Prison for Paroli Sr.

By Michael Valkys
Poughkeepsie Journal

Lee Ferris/Poughkeepsie Journal
Former Dutchess County Republican Chairman William Paroli Sr. walks out of the Federal Court in White Plains with his wife, Betty, on right, and family members following his sentencing on Friday.

WHITE PLAINS — In what is likely one of the final chapters in the biggest political scandal in recent Dutchess County history, a tearful William Paroli Sr. was sentenced Friday to 21 months in federal prison for his role in a six-year scheme to shake down contractors in the Town of Poughkeepsie.

The sentence was handed down by federal Judge Barrington Parker Jr. during a 40-minute proceeding inside the sixth-floor courtroom.

The sentence was at the top end of a 15- to 21-month deal worked out between Paroli and the U.S. Attorney’s Office. Paroli, who had served as the Republican elections commissioner and as chairman of the county and Town of Poughkeepsie Republican committees, pleaded guilty in February to one count of conspiracy to commit extortion.

He had been charged with 19 counts before the deal was cut. He could have faced 220 years behind bars if convicted of all the charges at trial.

Parker chastised the former political boss for his actions in the scandal that rocked area politics and led to Democratic gains in the town and elsewhere.

‘‘The lesson in this matter is, ultimately, you sold out the citizens of Poughkeepsie, whom you were obligated to serve,’’ Parker told Paroli after handing down the sentence.

Paroli in tears

Paroli, slumping somewhat following a recent fall off his tractor left him with a torn rotator cuff, addressed the court through sobs, as his family sat in the second row behind the defense table.

‘‘I apologize to my family for the embarrassment I caused them,’’ Paroli told Parker when asked if he had anything to say. ‘‘Thank you.’’

Parker also ordered Paroli to pay $19,300 in restitution to the Town of Poughkeepsie, where Paroli used his position as local GOP chairman to have work performed at his home. That work was later billed to the town. Parker also fined Paroli $5,000. The money must be paid within 120 days of Paroli’s release from prison.

Parker ordered Paroli to surrender Aug. 21 to begin his sentence, which will likely be served in a federal prison in New Jersey. What prison has not been decided.

Parker declined to order Paroli to perform community service after his release, one of the provisions of the government’s deal. Parker also did not prohibit Paroli from again taking part in partisan politics, which the government had also included in the plea bargain.

7 others implicated

Paroli was the main target of a three-year probe by the FBI and the state Commission of Investigation into corruption in the Town of Poughkeepsie. The investigation implicated seven others, and five people were eventually convicted on corruption charges.

By the time Paroli pleaded guilty in February, the town’s water, assessing, legal and building departments had all been linked to the corruption scheme in some way.

The investigation first came to light in October of 1997 when the FBI joined the search for former town assessor Basil ‘‘Bill’’ Raucci, who had been missing. They eventually found his body in the Hudson River and the death was ruled a suicide by state authorities, who conducted the autopsy.

It was later revealed that Raucci was Paroli’s right-hand man in the scheme to shake down contractors. Investigators confronted Raucci about his role in the scandal and asked him to cooperate. He disappeared the next day.

With Raucci’s death, investigators were forced to rely on the other key player in the scheme, former town water superintendent Fred Andros. Andros also acted as a bag man by delivering cash bribes to Paroli at his county elections office.

Andros pleaded guilty to one count of conspiracy the day after Paroli’s arrest and was expected to be the government’s key witness against the political leader.

But the government’s hopes were dashed in December of last year when Andros shot himself as state police came to his home in connection with another criminal case — the October shooting death of former town employee Susan Fassett.

Andros recovered from his injuries, but his days as a government witness were over. He was charged with second-degree murder and conspiracy in the death of Fassett, a 48-year-old mother gunned down as she left church choir practice in Pleasant Valley.

Greene County resident Dawn Silvernail pleaded guilty in March to second-degree murder and admitted in court that she shot Fassett numerous times.

Silvernail has said she was pressured by Andros to kill Fassett. Silvernail told authorities Andros told her that Fassett, the town’s personnel assistant, was going to blow his deal with federal prosecutors.

