New York — Two prominent Central New York developers may be headed to prison soon after losing their appeal in a federal corruption probe centered on bid-rigging in state government.
COR Development executives Steven Aiello and Joseph Gerardi had their wire fraud and conspiracy convictions from 2018 upheld by the U.S. 2nd Circuit Court of Appeals in a decision released Wednesday. Convictions against former SUNY Polytechnic Institute President Alain Kaloyeros and Buffalo Billion builder Louis Ciminelli were also upheld.
Gerardi and Aiello were convicted of working with Kaloyeros to tailor a request for proposals from a state-affiliated development corporation to ensure that COR Development would win work in the Syracuse area. Cor was later chosen to build a film studio and a high-tech factory at its business park in DeWitt, contracts that totaled more than $100 million.
For example, the state’s bid request contained a 15-year experience requirement which directly matched the experience of COR Development, the appellate court noted, as well as a requirement that the developer use a particular type of software (that COR Development used).
Ciminelli and Kaloyeros were rigging a similar bid process in Buffalo. Ciminelli’s firm, LPCiminelli, was chosen to build a $750 million factory for SolarCity in Buffalo.
The appellate court ruled that there was enough evidence to find all of the men guilty. It also ruled that U.S. District Judge Valerie Caproni, presiding over the trial, did not abuse her discretion in allowing challenged evidence and that she did not err in instructions to the jury.
The decision was written by 2nd Circuit Judge Richard J. Sullivan on behalf of a three-judge appeals panel.
Aiello was sentenced to three years in prison after his conviction in a New York City courtroom. Gerardi was sentenced to 2 1/2 years in prison. Those sentences had been delayed and the men remained free on bail during the appeal. Kaloyeros received the longest prison sentence at 3 1/2 years, while Ciminelli was sentenced to more than 2 years in prison.
It’s unclear when the men might begin their prison sentences following the appeal. The U.S. Court of Appeals is typically the final arbiter on most federal matters because the U.S. Supreme Court takes only 150 or so cases of the thousands of appellate requests each year.
Staff writer Douglass Dowty can be reached at ddowty@syracuse.com or 315-470-6070.