Smith, Malcolm Et Al. Complaint (Signed)

7/28/2019 Smith, Malcolm Et Al. Complaint (Signed)

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Approved: ~ ~ Douglas B. B l ~ m J A l v f ~ g g , J r .A s s i s t a n t United Sta t e s At torneys

Before : HONORABLE PAUL E. DAVISONUnited Sta t e s Magis t ra te JudgeSouthern D i s t r i c t o f New York

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UNITED STATES OF AMERICA- v. -

MALCOLM A. SMITH,DANIEL J . HALLORAN,VINCENT TABONE,JOSEPH J . SAVINO,NORAMIE JASMIN,JOSEPH DESMARET,

Defendants .

SOUTHERN DISTRICT OF NEW YORK, s s . :

X

SEALEDCOMPLAINT

Viola t ions of18 u.s.c. 371, 1341,1343, 1346, 1951, 1952and 2COUNTIES OF OFFENSE:ROCKLAND, NEW YORK andWESTCHESTER

THOMAS HOLMES, being duly sworn, deposes and says t h a t hei s a Sp ec ia l Agent with th e Federa l Bureau o f Inves t iga t ion("FBI") , and charges as fo l lows:

COUNT ONE

(Conspiracy to Bribe New York City P o l i t i c a l Par ty Off ic ia l s )1 . From in o r about November 2012, through on o r about

the da te of th e f i l i ng o f t h i s Complaint , in the SouthernD is t r i c t of New York and e lsewhere , MALCOLM A. SMITH, DANIEL J .HALLORAN, VINCENT TABONE, and JOSEPH J . SAVINO, th e defendan ts ,t oge the r with othe rs known and unknown, w i l l fu l l y and knowinglyd id combine, consp i re , confedera te and agree t oge the r and witheach o t h e r to commit offenses aga ins t th e United S ta t e s , to wit ,wire f raud and br ibe ry i n v io l a t i o n of Ti t l e 18, United Sta t e sCode, Sect ions 1343, 1346, and 1952.


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Objects o f the Conspiracy2. It was a p a r t and an objec t of the consp i racy t h a t

MALCOLM A. SMITH, DANIEL J . HALLORAN, VINCENT TABONE and JOSEPHJ . SAVINO, th e defendan ts , and others known and unknown,w i l l fu l l y and knowingly, having dev ised and in tend ing to devisea scheme and a r t i f i c e to defraud , and to depr ive th e New YorkCi ty Republican Par ty county committees and members of theRepublican Par ty o f th e honest se rv ice s o f l e ade rs o f suchcounty committees, fo r the purpose of execu t ing such scheme anda r t i f i c e , would and did t r ansmi t and cause to be t r ansmi t t ed bymeans o f wire , rad io , and t e l ev i s ion communication in i n t e r s t a t eand fo re ign commerce, wri t ings , s igns , s igna l s , p ic tu res , andsounds fo r the purpose o f execu t ing such scheme and a r t i f i c e .

3. It was fu r the r a p a r t and an objec t of the consp i racyt ha t MALCOLM A. SMITH, DANIEL J . HALLORAN, VINCENT TABONE andJOSEPH J . SAVINO, th e defendan ts , and others known and unknown,knowingly would and d id t rave l in i n t e r s t a t e and fo re igncommerce and use th e mai l and a f a c i l i t y in i n t e r s t a t e andfo re ign commerce, with i n t e n t to promote, manage, e s t a b l i sh ,ca r ry on, and f a c i l i t a t e the promotion, management,es tab l i shment , and car ry ing on, o f an unlawful a c t i v i t y , namelybr ibe ry in v io la t ion of New York Penal Law 200.45 and 200.50,and t he r e a f t e r would and d id perform and a t tempt to perform ana c t to p r o m o t ~ , manage, e s t a b l i sh , ca r ry on and f a c i l i t a t e thepromotion, management, es tab l i shment and carry ing on of theunlawful a c t i v i t y .

Means and Methods o f the Conspiracy4. Among th e means and methods used by MALCOLM A. SMITH,DANIEL J . HALLORAN, VINCENT TABONE and JOSEPH J . SAVINO, th e

defendan ts , to achieve th e unlawful objec ts of the consp i racywere th e fo l lowing:

a . MALCOLM A. SMITH, th e defendant , agreed wi th acooperat ing witness (the "CW") and an undercover FBI agentposing as a wealthy r e a l e s t a t e developer ( the "UC") tob r ibe l e ade rs of the Republican Par ty county committees inNew York City in order to obta in c e r t i f i c a t e s ofau thor i za t ion , commonly known as Wilson Pakula

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c e r t i f i c a t e s , 1 al lowing SMITH to run fo r New York Ci ty Mayoras a Republican even though he was a r eg i s t e r ed Democrat;b. DANIEL J . HALLORAN, th e defendan t , a r ranged fo r

th e CW and th e UC to meet SAVINO and TABONE, and negot ia tedth e amounts of the br ibes fo r th e Wilson Pakulac e r t i f i c a t e s , and, in exchange, s o l i c i t e d and rece ived fromth e CW and th e UC approximate ly $20,500 in cash fo rhimsel f ;

c . TABONE and SAVINO rece ived br ibes , inc lud ing at o t a l o f $40,000 in cash payments and a promise o f a t o t a lo f $40,000 more in cash payments, and TABONE and SAVINOeach promised t h a t , in re tu rn fo r those payments, throughth e use o f h is o f f i c i a l of f ice with a Republican Partycounty committee, he would obta in and a t tempt to obta in aWilson Pakula c e r t i f i c a t e , al lowing SMITH to run fo r NewYork Ci ty Mayor as a Republican even though he was areg i s t e red Democrat; and

d. In exch.ange fo r th e payment of the br ibes toSAVINO and TABONE, SMITH agreed to use h is o f f i c i a l off i ceas a New York Sta t e Sena tor to help obta in s t a t e funds fo ra road p r o j ec t in Spring Val ley , New York t ha t wouldb en e f i t a r e a l e s t a t e p r o j ec t t ha t SMITH unders tood wasbe ing b u i l t by th e UC's company in Spring Val ley ( the "RealEs ta t e Pro jec t" ) .

Overt Acts5. In fu r therance o f the consp i racy and to e f f e c t th e

i l l e g a l objec t s t he reof , MALCOLM A. SMITH, DANIEL J . HALLORAN,VINCENT TABONE, and JOSEPH J . SAVINO, the defendan ts , t oge the rwith othe rs known and unknown, committed th e fol lowing o v e r ta c t s , in the Southern D is t r i c t o f New York and elsewhere:

a. On or about November 16, 2012, MALCOLM A. SMITH,th e defendant , met th e CW and th e UC a t a h o t e l in WhitePla ins , New York. At th e conclusion o f t ha t meet ing , SMITHasked th e CW to co n t ac t a Republican Par ty county chairman

1 The c e r t i f i c a t e s ' name i s a re fe rence to th e Wilson Pakula Act of 1947, aNew York Sta te la w tha t wa s sponsored by then-S ta te Senato r I rwin Pakula andthen-Assemblyman Malcolm Wilson. As descr ibed in paragraph 18 below, theWilson Pakula Act r equ i res a cand ida te who seeks to run fo r a New York Ci ty wide of f i ce as a member of a par ty to which th e candida te does n ot belong toob ta in au thor iza t ion by a major i ty vote o f those presen t a t a j o i n t meetingof the execut ive committees o f each of the New York City county committees o fthe p a r t y on whose b a l lo t l i n e th e cand ida te seeks to run.

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("County Chairman #1") to t r y to "change him" by convincingCounty Chairman #1 to suppor t SMITH r a th e r than ano thercandidate fo r New York Ci ty Mayor whom County Chairman #1had publ i c ly suppor ted .

b. Later t h a t day, DANIEL J . HALLORAN, th edefendan t , met th e UC a t a r es tau ran t in Queens, New York,in order to rece ive a br ibe in exchange fo r t ak ingunre l a t ed o f f i c i a l ac t ion . During th e meet ing , th e UCasked HALLORAN if he knew County Chairman #1 and HALLORANsa id t ha t he knew both County Chairman #1, and JOSEPH J .SAVINO, th e defendan t . HALLORAN agreed to ask CountyChairman #1 and SAVINO what they would want in exchange fo rt h e i r suppor t fo r a mayoral candidate .

c . Later t h a t day, the UC met SMITH a t a hote l i nManhattan, and t o ld SMITH t h a t th e UC could arrange ameet ing with County Chairman #1 and SAVINO during which th eUC would at tempt to nego t i a t e t he i r suppor t fo r SMITH, andSMITH t o ld th e UC "You p u l l t h i s of f , you can have th ehouse. I'll be a t enan t . "

d. On or about January 25, 2013, SMITH met th e CW inSMITH's ca r in Rockland County, New York. During th emeet ing , th e CW t o ld SMITH t h a t ge t t ing Wilson Pakulac e r t i f i c a t e s fo r SMITH from th e Republican county committeel e ade rs would cos t "a pre t ty penny" and SMITH, in responseto the ques t ion "It's worth any pr i ce?" r ep l ied : "Look,t a l k to me b ~ f o r e you c lose it. But it's worth it. Becauseyou know how b ig a dea l it i s . "

e . On or about February 8, 2013, HALLORAN met th e CWand th e UC a t a h o t e l in Manhattan and t o ld th e CW and theUC, in p a r t and in subs tance , t h a t , in exchange fo r s igningWilson Pakula c e r t i f i c a t e s , SAVINO wanted $25,000 " in anenvelope ," and TABONE wanted $50,000 with ha l f of the moneybefore he s igned th e Wilson Pakula c e r t i f i c a t e and theothe r h a l f a f t e r .

