NEW YORK – In 1990, Alain Kaloyeros was a 34-year-old assistant professor of physics at the State University of Albany committed to teaching.

"I love academics," he told the Times Union that December. "I don't love industry."

Over the next three decades, Kaloyeros became the face of the semiconductor industry in New York state – and, now, its scandal.

On Monday, Kaloyeros, the founding president and former CEO of SUNY Polytechnic Institute, will stand trial with three co-defendants in U.S. District Court in Manhattan charged with secretly rigging the bids of state contracts worth hundreds of millions of dollars to be awarded to two allegedly favored companies, COR Development in Syracuse and LPCiminelli in Buffalo.

Kaloyeros, 62, of Slingerlands, allegedly engaged in the bid-rigging through his control over projects funded by the Fort Schuyler Management Corp., a nonprofit development arm of SUNY Poly that receives substantial state funding. A charismatic figure Kaloyeros drove a Ferrari and was among the state's highest paid annual employees; at times he made more than $801,000 in state pay and another $507,413 from the Research Foundation of the State University of New York.

Unlike many political corruption cases, which are centered on allegations that an official took payoffs, Kaloyeros is not accused of enriching himself. Rather, federal prosecutors for U.S. Attorney Geoffrey Berman contend Kaloyeros, known as "Dr. K," took part in the alleged bid-rigging for self-preservation and to maintain his status with Gov. Andrew Cuomo.

Kaloyeros "understood that he was at risk of being fired and losing his highly paid position," the prosecutors said in pre-trial court filings. They said that's why in 2012, Kaloyeros sought out and hired lobbyist Todd Howe, a former aide to late Gov. Mario Cuomo and later his son when Andrew Cuomo served as the federal housing secretary.

"When the administration first came in, they viewed Dr. Kaloyeros skeptically," Assistant U.S. Attorney David Zhou said at a pre-trial hearing on June 6.

Kaloyeros hired Howe  "to serve as kind of a link with the governor's office," the prosecutor said.

Prosecutors say Howe counseled Kaloyeros that LPCiminelli and COR developers were "friends" who had contributed large amounts of money to the governor's re-election campaign. The companies had hired Howe and were paying him for his services.

In December 2013,  COR was awarded a contract with the Fort Schuyler Management Corp. to be the "preferred developer" for SUNY Poly projects around Syracuse, including $15 millon to build a film studio and another $90 million to build a manufacturing plant. In January 2014, LPCiminelli similarly became the "preferred developer" for SUNY Poly projects around Buffalo, which included a contract at Buffalo's Riverbend site that became worth $750 million and is now a SolarCity facility, the indictment said.

It was all part of money dubbed the "Buffalo Billion" to boost economic development upstate. Depending on who's talking, it either became a major success, albeit with a black eye, or a giant boondoggle.

Prosecutors allege Kaloyeros and Howe had Fort Schuyler secretly give advance copies of request-for-proposals (RFPs) to the executives in Buffalo and Syracuse so they could get information that no other companies could get. The RFPs became tailored to those companies' specifics and would have the appearance of being part of an open competition, they said.

"We anticipate proving at trial that part of the motivation for rigging the bid in favor of LPCiminelli and COR Development was because those companies were clients of Todd Howe -- as well as major contributors to the governor," Zhou said.

"We don't intend to put in anything – other than his salary -- as part of his motivation for keeping his job," he said, "and, actually, we'll have testimony that Dr. Kaloyeros was very motivated to become a president of a SUNY university rather than just the head of a college within the University of Albany. Other than his compensation, we're not planning to introduce any evidence of wealth."

Kaloyeros, COR Development executives Steve Aiello, 60, and Joseph Gerardi, 58, and LPCiminelli chairman and CEO Louis Ciminelli, 62,  are being tried before Judge Valerie Caproni in a trial expected to last up to five weeks.  All four defendants are charged with wire fraud and conspiracy to commit wire fraud. Gerardi is also charged with making false statements to federal officers.

It is the second of two corruption trials this year before Caproni involving ex-aides to Cuomo, who has not been accused of any wrongdoing.

About the trial

This is the second in a series of stories highlighting the issues surrounding next week's bid-rigging trial. See the previous story here

Defendants: SUNY Polytechnic Institute founder and CEO Alain Kaloyeros of Slingerlands, COR Development president Steven Aiello and COR Development general counsel Joseph Gerardi,  whose company is in Syracuse, and LPCiminelli CEO Louis Ciminelli, based in Buffalo.

Charges

Count 1: Conspiracy to Commit Wire Fraud

From 2013 to 2015, Kaloyeros, Aiello, Gerardi and Ciminelli allegedly used electronic email and telephonic communications to conspire to defraud the Fort Schuyler Management Corp. of its right to control its assets and exposed it to economic harm when they represented to Fort Schuyler that the bidding process in awarding hundreds of millions of dollars in state contracts was fair and open and competitive when they allegedly used their official positions to rig the bids for contracts so COR Development and LPCiminelli could be awarded them.

