Former Yonkers City Councilwoman Annabi and Former GOP Chairman Zehy Jereis Suffer Imprisonment Over Crimes of Corruption
NEW YORk, NY --November 19, 2012 -- Preet Bharara, the United States Attorney for the Southern District of New York, announced that SANDY ANNABI, the former Democratic Majority Leader of the Yonkers City Council, and ZEHY JEREIS, the former head of the Yonkers Republican Party, were sentenced today to six years and four years in prison respectively for their bribery and extortion convictions related to their sale of ANNABI’s City Council seat.
On March 29, 2012, a jury found ANNABI and JEREIS guilty on all 11 counts after a seven-week trial before U.S. District Judge Colleen McMahon. As part of their corrupt scheme, Councilwoman ANNABI accepted nearly $200,000 in secret payments from JEREIS in exchange for taking official actions, including reversing her vote to approve two high-profile real estate development projects. ANNABI was also convicted of making false statements to financial institutions related to loans she was seeking for two houses and an apartment in Yonkers, and for filing false federal income tax returns.
U.S. Attorney Preet Bharara stated: “Today’s sentencing of Sandy Annabi and Zehy Jereis turns the page on a sordid chapter in the history of the great City of Yonkers. The defendants cheated the public and now they have been brought to justice. Public officials should understand that we have never been more committed to making sure that corruption does not pay.”
According to the evidence at trial and the superseding Indictment originally filed in White Plains federal court:
ANNABI was first elected to the Yonkers City Council in November 2001 to represent the Second District and was subsequently re-elected in 2003 and 2005. She served as the Democratic Majority Leader of the Council during the latter part of her third term in office. The Yonkers City Council’s primary function is to consider and vote on the city’s budget, zoning changes, and other legislation. JEREIS served as Chairman of the Yonkers Republican Party from the fall of 2003 through the fall of 2007. As the Party Chairman, his duties were to promote the Republican Party in Yonkers and to advance the interests of Republican elected officials and candidates. JEREIS used his considerable influence and contacts to assist ANNABI with all three of her successful campaigns.
Since Annabi first announced her candidacy for office in 2001, ANNABI received nearly $200,000 in secret payments from JEREIS and others in exchange for taking favorable actions in her official capacity on matters in which they had an interest and that were pending before the City Council. These matters included two real estate projects known as the Longfellow Project and the Ridge Hill Development project.
The Longfellow Project
In 2003, Yonkers developer Milio Management was seeking to redevelop an area of land, known as the Longfellow Project, which was partially located within the Council District represented by ANNABI. During a City Council meeting on June 14, 2005, ANNABI proclaimed her strong opposition to the project, stating: “Even if the entire community supported [it], I would be opposed.” She also said that the project was “outrageous” and a “slap in the face to the taxpayers of Yonkers.” Despite considerable effort, Milio Management was unable to move the project forward in the face of ANNABI’s opposition.
In April 2006, Milio Management hired Westchester County attorney Anthony Mangone to assist in persuading ANNABI to support the Longfellow Project. Shortly thereafter, Mangone arranged a meeting between a representative of Milio Management and JEREIS. During the meeting, JEREIS advised the representative that he could help persuade ANNABI to support the project. Later, Mangone told Milio Management that for the project to proceed, the developer would have to pay ANNABI $30,000 in exchange for her support. In the summer of 2006, Milio Management gave Mangone $30,000 in cash for ANNABI. Mangone then gave $20,000 in cash to JEREIS to give to ANNABI. At a City Council meeting that September, ANNABI reversed her long-held opposition to the Longfellow Project and voted in favor of awarding it to Milio Management. Shortly after receiving the $20,000, ANNABI made several substantial cash and credit card purchases, including airline ticket upgrades, a Rolex watch, and a diamond necklace.
The Ridge Hill Project
The Ridge Hill Project was a proposal by developer Forest City Ratner to develop an 81-acre tract of land into retail, restaurant, and office space with hundreds of residential housing units, a hotel, and a conference center. ANNABI was an outspoken critic of the proposed Ridge Hill Project and voted against both the project and legislation that would allow it to move forward over her opposition. ANNABI and others also filed a civil lawsuit to effectively block the project. As the City Council was considering the Ridge Hill Project, Forest City Ratner made repeated and unsuccessful efforts to convince ANNABI to vote in favor of the project.
