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Man admits scheme to dodge fraud rap

Updated: Tuesday, 18 Dec 2012, 6:50 PM EST
Published : Tuesday, 18 Dec 2012, 6:50 PM EST

BUFFALO, N.Y. (AP) - A man has admitted making a failed bid to influence a congresswoman to get her prosecutor husband to drop a fraud case against him, authorities said Tuesday.

The U.S. Department of Justice said James Lagona, of Snyder, just northeast of Buffalo, met with a campaign staffer for Democratic Rep. Kathy Hochul just before the November election and offered to forgo what he claimed was a plan by Republicans to feature him in an ad or rally if U.S. Attorney William Hochul Jr. dismissed the case. He also offered to support her against opponent Chris Collins, authorities said.

After the campaign notified the FBI, another meeting between Lagona and the staffer was set up on Nov. 3. Lagona was recorded saying he was looking for a "quid pro quo" by refusing to campaign for the Republicans in exchange for the case being dropped and a promise no other charges would be brought against him, prosecutors said.

Lagona pleaded guilty Tuesday to obstruction of justice for trying the ploy while awaiting sentencing for a $6 million Ponzi scheme that defrauded 90 people who believed they were investing in real estate. He had been convicted in February 2011 of 27 felony mail fraud counts in that case.

Hochul lost the election to Collins, a former Erie County executive. Investigators said there was no evidence his campaign was involved with Lagona.

Lagona, 52, has been in custody since his arrest Nov. 15. He faces up to 10 years in federal prison and a $250,000 fine on the obstruction charge in addition to the possible 20 years for the mail fraud conviction. Sentencing is scheduled for March 20.

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