A federal grand jury indicted New York State Senator Thomas W. Libous for making false statements to the FBI in connection with an investigation about payments he allegedly had a Albany lobbying firm funnel to his son, officials announced Tuesday.
Libous’s son, Matthew Libous, an attorney, was also separately charged with tax crimes, including his failure to identify the source of payments he received from the lobbying firm, officials said.
“As alleged, rather than serve the public he took an oath to serve, Senator Libous used his political position to garner favorable treatment for himself and his son. Lying to FBI Agents is a serious offense and his alleged criminal conduct is an injustice to the community he represents,” Assistant FBI Director George Venizelos said. “The investigation and indictment of Senator Libous demonstrates the FBI’s ongoing commitment to weed out public corruption at all levels of government and bring to justice those who betray the public’s trust.”
In remarks to reporters after his arraignment in White Plains, the New York Times reported that Thomas Libous said he had done nothing wrong and questioned whether the prosecution had been timed with his bid for re-election in November.
“I am innocent from all these charges,” Mr. Libous said. “It’s very disappointing and we are going to fight them.”
Asked about his son, he said, “I love my son, and he, too, is innocent and will fight these charges.
According to the allegations in the indictment:
A federal grand jury in White Plains was investigating allegations that Thomas Libous, a Republican, had obtained a job for a family member at a Westchester law firm in exchange for a promise to refer business to the firm and had arranged for an Albany lobbying firm that regularly lobbied him to secretly pay the law firm $50,000 per year to defray the cost of Libous’s son’s salary and lease of a Range Rover.
The lobbying firm specialized in transportation issues and Thomas Libous served as the chairman of the Senate’s Transportation Committee at the time. The indictment further alleges that Thomas Libous told a partner of the Westchester law firm that the firm would have to “build a new wing” to accommodate the business he would refer to it if it hired his son.
The FBI interviewed Thomas Libous on June 24, 2010, as part of the grand jury’s investigation.
According to the Indictment, Thomas Libous made the following false statements to the agents during the interview:
- He could not recall how his son began to work at the Westchester law firm
- No deals were made to get his son the job at the Law Firm
- He was not aware that the lobbying firm had paid any part of his son’s salary at the Law Firm
- He never promised to refer work to the Law Firm
- He was not involved in his son’s decision to work at the law firm
- He had no business or personal relationship with the law firm
- He did not know of any relationship between the lobbying firm and the law firm
“As alleged, Thomas Libous took advantage of his position as Senator and Chairman of the Transportation Committee by corruptly causing lobbyists, who wanted Libous’s influence to benefit their clients, to funnel money through a law firm to his son where Libous has gotten his son a position,” Manhattan U.S. Attorney Preet Bharara said. “He then tried to cover up his corrupt conduct by lying to FBI Agents about his knowledge of his son’s arrangement with the firm, as the Indictment describes. Public servants should serve the public first, not themselves and their families. This office will continue to pursue elected officials who attempt to take corrupt advantage of their positions.”
Thomas Libous, 61, of Binghamton, New York, faces up five years in prison.
He is presumed innocent until proven guilty.
Also a second Indictment, returned by a grand jury sitting in White Plains, charges Matthew Libous, 32, with obstructing the IRS in its administration of the tax laws and subscribing to false tax returns. Matthew Libous works at the Westchester law firm.