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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`------------------------------x
`UNITED STATES OF AMERICA,
`
` v. 16 CR 776 (VEC)
`
`JOSEPH PERCOCO, PETER
`GALBRAITH KELLY, JR.,
`STEVEN AIELLO, JOSEPH GERARDI,
`
` Defendants. JURY TRIAL
`
`------------------------------x
`
` New York, N.Y.
` February 7, 2018
` 10:00 a.m.
`
`
`Before:
`
`
`HON. VALERIE E. CAPRONI,
`
`
` District Judge
`
`
`APPEARANCES
`
`
`GEOFFREY S. BERMAN,
` Interim United States Attorney for the
` Southern District of New York
`JANIS ECHENBERG
`ROBERT L. BOONE
`DAVID ZHOU
`MATTHEW PODOLSKY
` Assistant United States Attorneys
`
`SCHULTE ROTH & ZABEL LLP
` Attorneys for Defendant Joseph Percoco
`BY: BARRY A. BOHRER
` MICHAEL L. YAEGER
` ANDREW D. GLADSTEIN
`
`LANKLER SIFFERT & WOHL LLP
` Attorneys for Defendant Peter Galbraith Kelly, Jr.
`BY: DANIEL M. GITNER
` JUN XIANG
` RACHEL S. BERKOWITZ
`
`
` SOUTHERN DISTRICT REPORTERS, P.C.
` (212) 805-0300
`
`
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`------------------------------x
`UNITED STATES OF AMERICA,
`
` v. 16 CR 776 (VEC)
`
`JOSEPH PERCOCO, PETER
`GALBRAITH KELLY, JR.,
`STEVEN AIELLO, JOSEPH GERARDI,
`
` Defendants. JURY TRIAL
`
`------------------------------x
`
` New York, N.Y.
` February 7, 2018
` 10:00 a.m.
`
`
`Before:
`
`
`HON. VALERIE E. CAPRONI,
`
`
` District Judge
`
`
`APPEARANCES
`
`
`GEOFFREY S. BERMAN,
` Interim United States Attorney for the
` Southern District of New York
`JANIS ECHENBERG
`ROBERT L. BOONE
`DAVID ZHOU
`MATTHEW PODOLSKY
` Assistant United States Attorneys
`
`SCHULTE ROTH & ZABEL LLP
` Attorneys for Defendant Joseph Percoco
`BY: BARRY A. BOHRER
` MICHAEL L. YAEGER
` ANDREW D. GLADSTEIN
`
`LANKLER SIFFERT & WOHL LLP
` Attorneys for Defendant Peter Galbraith Kelly, Jr.
`BY: DANIEL M. GITNER
` JUN XIANG
` RACHEL S. BERKOWITZ
`
`
` SOUTHERN DISTRICT REPORTERS, P.C.
` (212) 805-0300
`
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 2 of 305
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`APPEARANCES (cont'd)
`
`
`O'CONNELL & ARONOWITZ, P.C.
` Attorneys for Defendant Steven Aiello
`BY: STEPHEN R. COFFEY
` SCOTT W. ISEMAN
`
`WALDEN MACHT & HARAN LLP
` Attorneys for Defendant Joseph Gerardi
`BY: MILTON L. WILLIAMS, JR.
` AVNI P. PATEL
`
`ALSO PRESENT: DeLEASSA PENLAND, Special Agent USAO
` AASHNA RAO, Paralegal Specialist, USAO
` SYLVIA LEE, Paralegal Specialist, USAO
`
` SOUTHERN DISTRICT REPORTERS, P.C.
` (212) 805-0300
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 3 of 305
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`(Trial resumed; jury not present)
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`THE COURT: Good morning.
`
`While I am signing on, Mr. Coffey, you sent me an
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`e-mail yesterday or a letter that related to Mr. Morvillo.
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`Any reason that should not have been filed on the
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`public record?
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`MR. COFFEY: No.
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`THE COURT: Please take care of doing that.
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`MR. COFFEY: All right. Thanks.
`
`THE COURT: Anything else that we need to talk about
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`before we get our jury out?
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`We are missing one juror, but he is on his way up from
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`downstairs.
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`MS. ECHENBERG: One quick clarification, your Honor.
