NEW YORK—A New York City councilman has been stripped of his power to direct money for his district and a state senator has been removed from his leadership role after their arrests in a federal corruption case.
City Councilman Dan Halloran was stripped of his committee assignments and money-allocating authority Tuesday evening.
Earlier Tuesday, state Sen. Malcolm Smith was removed from his committee assignments and leadership post in the breakaway Independent Democratic Conference. It forms a majority coalition with Senate Republicans.
Smith is accused of trying to bribe city Republican leaders to let him run for the party’s mayoral nomination. Halloran is accused of lining up GOP chairmen to get the payoffs.
The politicians deny the charges.
Prosecutors say Halloran also took bribes to steer City Council money to a company.
A Democratic state lawmaker was arrested along with five other politicians Tuesday in an alleged plot to pay tens of thousands of dollars in bribes to GOP bosses to let him run for mayor of New York City as a Republican.
U.S. Attorney Preet Bharara called it an “unappetizing smorgasbord of graft and greed” that reveals a New York political culture defined by a single rule: “Show me the money.”
Smith, 56, who has served at times as the state Senate’s majority and minority leader since becoming a senator in March 2000, was arrested along with Halloran, 42, and four other political figures.
Smith “tried to bribe his way to a shot at Gracie Mansion,” Bharara said, referring to the official mayor’s residence. “Smith drew up the game plan and Councilman Halloran essentially quarterbacked that drive by finding party chairmen who were wide open to receiving bribes.”
A criminal complaint said that in meetings with a cooperating witness and an undercover FBI agent posing as a wealthy real estate developer, Smith agreed to bribe up to five leaders of Republican Party county committees in the five boroughs of New York City so he could run for mayor as a Republican, even though he was a registered Democrat.
Bharara said $80,000 in cash was promised or paid to Bronx County Republican Party Chairman Joseph Savino, 45, and Queens County Republican Party Vice Chairman Vincent Tabone, 46, who were both arrestedTuesday. The government said Halloran told the undercover agent that he wanted to get his “mortgage situation resolved” and to be named deputy police commissioner if Smith were elected mayor.
Smith said in a statement that he’ll be vindicated. His lawyer, Gerald L. Shargel, said his client denies wrongdoing.
“Malcolm Smith is a dedicated public servant who has served both the state of New York and his constituents in an exemplary fashion,” Shargel said. “He steadfastly denies the allegations that are contained in the complaint.”
Outside federal court in White Plains, N.Y., Shargel said the allegations in the criminal complaint “do not tell the full story.”
Halloran’s attorney, Dennis Ring, said: “The councilman denies all allegations and looks forward to clearing his name and returning to court.”
Representatives for Savino and Tabone did not immediately respond to requests for comment.