Malcolm Smith has been arrested in a wide-sweeping bribery scheme aimed to take control of New York City government following the upcoming departure of Mayor Michael Bloomberg. Smith, D-Jamaica QNS, is a seven-term legislative veteran in Albany and a one-time majority and minority leader in the New York state government.
The case stated that Malcolm Smith allegedly enlisted the help of an ally across the aisle New York City Councilman Dan Halloran, R-Flushing QNS, to arrange payoffs of various city and even some state leaders to get Smith on the Republican mayoral ballot. In exchange, Halloran wanted a high profile post in City Hall.
New York State law reads that in order for a candidate to run on a different party from which he is registered, he or she must receive approval from a majority of the county committee of the party the candidate is seeking. Unlike other major cities like Philadelphia which is coextensive with the former Philadelphia County, five counties make up New York City: Richmond County (Staten Island), New York County (Manhattan), Queens County, Bronx County and Kings County (Brooklyn).
The bribery plan centered around the idea that Malcolm Smith's popularity would land him on Park Row as a Republican, despite being a lifetime Democrat. Smith was one of the leaders of the Independent Democratic Caucus in Albany, a group of New York lawmakers who aim to find common ground among their Republican colleagues. Malcolm Smith was stripped of his leadership role in the caucus by State Sen. Jeff Klein, D-Pelham Bay BX, following the charges filed against him.
Malcolm Smith's actions were seen as his attempt to "bribe his way [to] Gracie Mansion," as U.S. Attorney Preet Bharara put it. A lifetime Democrat, Malcolm Smith, could not realistically have a chance to win an already contested Republican mayoral primary in such politically polarized city as New York without some high profile help. And despite his political weight, Smith needed more than Dan Halloran's high-profile assistance in allegedly steering money to the right channels. There would have to be somewhere to send that money. As Bharara reported, Halloran was heard on a small piece of seemingly endless FBI wiretaps as saying just that: "You can't do anything without the [expletive] money," saying cash is what "greases the wheels" of politics.
In that regard, Vincent Tabone, vice chair of the Queens County Republican Party and Joseph Savino, chairman of the Republican Party in The Bronx were also charged in the corruption and bribery case. The duo allegedly accepted bribes of up to $80,000 arranged by Halloran in exchange for assistance in getting Malcolm Smith on the party's ballot. Bharara dubbed the operation "Malcolm in the Middle" in reference to the former Fox sitcom of the same name.
Ed Cox, Chairman of the New York Republican Party, called the charges and arrests "deeply concerning."
In a twist, Tabone is employed by billionaire John Catsimatidis, who is already engaged in campaigning for the Republican nomination for New York City Mayor. Catsimatidis allegedly suspended Tabone following the corruption charges. Additionally, Savino had previously endorsed another popular Republican mayoral hopeful, Joe Lhota, the former head of the MTA, New York City's mass transit authority.
Malcolm Smith's corruption case does not encompass only New York City. High ranking officials in a Big Apple suburb have also been named in the 28-page federal complaint. Mayor Noramie Jasmin and Deputy Mayor Joseph Desmaret, two Democrats from Spring Valley, N.Y., about 10 miles west of the Tappan-Zee Bridge, were charged with mail fraud after reports of their alleged involvement in the Malcolm Smith corruption case surfaced.
They allegedly facilitated sale of public lands to a private real estate company that was to funnel much of the proceeds to Malcolm Smith for his use in town. However, the head of the so-called real estate company turned out to be run by a federal informant, and the Spring Valley officials were caught in the act. Malcolm Smith also allegedly offered to direct $500,000 in state funding for roadwork in Rockland County.
Halloran and Smith were released on personal recognizance bonds. Smith may not leave the confines of the Empire State, and Halloran is confined to New York City and Long Island. Both men were forced to surrender their passports as well.
Bharara lamented that the Malcolm Smith corruption case "demonstrate ... a show-me-the-money culture" that pervades "every level of New York government." Malcolm Smith also allegedly participated in arranging gifts for "openly crooked" former New York State Senator Pedro Espada, Jr., D-Tremont BX, to persuade Espada to vote Smith's way.
Christine Quinn, a Democrat and current leader of New York City Council, is said to be the favorite among those in her party to succeed somewhat-ally Mayor Bloomberg, who originally was elected on the Republican ticket and most recently as an Independent after leaving the GOP in 2007. The New York Daily News said the allegations against those involved in the Malcolm Smith corruption case "cast a shadow" on Quinn and her candidacy.
Malcolm Smith's bribery case will likely have long-lasting effects on the city's and state's political landscape, to which Bharara somewhat alluded.
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