Saturday, May 12, 2018

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Kelly pleads guilty in CPV bribery scheme

NEW YORK – Former CPV executive Peter Galbraith Kelly, Jr., pled guilty on Friday, in federal court, to defrauding CPV by misrepresenting that the former executive deputy secretary to the governor, Joseph Percoco, had obtained state ethics approval for his wife to work at CPV, the company that built the controversial electric generating plant in the Town of Wawayanda.

When sentenced in September, Kelly faces up to five years in federal prison.

After an eight-week jury trial, co-defendants Percoco and Steven Aiello were convicted of charges related to bribery.

The jury was deadlocked on charges against Kelly. Joseph Gerardi was acquitted of all charges.

Kelly, 54, of Canterbury, Connecticut, pled guilty to one count of conspiracy to commit wire fraud before US District Judge Valerie Caproni.

Following the guilty plea on Friday, Pramilla Malick, chairwoman of Protect Orange County, called the agreement a bad “back-door deal [that] makes a mockery of the judicial system.” She expressed “outrage that Kelly never admitted the harm he caused his victims, the residents of Orange County. The only wrong he verbally declared was lying to CPV,” she said.

According to evidence and documents, Kelly ran monthly payments to Percoco and his wife through a consultant who worked for CPV in order to disguise the source of the payments. Kelly also made sure that Percoco’s wife’s photograph and full name were not included in promotional materials for the company, and he falsely told his superiors at CPV, on two occasions, that Percoco had obtained an ethics opinion from the governor’s office approving Percoco’s wife’s employment with CPV, when in fact, no such opinion existed.

For his part, Percoco concealed the criminal scheme by failing to include CPV as the source of payments on his state-mandated financial disclosure forms.


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