`
`Yesterday at the end of court, you directed the
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`defense that if they intend to frame a question based on
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`information that they learn from e-mails between Mr. Howe and
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`his spouse, they must alert you before they do it.
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`I would actually ask that the direction be a little
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`broader. If they intend to ask a question that in any way
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`implicates a communication between Mr. Howe and his wife, that
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`they alert you beforehand of that so me and Mr. Morvillo have a
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`chance to address that.
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`THE COURT: I'm not quite sure what you mean by that.
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`MS. ECHENBERG: I want to make sure, your statement
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` SOUTHERN DISTRICT REPORTERS, P.C.
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`just said if you intend to frame a question based on what they
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`learned on e-mails between Mr. Howe and his wife, but there was
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`a discussion, I believe, with Mr. Coffey that he wants to ask
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`how are all the ways you lied, what are all the ways that you
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`lied to your wife. I think that implicates privilege.
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`If he is asking a question that calls for Mr. Howe to
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`discuss communications with his wife, that we should discuss
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`that. Mr. Howe, if asked, if he has ever misled his wife will
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`say yes. If he is asked if he altered e-mails with his wife,
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`he will say. But if the question calls for the substance of
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`the communications between Mr. Howe and his wife, I know
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`Mr. Morvillo wants to address that with the court and we would
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`object.
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`THE COURT: Is that the plan, Mr. Coffey?
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`MR. COFFEY: Judge, as I indicated to you yesterday
`
`very clear, I won't ask any questions at all without conferring
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`with you first and letting you know what I would intend to do.
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`I said that yesterday and I repeat that today.
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`THE COURT: Nobody is going to go into communications
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`with Mr. Howe and his wife beyond the two questions that we
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`talked about, which is did you alter e-mails, did you lie to
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`your wife, calling for communications with his spouse, without
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`alerting me first.
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`MS. ECHENBERG: Thank you, your Honor.
`
`THE COURT: Anything further?
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 5 of 305
`I27SPER1
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`Let's see if they're ready.
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`Can we get the witness in.
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`Any update on how long the rest of his direct is?
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`MS. ECHENBERG: It will be very brief.
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`Should we go ahead and bring up the document that we
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`are going to begin with?
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`THE COURT: Sure.
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`COURT SECURITY OFFICER: He just walked in, your
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`Honor.
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` TODD HOWE, resumed.
`
`MS. ECHENBERG: While we are waiting, I can note the
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`two exhibits that I intend to admit in this last section, if
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`the defense wants to take a look at those.
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`THE COURT: OK.
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`MS. ECHENBERG: Government Exhibits 629 and 611.
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`THE COURT: Any objection to those?
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`MR. COFFEY: Just looking, Judge.
`
`(Continued on next page)
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` SOUTHERN DISTRICT REPORTERS, P.C.
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 6 of 305
`I27sPER1 Howe - Direct
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`(Jury present)
`
`THE COURT: Good morning, everybody.
`
`Mr. Howe, you're still under oath.
`
`Ms. Echenberg.
`
`MS. ECHENBERG: Thank you, your Honor.
`
`THE COURT: You indicated you had two exhibits?
`
`MS. ECHENBERG: Yes.
`
`THE COURT: 629 and 611.
`
`MS. ECHENBERG: 629 and 611.
`
`MR. WILLIAMS: No objection.
`
`THE COURT: 629 and 611 are received.
`
`(Government's Exhibits 629 and 611 received in
`
`evidence)
`
`DIRECT EXAMINATION
`
`BY MS. ECHENBERG:
`
`Q. Mr. Howe, when we left off yesterday, we were talking about
`
`the exhibit that is on the screen, Government Exhibit 586. Do
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`you remember that?
`
`A. Yes, I do.
`
`Q. If we could blow up the bottom two e-mails. I'm sorry, on
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`the page we were on, the 11:49 a.m., down to the bottom.
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`Do you remember we went over Mr. Gerardi's e-mail to
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`you copying Steve Aiello asking if there was anything with J.P.
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`that Fayle is pressing to resolve the issue and we don't want
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`to be in jeopardy of losing the ESD funding?
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` SOUTHERN DISTRICT REPORTERS, P.C.
` (212) 805-0300
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 7 of 305
`I27sPER1 Howe - Direct
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`A. Yes, I do.
