N.Y. Mayoral Hopeful Malcolm Smith Ensnared in Complex Bribe Plot

Republicans, Upstate Pols Linked to Widespread Corruption

Pay To Play: Malcolm Smith, a state Senator who is considering a run for New York mayor, was charged with bribery in a wide-ranging corruption probe.
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Pay To Play: Malcolm Smith, a state Senator who is considering a run for New York mayor, was charged with bribery in a wide-ranging corruption probe.

By Reuters

Published April 02, 2013.
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The scandal, uncovered by FBI agents working with an undercover investigator and a cooperating witness, allegedly involved a series of secret meetings in restaurants, hotels and Smith’s Senate office in Albany, New York in which bribes were discussed or money exchanged.

Court documents released on Tuesday showed the people alternating between brazen and cautious behavior as they solicited and received bribes.

At a September meeting at a Manhattan restaurant at which he received $7,500 in cash, City Councilman Halloran told a confidential witness working with the FBI, “Money is what greases the wheels – good, bad or indifferent.”

At other times they were warier. During a February meeting with an undercover FBI agent he believed to be a real estate developer, Queens Republican official Tabone frisked the agent to check for a recording device. He was unsuccessful and the conversation was recorded anyway.

Prosecutors said that two of the politicians charged in the scheme - Tabone and Savino - received a total of $40,000 in bribes for promising to support Smith. Halloran, the Queens Councilman, was said to have gotten $20,500 for setting up a meeting with people Smith believed were supporters but were in fact the cooperating witness and an undercover FBI agent.

Two of the other politicians arrested on Tuesday, Jasmin and Desmaret, were charged for their role in a related bribery incident involving a proposed real estate project in Spring Valley, a suburban town located about 35 miles (56 km) north of New York City.

MAYORAL RACE

Smith’s motivation was winning a spot on the ballot as a Republican mayoral contender, since that primary is seen as considerably less competitive than the Democratic contest in liberal New York.

In 2001, billionaire Michael Bloomberg - a lifelong Democrat - won the right to run for mayor as a Republican, though he later abandoned his party affiliation altogether. As Bloomberg prepares to leave City Hall after three terms in office, a handful of Democrats, including Smith, have sought Republican support for their candidacies.

The most prominent contenders for mayor include City Council Speaker Christine Quinn, Public Advocate Bill de Blasio, former Comptroller Bill Thompson, current Comptroller John Liu and former Metropolitan Transportation Authority Chairman Joseph Lhota.

To be listed on the ballot of the other political party, a New York politician must win the approval of the party chairman in at least three of the city’s five counties.

In one January meeting, Smith, who has represented his eastern Queens district since 2000, and the unnamed cooperating witness discussed the cost of the bribes, prosecutors said.

“It’s worth it as long as they’re going to do it,” Smith said, according to court papers released on Tuesday. “He can’t tell you he’s going to do it and then doesn’t do it … You know, don’t waste a pretty penny.”

Halloran helped him in hopes of securing a position as a deputy police commissioner or deputy mayor in a potential Smith administration, U.S. Attorney Bharara, said.

The chairman of the state Republican party, Ed Cox, called the arrests “deeply concerning.”

“The integrity of the electoral process for the voters of New York City must be preserved,” Cox said in a statement.


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