f . On or about February 10, 2013, SMITH met th e CWand the UC in a h o t e l room in Manhattan. During th emeet ing, the UC exp la ined , in subs tance , t ha t a WilsonPakula c e r t i f i c a t e from each of the Republican countycommittee l eaders would cos t a s i g n i f i c a n t amount o f moneypaid to the l eaders of those commit tees , and t h a t th epayments would be s t ruc tu red so t h a t h a l f of th e moneywould be paid immediately and ha l f a f t e r th e Wilson Pakula

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c e r t i f i c a t e was s igned . SMITH sugges ted, in subs tance ,s t r u c tu r in g th e payments as r e t a i n e r payments fo r l eg a l andaccount ing se rv ice s and not paying the leaders more than$10,000 i n i t i a l l y . SMITH a lso agreed to use h is o f f i c i a lpos i t ion to help obta in New York Sta te funds fo r th e RealEsta te Pro jec t .

g. On o r about February 14, 2013, SAVINO met th e CWand th e UC a t a r e s t au r an t in Manhattan and, s h o r t l yt h e re a f t e r , accep ted from th e UC $15,000 in cash in th eUC's car .

h. On or about February 14, 2013, TABONE met th e CWand th e UC a t a r es tau ran t in Manhattan and, shor t lyt h e re a f t e r , accep ted from the UC $25,000 in cash in th eUC's car .

i . On or about February 17, 2013, SMITH and th e UChad a te lephone conversat ion whi le th e UC was in NorthCaro l ina . During th e conversat ion , SMITH and th e UCdiscussed a fu ture meet ing between th e UC and th e New YorkSta t e Senator who rep re sen t s th e Spring Val ley , New Yorkarea ( the "Spring Val ley Senator") concerning th e s t a t efunding fo r th e Real Es ta t e P ro jec t .

j . On or about March 21, 2013, SMITH, th e UC and th eCW met in SMITH's Sta te Senate off i ce in Albany, New York.During th e meet ing , SMITH discussed with th e UC and th e CWth e payments they had made on h is beha l f and whether thecommittee l e ade rs were delay ing p rov id ing Wilson Pakulac e r t i f i c a t e s because they were looking to be paid more.SMITH i n s t r u c t ed th e UC and th e CW no t to pay th e committeel eaders any more money u n t i l th e UC and CW "c lose[d] the .

. d ea l . " SMITH a l so sa id t h a t , before a committee l eaderrece ived "even a nicke l more, [he 'd] have t o s tand on th eEmpire Sta te Bui ld ing and drop every person [he] endorsedand hold Malcolm up and say he ' s th e bes t th ing s inces l i ced bread . Mat te r .o f fac t , he ' s be t t e r than s l i cedbread."

k. On seve ra l occas ions throughout th e re l evan t t imeper iod , SMITH and HALLORAN placed telephone c a l l s and sen tt e x t messages to th e UC while th e UC was in North Caro l ina .

(T i t l e 18, Uni ted Sta t e s Code, Sect ion 371.)

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COUNT TWO

(Wire Fraud - New York Ci ty P o l i t i c a l Par ty Off ic ia l s )6. From in or about November 2012 through on or about th e

date o f th e f i l i ng of t h i s Complaint , in th e Southern D is t r i c to f New York and elsewhere , MALCOLM A. SMITH, DANIEL J . HALLORAN,VINCENT TABONE and JOSEPH J . SAVINO, th e defendan ts , t oge the rwith others known and unknown, w i l l fu l l y and knowingly, havingdev ised and in tend ing to dev ise a scheme and a r t i f i c e todefraud , and to depr ive th e New York City Republican Par tycounty committees and members o f the Republican Par ty of th ehonest se rv ice s o f l eaders of such county commit tees , fo r thepurpose o f execu. t ing such scheme and a r t i f i c e , t r ansmi t t ed andcaused to be t r ansmi t t ed by means of wire , radio , and t e l ev i s ioncommunication in i n t e r s t a t e and fo re ign commerce, wri t ings ,s igns , s igna l s , p ic tu res , and sounds , to wit , te lephone c a l l sand t e x t messages.

(T i t l e 18, United Sta t e s Code, Sect ions 1343, 1346 and 2 .)COUNT THREE

(Hobbs Act Extor t ion - New York Sta te Transpor ta t ion Money)7. From in or about November 2012 through on o r about th e

da te o f th e f i l i ng of t h i s Complaint , in th e Southern D is t r i c to f New York and elsewhere , MALCOLM A. SMITH, th e defendan t ,knowingly obst ruc ted , delayed, and af fec ted commerce and th e-movement of an a r t i c l e and commodity in commerce, by ex to r t ion ,as t h a t term i s defined in Ti t l e 18, United Sta tes Code, Sect ion1951(b) (2) , and at tempted so to do, to wit , the UC and th e CWpaid br ibes on SMITH's beha l f to obta in fo r SMITH au thor i za t ionto run fo r New York Ci ty Mayor as a Republican in re tu rn fo rSMITH using h is o f f i c i a l pos i t ion to help the UC and CW obta in ,among othe r th ings , New York Sta t e funds t ha t would b en e f i t th eReal Es ta t e P ro jec t .

(T i t l e 18, United Sta tes Code, Sect ions 1951(a) and 2 .)COUNT FOUR

(Wire Fraud - New York City Council)8. From in or about August 2012 through on o r about th e

da te o f the f i l i ng of t h i s Complaint , in th e Southern D is t r i c to f New York and elsewhere , DANIEL J . HALLORAN, th e defendan t ,

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t oge the r with othe rs known and unknown, w i l l fu l l y and knowingly,having dev ised and in tend ing to dev ise a scheme and a r t i f i c e todefraud, and fo r ob ta in ing money and proper ty by means o f f a l s eand f raudu len t pre t enses , r ep re sen ta t ions and promise$, and todepr ive th e c i t i z e n s o f New York Ci ty and th e New York CityCounci l o f th e hones t se rvices o f HALLORAN, a member of th e NewYork City Counci l , fo r the purpose o f execu t ing such scheme anda r t i f i c e and a t tempt ing so to do, t r ansmi t t ed and caused to bet r ansmi t t ed by means o f wire , rad io , and t e l ev i s ioncommunicat ion in i n t e r s t a t e and fo re ign commerce, wri t ings ,s igns , s igna l s , p i c tu r e s , and sounds , to wit , fo r the purpose o fexecu t ing a scheme to obta in money fo r h imse l f in exchange fo rth e award o f New York Ci ty Counci l d isc re t ionary funds, HALLORANemai led two l e t t e r s , dated in October 2012 and November 2012re spec t ive ly , the l a t t e r o f which asked fo r the ass i s t ance andconsu l t a t ion o f a company purpor ted ly con t ro l l ed by th e UC, andpromised to a l l o ca t e , in order to pay th e company, New York Ci tyCounci l discret io .nary funding up to $40,000 to $80,000 duringf i s c a l year 2013-2014.

(T i t l e 18, Uni ted Sta t e s Code, Sect ions 1343, 1346 and 2 .)COUNT FIVE

(Mail Fraud - Spr ing Val ley Real Esta te Pro j ec t - Jasmin)9. From in o r about August 2011, through on o r about th e

da te o f the f i l i ng o f t h i s Complaint , in th e Southern D is t r i c to f New York and e l sewhere , NORAMIE JASMIN, t h ~ defendant ,w i l l fu l l y and knowingly, having dev ised and in tend ing to dev isea scheme and a r t i f i c e to defraud, and fo r ob ta in ing money andproper ty by means o f f a l se and f raudu len t pre t enses ,rep re sen ta t ions and promises , and to depr ive the Vi l l age ofSpr ing Valley, New York ( the "Vi l lage" ) and its c i t i z e n s o f th ehones t se rv ice s of JASMIN, the Mayor o f the Vi l l age and a memberof the V i l l ag e ' s Board of Trus tees , fo r the purpose of execu t ingsuch scheme and a r t i f i c e and a t tempt ing so to do, placed in ap o s t off i ce and au thor ized depos i to ry fo r mai l mat te r , a mat te rand th ing to be s en t and de l ivered by the Pos ta l Serv ice , anddeposi ted and caused to be deposi ted a mat te r and th ing to bes en t and de l ivered by pr iva te and commercial i n t e r s t a t e c a r r i e r ,and took and rece ived t he re f rom, such mat te r and t h ing , andcaused to be de l ive red by mai l and such c a r r i e r accord ing to th ed i r ec t i o n thereon , and a t the p lace a t which it was d i rec ted tobe de l ive red by th e person to whom it was addressed, such mat te rand t h ing , to wit , fo r the purpose o f execu t ing a scheme inwhich JASMIN voted in favor o f th e sa le of Vi l l age land to a

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company purpor ted ly cons t ruc t ing the Real Es ta t e P ro jec t inexchange fo r an undisc losed ownership i n t e r e s t in such companyand fu r the r agreed to s t e e r New York Sta t e funds to suchcompany, JASMIN caused a con t rac t fo r th e sa le of such Vil lagel and to be mailed .