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`Q. You replied you just hung up with J.P. and then Fayle is
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`being informed as I type that ESD headquarters in NYC does not
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`concur on his read on this. J.P. said we should stand by and
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`let message sink in over next several hours and then look for
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`ESD to reach back out to you with a "different" perspective.
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`What did you understand, again, the substance of what
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`you wrote in this e-mail is based on what?
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`A. I had had a phone call with Joe Percoco and Joe said that
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`he had called ESD. I'm not exactly sure who he spoke to at
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`ESD. He basically told them there was no need for this labor
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`peace agreement and that we should just sit tight and the COR
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`folks would hear from ESD.
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`Q. We can move on now to Government Exhibit 590, which is in
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`evidence. If we could start with the bottom e-mail.
`
`Looking back in your binder just for a moment at
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`Government Exhibit 586, what is the date of that e-mail?
`
`THE COURT: Is that the one we were just looking at?
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`MS. ECHENBERG: Just looking at, 586.
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`A. I believe it was 12/4.
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`Q. Can you take a look at it and read the date on the e-mail?
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`A. It was 586?
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`Q. 586, yes.
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`A. It was 12/3/2014.
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`Q. What is the date of this e-mail?
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 8 of 305
`I27sPER1 Howe - Direct
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`A. 12/4/2014.
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`Q. Go ahead and read Joe Gerardi's e-mail to you.
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`A. Hello, Todd. I wanted to let you know I spoke to Jim Fayle
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`this morning --
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`THE COURT: Slow down. Remember the court reporter is
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`going to need to get it.
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`MS. ECHENBERG: You can just read the first paragraph.
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`A. OK.
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`I wanted to let you know that I spoke with Jim Fayle
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`this morning and he advised that they have convinced ESD that
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`the hospitality portion of the Syracuse Inner Harbor
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`development is relatively minor. Therefore, the ESD funds
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`awarded can be used to build the parking lot and infrastructure
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`contemplated without the need for an LPA.
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`Q. If you can read the last line of that e-mail.
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`A. Thank you and J.P. for your efforts.
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`Q. We can work our way up that e-mail. If you can highlight
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`from -- blow out from the 11:43 a.m. e-mail down to -- yes,
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`right there.
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`How do you respond to Mr. Gerardi's e-mail letting you
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`know that there is no longer a need for an LPA?
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`A. Great, thanks.
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`Q. What is Steve Aiello's response?
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`A. They convinced ESD? Laughable.
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`Q. How do you respond?
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 9 of 305
`I27sPER1 Howe - Direct
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`A. Amazing how Fayle rewrites history.
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`Q. If we can highlight, leaving that top e-mail on the screen,
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`the remainder of what is above. If we can scroll back up.
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`So you say, Amazing how Fayle rewrites history. And
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`what does Steve Aiello say?
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`A. Totally amazing. That's why Fayle looks like Santa. He
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`underestimates the power of T.H. and J.P.
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`Q. What is your response?
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`A. Not me, J.P.
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`Q. If we can scroll down just a little to see who the next
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`e-mail is from.
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`What does Steve Aiello say?
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`A. You connected us to J.P. Take some credit. Most clients
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`forget your contribution behind the scene.
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`Q. Let's walk through that e-mail. If you could show the
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`whole e-mail on the screen, please.
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`What did you understand Steve Aiello to mean by, They
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`convinced ESD, laughable?
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`A. I understood that -- I mean, Steve, I think, is being
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`sarcastic in the sense of saying that they convinced ESD, that
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`Jim -- what he was saying was that Jim Fayle convinced ESD was
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`laughable. It was Joe Percoco's phone call that changed this,
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`not Jim Fayle in convincing ESD.
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`Q. Why did you say, Amazing how Fayle rewrites history?
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`A. Because Jim Fayle was indicating over the past six months
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 10 of 305
`I27sPER1 Howe - Direct
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`2526
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`how this was a problem and that it couldn't be resolved, but
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`then once Percoco made the call to ESD headquarters and told
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`them not to do it, Fayle then calls Gerardi or e-mails Gerardi
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`and says, you know, he -- as in Jim Fayle, the regional
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`director -- convinces headquarters that this wasn't necessary.
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`Q. When Steve Aiello said he underestimates the power of T.H.,
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`J.P., you wrote back, Not me, J.P. What did you mean?
