Cor was requested by Todd Howe for an extension of a $85,000 loan amidst impending corruption allegations
FBI Arrests Cor Development Executives Amidst Corruption Probe
In a stunning turn of events, FBI agents arrested Steven Aiello, President of Cor Development Co., and Joseph Gerardi, the company's General Counsel, on August 13, 2015. The arrests were part of a wider corruption probe led by U.S. Attorney Preet Bharara.
Aiello and Gerardi were charged with five counts, including paying bribes, wire fraud, and making false statements to a federal investigator. The charges involve allegations of funneling a $35,000 bribe to Joseph Percoco, a former top aide to Gov. Andrew Cuomo, to secure $105 million worth of construction contracts at a state-funded nanotech hub in DeWitt.
The 80-page criminal complaint filed by Bharara frequently cites statements from Todd Howe, a former confidante of Gov. Cuomo's family, to support these allegations. Howe, who was cooperating with Bharara's probe, asked Cor Development Co. for an extension on an $85,000 personal loan while cooperating with federal prosecutors.
On August 9, 2015, Howe requested an extension on the loan, promising to pay it back, plus interest, by September 30, 2016. However, on December 25, Howe gave Cor a check for the same amount, but asked them not to cash it due to insufficient funds in his checking account. On June 28, 2016, Cor finally deposited the check, which bounced, returning it due to "not sufficient funds."
In response to the charges, an attorney for Aiello and Gerardi issued a statement denying the charges against them and calling Howe a "self-admitted fraudster, tax cheat, and liar." Cor Development Co. sued Howe on Aug. 10, alleging he had defaulted on the loan. The documents provided by Cor show that Howe signed a promissory note on Aug. 14, 2015, pledging to repay the loan with 1 percent annual interest at the end of the year.
On January 25, 2016, an amendment to the promissory note was signed, giving Howe until June 30, 2016, to pay back the loan. It's unclear whether Howe denied the allegation in a court filing, as it's not clear whether he was denying accepting the loan or defaulting on it.
Despite extensive searches, no publicly available detailed timeline or explanation about the loan or its default in connection to the federal corruption investigation could be found. The documents mostly relate to housing programs, organizational charts, and unrelated events without mention of Todd Howe or Cor Development Co.'s loan issues. If detailed information about Todd Howe's loan is required, it may necessitate access to specialized legal documents, court filings, or investigative reports not found in the provided sources.
The arrest of Cor Development executives Aiello and Gerardi, for their alleged involvement in a wide-ranging corruption probe, has raised questions about the intersection of business, politics, and finance, as well as the impact on general-news and crime-and-justice sectors. The charges against them, which include paying bribes, wire fraud, and false statements, are not only significant for the company but also for the broader business world, signifying a potential shift in business ethics and political accountability.
