Court Enforcers Gave 41g to Their Guy

By Rich Calder
New York Post
June 5, 2005

City marshals shelled out more than $41,000 in campaign donations to Guy Velella during his final four years in office —— and the disgraced lawmaker was instrumental in passing a state law that made marshals richer, a Post investigation found.

Velella, who quit the state Senate last year after pleading guilty to pocketing $137,000 in bribes to rig contracts, was a strong ally of city marshals.

The Bronx Republican in 2003 introduced and helped push legislation through to significantly increase fees that marshals could charge in civil-court proceedings.

Nearly all of the city's 36 marshals donated money to Velella at some point between 2000 and 2004, with contributions ranging from $500 to $2,200.

"If there is a legislator trying to help the industry, you are going to try and help the legislator," said George Arzt, a spokesman for the New York City Marshals Association. He said marshals expected nothing in return for their largesse.

Velella declined to be interviewed.

His measure raised by $5 most fees charged in civil-court proceedings and allowed marshals and deputy sheriffs to raise fees for executing arrest orders, from $30 to $45. Unlike marshals, deputy sheriffs are city employees and don't get a cut of the debt and fees they collect.

Velella Freed After Making Return Trip to Rikers

By Sabrina Tavernise and Rachel Metz
New York Times
March 19, 2005

Finally finished with his off-again-on-again jail sentence, former State Senator Guy J. Velella arrived at his house yesterday and declared that he was glad to be home.

Mr. Velella, 60, was released from Rikers Island at 9:30 a.m., on the final day of a one-year sentence for bribery conspiracy. He spent 182 days in jail - about six months - a sentence shortened in part by his release last fall by a little-known mayoral panel.

Looking pale, Mr. Velella, who has prostate cancer, got out of the back seat of a blue sport utility vehicle outside his house in Morris Park, the Bronx, shortly after noon yesterday, and spoke briefly in a quiet voice to a throng of reporters.

When asked how he was feeling, Mr. Velella replied, "Good, thank you."

He was dressed in a gray button-down shirt, a black jacket and blue jeans, and was surrounded by about 10 friends and relatives. He said he had plans to go to the doctor to "get checked out on the cancer."

"It's good to be home," he said, before disappearing behind the varnished wooden front door to his two-story brick house on Seminole Avenue.

Mr. Velella's lawyer, Charles A. Stillman, described his client's health as "good," but said the details of his treatment were personal.

So ended Mr. Velella's journey in and out of jail, which began last June, when he was sentenced for conspiring to take bribes from people seeking to do business with the state. His release by the panel on Sept. 28, just three months into his sentence, drew accusations of favoritism. Mayor Michael R. Bloomberg, embarrassed by the ensuing political uproar, dismissed the panel's members and appointed new ones. That panel then ordered Mr. Velella back to jail.

His release began about 7:45 a.m., a Department of Correction official said. Jail officials checked his fingerprints, went over paperwork, and gave him back his clothes and other property, like money or jewelry.

He left the area under the radar of a herd of reporters by boarding a private van service that operates between the island and Queens, instead of the city's Q101 bus, said a city official who spoke on the condition of anonymity because he was not authorized to disclose the details.

The van dropped Mr. Velella in a place not designated for stopping, opposite a parking lot on the Queens side of the bridge to Rikers Island, and he scurried across the street into a waiting blue sport utility vehicle, which quickly sped away.

Mr. Velella has no further probation or community service obligations, the Manhattan district attorney's office said. The office said it was still investigating the circumstances of his first release. Time off for good behavior contributed to Mr. Velella's reduced jail time.

In Morris Park, residents remain fiercely loyal. Shortly after 9 a.m., two men in a black pickup truck drove past the reporters outside Mr. Velella's house and one of them shouted out the passenger side window, "No matter what, Guy's our guy."

Some time later, a woman in a sport utility vehicle screamed: "Leave this guy alone. Let him just come home."

Around noon, several people stood outside his door as if they were waiting for someone to open it. One of them yelled at reporters to get off the grass. Two groups of women left the house in the morning and drove away in two cars, about 15 minutes apart. One of them was carrying a baby.

One friend, Samuel Zarcone, said he had attended an anniversary party for a mutual friend with the former senator, when he was released temporarily in the fall.

"While I was at the party with him, he looked like he was O.K.," Mr. Zarcone said. But generally, he said, "I know he hasn't been feeling well, health-wise."

Mr. Zarcone seemed to speak for the neighborhood when he said: "He's done a lot for the community. It's just time to move on."

After Mr. Velella went inside, the activity around the house died down. A man who identified himself only as a lawyer came out of the house and answered a few quick questions from reporters as he walked away.

"He's really just going to hang around in the house today," he said.

Mr. Stillman said that Mr. Velella's first day of freedom would be "the first day of the rest of his life."

As soon as he is out of the glare of flashbulbs, "Guy Velella will fade into history," he said.

Mr. Velella is no longer allowed to practice law. He will draw an $80,000 annual pension.

Guy's Gonna Walk - Again
Despite Fuss, He Still Served Only 6 Mos. Of Term

By David Saltonstall
New York Daily News
March 15, 2005

Guy Velella

Some guys have all the luck.

Former state Sen. Guy Velella will get out of jail a day early this week because his official release date falls on Saturday - when an obscure state law prevents jails from freeing inmates.

So the disgraced former Bronx pol will walk out of Rikers Island on Friday, having served only about six months - minus one day - of a one-year sentence for taking bribes.

"The law says that if your release date falls on a Saturday, Sunday or a holiday, you get out the Friday before," said city Correction Department spokesman Tom Antenen.

It's the latest break for the once-powerful Bronx Republican leader, who was eager to get on with his life, friends said.

"He wants to get this over with, put his life back together and move on," said lawyer Murray Richman, who represented Velella's father, Vincent, in the bribery case and has spoken with the former state senator weekly since his incarceration.

Richman said he is unaware of any job offers for Velella, 60, who is battling prostate cancer and had to give up his law license as part of his guilty plea.

Ordinarily, an inmate facing a one-year rap can cut his or her sentence to a minimum of nine months with "good behavior" during time served.

But Velella was able to cut his stay to about six months after persuading the once-obscure Local Conditional Release Commission - after tearful calls to their offices - to grant him a get-out-of-jail-free card Sept. 28.

His release after just three months touched off a furor that didn't die down until Mayor Bloomberg installed a new commission that sent Velella back to Rikers on Dec. 27 - a ruling later upheld by the state's courts.

But Velella was able to get credit for time served as the legal tussle dragged on, effectively cutting three months off his sentence.

An additional three months or so were shaved off for Velella's "good behavior" while in the clink, said Antenen, who added that Velella was kept busy working in the prison's commissary for 37 cents an hour.

"My guess - an educated guess - is that he's going to want to go home and take stock of his life and see exactly where he is now," said Victor Tosi, who succeeded Velella as Bronx Republican Party chairman.

With Bob Kappstatter

    Official Taped in Velella Case Is Back at Work, as a Lobbyist

By Michael Slackman
The New York Times
February 8, 2005

A former top State Department of Transportation official, who was caught in a secretly recorded conversation saying he would give preferential treatment to a company linked to Guy J. Velella even if it cost taxpayers money, is back working in the corridors of the state government as a lobbyist and collecting a state pension of $87,128 a year.

The former official, James B. Cantwell, retired four months after the Manhattan district attorney, Robert M. Morgenthau, announced the indictment of former State Senator Velella, Mr. Velella's father and two others in 2002 in a bribery scandal.

In his news release and in court papers detailing the indictment of Mr. Vellela, Mr. Morgenthau cited the conversation that Mr. Cantwell, who at the time was general counsel to the Department of Transportation, had with a client of Mr. Velella's father, Vincent J. Velella.

In the recorded conversation, Mr. Cantwell described how the department was "going much, much farther then we would ever go with any other contractor" to aid the company, which was being represented by Senator Velella's father. Mr. Cantwell did not know he was being recorded in the 1998 meeting.

A few moments later, Mr. Cantwell told the client, "I mean, you know, quite frankly, I'm costing the taxpayers money by not going to the second bidder."

Mr. Cantwell was never accused of any criminal wrongdoing, and there was never any suggestion he had taken money for his action. But by leaving state government when he did, he benefited, intentionally or not, from a provision in the law that effectively shields former employees from being charged with violations of the Code of Ethics of the State Public Officers Law - no matter what they did while in office. The state's highest court found in the mid-1990's that the law applies only to state employees - not former employees, said a spokesman for the State Ethics Commission, which is the agency responsible for enforcing provisions of the law.

That reality was highlighted recently when the attorney general, Eliot Spitzer, and the state inspector general, Jill Konviser-Levine, said in a report that a plan by the New York State Canal Corporation to sell the rights to develop private land along the Erie Canal was plagued by favoritism and illegal ethical lapses. The report said that the people linked to the misconduct were no longer employed by the state, so they could not be charged with ethical violations.

"Everyone in the executive branch gets a 'get out of jail free' card - it's called retirement," said Blair Horner, legislative director for the New York Public Interest Research Group, who has monitored state government activities for decades.

Mr. Cantwell's case was never referred to the Ethics Commission, and he was never accused of violating the public officers' law. But his story helps illuminate the way Albany operates. Mr. Cantwell's appearance in the tape did not harm his relations with elected or appointed officials in the capital, and today he works as a lobbyist representing more than 20 special-interest clients.

Mr. Cantwell declined through his employer, Ostroff, Hiffa & Associates, to discuss the matter. A law enforcement official who spoke on the condition of anonymity said that Mr. Cantwell was never charged with any crime because he had essentially told investigators that the tape caught him telling a powerful senator what he wanted to hear, and that he did not actually take any official action because neither the senator nor the senator's father asked him to. The law enforcement official also said that Mr. Cantwell never knew that the senator was accepting bribes for exerting his influence.

Mr. Cantwell told friends that he was retiring not because of the case but because it was time after more than 30 years in public service, and that the difference between his pension and his $127, 642 salary when he left was not enough reason to stay on the job.

The Department of Transportation said yesterday that no wrongdoing had been found. "We take our responsibility to taxpayers very seriously, and are continually taking steps to assure the highest degree of accountability and oversight among all our employees and within the entire agency," said Jennifer Post, a spokeswoman for the department. She added that the contract was never awarded.

In the Velella case, the former senator pleaded guilty charges of bribery conspiracy after he was charged with several instances of selling influence, including his father's efforts to aid a client who was in danger of losing a contract to paint a bridge in the Albany area. The client had submitted the lowest bid, but because of safety problems at other work sites was in danger of losing the bid.

The contractor paid Mr. Velella's father's firm $5,000 and made $10,000 in political contributions in exchange for help winning back the contract, according to court papers. When the contractor and Vincent Velella went to Albany to meet with state officials - including Mr. Cantwell - the meeting was recorded with a hidden microphone worn by one of the participants.

Mr. Cantwell explained in that meeting that he should give the contract to the second-lowest bidder, but that to avoid harming Mr. Velella's client he would simply reject all proposals and put the contract out for bid again, which gave the company another chance. Mr. Cantwell later said to friends that he had to take this approach because the contractor with the lowest bid could have taken legal action against the state to prevent it from going to the second bidder, and not because of pressure from the Velellas.

But according to the recorded conversations, Mr. Cantwell gave Mr. Velella's client a different reason for his actions: "I did this because, because I have a great deal of respect for Vincent and for his son, and you're well represented on this and, quite frankly, I let my hair down a little too much."

Velella a Man with No Appeal

By Kenneth Lovett
New York Post
January 7, 2005

ALBANY — Disgraced former state Sen. Guy Velella yesterday lost his final bid to get out of jail early.

Without comment, the Court of Appeals — the state's top court — said it would not hear Velella's appeal, meaning the former Bronx political powerhouse-turned-jailbird will be locked up at Rikers Island until the spring.

"We are obviously disappointed," his lawyer, Charles Stillman, said in a statement. "Mr. Velella will complete his sentence and looks forward to his freedom and the resumption of his life."

With good behavior, Velella's projected release date is March 19, said city Department of Corrections spokesman Tom Antenen.

Sentenced to a year in jail for conspiracy to commit bribery, Velella entered Rikers on June 21 but was released Sept. 28 by the Local Conditional Release Board.

After a firestorm of controversy, the board's decision was reversed.

Guy's Got Tough Rap to Take
He Shares Cellblock with P. Diddy Protιιgιι

By Barbara Ross
New York Daily News
December 29, 2004

Former State Sen. Guy Velella spent his second night back at Rikers Island yesterday, getting used to life behind bars again. But can he stomach the music?

Velella and two co-defendants in his bribe conspiracy case were being kept in protective custody in a cellblock also occupied by hip hop star Jamal (Shyne) Barrow.

Barrow, 25, is doing a 10-year stretch in state prison as the convicted triggerman in the 1999 nightclub shooting in which music mogul Sean (P. Diddy) Combs also was charged.

Combs, who fled the club with then-girlfriend Jennifer Lopez, was acquitted. Barrow, his young protιιgιι, was convicted and was recently moved from an upstate prison to Rikers so he can be available for a local court.

Velella, 61, surrendered to the city Correction Department Monday afternoon, after a state appeals court ruled last week that onetime Republican powerbroker and four others granted early release by the Local Conditional Release Commission should be returned to jail because they were freed illegally.

Correction Department spokesman Tom Antenen said Velella arrived at Rikers shortly after 5 p.m. Monday and dined on Salisbury steak, rice and tea before being examined by doctors and being issued regulation green shirts and pants that all inmates wear.

It wasn't until 1:30 a.m. yesterday that Velella arrived at Rikers northern infirmary, where high profile inmates are housed in individual cells.

Antenen described Velella as "a man of leisure," who enjoyed a breakfast of wheat flakes, a lunch of beef tacos and a dinner of chicken patties, gravy and rice.

He also was allowed out for a brief exercise period.

Today, he said, Velella will be assigned a prison job. He may have his first visitors tomorrow.

Velella and Barrow, a rising star in hip hop until his conviction, have little in common except ties to the same Bronx lawyer, Murray Richman.

Richman represented Barrow and Velella's elderly frail father, Vincent, who got five years' probation after his son admitted that he and his dad shook down contractors to hire the Velella family law firm to get and keep state jobs.

New Shocker in Velella Release

By David Seifman
New York Post
December 29, 2004

He's back behind bars now, but Guy Velella got the sweetest deal of any felon freed from Rikers Island by the little-known Local Conditional Release Commission.

Records obtained by The Post through the Freedom of Information Law show that only 10 inmates — other than Velella and his two co-defendants — got out of Rikers in 2002, 2003 and 2004 as a result of commission actions.

The disgraced Bronx state senator was sprung by the commission on Sept. 28, just 100 days into a one-year sentence for conspiring to take bribes to rig state government contracts.

Even considering the time he might have gotten off for good behavior, Velella was released at least five months early.

The closest anyone came to getting that good a deal was Asharna Richards, 22, a first-time offender convicted of misdemeanor possession of a forged check, who walked out of Rikers 41/2 months early in 2002.

In fact, a Department of Investigation report last month found that by the time the commission got around to reviewing some cases, the inmates had already finished serving their terms. The exclusive early-release club included Judith Smiley, a wheelchair-bound woman who got two months shaved from her six-month sentence for kidnapping her adoptive son.

Disbarred lawyer Carl Mione, 71, won an early discharge on a grand-larceny conviction when his health started failing. He died two months later.

For the most part, the others handed get-out-of-jail cards were in on minor drug crimes.

In its report, the DOI determined that 116 inmates were judged eligible for early release by the commission since fiscal 2000 — but only 13 actually took up the offer.

Officials said most inmates decided to serve out their full terms, which were often close to the early-release dates, to avoid the requirement of further monitoring while on probation.

Data on those released before 2000 isn't available because, officials said, the commission shredded its older files.

Velella spent his first full day back in jail yesterday settling into an 8-by-6-foot cell in a maximum-security, protective custody unit reserved for high-notoriety inmates.

Among those Velella may see in passing at the 11-man unit is 26-year-old rapper Shyne —— Jamal Barrow —— who is at Rikers temporarily while serving a 10-year sentence for firing his gun at a Midtown nightclub while partying with Sean "P. Diddy" Combs.

Additional reporting by Laura Italiano

http://www.nypost.com/news/regionalnews/37326.htm

Now He's Guy Jailella

By Helen Peterson
and Barbara Ross
New York Daily News
December 28, 2004

Former state Sen. Guy Velella makes his way past throng of reporters yesterday as he surrenders to complete prison term.

Former Bronx State Sen. Guy Velella checked back into jail yesterday to finish the one-year sentence that was interrupted by an improper commutation.

Clad in what his attorney called "typical prison garb" - black twill pants, a gray hooded sweatshirt and a black jacket - the once-powerful Republican lawmaker hopped out of a black SUV near the Manhattan Criminal Court building about 3:20 p.m., well ahead of the 5 p.m. deadline.

"I have no comment. Thank you," said a nervous-looking Velella, 60, as he strode past reporters with his nephew Anthony Collora. He crossed the courthouse lobby and stepped behind a steel door to return to Correction Department custody.

A state appeals court ruled last week that Velella and four others granted early release by the Local Conditional Release Commission should be returned to jail because they had been freed illegally. Velella, a powerful figure in state and local politics for nearly 30 years, had served just over three months of a year-long sentence for accepting bribes from public works contractors.

At 4:10 p.m., after being fingerprinted and filling out admissions forms, Velella was handcuffed and taken alone on a big Correction Department bus back to Rikers Island, where he will be housed in a solitary cell in protective custody for the next few months.

Tom Antenen, deputy correction commissioner for public affairs, said Velella, who was diagnosed with prostate cancer after winning his early release, did not ask to be sent to Bellevue's prison ward.

Velella's lawyer, Charles Stillman, said his client now needs medication, not hospitalization. A Health Department spokesman said doctors at Rikers will contact Velella's doctors to make sure he gets whatever medicine he needs.

Velella, who wept his way out of jail in September after convincing officials he was becoming mentally unhinged, is a lot better prepared mentally to go back to jail, Stillman said yesterday.

"He's been there. He knows what it is - the worst and the best. And he has a finite date for release," Stillman said.

Velella has another appeal before the state Court of Appeals; a ruling is expected early next month.

Antenen said that if Velella had not been out on probation for the past three months, he could have been released from Rikers in late February with time off for good behavior.

However, Antenen said, inmates do not get that "good time" subtracted from their sentence for time that they are free - only for time that they are confined. Therefore, he said, Velella's earliest release date is about March 19.

Still, because of his improper release, Velella will end up serving 60 fewer days than he might have if he had stayed in prison.
 

Velella Snaps at Fotogs on Eve of Jail Trip

By Lisa L. Colangelo
New York Daily News
December 27, 2004

Fallen ex-state Sen. Guy Velella leaves his Bronx home on his way to church yesterday, the day before his city-ordered — and court-upheld — return to Rikers Island for taking bribes.

Disgraced former state Sen. Guy Velella savored his final hours of freedom yesterday, spending time with relatives and going to church to pray.

Velella, who must turn himself into the Department of Correction by 5 p.m. today, left his Bronx home just before 9 a.m. and climbed into a neighbor's Jaguar with his wife, Pamela.

"What's the matter? A guy can't go to church on Sunday without you guys being here?" Velella, 60, asked waiting photographers before heading to St. Clare's Catholic Church in Morris Park.

The fallen Republican powerbroker was sprung from jail by the Local Conditional Release Board after serving only three months of a one-year sentence for taking $137,000 in bribes.

The city's Department of Investigation and a Manhattan Supreme Court judge have ruled that the early release was illegal.

But Velella, who is being treated for prostate cancer, has been fighting a return trip to the clink since he was freed Sept. 28.

Mayor Bloomberg, who has been critical of Velella's release, replaced the obscure board's members in October. The new members voted to send Velella back to jail.

A week ago, the state Appellate Division upheld their decision. Last Thursday, the state Court of Appeals refused Velella's request to stay out of jail while the high court decides whether to hear the case.

He has until 5 p.m. today to turn himself in to correction officials at 100 Centre St., where he'll be processed.

From there, he will likely be taken to Rikers Island. But it's possible that a correction's doctor could instead ship him to Bellevue Hospital for medical treatment, a spokesman said.

Still, each day Velella has been free counts against his total sentence. When he returns today, his sentence could be trimmed by 92 days.

With Jesse Ward
 

Going-to-jail Guy a Bad Santa

By Angela Montefinise
New York Post
December 26, 2004

Former Bronx state Senator Guy Velella may be naughty, but it didn't stop him from playing Santa yesterday — only 48 hours before his return trip to the slammer.

Velella — who's been ordered back to Rikers tomorrow to serve his time for taking bribes — appeared outside his Bronx home for only a few minutes on Christmas Day, popping in to drop off a few gifts before heading out again.

The embattled politico walked up to his house at around 3 p.m., dressed all in black, carrying a Bloomingdale's brown bag in one hand and a present wrapped in red and gold in the other.

He stopped outside to greet a young couple who had just left the house, chatting for about five minutes.

He then walked through the front door — only to leave five minutes later empty-handed.

He looked suspiciously at a Post photographer before quickly walking around the corner and disappearing.

Velella, 60, has made himself scarce since his controversial release from Rikers Island on Sept. 28 — only three months after the start of his one-year sentence for taking bribes from potential state contractors.

New York City argued Velella was released illegally and prematurely by the Local Conditional Release Board — a mayoral panel with the power to release inmates early.

After an embarrassed Mayor Bloomberg replaced the members of the board, it ordered Velella back to jail in November.

He was granted a reprieve while his attorneys argued the board's decision in court, but last Monday the state's highest court ordered Velella back to jail.
He must turn himself in at Criminal Court in lower Manhattan by 5 p.m. tomorrow.

