WASHINGTON — The Supreme Court on Thursday narrowed the scope of a federal anticorruption law by ruling in favor of an ex-aide to former New York Gov. Andrew Cuomo who was convicted of taking a bribe from a real estate developer.
The court in a 9-0 vote threw out Joseph Percoco’s conviction for accepting the $35,000 payment when managing Cuomo’s re-election campaign in 2014.
The court ruled that his conduct was not covered by the federal law that requires that “honest services” be provided to the public. Percoco was not working for the government at the time, so he had no duty to provide honest services, the court said.
In a separate ruling in a related case, the court threw out a Buffalo real estate developer’s wire fraud conviction in another blow to federal prosecutors.
The court unanimously ruled for Louis Ciminelli, who the government alleged had sought to rig the bidding process for redevelopment contracts in the city.
In Percoco’s case, prosecutors said he was only temporarily working for Cuomo’s campaign when he took the payment from developer Steven Aiello, who was seeking state funds for a construction project. Percoco worked as a senior aide to Cuomo, a Democrat, from 2011 to 2016 except for eight months when he ran the campaign.
Percoco was convicted in 2018 on one count of honest services fraud for the real estate payment. At the same trial, he was also convicted of another count of honest services fraud and one count of soliciting a bribe for arranging for Competitive Power Venture, an energy company with business before the state, to make payments to his wife.
He was sentenced to six years in prison for all three offenses.
The Supreme Court did not address whether the two other convictions should also been thrown out, as Percoco’s lawyers had argued.
Percoco appealed to the high court after the the New York-based 2nd U.S. Circuit Court of Appeals upheld his convictions in a September 2021 ruling. In the same decision, the appeals court upheld the convictions of several others targeted in the wide-ranging New York investigation, including Ciminelli.
In the Ciminelli case, the court threw out a legal theory that the Justice Department had relied on in other cases. Under the “right to control” theory, someone commits fraud if he deprives another person of “potentially valuable economic information.”
The court agreed with Ciminelli’s lawyers and other critics of the theory that fraud can only be committed if there is a loss of money or property.
Several others targeted in the investigation, including Aiello, have their own appeals pending at the Supreme Court.
Cuomo, who resigned in 2021 after facing sexual harassment claims, was not charged.
The Supreme Court in recent years has already limited the scope of bribery laws, most notably in a 2010 ruling in favor of Jeff Skilling, the former CEO of Enron Corp. More recently, the court in 2016 threw out the corruption convictions of former Virginia Gov. Robert McDonnell, a Republican.
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