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`A. I mean, I was basically saying to Steve, I'm not the one
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`that picked up the phone and called ESD and told them this
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`wasn't necessary, that Joe was, Percoco was.
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`Q. Let's move on to Government Exhibit 591. If we can just
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`show, if we can highlight the top three e-mails.
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`Do you see that this is part of the same string we
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`just discussed, they convinced ESD, amazing how Fayle rewrites
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`history? Do you see that?
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`A. Yes, I do.
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`Q. If you can read Joe Gerardi's response?
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`A. Agreed. S-head.
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`Q. What did you understand him to mean?
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`A. Shithead.
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`Q. Who did you understand him to be referring to?
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`A. Jim Fayle.
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`Q. You can take that down.
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`Mr. Howe, you mentioned earlier in your testimony, I
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`believe on the first day, that one of the other things that
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 11 of 305
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`2527
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`Mr. Aiello wanted in exchange for the payments to Joe Percoco
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`was a raise for his son. Do you remember that?
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`MR. COFFEY: Object as leading and suggestive.
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`THE COURT: Sustained.
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`Rephrase the question.
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`BY MS. ECHENBERG:
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`Q. Mr. Howe, earlier in your testimony I had asked you if
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`after Mr. Aiello and Mr. Gerardi made payments to Joe Percoco
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`through you, if either of them had asked for anything in
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`addition, and one of the things you mentioned was a raise for
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`Mr. Aiello's son. Do you remember that?
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`A. Yes, I do.
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`MR. COFFEY: I object as misstating the evidence.
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`THE COURT: Overruled. It is the jury's recollection
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`that governs.
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`Q. At the time that Mr. Aiello made that request, what, if
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`any, connection did Joe Percoco have to Steven Aiello's son?
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`Just to be clear, what's the name of the son that
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`we're talking about?
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`A. Steve Aiello Junior.
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`Q. What, if any, connection did Joe Percoco have to him?
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`A. He, I believe, was Steve Aiello Junior's supervisor at that
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`point.
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`Q. Who was?
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`A. Joe Percoco.
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`Q. In what capacity?
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`A. In the governor's office at that point.
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`Q. Had they ever worked together before?
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`A. Yes. Steve Junior had worked on the re-election campaign
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`in 2014 for Joe Percoco, he was his assistant in the campaign.
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`And then, I believe, when Steve Aiello Junior returned to the
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`governor's office after the election in 2014, he was in the
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`governor's office, but then when Joe Percoco returned somewhere
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`in the end of December of 2014, Steve Aiello Junior was working
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`for Joe, if I recall correctly.
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`Q. If we can bring up Government Exhibit 631, which is in
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`evidence.
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`Who is this an e-mail between it between myself and
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`Joe Percoco?
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`What is the date of this e-mail?
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`A. This is 9/25/2015.
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`Q. If you could read the e-mail, please.
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`A. Herb, see the screenshot below. I told Steve just now that
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`I spoke to you and you were going to address the salary issue
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`today and you were on the -- I'm not sure of --
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`Q. Let me blow this --
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`A. -- on the 4.4 million to get out ASAP within a few days and
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`working on bigger money issues as well.
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`Please read this below -- as Steve Senior wanted you
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`to know the chronology.
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`Stevie Junior leaves state service last year at 54K to
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`campaign. At campaign, no pay, no benefits. At same time he
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`completes his master's degree at Columbia. Finishes campaign,
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`goes back to HCR, and gets a 3K cost of living increase so then
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`he's making 57K. Then he gets put in a permanent line at HCR
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`and they cut his pay to 56K, a cut of a thousand dollars. He
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`now has his master's, which he didn't have when he left HCR to
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`go to campaign.
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`Herb, this is what Steve Senior is telling me, which I
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`believe to be at the root true. Try to get him to 65K or
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`above. He has his master's. That's a significant difference
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`now.
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`Q. When you say, Try to get him to 65K or above, what are you
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`requesting?
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`A. That Stevie Junior gets a raise to at least 65K, given he
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`had just completed his or he completed his master's degree,
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`which he didn't have when he left the state for the campaign.
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`Q. Mr. Howe, what, if anything, are you asking Mr. Percoco to
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`do?
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`A. To get Steve -- to give him a raise. Percoco to give
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`Stevie Junior a raise.