(Ti t le 18, United Sta t e s Code, Sect ions 1343 and 1346. )COUNT SIX

(Mail Fraud - Spring Valley Real Es ta t e P ro jec t - Desmaret)10. From in or about August 2011, through on o r about th e

date of th e f i l i ng of t h i s Complaint , in th e Southern D is t r i c to f New York and elsewhere , JOSEPH DESMARET, th e defendant ,w i l l fu l l y and knowingly, having devised and in tend ing to devisea scheme and a r t i f i c e to defraud , and fo r ob ta in ing money andproper ty by means of f a l se and f raudu len t pre t enses ,rep re sen ta t ions and promises , and to depr ive th e Vil lage o fSpring Val ley , New York and i t s c i t i z e n s o f th e hones t se rv ice so f DESMARET, th e Deputy Mayor of the Vi l l age and a member o f th eVi l l age ' s Board of Trus tees , fo r th e purpose o f execu t ing suchscheme and a r t i f i c e and at tempt ing so to do, placed in a pos to f f i c e and au thor ized depos i to ry fo r mail mat t e r , a mat te r andt h ing to be sen t and de l ive red by the Pos ta l Serv ice , anddeposi ted and caused to be depos i t ed a mat te r and t h ing to besen t and de l ivered by pr iva te and commercial i n t e r s t a t e c a r r i e r ,and took and received theref rom, such mat te r and t h ing , andcaused to be de l ivered by mai l and such c a r r i e r according to th ed i r ec t i o n thereon, and a t the p lace a t which it was d i rec ted tobe de l ive red by the person to whom it was addressed, such mat t e rand t h ing , to wit , fo r th e purpose o f execu t ing a scheme inwhich DESMARET received cash payments in exchange fo r h is votein favor of the sa le of Vi l l age land to a company purpor ted lycons t ruc t ing th e Real Es ta t e P ro jec t and f u r th e r agreed to s t e e rNew York Sta t e funds to such, DESMARET caused a con t rac t fo r th esa le of such Vil lage land to be mailed .

(Ti t le 18, United Sta t e s Code, Sect ions 1341 and 1346.)The bases fo r my knowledge and fo r the foregoing charges

a re , in p a r t , as fo l lows:11. I am a Specia l Agent with the FBI, and I have beeninvolved in the inves t iga t ion o f th e above-described of fenses .

During the course of my ca ree r with the FBI, I have beeninvolved in numerous publ ic cor rup t ion and undercover8


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inves t iga t ions , which involved th e use of var ious i n v es t i g a t i v etechniques , including the use o f consensual record ings , cover tsu rve i l l ance , and examinat ion o f f i n an c i a l and te lephonerecords . I am fami l i a r with th e f ac t s and circumstances se tfor th below from my persona l p a r t i c i p a t i o n i n th e i n v es t i g a t i o n ,including my review of p e r t i n en t documents, and from myconversat ions with fe l low law enforcement of f i c e r s .

12. Since in o r about 2011, I and othe r law enforcemento f f i c i a l s have been conduct ing an inves t iga t ion in to publ i ccor rup t ion a t th e l o ca l , c i ty , and s t a t e l ev e l s within New York.

13. One method employed during t h i s inves t iga t ion has beenth e use of th e CW. On March 11, 2013, th e CW pled gu i l ty , i nth e United Sta t e s D is t r i c t Court fo r the Southern D is t r i c t ofNew York, pursuan t to a coopera t ion agreement with th eGovernment, and has , both before and s ince , been providingin fo rmat ion and coopera t ing with law enforcement in th e hope o fob ta in ing a more l en i en t sen tence . During the course of theCW's cooperat ion , the CW has provided in fo rmat ion to th eGovernment that l i 6 ' ' s ' ~ ' B ' e e i 1 cor robora ted by . o t h ~ , r : - . :sources .. ....- :. - .

14. Because t h i s a f f ida v i t i s being submit ted fo r th e~ i m i t e d purpose of es tab l i sh ing probable cause , it does notinclude a l l th e f ac t s t ha t I have l ea rned during th e course o fmy i n v es t i g a t i o n . Where the con ten t s o f documents and th eac t ions , s ta tements , and conversat ions of others a re repor tedhere in , they are repor ted in subs tance and in p a r t , except whereotherwise i nd ica t ed .

15. Unless otherwise i nd ica t ed , t he conversat ionsdescr ibed below were recorded under th e superv i s ion of FBIagents and moni tored by FBI agen t s , and I have reviewed thoserecord ings .

BackgroundThe Defendants

16. MALCOLM A. SMITH, th e defendant , i s a Democraticmember of the New York Sta t e Senate (the "NYS Senate") andChairman of the Independent Democrat ic Conference . SMITHrepresents a d i s t r i c t in Queens County, New York. F i r s t e lec tedto th e NYS Senate in 2000, SMITH has remained a member o f theNYS Senate s ince then , having been e lec ted to seven success ivetwo-year t e rms . During h is t enure with th e NYS Senate , Smithhas been, a t var ious t imes, minor i ty l e ade r , major i ty l e ade r ,

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Pres id en t Pro Tempore, and a c t i n g Lieu tenan t Governor underformer Governor David A. Pa t te r son . As a Sta t e Senato r , SMITH'so f f i c i a l du t i e s have j n c lu d ed , among o t h e r t h i n g s , v o t in g onl e g i s l a t i o n , r epre sen t ing and advocat ing fo r the i n t e r e s t s o fc o n s t i t u e n t s , and rev iewing and ac t ing upon r eques t s from publ icand p r i v a t e a p p l i c a n t s seek ing suppor t and s t a t e funding fo rdevelopment p r o j ec t s with in New York S t a t e .

17 . MALCOLM A. SMITH, th e defendan t , serves on th e NYSSena te ' s Standing Committee on Transpor ta t ion ( the"Transpor ta t ion Committee") and i s th e Vice Chairman o f th e NYSSena te ' s Finance Committee.

18. MALCOLM A. SMITH, th e defendan t , has pub l i c lydiscussed th e p o s s i b i l i t y o f runn ing fo r Mayor o f New York Cityt h i s year on th e Republ ican t i c k e t . Because he i s a r eg i s t e r edDemocrat, pursuan t to New York Elec t ion Law. 6-120(3) , SMITHcannot run fo r New York Ci ty Mayor as a Republ ican ab sen t th ewri t t en consen t of th ree o f the c i t y ' s f ive Republ ican Par tycounty cha i rmen. That consen t i s commonly r e fe r red to as a"Wilson Pakula c e r t i f i c a t e . "

19. On o r abou t November 3, 2009, DANIEL J . HALLORAN, th edefendan t , was e lec t ed to th e New York Ci ty Counci l as a Counci lMember r epre sen t ing th e 19th Counc i l D i s t r i c t in Queens, New .York. As a member o f th e City Counci l , HALLORAN's o f f i c i a ldu t i e s have inc luded vo t ing on l e g i s l a t i o n , r epre sen t ing andadvocat ing for the i n t e r e s t s of c o n s t i t u e n t s , and a l l o ca t i n g NewYork City d i s c r e t i o n a ry funds . In 2012, HALLORAN ran fo rCongress in New York 's 6th Congress iona l D i s t r i c t . P r i o r toj o i n i n g t h e City Counci l , HALLORAN se rved as an o f f i c e r with th eNew York City Po l ice Depar tment .

20. VINCENT TABONE and JOSEPH J . SAVINO, th e defendan ts ,a re Republ ican Par ty o f f i c i a l s in New York Ci ty . SAVINO i s th eChairman o f th e Bronx County Republ ican Par ty and TABONE i s th eVice Chairman of the Queens County Republ ican Par ty . AsChairman and Vice Chairman, t h e i r o f f i c i a l du t i e s i n c lu d e , amongo t h e r t h ings , endors ing cand ida tes fo r pub l i c o f f i c e , inc lud ingNew York Ci ty Mayor, and vot ing on Wilson Pakula c e r t i f i c a t e s .

21. On o r abou t December 7, 2009, NORAMIE JASMIN, th edefendan t , was sworn in as Mayor o f t h e Vi l l ag e o f SpringVal l ey , New York and JOSEPH DESMARET, th e defendan t , was swornin as Deputy Mayor o f the Vi l l age . As Mayor and Deputy Mayor,JASMIN's and DESMARET's o f f i c i a l du t i e s inc lude r epre sen t ing andadvoca t ing for the i n t e r e s t s o f Vil lage r e s i d e n t s , and v o t in g ,

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as members of the Vi l l age Board of Trus tees , on mat t e r s t ha ta f f e c t the Vil lage , inc lud ing the sa le of publ ic l ands . Inadd i t ion , as Mayor, JASMIN's o f f i c i a l dut i e s include nego t i a t ingcon t rac t s between the Vi l l age and pr iva te developers .

The Governmental En t i t i e s22. The New York Sta te l e g i s l a tu r e i s comprised of anupper house , the Sta t e Senate , and a lower house, th e Assembly.

The Sta t e Senate i s cur ren t ly comprised of 63 members e lec tedfo r two-year te rms.

23. The N e ~ ~ o r k City Counci l ( the "Ci ty Counci l") i s thel e g i s l a tu r e fo r the Ci ty of New York. New York City i s dividedin to f i f ty -one separa te Counci l D is t r i c t s and th e City Counci li s comprised of f i f ty -one e lec ted members, each of whom holdsthe title Counci l Member. Members of th e Ci ty Counci l have th eau thor i ty to approve d isc re t ionary funding fo r community-basedno t - fo r -p ro f i t , publ ic se rv ice organ iza t ions t h a t b en e f i t NewYork Ci ty r es iden ts .

