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FBI Investigating Non-TerreStar Activities
The Jan. 23 announcement that Jared "Jerry" Abbruzzese had resigned as chairman of the board for TerreStar Networks Inc. and chairman of TerreStar Global Ltd. coincides with reports that the FBI is investigating his relationship with a New York state legislator.
Robert Brumley, president and CEO of TerreStar parent company Motient Corp., said the timing and announcement of Abbruzzese's resignation "has nothing to do" with any legal situations. Abbruzzese had served as a director of TerreStar since 2002.
But an expert familiar with the situation said while the issues under investigation are not related directly either to TerreStar or Motient, the FBI matter played a role in Abbruzzese's resignation. "That was part of it; he comes with some baggage," the unidentified source said.
Government Investigations, Business Complaints
In December, New York State Senate majority leader Joseph Bruno acknowledged being investigated by the FBI for what he described as his "outside business interests." The FBI declined to confirm or deny if there was an ongoing investigation, but published reports out of Albany and New York have detailed allegations concerning the 77-year-old Republican's connection to Evident Technologies, a company to which Bruno reportedly steered $500,000 in state grants. Abbruzzese, who resides in Albany, is a cofounder and former director of Evident. Abbruzzese and Wayne Barr, a former co- chairman who currently sits on the board of Evident, are described as personal friends of Bruno who share the legislator's avid interest in horse racing. Barr, a business partner with Abbruzzese in other ventures, had served as an appointee of Bruno's to the New York Racing Association's board of trustees until last year.
In December, Abbruzzese left Empire Racing -- a New York-based thoroughbred racing consortium which he helped form. In a statement, Empire said Abbruzzese "decided to leave the Empire Racing board, citing a distraction created by inquiries into activities unrelated to the company." Abbruzzese had led efforts to raise $3 million to fund the organization, which is competing to run state-owned racetracks at Aqueduct, Belmont and Saratoga.
Abbruzzese also is...