On June 2, 2006, after being introduced to representatives of Forest City Ratner, JEREIS advised them that he could arrange a meeting for them with ANNABI. JEREIS and representatives of Forest City Ratner also had an agreement in which the developer would give him a consulting job sometime after ANNABI formally voted in favor of the Ridge Hill Project. After two meetings with JEREIS and Forest City Ratner’s representatives, which were held five days apart, ANNABI reversed her opposition to the Ridge Hill Project. On June 15, 2006, she issued a press release – drafted by JEREIS and representatives of Forest City Ratner – informing the public of her support for the project. One month later, at a City Council meeting on July 11, 2006, ANNABI voted in favor of the zoning change necessary for the Ridge Hill Project. Shortly after ANNABI changed her vote on the Ridge Hill Project, JEREIS received the promised consulting contract from Forest City Ratner worth $60,000 over one year.
Other Secret Payments to Annabi and Efforts to Conceal These Payments
JEREIS also secretly gave ANNABI money and purported loans to finance the purchase of two residential properties located outside of her Council District. To obtain favorable financing, ANNABI contemporaneously submitted applications to two different banks, advising both that she intended to occupy the house for which she was seeking financing and concealing that she was seeking to borrow money from the other bank for a second house. The closings for the two loans occurred only three days apart. Furthermore, ANNABI lived in one of these houses, which was outside of her Council District, despite state and local laws that required her as a Councilmember to live within her District. JEREIS then bought an apartment for ANNABI within her Council District so she could meet the residency requirement. JEREIS made the down payment on the apartment and the monthly mortgage payments. In addition, in her loan applications for one of the houses and for the apartment, ANNABI falsely inflated her income. Her loan applications also included fake pay stubs, W-2's, and bank statements.
From 2002 through 2007, ANNABI affirmatively concealed the illegal benefits she received from JEREIS and others by filing annual financial disclosure statements that intentionally omitted the illegal payments. ANNABI also filed false income tax returns in 2005 and 2006.
* * *
ANNABI, 42, and JEREIS, 40, both of Yonkers, New York, were each convicted of one count of conspiracy to make and accept corrupt payments, one count of conspiracy to deprive the City of Yonkers and its citizens of ANNABI’s honest services, one count of receiving corrupt payments, and one count of extortion. ANNABI was also convicted of one count of receiving corrupt payments, three counts of making false statements to a bank, and two counts of filing false tax returns. JEREIS was also convicted of one count of making corrupt payments.
Mangone was initially charged with ANNABI and JEREIS in January 2010. He pled guilty on November 29, 2010, to conspiracy, bribery, extortion, and tax evasion charges and is awaiting sentencing.
In addition to their prison terms, ANNABI and JEREIS were each sentenced by Judge McMahon to two years of supervised release, and each ordered to forfeit $209,501.99. In addition, ANNABI was ordered to forfeit $1,060,800. The defendants were also ordered to pay $13,884 in restitution to the City of Yonkers, representing a portion of ANNABI’s salary, and $64,071 to reimburse the City of Yonkers for legal fees. ANNABI was also ordered to pay $164,460.68 to PNC Bank. In addition, ANNABI was ordered to pay $33,000 for the costs of prosecution to the United States Government. Judge McMahon ordered the defendants to surrender on or before March 4, 2013.
Mr. Bharara praised the work of the FBI and the IRS Criminal Investigation Division.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jason P.W. Halperin and Perry A. Carbone are in charge of the prosecution.
SOURCE: Office of United States Atorney Preet Bharara
Ah, yes, but from whence did the money originate?
The feds will be happy with these two sacrifices though it seems. Too much trouble to probe deeper. Open your mind and follow the money and you can see the true villans for yourself.
Posted by: threesidesto truth | November 20, 2012 at 07:50
This is the start of what hopefully will be two or three investigations that probe the activities of a few hundred people.