24. The government of the Vi l l age of Spr ing V a l l e y - amunic ipa l i ty of approximate ly 30,000 r es iden ts in RocklandCounty, New York - i s con t ro l l ed by a Mayor, Deputy Mayor, and aBoard of Trus tees cons i s t ing o f f ive members, tw o o f whom areth e Mayor and Deputy Mayor.

25. As desc i ibed fu r the r below, the inves t iga t ion hasrevea led : (a ) t h a t MALCOLM A. SMITH, th e defendant , has engagedin br ibe ry and a conspiracy to commit br ibe ry in an e f f o r t toappear on th e Republican b a l l o t fo r New York City Mayor in 2013,and used h is o f f i c i a l off i ce as Sta te Sena tor to a s s i s t thei nd iv idua l s who provided the money fo r those br ibes ; (b) DANIELJ . HALLORAN, th e defendant , has accep ted br ibes in exchange fo rth e use of h is o f f i c i a l off i ce as New York City Counci l Memberto a l loca te City funds and, in exchange fo r cash paymentst o t a l i n g t ens of thousands of do l l a rs , has a s s i s t e d SMITHbr ib ing o the rs in an e f fo r t to appear on the Republican b a l l o tfo r New York City Mayor; (c ) VINCENT TABONE and JOSEPH J .SAVINO, the defendants , accepted cash br ibes t o t a l i ng $40,000 inexchange fo r t he i r agreement to use t h e i r o f f i c e s as Chairmanand Vice Chairman o f Republican Par ty county committees toapprove SMITH as a Republican candidate fo r New York Ci ty Mayor;and (d) NORAMIE JASMIN and JOSEPH DESMARET, the defendan ts ,accep ted money and proper ty in exchange fo r using t h e i r o f f i c i a lpos i t ions as Mayor and Deputy Mayor, and members o f th e Board o fTrus tees o f Spr ing Val ley , New York, to approve a r e a l e s t a t e

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t r ansac t ion in which JASMIN had an undisc losed f i n an c i a li n t e r e s t .

The Spring Val ley Real Estate Project Conspiracy

26. On or about August 5, 2011, NORAMIE JASMIN, th edefendan t , met with the CW a t a r es tau ran t in Rockland County.During th e meet ing , JASMIN and th e CW discussed a pa rce l o fproper ty in th e Vil lage t ha t JASMIN had prev ious ly t o ld the CWshe in tended to acqu i re fo r the V i l lage through eminent domain.S p ec i f i c a l l y , JASMIN t o ld th e CW t h a t she was going to obta inthe proper ty fo r th e Vil lage and then take b ids from p r iv a t edeve lopers to acquire and develop the p roper ty . JASMIN t o ld th eCW: "The one t h a t I l i ke I 'm going to pick . So, if I l i keyours , I pick you.... I f I d o n ' t l i ke it you can s t i c k [ i t ]where th e sun doesn ' t sh ine . "

27. On or about January 18, 2012, JOSEPH DESMARET, th edefendant , met th e CW in th e CW's ca r in Rockland County, NewYork. During th e meet ing , the CW to ld DESMARET: "I 'm gonna havec e r t a i n t h ings coming to the Board t h a t I need . . . you to votewith me.... It's gonna be a ... bui ld ing p r o j ec t and itmight be a little b i t con t rover s ia l .... How much w i l l it takeme t o ge t it done?" DE,SMARET responded: " I know th e p r o j ec t andI love th e p r o j ec t and, uh, you want to do it as a par tne r o ryou want to do it by yourse l f?" The CW t o ld DESMARET t ha t th eCW wanted to do th e p r o j ec t by himself . Later in th econversat ion DESMARET asked the CW "What i s th e chance t h a t whatwe say here , what we t a lk here s tay here?" DESMARET l a t e r sa idto th e CW: "Make an o f f e r . " The CW sugges ted $10,000, andDESMARET then asked fo r $20,000.

28. On or about February 3, 2012, NORAMIE JASMIN, th edefendant , met the CW a t th e h o t e l in Suffern , New York. Duringthe meet ing , JASMIN and the CW discussed JASMIN us ing herau thor i ty as Mayor to s e l l a second pa rce l of Vi l l age land toth e CW to develop in to a community cen te r , a p r o j ec t r e f e r r ed toin paragraph 4.d) above as th e Real Esta te Pro jec t . In exchangefo r her ass i s tance , JASMIN t o ld th e CW t h a t she wanted to be a"pa r tne r , to bui ld it t o g e th e r . " Later in th e conversat ion , theCW asked JASMIN "[W]hat i s , l i k e , what ' s our th ing?" and JASMINr ep l ied " [L]e t ' s say th e p r o j ec t i s gonna take l i ke a year tobui ld , ins t ead of wai t ing , l i k e , I can schedule fo r you .th e zoning th ing , for every th ing to go smoothly fo r you. That ' st ha t . "

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29. On o r about February 14, 2012, NORAMIE JASMIN, th edefendan t , ~ e t th e CW a t th e hote l i n Su f fe rn , New York. Duringth e meet ing , JASMIN and th e CW discussed the t erms o f t h e i rpa r tne rsh ip in the Real Es ta t e P ro jec t . When th e CW suggestedt h a t he p e r s o n a l l y purchase a piece o f re l a t ed proper ty , JASMINs t a t ed : "So fo r me, it 's be t t e r fo r us to pa r tne r , t h a t ' s what Isa id to you before ; a pa r tne rsh ip w i l l be b es t . . . [W]e canhave th e pa r tne rsh ip going, b u t if you buy t h a t , then it w i l l bet o t a l l y pr iva te fo r you to t ake every th ing and then you do.whatever you want and next th ing I know, my name w i l l not bethe re , it w i l l be [ the CW] . "

30. On o r abou t February 28, 2012, JOSEPH DESMARET, th edefendan t , met th e CW in th e CW's ca r in Suffern , New York.During th e meet ing , th e CW paid DESMARET $1,000 in cash pursuan tto a p r i o r co r ru p t agreement 2 and $5,000 in cash as p a r t i a lpayment o f th e br ibe descr ibed in paragraph 27 above. The CWsa id to DESMARET: " I got t a make sure t h a t nobody e l se t h a t , youknow, s tand up, somebody e l se might want to jump on it ... tomaybe give you ano ther of f e r . " DESMARET responded: "No, theywon' t g e t th e vote .... It's a done d ea l . "

31. On o r about March 20, 2012, NORAMIE JASMIN, th edefendant , met th e CW a t th e hote l i n Su f fe rn , New York. Duringth e meet ing , JASMIN and th e CW discussed the f i n an c i a l s taket h a t each o f them would have in th e Real Esta te Pro jec t . The CWsugges ted t h a t JASMIN rece ive a 20% s take in th e p r o j ec t , andJASMIN r ep l ied "Pa r t n e r s h i p i s f i f t y f i f t y , r igh t?" JASMIN andth e CW a l so discussed forming a se r i e s o f companies withownership i n t e r e s t s in a s ing le company (the "Holding Company")to hide th e i d e n t i t i e s o f the t rue owners of th e Real Es ta t ePro jec t . JASMIN s t a t e d : "[an] LLC under my name i s not goodunder t h a t . " Ins tead , she sugges ted using th e i d e n t i t y o f ar e l a t i ve ( the "Rela t ive") with whom she does not "have th e same. l a s t name . . But, uh, be c a re fu l . " The CW t o ld JASMINt h a t forming the company t h a t would hold her i n t e r e s t would cos t$600 and JASMIN of fe red to pay fo r th e incorpora t ion . At th eend of th e meet ing , JASMIN t o ld th e CW t h a t she would give him acel lphone t h a t she sa id was "so le ly" fo r th e CW to use tocommunicate with h er about th e Real Es ta t e Pro jec t . On o r aboutJune 21, 2012, JASMIN met the CW in Manhattan and handed him ace l lphone .

32. During th e March 20, 2012 meet ing , NORAMIE JASMIN, th edefendan t , a lso discussed with th e CW th e manner in which th e2 Th e agreement t h a t gave r i se to the $1,000 payment i s unre la ted to th echarges here in .

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Real Es ta t e P ro jec t would be presen ted to the Vil lage Board o fTrus tees . JASMIN t o ld the CW:

I need something t h a t w i l l no t a t tach you to any th ing .Le t ' s say okay and they say yes , we can do it, and Iw i l l p u t something out t he re . . and then , uh, maybetwo, th ree deve lopers w i l l come in . I w i l l pick you,you unders tand? . So, so I w i l l t e l l you ahead oft ime t h i s i s how you have to pre sen t it, t h i s i s h o ~ ,what we have to do. Again, so we can move forward.Are you comfortable with tha t?33. On or about March 23, 2012, NORAMIE JASMIN, th edefendant , met th e CW in the parking lo t of the Spring Val ley

Vil lage Hal l in Spring Val ley , New York. JASMIN handed th e CWan envelope con ta in ing the name and Socia l Secur i ty number o fth e Rela t ive and $600 in cash .

34. In accordance with th e plan agreed upon by NORAMIEJASMIN, th e defendant , and th e CW, on o r about July 23, 2012, anapp l ica t ion to incorpora te the Holding Company was sen t to th eDelaware Department of Sta te . On or about July 24, 2012, th eHolding Company was incorpora ted in the Sta te o f Delaware. On orabout August 15, 2012, the Holding Company was r eg i s t e r ed as anac t ive business with th e New York Department of S ta t e .