He'll be handcuffed and shipped off to Rikers and the North Infirmary Command, where he served his previous 100 days.

Velella pleaded guilty to conspiracy charges in May, admitting he accepted bribes from contractors from 1995 to 2000.

Prosecutors argued he took at least $137,000.


Guy, Your Cell is Waiting

By Joe Mahoney
New York Daily News
December 24, 2004

ALBANY - Former Bronx Sen. Guy Velella is going back to jail on Monday after a state Court of Appeals judge nixed his bid to remain a free man.

Velella, 60, has to turn himself in by 5 p.m. Monday, nearly three months after he was sprung from Rikers by an obscure city panel that can grant early releases to inmates.

"I am obviously disappointed we did not get a stay," Charles Stillman, Velella's lawywer, said after Justice Carmen Ciparick refused to set aside a lower-court order requiring the once powerful city Republican to report to jail.

But Velella will get still another crack at freedom, because Ciparick referred Velella's appeal to the full Court of Appeals, which is expected to meet again on Jan. 4.

His return to Rikers is a victory for Mayor Bloomberg, who argued that Velella's release on Sept. 28 - just three months after he began serving a one-year sentence for a bribery conviction - was granted illegally.

Stillman said that Velella, who is undergoing treatment for prostate cancer, is "resigned" to his situation.

Meanwhile, the Bronx Senate seat vacated by Velella in May will be filled next week when Jeff Klein, now a Democratic assemblyman, is sworn in.

Political insiders said Republicans hoped Velella could overcome the scandal and run for his old seat in two years, but the flap over his release may have doomed any chance he would win another election.

Velella Ball (& Chain)

By Kenneth Lovett and Dareh Gregorian
New York Post
December 24, 2004

Guy Velella will ring in the new year behind bars.

The state's highest court dumped a lump of coal in the freed felon's Christmas stocking yesterday, refusing a request to keep the disgraced former state senator out of jail while it considers his case.

Velella, 60, and four others were freed earlier this year by the obscure city Local Conditional Release Commission in a move the Department of Investigation and two courts have found was illegal.

Velella had only served 100 days of his one-year sentence for taking kickbacks on state contracts when the board released him on Sept. 28, following pleas by his politically connected pals and his own sob stories about life behind bars.

A reconstituted version of the LCRC ordered Velella and the others to go back to jail in November, but the five got reprieves from the courts that allowed them to remain free while they challenged the board's move.

The state Appellate Division ruled against the powerful Republican this past Monday, ordering he and the others should go back to jail — but not until Dec. 27.

The Christmas bonus time was surprising, because each day Velella and the others are out of jail counts against their sentence.

Velella is now taking his case to the state's highest court, the Court of Appeals.

Lawyer Charles Stillman yesterday asked the Albany cou

Judge Carmen Ciparek, a Democrat, denied the request, but put the case on the court calendar for Jan. 4, when the judges are expected to decide whether they will hear Velella's appeal.

Velella, who'll return to Rikers Island, must turn himself in on Monday before 5 p.m.

"We're obviously quite saddened by the decision," Stillman said.

"Nevertheless, we are hopeful that the court will consider the case."

Jeffrey Friedlander of the city Law Department said, "We appreciate that the judge allowed the Appellate Division's decision to be enforced."

Velella, who is suffering from diabetes and prostate cancer, pleaded guilty to felony conspiracy in a scheme to collect kickbacks from state contractors.

After the Department of Investigation issued its report, Mayor Bloomberg replaced all of the members of the

Velella to Return to Jail Monday
 While Lawyers Continue Appeal

By Sabrina Tavernise
The New York Times
December 24, 2004

Former State Senator Guy J. Velella will have to return to jail on Monday, since a judge on New York's highest court rejected his request that he remain free while his lawyers continue to press his appeals in court.

The decision, by Judge Carmen Beauchamp Ciparick of the New York Court of Appeals, ended more than a month of legal wrangling over Mr. Velella's fate. He was released from jail in September by a mayoral panel, but that same panel - with all new members - ordered him back to Rikers Island after determining that his release was illegal. Thus the court fight.

Mr. Velella is due to report by 5 p.m. on Monday to Criminal Court in Lower Manhattan, where he will be handcuffed and taken to Rikers Island. He will be served meatloaf, rice and steamed cabbage for dinner, a Correction Department spokesman said.

A spokesman for the Court of Appeals said that Judge Ciparick's decision would apply only until the full court returned from recess in early January, when it could decide to take up Mr. Vellela's appeal.

Even so, it is the first time Mr. Velella's return to jail has been imminent since the mayoral panel - the Local Conditional Release Board - set him free on Sept. 28, just three months into his one-

year sentence in a bribery conspiracy case. His release provoked a whirlwind of criticism that embarrassed Mayor Michael R. Bloomberg.

Charles A. Stillman, Mr. Velella's lawyer, said yesterday, "We're saddened by today's decision." Still, "by placing it on the January calendar, the court has the opportunity to decide the important issues raised in this case."

Lawyers for the city applauded the ruling. It was the third time a court had ruled in their favor in the case. In November, a Supreme Court justice, Lottie Wilkins, ruled that the panel had the power to order Mr. Velella back, and this week, an appeals court unanimously upheld that decision.

"We appreciate that the judge allowed the Appellate Division's decision to be enforced," said Jeffrey D. Friedlander, a lawyer for the city, in a statement yesterday.

Lawyers for the city have argued that the panel made a mistake when it released Mr. Velella. They say that it often acted without enough members present and that it let Mr. Velella reapply for release too soon after his previous application.

After the outcry over Mr. Velella's release, Mr. Bloomberg replaced the members of the panel, and in November that newly reconstituted group ordered the former senator and four other people back to jail. The new panel cited a report by city investigators that there had been irregularities in the release process.

That sudden reversal is at the heart of the objections raised by Mr. Velella's lawyers, who say that their client was simply following the panel's own rules in applying for his release.

"There's something wrong with firing the people that let him out and hiring new people to then go ahead and send him back to jail," Mr. Stillman said.

The court has agreed to consider whether to take Mr. Velella's case soon after it returns in January. But a quick decision would not necessarily mean that the court takes the case. The court accepted just 8.2 percent of applications for civil cases last year, the spokesman said.

If the court rejects Mr. Velella's case, his lawyer could still appeal in federal court. If Mr. Velella is not granted relief in court, he will be eligible for release by the end of March.

Mr. Velella served 100 days of his sentence at Rikers Island, from June to September, a spokesman for the Department of Correction said. His return by bus with other prisoners on Monday evening will be far different from his release. At that time, the president of the correction officers' union drove him to meet his family at a favorite Bronx restaurant.

A spokesman for the department could not say whether Mr. Velella would take up his former job handing out candy, chips and toiletries to other inmates in the commissary at the North Infirmary Command, a 450-bed jail that is one of the oldest on Rikers Island, one that has housed John Gotti, the Rev. Al Sharpton and other celebrity inmates.

Mr. Velella, who has been working several mornings a week in a soup kitchen since his release, understands yesterday's ruling "and is dealing with this," Mr. Stillman said.

Junk Guy Jail Law: Mike

By Stefan C. Friedman
New York Post
December 22, 2004

An obscure provision in the law that has allowed the clock to continue running on Guy Velella's jail sentence — even as he's appealed his sentence from the comfort of his own home — should be scrapped, Mayor Bloomberg said yesterday.

Since being discharged by the Local Conditional Release Committee three months ago, Velella's one-year sentence has continued to wind down, even though his release was later deemed invalid by a reconstituted version of the LCRC.

"You would think a common-sense law would stop the clock," Bloomberg said. "I think it's unfair."

Bloomberg added that letting the clock run also puts "undue pressure on the courts."

"You want [the courts] to take their time and make sure they consult case law, and think about it, and do what they think is appropriate," Bloomberg said. "It's hard to do when there's public outcry pushing them to do something expeditiously."

On June 21, Velella was sentenced to a year on Rikers Island on charges stemming from a bribery scheme.

But the disgraced former state senator was released on Sept. 28, just 100 days into his term.

Two months later, after the original LCRC was disbanded and replaced following a scathing report from the city's Department of Investigation, Judge Lottie Wilkins ordered Velella and four others back to the big house.

An appeals court agreed with Judge Wilkins in a decision Monday, and ordered Velella back to the pokey on Dec. 27.

Guy Jail 'Break'

By Dareh Gregorian
New York Post
December 21, 2004

Guy'll be home for Christmas?!

Freed felon former state Sen. Guy Velella has been ordered to go back to jail — but not until after Christmas weekend.

A unanimous state appeals court yesterday found a city board's decision to release the crybaby crook and four other convicts was "illegal" — but the five-judge panel also inexplicably ruled that they don't have to go back behind bars until Dec. 27.

"This is astonishing. I've never seen anything like this guy," civil-rights lawyer Ron Kuby said of the once-powerful pol's latest reprieve since getting sprung from jail on Sept. 28.

"Eventually, he'll have to spend some holiday behind bars — maybe Martin Luther King Day or Presidents Day, maybe."

The Christmas charity for Velella by the Appellate Division was especially surprising because every day Velella is out of jail counts toward his yearlong sentence — meaning the judges essentially knocked another seven days off his prison term.

Nevertheless, Velella lawyer Charles Stillman said: "We are deeply disappointed by the court's decision. It will not be a pleasant holiday for our clients."

He said he will "seek relief" from the state's highest court, the Court of Appeals. That court, however, rarely hears appeals on unanimous decisions.

The Appellate Division decision upheld a Nov. 29 ruling by Manhattan Supreme Court Justice Lottie Wilkins that found the obscure city Local Conditional Release Commission acted illegally when it freed Velella, two of his co-conspirators and two other people while ignoring proper procedures.

Velella, 60, who Stillman said is suffering from diabetes and prostate cancer, pleaded guilty earlier this year to felony conspiracy for a scheme to collect kickbacks from contractors doing business with the state.

He began his one-year sentence on June 21 —— but was sprung by the LCRC on Sept. 28, following pleas from politically connected and powerful pals and his own crying fits and sob stories about how difficult his life was behind bars.

After a Department of Investigation report found the board had acted improperly, Mayor Bloomberg had all the commission members replaced.

The newly reconstituted commission then ordered Velella and the others to go back to jail, but they've been allowed to remain out while challenging that ruling in the courts.

The reprieves have already greatly reduced the amount of jail time Velella was supposed to have served. Taking into account his "good time" —— the mandatory one-third of a sentence taken off for good behavior —— Velella would have originally had to serve 253 days behind bars.

Now, because of the 90 days he's been able to spend out of jail that count against his sentence, he'll only have to serve approximately 181 days in the big house.

Stillman is expected to try to knock that figure down even more by arguing that the days Velella's been out on supervised release should count toward his "good time" and yet another 30 days should come off his jail time. But city lawyers don't expect that argument to be successful.

"I wouldn't be surprised if [Velella] tries to argue his Christmas dinner at home should count as 'good time,' " said Kuby, who complained the poor and not-powerful criminals he represents have never gotten the kind of breaks Velella has. Then again, he added, nobody else has, either.

"In terms of both the whining and the corruption, it's hard to compare him to anybody else," Kuby said. "Who would have thought Martha Stewart would be a more stand- up convict than Guy Velella?"

A spokesman for the city Department of Correction, Officer Ralph Smith, said the Velella Five are missing out by skipping the Christmas meal at Rikers. "It's a nice, big dinner," he said. "It's a meal both the inmates and the staff look forward to."

Ex-State Senator Is Ordered Back to Jail

By Sabrina Tavernise
The New York Times
December 21, 2004

A New York state appeals court ruled yesterday that former State Senator Guy J. Velella and four other released inmates must return to jail next Monday, unanimously upholding a mayoral panel's order that their early release from Rikers Island was illegal.

The ruling by five justices of the Appellate Division of the State Supreme Court, First Department, appeared to give Mr. Velella little room to maneuver to stay out of jail. His lawyer, Charles A. Stillman, vowed to contest the decision before the state's highest court, the Court of Appeals.

But city lawyers noted that the back-to-jail order yesterday would stand unless a judge on that court agreed to take up Mr. Velella's case and grant him an interim stay for another appeal. One legal expert said there was only a slim chance of that happening.

"We are deeply disappointed by the court's decision," Mr. Stillman said in a statement. "It will not be a pleasant holiday for our clients."

City lawyers were elated, and viewed the court's unanimous ruling as the end to a months-long effort to return the former senator, who was convicted last May in a bribery conspiracy case, to Rikers Island.

Mr. Velella's early release from prison by a mayoral panel after he had served just three months of a yearlong sentence ignited a storm of criticism that embarrassed Mayor Michael R. Bloomberg, who said he had not even known of the panel's existence before it acted in the Velella case.

Responding to the outcry, the mayor then dismissed the members of the panel and replaced them with new members who quickly ordered Mr. Velella back to jail after finding his release was illegal.

That set off a flurry of legal maneuvering as lawyers for Mr. Velella and four others battled the order. Yesterday's ruling confirmed a decision by a lower court judge last month that the mayoral panel, the Local Conditional Release Commission, was right when it reversed itself and ordered Mr. Velella, who is 60, back to prison in November.

The central question now is whether New York's highest court will grant Mr. Velella a stay, which would allow him to remain out of jail until the seven-member court decides on whether it will accept his case. The stay is important because Mr. Velella, with six months to go in his sentence, could spend the remainder of it waiting for the court to decide. The court takes an average of 59 days to decide whether to take up a civil case and, if it agrees, 259 days to issue a decision, a spokesman for the court said, citing statistics from 2003.

Each day that passes - whether Mr. Velella is in or out of jail - is subtracted from his sentence, so if the court issues a stay, he will likely spend the rest of his sentence at his home in the Bronx, an outcome lawyers for the city have opposed.

Vincent Martin Bonventre, a law professor at Albany Law School who studies the court, said he thought it unlikely that it would issue a stay and accept Mr. Velella's case. The court pays particular attention to issues of constitutionality, he said, and Mr. Velella's case is more about procedure than constitutional rights.

However, the case is high-profile, and the court may decide that it should not be ignored for that reason, Mr. Bonventre said. The court accepted just 8.2 percent of applications for civil cases last year, said the court spokesman, Gary Spencer.

"I would give it about a 30 percent chance," Mr. Bonventre said, regarding the likelihood of acceptance. "There doesn't seem to be any big issue here. The only thing that might persuade the court is that it's a high-profile case, and perhaps the state ought to get final word from the Court of Appeals on it."

The city's lawyers have argued that the panel made a mistake when it released Mr. Velella in September. They say it had often acted without enough members present, and that it let Mr. Velella reapply for release too soon after he had made an earlier application. Lawyers for Mr. Velella say that the panel did not have the power to reverse itself, and that Mr. Velella simply followed instructions that it had laid out.

The Court of Appeals is not currently in session, but Mr. Spencer said that an application for a stay made this week could be considered by an individual judge.

Yesterday's ruling handed a second victory to the city. Jeffrey D. Friedlander, a lawyer for the city, praised the decision in a statement, saying that "the city is pleased that the Appellate Division, like the lower court, upheld" efforts by the panel "to perform its duties strictly in accordance with the law."

In its decision, the court stated directly that Mr. Velella and the four other former inmates were illegally released. What is more, it stated that a government agency like the panel has the power to change a decision "on the grounds of a significant irregularity."

Mr. Stillman will attempt to contest that in Albany.

Reaction to the ruling was muted in Albany, where the Velella case has become something of an embarrassment to his allies. A spokesman for Joseph L. Bruno, the Republican Senate majority leader, had no comment. Todd E. Alhart, a spokesman for Gov. George E. Pataki, said, "We're not going to comment on individual cases, but we have confidence in the justice system."

In Mr. Velella's Bronx neighborhood, Morris Park, neighbors simply shook their heads.

"If he's going away, you should put the rest of the politicians away," said Anthony Nardi at Sorrento Pizzeria, across from Mr. Velella's district office. "They can sit in jail and play cards with our money."

Janon Fisher and Michael Cooper contributed reporting for this article.

Court Orders NY Politician to Return to Jail

By Tom Perrotta
New York Lawyer
New York Law Journal
December 21, 2004

A state appeals court yesterday ordered disgraced State Senator Guy J. Velella to return to prison on Dec. 27, saying in a terse opinion that his early release by a controversial commission was unlawful.

The ruling by a unanimous panel of the Appellate Division, First Department, was delivered just two business days after the court heard oral arguments on a day when the court usually does not deliver opinions.

Mr. Velella, a prominent Republican who admitted taking $137,000 in bribes, had argued that the city's Local Conditional Release Commission did not have the authority to reverse its previous decision to release him.

The First Department rejected that argument and said the commission had the authority to reverse a determination "on the ground of a significant irregularity."

Mr. Velella's release was abnormal in that the commission considered it sooner than it should have, the court said.

Charles Stillman of Stillman & Friedman, Mr. Velella's attorney, said he would seek to appeal the ruling to the Court of Appeals.

Jeffrey D. Friedlander, first assistant corporation counsel, said in a statement: "The City appreciates the Court's thorough, expeditious and unanimous decision."

The commission released Mr. Velella, 60, this summer after he had served three months of a 1-

year sentence. The decision incited public outrage, and Mayor Michael R. Bloomberg soon forced the panel members to resign and appointed new ones.


Round Trip: Velella Going Back to Jail

Associated Press
New York Post
December 20, 2004

A state appeals court ruled Monday that former state Sen. Guy J. Velella and four others whose jail terms were shortened by a city agency must go back to jail.

A five-judge panel of the State Supreme Court’s Appellate Division unanimously affirmed the Nov. 19 ruling of Justice Lottie Wilkins. She ruled that Velella, his two co-defendants, and two others in unrelated cases, must return to jail Dec. 27.

The appeals judge said the Local Conditional Release Commission did not follow the law in releasing them.

Lawyers for the defendants and the city had appeared last Thursday before the appellate judges to argue their positions. Defense lawyers argued that the commission “did not have the legal power” to send the former inmates back to jail after ordering their release.

The appeals court disagreed, saying “an agency has the power to set aside a determination on the ground of a significant irregularity.”
 

Ex-State Senator Is Ordered Back to Jail

By John O'Neil
The New York Times
December 20, 2004

Guy J. Velella, a former New York state senator, today was ordered back to jail by an appeals court panel that ruled unanimously that his release by a city board violated its own rules.

The five-judge panel of State Supreme Court's Appellate Division ordered Mr. Velella to report to Rikers Island on Dec. 27 to resume serving the nine months remaining on a one-year sentence he received after pleading guilty to bribery charges. Two of Mr. Velella's co-defendants from his bribery trial and two inmates who had been released while serving sentences in unrelated cases were also ordered to return to jail that day.

A 60-year-old Bronx Republican who had been active in politics for three decades, Mr. Velella was released in September by a city panel that had formerly operated with little notice, the Local Conditional Release Commission. After a storm of protest greeted the news of his release, Mayor Michael R. Bloomberg dissolved the panel and appointed new members, who voted to reverse the decision.

Mr. Velella and the others challenged that move on the grounds that they had complied with all legal requirements and had abided by the terms of their release. But a lower-court judge, Justice Lottie E. Wilkins, last month sided with the city's argument that the men had submitted their applications for release earlier than had been allowed and that the board was allowed to reverse its own error.

During arguments last week, members of the appellate panel were sharply critical of the way the release board had conducted its business. The board had "run amok until this high profile case came up," said one of the judges, Justice Richard T. Andrias.

In its ruling today, the appellate panel said that Mr. Velella and one of the other inmates had re-

applied for release too soon after an initial application had been turned down. The board's rule required a 60-day wait between applications, it said. The other three men had applied before spending the minimum of 30 days in jail required under the board's rule.

"While a government agency cannot reopen an application and change a valid, final order absent statutory authority," the judges wrote, "an agency has the power to set aside a determination on the ground of a significant irregularity."

Mr. Velella's lawyer, Charles A. Stillman, said today: "We are deeply disappointed by the court's decision. It will not be a pleasant holiday for our clients."

He said the decision would be appealed.

The five ordered back to prison today were the only inmates released by the board this year out of 7,000 eligible cases. The mandate for the early release board, and others like it around the state, is to consider cases of first-time, nonviolent offenders who have served at least 2 months of a 3-

to-12-month sentence. Only 15 people have been granted such early release in the last five years.

Since his release, Mr. Velella, who has prostate cancer, has been living with his family in the Bronx while being monitored by the Department of Corrections.

Prosecutors had charged him with accepting at least $137,000 in bribes from contractors looking for state contracts.

 

Jail Judges Rip Guy and City

Dareh Gregorian
New York Post
December 17, 2004

The fate of freed bribery felon Guy Velella is in the hands of five appeals court judges who yesterday hammered lawyers for the disgraced state senator and the city about his early jail release.

Velella and four others who were sprung early by the city's Local Conditional Release Commission can stay out of jail until the Appellate Division rules on whether the board has the authority to jail them again. It's not known when the panel will rule.

City lawyer Drake Colley urged the judges to rule quickly, noting that each day the five are out of jail is a day of their sentence that they won't have to serve.

In court, the judges seemed skeptical of Velella lawyers' arguments that the newly reconstituted LCRC couldn't overrule the jail decision.

"Doesn't it have the power to correct itself? . . . Isn't that an inherent power?" Justice David Friedman asked.

Another justice, Andreas Colley, chastised the city for letting the LCRC "run amok."

Velella In-law Is Out

By David Seifman
New York Post
December 14, 2004

Guy Velella's son-in-law had better start cleaning out his desk at the Board of Standards and Appeals.

Mayor Bloomberg said yesterday that he won't reappoint Peter Caliendo when his six-year term on the zoning appeals panel ends Jan. 1.

The mayor maintained that his decision had nothing to do with Caliendo's relationship to Velella, the disgraced former Bronx state senator whose early release from Rikers Island has created a firestorm.