Count  2: Wire Fraud

From 2013 to 2015, Kaloyeros, Aiello and Gerardi allegedly engaged in wire fraud in connection with a scheme to rig the bid for SUNY Poly projects in the Syracuse area, which included $15 million to build a film studio and $90 million to build a manufacturing plant.

Count 3: Wire Fraud

From 2013 to 2015, Kaloyeros and Ciminelli allegedly engaged in wire fraud in connection with a scheme to rig the bid for SUNY Poly projects in the Buffalo area, including a contract for $750 million at what is now a SolarCity facility.

Count 4: False Statements to Federal Officers

On June 21, 2016, Gerardi allegedly made materially false, fictitious and fraudulent statements and representations to federal officers in denying involvement in tailoring the Syracuse RFP for the benefit of his company.

Venue: U.S. District Court in Manhattan

Prosecution lawyers: Assistant U.S. Attorneys Robert Boone, David Zhou and Matthew Podolsky.

Defense attorneys: Kaloyeros' lawyers include Michael Miller, Reid Weingarten and Michael Scavelli;  Aiello is represented by Stephen Coffey, Pamela Nichols and Scott Iseman; Gerardi by Milton Williams, Avni Patel and Jacob Gardner;  Ciminelli by Paul Shechtman, Jessica Masella and Tim Hoover.

For daily updates and coverage by Robert Gavin, see www.timesunion.com and tweets from the Times Union and @robertgavinTU

The first trial ended in the convictions of Joseph Percoco, the governor's former top aide, Aiello on a count of conspiracy to commit honest services wire fraud and the acquittal on all charges of Gerardi. Peter Galbraith Kelly, a former executive with Competitive Power Ventures, had a mistrial but later pleaded guilty.

The biggest difference between the first trial and this one is Howe, the star witness last winter, will not be called to testify. Prosecutors instead are relying evidence such as emails, a major part of the first trial, and testimony from Kevin Schuler, a former vice president at LPCiminelli who pleaded guilty in May to wire fraud and conspiracy to commit wire fraud.

Schuler and Michael Laipple, another former LPCiminelli, were both to be tried alongside Kaloyeros, Aiello, Gerardi and Ciminelli, but Schuler cut his deal and federal prosecutors dropped all charges against Laipple.

The government's decision to not call Howe carries pluses and minuses. Howe, a Troy native, worked closely with Kaloyeros and even had his own office and parking spot on the SUNY Poly campus. Howe could walk the jury through the alleged bid-rigging schemes and directly implicate each of the defendants.

Howe also is a convicted felon being jailed at the Metropolitan Correctional Center -- even the judge referred to him as a "scoundrel." Howe has been at MCC since being arrested in mid-trial last time when it was revealed that, as he was negotiating his deal with the federal government, he stiffed his credit card company the $600 cost of a night stay at the Waldorf Astoria Hotel.

Howe's absence from the witness list notwithstanding, Kaloyeros' attorney Michael Miller made it clear in pre-trial statements and filings that he plans to focus on the former lobbyist. Miller subpoenaed the MCC to try to obtain all information the facility had about "visits, statements, monitored telephone conversations, emails, and other communications" of Howe.

"Todd Howe is a serial fraudster who was never fully honest with his clients, including Dr. Kaloyeros, about who he was doing business with and whose interests he was representing at a particular moment," Miller wrote to the judge. "In short, Dr. Kaloyeros has a right to seek and offer evidence tending to prove that Mr. Howe's version of events— adopted by the Government and its witnesses—was at odds with the truth. The Subpoena is a good faith effort to gather that evidence."

Prosecutors opposed the effort. Caproni did not entirely agree with the government's argument but quashed the subpoena Thursday.

Stephen Coffey, the Albany-based attorney for Aiello, and Milton Williams, the lawyer for Gerardi, argued at the June 6 hearing that it was not uncommon for developers to give input on RFPs.

"What they did not know and how they were duped is they did not know that Howe was doing other things unbeknownst to them that were illegal," Williams told the judge.

Ciminelli is being represented by attorney Paul Shechtman.

The trial is not Kaloyeros' first fight. He survived attacks in the 1970s while in Beirut, where he attended the American University. He left Lebanon in 1980 and in 1988, he received his doctorate from the University of Illinois at Urbana-Champaign.

Kaloyeros chose the University at Albany because it offered a chance to teach, not just do research.

"This is the only place where I spent as much time interviewing about teaching as about research," he said at the time.

At the time, he said, "I love teaching."