NEW YORK, NEW YORK - AUGUST 26: State Senator Brian Benjamin pumps his fist as he celebrates during a press conference announcing him as Lt. Governor on August 26, 2021 in New York City. Senator Benjamin, who placed fourth in the Democratic primary for city comptroller earlier this year, will replace Hochul who was sworn in as Governor this week after the resignation of former Gov. Andrew Cuomo. (Photo by Michael M. Santiago/Getty Images))

Prosecutors accusing former New York Lieutenant Governor Brian Benjamin of embezzling a $50,000 state grant have revived corruption charges against him in a federal appeals court on Friday. Benjamin reportedly funneled the state grant to a now-deceased developer in exchange for campaign contributions.

The 2nd US Circuit Court of Appeals in Manhattan said prosecutors "sufficiently alleged an explicit quid pro quo" between Benjamin and Gerald Migdol to support bribery, honest services wire fraud, and conspiracy charges in the indictment, reported Reuters

The unanimous decision issued by a three-judge panel reversed a December 2022 ruling by US District Judge Paul Oetken in Manhattan and returned the case to him.

Benjamin faces two charges alleging he falsified records that had been put on hold pending the US Department of Justice appeal.

The prosecution is confronted with challenges after Midgol, who had pleaded guilty to bribery and fraud charges, died on Feb. 9. Midgol was a key government witness for prosecutors.

Additionally, the US Supreme Court restricted the ability of prosecutors to pursue a handful of corruption cases last May.

Benjamin was once a state senator in Manhattan's Harlem neighborhood, where Migdol had been a real estate developer.

Prosecutors did acknowledge last month that Migdol's death would affect a trial for Benjamin but that they had no plans "to abandon any allegation in the indictment." 

The Defense

In a recent statement, Barry Burke, a lawyer for Benjamin, reiterated: "Mr. Benjamin did nothing other than engage in routine fundraising and support a non-profit providing needed resources to Harlem public schools. We remain confident that Mr. Benjamin will be vindicated." 

Prosecutors believe Benjamin directed the $50,000 grant in June 2019 in the guise of a charity Midgol ran in Harlem. In exchange, he would receive contributions for his 2020 re-election campaign and an unsuccessful 2021 bid to become New York City comptroller.

Oetken revealed the government had simply "implied" an agreement between the men, and the grant was not proof of one. 

But, in Friday's decision, Circuit Judge Steven Menashi called the absence of an express agreement "immaterial because the existence of the agreement, and the clarity of its terms to Migdol and Benjamin, could be inferred from their words and actions." 

While campaign contributions raise free speech issues under the US Constitution, Menashi said, "It is the corrupt agreement that transforms the exchange from a First Amendment protected campaign contribution into an unprotected crime." 

Benjamin ultimately resigned from the position of lieutenant governor in April 2022-- as soon as charges had been announced, and eight months after Governor Kathy Hochul tapped him for the state's No. 2 job.