Poughkeepsie Journal
February 19, 2000
By Michael Valkys
Poughkeepsie Journal
Former Dutchess County Republican Chairman William Paroli Sr. — a one-time beat cop who became one of the most powerful figures in the county and the Town of Poughkeepsie’s de-facto ruler — pleaded guilty Friday in federal court to one count of conspiracy to commit extortion.
Paroli, 71, entered his plea before federal Judge Mark Fox. With snow pouring down outside the courtroom, Paroli outlined how he and former town department heads Basil ‘‘Bill’’ Raucci and Fred Andros conspired to shake down contractors on town developments to enrich themselves and the local GOP.
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| Cindy Reiman/Poughkeepsie
Journal Flanked by his attorneys Andrew Rubin, left, and Gerald Vergilis, right, William Paroli Sr. leaves the U.S. Federal Courthouse in White Plains on Friday after pleading guilty to one count of conspiracy to commit extortion. |
‘‘I knew what I was doing was wrong and illegal,’’ Paroli told the judge. ‘‘I plead guilty, your honor.’’
Under a plea agreement with authorities, Paroli will likely be sentenced to between 15 and 21 months in federal prison with fines of between $4,000 and $40,000. He must also pay back the Town of Poughkeepsie an amount not to exceed $20,000 for services performed at Paroli’s home that were later billed to the town.
Paroli could have faced a maximum of 20 years in prison and fines up to $250,000 under federal law.
He is to be sentenced May 18 by Judge Barrington Parker Jr.
Paroli remains free without bail until sentencing.
Must quit GOP post
Under the plea deal, Paroli also must immediately resign as Dutchess County’s Republican elections commissioner, which pays $58,000 per year. He will also be banned from participating in political organizations for up to three years after his release.
A special hearing officer appointed by Gov. George Pataki last year had set a March 3 date for a disciplinary hearing to remove Paroli from the post. That hearing is no longer necessary.
In addition, Paroli must perform 15 hours per week of community service once he is released from prison, for a period of up to three years.
Federal authorities praised investigators and prosecutors who have worked on a nearly three-year investigation into town corruption.
| PROFILE WILLIAM PAROLI SR. 1928: Paroli is born in Poughkeepsie, the fourth of five children. 1946: He graduates from Poughkeepsie High School, where he plays football. 1948: He marries and drops out of Arnold College in Milford, Conn. 1953: He joins the City of Poughkeepsie police force. 1964: He leaves the city force as a detective, taking a position as an investigator in the newly formed public defender’s office. 1977: His first foray into local politics begins when he joins the Fourth Ward Republican Committee in the Town of Poughkeepsie. 1978: Paroli is elected Town of Poughkeepsie Republican Committee chairman, replacing Lew Klein. 1985: The state Republican committee funnels about $300,000 to Town of Poughkeepsie GOP candidates, later revealing the money came from a front group for the Syracuse-based Pyramid Corp., which needed a zoning change to build the Poughkeepsie Galleria mall. Five Republicans are swept into office; they later OK the change. Paroli claims ignorance of the money’s origins. 1989: Paroli becomes Republican elections commissioner, replacing Joseph Poillucci, whose ouster he helped engineer. 1997: Paroli is elected chairman of the county Republican Party, ousting Adeline ‘‘Nan’’ Cross in a 241-215 vote. 1999: Paroli is re-elected chairman of the Town Republican Committee in a unanimous vote. On May 26, he is arrested by federal authorities on charges of conspiracy and extortion. Feb. 18, 2000: Paroli Sr. pleads guilty to conspiracy to commit extortion. When sentenced May 18, he faces up to 21 months in prison, a fine and paying the Town of Poughkeepsie up to $21,000. |
‘‘This guilty plea and the sentence to follow should end the corrupt grip Paroli and his political minions held over the Town of Poughkeepsie,’’ said Mary Jo White, U.S. Attorney for the southern district of New York.
‘‘There is no more serious crime than corruption committed by public officials who are entrusted by the public to exercise their powers in a faithful, fair and honest manne. ... The citizens of Poughkeepsie and Dutchess County deserve and have a right to expect that their public officials will be honest and act solely in the public interest — not their own.’’
White said the investigation into the town is ongoing, but would not elaborate.