"What I've generally done is that when somebody that had been appointed by [a] previous administration runs out [his term], I tend to bring in somebody new that I've appointed," said Bloomberg.

"I've always thought that change is good, as you know. I've been in favor of term limits . . . I would anticipate appointing somebody new, but not as a reflection on him or anybody else."

Bloomberg concluded that it's generally a good idea to get "new blood."

But nearly a dozen top Giuliani administration officials were held over when Bloomberg took over in 2002.

They include Matthew Daus, chairman of the Taxi and Limousine Commission, who has ties to the one of the few Democratic clubs to endorse Bloomberg in 2001; Transportation Commissioner Iris Weinshall; Correction Commissioner William Fraser; Housing Commissioner Jerilyn Perine and Housing Authority chief Tino Hernandez.

Fraser and Perine have since left.

Caliendo was named to his $127,000-a-year post by then-Mayor Rudy Giuliani when Velella wielded considerable clout at City Hall and in Albany.

Appointment to the board can be a sweet deal.

The five commissioners are required to attend only 35 hearings, although the prep work can be time-consuming.

And while three of the commissioners have to have professional licenses in engineering, architecture or planning, two don't. Caliendo fell into the latter category.

The next development in the Velella saga comes Thursday, when the Appellate Division hears arguments on whether or not he should be returned to Rikers Island.

Mike Holds Fate of Guy Kin's Cushy Job

By David Seifman
New York Post
December 13, 2004

Guy Velella's son-in-law quietly holds a plum, $127,000-a-year job in city government — and Mayor Bloomberg now has to decide if he'll keep it.

The son-in-law, Peter Caliendo, has been collecting the hefty paycheck as a commissioner on the Board of Standards & Appeals for the past six years.

But the term is up Jan. 1.

And it's Bloomberg — a severe critic of Velella's early release from Rikers Island — who gets to say whether Caliendo remains or goes.

If the mayor takes no action, Caliendo could stay until a replacement is named.

"It's under review," said one administration official.

The BSA has sweeping powers to overturn land-use decisions of the Buildings Department and other city agencies. The mayor appoints all five commissioners.

Former Mayor Rudy Giuliani named Caliendo at a time when the young man's father-in-law had enormous clout at City Hall and in Albany.

Commissioners are required to attend only 35 hearings a year, although there's considerable paperwork that can easily make the job full-time.

Insiders say Caliendo's performance has been less than impressive.

"For the first year, he barely asked a question," one source said.

Velella is currently battling to stay out of Rikers Island, where he was sentenced to a one-year term for taking bribes as a Bronx state senator to rig government contracts. His release after just 100 days made front-page headlines and led to a shake-up in the city commission that opened the jail doors.

The Appellate Division will have a hearing this week on whether to uphold a lower-court ruling requiring Velella to return to jail.

Earlier this year, Bloomberg made it clear he wasn't thrilled with the BSA he inherited.

"This is a commission that I gather has been somewhat arbitrary," Bloomberg told a town-hall meeting in Greenwich Village in August.

Earlier this year, the mayor installed his own chair, Meenakshi Srinivasan, and booted Giuliani appointee James Chin.

But because Chin's term runs through July 10, 2007, he couldn't be fired, and continues to serve as a commissioner.

Giuliani also named another commissioner, Satish Babbar, whose term doesn't end until July 10, 2007.
 

Velella Receives Treatment for Cancer of the Prostate

By Michael Cooper and Jennifer Steinhauer
The New York Times
December 11, 2004

ALBANY - Former State Senator Guy J. Velella, who is waiting to learn whether an appeals court will order him back to jail this month to finish serving a bribery sentence, was treated for prostate cancer on Friday at Mount Sinai Medical Center in Manhattan, his lawyer said.

Mr. Velella, who was a longtime Republican senator representing the Bronx and parts of Westchester before resigning this spring to plead guilty to conspiracy to accept bribes, received radioactive seed implants during an outpatient procedure, said his lawyer, Charles Stillman.

"We're hopeful and anxious at the same time," Mr. Stillman said.

The illness, and the treatment, are the latest twists in a year in which Mr. Velella saw his world turn upside down. After pleading guilty to the conspiracy charge, which stemmed from a case in which businesses seeking the senator's help in winning lucrative state contracts paid large sums of money to his father's law firm, Mr. Velella was sentenced in June to a year in jail.

So he traded the gilded Senate chamber for a cell on Rikers Island.

But he did not stay there long. In September, Mr. Velella was granted early release by an obscure mayoral panel. During the ensuing public outcry, Mayor Michael R. Bloomberg replaced the members of the panel, which then ruled that his release was a mistake, and it ordered him back to jail. A State Supreme Court judge agreed last month, but Mr. Velella appealed the decision.

Five judges on the court's Appellate Division are set to hear his case - and weigh his fate - next week.

In the midst of the legal back and forth, Mr. Stillman announced that Mr. Velella had prostate cancer.

The announcement was met with skepticism in some corners, possibly because defense lawyers had originally sought to keep Mr. Velella's father, Vincent, from being prosecuted on the grounds that he was old and sick. Vincent Velella was spared prosecution by his son's plea agreement.

"Can't you hear the violins in the background?" an editorial in The New York Post asked.

Friends of Mr. Velella's were outraged that his illness would be greeted with doubt instead of sympathy. "We were dismayed that people treated it as something that was maybe fabricated, or somehow designed to bring sympathy," said a friend who said that he spoke with Mr. Velella before he got his treatment yesterday.

It is the same course of treatment Mr. Velella's old political ally Rudolph W. Giuliani received in 2000.

Judge Orders Velella Jailed, Then Another Court Steps In

By Sabrina Tavernise
The New York Times
November 30, 2004

 

A  judge ordered Guy J. Velella, the former state senator, back to jail yesterday, agreeing with the city that a mayoral panel was right to send him back. But just three hours later and with Mr. Velella's imprisonment looming, an appeals court allowed him to remain free until Dec. 16, when five judges will consider his case.

The ruling ordering Mr. Velella back to jail, by Justice Lottie E. Wilkins of State Supreme Court, was an important symbolic victory for the city in a tortured case that has embarrassed the Bloomberg administration ever since that mayoral panel - albeit with different members - voted to release him in September.

In her ruling yesterday, Judge Wilkins said that the panel, the Local Conditional Release Commission, was right when it reversed itself and ordered Mr. Velella back to prison last month.

But lawyers for Mr. Velella moved quickly to appeal the ruling, and Justice Betty Weinberg Ellerin of the Appellate Division of State Supreme Court, First Department, granted him a temporary stay, until Dec. 16, when five judges will be convened to hear his case and also determine the fate of four others who have been ordered back to jail.

"This has been a day of ups and downs and downs and ups," said Charles A. Stillman, a lawyer for Mr. Velella. He added that the former senator "is extremely grateful that the court is going to take the time to consider this important matter in his life."

Meanwhile, every day that passes - whether he is in jail or out - is subtracted from Mr. Velella's sentence, said a spokesman for the Department of Correction. City lawyers have said that long legal proceedings could mean that Mr. Velella will spend the rest of his sentence at home, an outcome that they argue is unfair.

"Every day they are at liberty is a day they will not have to serve," said Stephen Kitzinger, a lawyer for the city.

Mr. Velella's jail experience began in June, when he was sentenced to a year for conspiring to accept bribes. He was released unexpectedly in September by the panel, stirring up a controversy that reached City Hall, where Mayor Michael R. Bloomberg was forced to distance himself from the panel, although his office had appointed two of the four members. Mr. Bloomberg then forced the resignation of all four panel members in October and reconstituted the board by appointing five new members.

That new panel ordered Mr. Velella and the two others who were sentenced with him - Manuel Gonzales and Hector Del Toro - back to prison. Two other inmates released this year, Kamala Stephens and Carlos Caba, were also ordered back.

Yesterday, Mr. Bloomberg indicated he might support eliminating the panel altogether, but reiterated his support for its decision to send Mr. Velella and the others back to prison. The newly formed panel issued its decision shortly after city legal investigators had determined that the previous panel had often acted without enough members present, and that it let Mr. Velella reapply for release too soon after he made an earlier application.

As far as the treatment of Mr. Velella, Mr. Bloomberg said that "if you're ever going to err on the side of leniency it should not be with elected officials, because they represent to the public what should be a higher standard."

Justice Wilkins, in her ruling, did not address the question of whether the former inmates deserved to be released, ruling instead on whether the panel had the right to reverse itself. Although no such right is spelled out in law, the panel has "implied legislative powers" that allow it to make such a decision, she wrote.

"Because of its important public trust," Justice Wilkins wrote in the ruling, "and the serious potential that improper grants of conditional release may go unchallenged, it is essential" that the panel "can be counted on to police itself."

After the ruling, released about 10 a.m., lawyers for Mr. Velella filed papers at State Supreme Court on Centre Street and then at the Appellate Division, at 25th Street and Madison Avenue, in a relay-style race through the court system. Time was of the essence, as Mr. Velella was due to report for prison by 5 p.m. yesterday.

At the appeals court, Justice Ellerin, who was appointed to the court in 1985, said at a closed-door session that she granted the stay "to give the court a chance to review and study the matter," according to one person who was present.

Justice Ellerin was assigned to Mr. Velella's case randomly, according to court clerks, as will be the panel of five judges who will hear his case. The panels are assembled and assigned cases by the senior court clerk, and lawyers are not allowed to choose which judges they want to hear their cases, court clerks said.

The court's members are State Supreme Court Justices who have been appointed to the appellate bench by the governor.

The five-judge panel will decide whether to extend the stay granted to Mr. Velella, and hear arguments by lawyers for both sides.

The panel may not decide Mr. Velella's case on that day.

Mr. Kitzinger said that lawyers for the city would bring the same arguments they made to Justice Wilkins to the appeal, namely that "the actions of the commission were not done in accordance with the law, and were therefore void. The releases were in error."

Though the passing days are subtracted from Mr. Velella's sentence, they do not count toward the one-third time off for good behavior normally subtracted from inmates' sentences, the Department of Correction spokesman said.

Lawyers for Mr. Velella were pleased at what they said was a second chance to show that the panel had no legal basis for reversing its own decision. "I'm pleased, I'm relieved," Mr. Stillman said.

As for Mr. Velella, he is still putting in his hours of community service a few times a week in a soup kitchen. Mr. Stillman declined to say where Mr. Velella spent Thanksgiving or where he was yesterday. Justice Ellerin tightened his probation restrictions, Mr. Stillman said, requiring him to check in daily.

"It's not as though they're out in a park," Mr. Stillman said.

Jennifer Steinhauer and Janon Fisher contributed reporting for this article

Guy Stalls Return to Pokey Again

By Barbara Ross
New York Daily News
November 30, 2004

Former State Sen. Guy Velella's get out of jail card has been extended for at least two more weeks.

Appellate Division Judge Betty Ellerin allowed Velella and four others to remain free pending a full hearing before a panel of five appellate judges.

That ruling reversed a lower-court opinion given only hours earlier that Velella had to report to jail by 5 p.m. yesterday.

"This has been a day of ups and downs, and downs and ups," said Velella's lawyer, Charles Stillman.

Velella, a Bronx Republican serving a one-year sentence for taking bribes, was sprung from Rikers in late September after serving only three months.

The decision by the Local Conditional Release Commission triggered a torrent of controversy, prompting Mayor Bloomberg to replace old commission members with new ones who rescinded the early release and ordered Velella back to jail.

Velella was supposed to return to Rikers last week, but he went to court, arguing that the new commission did not have the legal authority to reverse itself unless he violated the terms of his release, which he had not.

Yesterday morning, Manhattan Supreme Court Justice Lottie Wilkins upheld the commission's vote to rescind freedom.

Defense lawyers took their case to the Appellate Division, where Ellerin issued her ruling after a closed-door hearing.

While Velella is out, the clock on his sentence keeps ticking - so each day he's out is one fewer day he has to serve behind bars.

Velella Wins Court Duel

By Dareh Gregorian
New York Post
November 30, 2004

Talk about revolving-door justice: Hours after one judge ruled Guy Velella should go back to jail, another decided the former state senator can stay out for at least another 21/2 weeks.

"It's been a day of ups and downs, downs and ups," Velella lawyer Charles Stillman said after Appellate Division Justice Betty Ellerin ruled the former Republican bigwig and four other convicts can stay out of jail at least until their appeal is heard by a panel of judges Dec. 16.

The five were sprung early by the scandal-scarred Local Conditional Release Commission, sparking outrage and a city probe that concluded they were freed illegally.

Stillman said his client was "relieved" and "extremely grateful" for the extra time, which he planned to use to get treatment for his recently diagnosed prostate cancer.

Ellerin issued her stay about four hours after Manhattan Supreme Court Justice Lottie Wilkins ruled that Velella, co-conspirators Hector Del Toro and Manuel Gonzalez, and two other prisoners would have to turn themselves in to go back to Rikers Island by 5 p.m. yesterday.

"The New York City Local Conditional Release Commission and the Department of Correction acted properly on Nov. 19, 2004, when they found the previous action of the commission to be invalid," Wilkins said, referring to the newly reconstituted commission's decision to send the five back to jail.

They were sprung in September by the previous incarnation of the commission after its board used what the city Department of Investigation later found were "illegal" and "invalid" procedures.

Mayor Bloomberg then replaced the entire board.

Wilkins had allowed Velella and the others to remain out while she weighed their arguments that their releases were on the up-and-up, but ordered them back in to the slammer after finding the new board acted properly.

Their lawyers then headed up to the Appellate Division, where Stillman convinced Ellerin to allow the five to remain free until their case can be heard by a full five-judge panel.

Lawyers for the city argued against the move, contending the clock on their prison sentences is continuing to run.

"We believe every day they are at liberty is another day they don't have to serve," said Stephen Klitzinger.

Additional reporting by David Seifman

Judge Orders Ex-State Senator Back to Jail

By the Associated Press
The New York Times
November 29, 2004

NEW YORK -- A judge ordered former state Sen. Guy Velella and four others to return to jail on Monday, but the defense promised an immediate appeal.

State Supreme Court Justice Lottie Wilkins denied a defense request for a delay. In a 12-page ruling, she ordered Velella, his two co-defendants and two others to surrender by 5 p.m. Monday.

"We are disappointed but undaunted," said Velella's attorney, Charles Stillman, adding that he would go before the Appellate Division later Monday.

Velella, 60, a once-powerful Republican, was imprisoned after admitting his role in a lucrative bribery scheme.

The Local Conditional Release Commission ruled that Velella and his co-defendants were freed illegally in September after serving about three months of a one-year sentence.

After the Velella release became public, Mayor Michael Bloomberg forced the members of the commission to resign and appointed a new panel.

Velella, a Bronx political leader and state senator for 28 years, has prostate cancer, diabetes and other physical ailments, as well as stress-related emotional problems, according to Stillman.

Stillman asked the court to grant protective custody for Velella if he loses his bid to stay out of jail.

He had asked the court to delay the jail order until 5 p.m. Tuesday. In refusing, the judge remarked, "I'm sure the Appellate Division, like myself, has been anticipating this."

Velella, his 90-year-old father Vincent, and two other co-defendants -- Hector Del Toro and Manuel Gonzalez -- were indicted in May 2002 in a bribery scheme. In a deal with prosecutors that spared his father a trial and risk of jail, Velella admitted that he accepted at least $137,000 in bribes from contractors from 1995 through June 2000.

Del Toro, 52, of Mount Vernon, former vice president of the state Housing Finance Agency, was sentenced to nine months in jail. Manuel Gonzalez, 67, a consultant for social service centers in the Bronx, was sentenced to eight months.

Wilkins' ruling stated: "The New York City Local Conditional Release Commission and the Department of Correction acted properly on Nov. 19, 2004, when they found the previous action of the commission to be invalid."

Guy Gets 2 Months of Jail Credit for 'Free'

By Stefan C. Friedman
New York Post
November 29, 2004

The two months Guy Velella spent outside jail on conditional release counts toward his sentence — meaning the disgraced former state senator could be out of jail as early as the first week of March should he be sent back to the slammer today.

The clock kept ticking away on Velella's one-year sentence when the Local Conditional Release Commission let him out of jail — even though his early release was later deemed invalid by the reformed panel.

"He's on probation status," a Department of Correction source told The Post. "So his time out counts toward his sentence."

The Republican Bronx pol began serving his 365-day sentence stemming from charges of bribery on June 21.

But after serving just 100 days, Velella was discharged on Sept. 28 by the LCRC, a largely unknown panel that was disbanded amid an uproar stemming from his early release.

The reconstituted panel voided the release earlier this month, calling it "invalid," and ordering Velella back to the clink.

Judge Lottie Wilkins will decide today whether or not Velella will return to Rikers.

Guy'll Be Home for Christmas? Not this One, Sez Judge

The Associated Press
New York Daily News
November 29, 2004

A judge ordered former state Sen. Guy Velella and four others to return to jail on Monday, but the defense promised an immediate appeal.

State Supreme Court Justice Lottie Wilkins denied a defense request for a delay. In a 12-page ruling, she ordered Velella, two co-defendants and two others to surrender by 5 p.m. Monday. Velella, 60, a once-powerful Republican, was imprisoned for three months after admitting his role in a lucrative bribery scheme.

The Local Conditional Release Commission ruled that Velella and his co-defendants were freed illegally in September after serving about three months of a one-year sentence.

Velella, a Bronx political leader and state senator for 28 years, has prostate cancer, diabetes and other physical ailments, as well as stress-related emotional problems, according to his lawyer, Charles Stillman.

Velella, his 90-year-old father Vincent, and two other co-defendants —— Hector Del Toro and Manuel Gonzalez —— were indicted in May 2002 in a bribery scheme. In a deal with prosecutors that spared his father a trial and risk of jail, Velella admitted that he accepted at least $137,000 in bribes from contractors from 1995 through June 2000.

Del Toro, 52, of Mount Vernon, former vice president of the state Housing Finance Agency, was sentenced to nine months in jail. Manuel Gonzalez, 67, a consultant for social service centers in the Bronx, was sentenced to eight months.

Velella Case Could Send Four Others Back to Jail

By Jennifer Steinhauer
The New York Times
November 25, 2004

Carlos Caba and Kamala Stephens have never met former State Senator Guy J. Velella. Until recently, they knew nothing about his celebrated tenure as a powerful Bronx rainmaker, or his humiliating fall from grace when he was convicted of conspiracy to accept bribes. Indeed, neither had even heard of the man until recently.

But their fates would become intrinsically linked: when a mayoral panel granted Mr. Velella release from jail three months into a yearlong sentence, it prompted such fierce criticism that Mayor Michael R. Bloomberg replaced all the panel's members. And that newly reconstituted board voted to return not only Mr. Velella to jail, but the four others it had released over the last year, including Mr. Caba and Ms. Stephens.

The fate of the two is, in some ways, a tale of the unforeseen consequences of a municipal scandal. Mr. Caba and Ms. Stephens were petty criminals, two of thousands whose transgressions landed them in city jails. But the mayoral panel's original members found their cases compelling enough that they granted them release from Rikers Island before their yearlong sentences were up, and the two went on trying to put their lives back together.

But now, they may be headed back to jail on Monday along with Mr. Velella and two others convicted with him.

Mr. Caba and Ms. Stephens were two of five people released from jail this year by the Local Conditional Release Commission, a once-obscure mayoral panel that considers which of the thousands of inmates placed in city jails each year should be released early.

Mr. Caba, 22, was arrested in October 2003 when he was caught carrying a bag of amphetamines near his apartment in upper Manhattan. He was convicted of criminal possession of a controlled substance and began to serve a one-year term at Rikers. Four and half months into his sentence, he found out that the release board was considering him for release, and he filed the needed papers.

Unlike Mr. Velella, who made tearful calls to the board complaining of his fate almost from the day he was incarcerated, Mr. Caba was resigned to his fate, said his lawyer, William D. Gibney of the Legal Aid Society. "I don't think his release was based on his adjustment to Rikers," Mr. Gibney said, "I think it was based much more on his mother's health conditions."

Mr. Caba's mother, Candida Nieves, has a rare autoimmune disease that limits her vision and leaves her in constant pain, and Mr. Caba, who agreed to be interviewed but then did not show up yesterday, spends much of his time caring for her, Mr. Gibney said.

He works part time for his building superintendent doing sheetrock projects, and attends the Katharine Gibbs School, where he studies computers, his lawyer said.

It was only a week ago, after weeks of media attention to Mr. Velella's case, that Mr. Caba got wind of his own entanglement in the scandal, when he received a letter saying he had until Monday to turn himself in.

Even when he received notice that he had to reapply, he was not overly concerned. Mr. Gibney said, "The people at probation downplayed the seriousness of it. They said, 'Don't worry, they're going after the big fish.' "

Mr. Caba nearly escaped the fate of the other four. The panel voted three to two to send him back to jail, while it voted unanimously to send the four others back.

In their first public meeting, the panel's new members seemed loath to be in the position of second-guessing the sentencing judges.

In papers filed to Mr. Gibney, the board members wrote, "He has presented no compelling reason to persuade us that he deserves any leniency from this commission."

Ms. Stephens, 28, who declined to be interviewed, was also trying to put her crime behind her, her lawyer said. Convicted of petty larceny after using her boss's credit card, she was sent to Rikers last March.

Her 5-year-old son went to live with her mother in Florida, and she was prepared to do her time, said her lawyer, Daniel Ferreira, until she got a call from Eileen Sullivan, the release commission's director, telling her that she had been selected for early release.

Ms. Sullivan may not have been aware that Ms. Stephens had been convicted 10 years ago, when she was a teenager, on a minor drug offense. According to the guidelines the old board operated under, those with prior convictions would not be considered for early release.