35. On or about October 21, 2012, JASMIN, th e CW and th eUC met a t th e h o t e l in White Pla ins , New York, and on or aboutOctober 22, 2012, JASMIN, th e CW and th e UC met a t the h o t e l inSuffern , New York. Two othe r undercover FBI agen ts posing, asassoc ia tes of the UC a t t ended por t ions of th e meet ings . Duringth e meet ings , JASMIN, the UC, th e CW and th e add i t iona lundercover agen ts agreed t ha t those two undercover agen ts wouldappear before the Vi l l age Board of Trus tees posing as developersunre l a t ed to th e UC ( the "Straw Developers") . During th emeet ings , JASMIN coached th e UC and th e Straw Developers on howto make t h e i r pre sen ta t ions to th e Vi l l age Board of Trus tees .JASMIN t o ld the UC t ha t it was impor tan t t ha t the UC and th eStraw Developers appear as if they were "sepa ra t e e n t i t i e scoming to ... b id on t h a t t h in g . " She a lso i n s t ruc ted the UCt h a t when descr ib ing how he became i n t e res t ed in th e Real Esta tePro jec t he should say he saw an adver t i sement in a newspaper.When asked if th e UC should behave a t the meet ing as if he hadnever met JASMIN, JASMIN r ep l ied "Oh, I can assure you, I d o n ' tknow you a t a l l . " Fina l ly , she t o ld th e UC t h a t she mailed acopy of the proposed con t rac t between the Vi l l age and the

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Holding Company fo r th e Real Es ta t e P ro jec t , and th e UC shouldt ake t ha t copy to th e Board meet ing .

36. On or about October 23, 2012, NORAMIE JASMIN andJOSEPH DESMARET, th e defendan ts , a t t ended a meeting o f th eVi l l age Board of Trus tees . During th e meet ing , th e UC and th eStraw Developers presen ted p lans fo r th e Real Es ta t e P ro jec t .According to th e minutes of t ha t meet ing , JASMIN then t o ld th eBoard o f Trus tees t ha t she and t he o the r members of the Board o fTrus tees had j u s t " ca r e f u l l y in te rv iewed" th e p o t e n t i a ldeve lopers and t ha t she sought t h e i r approva l to nego t i a t e acon t rac t with the Holding Company, which she descr ibed as "arepu tab le company who i s wil l ing to work with the Vi l l age o fSpring Valley .... JASMIN a lso t o ld a fe l low Board membert h a t she "cannot s i t behind c losed doors with a deve loper tonego t i a t e on beha l f o f the Board. . . . The Board o f Trus teeshas to be aware of [ s i c ] a l l th e t ime , so the re fo re , I am notgoing to do t h a t . " At no poin t during th e meet ing did JASMINdi sc lose h er p r i o r r e la t ionsh ip with th e CW, th e UC and th eStraw Developers or her i n t e r e s t in th e Holding Company. BothJASMIN and DESMARET voted in favor of JASMIN's proposa l tonego t i a t e a development con t rac t with th e Holding Company.

37. On or about November 28, 2012, the Vi l l age Attorneymai led a proposed con t rac t fo r t he sa le of the Vil lage proper tyon which th e Real Es ta t e P ro jec t would be b u i l t to th e HoldingCompany.

38. On or about February 25, 2013, NORAMIE JASMIN, th edefendant , met with th e CW a t a h o t e l in Suffern , New York.During th e meeting JASMIN agreed to s t e e r to th e Holding Companythe New York Sta te funding t ha t MALCOLM A. SMITH had agreed tohelp th e UC and CW obta in as descr ibed in paragraph 63, below.

39. On or about March 6, 2013, JOSEPH DESMARET, thedefendant , met with the UC and th e CW a t a hote l in Suffern , NewYork. During th e meeting DESMARET agreed to s t e e r to theHolding Company th e New York Sta t e funding t h a t MALCOLM A. SMITHhad agreed to help th e UC and CW obta in as descr ibed inparagraph 63, below. In exchange, th e UC paid DESMARET $500.

40. On or about the fol lowing da tes , JOSEPH DESMARET, th edefendan t , met th e CW a t th e fol lowing l oca t ions and rece ivedthe fol lowing cash payments dur ing recorded conversa t ions :

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Date Amount Locat ion . . :.February 28, 2012 $5,000 Suffern , New YorkApr i l 27, 2012 $1,000 Suffern , New YorkAugust 9, 2012 $1,600 Suffern , New YorkOctober 23, 2012 $500 White Plains , New YorkDecember 12, 2012 $1,000 Suffern , New YorkJanuary 22, 2013 $900 Suffern , New YorkMarch 6, 2013 $500 Suffern , New York

The New York City Council Consult ing Contract Bribe Scheme41. On or about September 7, 2012, DANIEL J . HALLORAN, th edefendant , met the CW a t a r es tau ran t in Manhattan. During themeet ing, Halloran explained to the CW t ha t he was seekingmatching funds fo r h is congress ional campaign from th eRepublican Party . The CW s ta ted uBut the one th ing i s , you ' re

running on cash . " HALLORAN responded nYeah, cash i s thebig th ing r i gh t now, ra i s ing money." The CW offered to giveHALLORAN money fo r h is campaign. The CW also reques ted t h a tHALLORAN agree to h i re someone of the CW's choosing fo r a paidcongress iona l s t a f f pos i t ion or some equiva lent pos i t ion . The CWmentioned the poss i b i l i t y of ge t t ing someone a pos i t ion re la tedto spec ia l educat ion and HALLORAN responded: nYou know, I s i t onthe mental hea l th committee with the Counci l . . . . You know, Ifund QSAC which i s an aut ism program in , in my d i s t r i c t . Thoseare th ings t ha t we can de f in i t e ly , those are p laces we couldwork." The CW s ta ted n i have your word y o u ' l l help me inwhatever it i s ?" HALLORAN responded: ' 'Absolutely , whatever youneed ." Th e CW l a t e r asked HALLORAN if he could ge t for the CWd i sc re t ionary funding from the City Counci l budget and HALLORANresponded: nYeah." After l i s t i n g various pro jec t s t ha t he fundsthrough City Counci l d isc re t ionary funding, HALLORAN s t a t ed nsonow you come in and t e l l me what we got to do. Not an i s sue , notan i s su e . " Later in the conversat ion , HALLORAN sa id :

That ' s p o l i t i c s , t h a t ' s po l i t i c s , it's a l l about howmuch. Not about whether or w i l l , it's about how much,and t h a t ' s our po l i t i c i a ns in New York, they ' re a l ll ike tha t , a l l l ike tha t . And they g e t l i ke t ha tbecause of th e dr ive t ha t the money does fo reverything e l s e . You can ' t do anything without thefucking money."

During the meet ing, the CW paid HALLORAN $7,500 in cash.Near th e end of the conversat ion , HALLORAN remarked "Moneyi s what greases the wheels - good, bad, or i nd i f f e r e n t . "

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42. On o r about September 27, 2012, DANIEL J . HALLORAN,th e defendant , met th e CW and th e UC a t a h o t e l in Manhattan.During th e meet ing , th e UC gave HALLORAN $6,500 in checks . TheUC t o l d HALLORAN, in subs tance , t h a t th e UC gave h is own moneyto o t h e r i nd iv idua l s in exchange fo r the checks wri t t en on t h e i raccounts t h a t he had j u s t given to HALLORAN so t h a t th e UC'sname would no t appear in any campaign f inance r epor t . The CWl a t e r asked HALLORAN fo r $20,000 from th e City Counci ld isc re t ionary fund and HALLORAN sa id : "Abso lu te ly , t h a t ' s easy,t h a t ' s not even an i s sue , no t even an i s sue . . In f a c t ,. I might even be ab le to g e t you more." HALLORAN thensugges ted t h a t he could c a l l in favors from o t h e r counci lmembers to i n c reas e t h e s ize o f th e d isc re t ionary funda l l o ca t i o n . HALLORAN concluded: "You tell me how you want me todo it, t h a t ' s what w e ' l l do ." HALLORAN then t o ld th e CW to g e thim a tax i d e n t i f i c a t i o n number, name and address o f acorpora t ion , and an app l i ca t ion fo r d isc re t ionary funding "sot h a t t h e r e ' s no ques t ions , it ra i ses no f l ags , and everybody 'sgot it th e way it's got t a be. You do it th e r i g h t way, no t aproblem, then you w i l l d e f i n i t e l y have my, my member i t em."HALLORAN, th e UC, and the CW then r a i sed t h e i r gla sse s and th eCW sa id , "Pleasure doing bus iness with you."

43. On o r about October 18, 2012, DANIEL J . HALLORAN, th edefendant , met th e CW and th e UC a t a r es tau ran t in Queens, NewYork. During th e meet ing , HALLORAN suggested, in subs tance ,t h a t HALLORAN give d isc re t ionary money from th e Ci ty Counci l toth e UC and th e CW by gran t ing them a con t rac t to performconsu l t ing work on a s en i o r cen te r in Queens ( the "Sen ior CenterPro jec t" ) . The UC t o ld HALLORAN, in subs tance , t h a t th e UC d idnot in tend to do any work on th e p r o j ec t b ut was i ns t eadi n t e r e s t e d in a "no show" job . HALLORAN then t o l d th e UC t h a tth e sen io r cen te r pro jec t in h i s d i s t r i c t might provide what th eUC was l ook ing fo r . During th e meeting th e UC paid HALLORAN$800 in cash .

