inside the courthouse as he was exiting, pleading ignorance about any wire taps. “I really want to know, it’s a big surprise to me.”
The embattled lawmaker speculated that he’s being unfairly targeted: “It could be because I’ve been an outspoken leader. I’ve been really outspoken for a lot of issues … stop and frisk and all those things.”
Stevenson’s lawyer Murray Richman said he’s confidence his client will beat the rap.
“I’m disheartened to see these charges being brought,” Richman said. “But I’m convinced, after due diligence and a review of the evidence, he’ll be exonerated of these charges.”
Co-defendant Slava Belyansky proclaimed his innocence and praised Stevenson.
“I’m innocent, that’s all I can say,” Belyansky said. “He’s [Stevenson] a great person. The community loves him. He’s the best politician I’ve ever known. He helps a lot of people.”
Belyansky had much less kind words for Assemblyman Nelson Castro [D-Bronx], who secretly helped prosecutors to save his own skin in a separate perjury case.
“He’s a rascal,” Belyansky said of Castro.
Co-defendant Igor Belyansky blamed mysterious forces for propping up a bad prosecution against Stevenson.
“People love him [Stevenson], they [unnamed opponents] want to push him out and get someone else elected,” Igor said. “That’s how they do it in America.”
Stevenson left court in a black Mercedes driven by his brother.
Additional reporting by Erik Kriss in Albany and Julia Marsh in New York