Ms. Stephens was released four months and two days into her sentence, and has about five weeks left to serve. But in those five weeks, the college courses she is taking would be jettisoned, her job as a wardrobe coordinator for music videos lost, and her son with whom she had begun to reconnect with would likely be sent back to Florida, her lawyer said.

In the view of Mr. Ferreira, who is working on Ms. Stephens's case pro bono out of pity, his client illustrates the intended purpose of the board, which is to reduce prison crowding by releasing deserving inmates.

Ms. Stephens first learned that she might be sent back when she was notified that she had to resubmit her application for release, and her probation officer reapplied for her.

"She is doing everything she has to do," Mr. Ferreira said. "She has never missed a probation appointment; there are no new arrests and no new troubles."

Just two hours before Mr. Velella and the four others were to return to jail on Monday, Justice Lottie E. Wilkins, a State Supreme Court judge, said she would take another week to consider whether the newly reconstituted panel acted legally in ordering them back to jail.

Guy's Jailhouse Return Delayed

By Dareh Gregorian and Stephanie Gaskell
New York Post
November 23, 2004

Guy Velella won a last-minute reprieve yesterday when a state judge delayed for one week the order that would have sent the once-powerful state senator back to jail.

"This will be a nice Thanksgiving in the Velella household," said his lawyer, Charles Stillman.

Stillman said he spoke with his client, who was "relieved" by the ruling, which came two hours before Velella was scheduled to surrender to authorities.

State Supreme Court Justice Lottie Wilkins issued a temporary restraining order that blocked the surrender and said she would rule by next Monday on the complex legal issue concerning the release of Velella and four other former convicts by a controversial commission.

Lawyers for both the city and the defendants were pleased by the delay.

Velella was set free Sept. 28 after serving just three months of a one-year sentence for bribery.

But amid a firestorm of criticism of the body that sprang him, the Local Conditional Release Commission, Mayor Bloomberg reconstituted the panel. A city probe found the commission had acted illegally when it let Velella and his cronies go free. On Friday, the new panel ordered Velella, his two co-conspirators, Hector Del Toro and Manny Gonzalez, and two others unconnected to the case who had also been released early by the old panel to surrender by 5 p.m. yesterday and be returned to Rikers Island.

At a hearing yesterday, Stillman appealed to Wilkins, saying there were "serious issues in our favor" that should be heard before anyone is ordered back to jail.

He said Velella "was released by a legally constituted board" that then "got fired."

Stillman said that if Velella and his co-conspirators are ordered back — and a court later finds in their favor on the legal issue — "How do we make that up to them?"

But the city argued that the clock on the defendants' sentences is running.

If it takes a month to resolve the thorny legal issue — while the former prisoners remain free — that would be one month they never have to serve, the city said.

"Every day they remain at liberty will count against their sentence," city attorney Paula Van Meter argued.

Stillman said the defendants would agree to stop the clock on their sentences while the underlying legal issues are resolved, but the city said the agreement would not be valid.

Guy Escapes Being a Turkey Day Jailbird

By Barbara Ross
With David Saltonstall
New York Daily News
November 23, 2004

Former State Sen. Guy Velella gets to spend Thanksgiving at home - but he could be unwrapping Christmas gifts behind bars.

A Manhattan judge gave the disgraced Bronx Republican a week-long reprieve yesterday as she decides whether to ship him back to Rikers to finish his one-year sentence for taking bribes.

"He was relieved," his lawyer, Charles Stillman, said after the hearing. "Although potentially temporary, at least it'll be a nice Thanksgiving for the Velella household - as nice as it can be under the circumstances."

An obscure city panel made the controversial decision to spring Velella from Rikers Sept. 29, after he had served just 100 days of a year-long term for taking $137,000 in kickbacks.

In the ensuing backlash, each member of the Local Conditional Release Commission was forced to resign by Mayor Bloomberg.

The newly configured board yanked the fallen pol's get-out-of-jail-free card Friday and ordered him and four others who won early releases back to the clink by 5 p.m. yesterday.

Velella - who was not in court yesterday - appealed the decision to Supreme Court Justice Lottie Wilkins.

She said she will rule on the legality of the new panel's decision by Monday.

City lawyers said the convicts belong behind bars while Wilkins decides their fates, arguing their jail terms technically could be reduced by the amount of time they are free.

"Every day that passes by is one day that takes away from their sentence," Deputy Corporation Counsel Stephen Kitzinger said.

The defense lawyers disagreed, but offered to have their clients sign statements saying they would "stop the clock" and serve every day of their sentences if they were free until Wilkins rules.

Velella, who was diagnosed last week with prostate cancer, was to decide this week whether to go for radiation treatment or surgery, Stillman said. Co-defendant Manuel Gonzalez also has cancer, his lawyer said.

Guy Will Fight for Freedom

By Stephanie Gaskell and Tatiana Deligiannakis
New York Post
November 22, 2004

Has prostate cancer. Former state Sen. Guy Velella isn't going quietly back to jail today.

Instead, he'll head to court this morning to fight an order by the Local Conditional Release Board to go back to Rikers Island.

Velella's attorney, Charles Stillman, told The Post that he would ask a judge and keep his client out of jail while he fights the order in court.

Velella was set free Sept. 28 after serving just three months of a one-year sentence for bribery.

The board that released him was dismissed after the city's Department of Investigation found that Velella was freed illegally. Mayor Bloomberg quickly replaced the board with five new members.

On Friday, the new board voted to send Velella and two co-conspirators, Manny Gonzalez and Hector Del Toro, back to the slammer. The three have until 5 p.m. today to surrender to authorities at 100 Centre St.

From there, they would be transferred back to Rikers Island where they would again go through standard admitting procedures, including psychological tests and a security evaluation.

There was no sign of Velella, 60, at his Bronx home yesterday. The shades were drawn all day but several family members, including his wife, Pamela, could be seen coming and going.

Immediately after Friday's decision, Stillman announced that Velella has prostate

Velella's Weekend Getaway

By Joe Mcgurk and Stefan C. Friedman
New York Post
November 21, 2004

Former State Sen. Guy Velella, facing a trip back to a Rikers Island jail cell in just two days, emerged from his Bronx home yesterday to take a spin in his neighbor's luxury car.

The disgraced 60-year- old pol — suffering from prostate cancer, according to his attorney — was seen in the passenger seat of his neighbor's Jaguar, as the duo left the Morris Park area shortly before noon.

Although the neighbor returned a short time later, Velella was not in the car.

He hadn't returned home by the time the sun set on what might be his second-to-last full day of freedom.

On Friday, Velella was ordered to return to jail — less than two months after a little-known city panel illegally set him free after just 100 days of a one-year sentence for taking bribes.

The newly reconstituted Local Conditional Release Board found that his earlier release was "invalid."

Velella must report to 100 Centre St. tomorrow at 5 p.m. to be taken back to Rikers — unless a judge grants a stay earlier in the day.

Although one source close to the board proceedings questioned why the 28-year state senator was allowed to avoid jail for the weekend, a Correction Department spokesman said that his agency was simply following the law.

"We had to allow for sufficient time for the parties to receive official notice," said Tom Antenen.

Guy's Gotta go Back to Rikers
 

Guy Velella

Former State Sen. Guy Velella's get-out-of-jail card is about to expire in two days. The new Local Conditional Release Commission gave Velella until 5 p.m. Monday to report back to jail - setting up a certain legal battle with the once-powerful, and now cancer-stricken, Bronx pol.

Velella, who was sprung from Rikers Island in September after serving just three months of a one-year rap for taking bribes, was "devastated" by the city's decision, said his attorney Charles Stillman.

"We will never give up in our efforts to gain justice for Guy Velella in a fair and equitable court of law," Stillman said.

Stillman added that the 60-year-old Velella learned Tuesday, during a visit to New York-Presbyterian Hospital, that he is suffering from prostate cancer.

"So now as he fights for his liberty, he must also begin to fight for his life," Stillman said of the former Republican powerhouse.

Velella and four other Rikers inmates, including two of his co-conspirators, Hector Del Toro and Manuel Gonzalez, were sprung this year by the then-obscure release board. In the following furor, the entire board was forced to resign by Mayor Bloomberg.

Yesterday the newly revamped commission declared all five releases "invalid," based largely on a finding by the city's Law Department that a legal majority of the old board was not present when the panel voted.

The new board also ordered all five ex-cons to surrender to Correction Department offices on Centre St. in Manhattan by 5 p.m. Monday.

A man delivered an envelope labeled Correction Department to the Velella household in Morris Park about 7 p.m. yesterday.

The Monday afternoon deadline should give lawyers for Velella and others plenty of time to seek a judge's stay - a move that, if successful, will likely transform the case into a long legal battle.

"Whatever litigation will be made," release board Chairman Daniel Richman said, "I imagine the Law Department will stand ready to defend the actions of this commission."

The decision yesterday capped a stunning saga that began in May when Velella pleaded guilty to taking $137,000 from contractors vying to repaint the Verrazano Bridge and fix up Bronx housing projects.

Though Velella resigned from office before pleading guilty, he is expected to get a state pension worth $80,000 a year.

Velella turned himself in at Rikers to begin serving his sentence on June 21.

Less than three months later - in a shocker revealed by the Daily News - Velella was out. He was driven home by the correction officers' union chief.

The release board, set up in 1989 as a way to reduce overcrowding, later revealed that Velella had called its offices regularly from a Rikers pay phone, often in tears, pleading for clemency.

Velella has remained cooped up in his Bronx home ever since, venturing out only for visits to his lawyer and, now, doctors.

A Correction Department spokesman noted late yesterday that the city has a special lockup for truly sick patients - at Bellevue Hospital.
 

Velella Back to Rikers

By Stefan C. Friedman and Murray Weiss
New York Post
November 20, 2004

Back to the slammer you go.

The newly reconstituted Local Conditional Release Commission yesterday ordered disgraced state Sen. Guy Velella and four others back to jail after finding that they were illegally released from Rikers Island nearly two months ago.

"It's our conclusion that the releases of all five individuals that we've considered here were invalid," said Daniel Richman, chairman of the commission. "They were done contrary to law."

Since Velella never reapplied to the commission after the city's corporation counsel originally ruled his release "invalid" on Nov. 8, no vote was taken among the five-person panel as to whether he should remain free.

Instead, Richman said a "consensus" was reached that Velella should be returned to his old digs at Rikers.

Velella and the four others — including two of the 60-year-old's accomplices in a scheme to take bribes to rig state government contracts — were ordered to report to 100 Centre St. at 5 p.m. Monday.

From there, they would be transferred back to Rikers Island, according to Department of Correction spokesman Tom Antenen. Upon return to Rikers, Velella will again go through standard admitting procedures, including psychological tests and a security evaluation.

Immediately following the decision, a lawyer for the Bronx pol announced that Velella, who suffers from diabetes, is now battling prostate cancer.

Lawyer Charles Stillman blasted the decision as "unjust and legally wrong," adding that the LCRC "exceeded its authority."

"We will never give up in our efforts to gain justice for Guy Velella in a fair and equitable court of law," Stillman said in a statement.

Reached by telephone, Stillman said he'd be in court Monday to try to convince a judge to grant a stay and keep Velella out of jail.

A process server delivered a letter from the Department of Correction to Velella's Bronx home last night.

As for what the disgraced 28-year state senator will do on what could be his final free weekend, Stillman said, "He'll be with his family trying to figure out how to deal with this medical issue."

"If he goes in, he's going to be away from his doctor, and cancer's not going to sit around and wait."

It was unclear if Velella would show up at court.

As for Velella's cohorts, both Manuel Gonzalez and Hector del Toro will also be heading back to the slammer. Like Velella, Gonzalez never reapplied to the commission. Del Toro's reapplication was turned down by a 5-0 vote.

Two other recently released inmates still under the rule of the LCRC, Carlos Caba and Kamala Stephens, also had their reapplications denied.

Caba, convicted of drug possession, was voted down 3-2, while the board unanimously turned down Stephens, who was convicted of forgery.

Richman, the newly appointed LCRC commissioner, was quick to note that all five cases are now in the hands of the Department of Correction, hoping to close the book on an embarrassing chapter in the little-known panel's history.

The original panel, which was disbanded more than a month ago, made a slew of mind-boggling goofs in granting release to Velella and others, a Department of Investigation report found.

Though a majority of the then-four-person panel was required to release an inmate early, only two voted to let Velella go 100 days into a one-year sentence.

Velella still has 265 days on his sentence, but it is not clear how long he would serve.

Gonzalez applied for release after serving only four days of a nine-month sentence when the law required that an inmate serve at least 30 days before applying.

Velella's Lawyer Says Controversy Over
Early Release Is Product of 'Political Forces'

By Jennifer Steinhauer
The New York Times
November 17, 2004

In a 22-page letter filled with sometimes fiery language, the lawyer for former State Senator Guy J. Velella chastised a mayoral board for forcing Mr. Velella to reapply for his release from jail several weeks after he was set free, and accused Mayor Michael R. Bloomberg of improperly injecting himself into the matter.

"You want him to apply for something he has already been granted, his freedom," Mr. Velella's lawyer, Charles A. Stillman, wrote in a letter sent to the city yesterday, "and you know to a moral certainty that he desperately wants it to continue."

Last week, the city's Law Department determined that a panel had acted illegally in releasing Mr. Velella from Rikers Island three months into a yearlong sentence for conspiracy to accept bribes. That panel - known as the Local Conditional Release Commission - then ordered Mr. Velella and four other people who were released over the last year to reapply for their release, while remaining out of jail. Those applications were due yesterday, but Mr. Velella's lawyer refused even to submit an application.

After news of Mr. Velella's release was made public in September, Mr. Bloomberg ordered an investigation into the panel's actions, forced the resignation of its four members and reconstituted the board by appointing five new members. Those members will decide as early as Friday whether to uphold the former board's decision to release Mr. Velella and the other four former inmates, or to move to send them back to Rikers Island.

In his application to the panel, Mr. Stillman said it had "no legal authority" to revisit Mr. Velella's release, and chalked up the board's position to "a product of political forces."

Mr. Stillman made numerous references to Mr. Bloomberg throughout the letter, suggesting that he had tainted the process. "How can the public have any confidence in the impartiality of the newly reconstituted L.C.R.C. when the mayor who appointed all of its members already has told the public that Mr. Velella's release was invalid and that he should be returned to jail?"

Mr. Bloomberg has actually not taken a position on whether Mr. Velella should go back to jail, but he has said many times that the former senator should not have been released early.

The City Department of Investigation recently concluded that the commission had violated procedures when it released Mr. Velella and most of the others whose applications it had considered, determining, for instance, that the commission often did not have enough members present to vote to release the inmates.

Of the two men who were also jailed in the Velella case, one of them, Manuel Gonzales, also declined to refile an application for his release, because, as his lawyer, Frank A. Ortiz, said in a letter to the board, "the current L.C.R.C. does not have the power to review the decision of the prior L.C.R.C. of Aug 6, 2004."

It could not be determined whether the other man convicted in the case, Hector Del Toro, had filed a new application for release.

Of the thousands of inmates considered by the board each year, very few are granted early release. Only two other people besides those jailed with Mr. Velella made the cut last year: Kamala Stephens, 28, who was jailed in 2003 for stealing thousands of dollars from her former employer; and Carlos Caba, who served time recently for drug possession.

Ms. Stephens, reached by telephone, declined to comment on her case.

But for both former inmates, who must have thought their lives were on track to move on, the developments stemming from Mr. Velella's release could only have surprised and stunned them.

"I think it is terrible," said Stephanie Schwartz, Mr. Caba's lawyer. Ms. Schwartz said Mr. Caba, 23, had thought his crime was behind him, and was working as an assistant to a building superintendent and taking care of his infirm mother. "She relies on him because her eyesight is failing," said Ms. Schwartz in a telephone interview. "It is just the two of them." As for Mr. Velella, "I doubt he had heard of him."

A person with knowledge of both cases said the two were rare models of the type of person who should get early release from the board, which was created in the 1980's to ease prison overcrowding, no longer an issue in New York State.

The two did not file multipage appeals like Mr. Velella's. They each sent a one-page letter to the board the day after the request last week.

Time Running out for Free Bird Guy

By Stephanie Gaskell
New York Post
November 16, 2004

Will he or won't he? Today is the deadline for former state Sen. Guy Velella to make a final plea to stop a city panel from sending him back to Rikers Island.

Velella was released Sept. 28, just three months into a one-year sentence for bribery.

The once-obscure Local Conditional Release Board set Velella free and now a newly appointed board will decide his fate.

The city's Law Department ruled that the releases were illegal because they didn't follow the timetables set by law.

Velella and two co-conspirators, Manny Gonzalez and Hector Del Toro, have until the end of the day to resubmit their applications for early release.

Jerry Alpin, a spokesman for the board, refused to say if any applications have been received.

He said he wouldn't say anything until a decision is made, perhaps when the board meets again Friday.

But Velella has not reapplied for early release yet, according to his lawyer.

"We have until the end of the day tomorrow," attorney Charles Stillman said yesterday.

In his first application, Velella wrote an emotional letter to the board claiming that he was "very sad and depressed" behind bars. "I cannot take this much longer," Velella wrote on Sept. 16. "I cry in my cell at night before I try to sleep."

Del Toro has fired his lawyer, Steven Kartagener, and is apparently representing himself in the case. He could not be reached for comment. Gonzalez's lawyer did not return repeated calls for comment.

Each served just a couple of months of a nine-month sentence.

Glum Guy Gathers up Lawyers as Jail Looms

By Stephanie Gaskell and Dan Kadison
New York Post
November 10, 2004

Former state Sen. Guy Velella looked like a man bearing a burden yesterday as he left the Park Avenue offices of his lawyer — where he'd rushed first thing in the morning after getting the news that he's one step closer to going back to the slammer.

Velella and his wife, Patricia, arrived at the offices of lawyer Charles Stillman at around 9 a.m. and stayed at least an hour and a half before leaving in his chauffeured Lexus.

Velella didn't respond to a reporter who asked if he was worried about returning to Rikers Island.

The newly constituted Local Conditional Release Commission ruled on Monday that actions of its predecessor were "invalid," including the decision to spring the politician and his two bribery co-defendants from Rikers after they had completed only a short portion of their sentences.

Velella has until Nov. 16 to submit a new application and try to convince the current board members to let his early release stand.

"We are at this point considering all of our options," said Stillman after meeting with his client. "Between now and the 16th, we'll make our final decision and do what we feel is appropriate to protect our client's interest."

He said he wasn't sure what his client would do.

"If I knew, I would tell you," he told The Post.

The commission meets Nov. 19 to decide the fate of Velella as well as Manny Gonzalez and Hector Del Toro, who were involved in the bribery case.

Freeing Ex-Senator Violated the Law, City Panel Is Told

By Jennifer Steinhauer
The New York Times
November 9, 2004

The New York City Law Department has determined that an obscure mayoral panel acted illegally when it released former State Senator Guy J. Velella from jail three months into his yearlong sentence, paving the way for Mr. Velella and four other Rikers Island prisoners who were released by the commission this year to be sent back to jail, the commission announced yesterday.

Mr. Velella and the others have been informed that they must reapply for early release by next Tuesday, and that three days later the board will decide whether to grant the requests. If it does not, the five are likely to be ordered back to jail.

The September decision to let Mr. Velella out of jail was an embarrassment for Mayor Michael R. Bloomberg, who said he had never before heard of the panel, the Local Conditional Release Commission, even though his office appointed two of its four members. Mr. Bloomberg quickly ordered an investigation and forced all the commission members to resign, replacing them with the five members who would consider Mr. Velella's new application.

The commission had worked in relative obscurity for years in the depths of the City Department of Probation, considering whether to grant early release to first-time offenders serving short sentences in city jail.

Its release of Mr. Velella, who was sentenced to Rikers Island for conspiracy to commit bribery, ignited outrage among elected officials and others who thought it smacked of favoritism for a politically connected former lawmaker and his associates.

Mr. Velella, a Republican, and two other inmates connected to his case, Manual Gonzales and Hector Del Toro, were 3 of only 13 people released by the panel in the last six years; thousands of inmates have been denied such release.

The City Department of Investigation determined last week that the commission had violated numerous procedures when it released Mr. Velella and most of the others whose applications it had considered. The department found that the commission often did not have the necessary quorum of three members present when it granted an early release, and that the panel allowed Mr. Velella to make a second application for release too soon after it rejected his first application; state rules require a 60-day period to reapply.

Based on those findings, the city's Law Department determined that Mr. Velella, Mr. Gonzales and Mr. Del Toro were released on applications that were invalid, and the new members of the commission have concurred.

"The findings in the Department of Investigation report and the legal opinion that we've been given by the Law Department make at a minimum a prima facie case for the legal invalidity of all releases done as a result of illegal voting procedures by this commission," said Daniel C. Richman, the new chairman of the commission.

Yesterday, the new commissioners sent letters to the five people released this year, notifying them that they must reapply. The other two cases concern a person who served time for criminal possession of drugs and another who was convicted of forgery.

If the commission determines that the release of these former prisoners should not be upheld, they are likely to be told to turn themselves in. However, lawyers for at least two of the three released in the Velella case said they would fight any attempt to return their clients to jail.

"Guy Velella did absolutely nothing wrong to obtain his conditional release," said Charles Stillman, Mr. Velella's lawyer. "The fact of his eligibility to be released in as little as 60 days was fully known to the district attorney and the court. Every step taken on his behalf was in accordance with procedures set down by the Local Conditional Release Commission and oral advice from its senior staff. Guy Velella has paid and is paying for his wrongdoing."

Frank Ortiz, who represents Mr. Gonzales, said: "Every time you don't like the way a decision comes out, do you put in a new commission to change it?" Mr. Del Toro's lawyer, Steven R. Kartagener, had no comment.