44. On o r about October 23, 2012, DANIEL J . HALLORAN, th edefendan t , emai led to th e Holding Company a l e t t e r on New YorkCity Counci l l e t t e r h ead concerning th e Senior Center Pro jec tt h a t was addressed to t h ree c iv i c organ iza t ions . The l e t t e rs t a t ed , in p a r t , t h a t "our o f f i c e in tends to a l loca te $1 Mill ionin c a p i t a l money to the acq u i s i t i o n and improvement o f th ef a c i l i t y . I w i l l a lso a l l o ca t e d i sc re t ionary funding as neededup to our a l lo tment o f $80,000 in f i s c a l year 2013 to g e t thep r o j ec t o ff the ground."

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45. On o r about October 23, 2012, DANIEL J . HALLORAN, th edefendan t , s en t t e x t messages to th e CW, inc lud ing "Be t t e r be20 ," " I got more than you expected on t h i s p ro j e c t , " and "AtLEAST." Based on my t r a in in g , exper ience , and p a r t i c i p a t i o n int h i s i n v es t i g a t i o n , I unders tand "20" to be a reques t fo r a$20,000 payment from the CW and th e UC.

46. On o r about November 11, 2012, DANIEL J . HALLORAN, th edefendan t , emai led a l e t t e r to th e Holding Company, on New YorkCi ty Counci l l e t t e r h ead , s t a t i ng t h a t " I am reques t ing yourcompany's ass i s tance and consu l t a t ion on th e p r o j ec t .... Iw i l l . . . a l l o ca t e d i s c r e t i o n a r y funding as needed up to oura l lo tment o f $40,000-$80,000 in f i s c a l year 2013-14 to get thep r o j ec t o ff th e ground working with you to f a c i l i t a t e t h i sp r o j ec t and work with us in implementing th e acqu is i t ion ,renovat ion , and i n i t i a l s e t u p -o p e ra t i o n o f the f a c i l i t y and th ere l evan t Not For P r o f i t s who w i l l subsequent ly occupy andu t i l i z e th e f a c i l i t y . "

47. On o r about th e fo l lowing da te s , DANIEL J . HALLORAN,th e defendan t , received th e fo l lowing payments in connect ionwith th e above-described scheme as wel l as th e scheme to br ibeNew York City Republ ican Par ty committee l eaders descr ibedbelow, in th e forms l i s t e d below, during recorded conversa t ionswith th e CW and th e UC a t th e fo l lowing l oca t ions :

Date- ... .. Amount .. Fo:b;n. . . t6c:::a:tion. .September 7, $7,500 Cash Manhattan2012September 27, $6,500 Checks to Manhattan2012 HALLORAN's

co n g res s io n a lcampaignOctober 18, 2012 $800 Cash Queens

November 16, $10,000 Cash Queens2012January 25, 2013 $5,000 Cash ManhattanFebruary 10, $500 Cash Manhattan2013February 15, $15,000 Cash Manhattan2013

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The Conspiracy to Bribe New York City Pol i t i ca l Party Off i c i a l s48. On or about November 16, 2012, MALCOLM A. SMITH, th edefendant met with th e UC and the CW a t a ho te l in White Pla ins ,

New York. During th e meet ing, SMITH discussed h is ambi t ion ofrunning fo r Mayor of New York City as a Republican even thoughhe i s a reg i s t e red Democrat. As descr ibed in paragraph 18above, in order to do so, SMITH needed th e approval of thel eade rs o f three of the f ive New York Ci ty Republican countycommittees. During the conversa t ion , SMITH to ld th e CW t ha tCounty Chairman #1 was support ing someone e l s e . When th e CWsuggested t ha t the CW could inf luence County Chairman #1, SMITHresponded: " I f you can change him, c a l l me. Ser ious ly . " The CWsa id t ha t the CW knew someone c lose to County Chairman #1, andSMITH sa id : " I need you to make t ha t phone c a l l . I f youcan change him t ha t would be huge." A shor t t ime l a t e r , SMITHr e i t e r a t e d , " I f you can switch him, if you can switch him, t h a twould be huge."

49. Later onNovember.::.J:.6,2012, the UC met DANIEL J .HALLORAN, the defendant , in Queens, New York. At the meet ing,th e UC pa id HALLORAN $10,000 in cash fo r having wri t t en thel e t t e r descr ibed in paragraph 46 above. During th e meet ing, theUC thanked HALLORAN fo r having wri t t en the l e t t e r and, inpa r t i c u l a r , fo r having inc reased the amount of the a l loca t ion ofCity Counci l d isc re t ionary funds from $20,000 to up to $80,000.The UC also asked HALLORAN if he knew County Chairman #1.HALLORAN sa id t ha t he knew County Chairman #1 wel l , and HALLORANsa id , in subs tance , t h a t he could f ind ou t what it would take toobta in County Chairman #1 's suppor t fo r a candidate fo r New YorkCity Mayor. The UC and HALLORAN also discussed HALLORANcontac t ing JOSEPH J . SAVINO, the defendant , fo r th e samepurpose.

50. Later on November 16, 2012, the UC met again withMALCOLM A. SMITH, the defendant , a t a hote l in Manhattan torepor t to SMITH about the UC's discuss ion ea r l i e r t ha t day withDANIEL J . HALLORAN, th e defendant . During the conversat ion , theUC s t a t ed : " I mean you have to t e l l me how fa r , how much youwant to push. Where you want to see [County Chairman #1] move,a little b i t or a l o t , and then I'll make it happen." SMITHresponded: " I want him done. I want him done. I want him to say,'You know what , Malcolm, we did make a commitment to you ea r lyon . . . We're going back to t h a t . ' That ' s what I want him todo ." Later in the conversat ion , the UC s t a t ed : "Look, what I ,what I need to know i s , i f it 's a small th ing , t ha t ' s f ine . Do I

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. . . i s t h i s worth going to the bank fo r?" SMITH r ep l ied :"This i s a big t h i ~ g . "51. On January 25, 2013, the CW and MALCOLM SMITH, thedefendant , met in Rockland County, New York and SMITH encouraged

the CW to explore poss ib le payments to the committee l eaders inexchange for the committee l eaders approving a Wilson Pakulace r t i f i ca t e fo r SMITH. At t ha t meeting, in pa r t and subs tance ,the fo l lowing conversat ion took place :CW:

SMITH:CW:

SMITH:CW:

SMITH:CW:

SMITH:

CW:

SMITH:CW:

SMITH:CW:

SMITH:

CW:

Savino ' s in . . . You know. So , uh, met Tabone.Okay.A ll business .Right .Uh, i s it worth i t ?Yeah!It's a pre t ty penny.Yeah, it's worth it as long as they ' re going to do it.They can ' t , you know. Don' tTabone i s swearing he, l i ke , t ha t he contro ls or he ' s[ the Queens County Republican Party Chairman]Yeah, he does, he does.And he says he can br ing Manhattan . in , he says .Yeah, he does, he does.Because Manhattan i s the e a s i e s t . Th e [New YorkCounty Republican Party Chairman] i s .He can do it, can do it. But he 'd have to do it. Hec a n ' t t e l l you he ' s going to do it and then doesn ' t doit. Then you 've wasted, it's a waste . You know,d o n ' t waste a pre t ty penny. But he can do it, t he re ' sno ques t ion .It's worth any pr ice?


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SMITH: Look, t a lk to me before you c lo se it. But it 's worthit. Because you know how b ig a d ea l it i s .

52. On January 25, 2013, an undercover FBI agent ("UC-2")pos ing as a c o u r i e r fo r th e UC met with DANIEL J . HALLORAN, th edefendan t , in Manhattan. UC-2 d e l i v e red to HALLORAN $5,000 incash fo r HALLORAN's agreement to a r range meet ings with JOSEPH J .SAVINO and VINCENT TABONE, th e defendan t s .

53. On January 31, 2013, th e UC and DANIEL J . HALLORAN,th e defendan t , met a t a r e s t a u ra n t i n Queens, New York tod i scu s s making payments to VINCENT TABONE and JOSEPH J . SAVINO,th e defendan t s . HALLORAN t o ld th e UC, in subs t a nc e , t h a t TABONEwanted $100,000 p a id to TABONE and $50,000 p a id to th e QueensCounty Republ ican Par ty . HALLORAN a l so sa id t h a t he b e l i ev edt h a t SAVINO would need to be paid only $15,000 o r $20,000.HALLORAN made c l e a r t h a t he wanted to be compensated fo rbr oke r i ng t h e d ea l s . When asked, in subs tance , what he wantedin o rd e r to br oke r t h e d ea l s with TABONE and SAVINO, HALLORANs a i d he wanted to g e t h is "mortgage s i t u a t i o n r e s o l v ed . "HALLORAN a l so noted t h a t if MALCOLM A. SMITH, th e defendan t ,were to be e lec t ed mayor, HALLORAN would expec t t h a t , ifHALLORAN asked, SMITH would appoin t him as Deputy Po l i ceCommissioner .