Just about anyone associated with Nick Spano will have to wonder if they are being watched for the rest of of their life.
Come to think of it. We're probably ALL being watched (this website even).
Posted by: Forgot To Flush | November 20, 2012 at 10:20
"from whence did the money originate"...why would
jeries pony up 200,000 before he even knew that
ridge hill was a proposed developement project? and
how could he have known in advance that annabi would
be the fifth vote needed in a super majority..or that
she would be a holdout on a project that did not
adversely affect her district?...is he some kind
of seer...? and didn't annabi first refuse his request
to change her vote..so if he owned her vote why
wouldn't she simply agree with his initial request..
Posted by: anon | November 20, 2012 at 14:26
In reply to anon - Edelman - your analysis seems plausable but this case was not only about Ridge Hill, which everyone seems to focus on. The issue of mortgage fraud and apparent tax evasion with falsified W2s and tax filings is separate and real and easily verified. What would have been the sentence for Annabi if it was just the fraud charges?
Posted by: anon | November 20, 2012 at 15:04
i agree...totally the guilt with regard to all the
rest was proven beyond a reasonable doubt..but the judge did not sentence them to what the government
recommended and that is very telling...not even
the guidelines were adheared to..and that is even
more telling even though she let the verdict stand
i think she was pissed that the beneficiary of
the vote change was given a pass
Posted by: anon | November 20, 2012 at 15:50
I have to agree to some extent. The true beneficiary escaped prosecution. Who was Jereis shilling for???
Certainly not Forest Ratner, who barely wanted to give him the no show job promised. Who directed Jereis???
Follow the money, always.
Posted by: Onestlee | November 20, 2012 at 18:45
wow crime does pay. milios and forest city ratner are the true criminals how many people did they bribe only in america that you get off that easily.. do the milios have to pay back all that federal money they received in the past to renovate buildings in south west yonkers.. Mangone was right what a bunch of cheap bastards and the ring leader mangone the rat gets off with nothing i give up on the federal system. go after the little fish too afraid of the big sharks
Posted by: thats it | November 20, 2012 at 19:27
guilty counselor guilty...paint any picture you want guilty and senteneced Fairly ..CASE CLOSED ? appeals be hoove you good luck$ the people rest their case JUSTICE SERVED
Posted by: AMERICA | November 20, 2012 at 19:44
This whole event has S P A N O written all over it.
Nick, Mike and Co. are so intertwined in this corruption, it is incredible that the dimwit got elected Mayor and that he's been given a pass on this by the press.
For God's sake, he even had Zehy's wife in a picture with him on a campaign mailer. Word is that she works in the Mayor's office.
Zehy is their creation and they own him. As dumb as it may seem they chose an evil, crook like Zehy to be their point man in politics, years ago.
Let's not forget that Mikey left an assembly seat to become a high paid lobbyist for the developer.
The press should be calling for Dumbo's resignation as a result of Nick's conviction and these convictions. The mayor of the fourth largest city on NY should avoid even the appearance of impropriety. Mikey can't do that. He doesn't now and never will have clean hands.
Then again the press is in the Spano pockets, especially News 12 and Jeanine - dear personal friends of the family.
Why the JN editors can't call for Mikey's resignation is baffling. If the last name of the Mayor were not SPANO, the pressure from the JN to get out would be incredible.
What is most amazing is how oblivious and apathetic the people of Yonkers are, in general.
For a democracy to survive, it has been said, there needs be an intelligent electorate. We ain't got one, for sure, in Yonkers.
The ultimate insult to this all, will be Edelman's defense of Jumbo and Dumbo, which is sure to follow this comment. That guy's been an integral part of the team which has ruined Yonkers over the last 30 years.
Posted by: RICO | November 21, 2012 at 07:40
sure just let's get rid of the constitution because
you don't like the spano's...let's condemn mike
and call for his resignation because his brother is
in jail simply because you THINK..there is something
wrong...why bother with proof...you have it all
figured out...amazing! but that is not how we
do things in America...
Posted by: anon | November 21, 2012 at 12:58
You really are an asshole. That comment gave me a good chuckle.