Perhaps hinting that the commission has already determined how it will vote on at least some of the cases, Kerri Martin Bartlett, a member of the commission, said, "It is fair to say these matters will be litigated."

Creation of the boards around the state was authorized in 1989 to help relieve jail overcrowding, a problem that has since abated. Some lawmakers and other elected officials, including Mr. Bloomberg, would like to see the boards abolished.

Prior court cases suggest that New York City could prevail in sending Mr. Velella back to jail.

In one recent case, an inmate's application for early release in Rensselaer County was initially rejected, but the inmate reapplied less than 60 days later and won release. Because the law states that inmates must wait 60 days after being rejected to apply again, the State Supreme Court found the release invalid and the inmate was sent back to jail. Mr. Velella and Mr. Del Toro each reapplied for release shortly after their first requests were denied.

In a case resembling Mr. Velella's, a member of the commission in Livingston County decided to release a politically connected inmate without consulting the panel's two other members. In that case, the inmate was returned to prison.

The members of the New York City board said yesterday that they would discontinue the practice of automatically considering every prisoner who qualifies for release and instead require an application from anyone who wants consideration. That process is actually required by statute, the commissioners said, yet one more way in which the former commissioners failed to observe the law.

Without having applications and supporting materials, the board members said, they had nothing to base their decisions on outside of what the sentencing judge already used in the case. To make the process more open to those without education, connections or legal savvy, Mr. Richman said, the commission would reach out to jail inmates to let them know the commission exists and how to apply. "We suspect what will happen is that we will get fewer applications," Ms. Bartlett said.

Yesterday, Mr. Bloomberg said he did not want to prejudice the board's decision. "I didn't think he should have been released to begin with," he said of Mr. Velella, "because I think elected officials should certainly not be treated better than anybody else."

Velella Closer to Jail

By David Seifman
New York Post
November 9, 2004

A city panel yesterday paved the way to return disgraced Bronx state Sen. Guy Velella to a solitary cell at Rikers Island by Christmas.

The newly constituted Local Conditional Release Commission ruled everything its predecessor did was "invalid," including the early release of Velella, two co-defendants and two other unidentified inmates.

As a result, all five have to reapply by Nov. 16 to have any hope of staying free. The panel said it would render a decision Nov. 19.

In a 15-minute public meeting, the five commission members indicated Velella and the others would have to make compelling cases to avoid being put back in the clink.

The panel's new chairman, Daniel Richman, took the position that Velella, a 28-year state senator, and the others should never have been out in the first place.

"This commission would not make a decision, per se, to re-incarcerate anyone," he said. "This commission would make a decision that previous actions by this commission were in error and invalid. At that point, the commissioner of corrections would have actions he would need to take to deal with individuals who were out on the street without legal authorization."

In a finding released yesterday, the city's Law Department determined the release of Velella and co-conspirators Hector Del Toro and Manny Gonzalez "had no legal basis." Gonzalez applied for release after serving only four days of a nine-month sentence. The law requires that an inmate serve at least 30 days before applying.

Velella and Del Toro also were sprung in a vote where only two of the three required commissioners were present. Velella got out 100 days into his one-year sentence, which began June 21.

The Law Department also pointed out inmates improperly freed by commissions in upstate Livingston and Rensselaer counties were sent back.

Charles Stillman, Velella's lawyer, issued a statement saying his client "did absolutely nothing wrong to obtain his conditional release" and had relied on oral advice from the commission's senior staff.

"The fact of his eligibility to be released in as little as 60 days was fully known to the district attorney and the court," said Stillman, who added a court fight seems inevitable.

Guy Might Hafta Cry up the River

By David Saltonstall
New York Daily News
November 9, 2004

Now he really has a reason to cry.

Former Sen. Guy Velella could be headed back to jail by the end of the month, after a new board invalidated his early release from Rikers Island - granted in part because of Velella's tearful pleas from jail.

Yesterday's decision by five new members of the city's Local Conditional Release Board gave the Bronx Republican and two of his co-conspirators - also sprung early - until Nov. 16 to argue why they should not go back to the slammer.

If they fail to reverse the new decision - either by appealing to the board or in court - all three could be ordered back to Rikers as soon as Nov. 19. "That is a possibility," new board chairman Daniel Richman said.

The decision marked the most dramatic turn yet in a case that has raised questions of influence peddling and exposed how the city's prior system for handling early release requests from city inmates was slipshod.

All four members of the previous board were forced to resign amid the furor, setting up yesterday's reconsideration of the controversial get-out-of-jail-free passes by five new members installed by Mayor Bloomberg.

Velella and his co-conspirators, Manuel Gonzalez and Hector Del Toro, all were sentenced to jail terms of one year or less after admitting to a bribery scheme aimed at steering state contracts to companies that hired Velella's law firm.

Gonzalez was sprung first by the old board on Aug. 24, just two months into an eight-month sentence. Velella was sent home next on Sept. 28, 12 days after writing to the board, "I cry in my cell at night."

Del Toro was freed the same day, after board members reasoned he was a bit player in the bribery scheme and should not serve any longer than Velella.

But an inquiry by the city's Department of Investigation revealed that all three men were freed illegally because not enough commission members were present during voting or because of other procedural goofs.

Lawyers for all three men strongly suggested they would challenge any effort to send their clients back to jail. Why should they suffer, their lawyers argued, because the old board was inept?

"Guy Velella did absolutely nothing wrong to obtain his conditional release," Velella attorney Charles Stillman said.

City Investigators Order Review of the Early Release of Velella

By Kevin Flynn
The New York Times
November 5, 2004

The little-known panel that released former State Senator Guy J. Velella from jail three months into his one-year sentence routinely violated state law in the way it freed inmates, and its new members should review the legality of many of its releases, including Mr. Velella's, city investigators concluded in a report released yesterday.

The Department of Investigation, ordered by Mayor Michael R. Bloomberg to examine the release of the once-powerful but disgraced Bronx politician, described the Local Conditional Release Commission as a slipshod, ill-informed panel that failed to maintain basic records and was largely ignorant of the law under it which it operated. Those deficiencies were apparent in the Velella case, according to investigators, who said the four-member panel voted to release him with too few of its members present and too soon after it had rejected his first application to get out of jail.

In addition, investigators said the vote to free Mr. Velella, who had pleaded guilty in a bribery conspiracy case, came only days after he had hired the husband of one of the panel members as a legal consultant to advise him on the panel's procedures.

The panel member, Jeanne Hammock, who had voted to reject Mr. Velella's release the first time, did not attend the second vote that freed him and told the panel's staff members that she would be out of town. The report did not say how much Mr. Velella paid Mrs. Hammock's husband.

Mrs. Hammock, the three other members of the panel and its executive director have resigned since Mr. Velella was released in September. A new panel appointed by Mr. Bloomberg was scheduled to meet this morning to consider whether it can and should overturn the release of Mr. Velella and two co-defendants.

The 32-page report by the Department of Investigation does not take a position on that question. It also does not suggest that any of the actions of the board were intentionally improper. The investigation commissioner, Rose Gill Hearn, said that it was up to the new panel to decide Mr. Velella's fate, and that it was up to the Manhattan district attorney's office, which is conducting a criminal investigation, to decide whether prosecution is warranted.

But the report does depict a panel - it is charged with granting early release for eligible inmates - that had little grasp of the voting rules by which it was supposed to function. Though state law requires at least three members to be present to vote on an inmate's application, the investigators found that it almost never met as a group and that a single commissioner often made the decision to reject an application.

"They said they just did not know what the law and what the rules were," Commissioner Hearn said.

One member, when asked whether she had ever read Article 12, the state law that set the board's powers and responsibilities, told investigators, "I don't even know what you're talking about."

The report noted that the panel was supposed to get legal guidance, among other things, from its $135,000-a-year executive director, Louis Gelormino. Instead, the report said Mr. Gelormino did little work for the commission and "professed ignorance of the commission's practices."

Mr. Gelormino, who assumed the job in 2002 after being moved from a deputy commissioner's post in the city's Department of Probation, told investigators that he had never been given a statement outlining his responsibilities, according to the report.

Very few people in the city, including Mr. Bloomberg, had heard of the release commission before it freed Mr. Velella. Such panels were created under a state law adopted in 1989 authorizing them to release individual prisoners to help with prison overcrowding. The need for such releases shrank as prison populations declined, and Mr. Velella and his co-defendants were 3 of just 13 people released by the New York City panel in the past six years.

A lawyer for Mr. Velella, Charles Stillman, said the city investigation report "demonstrates that Guy Velella did nothing wrong in seeking and obtaining release from his imprisonment."

Mr. Velella, who had been jailed at Rikers Island, was refused release when his case was first considered during a rare meeting of the board in August. The panel's chairman at the time, Raul Russi, told investigators that he called the meeting because Mr. Velella's case was so prominent. Three commissioners attended, and all voted to keep Mr. Velella in jail, despite a letter-writing campaign by politicians and union leaders. Two of the panel members voted to free one of his co-defendants, Manuel Gonzalez, because, they told investigators, they felt he had been least culpable.

Mr. Russi did not vote that time, the report said, because he had met Mr. Gonzalez once at a restaurant to discuss the possibility of merging nonprofit groups. He stayed during the deliberations, though, and told the two other members that he favored the release, according to a statement that a panel staff member, Eileen Sullivan, gave investigators.

Ms. Sullivan said Mr. Velella became angry when he heard that Mr. Gonzalez had been released and, in several phone calls and one letter to the panel, said he was having difficulty breathing, was sleeping fitfully, and feared having a heart attack in jail.

"I truly feel as if I am losing my mind," he wrote in a Sept. 16 letter to the panel.

In a letter dated the following day, Mr. Velella's lawyer told the panel that Edward Hammock, a lawyer and former state parole board chairman - and, as it turned out, the husband of commissioner Jeanne Hammock - had been hired to help on the case.

Mr. Hammock did not return a call seeking comment. Ms. Hearn would not say whether Mr. Hammock had been interviewed. Mrs. Hammock told investigators that she had no role in her husband's decision to take on the case.

On Sept. 22, Mr. Russi reconvened the panel to reconsider Mr. Velella's application for release. Mr. Russi said he had changed his mind on freeing Mr. Velella because he was "a broken man" and feared that he might harm himself. Ms. Sullivan, who took most of the phone calls from Mr. Velella, told investigators that she did not think he was suicidal and that she had never told Mr. Russi otherwise.

Ms. Sullivan said that several days earlier Mr. Hammock's wife had recused herself from taking part in the Velella matter. Mrs. Hammock said that she never actually recused herself but simply told Ms. Sullivan that she would not be at the meeting.

Only two members of the commission were present for the meeting, according to the report, in violation of the state law. To solicit a third vote, the report said, Mr. Russi said he called another commissioner, Amy Ianora, at home, where she agreed to support Mr. Velella's release. Ms. Ianora, though, said the phone call actually happened a day or so after the meeting, according to the report.

Yesterday's report recommended that Mr. Russi step down from his remaining city post, a seat on the Board of Correction, which he did. He released a statement defending the work of his panel.

"I maintain that, in its decision-making, the commission tried to be fair and equitable as the report acknowledges," he said.

Ms. Hearn credited Mr. Russi with being a hard worker but said she had recommended that he step down because it was an important post and he had not been able to steer the release panel in the "proper direction."

"He was not making himself aware of the rules and the laws," she said, "and as a result we have a heck of a mess on our hands."

                                  I'm Stir-crazy! Velella Wrote

By David Saltonstall
New York Daily News
November 5, 2004

Former State Senator Guy Velella begged an obscure city board to free him from jail, saying, "I truly feel as if I am losing my mind."

"I cannot take this much longer," the once-powerful Bronx Republican wrote from his Rikers Island cell on Sept. 16.

"I ask this board to not only release me for my freedom and sanity, but allow me to go to my family," said the previously undisclosed letter.

Release him is exactly what the Local Conditional Release Board did six days later - although not before members violated several procedural laws that are supposed to govern their actions, a scathing new report said yesterday.

The inquiry by the city's Department of Investigation found that commission members rarely met in person to vote on inmate applications - as required by state law - and routinely told inmates they could reapply for consideration after 30 days, rather than the legally required 60.

Both laws were violated in Velella's case, raising serious questions about the legality of his release - as well as hundreds of other inmate appeals handled by the board over the years, DOI officials said.

"It's not good news, certainly, that a public commission has veered off course - if it had ever been on course," DOI Commissioner Rose Gill Hearn said.

The board voted Sept. 22 to spring Velella from Rikers after he served just three months of a one-year sentence for taking bribes.

Yesterday's DOI report stopped just short of saying Velella should be returned to the slammer. It also steered clear of alleging any criminal wrongdoing, an issue Manhattan District Attorney Robert Morgenthau is investigating separately.

But the DOI did recommend that "appropriate legal...action be taken" by the commission's new board members, who are to meet today for the first time. The board's previous members all resigned amid the furor over their decision to release Velella, who walked out of Rikers Sept. 28.

The DOI report also recommended that former board chairman Raul Russi be asked to resign from the city's Board of Corrections, a separate post, which Russi did late yesterday.

New board chairman Daniel Richman said quick action on the Velella case is unlikely. But he told the Daily News yesterday he had already asked city lawyers to advise him on the board's legal options regarding the Bronx pol.

Velella's lawyer released a statement yesterday saying that Velella "did nothing wrong in seeking and obtaining release" from jail.

"He has and will continue to fully comply with the requirements of that conditional release," attorney Charles Stillman said.

In his bid for release, Velella also pledged to set up what he dubbed The Fallen Idols Program for high-

profile, white-collar crooks, according to the DOI report.

Some of the program's mantras, Velella wrote the board from jail, might include "You are not above the law," "There is no Club Fed" and "Your friendships will go just so far."

"If my punishment and fall is to be a deterrent to future white collar crime," Velella wrote, "[this program] will be perhaps the best benefit of this nightmare."

'Fall Guy' Report Could Mean Jail

By David Seifman
New York Post
October 30, 2004

The fate of former state Sen. Guy Velella could be decided as early as next week, when investigators issue a report on his release from Rikers Island. Sources said the Department of Investigation is wrapping up its findings in the case and should make them public next week.

The report could determine whether Velella — sprung three months into a one-year sentence — gets sent back to jail by the same obscure commission that set him free.

Two co-defendants who got out early, Hector Del Toro and Manny Gonzalez, could also find themselves back behind bars. All were convicted of conspiring to take bribes to rig government contracts in the Pataki administration.

Guy's Friends in Albany Focus of Da Probers

By Joe Mahoney and Barbara Ross
New York Daily News Staff Writers
October 22nd, 2004

Investigators probing former state Sen. Guy Velella's early release from jail are trying to determine if Velella's former colleagues in Albany pressured a local parole board to give the Bronx Republican his freedom.

A source familiar with the probe told the Daily News that subpoenas have been issued seeking phone records of some GOP lawmakers to determine if any of them contacted members of the Local Conditional Release Commission before it sprung Velella.

Velella was serving a one-year sentence at Rikers Island on a bribery conviction when he was released only three months into his sentence. Normally, he would have had to serve eight months before becoming eligible for parole.

Commission Chairman Raul Russi told reporters at the time that the group sprung Velella because he was despondent and suicidal.

That decision, now the subject of a probe by the city Department of Investigation and the Manhattan district attorney's office, already has led to the resignation of all four commission members and its executive director.

Many of Velella's former colleagues in the Legislature have openly supported him since his indictment last year. Some even took thousands of dollars from their campaign coffers to help pay his legal bills. Sen. Dale Volker (R-Depew) was among 36 Velella supporters who wrote to Russi pleading for Velella's early release.

Spokesmen for Volker and for Senate Majority Leader Joe Bruno (R-Rensselaer) said yesterday the lawmakers have not received any subpoenas.

Volker, a former cop, is the powerful chairman of the Senate Codes Committee, which oversees all law enforcement legislation and has influence on how law enforcement programs are funded.

At issue is a $24 million grant given to a nonprofit Bronx agency run by Russi. The grant was awarded Sept. 22 - the same day that the commission accepted Velella's second application for freedom, according to the source familiar with the probe.

The contract, awarded by the Department of Homeless Services, gives the Bronx agency $4.9 million a year for the next five years to provide shelter for homeless families. A spokeswoman for Homeless Services said the contract was not awarded through a strict competitive bid but through a "request for proposal" process.

Citing the ongoing investigation, she declined to provide details on why Russi's group - which pays Russi $125,000 as its executive director - was deemed more qualified than others to get the grant.

                       Jail Didn't Have Velella on Suicide Watch

By Mike Mcintire and Kevin Flynn
New York Times
October 21, 2004

Former State Senator Guy J. Velella was not classified as a suicide risk while at Rikers Island, according to the City Correction Department, a disclosure that casts doubt on the main reason cited for releasing him just three months into a one-year jail sentence for conspiring to accept bribes.

Mr. Velella was never placed on a suicide watch during his three months at the jail, where he spent most of his time living in a building that also houses the infirmary, said Thomas Antenen, a spokesman for the department.

In addition to caring for sick inmates, the 445-bed North Infirmary Command houses people who, because of news media interest or celebrity status, are considered vulnerable to abuse if they are held in the general jail population.

Members of the Local Conditional Release Commission have said they voted in September to release Mr. Velella early because they feared that he might try to kill himself.

A City Council report released Monday said that during the commission's deliberations, its chairman at the time, Raul Russi, raised the suicide issue as a reason for freeing Mr. Velella, a once-powerful Bronx Republican who Mr. Russi said was making tearful telephone calls to commission staff members begging to be let out of jail.

"Mr. Russi expressed his concern that Guy Velella was going to commit suicide if not released and stressed that Mr. Velella was not a threat to the public," the report said, and added that the members decided to release him because he was "a broken man" and that "they were worried he might commit suicide."

Mr. Antenen said the absence of a suicide watch, which involves constant, around-the-clock monitoring by a correction officer, does not preclude the possibility that Mr. Velella received some less intensive form of mental health evaluation or treatment. Mr. Antenen said he could not comment on whether that was the case, saying it would violate Mr. Velella's privacy.

A request for a suicide watch is typically made by the court when someone enters prison, often at the urging of an inmate's lawyer. After that, an inmate may be placed on a watch if something is noticed during the medical screening that everyone receives upon entering jail, correction officials said.

Later, if information from other inmates or correction officers suggests that an inmate is distressed, the person's mental state may be re-evaluated.

Charles A. Stillman, a lawyer for Mr. Velella, did not answer a message left at his office yesterday.

The contradictory information about Mr. Velella's state of mind while at Rikers is the latest wrinkle in an already confused accounting of why the commission decided to approve his application for release.

The City Council's report found that the commission's vote was likely invalid, since state law requires that three of its four members be present for a vote, but only two members, Mr. Russi and Irene Prager, were there. Mr. Russi later telephoned a third member, Amy Ianora, who agreed with the arguments to release Mr. Velella and a co-defendant in his corruption case, Hector Del Toro. The fourth commission member, Jeanne Hammock, was absent and had abstained.

All four commissioners have since left the panel in the wake of public anger over Mr. Velella's early release, which is being investigated by the City Department of Investigation and the Manhattan district attorney's office.

The Council's report concluded that in addition to failing to assemble a quorum, the commission may have violated the state's open meeting law by not providing advance public notice.

It is also unclear whether Mr. Velella, whose first application for early release was rejected in August, waited the required 60 days before renewing his application for the commission's September meeting.

Councilwoman Yvette D. Clarke, the chairwoman of the Committee on Fire and Criminal Justice Services, said she believed there were grounds to reverse the commission's decision. It is unclear who could try to take such action and whether it would be successful.

The commission and others like it around the state were created under a law adopted by the Legislature in 1989 as a way to relieve prison overcrowding and save money. The new chairman, Daniel C. Richman, a professor at Fordham Law School, said there was little case law to guide the city in its deliberations on the commission.

There is precedent for overturning decisions of the commissions. In 2000, the New York City commission released Mark Gastineau, a former Jets football player convicted of assaulting his wife, but reversed itself two weeks later and ordered him returned to jail.

Earlier this year, a district attorney in upstate Rensselaer County went to court and won a reversal of a commission's decision to free Mary Beth Anslow, who had been jailed for operating an illegal day-care center where a 3-month-old girl died. Anger at the release of Ms. Anslow three months into her one-year sentence caused the Legislature to consider a bill, supported by Mr. Velella, that would have abolished conditional release commissions. The bill never passed.

Public Panel Will Weigh Fate of 'Free Velella' Board

By Fredric U. Dicker
New York Post
October 20, 2004

ALBANY — Assembly Speaker Sheldon Silver yesterday announced public hearings on the Local Conditional Release Board, which granted former Sen. Guy Velella a controversial get-out-of-jail card from Rikers Island.

Silver (D-Manhattan), who earlier this year killed a measure to abolish the board after it passed the GOP-controlled Senate, said hearings would be conducted in New York City on Nov. 16 and in Albany on Dec. 14.

"These hearings will focus on how the commissions have operated over the past 15 years and, if they are to be continued, how they can be reformed to ensure that they operate consistently, transparently, lawfully and in the public interest," said Silver.

The City Council Monday disclosed that the once-powerful Velella, who was released after only three months of a one-year sentence for bribes, may have been illegally released from jail last month because the board voted to do so without a quorum present.

Yvette Clarke, chairwoman of the City Council's Fire and Criminal Justice Committee, said Velella could find himself back behind bars if the board acted illegally.

Mayor Bloomberg last week fired all four board members. Manhattan DA Robert Morgenthau is investigating the board's action.

The Senate, including then-Sen. Velella, voted to abolish the boards earlier this year after a Rensselaer County inmate — serving time for endangering the welfare of a child — was released by a local board after just three months.