54. On February 1, 2013, th e UC and DANIEL J . HALLORAN,th e defendan t , met with JOSEPH J . SAVINO, th e defendan t , a t are s t au ran t i n Manhattan. The meet ing was a r ranged by HALLORAN.During th e meet ing , th e UC, SAVINO, and HALLORAN discussedg e t t i n g MALCOLM A. SMITH, th e defendan t , on th e Republ icanb a l l o t . SAVINO, in subs tance , sa id t h a t if th e UC purchasedi nsurance from SAVINO's i nsurance agency o r s en t work t o h i s lawf i rm, t h a t would make t h in g s "ve ry eas y . " SAVINO a l so s t a t edt h a t "everyone has to pay t h e i r mortgage" and sugges ted t h a t th eUC a l s o pay a r e t a i n e r to a no t he r Republ ican county chai rman("County Chairman #2") in o rd e r to gain County Chairman # 2 ' ssuppor t fo r a Wilson Pakula c e r t i f i c a t e fo r SMITH.

55. L ate r on February 1 , 2013, th e UC and DANIEL J .HALLORAN, th e defendan t , met with VINCENT TABONE, th e defendan t ,in Manhat tan to d i scu s s whether TABONE would approve a WilsonPakula c e r t i f i c a t e fo r MALCOLM A. SMITH, th e defendan t . DANIELJ . HALLORAN, th e defendan t , a r ranged th e meet ing . During th emeet ing TABONE, HALLORAN and th e UC discussed the p o s s i b i l i t y o fTABONE o b ta in in g a Wilson Pakula c e r t i f i c a t e fo r SMITH.

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56. On February 5, 2013, th e UC spoke by te lephone withDANIEL J . HALLORAN, th e defendant , and HALLORAN repor ted t h a t hehad spoken with , among o ther s , VINCENT TABONE and JOSEPH J .SAVINO, the defendan ts , and they had "agreed to do what[HALLORAN] had asked ." HALLORAN emphasized t h a t he and th e UCneeded to move forward "ASAP" and t h a t he wanted to meetd i r e c t ly with MALCOLM SMITH, th e defendant . HALLORAN and th e UCa l so agreed , in subs tance , t ha t payments to th e committeel eaders on beha l f of SMITH would be made through the UC andHALLORAN. The UC t o ld HALLORAN t h a t th e UC needed a "number"from HALLORAN with re spec t to th e payment to VINCENT TABONE, th edefendan t . The UC fu r the r t o ld HALLORAN t ha t he had to help th eUC with " the numbers, though, you 've got help me manage them.Make sure [ the committee l eaders ] d o n ' t go too c razy . " HALLORANresponded, " I w i l l do my end o f making sure a l l t ha t works th er i g h t way."

57. On February 8, 2013, th e CW and th e UC met with DANIELJ . HALLORAN, th e defendant , in Manhattan. HALLORAN s t a t ed , insubs tance , t ha t they would probably be able to g e t a l l f ive NewYork Ci ty Republican Party county chairmen to s ign a WilsonPakula c e r t i f i c a t e fo r MALCOLM A. SMITH, th e defendant . Inresponse, the UC s t a t e d , "I 'm hear ing my pr ice j u s t went up ."HALLORAN exp la ined t ha t , " in some way[s] , it went down," becauseonly th ree of the f ive chairmen were requ i r ing payments.HALLORAN then gave th e fo l lowing i n s t ruc t ions to th e CW and th eUC: "So, look, you go t ta , you go t ta g et [SAVINO] bus iness bu tput twen ty- f ive in an envelope.... [TABONE] i s twen ty- f ive upf ron t , twen ty- f ive when th e Wilson Pakula i s de l ivered . So, hewants, and he doesn ' t care about [ the Queens County Republ icanParty] ge t t ing anyth ing a t t h i s p o i n t . " Fina l ly , HALLORANi nd ica t ed t h a t he bel i eved t ha t it "would be wise" fo r SMITH tomake HALLORAN a deputy mayor if SMITH were e lec ted and t ha t theRepubl ican Party would expect t h a t SMITH would make c e r t a i n t h a tf i f t y percen t o f h is key appointments were se t as ide forRepubl icans .

58. On o r about February 10, 2013, th e UC and th e CW metwith MALCOLM A. SMITH, th e defendant , in a h o t e l room inManhattan. SMITH was accompanied by a bodyguard, but th ebodyguard waited in a separa te room. SMITH, the UC and th e CWdiscussed having th e committee l eaders s ign Wilson Pakulac e r t i f i c a t e s to ge t SMITH on th e Republ ican b a l l o t . The UC t o ldSMITH, "We have a l l f ive" and t ha t DANIEL J . HALLORAN, thedefendant , was " the one to make t h i s whole t h ing happen." TheUC fu r the r s t a t ed , " I have a number from every one of them" andt h a t , in t o t a l , it would cos t in th e range o f "two hundred

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grand." As descr ibed fu r the r below, the UC, th e CW and SMITHdiscussed: (a) d i r ec t i n g th e payments to th e committee l eaderspersona l ly and not to th e Republican Party ; (b) making p a r t i a lpayments to ensure t h a t th e committee l eaders ac tu a l l y obta inedWilson Pakula c e r t i f i c a t e s fo r SMITH; (c) keep ing the paymentssec re t ; and (d) making an appropr ia te payment to VINCENT TABONE,th e defendant , whose suppor t SMITH thought was pa r t i c u l a r lyimpor tan t .

59. During th e conversat ion , the UC t o ld SMITH t ha t th epayments would be made to th e committee l eaders pe rsona l ly andno t to the pa r ty . For example, th e UC sa id : "We've gone awayfrom giving some donat ions to pa r t i e s . I d i d n ' t want to g e tinvolved with t ha t mess." Th e UC a lso to ld SMITH t ha t th epayments would be to committee l eaders "who have f i n an c i a l needsand want to be t aken care of . " The UC mentioned t h a t theseneeds included co l lege t u i t i o n fo r one committee l e ade r andmortgage payments fo r another .

60. During the conversa t ion , th e UC a lso t o ld SMITH t ha tth e payments would be s t ruc tu red so t ha t they would be "h a l f upf ron t " and the "other ha l f " would be a f t e r th e committee l eaders"d e l i v e r . " The UC sa id t ha t he would tell th e committeel e ade rs : "[Y]ou ' re go ing- to ge t h a l f now and when you de l ive r ,you ' l l g et t he o the r ha l f . " In response, SMITH sa id , "Right . "Later in th e conversat ion , SMITH cau t ioned , " I wouldn ' t givethem more than l i ke t en , j u s t to , j u s t to s t a r t out . "

61. During the conve rsat ion , the UC and SMITH a l sodiscussed t ha t payments would be made such t ha t t he re would be"no t r a ce back" to SMITH, the UC or the CW. SMITH suggested t h a tthe payments be made v ia r e t a i n e r agreements between th ecommittee l eaders and th e UC leaving no connect ion to SMITH. TheUC sa id t h a t th e UC did no t want any wri t t en con t rac t s to t i ethe UC and th e committee l eaders toge ther and SMITH suggestedt h a t th e agreements could be done "on a handshake ." When th ed i scuss ion re tu rned to th e top ic o f making sure t ha t th ecommittee l eaders ac tua l ly fo l lowed through and de l ive red th eWilson Pakula c e r t i f i c a t e s , SMITH suggested , "hav[ing] them s igna p i ece o f paper o r something ." The UC responded: "No, no, I 'm-no t s ign ing any th ing ," and SMITH r ep l ied : "Tha t ' s t r u e , youd o n ' t want to do t ha t . "

62. At one p o i n t during th e conversat ion , the CW, th e UCand SMITH discussed the p o s s i b i l i t y o f a prominent personendors ing SMITH's candidacy fo r mayor. The CW t o ld SMITH t h a tTABONE i nd ica t ed t h a t he "could de l ive r" t h i s endorsement fo r

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th e " r i g h ~ amount ." SMITH responded, "Tha t ' s th e one we need todo."

63. Immediately fol lowing the d iscuss ion of payments tothe committee leaders , the CW and the UC asked SMITH to d i r e c t$500,000 in New York Sta te funding fo r improvement of a roadt h a t would benef i t the Real Esta te Project . SMITH sa id t ha t itwas "doable" and sa id t ha t he would speak with the Sta te Senatorwhose d i s t r i c t encompasses Spring Valley ( the "Spr ing Val leySta te Senator") to help ge t the funding a l loca ted in the Sta tebudget .

64. Later on February 10, 2013, the UC and the CW met withDANIEL J . HALLORAN, the defendant , and MALCOLM A. SMITH, thedefendant . The UC and the CW arranged the meet ing-a t HALLORAN'sreques t . Af t e r i n i t i a l p leasan t r i e s , SMITH sa id to HALLORAN,"You've been busy," and HALLORAN responded t ha t it had been "aheavy lift." HALLORAN explained, in substance, t ha t he hadbe l ieved t h a t if three of the committee chairmen agreed to signa Wilson Pakula c e r t i f i c a t e , then the o ther tw o chairmen wouldagree as wel l , and t ha t everything had unfolded as HALLORAN hadbe l ieved t h a t it would. SMITH and HALLORAN went on to discuss ,in substance, th e importance of SMITH remembering the suppor t ofthe Republican Party if he were to be e lec ted .

65. The UC and DANIEL J . HALLORAN, th e defendant , had afol low-up conversat ion a f t e r the meeting with MALCOLM A. SMITH,the defendant , descr ibed immediately above, dur ing which theydiscussed schedul ing meet ings with VINCENT TABONE and JOSEPH J .SAVINO, the defendants , for the purpose of making payments tothem. During t h i s fol low-up conversat ion , the UC made a $500cash payment to HALLORAN.

