Consulting Fees and a Racehorse

The majority leader of a state senate also ran a private consulting business. Federal prosecutors alleged that an Albany businessman paid him about $440,000, disguised as monthly consulting fees routed through the businessman's companies and as payment for an interest in a racehorse that government evidence suggested was worth only a small fraction of the price. In return, they alleged, the leader took official actions benefiting the businessman: directing a $250,000 state grant, and later a $2.5 million grant, that helped a technology company in which the businessman held an interest, and recommending the businessman's partner for the state racing association's board. The leader said the consulting arrangements and the horse deal were legitimate private business, not bribes or kickbacks.