Vote Releasing Velella May Be Illegal, Council Report Says

By Mike Mcintire
New York Times
October 19, 2004

The little-known commission that released former State Senator Guy J. Velella from jail most likely violated state law by voting without enough of its members present, an informal practice that it apparently followed for years, according to a City Council report released yesterday.

The Council report, based largely on the accounts of two former members of the Local Conditional Release Commission, throws into question the legality of Mr. Velella's release three months into a one-year sentence. Daniel Richman, a Fordham law  It also provides the most detailed picture yet of the professor who has been named    workings of the commission, a mayoral-appointed panel the new chairman of the panel     that operated with little oversight for 15 years. Now,   freed reformer State Senator Guy through, its decision to release Mr. Velella has prompted
Velella                                         
calls that it be abolished, led to the departure of its
members and executive director, and brought inquiries by the city and the Manhattan district attorney.

In fact, the Council report reveals that Raul Russi, the chairman at the time, warned the commission members that releasing Mr. Velella, a powerful Republican from the Bronx, could prove controversial, but that he was worried that the disgraced former senator might commit suicide if forced to remain at Rikers Island.

Still, the political storm ignited by his release appears to have caught the commission off guard; one member told Council investigators that she had been "unaware of the extent of Mr. Velella's public prominence."

Although three of the commission's four members are needed to act on an inmate's application for release, the report found that just two members met on Sept. 22 and voted to release Mr. Velella and a co-defendant in his corruption case, Hector Del Toro. One of those members, Mr. Russi, later telephoned a third member, Amy Ianora, who concurred with the decision; the fourth member abstained.

After a hearing on the report yesterday at City Hall, council members said they believed there was legal cause to reverse the early release of Mr. Velella and his co-defendants.

"We believe that it's likely that there are grounds for either the commission or the courts to really annul the release of these gentlemen," said Yvette D. Clarke, a Brooklyn Democrat who is chairwoman of the Committee on Fire and Criminal Justice Services.

At the same time, Ms. Clarke said, the Council inquiry has turned up no evidence of what she called "widespread collaboration for corruption in this case." She suggested that while the commission may have acted imprudently, there did not appear to have been a conspiracy involving all four of its members to skirt the law to benefit Mr. Velella.

The crux of the Council's report is its determination that the commission probably broke the law when it failed to assemble at least three members. In addition to Mr. Russi, the only other member present was Irene Prager. Another member, Jeanne Hammock, abstained and was not in attendance, and neither was the fourth, Ms. Ianora.

That even a few of the commission's members met in the same room seems to have been a break from its custom. The report said that for years staff members simply circulated standard forms to the members, who checked a box indicating approval or disapproval of a release without ever getting together for a formal vote. Over the last five years, the commission has released 15 people out of thousands of eligible inmates.

Yesterday, Daniel C. Richman, a Fordham Law School professor tapped by Mayor Michael R. Bloomberg to take over as commission chairman, said he concurred with the Council's view that state law dictates "there ought to be three members sitting there voting" when a release is considered.

"My reading of the statute seems to suggest that there should be three people present," Mr. Richman said, adding that not having a quorum, "doesn't sound like a good idea, it doesn't sound like the way a commission ought to be run, it doesn't sound like the way I would run the commission."

The Council chose not to subpoena the commission's former members after being told that doing so could jeopardize the criminal inquiry already under way, so it was left to Mr. Richman to answer questions from council members, who expressed anger at the release of Mr. Velella and frustration over their inability to get clear answers to how it happened.

Councilman David Yassky, a Brooklyn Democrat, said Mr. Velella's early release confirmed for many New Yorkers "their most cynical suspicions about government." He belittled the rationale offered by Mr. Russi that he felt sorry for Mr. Velella, and noted that no similar explanation has been offered for the commission's decision to release Mr. Velella's two co-defendants, Mr. Del Toro and Manuel Gonzalez. The commission voted to release Mr. Gonzalez a month earlier, in August, at a meeting whose legality has also been called into question.

"It seems to me unlikely that the three people most worthy of compassion in Rikers Island were these three people who happened to be co-conspirators in this bribery case," Mr. Yassky said. "I think there is very, very good reason to suspect that something else went on here."

Mr. Richman studiously avoided commenting on the commission's past actions, but he said he was attuned to criticism that the commission, created in 1989 as a way to relieve prison overcrowding and save money, has devolved into little more than an escape hatch for the famous and well-connected.

Mr. Richman, who was questioned by council members on how he was selected to replace Mr. Russi, said he had two brief telephone conversations with Mr. Bloomberg, as well as discussions with Rose Gill Hearn, the Department of Investigation commissioner. At one point, after saying that the mission he was given was to "keep this thing out of the newspapers," Mr. Richman caught himself and did some backpedaling.

"Actually, no, that wasn't the mandate I was given," he said. "My goal, personally, is to keep it out of the newspapers. I would like to be a little-known commission once again."

Hot Water for Panel Ex-head

By Russ Buettner
Nedw York Daily News
October 17, 2004

The brouhaha over ex-state Sen. Guy Velella's early release from jail has exposed some eyebrow-raising connections of one of the men behind the controversial decision.

Raul Russi resigned last week as chairman of the board that sprang the disgraced Bronx Republican powerhouse from Rikers Island.

But he held onto another mayoral appointment that presents an apparent conflict of interest.

In March, Mayor Bloomberg named Russi to the Board of Correction - an official watchdog of the city jails - based on a recommendation from Martin Horn, the commissioner of both the city Correction and Probation departments.

But Russi also earns $125,000 a year as head of a nonprofit drug treatment agency that relies on Probation Department referrals of recently released inmates.

The dual role puts Russi in the position of monitoring Horn's stewardship of the Correction Department while making a salary from an organization that gets business from Horn's Probation Department.

Horn spokesman Jack Ryan said referrals are made by individual probation officers from a list of state-licensed agencies.

"Commissioner Horn does not make the referrals," Ryan said.

Peter Tufo, the famously tough head of the Board of Correction from 1975 through 1986, said the correction commissioner shouldn't get to pick who will monitor his performance.

"That's inappropriate," said Tufo, the U.S. ambassador to Hungary from 1997 to 2001. "That's the person he's supposed to be overseeing and criticizing."

Russi, who has declined interview requests for two weeks, previously told the Daily News that the Bronx-

based nonprofit, called BASICS, has 130 drug treatment beds and gets referrals from several law enforcement agencies.

Since The News first reported Velella's early release, Bloomberg has cleaned house at the Local Conditional Release Board. Russi, three other board members and the executive director have been pushed out.

But Bloomberg let Russi remain on the Correction Board.

Velella was sentenced in June to one year on Rikers Island after pleading guilty to taking $137,000 in a bribery scandal. Russi and two other members of the obscure board voted to release him - reversing an early denial - on Sept. 22.

The city Department of Investigation and Manhattan district attorney are looking into whether Velella got special treatment, a probe that includes reviewing a $24 million city contract recently awarded to BASICS.

Russi has described Velella's release after just three months as an act of compassion toward a broken and humiliated man.

A former Buffalo cop who was shot in the line of duty, Russi was appointed to the early release board by Mayor Rudy Giuliani, with whom he has a long history.

Giuliani threw Russi a career lifeline after George Pataki's 1993 defeat of Mario Cuomo cost Russi his job as chairman of the state Parole Board.

Giuliani, who had endorsed Cuomo, appointed Russi to a lucrative city sheriff post in 1995. A year later, Giuliani named Russi city probation commissioner.

A month after Giuliani left office, Russi was named director of BASICS.

The BASICS board of directors includes Ninfa Segarra, a Giuliani deputy mayor and Board of Education appointee. Russi serves at the pleasure of that board.

Da Probes 'Crime' in Velella Release

By David Seifman
New York Post
October 16, 2004

Manhattan DA Robert Morgenthau, who prosecuted disgraced state Sen. Guy Velella, disclosed yesterday he's investigating "whether any criminal offenses were committed" when the former legislator was sprung from Rikers Island.

Morgenthau's involvement became public when he asked the City Council to postpone an inquiry into Velella's early release by the Local Conditional Release Commission.

Velella accepted a one-year jail sentence in a plea bargain in which Morgenthau agreed not to object to Velella's plea for an early release.

Morgenthau wrote in a joint letter with Department of Investigation Commissioner Rose Gill Hearn that "our offices are conducting a joint investigation into . . . whether any criminal offenses were committed during the proceedings of the LCRC."

The letter warned that if the council issued subpoenas, it "could inadvertently grant immunity to individuals who might otherwise be subjects of criminal proceedings."

Council Speaker Gifford Miller quickly agreed to the request, saying he has full confidence the DA was an "independent person" who would provide an impartial accounting.

Miller also said the "question of criminal conduct didn't arise from DOI until we started to ask people in the Bloomberg administration to testify."

After speaking with Morgenthau, Miller decided to proceed with a hearing into the Velella mess on Monday. But he said witnesses would be asked to testify voluntarily, not under subpoena.

Amy Ianora, one of four LCRC members who resigned under pressure, has agreed to show up, according to Miller spokesman Steve Sigmund. But when reached at her Brooklyn home, Ianora wouldn't confirm her attendance.

"I'm sorry, I'm not at liberty to make any comments about the situation," she said.

DOI Commissioner Hearn issued a statement saying she still's worried the council hearing could interfere with the investigation.

Hearn also indicated investigators are conducting a much more far-reaching probe than was known.

In rejecting the council's role, she noted DOI has access to "search warrants, use of the grand-jury process and transactional immunity."

Mayor Bloomberg continued to express confidence no one in his administration would be implicated.

"There is absolutely no evidence that anybody in the administration had any contact whatsoever with this board on behalf of Guy Velella or anyone else," he said.

Another head rolled at the LCRC late Thursday, when executive director Louis Gelormino, who also served as a $135,000-a-year counsel at the Probation Department, quit suddenly.

Gelormino joined the city payroll in 1994. He acknowledged his mentor is Mary Sansone, a Brooklyn Democratic activist who supported Rudy Giuliani, Bloomberg and Gov. Pataki. Campaign finance records show Gelormino contributed to five political campaigns since 1993, including those of Herman Badillo — one of 36 officials who wrote letters on Velella's behalf.

Badillo told The Post he doesn't know Gelormino.

                            Demand for Info on Velella Snafu

New York Daily News
October 15th, 2004

The City Council issued a rare batch of subpoenas yesterday demanding details from the secretive city board that sprung former state Sen. Guy Velella from Rikers Island.

The Council's action came as a nonprofit agency run by Raul Russi, who resigned last week as chair of the obscure board that released Velella, drew new scrutiny.

The agency, Basic Housing Inc., was awarded a five-year, $24 million contract to provide housing for 150 homeless families, officials said.

It was signed in July and registered with the city controller's office on Sept. 22 - the same day the Local Conditional Release Board, chaired by Russi, voted to release Velella. Asked about the contract, Bloomberg said all matters related to Russi and the board were under review by the city's Department of Investigations.

"In the meantime, we will make sure that the city gets the best services it possibly can, and to make sure the procurement process isn't tainted," the mayor told reporters. Velella was sentenced in June to one year after pleading guilty to taking $137,000 in a bribery scandal.

Russi has described Velella's release after just three months as an act of compassion toward a broken and humiliated man.

In another development, the board's executive director, Louis Gelorminio, resigned under pressure yesterday, sources said.

Meanwhile, Council officials charged they had been stonewalled in their pursuit of documents related to Velella's release. "The level of noncooperation is literally unprecedented," said Council Speaker Gifford Miller (D-Manhattan).

The subpoenas seek the names of "any person who has written telephoned, E-mailed or otherwise contacted the commission" about Velella, according to a copy of the text provided to The News.

Last night, City Hall signaled it would challenge the subpoenas legally - arguing any testimony could hamper later prosecutions "if they did something improper," Bloomberg spokesman Ed Skyler said.

"If the Bloomberg administration really wanted to get to the bottom of the Velella case," shot back City Council spokesman Steve Sigmund, "it would be standing with the Council, rather than trying to block us."

The Council has only twice before used its subpoena power - in 1995, to compel the appearance of a welfare commissioner after the beating death of a 6-year-old girl, and in 2001, during a probe of then-

Parks Commissioner Henry Stern.

Miller, who is weighing a mayoral bid next year, insisted the Council's probe was not aimed at embarrassing the mayor. "We're trying to clear up what happened here," he said.

          Free-Velella Panel's Boss Tied to $24m Apple Grant

By Stephanie Gaskell and David Seifman
New York Post
October 15, 2004

A nonprofit group tied to the chairman of the commission that sprung state Sen. Guy Velella from jail early received a $24 million city grant six days before the panel's vote, it was revealed yesterday.

Officials said the Bronx Addiction Services Integrated Concepts Systems, where then-Local Conditional Release Commission Chairman Raul Russi serves as executive director, won the five-year grant to provide social services to the homeless on Sept. 22.

On Sept. 28, Russi and fellow commission members voted to spring Velella from Rikers Island, just three months into a one-year sentence for accepting bribes.

Mayor Bloomberg said the Department of Investigation is looking into the deal, first revealed by WNYC Radio.

Meanwhile, the City Council invoked its rarely used subpoena powers to compel officials to appear at a hearing on Velella Monday.

Council Speaker Gifford Miller, who's considering running for mayor next year, suggested there was something fishy about the early release.

"It's hard to imagine it's a general policy of the board to reject an application and then two weeks later, for reasons of general sympathy," reverse itself, Miller said.

Yvette Clarke, chair of the Committee on Fire and Criminal Justice Services, accused the administration of attempted "whitewashing."

Bloomberg's spokesman, Ed Skyler, said the administration would fight the subpoena because someone who testifies in response to it might be barred "from being prosecuted if they did something improper."

Bloomberg Says Panel Erred When It Released Velella

By Jennifer Steinhauer
The New York Times
October 14, 2004

Mayor Michael R. Bloomberg said yesterday that a little-known mayoral commission erred when it voted to release former State Senator Guy J. Velella from jail three months into his yearlong jail sentence, but the mayor stopped short of saying that Mr. Velella ought to be sent back to jail.

"I would not have gone and voted to release him," Mr. Bloomberg said yesterday during a news conference in City Hall, adding that elected officials like Mr. Velella should be held to a higher standard than the rest of the public.

But Mr. Bloomberg said he would leave it to the courts to decide if the board's decision violated state laws governing the early release of prisoners, and demurred on the question as to whether that decision ought to be reversed. Mr. Bloomberg said that by expressing an opinion as to whether the board should send Mr. Velella back to jail, he feared he would prejudice the board, whose chairman, Raul Russi, resigned after he met with the mayor on Tuesday.

Mr. Bloomberg's remarks were the most definitive ones he has made since the obscure board, known as the Local Conditional Release Commission, voted to release Mr. Velella last month from Rikers Island. "I don't know what possessed them to do that," Mr. Bloomberg said. As for Mr. Russi, he said, "I think he made a mistake in judgment."

Mr. Velella, whose life as a Bronx political power ended when he pleaded guilty to charges of conspiracy to accept bribes, made repeated tearful phone calls to staff members of the commission seeking his release, Mr. Russi has said.

After first denying Mr. Velella's plea, the board - created to reduce prison overcrowding in the late 1980's - voted to let him go. He was released from Rikers Island on Sept. 28, to a storm of criticism. Last week, Mr. Bloomberg assigned his Department of Investigation to look into the matter. Numerous politicians, including former Mayor Edward I. Koch, had appealed to the panel to grant Mr. Velella early release.

Mr. Russi has repeatedly insisted that compassion for a broken and fallen Mr. Velella, rather than political pressure, led him to vote for his release. But Mr. Bloomberg countered yesterday that he was unmoved by the board's compassion. "I don't happen to think it was the right decision, but it was his decision and the rest of the board's decision."

Daniel Richman, a professor at Fordham Law School, will replace Mr. Russi on the panel, and Mr. Bloomberg has suggested that the three other members might also be replaced. "I'll be dealing with the entire commission later on," he said icily yesterday.

Mr. Russi will still remain on the city's Board of Correction, to which Mr. Bloomberg appointed him in March. Defending the decision to leave Mr. Russi in that role, Mr. Bloomberg said, "He's got a long list of jobs where he performed well, and I see no reason why we shouldn't take advantage of his expertise."

The City Council, which has scheduled a hearing Monday to look into the circumstances of Mr. Velella's release, sent letters to the parole commission asking for telephone records, internal correspondence and other documentation related to its decision to free the former senator and two others convicted in his bribery and conspiracy case, Manuel Gonzalez and Hector Del Toro.

The Council has also asked the commission to explain what "advance public notice," if any, it provided before convening meetings to consider releasing the men. The commission's executive director, Louis M. Gelorminio, responded in a letter to the Council last week that he was awaiting guidance from the mayor's office before deciding how to comply.

The mayor's office referred the commission's request to the City Law Department.

Head of Panel in Velella Case Is Replaced

By Jennifer Steinhauer
The New York Times
October 13, 2004

Moving to quell a growing embarrassment for his administration, Mayor Michael R. Bloomberg accepted the resignation yesterday of a mayoral appointee whose panel released the former State Senator Guy J. Velella from prison 3 months into his 12-month prison sentence.

The move followed days of growing questions into how a little-known panel came to free Mr. Velella and reflected a swift change in strategy for Mr. Bloomberg, who two weeks ago brushed off the release as a puzzling turn of legal events made by a commission that he had never heard of.

But as questions persisted about the early release of an influential politician, the mayor found himself increasingly on the defensive over the obscure board, known as the Local Conditional Release Commission, whose members are appointed by the mayor's office.

Last week, Mr. Bloomberg assigned his Department of Investigation to look into the matter, saying that after it did, he would meet with the commission's chairman, Raul Russi, to decide Mr. Russi's fate. But Mr. Bloomberg met with Mr. Russi yesterday before the inquiry ended and then announced that he had quit.

"In light of the commission's decision to grant the early release of former State Senator Guy Velella," Mr. Bloomberg said in a statement, "Chairman Russi has decided that it was in the best interests of the City of New York to have new leadership at the commission."

Mr. Russi had said last week he was prepared to accept any decision by Mr. Bloomberg.

Daniel Richman, a professor at Fordham Law School, will replace him. Mr. Russi will still remain on the city's Board of Correction, to which Mr. Bloomberg appointed him in March.

Mr. Velella, a longtime political power in the Bronx and close ally of Rudolph W. Giuliani, had been serving 12 months in prison on charges of conspiracy to accept bribes. Numerous politicians, including former Mayor Edward I. Koch, had appealed to the panel to grant Mr. Velella early release, and it did in late September.

The panel has extraordinary powers to release nonviolent offenders before their terms expire and before they are even up for parole. Such panels were created by the State Legislature a decade ago to help reduce prison overcrowding, but state lawmakers have called in recent months for them to be dissolved. Indeed, Mr. Bloomberg said yesterday, "I think this commission has outlived its useful purpose and I would support legislation abolishing it."

After Mr. Velella's release, Mr. Russi repeatedly told reporters that the panel's decision to free the former senator was not based on pressure from Mr. Velella's many friends and allies around the state who wrote letters on his behalf, but rather on his view that Mr. Velella had become sad and pathetic in jail and had suffered enough. In a written statement, Mr. Russi maintained that position yesterday.

"After a 34-year career in the criminal justice system," he said, referring to his work in police and corrections jobs, "I was, and remain, convinced that Velella was absolutely no risk to the community, but was in fact a broken man who had disgraced himself and brought about the end of a distinguished career as a public servant in a most ignominious way. His was a compassionate release having nothing to do with politics."

According to Mr. Russi's account, Mr. Velella made repeated and increasingly desperate calls to staff members of the board from a jail pay phone, begging to be released. His first request was denied, but as his calls continued, the board voted to let him go. After his release from Rikers Island on Sept. 28, Mr. Velella was driven from the jail by the president of the correction officers' union, who took him to a Bronx restaurant where he met his family.

Mr. Bloomberg has privately told aides that he was puzzled by the board's decision to release Mr. Velella, and he sought early on to distance himself from it. His first response was to say that his administration played no role in the matter, and that he had never heard of the board, even though he had made two appointments to it.

On the advice of his appointments committee, Mr. Bloomberg appointed Jeanne Hammock, a member who abstained during the voting on Mr. Velella's application, and Irene Prager. Mr. Russi and another member, Amy Ianora, were appointed by the previous mayor, Mr. Giuliani. Mr. Bloomberg hinted that he would likely fire all the commissioners.

Those who have questioned whether Mr. Velella's release could be rescinded have focused on a section of the state law that says that inmates whose initial applications are denied, as Mr. Velella's was, cannot reapply for two months. Mr. Velella was released after a second review of his case by the panel, just a month after the initial review. Charles Stillman, a lawyer for Mr. Velella, declined to discuss the application process except to say, "We are satisfied that Guy Velella's release was done in a lawful way by a responsible agency of government."

Mr. Bloomberg has had remarkably few resignations from his administration, which started in 2002, and has only once before fired appointees: two members of his Panel for Educational Policy, who would not agree with his plan to end social promotion in the third grade.

The only other resignation that occurred under a cloud was that of William J. Fraser, who resigned as commissioner of the Department of Correction in 2002 amid reports of corruption among his deputies and his admission that he paid subordinates to help put a liner in his above-ground swimming pool.

Velella D-day Looms

By Stephanie Gaskell
New York Post
October 12, 2004

City investigators are expected to determine this week whether a city commission broke any laws when it sprung former Sen. Guy Velella from jail early, Mayor Bloomberg said yesterday.

The mayor also suggested he would shake up the four-member Local Conditional Release Commission, which gave Velella a "get out of jail" card after serving just three months of a one-year sentence on bribery-related charges.

"I can appoint a number of people if I want to," Bloomberg said yesterday. "There's no limit, I believe, in the number of commissioners. But I will deal with that after I talk to [Department of Investigation Commissioner] Rose Gill Hearn."

