Cuomo Holds $3 Million of Undisclosed Options in Nuclear Startup

Andrew Cuomo Photo by Adam Gray /Photographer: Adam Gray/Bloomber

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(Bloomberg) — Former New York Governor  Andrew Cuomo has $3 million in options to a shoestring nuclear startup that he failed to disclose to an ethics board as he mounts a comeback bid to be the mayor of New York City.

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The options are with Nano Nuclear Energy Inc., which aspires to build portable nuclear reactors that could be deployed to data centers and disaster zones, according to securities filings. The company’s founder Jiang “Jay” Yu met Cuomo at a networking function last year. 

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Within weeks of their meeting, according to federal filings and an interview with Yu, the two men were in business. Cuomo joined Nano’s executive advisory board in March, just before the firm, still without revenue and not owning any patents, launched its initial public offering.

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The company contracted with a consulting firm, Innovation Strategies LLC, that Cuomo founded after he left office, according to Securities and Exchange Commission filings. Cuomo received 125,000 in stock options — a stake that, if exercised, would be worth roughly $3 million at Nano’s current market price. 

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Cuomo’s net worth is at least $3.4 million, according to disclosures he filed with New York City’s Conflicts of Interest Board.

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Cuomo’s spokesman, Rich Azzopardi, confirmed that the former governor holds the options through his consulting firm, and that the options haven’t yet been exercised. But the options are not listed on Cuomo’s required financial disclosures. 

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“While the disclosures were made in good faith and based on our reading of the law, we will work with the Conflict of Interest Board and make any amendment deemed appropriate,” Azzopardi said. “If elected, Governor Cuomo wouldn’t have any other position other than to serve as mayor of New York City, and would work with the COIB to navigate any perceived issues that may arise, and disclose the remedies.”

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A spokesperson for the Conflicts of Interest Board declined to comment citing a policy against commenting on specific individuals’ filings.

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Cuomo, who was elected to three terms as governor, stepped down in 2021 under a cloud of sexual harassment allegations that he has denied, announced in March that he was running for mayor.

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In an interview, Yu praised Cuomo, who famously shut down New York’s Indian Point nuclear power station — as an active member of the company’s advisory board, which also includes retired Army General Wesley Clark. 

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“He took a leap of faith on us,” Yu said, and as a consultant offered “connections” to officials in New York State that could benefit the company in the future. 

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Stock market analysts and investors are more skeptical. Hunterbrook Media published a critical report of Nano last July, citing its leaders’ dearth of industry experience and technology, while the outlet’s affiliated investment arm Hunterbrook Capital LP shorted the stock. 

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Earlier: Cuomo Advised Crypto Exchange OKX on Its Response to US Probe

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Cuomo has refused to disclose the names of his consulting clients, while pledging to avoid conflicts of interest if elected. Bloomberg has reported that he advised a Seychelles-headquartered cryptocurrency exchange, OKX, as that firm navigated an investigation by federal prosecutors in Manhattan. The company ultimately paid more than $500 million to settle the probe.

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