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New York Mayor Michael Bloomberg, Nov. 5, 2010. REUTERS Tyrone Siu

Up to 4 years in prison for operative who stole from Bloomberg

12/19/2011 COMMENTS (0)

NEW YORK, Dec 19 (Reuters) - John Haggerty, the Republican operative convicted of stealing nearly $1 million from New York City Mayor Michael Bloomberg during his 2009 reelection campaign was sentenced to between one-and-a-third and four years in prison Monday in state Supreme Court in Manhattan.

A jury found Haggerty guilty of second-degree larceny and money laundering following a high-profile four-week trial in October, but acquitted him of a more serious larceny charge.

In a brief statement to the court before his sentencing, Haggerty said he "deeply" regretted his actions.

Prosecutors from the Manhattan District Attorney's Office had accused Haggerty of soliciting $1.1 million in funds from the billionaire mayor to pay for an extensive poll-watching operation that never occurred. Instead, they claimed, Haggerty used the bulk of the money he received to buy his childhood home in Queens.

Prosecutors recommended a sentence of four to 12 years in prison, but Haggerty's defense lawyers, Raymond Castello and Dennis Vacco, spoke passionately for more than an hour, imploring Justice Ronald Zweibel to impose probation and community service for what they said was an "isolated" incident. They also submitted more than 40 letters from friends in support of Haggerty's character.

Haggerty has already agreed to sell the home in Queens and return the stolen funds, lawyers on both sides said Monday.

The sentencing arguments were unusually lengthy, with Vacco telling the judge about Haggerty's estranged relationship with his father and Castello offering a discourse on criminal sentencing. At one point, the normally soft-spoken Assistant District Attorney Eric Seidel took offense when Castello interrupted him and shouted at Castello to let him finish.

BLOOMBERG QUESTIONED ON STAND

The trial provided a rare sight, as Bloomberg himself -- along with a parade of his most trusted aides, most of whom have held powerful positions in City Hall -- took the stand to testify against Haggerty.

Under aggressive questioning from Haggerty's lawyers, Bloomberg maintained his composure but was forced to discuss the spending on his self-financed $105-million campaign, a topic he generally prefers to avoid.

Haggerty's lawyers sought to paint their client as a scapegoat for a win-at-all-costs mayor who did not care whether the poll-watching operation took place, as long as he stayed in power.

They also suggested that the mayor's decision to funnel the money through the Independence Party, rather than paying Haggerty directly, was an attempt to hide its role in paying for poll watching, which Democrats have criticized in the past as a form of voter suppression.

By voluntarily giving the money to the party, the lawyers argued, the mayor had effectively given up control of it, and therefore could not be a victim of theft.

Prosecutors asserted that the mayor and his aides would never have signed off on the expenditure without assurances from Haggerty that it would fund an Election Day operation. They pointed to a budget Haggerty proposed that included 1,355 poll watchers, a document that Seidel labeled "pure fiction" during the trial.

LAWYERS PLAN APPEAL OF CONVICTION

Several jurors said after the trial that the money trail prosecutors established -- including funds from the Independence Party to Haggerty that were then wired as payments on the house on the same day -- was compelling evidence of Haggerty's guilt. But they said the fact that Haggerty only ended up with $750,000 of the mayor's money prompted them to return a not-guilty verdict on the top charge, which requires a theft of at least $1 million.

The Independence Party has also agreed to forfeit $150,000 of the funds, Seidel said Monday, though it will not have to return approximately $200,000 it had already spent at the time of Haggerty's indictment. Zweibel criticized prosecutors for failing to secure the entire amount, but Seidel said that arrangement was the best possible deal.

Haggerty was taken into custody after the sentencing, but his planned to appeal his conviction Monday in the Appellate Division, First Department. They said they would ask for bail pending the appeal.

The case is People v. Haggerty, New York State Supreme Court, New York County, No. 2598/2010.

For the prosecution: Assistant District Attorneys Eric Seidel, Vanessa Richards and Brian Weinberg.

For Haggerty: Raymond Castello of Shaub, Ahmuty, Citrin, & Spratt and Dennis Vacco of Lippes, Mathias, Wexler, Friedman.

(Reporting by Joseph Ax)

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