But the U.S. Attorney’s Office has since said Fassett was not an informant or witness in its investigation.

Silvernail cut a deal with Dutchess County prosecutors for a sentence of no more than 18 years in prison in exchange for testifying against Andros at his upcoming trial.

Court papers indicate Silvernail, Fassett and Andros had a sexual relationship.

Andros was sentenced last month to 33 months in prison for his role in the scandal. He faces 25 years to life on the murder charge.

With Andros in jail on a murder charge, authorities in February began hauling other town employees into court.

Former town Attorney Frank Redl cut a deal that could eventually exonerate him of any wrongdoing, after he was charged with conspiracy to obstruct justice for lying to a grand jury.

The next day former town water maintenance supervisor George Knapp pleaded guilty to one count of conspiracy, admitting that he falsified records of town employees who were performing work at Paroli’s home.

With witnesses lining up against him, the government pressing its case and his health in decline, Paroli traveled to White Plains two days later and entered his guilty plea.

Friday’s sentencing came after several postponements as Parker reviewed a pre-sentencing report in Paroli’s case.

Paroli attorney Andrew Rubin asked Parker to be lenient toward his client, noting Paroli’s age and health problems. Rubin said Paroli suffers from prostate cancer, ulcers and depression, for which he takes medication.

‘‘He’s 72 and not in the best of health,’’ Rubin told the judge. ‘‘I think any incarceration is significant.’’

Rubin also asked the judge to take into account Paroli’s years of public service, noting his career as a police officer and investigator for the county public defender’s office — and not focus solely on his role in the corruption scheme.

‘‘There’s a lot of good also,’’ Rubin said.

Rubin went on to say that Paroli, who resigned his GOP chairmanships following his arrest in May of 1999, and later stepped down from his paid county elections post, had already suffered from the scandal he helped create.

‘‘He has suffered the consequences of his actions already,’’ Rubin said. ‘‘He has certainly lost whatever power he had. ... He has been disgraced. He’s been humiliated and his family has been humiliated,’’ Rubin said. ‘‘I ask that your honor would show as much compassion as possible.’’

But Parker was apparently not swayed by Rubin’s plea; he sentenced Paroli to the highest amount of time under the deal with authorities.

Parker said he took Paroli’s age and condition into account in handing down the sentence.

‘‘Had you not had that combination ... I would have dealt with you substantially more harshly,’’ Parker told Paroli.

‘‘I would like to thank you for your understanding and your compassion,’’ Paroli told the judge.

Parker said there was no need for the statement and court was adjourned.

Paroli left the courtroom with family members and declined comment after the sentencing.

Assistant U.S. Attorneys Cari Robinson and Mark Godsey also declined to comment on the sentencing.

Another Paroli attorney, Gerald Vergilis, issued a prepared statement.

‘‘I recognize the impact this investigation has had on the political structure in Dutchess County and the impact it has had on the people of our county,’’ Vergilis said. ‘‘But it is now time to close this chapter. Let the wounds heal. This man, his wife, his son, his daughter, his grandchildren, his family have all suffered enough. He is now paying the price ... Please let them get on with their lives so that, God willing, he will be allowed more time on this earth to write a better closing chapter to his life.’’

Authorities say the investigation that began three years ago after a Florida developer tipped off the FBI about payoffs to town officials is ongoing.

Knapp faces a maximum of five years in jail and fines of up to $250,000 when he is sentenced later this month.

Andrew Ceroni, a retired Hyde Park quarry salesman, also remains free pending sentencing after pleading guilty to perjury and conspiracy to commit extortion charges stemming from his efforts to solicit payoffs from contractors.

The perjury charge carries a maximum of five years in prison and fines up to $250,000. The extortion charge carries a maximum of 20 years in jail and fines up to $250,000.

Your participation, suggestions and opinions on all matters will be welcomed, and only by your request, will your correspondence be published on this web site anonymously.

Please contact the Justice Team with any information regarding any matter, by CLICKING HERE or E-Mail address: Administrator@DutchessCountyJusticeTeam2003.us or telephone (845) 454-3036. (All information will be kept confidential and your protection is guaranteed)