Brega convicted of fraud, bribery, theft in federal corruption trial

WHITE PLAINS - A federal jury Wednesday convicted deposed Rockland bus system magnate Richard Brega on three corruption-related charges as the panel will continue deliberating Thursday.

The jury left for the day deadlocked on the two final counts against Brega, 50, a Stony Point resident who once ran the county bus system before being indicted on federal charges that include bribery and conspiracy involving a BOCES transportation official.

Brega declined comment while walking from the federal courthouse but gave two thumbs up to a photographer for The Journal News/lohud.com.

The U.S. Attorney's Office released the partial verdict after 2 p.m. during the fourth day of jury deliberations. The prosecutors plan to release a full statement when the trial ends.

After a two-week trial and several days of considering the evidence, the jury convicted Brega of mail fraud, bribery concerning a program receiving federal funds, and theft concerning a program receiving federal funds.

The jurors remained deadlocked on the charges of conspiracy to commit mail fraud and obstruction of justice.

Brega's attorney Kerry Lawrence confirmed the three convictions just before 3 p.m. and said Judge Kenneth Karas gave the jury an "Allen Charge" for the remaining two counts. He declined comment until the trial ended.

Such a judicial instruction is given when, after deliberation, a jury reports that it is deadlocked and unable to decide on a verdict. A judge uses the instruction to try and dislodge jurors from entrenched positions.

Brega's indictment forced him to resign from the multiple companies he onced owned that did business with governments and educational institutions in Rockland. The multi-million dollar contract to run the county's bus system expires this year. The county will seek proposals for an operator.

The jury found the prosecution evidence and testimony proved that Brega took money but never repaired BOCES buses.

He paid off former BOCES Transportation Supervisor William Popkave as part of a conspiracy that involved phony invoices and other paperwork to convince inspectors maintenance and repairs were being done on the BOCES fleet. BOCES ended its contract with Brega and bought new buses.

Prosecutors said Popkave, his family and friends got $40,000 in free vehicle maintenance from Brega as payment for Popkave cooperation in falsifying invoices.

'Maximizing profits'

Rockland District Attorney Thomas Zugibe said Brega's greed became his undoing. The county awarded Brega's a five-year, $70 million contract in late 2011 to serve an estimated 10,000 bus riders in Rockland.

Brega also faces felony charges in Rockland for corruption after the federal cases ends.

"Brega cared about one thing: maximizing profits," Zugibe said. "He could care less for the public and lives of the young children. This is about greed."

Zugibe said half the BOCES buses had to be taken out of service after his detectives and the FBI uncovered the scheme. He said the buses were in "deplorable, unsafe condition."

He said Brega faces significant prison time on the federal convictions.

County Executive Ed Day called Brega's actions potentially harmful to the children who rode the buses.

“The actions of Richard Brega were actually more egregious than the charges against him because his scheme potentially put children’s lives at risk," Day said. "We are satisfied with the jury’s decision to find him guilty on these three charges and look forward to the final two charges being resolved.”

The verdict ends "a difficult chapter at Rockland BOCES," spokesman Scott Salotto said Wednesday. He said BOCES worked closely with the Rockland District Attorney's Office, the U.S. Attorney's Office and the FBI.

"As an agency that works with such passion for Rockland County students and families, we never anticipated that we would find ourselves a victim of such a disturbing crime," Salotto said. "We remain deeply saddened that a former employee utterly betrayed our trust. Our commitment to our students and their families remains ever strong and Rockland BOCES will continue this important work each and every day."

The jury started deliberating five charges against Brega on Friday morning and continued Wednesday after a two-week trial - including testimony by video of a co-conspirator - before Judge Kenneth Karas in the federal courthouse in White Plains.

The jurors considered charges that Brega bribed Popkave and they created documents showing his company repaired school buses when it didn't.

The alleged fraud occurred from 2012 through 2014, federal prosecutors said.

Brega's company provided vehicle repair service and preventive maintenance for Rockland BOCES’ bus fleet. Brega's company DOT also would also routinely overcharge the Rockland Board of Cooperative Educational Services OCES for labor and parts, prosecutors said.

Richard Brega bribery trial: Deliberations resume Monday

TRIAL: Key prosecution witness William Popkave testifies

Key testimony came from Popkave, BOCES' former transportation supervisor, whose testimony the jury heard on video tape. His heart condition prevented him from leaving Florida, where he's retired. He pleaded guilty in the case and became a prosecution witnesses to get probation for his role in the scheme.

Popkave, 62, formerly of Nanuet, told the jury that he schemed with Brega to create fake invoices for maintenance of school buses that were never brought to the repair shop. He answered questions from the prosecution and defense for three hours.

Popkave testified that Brega provided him with $40,000 worth of free repair work for his cars and those of his relatives and friends. Lawrence said Brega did repairs for many people on credit and Popkave paid by giving Brega specialized tools for his new collision repair business.

Brega's defense attorney Kerry Lawrence countered that Popkave devised ways without Brega's knowledge to convince state inspectors that he was keeping up with requirements for regular preventive maintenance on BOCES' fleet of school buses.

Lawrence argued the FBI and prosecutors strong-armed and intimidated Popkave and Brendon Sweeting, a customer service advisor for Brega, to give investigators testimony making Brega the orchestrator of the scam, in an effort to stay out of prison.

He called then both prosecution witnesses liars. He noted Sweeting testified for the government to avoid being charged with Brega and Popkave.

“They were pressured to say what the government wanted to hear to avoid jail time," Lawrence said. "The government, U.S. attorney, and FBI's case was engineered, and the witnesses falsely accused Mr. Brega of the illegal acts.”

During his summation Thursday, Assistant U.S. Attorney Michael Maimin detailed the prosecution's case about how the two men conspired to create fake invoices for maintenance of buses that were never taken to the repair shop at Brega D.O.T. in Valley Cottage.

He said there was no preventive maintenance on the buses for months at a time, which could have created dangerous situations for the children. He said records show the buses were maintanenced right before state Department of Transportation inspections to make it seem like the vehicles carrying BOCES students, including those with disabilities, were maintained.

Maimin minimized the defense's contention that Brega was too busy to have participated in the scam with Popkave, and said Brega knew exactly what was going on.

Maimin said Brega felt pressured to produce $200,000 a month from his companies to cover his expenses and profit.

"Richard Brega stole from BOCES," Maimin told the jurors. "Richard Brega bribed a public official. Richard Brega covered up. Richard Brega cheated."

Lawrence said the amount of money Brega was accused of stealing is minor given the success of his business, noting Brega's revenues rose from $5 million to $23 million from 2012 to 2014. He noted Brega did $94,000 in "free work for BOCES."

"It’s not a crime to be aggressive. It's not a crime to be a successful businessman," Lawrence told the jury.

Brega once ran the Rockland bus system for an estimated 10,000 riders before he was ordered to resign from his companies based on the federal corruption charges.

Brega stepped down from his companies due to the corruption charges.

He pleaded not guilty after his arrest Jan 26 on the federal charges, which resulted from a joint investigation by the Rockland District Attorney's Office, the FBI and the U.S. Attorney's Office in White Plains.

Brega Transport Corp. has operated the county’s Transport of Rockland, known as TOR, and Tappan ZEExpress bus lines, with a fleet of 60 buses, since 2013 after it was awarded a five-year, $70 million contract in late 2011 by the Rockland Legislature. The buses serve an estimated 10,000 riders.

In a hard-fought battle for the contract, Brega took over after providing a lower bid than the Rockland Transit Corp., a subsidiary of Coach USA, which had held the contract since 1976.

The countywide bus contract is up for rebid this year.

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