NEW YORK CITY – Former New York City Council Member Daniel Halloran was sentenced Wednesday in federal court to 10 years in prison.
Halloran arranged a bribery of New York City Republican leaders to allow New York State Senator Malcolm Smith, a Democrat, to run as a Republican candidate for New York City Mayor in 2013, according to authorities.
Halloran also accepted a $15,000 cash bribe in exchange for designating up to $80,000 in New York City funds to a non-profit entity that would allow the money to be embezzled through a no-show job, officials said.
U.S. District Judge Kenneth M. Karas, who sentenced Halloran, a Queens Republican, presided over the two-month trial that resulted in Halloran’s conviction last year.
“This was a very serious crime. When a public official gets into cars and takes wads of cash or promises public money in return for cash to the politician, it is so troubling,” Judge Karas said. It causes us all to be cynical about our leaders. It causes us to doubt that our leaders are looking after us. And it’s a very serious matter.”
(The 2014 video of Daniel Halloran’s conviction.)
According to the evidence admitted at trial, including statement, this are the facts and circumstances surrounding this case:
Halloran was elected to the New York City Council in 2009, representing a district in Queens, New York.
While a member of the city council, Halloran participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action.
First, Halloran arranged for $110,000 in cash bribes to be paid to leaders of the Republican Party so that they would allow Smith to run for mayor on the Republican Party’s ballot line.
Second, Halloran accepted an up-front kickback of $15,000 for designating up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes.
The Bribery of Republican Party Leaders
From November 2012 until his arrest in April 2013, Halloran agreed with Smith along with an undercover FBI agent posing as a wealthy real estate developer, and a cooperating witness to bribe New York City Republican Party leaders in exchange for their authorization of Smith to appear as a Republican candidate for New York City Mayor in 2013, even though Smith is a registered Democrat.
Halloran then arranged for the undercover FBI agent and the cooperating witness to meet Vincent Tabone, the Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders.
Halloran also negotiated the size of bribes that the party leaders required in order to authorize Smith to run on the Republican ballot line.
During a meeting with the undercover agent, Tabone accepted a $25,000 cash bribe and agreed to accept another $25,000 after his committee authorized Smith to compete in the Republican primary.
Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize Smith to compete for the Republican ballot line.
In return for his efforts, Halloran accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Bribery for City Council Discretionary Funding
From August 2012 until his arrest in April 2013, Halloran accepted an up-front kickback of $15,000 cash from the undercover agent and the cooperating witness in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to a consulting company he believed was controlled by the undercover agent and the cooperating witness, officials said.
At a meeting on September 7, 2012, at which Halloran and the undercover agent discussed Halloran’s need to raise money for his congressional campaign, Halloran agreed to hire someone of the cooperating witness’ choosing for a congressional staff or some equivalent position, and to help him raise money for his campaign.
During the discussion, Halloran said: “That’s politics, that’s politics, it’s all about how much. Not whether or will, it’s about how much, and that’s our politicians in New York, they’re all like that…And they get like that because of the drive that the money does for everything else. You can’t do anything without the f***ing money.”
During the meeting, the cooperating witness paid Halloran $7,500.
And near the end of the meeting, Halloran remarked: “Money is what greases the wheels – good bad, or indifferent.”
In furtherance of this scheme, Halloran wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company.
Despite suggesting in these letters that work would be done by the Company to support the allotment of taxpayer money, Halloran agreed with the undercover agent and the cooperating witness that the Company would provide no services.
Halloran’s co-conspirators, Smith and Tabone, were convicted for their roles in the bribery conspiracy in January and are currently scheduled to be sentenced by Judge Karas on July 1.