Knapp guilty of conspiracy

By Michael Valkys
Poughkeepsie Journal

WHITE PLAINS — The former No. 2 man in the Town of Poughkeepsie water department pleaded guilty to conspiracy Wednesday after signing a cooperation deal with the government.

Knapp

Former water maintenance supervisor George Knapp is the second former town employee to appear in federal court in as many days as an ongoing state and federal corruption probe continues to unwind.

Knapp, 52, entered the plea before federal Judge Mark Fox. Knapp — who suddenly resigned his town post two weeks ago after 29 years on the job — is set to be sentenced May 17. He faces a maximum of five years in jail and fines up to $250,000.

Karl Rabe/Poughkeepsie Journal George Knapp, left, with his wife, Paula, center, and attorney William G. Sayegh walk out of the Federal Courthouse in White Plains.

Knapp was released on his own recognizance pending sentencing.

Details of his cooperation agreement were not disclosed Wednesday.

Knapp’s plea comes the day after former Town Attorney Frank Redl signed a deal with authorities after being charged with conspiracy to obstruct justice. The charge will be dropped if Redl remains out of legal trouble for a year.

Knapp pleaded guilty to one count of conspiracy to commit mail fraud.

Knapp and Redl’s court appearances come as the U.S. Attorney’s Office prepares its case against former town and Dutchess County GOP Chairman William Paroli Sr.

Federal prosecutors accuse Paroli of running a six-year scheme to shake down contractors wanting to do business in the Town of Poughkeepsie. He faces a March 27 trial on a 19-count indictment and faces a maximum of 220 years in prison if convicted of all the charges.

Both Knapp and Redl are expected to testify against Paroli at his trial.

Redl struck a deal with the government Tuesday after being charged with lying to a federal grand jury investigating corruption in the town.

AT A GLANCE COURT ACTIONS In addition to George Knapp, eight individuals have faced criminal charges or other court action in connection with the federal and state investigation into corruption in the Town of Poughkeepsie. CHARGED William Paroli Sr. — The former chairman of the Dutchess County and Town of Poughkeepsie Republican committees faces 19 counts related to the corruption scandal. Paroli was first arrested in May 1999. His trial in federal court in White Plains is scheduled for late March. CONVICTED Robert Kortright — A deputy building inspector for the Town of Poughkeepsie, Kortright was convicted by a federal jury of one count of bribery and one count of extortion in October 1998. He was sentenced to a year in prison. Jim Pickles — The Town of Poughkeepsie building department director, Pickles pleaded guilty to one count of bribery about a week after the completion of Kortright’s trial. Pickles resigned his job with the town shortly before Kortright’s arrest. He was sentenced to home confinement and probation. Fred Andros — Superintendent of the town’s water department, Andros pleaded guilty in May 1999 to a single charge of conspiracy. He had resigned from his town job just hours before entering into the plea deal in federal court in White Plains. He has not been sentenced on the conspiracy charge. Andros also faces a second-degree murder charge in connection with the killing of Susan Fassett. Authorities said they have found no credible connection between the corruption scandal and Fassett’s murder, other than the involvement of Andros. Andrew Ceroni — A retired quarry salesman, Ceroni pleaded guilty to two charges on separate occasions. In September 1999, Ceroni pleaded guilty to one count of perjury. In December 1999, he pleaded guilty to a charge of conspiracy. DEFERRED PROSECUTION AGREEMENTS Herbert Redl — Arrested in February 1999 on bribery charges, Redl in June entered into an agreement with prosecutors. Under the terms of the deal, the U.S. Attorney’s office agreed that it would not prosecute Redl if he stayed out of legal trouble for six months. The terms of that deal were met in January 2000 and the case against Redl was dropped. Denise Ackerman — The former deputy town attorney in the Town of Poughkeepsie entered into a deferred prosecution agreement with federal authorities in January. Under the agreement, Ackerman will not be prosecuted if she remains out of legal trouble for six months. Frank Redl — The former attorney for the Town of Poughkeepsie, Frank Redl, entered into a deferred prosecution deal with federal prosecutors on Tuesday. Under the terms of the deal, Redl will not be prosecuted if he stays out of trouble for 12 months.

Redl, 44, entered into what is known as a deferred prosecution agreement. Under the deal, Redl will not be prosecuted if he stays out of legal trouble and testifies truthfully at all future proceedings. He would have faced a maximum of five years in prison and fines up to $250,000 if convicted of the charge.

Paroli declined comment when reached at home after the court session.

Court papers indicate Redl told authorities that Paroli pressured him to lie about events at a 1997 dinner meeting with a Florida developer seeking help in getting town approval for a Route 9 project.

The developer is cooperating in the case against Paroli.

Since the state and federal investigation began three years ago, five people have been convicted and three, including Redl, have entered into deferred prosecution deals.

The probe has touched many areas of town hall.

So far, the former heads of the town’s legal, assessing, water and building departments have all been caught up in the scandal.

Authorities allege Paroli — with the help of former town Assessor Basil ‘‘Bill’’ Raucci and former town water Superintendent Fred Andros — netted $65,000 in illegal bribes, with money going to Paroli, his co-conspirators and the GOP.

Knapp was the second-ranking water official behind Andros.

Knapp — who told the judge he is recovering from brain surgery last year — got a kiss on the cheek from his wife before outlining his role in the scandal.

Knapp admitted that he, under orders from Andros, recorded overtime in 1997 and 1998 for a water department employee.

But Knapp acknowledged the employee was not performing department work, but was instead doing landscaping and other work at Paroli’s home.

Knapp also admitted that in 1997 he drove Paroli’s car to have tires replaced at a local shop, again under orders from Andros.

The work was again paid for by the town.

Those incidents were also included in court documents filed in the prosecutors’ case against Paroli.

‘‘Mr. Knapp knowingly and willfully participated in the scheme,’’ Assistant U.S. Attorney Cari Robinson told the judge.

Knapp agreed he knew what he was doing was wrong.

‘‘I knew they (the overtime hours) were being billed to the Town of Poughkeepsie,’’ Knapp told the judge.

Knapp declined comment after the court session, but his attorney said Knapp has been cooperating with authorities for some time.

‘‘He’s a good man. He’s a family man,’’ said Knapp’s attorney, William Sayegh of Carmel. ‘‘This guy is distraught about this.’’

Case suffers setbacks

The flurry of court appearances comes as the government finalizes its case against Paroli, 71.

The prosecution’s case has been hurt because Paroli’s two alleged key co-conspirators, who helped him operate the shakedown scheme, will not testify at his trial.

Raucci committed suicide in 1997 after investigators confronted him about his role in the scandal.

And Andros, Knapp’s former boss in the water department, is in the Dutchess County Jail, charged with second-degree murder.

He and Greene County resident Dawn Silvernail are accused of murdering former town personnel director Susan Fassett last Oct. 28 as she left choir practice in Pleasant Valley.

Andros pleaded guilty last May to one count of conspiracy following a deal with authorities, admitting he acted as a bag man by delivering illegal cash bribes to Paroli in his county elections office.

Prosecutors said last month that Andros is not expected to testify in the wake of the murder charge.

Paroli is due back in court at 9 a.m. Feb. 29 for a status conference before Judge Barrington Parker Jr.

State and local authorities have offered no motive for Fassett’s slaying, but have cleared Paroli of any involvement in her murder.

Paroli was arrested May 26 at his Cream Street home and resigned his town and county GOP chairmanships soon after. He remains in his paid post as the Dutchess County Republican elections commissioner.