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`Q. How did you understand Joe Percoco could do that?
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`A. Joe oversaw many of the personnel issues in the governor's
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`office at that point and he had the ability to give out raises,
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`when necessary.
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`Q. Had you ever had any conversations with Joe Percoco about
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`Stevie Junior's salary prior to this?
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`A. I believe I had -- yes, I had spoken to Joe after the
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`campaign in 2014 about this. Steve had -- Steve Senior had
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`raised this with me and I raised it with Joe and Joe indicated
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`that he was going to work on it.
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`Q. When you testified at the beginning of your testimony and
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`you spoke about a raise for Steven Aiello Junior, I believe you
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`referenced the time period as being in 2014. Do you recall
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`that?
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`A. Yes, I did.
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`Q. Can you look at the date on this e-mail?
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`A. This was 9/25 of '15.
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`Q. So were there multiple times that this issue came up?
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`MR. COFFEY: Object as leading.
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`THE COURT: Overruled.
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`A. It had come up -- my recollection is it had come up after
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`the campaign in 2014, and Steve Junior had gone back to the
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`state --
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`Q. We can take the e-mail down for a moment.
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`A. -- that Steve, Steve Senior had raised it with me at that
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`point, but for whatever reason, it surfaced again here in an
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`e-mail.
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`Q. If we can bring up now page five of that same exhibit,
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`Government Exhibit 631.
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`I27sPER1 Howe - Direct
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`2531
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`What is this?
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`If you want to look at the original document so you
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`can look at all the pages, it's in your binder, Government
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`Exhibit 631.
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`A. Yes.
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`Q. What is this?
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`A. This is a text message, I believe, from Steve Aiello to
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`myself.
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`Q. What did you do with this text message?
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`A. I sent this on to Percoco.
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`Q. Was that part of the e-mail that we just reviewed?
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`A. Yes.
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`Q. If you can read that text, please.
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`A. I just got a call from Stevie. He got his paperwork for
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`his raise. He went from 54,000 a year to 56,000. We have
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`waited patiently months for money for these projects with NANO.
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`The administration has embarrassed me in my community as a slow
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`pay. Completely tarnished our reputation. We are considered a
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`slow pay. Stevie bust his ass, loyal as the day is long. I
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`have been loyal as the day is long. They insult us like this.
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`I'm finished. Everybody else gets what they need and want. I
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`keep giving. It's a sad statement.
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`Q. If we can bring up now Government Exhibit 629, which I
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`believe has been admitted just before we started.
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`THE COURT: Yes.
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 16 of 305
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`Q. Mr. Howe, first, looking at the date and looking at the
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`date of Government Exhibit 631, can you compare those?
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`A. They're the same day, 9/25/2015.
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`Q. Can you read the bottom e-mail?
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`A. Stevie Junior issue is resolved. Will take effect
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`immediately. Spoke to him and all is good.
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`Q. Who is that e-mail from?
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`A. It is from Joe Percoco to myself.
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`Q. What is Steve Aiello's response?
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`A. Thanks, Todd. I'm sure you and Joe boosted his morale. I
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`wouldn't have bothered you except that he was really down.
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`Q. What is your response?
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`A. Shoot Joe a note at his personal e-mail address. Thank
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`him. He would appreciate it, as no one ever says thanks.
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`Q. Why did you want Steve Aiello to send a note to Joe
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`Percoco?
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`A. I wanted -- I thought it was appropriate that Steve Senior
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`send Percoco a note thanking him for this since Percoco had
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`gotten his son a raise.
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`Q. Before we move on to the next topic, I want to move back to
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`the labor peace agreement for a moment.
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`When you testified that the labor peace agreement was
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`reversed, what was the decision, that they needed a labor peace
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`agreement or that they didn't?
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`A. That they did not need a labor peace agreement.
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`Q. What is your understanding of what labor, the labor
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`community's position was on whether a labor peace agreement was
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`needed or not?
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`MR. COFFEY: Object, unless he gives the basis for the
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`understanding or his belief.
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`THE COURT: Establish a foundation.
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`Q. What is a labor peace agreement in general terms?
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`A. A labor peace agreement is an agreement between, in this
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`case, COR and a labor union in Syracuse. A labor peace
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`agreement is federally mandated in the sense that it requires
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`both parties to waive certain elements of the agreement.