This is not a constitutional matter, it's a matter of ethics. But then again, considering your friend set, and your history in politics, what would you know about ethics.
Dare say if you ever had to work to earn a living, instead of milking the political teat for your entire life, you's be a pauper. So don't flaunt your measly wealth, it's ill begotten
Posted by: RICO | November 21, 2012 at 13:32
You're right Mike. In America we have lawyers that minipulate our legal system which allows he with the most $$$ to walk away unscathed. Please you should be the last person to be talking about ethics.
Posted by: Anon | November 21, 2012 at 13:58
i guess fairness no longer counts on this blog...
sounds like a mob psychology..a lynch mob! I feel
badly for you guys..there is absolutely nothing
to indicate that mike spano has done anything wrong
and yet because his brother is in jail you want
him to resign..that isn't an ethical issue...mike
has no conflict of interest and by the way I set
the bar for that standard in the da's office..
people vs francis pinto...way back when..still the
law..but yet your personal accusations reveal your
mindset..you don't like lawyers because you think
they manipulate the legal system..what a bunch of
crap...you are making exuses and casting aspirations
for your own failure
Posted by: anon | November 21, 2012 at 14:31
I f I were a lawyer (and maybe I am - I'll leave it to you to guess or surmise), I believe that none of us should be involved in anything that even has the appearance of impropriety.
You, on the other hand, have been involved, perhaps solely, with things that appear anything but appropriate - including not being able to admit that Mike Spano should resign.
He is tainted with all of this and he cannot seperate himself from it.
Too bad for people like you and for the fact that we do not have a legitimate media.
I use the name "RICO", not because I am hispanic, but because I believe that we need the Feds to initiate a RICO prosecution to take down the whole corrupt organization - politicians, media, and consultants.
Posted by: RICO | November 21, 2012 at 14:41
your claim that spano is tainted is an opinion not
based on facts..and that is about as unamerican
as one can get.he has not been charged with a crime
he has not been implicated in wrongdoing..you can't
possibly have a legal education because you can't
separate your disdain for spano from whether or not
he has done anything that would require him to resign
you simply have an opinion that is based on who he
is related to and who he might have some prior
poltical dealings with ..by that reasoning just
about every public official would have to resign..
and for you to say that we don't have a legitimate
media is laughable...the feds investigated yonkers
and they indicted annabi and jeries...if you have
any information that is pertinent to a crime
being committed i invite you to bring it to the
attention of the US attorney..instead of ruminating
about how corrupt everyone else but you are
Posted by: anon | November 21, 2012 at 14:58
The C.O.Y. is a politically dyfunctional entity that is archaic and non competitive.if the give aways from the i.d.a were not enough to entice legitmate business to move forward with projects/ revert to illicit ways.this is not just stigma it is pure fact. time and time again the politics of yonkers have always hurt its image.a city of this size with its proximity to n.y.c and great infrastructure should glow like a fire fly in the night? not really no one wants to pay the shakedowns or deal with the tarnished image of being part of yonkers.lets go back some years TOYS ARE US LOCATION CENTRAL AVE yonkers ny indicted/covicted city official served time name oops Calvi..plumbing inspector city of yonkers arrested currently under indictment awaiting prosecution... same Modus aperandi 25 years later ..seeing how its thanksgiving ime gratefull for what i got by WORKING NIGHTS WEEKENDS HOLIDAYS UNDER ADVERSE CONDITIONS THANKS THANK YOU to the city of yonkers
Posted by: political dyfunction/business as always | November 21, 2012 at 17:01
We do have a great judicial system, A great set of laws. The other thing we have are people smart enough to know when to do their buisness with a paper bag and no trace to them. That is the component that everyone is missing. If you do not think this stuff went on and still is in Yonkers government you may need shock therapy.
Posted by: threesidesto truth | November 21, 2012 at 21:29
and the problem has always been who is going to make
the complaint when cash changes hand ..the person
who pays it and gets what he wants..or the person that
recieves it and gets what he wants!
Posted by: anon | November 24, 2012 at 11:55
Stalemate!
Posted by: threesidesto truth | November 25, 2012 at 15:57