An explanation has finally emerged to explain why federal prosecutors suddenly dropped bribery charges against developer Aaron Malinsky 10 days ago, in connection with State Sen. Carl Kruger’s corruption case, the New York Times reported.

Prosecutors conducted a thorough investigation into charges that Malinsky paid $472,000 in bribes in exchange for Kruger’s approval of his projects, according to court papers, but “there were serious questions” surrounding his guilt, according to prosecutors. [more]

From left: developer Aaron Malinsky, Carnasie Plaza and Sen. Carl Kruger

Federal prosecutors agreed to drop a multi-count indictment against real estate developer Aaron Malinsky, who was charged earlier this year with paying about a half-million dollars in bribes to state Sen. Carl Kruger.

Malinsky, founder of Manhattan-based PA Associates, was charged in March with bribing Kruger in connection with several real estate projects linked to his firm, including Canarsie Plaza, a big-box retail project on Avenue D in Brooklyn.

Malinsky and lobbyist Richard Lipsky were later accused in an 11-count indictment of committing mail and wire fraud, allegedly funneling hundreds of thousands in bribes to Kruger through Michael Turano, a gynecologist who was a companion of Kruger’s. [more]

City Point rendering and Aaron Malinsky

A federal grand jury handed down a new 11-count indictment in the state Sen. Carl Kruger ongoing bribery scandal charging the defendants, including real estate developer Aaron Malinsky and lobbyist Richard Lipsky, with conspiracy to commit mail and wire fraud.

Malinsky was previously indicted for allegedly making $500,000 in bribes to Kruger, a Democrat from Brooklyn, who later stepped in to help move forward several major real estate developments.

Lipsky, who represented various high-profile clients including Forest City Ratner, also allegedly paid off Kruger.

Malinsky, a principal at PA Associates, and Lipsky allegedly funneled hundreds of thousands of dollars in bribes to Kruger through a series of bank accounts set up by Manhattan gynecologist Michael Turano, who was Kruger’s long-time companion. [more]

Government officials are quickly washing their hands clean of indicted developer Aaron Malinsky, who was accused of bribing Brooklyn State Sen. Carl Kruger earlier this month in exchange for his support on two key projects. According to the Brooklyn Paper, Sens. Charles Schumer and Kirsten Gillibrand are each returning the $250 in campaign donations they received from him last August, and New Jersey Sen. Robert Menendez said he plans to donate $10,500 of the $33,000 he received to charity. But Brooklyn Borough President Marty Markowitz appears to be the odd man out, and he’s now coming under fire from government watchdogs for delaying his decision about some $21,550 in Malinsky-tied campaign contributions until after he sees the outcome of the bribery case. [more]

[Updated 8:41 p.m.] The founder of a successful Midtown-based real estate firm is accused of funneling nearly $500,000 in alleged bribes to Brooklyn State Senator Carl Kruger, who in turn took action to benefit that company’s development projects, a complaint unsealed today in Manhattan federal court says. Prosecutors allege Aaron Malinsky, a principal with PA Associates, made the payments to an entity called Olympian Strategic Development, and that money was used to improperly benefit Kruger (see complaint after the jump). Kruger allegedly received at least $1 million in bribes from Malinsky and others between 2006 and 2011, investigators said. In addition to Malinsky, authorities accused lobbyist Richard Lipsky, a principal with Richard Lipsky Associates, whose clients include Forest City Ratner, of involvement in the alleged bribery schemes. [more]

[Updated at 4:36 p.m.] Big-box retailer Target quietly partnered with two local developers to purchase a 7.9-acre United States Postal Service site in the Throgs Neck section of the Bronx, for $35.2 million, where they plan to build a 300,000-square-foot mall. The acquisition of the site at 815 Hutchinson River Parkway at Lafayette Avenue went into contract in November and closed Feb. 11, city property records published last Wednesday show. The owner was listed as Lafayette Nominee Owner LLC, with an address at Target’s corporate headquarters in Minneapolis, Minn. [more]

City Point, the multi-use complex that is slated to be built in
Downtown Brooklyn, will now be constructed in two phases. The
developers, a consortium of Acadia Realty Trust, MacFarlane Partners,
Rose Associates, P/A Associates and Washington Square Partners, will
start building the first phase at the east end of Fulton Mall, on the
site of the old Albee Square Mall. It will include affordable housing
and several big-box retailers such as Best Buy. The second phase will
include market-rate housing, office space and additional retail space.
The original plans for City Point, which have been changed due to the
credit crunch, called for a 1.5 million-square-foot development to be
completed by 2010. [more]