DOI investigators are looking at whether the Local Conditional Release Commission broke any rules. It's possible Velella could be thrown back in jail if any serious infractions are found.

As The Post reported yesterday, among the issues whether the commission complied with two requirements of the state Open Meetings Law and one section of the state Corrections Law in releasing the 60-year-old Velella from Rikers Island.

The state Open Meetings Law requires that all commission votes be taken with the members physically present or, in a rarely used procedure, during a "teleconference" at which the public is invited to watch. The law also requires that public notice of such meetings be given in advance.

However, a law-enforcement source told The Post that investigators suspect the commission "meeting" was conducted by telephone. If the law wasn't followed, Velella could be returned to jail, sources said.

The head of the commission, Raul Russi, has hired a lawyer to represent him during the city's investigation. When the probe is complete, Bloomberg says he wants to "talk to [Russi] about what his thinking was."

'Illegal' Release Could Send Guy Back to Jail

By Fredric U. Dicker
New York Post
October 11, 2004

ALBANY — The city commission that authorized the early release from Rikers Island of former Sen. Guy Velella may have acted illegally, The Post has learned.

Investigators are seeking to determine if the Local Conditional Release Commission complied with two requirements of the state Open Meetings Law and one section of the state Corrections Law in releasing Velella, 60, once one of the most politically connected and powerful officials in the state.

If the law wasn't followed, Velella could be returned to jail, sources said.

Commission Chairman Raul Russi repeatedly refused to answer The Post's questions about whether the release of Velella complied with state law.

A spokeswoman for Russi, meanwhile, disclosed for the first time that he's hired his own lawyer to represent him during the city Department of Investigation's ongoing probe — ordered by Mayor Bloomberg — of the circumstances surrounding Velella's release.

The Post located the elusive Russi, who has refused for days to answer basic questions about Velella's release, Friday at BASICS, the Bronx-based drug-treatment center he heads.

"On the advice of his attorney, he will not be taking any calls from the press," said the spokeswoman, who also refused to give her name or to relay questions to Russi.

However, she insisted, "Sometime in the near future Mr. Russi will answer any and all questions in a public forum."

Russi is a one-time city probation commissioner who initially claimed that tearful phone calls from Velella on Rikers Island had been a factor in the commission's decision to grant his early release.

Jack Ryan, a spokesman for the New York City Probation Department, which oversees the commission's activities, said he had relayed the Post's questions to Russi, but had gotten no response.

Velella Will Sit Out Events for Columbus Day in Bronx

By Alan Feuer
New York Times
October 9, 2004

Every year, for the last 10 years or so, Guy J. Velella has been the guiding spirit at the annual Columbus Day breakfast at St. Dominic's Roman Catholic Church in the Bronx, rising early to serve scrambled eggs, bacon and hash browns to a few hundred of his constituents.

Tomorrow, however, Mr. Velella will skip the breakfast and the Bronx Columbus Day Parade, which follows it, its organizers said. Having recently caused a stir by winning early release from Rikers Island with the help of an obscure but powerful city commission, Mr. Velella, the former state senator, has either chosen - or been asked - not to attend.

"He's not involved this year," said Dexter Hendon, executive director of the Bronx Columbus Day Committee.

Mr. Velella's absence from the breakfast, which for many years he paid for and presided at, briefly threw the plans for the meal and parade into chaos as Mr. Hendon cast about somewhat frantically for money. Some of that money was set aside by Mr. Velella himself, he said, before the senator was sent away to Rikers Island earlier this year for his conviction on charges of conspiracy to accept bribes.

"We wouldn't have the parade this year if it wasn't for him," Mr. Hendon said. "Prior to his problems, the senator had already put funds away for the parade. Before everything went down, there was a grant."

As for the breakfast, which traditionally follows the morning Mass at St. Dominic's in Van Nest, two other Bronx politicians - State Assemblyman Stephen B. Kaufman and City Councilwoman Madeline Provenzano - came to its rescue, contributing $1,000 each.

"Steve and I stepped in to pay for the breakfast," Ms. Provenzano said, adding that she could not bear to see a nice tradition fall by the wayside.

Ms. Provenzano refused to discuss the plight of Mr. Velella, who served three months of a one-year sentence. He was released from jail last month at the direction of the Local Conditional Release Commission, which acts like a local parole board and examines, but rarely orders, the release of city jail inmates who are serving sentences of a year or less.

Planning for this year's breakfast and parade has been a chore, Mr. Hendon said, even beyond the problems of its regular patron. The former organizer, Dom DeProspo, died just a month after last year's parade, leaving the parade committee deeply in debt.

To raise money, Mr. Hendon decided to sell banners - four feet long and three feet high - to local businesses for $150 each and place the banners at the vanguard of the parade. He said he had sold more than 100 of them.

Now the breakfast and parade can go forward tomorrow morning as they do every year, he said.

"This year was very, very difficult, but I'm going to do it again next year," Mr. Hendon said, "because now I know what I'm doing."

Guy Creeps Out

By Fredric U. Dicker State Editor
New York Post
October 7, 2004

Guy Velella finally emerged yesterday from the Bronx house where he's been holed up — as Attorney General Eliot Spitzer said the disgraced former state senator should go back to jail if he used false claims to gain a controversial early release.

His stroll around the block was the first time he'd been seen in public since he walked out of Rikers on Sept. 28.

Spitzer — in his first public comment on a growing political scandal — told The Post the New York City Local Conditional Release Board should "reconvene and reconsider its decision" last week to release Velella after he served just three months of a one-year Rikers Island sentence for soliciting bribes.

The release of Velella, the former Bronx GOP chairman, set off a storm of protests, which increased when it was reported that prominent elected officials had written letters to the obscure board on behalf of the former Bronx Republican chairman.

Spitzer questioned whether those letters were obtained under false pretenses.

The city's Department of Investigation must "determine whether any false representations were made to solicit letters and/or whether any false representations were made to the board with respect to the letters," Spitzer said.

"There appears to be evidence that some letters represented to have been in support of Velella's release were not written for that purpose. Individuals may have been asked if they would write letters to Velella without being informed that the letters would then be sent to the board."

Several people who were asked to write letters on behalf of the once-powerful Velella — including former Mayor Ed Koch and Rep. Eliot Engel — said they had no idea the letters would be used to obtain his early release.

The board has the right to revoke its early-release decisions.

Ironically, Velella voted earlier this year to abolish conditional-release boards in the wake of the early release of an upstate woman found guilty of endangering a baby who died in her unlicensed day-care center.

Repeated attempts to reach board chairman Raul Russi for comment were unsuccessful. Velella declined to speak to a Post reporter as he left his home yesterday.

Writers Say Freeing Velella Was Not Intent

By Mike McIntire
New York Times
October 6, 2004

Several people who were asked to write letters of support for Guy J. Velella now say they had no idea his lawyers were going to use those letters to help Mr. Velella get out of jail after serving only a fraction of his sentence.

Mr. Velella's lawyers submitted 32 letters for the Local Conditional Release Commission to take into account as it considered whether to release him after he served
two months of a 12-month sentence at Rikers Island.
Michael Nagle for The New York     The commission, an obscure board that grants early
Times
- Councilwoman Madeline   release to just a handful of inmates each year, initially Provenzano said she had no idea   chose not release Mr. Velella, a former state senator, what her letter was going to be       but reconsidered a month later and let him out on
used for.                                           Sept. 28.

One of those who was asked to write a letter, City Councilwoman Madeline Provenzano, a Bronx Democrat, said yesterday that she was misled into thinking her letter was just "a morale booster" for Mr. Velella. Her one-page letter, which offers "a few words of support in these tough moments," was addressed to Mr. Velella and does not endorse his effort to get out of jail early.

"One of his staff people called and asked me to write a letter to Guy Velella to lift his spirits," Ms. Provenzano said. "If they intended to use it to get him out by going before this commission, which I'd never even heard of, I would have liked to have known that. That was not my intent when I wrote it. I had no idea this is what they were going to use it for."

Another letter writer, Representative Eliot L. Engel, a Democrat from the Bronx, also was unaware that his two-paragraph expression of support would be submitted to the commission, said Joe O'Brien, a spokesman for Mr. Engel.

"The congressman had no idea it would be used in this way, that the senator was looking for an earlier-than-early release," Mr. O'Brien said. "He assumed Senator Velella was looking to get out early on a typical good-behavior release. He had no idea this board even existed."

The early release of Mr. Velella, a once-powerful Bronx Republican who pleaded guilty in a conspiracy and bribery case in May, came last month and touched off a political firestorm, raising questions about whether the board was swayed by the former senator's political contacts. Mayor Michael R. Bloomberg, who appointed two of the commission's four members, said he had nothing to do with the decision, and last week called on the City Department of Investigation to examine the commission's conduct.

Had Mr. Velella remained in jail, he would have been eligible for release after serving two-thirds of his sentence. Correction officials said at the time of his sentencing last June that Mr. Velella's earliest release date, assuming credit for good behavior, would be in February 2005.

Charles A. Stillman, a lawyer for Mr. Velella, declined to comment when asked about the letters and how they were solicited.

The chairman of the commission, Raul Russi, a holdover from the Giuliani adminis-tration, has said the decision to release Mr. Velella was an act of compassion, motivated in part by desperate phone calls from a tearful Mr. Velella. As evidence of the depth of support that was said to exist for Mr. Velella, the commission last week made the 32 letters public.

Some of the letters, most of them written in July, were clearly intended to boost Mr. Velella's effort to win early release. Herman Badillo, a former United States representative from the Bronx, wrote directly to the commission staff, asking that Mr. Velella "receive early release when sixty (60) days of incarceration are completed."

But others were far more circumspect.

Assemblywoman Nettie Mayersohn, a Queens Democrat, wrote a letter praising Mr. Velella's support for legislation she introduced requiring doctors to tell new mothers if their babies have the AIDS virus. She said it was "never intended to be used for anything other than to have the sentencing judge take it into consideration," and that she did not know the commission even existed, let alone that it would be given her letter. "I never anticipated that," Ms. Mayersohn said. "But I can't say that I was terribly upset by it. He had done so many good things, and saved so many lives with that baby-AIDS bill."

William Jones, the executive director of a youth shelter in Mount Vernon, said he limited his letter to a recounting of Mr. Velella's support for his program, but that he was not surprised to learn it was used as an endorsement for early release: "I think it would be a little naοοve to think that it wouldn't be used for this purpose in some fashion."

"We were told that the judge wanted to know if we would be interested in him doing community or volunteer service at out facility," Mr. Jones said. "That is why I wrote the letter, and I was careful to write it the way that I did." He said he has yet to hear whether Mr. Velella will be volunteering to help at the shelter.

                       Pataki's Troubled by Velella's Release

By Joe Mahoney
New York Post
October 6, 2004

ALBANY - Gov. Pataki, reacting to disgraced Bronx pol Guy Velella's early release from jail, said yesterday that "strong consideration" should be given to stopping secretive local boards from shortening sentences.

Pataki, a longtime political ally of Velella, said he was troubled by the process that sprung the former senator from his Rikers stay just three months into a one-year sentence.

"I'm concerned about the message that it sends," Pataki told reporters outside the state Capitol.

"You know, you want to have equal justice for people."

But Pataki backed away from his prior call for canceling the pensions of public officials convicted on corruption charges, saying only that he would review such a proposal."If people have some recommendations, we will look at it," he said yesterday when asked about the proposal now being pushed by Sen. Liz Krueger (D-Manhattan).

Velella, who is already collecting an $80,000 state pension, resigned his Senate seat in May just before pleading guilty to steering public contracts to companies that paid $137,000 in bribes.

The ripple effects from the Velella release are still being felt in City Hall.

The City Council is planning an Oct. 18 hearing into the operations of the Conditional Release Commission. The Council has oversight over city agencies.

                          Mike to Grill Guy's Springer

David Seifman and Tom Topousis
New York Post
October 5, 2004

The chairman of an obscure city commission that sprang disgraced former state Sen. Guy Velella from jail after only three months will be grilled by Mayor Bloomberg — and may be pulled from his post.

Bloomberg yesterday said he plans to meet with Raul Russi, chairman of the city's Local Conditional Release Commission, to find out why the board voted to release Velella, who was sentenced to a year on a bribe rap.

The mayor said he'll first have the commissioner of Investigations determine whether any laws were broken by releasing Velella.

"The second thing is, after that is done, I will sit down with the chairman and have a conversation with him, and I want to better understand on what basis he had made his decision," Bloomberg said.

"And at that time, I'll determine whether it is time to have somebody else in that slot."

Russi, a former city probation commissioner who was appointed to the unpaid commission post by Rudy Giuliani, has defended Velella's release.

"He fit the exact pattern of the type of people who have been released under this program over the years. He was a nonviolent, first-time offender," Russi said last week.

Whiny Velella Was a Jailhouse Wreck

By Fredric U. Dicker
New York Post
October 4, 2004

ALBANY — Despite having to serve only a cushy, three-month jail sentence, former state Sen. Guy Velella was a sniveling coward behind bars, moaning to friends that the conditions were atrocious.

The disgraced pol whines in an embarrassing letter he wrote to a pal while in the clink that he's on the brink of an emotional breakdown and fears he'll die if not given an early release from Rikers Island.

"To stay in jail and not have the holidays with my children and grandchildren will kill me and serve no public purpose," Velella, 60, complains in the pathetic note, penned from his cell in late August and obtained exclusively by The Post.

In words more fitting of a 90-pound weakling than somebody who was once one of the most powerful men in the state, he continues: "You can't believe how horrible Rikers Island is. Sometimes the food is so bad most of the inmates just tell the wagon to keep going so the smell doesn't get them sick."

The one-time Bronx Republican chairman and statewide political powerbroker says his stay at Rikers is so devastating, he may even flip-flop on his support of the death penalty. "I almost believe Mario Cuomo that life without parole is worse than the death penalty," wrote Velella, referring to the former Democratic governor's oft-stated position.

Velella got a virtual get-out-of-jail-free pass last week when he was released after serving just three months of a one-year sentence for bribe solicitation.

He was sprung at the urging of some of the state's most powerful political, civic and religious leaders — sparking cries of favoritism and triggering a probe by Mayor Bloomberg of the obscure city commission that authorized Velella's release. Among the high-powered individuals and groups working for his early release were former Mayor Ed Koch, the Archdiocese of New York — in a letter citing Edward Cardinal Egan — and Patrolmen's Benevolent Association chief Patrick Lynch.

                  Panel That Freed Velella Had Few Guidelines

By Russ Buettner
New York Daily News
October 3, 2004

The panel that cut months off the sentence of ex-state Sen. Guy Velella has occasionally been hoodwinked, inconsistent and subject to political whim.

At least some of that is because the Conditional Release Commission operates without written guidelines on whom it can pluck from Rikers Island.

That leaves its board of mayoral appointees in the position of second-guessing judges just weeks after they hand out sentences.

"That's the system the way it was designed," said Raul Russi, who has headed the commission since 1997.

The panel's judgment was called into question last week after the Daily News revealed that the board had set Velella free three months into a one-year sentence. The longtime Bronx Republican powerbroker pleaded guilty in May to taking bribes.

One con who duped the commission was former Jets superstar Mark Gastineau.

Famous for his "sack dance," Gastineau had by the late 1990s been in and out of jail and probation for beating his girlfriend.

In 2000, he was sprung early from Rikers after promising to enroll in an anger management program.

"I thought it was an important thing - instead of doing nothing at Rikers Island, he goes into a program for a year," Russi said.

The panel usually has rebuffed convicts with a history of parole or probation violations. One condition of accepting early release is a year on probation.

But the panel later found out the commissioners approved Gastineau's plan because he said he had never participated in the program - a claim the commission learned was false.

He lied to us, and he went back" to Rikers, Russi said.

Though Russi said political pressure played no role in releasing Velella, political shifts have guided its philosophies.

Then-Mayor Rudy Giuliani made the commission play a role in his war on squeegee men and other quality-of-life criminals by denying early release to low-level repeat violators.

Today, very few inmates meet the committee's ad hoc criteria.

The commission reviews every city inmate who has served two months of a three-to-12-month sentence - about 7,000 last year. Filtering out repeat and violent offenders and those with prior probation trouble leaves a few dozen, Russi said.

But many inmates reject the deal because they'd rather sit in Rikers for a few months than endure a year of probation.

This year, 17 inmates have rejected early release offers, and five - including Velella and two co-

conspirators - accepted.

Of the 15 who have accepted since 2000, five were convicted on drug-related charges, three were involved in forgery and two were convicted of grand larceny.

Most inmates - and jails observers - are barely aware the commission exists.

"I've been around a long time, and I don't remember ever hearing much about it," said Robert Gangi, director of the state Correctional Association.

State Senate Republicans passed a bill in February that would have done killed the commission - a bill Velella supported. It stalled in the Assembly.

But it could soon be moot. The law that established the board included an automatic repeal on Sept. 1, 2005.

Velella Had Koch, Egan in His Corner

By Tom Topousis, Kenneth Lovett
and David Seifman
New York Post
October 1, 2004

Former state Sen. Guy Velella's successful bid to win an early release from prison got a big boost from some very powerful friends — former Mayor Ed Koch, the Archdiocese of New York, the city's PBA president and a slew of lawmakers, retired judges and civic leaders who all wrote letters on his behalf. "He's a friend of mine and I've known him for many, many years," Koch said of Velella. "I'm not in any way defending his violation of the law but, nonetheless, he remains a friend of mine."

The letter from the archdiocese, which came from the Chancery Office and was signed by Monsignor Thomas E. Gilleece, mentioned the cardinal by name.

"Edward Cardinal Egan, the archbishop of New York, has spent time with [Velella] before and after his guilty plea and is well aware that he has accepted full responsibility for what he has done," the letter said. The archdiocese even offered Velella a job at one of its social agencies.

In all, 32 letters were written to the Local Conditional Release Commission, an obscure mayoral panel that can grant early releases to prisoners sentenced to a year or less in jail. The letters were released yesterday by the city's Probation Department, which has oversight of the four-member board.

Velella was sentenced to one year in jail after he was allowed to plead to a single felony count for taking at least $137,000 to steer state business to contractors.

Patrick Lynch, president of the Patrolmen's Benevolent Association, asked that Velella be released early because he had "suffered" personally and professionally. "This has been an ordeal of significance for Senator Velella."

The once-powerful Bronx Republican was released this week after serving just three months of his sentence. Without the commission's intervention, Velella would have had to spend a minimum of eight months behind bars.

Mayor Bloomberg yesterday asked his Commissioner of Investigations to look into the panel's actions. "What I have done is ask my commissioner for the Department of Investigation, Rose Gill Hearn, to look into what's gone on and make sure that nobody from the outside tried to bring pressure through the administration," Bloomberg said.

Velella will remain on probation for a year. He will collect his $80,000 annual state pension, but a state Appellate Division Court yesterday stripped him of his law license because of the felony conviction. Velella's early release from jail prompted renewed calls yesterday to abolish the Local Conditional Release Commissions, which are appointed in each of the state's counties and in New York City.

"I think this commission has probably long since outlived its usefulness," Bloomberg said.

The state Senate, including Velella, voted to abolish the commissions in February. One of the chief sponsors of the bill, Sen. Michael Nozzolio, an upstate Republican, was among the letter-writers for Velella. The bill has languished in the Assembly.

Mayor Seeks Investigation in Velella Case

By Jennifer Steinhauer and Mike Mcintire
New York Times
October 1, 2004

Mayor Michael R. Bloomberg said yesterday that he had asked the city's Department of Investigation to examine how a little-known commission of mayoral appointees decided to grant early jail release to former State Senator Guy J. Velella. The mayor also suggested that the panel itself should be abolished.

Mr. Velella was released on Tuesday at the direction of the Local Conditional Release Commission after he served 3 months of a 12-month sentence in a conspiracy and bribery case.

Such panels were authorized by the state in 1989 as a means of reducing jail overcrowding, and yesterday, the mayor said that from what he could tell, it was created "when there was a totally different situation existing in our jails."

"I think the commission has probably long since outlived its usefulness," he said.

"I gather the State Senate at least considered abolishing it a year or so ago," the mayor added. "I certainly think it's time to go back and look at that issue. I don't know quite why it should continue to exist."

The mayor also said yesterday that he had asked his investigation commissioner to look into whether someone tried to influence the panel through his administration.

Mr. Bloomberg appointed two of the panel's four members, and the other two were named by his predecessor. Earlier this week, Mr. Bloomberg had sought to distance himself from the case, saying his administration had nothing to do with the panel's actions.

His remarks yesterday were markedly more aggressive than they had been. Other elected officials, editorial boards and others have been hammering on the issue for three days.

"How the panel acted and what they did, we'll have to see," Mr. Bloomberg said. "The public has the right to know."

Mr. Velella was freed from Rikers Island on Tuesday, after pleading guilty in May to conspiracy related to charges involving $137,000 in bribes from contractors.

Thirty-two people wrote to members of the panel in support of Mr. Velella's release application, including former Mayor Edward I. Koch. Of those 32 letters, 10 came from community groups and civic organizations, 4 were from representatives of religious organizations, including Joseph A. O'Hare, president emeritus of Fordham University and the former chairman of the city's Campaign Finance Board, and 3 came from labor groups. One was from a constituent. The other 14 letters were written by current and former public officials.

"He is a friend of mine," Mr. Koch said last night in a telephone interview. "I am not getting into the question of his guilt, but I have no hesitation saying he did good work on behalf of the city." Mr. Koch was asked to submit a letter by a mutual friend, whom he would not name and who told him, he said, that former Mayor Rudolph W. Giuliani would also be writing. Mr. Giuliani's spokeswoman, Sunny Mindel, said last night that he had written no letter.

