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Gillibrand's Family Tie To Bruno Probe

Last Friday, New York governor David Paterson announced that he had picked Rep. Kirsten Gillibrand to fill Hillary Clinton's Senate seat. That same day, Joe Bruno, the powerful GOP former New York state Senate leader, was indicted on corruption charges.

What's the connection? It turns out that, though Bruno and Gillibrand are from different parties, that indictment could end up bringing some unwanted publicity to New York's new senator. That's because, though it's remained largely under the press's radar, a business deal between Bruno and Gillibrand's father, Doug Rutnik, was a partial focus of the federal probe that culminated with Friday's indictment.

Let's back up:

By most accounts, Rutnik, a well-connected Albany Republican lobbyist and power-broker, has been the prime architect and fund-raiser for Gillibrand's political career.

Rutnik is tight with just about every powerful Republican in the state, including former governor George Pataki, and former senator Al D'Amato -- in whose office Gillibrand got her start as an intern, before running for Congress as a Democrat.

Rutnik is also close with Bruno. In fact, as the Albany Times-Union (via Nexis) has reported, in the 1990s, Rutnik and another lobbyist, James Featherstonhaugh, bought hundreds of acres of isolated swampland in New York's Rensselaer County, which they planned to develop. Bruno and his brother ultimately invested in the venture, known as the First Grafton Corporation.

Bruno's son Kenneth Bruno, and his girlfriend Theresa Russo, both of whom were lobbyists at the time, bought parcels of the land, as did the wife of Jared Abbruzzese, a local businessman and friend of Joe Bruno who has received hundreds of thousands of dollars in state grants approved by the former Senate leader.

But the venture turned out to be a bust. Rutnik's corporation bulldozed the land and built a road without the necessary environmental permits, prompting federal and state lawsuits that delayed development.

And according to a court document obtained by the Times Union, (via Nexis) in his 2004 divorce proceedings, Kenneth Bruno was accused by his wife of hiding commissions on land deals related to First Grafton "brought to the table by his father Joseph L. Bruno."

In the end, Rutnik and Featherstonhaugh lost $100,000, Featherstonhaugh has said. First Grafton was dissolved in 2005.

And in December 2006, the Associated Press reported (via Nexis) that Featherstonhaugh had complied with a request from federal investigators looking into Bruno's business dealings to turn over First Grafton's records.

"I did receive a request for some records and those records have been provided," Mr. Featherstonhaugh told the AP.

It's not known what aspect of First Grafton the feds were interested in. And neither Rutnik, Featherstonhaugh, or First Grafton are named in Friday's indictment agasint Bruno -- though Abbruzzese is central to it.

Still, the fact that the prime architect of the career of New York's new senator has ties to the state's indicted former Senate leader -- and specifically, that the two teamed up on a business deal that has attracted scrutiny from federal investigators -- deserves more attention that it's yet gotten.

And it's worth asking whether Paterson considered the connection before he named Gillibrand.


7 Comments

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Can you spell "Grafton" without "Graft"?

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Simply put, I interpret the piece to read that it works the same way in New York that it does in Illinois & Texas.

As sick as I am of hearing Blago's cowboy story, I'm beginning to think that the only way that the American people will ever get their country back IS through dogmatic justice.

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Somehow Blago coming so close on the heels of Ryan makes me wonder if even that will get us our country back. There seems to always be someone waiting in the wings who's got that bought-and-paid-for edge.

This information proves nothing, but I got a total Blagojevich vibe from Patterson throughout the whole process.

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As a NY resident for some reason I have no problem with Gillibrand. I've watched her. I know her record. I can't explain it.

But Bruno is as crooked as the day is long. Any connection between the two gives me great pause.

-AF
Andrew Sullivan Is A Fraud

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As a NY resident for some reason I have no problem with Gillibrand. I've watched her. I know her record. I can't explain it.

But Bruno is as crooked as the day is long. Any connection between the two gives me great pause.

-AF

I agree with much you. I worked for her campaign and met her a few times and at first I was super happy that she was a strong dem in a very, very, red area so I jumped on the bandwagon. But after a few conversations and meet and greets with her...the shine came off of her rather quickly for me. Ah, well, politics as usual I guess...

I honestly didn't know about her father and if I had known about him and his repug ties, I probably would not have invested so much of my time and energy in her. I will probably back Maloney now for sen.

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or perhaps she is a Republican and realized the only way to win in NY was to be a "democrat!"

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Her appointment from at first miffed me about one thing: that is apparent in this article: the large amounts of campaign money as a first term House Rep. that she and her father raised. Nearly $7 million, of which most was from outside her 20th CD and New York State -- that is disturbing.

Now with this hanging over her father, he being her #1 fundraiser and now with his ties to Bruno, really raise questions ... But, we shall see.

The Fed probe of Bruno is warranted, but being tied to Gillibrand's family (her fund raising lobbyist father) is a bit unnerving.

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