Paroli’s plea came after negotiations with federal prosecutors intensified this week. Paroli has watched in recent weeks as a steady stream of former town employees appeared in federal court and implicated him in the scandal.
Paroli, the former town and Dutchess County GOP chairman prior to his May 26 arrest, had been scheduled to face trial March 27 on a 19-count indictment. He had pleaded not guilty to a revised indictment just last week.
Paroli’s guilty plea is the culmination of the state and federal investigation. Working from the bottom of the conspiracy to the top in an effort to get Paroli, investigators made their first arrest in March 1998, charging town Deputy Building Inspector Robert Kortright with bribery and extortion. He was later convicted and sentenced to a year and a day in prison. Kortright, the only person convicted who served jail time, was released Feb. 9.
Between the fall 1998 and Friday, five more people were convicted of corruption-related charges. Three entered into deferred prosecution agreements with authorities.
Just this week, former town Attorney Frank Redl and former water department supervisor George Knapp appeared in federal court in connection with the scandal.
Redl, 44, signed a deal that would have a charge of conspiracy to obstruct justice dropped if he stays out of trouble for a year. Authorities allege he lied to a federal grand jury about a 1997 dinner he attended with Paroli and a Florida developer at which a bribe offer was allegedly made.
Knapp, 52, admitted he charged overtime to the town for a water department worker to do landscaping and other work at Paroli’s home. He also admitted the town water department paid for new tires for Paroli’s car.
Paroli portrayal sordid
Authorities have painted a sordid picture of Paroli as an old-fashioned political boss run amok, wielding power over matters big and small in the town — from hiring employees to influencing the votes of town board members.
Assistant U.S. Attorney Mark Godsey told Judge Fox that the government was ready to present video and audio tape evidence that Paroli, Andros and Raucci conspired to solicit bribes from contractors over a six-year period. Godsey said former town board members also were prepared to testify about Paroli’s grip over Poughkeepsie.
‘‘Paroli controlled town government,’’ Godsey said.
But it was the shakedown scheme that ultimately led to Paroli’s downfall.
With the help of Raucci, the former town assessor and Andros, the former water superintendent, Paroli was accused of netting more than $100,000 in bribes with the cash going to him and his co-conspirators and the GOP.
That figure was later revised to about $65,000, after a portion of the case against Paroli was dropped several weeks ago.
White said the investigation began after a businessman contacted authorities about shakedowns. She refused to identify the tipster, but Louis Shassian of Florida-based CED Construction has said he helped authorities in their investigation.
CED developed the Grand Pointe Park housing complex off Salt Point Turnpike in the town.
Paroli declined comment after his plea. But his attorney, Andrew Rubin, said Paroli was anxious to get on with his life, a life Rubin said was spent in public service before the events of recent years.
‘‘This basically ends this chapter in what was a pretty bad situation,’’ said Rubin. ‘‘We’re glad to put an end to it at this point. I think he’ll be happy to go on with his life. ... Bill is a strong guy.’’
The case was primarily investigated by FBI Special Agent James J. O’Connor and Roy Casse of the state Commission of Investigation. Cases were prosecuted by Godsey and Assistant U.S. Attorneys Cari Robinson and Cathy Seibel.
Prosecutors said in court that Paroli ordered shakedowns of a number of contractors and companies they described as ‘‘victims.’’ They included Poughkeepsie Asphalt, CED, H.G. Page & Sons, Vassar Oaks, a housing complex, and the Lutheran Home on Route 44.
‘‘We approached contractors and other businesses’’ for bribes, Paroli told the judge.
Friday’s plea may be Paroli’s political obituary, but the investigation took its toll in the personal lives of many ensnared by the probe.
Raucci committed suicide in 1997, after investigators confronted him about his role in the scandal.
Andros tried to take his own life last Dec. 29 after police came to his Hyde Park home to search it in connection with the Oct. 28 murder of former town personnel director Susan Fassett.
Andros and Greene County resident Dawn Silvernail have each been charged with second-degree murder in Fassett’s death.
Authorities have not linked the corruption investigation to Fassett’s murder, but court papers filed in connection with the murder case indicate the probe was weighing heavily on Andros’ mind in the weeks before Fassett’s death.
Andros still faces sentencing in his federal case, as does Knapp. Each faces a maximum of five years in jail and fines of up to $250,000.
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