This week, city and state officials raised questions about how the panel reached its decision. The former state senator was one of five inmates granted early release over the last year - 7,000 were eligible - and two of the others released were people sentenced in the Velella case.

"What I have done is asked my commissioner for the Department of Investigation, Rose Gill Hearn, to look into what's gone on and to make sure that nobody from the outside tried to bring pressure through the administration," Mr. Bloomberg said yesterday.

"And she's also looking at whether she has the legal right to look and see whether or not anyone tried to bring influence on this panel," he said, adding, "From what we can tell so far, nobody was contacted that we know of, certainly nobody in the administration that we know of was contacted by anybody trying to influence this decision."

Aides to the mayor said that if the Department of Investigation was found to lack jurisdiction, Mr. Bloomberg would explore other options, including possibly asking a district attorney to intervene.

Mr. Bloomberg conceded yesterday that he had never previously heard of the advisory panel; his committee on appointments chooses the mayoral members of such boards. It is one of 139 official boards and commissions in city government, and there are tiny boards peppered throughout city government.

Some boards would be familiar to many New Yorkers - the Charter Revision Commission and the Conflict of Interest Board, for instance - but many would not. There are over a half dozen boards that have oversight of the city's water supply, for example, and there are many obscure ones - including something called the Procurement Training Institute Board.

Mr. Bloomberg said yesterday that he had warned his subordinates to stay out of the Velella matter when the former senator was sentenced, and that he had no intention of trying to influence his own board. "This administration should not try to influence any panel," Mr. Bloomberg said.

But there is apparently one exception to that rule: Mr. Bloomberg Panel for Educational Policy. Earlier this year, Mr. Bloomberg fired two members who said they would vote against his plan to end so-called social promotion for third graders.

The Local Conditional Release Commission and others like it around the state consider the early release of first-time, nonviolent offenders who have served at least 2 months of a 3-to-12-month sentence.

Only 15 people have been granted such early release in the last five years. Of those, most were first-time drug offenders, although there were two cases of particular note: Judith Smiley, who pleaded guilty to second-degree kidnapping and custodial interference in 2002, was released early that year, and the football player Mark Gastineau was released early in 2000 after being sentenced to 18 months for failing to complete an anger-management course after hitting his estranged wife. That decision was reversed.

Mr. Bloomberg is not the first official to call for the end of these panels, as local jails have become less crowded over the last decade. Indeed, earlier this year, State Senator Joseph L. Bruno cosponsored a bill that would have eliminated county conditional release commissions. He did so after one panel allowed the release of the operator of the day care center, Mary Beth Anslow, after she served three months of a one-year sentence after pleading guilty to endangering the welfare of a child; a three-month-old infant had died at an illegal day care center she ran.

Mr. Velella, coincidentally, voted in favor of the bill to get rid of the panels, but the measure died in a State Assembly committee.

Yesterday, Mr. Bruno said he was "very supportive" of Mr. Velella's early release.

"He is no longer a senator, he is no longer able to practice law, he has been financially hurt and really publicly disgraced," said Mr. Bruno, a long-time ally of Mr. Velella. "He served about a hundred days in jail, and there was no great justice in just keeping him behind bars. He can be out now in the community and doing public works, and I think he intends to do that in a constructive and positive way. So, frankly, I think it just was a good thing on behalf of just the people, generally."

City to Probe Velella's Release

By The Associated Press
Newsday
September 30, 2004

The city will investigate whether outside influence prompted the early release of former Republican state Sen. Guy J. Velella, who left jail three months into a year-long sentence for a conviction in a bribery scandal.

Mayor Michael Bloomberg said Thursday that the Department of Investigation will try to determine if anyone in his administration pressured a little-known commission to approve Velella's release Tuesday.

"The public has a right to know and I'm going to do what I can to find out," Bloomberg said. It is unclear whether the department has the authority to probe influence by anyone outside the administration, Bloomberg said.

The Local Conditional Release Commission was formed in the late 1980s to relieve jail overcrowding by granting eligible convicts early releases.

In New York, the commission of four mayoral appointees has released just five people so far this year. Velella and two others were figures in a bribery scandal involving illegal payments by people seeking public works contracts.

Bloomberg said he was unaware the commission existed until it took action in the Velella case. Since then, he has begun to have doubts about the need for it, he said.

"This commission has probably long since outlived its usefulness," Bloomberg said.

Velella, his father and two other men were charged in May 2002 in a 25-count indictment that alleged he accepted at least $137,000 in bribes from contractors from 1995 through June 2000.

Last May, Velella, a Bronx political leader and legislative force for nearly 30 years, quit the state Senate. Days later he pleaded guilty to fourth-degree conspiracy as part of a deal that kept his ailing 90-year-old father, Vincent Velella, from having to endure a trial and risk conviction and imprisonment.

Though stripped of his license to practice law, Velella is still expected to receive a state pension worth $80,000 a year. A felony conviction does not bar receipt of a state pension.

Secret' Panel Lets Velella out of Jail

By Tom Topousis
Kenneth Lovett
Lorena Mongelli
New York Post
September 29, 2004

Former state Sen. Guy Velella walked out of jail yesterday after serving just three months of his one-year sentence for taking bribes — thanks to an extremely rare early release granted by a little-known commission he once voted to abolish.

Velella won his early release from the city's Local Conditional Release Commission, a four-member, quasi-judicial board appointed by the mayor and given the power to release any prisoner serving between three months and one year in jail.

Correction Department officials gave Velella a MetroCard so he could ride a public bus off Rikers Island at about 3 p.m., spokesman Tom Antenen said.

"This is a normal discharge for someone leaving under an early release," Antenen said.

But Velella's release after serving just a quarter of his sentence was anything but normal. Last year only four city prisoners won an early release from the city commission out of 7,000 who applied.

Also released with Velella was Hector Del Toro, a co-defendant in the bribery case who was sentenced to nine months in jail.

Without the commission's action, Velella, 59, would not have been eligible to leave Rikers on good behavior until he served at least eight months behind bars.

Mayor Bloomberg said he was unaware of the commission's action and had no role in its decision.

"There's an independent board and they're going to do what they think is right," Bloomberg said.

The commission is headed by former city Probation Commissioner Raul Russi. Three of the four panel members last Wednesday voted to release Velella, but they were not required to issue a written decision, said Probation Department spokesman Jack Ryan.

This was Velella's second request for early release. His first request was denied.

The early-release commissions exist in every county and the city under a 1989 state law that gives the panels wide latitude in whom they can set free.

Earlier this year, a commission set free an upstate woman who ran an illegal day-care center where a child died — spurring state Senate Majority Leader Joseph Bruno to move against the panels.

A bill abolishing the program was passed unanimously in February — including a vote by Velella, a Republican, before he resigned his post.

But Assembly Democrats never acted, and the bill died in committee.

Bruno Oks Extra 10g for Jailbird Velella

By Fredric U. Dicker
New York Post
August 16, 2004

PHOTOALBANY —— Disgraced former Bronx state Sen. Guy Velella got an extra $10,000 sweetheart "lulu" payment late last week —— even though he's serving a year on Rikers Island for soliciting a bribe, The Post has learned.

The jailhouse bonus was quietly approved by Senate Majority Leader Joseph Bruno (R-

Rensselaer), who repeatedly claimed —— before Velella admitted his guilt —— that Manhattan DA CRIME PAYS                    Robert Morgenthau was prosecuting Velella for
Guy Velella                       
political reasons
New York Post: Bolivar Arellano
    
Velella, the former Bronx GOP chairman, received $20,625, or 75 percent of the annual $27,500 lulu —— or special stipend —— for serving as deputy majority leader.

Velella resigned in disgrace May 14, just 37 percent into the calendar year. This halted his annual $79,500 salary —— and also made him eligible to receive only $10,175 of the $27,500 lulu.

But instead, he got $20,625.

Bruno spokesman John McArdle explained the extra $10,000 payment "was consistent with what was paid to other members" after lawmakers —— who hadn't received their salaries since April 1 —— completed work on a new budget last week.

However, all the other senators receiving payments are still in the Senate and on the state payroll, and none of them have pleaded guilty to soliciting bribes.

McArdle said he didn't know if the special lulu payment was sent to Velella at Rikers Island or to another address.

Velella was sentenced to a year in jail in a deal with prosecutors under which he pleaded guilty to a single felony of soliciting bribes.

Velella, his ailing 90-year-old father, Vincent, and two others were originally charged in May 2002 in a 25-count indictment that alleged he had accepted at least $137,000 for steering public-works contracts to people who paid bribes.

Prosecutors said the bribes were paid through two law firms controlled by the Velellas.

Though Velella at least temporarily lost his law license as a result of the plea, he was still permitted to receive a state pension of about $80,000 a year —— which he is believed to be collecting at Rikers.

As part of the deal, influence-peddling charges were dropped against Velella's dad.

The former senator was not charged with taking any money directly.

Instead, he would use intermediaries to instruct favor-seeking contractors to hire the father and son's Bronx law firms, or make donations that totaled $60,000 to the Republican state campaign coffers.

After the fees were paid, Velella would then lean on his network of cronies —— alternately threatening jobs and calling in favors —— to grease the wheels of state on the contractors' behalf, prosecutors charged.

Disgraced Guy Skips Apology in Guilty Plea

By Laura Italiano
New York Post
May 18, 2004

PHOTOHe didn't apologize; he didn't elaborate.

Disgraced Bronx powerbroker Guy Velella pleaded guilty to conspiracy yesterday, brusquely admitting he was "wrong" to peddle his influence as a state senator to favor-seeking builders and bridge painters, but saying little else as his political and legal careers ground to a halt.

In return for his plea, Velella, 59, was promised a
Guy Velella (above, outside court       one-year jail sentence - far less than the possible
yesterday) pleaded guilty to               
15 years he faced if convicted at a $137,000
conspiracy and admitted he was          bribery trial that had been scheduled to begin
"wrong" to peddle his influence         
 yesterday.
as a state senator
.
As part of the deal, the Manhattan District Attorney's Office agreed to drop related charges against Velella's 90-year-old father, Vincent.

Velella is scheduled to be sentenced June 21. With good behavior, he'd be eligible for release after eight months. But his political career is over.

Velella resigned Friday from the Senate seat he'd held 18 years and from his chairmanship of the Bronx Republican Party in preparation for the plea. His admission of guilt also means the forfeiture of his law license. He will collect an $80,000 Senate pension.

"As a state senator, I made phone calls and met with government officials to help clients who paid fees in excess of $10,000 to a law firm other than mine in which I was not a partner but my father was," Velella admitted in court.

"I knew that those fees resulted in a financial benefit to my father and, ultimately, to me.

"I knew that making these calls under such circumstances was wrong."

Prosecutors had charged that favor-seeking contractors were instructed via intermediaries to hire Vincent Velella's law firm and donate another $60,000 to Republican state campaign coffers.

Velella Officially Steps Down

By Kenneth Lovett
New York Post
May 15, 2004

ALBANY- State Sen. Guy Velella officially resigned his seat yesterday, ending a 28-year influential legislative career and paving the way for a plea deal on bribery charges next week that will send him to prison for a year.

The powerful Bronx Republican filed his resignation letter late yesterday afternoon with Lt. Gov. Mary Donohue and Secretary of State Randy Daniels, as required by law.

Neither office would release the letter.

"We have received a document from Sen. Velella and we're reviewing it right now," said Department of State spokesman Peter Constantakes. A knowledgeable source confirmed it was a resignation letter, effective at 11:59 last night.

The Post reported Wednesday that the long-time lawmaker planned to step down in advance of pleading guilty Monday to a felony that will land him a one-year jail term.

A spokesman for Velella, who despite the looming conviction still stands to collect a state pension worth up to $80,000 a year, had no comment.

Velella was indicted on charges that he and his father's law firm pocketed $137,000 in exchange for the senator steering state contracts and housing subsidies. His trial is scheduled to begin on Monday.

Velella Set to Plead Guilty and Lose State Senate Seat

By Michael Cooper
New York Times
May 14, 2004

ALBANY, May 13 - State Senator Guy J. Velella of the Bronx, a powerhouse in city and state Republican politics, plans to plead guilty to a felony charge stemming from a bribery case as part of a deal that will send him to jail for up to a year and force him to resign his Senate seat, two Republican officials who were told of his plans said Thursday.

The plea deal will end a political career that has spanned three decades and create a rare spectacle in this heavily gerrymandered state: a November election for State Senate whose outcome could actually be in doubt. Mr. Velella's wishbone-shaped district - which stretches up the eastern Bronx from Throgs Neck and into Westchester, and then back down into northern Riverdale - has grown increasingly Democratic in recent years.

Mr. Velella was indicted two years ago on charges that he took bribes for helping people win lucrative state contracts. His father and law partner, Vincent J. Velella, was also charged in the case.

As part of the plea deal, prosecutors agreed not to pursue the charges against his father, who is 90 and who serves as a commissioner on the City Board of Elections, said the two Republicans, who spoke on the condition of anonymity.

Because Senator Velella is stepping down late in an election year, his seat will remain vacant until the regularly scheduled election is held on Nov. 2. Although Democrats believe they can win the seat, they acknowledge that it is unlikely that they will be able to take control of the State Senate, where Republicans hold a 38-to-24 majority.

As chairman of the Bronx Republican Party and the lone elected Republican from the Bronx, Senator Velella wielded tremendous clout in Albany. He was close to the Senate majority leader, Joseph L. Bruno, and served as chairman of the Senate Republican Campaign Committee, which raises money to help the Republicans maintain their majority by aiding party incumbents and challengers in close races.

Senator Velella, known for his street savvy and gruff charm, earned a reputation for winning pork barrel projects for the Bronx. As a ranking member of the Republican-controlled Senate, he was the go-to guy for a series of Democratic and Republican city administrations looking to Albany for help on everything from state aid to new laws.

The Manhattan district attorney's office declined to comment on the Velella case, which was set to go to trial next Monday. Gerald McKelvey, a spokesman for Mr. Velella, also declined to comment. On Tuesday night, Mr. McKelvey announced that Senator Velella was halting all fund-raising, but he declined to say why. News of Mr. Velella's planned plea was first reported Thursday by The New York Post and Newsday.

The guilty plea would make Senator Velella the third member of the current Legislature to be convicted of a crime.

Assemblywoman Gloria Davis, a Bronx Democrat, resigned in 2003 after pleading guilty to a bribery charge. Assemblyman Roger L. Green, a Brooklyn Democrat, pleaded guilty to a misdemeanor for accepting travel reimbursement for trips he did not pay for and was sentenced in March to fines and probation.

A guilty plea by Senator Velella, after years in which he maintained his innocence, could prove an embarrassment for the many state and city Republicans who stood by him.

Many of his fellow Republicans in the State Senate, led by Mr. Bruno, transferred more than $150,000 from their own campaign funds to Mr. Velella's campaign fund, which he used to pay his defense lawyers. Former Mayor Rudolph W. Giuliani made a point of campaigning with him after news that he was under investigation surfaced. Mayor Michael R. Bloomberg marched with him in parades after he was indicted.

When word surfaced last month that a plea deal was in the works, Senator Bruno angrily defended Mr. Velella, saying he had been "drawn and quartered practically by press releases and leaks and it is unfair because he is an innocent individual.'' Senate Republicans declined to comment on the case Thursday.

It was unclear Thursday exactly which charge in the 64-page, 25-count indictment Mr. Velella would plead guilty to. The indictment accused him of pressuring people seeking public works projects into retaining a law firm in which he was a secret partner.

By pleading guilty, Mr. Velella will lose his law license. Officials declined to comment on Thursday night on whether he would be eligible to collect his pension.

An open Senate seat is likely to attract intense interest. Names of potential Democratic candidates for the seat surfacing in political circles include Assemblyman Jeffrey Klein of the Bronx; Bill Mulrow, who ran for state comptroller in 2002; Clinton I. Young Jr., a member of the Westchester County Legislature, and City Councilwoman Madeline T. Provenzano of the Bronx. Anthony S. Colavita, the supervisor of the Town of Eastchester, is mentioned as a possible Republican candidate.

Democrats said they think they can retake that seat and the seat of State Senator Olga A. Mendez of East Harlem, a former Democrat who became a Republican even though Democrats outnumber Republicans by 10 to 1 in her district.

If they were to succeed in taking those two seats, there would be only four remaining Republicans from New York City in the State Senate - which could make it more difficult for the city to push its agenda there.

Disgraced Velella's 80g Pension Parachute

By Kenneth Lovett
New York Post
May 12, 2004

ALBANY - State Sen. Guy Velella - who is expected to resign his seat as soon as today and plead guilty on corruption charges - could still bank as much as $80,000 yearly from his state pension, officials said.

State officials say nothing in state law provides for a lawmaker convicted of a felony to lose their pension.

Sources said Velella, the powerful veteran Bronx lawmaker, is expected to announce his resignation today and plead guilty to bribery charges on Monday before his trial begins.

Velella, who has been in the state system for more than 31 years, makes $79,500 annually as a lawmaker, plus $27,500 for his role as senior assistant Senate majority leader.

His estimated maximum total pension would amount to $80,250 per year based on state pension formulas.

Velella was indicted on charges that he and his father's law firm pocketed $137,000 in exchange for the senator steering state contracts and housing subsidies.

The Post reported yesterday that Velella will plead guilty to a felony and agree to one year in jail.

Charges against his father, Vincent, will be dismissed as part of the deal.

Those close to Velella told The Post he decided to plead guilty to spare his ailing father and also because of money concerns.

"He really wanted to make sure the old man was okay," one source said. "That was a key consideration."

Another Velella ally said the senator told him he's already blown through $1 million in legal fees and was concerned about spending at least $25,000 per week on a four-week trial, in which he faced possible conviction anyway.

The Post recently reported that Velella had used hundreds of thousands of dollars from his campaign coffers to help pay his legal fees. His supporters also set up a legal defense fund on his behalf.

Velella's Father Offers One Hurl of an Excuse


By Laura Italiano
New York Post
April 28, 2004

Vincent Velella - indicted on bribe-receiving charges along with his son, state Sen. Guy Velella - is demented and vomits uncontrollably, a psychologist testified in Manhattan yesterday.

Not only that, but he suffers from diabetes, colon and prostate cancer, heart disease, gout and an esophageal cyst that causes spontaneous, violent fits of coughing and vomiting, added his lawyer, in whose car Velella threw up recently.

"He's been diagnosed with Alzheimer's since August of last year," said the lawyer, Murray Richman, who is trying to convince a judge that the charges against his 90-year-old client be dropped.

"If a man cannot assist his counsel at trial, he should not stand trial," Richman said after the first day in a lengthy hearing to determine the elder Velella's fitness for a trial scheduled to begin May 17.

The wheelchair-bound old man sat silently - save for occasional body-wracking coughs - as prosecutor Eric Seidel grilled an expert shrink on how someone who is "demented" can still recall his long list of ailments and remain a practicing attorney.

Prosecutors have yet to question witnesses about the elder Velella's continued position as a city commissioner of elections.

The Velellas face up to 15 years in prison if convicted of allegedly pocketing $137,000 through their law firm in exchange for the senator steering state contracts and housing subsidies.

The case against both father and son is continuing.

Bruno: Velella's Defense Fund Ok

By Kenneth Lovett
New York Post
April 21, 2004

ALBANY - Senate Majority Leader Joseph Bruno defended the use of $400,000 in campaign funds to help pay indicted Sen. Guy Velella's legal bills as "perfectly appropriate and legal."

"Sen. Velella has been a leader here in the Senate for a lot of years," Bruno said. "He's served his constituency with great distinction and has been reelected to the Assembly and the Senate by his constituency over and over and over.

"He is innocent until proven otherwise of any crimes and any of the dollars that are being used in his defense are legal and appropriate."

Bruno said a 1989 state Board of Elections ruling says campaign funds can be used to cover legal expenses tied to a public office.

"When people make contributions, they contribute to an individual to help keep that individual in office or elect that individual to office," Bruno said.

Velella goes on trial May 17 on charges his and his father's law firm pocketed $137,000 in exchange for Velella steering state contracts and housing subsidies.

Velella: Gag on Legal $$

By Laura Italiano
New York Post
April 20, 2004

Bronx state Sen. Guy Velella fought yesterday to keep jurors from hearing how he used $400,000 in campaign contributions to pay the lawyers in his upcoming bribery trial.

Velella ardently defended his controversial use of the contributions - which was first revealed in The Post - saying his donors have been aware of his much-publicized, two-year-old bribe-receiving indictment and gave him money anyway. "Why would you contribute to someone? You want to see them in office," Velella said.

The 18-year Senate veteran and Bronx Republican Party chairman made his comments in a Manhattan Supreme Court hallway. His lawyers had just finished arguing before a judge that should Velella take the stand, prosecutors must be barred from grilling him about the legal fees.

They were a strictly legal use of campaign funds, the lawyers argued, citing a 1989 state Board of Elections opinion permitting that campaign funds be used to pay legal fees arising from charges "related to the political campaign or the holding of public office."

Hearing about the $400,000 could confuse or prejudice a jury, defense lawyer Marjory Peerce argued. But prosecutor Eric Seidel said elements of the payments raised relevant questions about Velella's character.

Velella received $147,500 from the funds of nearly two dozen other senators in early 2003, at about the same time he made a $200,000 payment to Stillman & Friedman, the high-powered Park Avenue firm defending him, Seidel said.

Velella also spent $10,000 in campaign funds to hire lawyers for four secretaries from his district office after they were subpoenaed by the DA's office, the prosecutor told the judge.

Velella said that he could have paid his lawyers by setting up a defense fund - a blind trust whose donations would not, by law, need to be reported at all.

Justice Joan Sudolnik said she'll rule Thursday.

Velella goes on trial May 17 on charges his and his father's law firm pocketed $137,000 in exchange for Velella steering state contracts and housing subsidies.

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