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`Basically what it does is it allows organized labor to work
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`with an institution, such as COR, on a project at an
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`agreed-upon rate for wages and so on, that is guided by the
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`federal guidelines.
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`So if COR were to have a labor peace agreement in
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`place, the cost of the project would go up significantly --
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`MR. COFFEY: Object.
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`THE COURT: This is your understanding of what a labor
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`peace agreement is?
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`THE WITNESS: Yes, it is.
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`THE COURT: Overruled.
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`A. The cost of the project to the developer would go up
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`significantly, as well as it would cause a long and lengthy
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`delay to get the project started, which in this particular
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`instance, on this project, COR wanted to get going ASAP. The
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`labor peace agreement was in place. It would have taken months
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`to negotiate that, which would have, again, added to the cost
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`of the project.
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`Q. Having worked on this issue, what is your understanding of
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`what a labor union gets out of a labor peace agreement?
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`A. Labor union gets their members work. In this particular
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`instance on this project in Syracuse, they would be part of the
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`project, which in most instances, there was not -- these
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`projects that COR did were not labor -- did not work with
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`organized labor.
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`Q. Based on your interactions with Joe Percoco over the many
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`years you've known him, and in particular while he was in the
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`governor's office, what was your understanding of his view of
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`organized labor?
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`A. Joe was very supportive of organized labor, as the governor
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`was. The governor is a -- New York State is a strong labor
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`state, and the administration and the governor and Joe all are
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`very supportive of organized labor.
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`Q. Are you familiar with someone named Andrew Ball?
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`A. Yes, I am.
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`Q. Who is that?
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`A. Andrew Ball worked in 2010 in the campaign for Andrew Cuomo
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`when he was first running for office as governor. He was a
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`staffer in the campaign, and then when the governor won, he
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`2535
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`became a staffer in the governor's office.
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`Q. Can you did you ever ask Joe Percoco to do anything in
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`connection with Andrew Ball?
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`A. I did. Andrew Ball -- Andrew Ball and Steve Aiello Junior
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`at one point were roommates and Andrew Ball, in the governor's
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`office --
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`MR. BOHRER: Objection, hearsay.
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`THE COURT: Overruled.
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`A. Andrew Ball worked in the governor's office and had some
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`level of seniority over Stevie Aiello Junior. Andrew Ball
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`constantly taunted --
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`MR. BOHRER: Objection.
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`MR. COFFEY: Objection.
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`Q. Mr. Howe, if you could testify to your knowledge just based
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`on your conversations either with Steven Aiello Senior or Joe
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`Percoco?
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`A. Steve Aiello Senior said Andrew Ball was constantly
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`breaking Steve Aiello Junior's chops all the time at work.
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`Andrew Ball -- I talked to Percoco. I said, Hey, Joe, can you
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`get Ball to lay off Junior Aiello, he is making his life
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`miserable. Joe said that he would take care of it.
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`Q. Do you know what he did?
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`A. I don't recall exactly what he did. My recollection --
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`MR. BOHRER: Objection.
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`MR. COFFEY: Object.
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`2536
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`A. My recollection is --
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`THE COURT: Overruled.
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`A. My recollection is that Percoco had indicated he was going
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`to move Andrew Ball a floor down below in the next floor in the
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`governor's office so the two of them were on the same floor.
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`Q. If we can look at Government Exhibit 571, which is in
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`evidence. If we can highlight the bottom e-mail starting with
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`the bottom e-mail.
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`Do you see that is an e-mail from you to Steven Aiello
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`copying Joe Percoco?
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`A. Yes.
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`Q. If you can just read that e-mail?
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`A. Steve, spoke to Joe tonight regarding Stevie and Ball. Joe
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`is all over it and will address. All good.
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`Q. If we can look at the two e-mails above.
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`What does Percoco write into this chain?
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`A. Steve: As I told Todd, I have this covered. I think I
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`have a bit of clout left around here. Stevie did a great job
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`and you have been great to us as a true friend. I am a firm
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`believer in rewarding hard work. Stevie worked as hard as me
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`and that is a tough pace to keep up with if I say so myself.
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`All will be fine. Stevie will be taking the next step in his
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`growth with me. Thanks for everything. Talk soon. Joe.
