LPCiminelli Claims Bid-Rigging Case Has Cost Company Billions

By Ryan Whalen City of Buffalo

PUBLISHED 8:05 PM ET Feb. 08, 2017

BUFFALO, N.Y. -- Accusations of bribery and fraud against three former LPCiminelli executives has cost the company nearly $4 billion. In court documents filed this week, attorneys claim the company lost about 20 contracts over the last two years and laid off 10 percent of its workforce as a result.

That drawn out proceedings in New York City could continue to hurt the company is part of the argument to throw the charges it out, but legal analyst John Elmore says it won't be easy to convince a judge.

"I don't believe under any circumstances that this case would be dismissed on motions previous to trial," Elmore said. "The grand jury's determined that there's probable cause."

If the judge refuses dismissal, attorneys for Louis Ciminelli, Michael Laipple and Kevin Schuler say their charges should at least be tried in Western New York. They are three of the eight remaining defendants in an alleged widespread conspiracy connected to the rigging of state economic development contracts, but the executives say their charges are separate and center around Buffalo.

"I think that this motion is a motion that was properly made. I think it was good defense work to make that motion but I don't think it's going to prevail," said Elmore.

Their lawyers pointed out by severing and transferring the case, it would allow for a quicker, more convenient and less expensive trial for defendants, witnesses and law enforcement. Elmore says a judge would consider that but only to a certain extent.

"It's going to be a long, expensive trial. Many of the witnesses are going to be the same and duplicative and it would be in a court's convenience and the government's convenience to have one trial instead of two."

The court documents also provide further detail about the employment situation for Ciminelli, Laipple and Schuler. All resigned from their positions with the company but now are working with a new company which will pursue development opportunities outside of New York state. They could coordinate with LPCiminelli in the future.