State Sen. Carl Kruger is among eight people slapped today with federal corruption charges for diverting state funds into the pockets of lobbyists and cronies in exchange for $1 million in bribes, authorities said.
“Once again I am here to report, sadly, that the crisis of corruption continues in Albany,” Manhattan US Attorney Preet Bharara said at a new conference.
Kruger, flanked by his lawyer Ben Brafman, turned himself in to federal authorities at the Jacob K. Javits Federal Building in Manhattan at 8:30 a.m.
Kruger turned himself in with accomplice Michael Turano, who was accompanied by his attorney. Both have been charged with two counts of conspiracy and money laundering.
Asked about the charges against him, Kruger (D-Brooklyn) got teary-eyed and said, “I have no comment.”
In a statement, Brafman said Kruger is “saddened” because he’s “one of the most dedicated public servants for the past 25 years with an impeccable reputation.”
Since 2006, the feds allege that Kruger “received a stream of bribes” totaling $1 million “in exchange for taking official actions on behalf of the bribe payers as opportunities arose,” according to the indictment.
The feds also said Kruger “solicited and received” bribes from Soloman Kalish, who is also named as a defendant, and his company Adex.
Kruger then concealed the money he had gotten by “funneling the payments to shell companies” that had been created by his girlfriend’s son, Michael Turano, the FBI said in court papers based on phone wire taps.
The feds said lobbyist Richard Lipsky, who is also charged, paid bribes to Kruger on behalf of clients that included a major real estate developer, beverage distributors and a supermarket retailer.
In return for bribes, Kruger took official action in the interests of Lipsky’s clients. For example, he introduced legislation to delay the start date of the law that required bottle deposits on bottled water and issued a public statement in support of a law to permit liquor stores to extend hours of operation, the feds said.
Lipsky was fired this week by The Committee to Save New York, a coalition lobbing for Gov. Cuomo’s budget.
Committee spokesman Bill Cunningham said Lipsky was booted “to remove any distraction.”
A state senator since 1994, Kruger was the powerful Senate Finance Committee chairman from 2008 to 2010 when Democrats controlled the chamber.
“Every single time we arrest a state senator or assemblyman, it should be a jarring wake-up call,” said Bharara. “Instead, it seems that no matter how many times the alarm goes off, Albany just hits the snooze button.”
Bharara also said that “at its core, the complaint describes a broad-based bribery racket reflecting an unholy alliance of politicians, lobbyists and businessmen.”
FBI Assistant Director Janice Fedarcyk said, “The web of graft and corruption, of buying and selling influence, is not what representative democracy is supposed to look like. We remain committed to rooting out official corruption wherever it exists.”
At about 6 a.m. today, Kruger left the Mill Basin home of Brooklyn Community Board 18 District Manager Dorothy Turano, where he regularly spends a lot of time, and her son, Michael, according to residents.
After leaving the house, Kruger walked a few blocks over to a shopping center on Avenue U and was seen huddling outside a shuttered Mill Basin pharmacy for roughly 10 minutes until a black car arrived. Kruger got in and the car sped off.
Last year, Turano told The Post that she was Kruger’s long-time girlfriend.
When approached at the home around 11 p.m. on Wednesday, she claimed he was not there and didn’t know where he was.
Kruger has been under investigation since 2007 by Brooklyn federal prosecutors for allegations he performed official acts in exchange for campaign donations.
Longtime Assemblyman William Boyland Jr., of the 55th District in Brooklyn, was also charged. He turned himself in around 10 a.m.
“Everyone knows that Carl has been using his post to take money for years, so this isn’t surprising,” a source told The Post. “What’s more surprising is that it didn’t happen 10 years ago.”
Kruger has one of the Legislature’s largest campaign war chests: $2.6 million as of last July.
As a result of today’s scathimng accusations, Gov. Cuomo said the influence-peddling case shows an urgent need for a new law.
Cuomo said if the Legislature won’t agree, he will appoint a commission that will investigate all Albany lawmakers.
Assembly Speaker Sheldon Silver (D-Manhattan) said the accusations are deplorable and also called for ethics reform.
Additional reporting by Douglas Montero and Andy Campbell