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`Q. What is the date of this e-mail?
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`A. It is November 6 of 2014.
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`2537
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`Q. What is your understanding of when Joe Percoco returned
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`officially to the governor's office?
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`A. My recollection is December 15 of 2014.
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`Q. We can take that down.
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`Mr. Howe, when you testified on your first day of
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`testimony, you spoke about a third issue that you raised to Joe
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`Percoco on COR's behalf, the release of certain money. Do you
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`recall that?
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`A. Yes. That was in relation to the SUNY construction
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`projects that I referenced a day or so ago. The state hadn't
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`paid COR for their work, and Gerardi and Aiello asked if I
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`would get ahold of Percoco to get that money freed up so they
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`could be paid.
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`Q. Let's take a look now at Government Exhibit 609 which is in
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`evidence. If we can blow out the middle e-mail that starts
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`with Herb.
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`If you can read this e-mail, please. First of all,
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`who is this e-mail -- well, do you see this e-mail is from you
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`to Joe Percoco and copying Steve Aiello?
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`A. Yes, I do.
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`Q. What is the subject?
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`A. SORA vendor demanding payment.
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`Q. What is SORA?
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`A. SORA was one of those projects I just referenced, which was
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`a SUNY project in Syracuse that COR was building at that time.
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`Q. If you can read this e-mail, please.
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`A. Herb, hope you had a good weekend. Per our conversation
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`several days ago, could you hold a conference with DASNY
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`(Caroline) and myself. Steve A, Joe, and Carl Klemf (NANO) to
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`go over these ASAP this week, if your schedule permits. As we
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`discussed, COR is getting hit left and right by vendors who are
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`threatening to walk off the job, etc. Please let me know and
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`I'll work to get all of the above on the call. Thanks.
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`Q. If we can scroll up.
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`What is Joe Percoco's response?
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`A. OK. Let me find out who is the right person to talk to at
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`DASNY. Thanks.
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`Q. This e-mail is from Percoco to you and do you see Steve
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`Aiello is copied on this e-mail?
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`A. Yes, I do.
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`Q. If we can go now to Government Exhibit 611, which was
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`admitted this morning.
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`Do you see that the e-mail that we just reviewed, OK,
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`let me find out who the right person to talk to at DASNY is at
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`the bottom there?
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`A. Yes.
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`Q. Let's focus on the top of this chain. Ms. Lee, if you can
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`highlight from the top of the e-mail down to do a meeting.
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`Do you see the e-mail that says, Do a meeting on this
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`tomorrow with budget folks, which is where I am told this is
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`stuck from Percoco?
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`A. Yes.
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`Q. What is your response?
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`A. Herb, can you do a call with us? They aren't going to
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`listen to us.
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`Q. Who do you forward this chain to at the very top?
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`A. Forwarded it to Steve Aiello.
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`Q. Why do you forward it to Steve Aiello?
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`A. I wanted him to see that Percoco was addressing this
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`payment issue.
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`Q. What was your understanding of what Joe Percoco was doing?
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`A. He was meeting with the budget folks and talking to the
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`folks responsible for paying COR, was my understanding.
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`Q. Can we bring up Government Exhibit 613 now. If we can blow
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`up the top portion with the text.
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`What is the date of this e-mail?
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`A. 9/3/2015.
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`Q. If you can read the first e-mail from you to Joe Percoco.
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`A. Herb, how did you make out with budget on COR? Out here in
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`Syracuse and Steve is having a heart attack. Do you need a
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`call with the NANO folks to get budget anything?
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`Q. What did you mean, how did you make out with budget on COR?
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`A. It was my understanding, referenced in the previous e-mail,
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`that Percoco was calling the budget department about these COR
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`payments.
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`Case 1:16-cr-00776-VEC Document 561 Filed 03/23/18 Page 24 of 305
`I27sPER1 Howe - Direct
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`Q. For what purpose?
`
`A. To have them released so they could pay COR.
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`Q. What is Percoco's response?
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`A. No. Sit tight. Meeting is today.
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`Q. We can move on now to Government Exhibit 614 which is in
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`evidence.
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`What is the date of this e-mail communication?
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`A. This is September 4 of 2015.
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`Q. If we can start with the e-mail that you send to
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`Mr. Percoco. Can you read that?
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`A
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