In a highly publicized case, Donovan and six other defendants were indicted by a
Bronx County, New York, grand jury for larceny and fraud in connection with a project to construct a
new line extension for the
New York City Subway, through a scheme involving a
Genovese crime family associate and a minority-owned subcontractor. Schiavone Construction was required by its contract with the
NYCTA to subcontract part of the work to a minority-owned enterprise. The essence of the charge was that the minority-owned firm (Jo-Pel Contracting and Trucking Corp) leased equipment from Schiavone and therefore was not truly independent of Schiavone. On May 25, 1987, Donovan (and all of the other defendants) were acquitted with a number of jurors openly applauding the verdict, after which Donovan was famously quoted as asking, "Which office do I go to to get my reputation back?" Reagan supported Donovan throughout the trial, and upon the latter's acquittal, affirmed how he had "always known Ray Donovan as a man of integrity" and "never lost confidence in him." A second criminal investigation saw Donovan investigated by a federal
special prosecutor. This was over allegations that he had ties to individuals in organized crime and claims that he was present when a union leader received an illegal payoff. No charges were pressed and the investigation was brought to an end. ==Later life==