66. During th e evening of February 14, 2013, th e UC metwith DANIEL J . HALLORAN and JOSEPH J . SAVINO, the defendants , a ta r es tau ran t in Manhattan. At one poin t dur ing the evening, theUC and JOSEPH J . SAVINO, th e defendant , both stepped outs ide ofthe r es tau ran t so they could meet pr iva te ly in the UC's car . Inth e car , the UC paid SAVINO $15,000 in cash. SAVINO and the UCagreed t h a t th e UC would pay SAVINO an add i t iona l $15,000 a f t e rSAVINO s igned a Wilson Pakula ce r t i f i ca t e fo r SMITH. Duringt ha t conversat ion! SAVINO, who i s a lawyer, proposed t ha t hewould send the UC a r e t a ine r agreement fo r $15,000 i n l ega lse rv ices . The UC to ld SAVINO, " I f you need some bu l l sh i tnumber, or something, to c a l l it ... j u s t invoice me fo rsomething," and SAVINO responded, "Yeah, abso lu te ly . " The UCe labora ted t ha t " [ i ] f you want a number to c a l l and say somebody

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answered it, and you spen t a couple of hours , whatever youneed," and SAVINO responded, "Fan tas t i c , good." Short lyt he r e a f t e r , SAVINO sa id , "[Another County Chairman is ] on boardso we a l ready got two."

67. Later dur ing the evening o f February 14, 2013, th e UCmet separa te ly with VINCENT TABONE, the defendant , a t the sameres t au ran t in Manhattan. The UC suggested paying TABONE,"Twenty now, twenty l a t e r " and TABONE responded, " I was th inkingtwenty-f ive now, twenty f ive l a t e r . " TABONE also to ld the UCt h a t he would send the UC a r e t a ine r agreement for the money.The UC sa id t ha t ra the r than pay a lump sum re ta ine r , he wouldmake an up- f ron t payment and then pay the o the r "ha l f " l a t e r .TABONE s t a t e d , in substance, t ha t he was "making [a] commitment"to get SMITH a Wilson Pakula ce r t i f i ca t e . The UC asked whetherTABONE, as the Vice Chairman of the Queens County RepublicanPar ty committee, could de l ive r a Wilson Pakula c e r t i f i c a t e , andTABONE sa id , " I run th e Queens County Republican Par ty . Nobodye l se runs th e par ty . I run th e par ty . " During th econversa t ion , TABONE f r i sked the UC in an apparent e f f o r t tomake sure t ha t the UC was not recording t h e i r conversa t ion . TheUC was, in fac t , recording the conversa t ion .

68. During the evening, th e UC and VINCENT TABONE, th edefendant , s tepped outs ide the r es tau ran t to go to th e UC's ca rwhere the UC paid TABONE $25,000 in cash.69. On February 15, 2013, DANIEL J . HALLORAN, th e

defendant , met the UC a t a hote l in Manhattan. During themeet ing, the UC paid HALLORAN $15,000 in cash in exchange fo rHALLORAN having arranged the meetings th e day before with JOSEPHJ . SAVINO and VINCENT TABONE, the defendants .

70. On February 17, 2013, th e UC and MALCOLM A. SMITH, thedefendant , had a te lephone conversat ion dur ing which SMITH andthe UC discussed how to car ry out a conversat ion with the SpringVal ley Sta te Senator about the Real Es ta t e P ro jec t . During theconversa t ion , the UC and SMITH also discussed paying a br ibe toCounty Chairman #1 and SMITH sa id , in subs tance , t ha t CountyChairman #1 should rece ive " le ss" than VINCENT TABONE and JOSEPHJ . SAVINO, the defendants , and t ha t County Chairman #1 should bet o ld t ha t he i s rece iv ing l e ss because he would be the four thchairman to sign a Wilson Pakula ce r t i f i ca t e , and SMITH onlyneeded th ree s ignatures .

71. On March 21, 2013, MALCOLM A. SMITH, the defendant ,met with th e UC and the CW in SMITH's New York Sta te Senate25


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of f ice in Albany, New York. At the beginning of the meeting,SMITH r a i sed the sub jec t of the $500,000 in s t a t e t ranspor t a t ionfunding t ha t he had agreed to help th e UC and the CW obta in tob e n e f i t the Real Es ta t e Pro jec t . SMITH sa id :

I 'm surpr ised you d i dn ' t see urn, urn, [ the SpringValley Sta te Sena tor] . . Why don ' t you use him upfo r your little road s t u f f . I b e t ya he can. Ith ink , I th ink I found another place fo r him to do it,too . Out of mult i -modal money. . . . Mult i-modalmoney i s outs ide the budget and it's always around.72. The conversat ion then turned to the New York Ci tyRepublican county committee leaders . The UC t o ld SMITH t ha t ,

"Apri l 3rd, they ' re going to meet . . They ' re going to gettoge ther . . They ' re going to do t h e i r little Kabuki dance .

. They ' re going to discuss it. . And they got a hundredthousand d o l l a r reasons to come out and say hey, here we go."SMITH r ep l ied , "You gave it to them al ready?" and the UCresponded, "Yeah. Okay, now, no, no, I gave them - l i ke wed i s c u s s e d - h a l f . They go t ta come through." Later in th econversat ion the UC sa id , "Right now they have a small upperhand, because they got the f i r s t h a l f of t h e i r pay, but thenonce they get t ha t , we need them to now, now I push t h e i rbu t tons . " SMITH r ep l ied :

Whatever you gave them, you know, i s the re . And t r u s tme, they don ' t , even if they screw, you know, let'sj u s t say they screwed you and me and sa id , you know,I 'm not doing anyth ing . Th e wors t p a r t about t h a t i s ,when you screw somebody over money l ike tha t ,you know, t h a t ' s the wors t ... you ' re looking overyour shoulder a l l the r e s t of your l i f e .... You'relooking over your shoulder , because , because , not onlyt ha t , t h i s world i s too smal l . . . Yeah, the worldi s too smal l . And any t ime you do t ha t , imagine youcame to me and sa id , Malcolm, they screwed me. Igot them already asking me about judgeships , becauseyou know judgeships now come through here , it comesthrough the governor .73. Later in the conversa t ion , SMITH sa id , " I f they screwyou, they screw ... Lis t en , I 'd ra the r them say, you knowwhat, no I 'm not gonna do it. But, I know they haven ' t sa id

t ha t , but they ' re screwed if they t r i ed to play the game ands t r i ng it a long." The CW then sa id , " I th ink the only t h ing i s ,maybe a shake down fo r a little b i t more." SMITH responded:

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27

Yeah, but I woul dn t do. I woul dn t t ouch em. Iwoul dn t . You know what ? I d say I woul dn t event ouch t hat . . . . I d say absol ut el y not . I d say I mnot gi vi ng you a f r eaki ng di me. I d say, i f I evengi ve you a ni ckel more, you d have t o st and on theEmpi r e St ate Bui l di ng, and dr op ever y per son youendor sed, and hol d Mal col m up and say he s t he bestt hi ng si nce sl i ced br ead. Mat t er of f act , he s bet t ert han sl i ced br ead.

74. The UC sai d, What I can do, and we shoul d t al k abouti s, maybe i f t hey want t o up t he ant e a l i t t l e bi t on t he backend, but t hen t hey r e goi ng t o have t o do more. SMI THr esponded, Let s cl ose t he deal . I mean, I m j ust sayi ng, Iwoul dn t do anyt hi ng wi t h t hem unt i l you cl ose t he f i r st deal .I woul d cl ose i t f i r s t .

75. Lat er i n t he conver sat i on, t he UC sai d, I may bena ve i n t hi s back wor l d. SMI TH r epl i ed, Busi ness i sbusi ness . They under st and. You don t t ake somebody s money andj ust go, you know. Li f e i s t oo shor t , I m t el l i ng you, i t comesback ar ound f ast . The UC sai d, And t hey r e al l cr yi ng aboutwhat t hey, you know t hey need t hi s, t hey need that , you know. SMI TH asked, They cr i ed about what? The UC sai d, Al l t hi sst uf f wi t h mon . . . oh, I got a ki d i n col l ege, I got debt , Igot debt s, what ever , I got a vacat i on home. SMI TH r esponded,You know what you do? Tel l hi m, t el l hi m I got a ki d i n Al bany

t hat needs t o be born. So, when you bi r t h hi m, when you bi r t hmy chi l d up i n Al bany, I l l hel p you wi t h your ki d.


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WHEREFORE, I r e spec t f u l l y reques t t ha t warran ts bei ssued fo r th e a r r e s t o f MALCOLM A. SMITH, DANIEL J . HALLORAN,VINCENT TABONE, JOSEPH J . SAVINO, NORAMIE JASMIN, and JOSEPHDESMARET, th e defendan ts , and t h a t they be imprisoned or ba i l ed ,as th e case may be.

'~ S w o r n to ~ f ~ r e 'me t h i s 29th da ~ March_."20.).3 ~ @ - . -. .

THOMAS HOLMESSpecia l AgentFedera l Bureau of Inves t iga t ion

uz:a...HONORABLE PAUL E. DAVISONUnited Sta tes Magis t ra te JudgeSouthern Dis t r i c t o f New York

Documents

Smith, Malcolm Et Al. Complaint (Signed)