SMH… What a disgrace. This guy who is currently a Democrat senator got caught up trying to pay is way onto the Republican mayoral ticket in NYC and he still won’t step down after being videotaped!
Via NYPost reports:
Disgraced state Sen. Malcolm Smith does not plan to step down even though feds say they caught him on tape scheming to pay off pols to get on the mayoral ticket.
“He’s not resigning,” his attorney, Gerald Shargel, told The Post after a two-hour meeting with his client in Midtown.
Smith said nothing as he left the office and got into a black SUV.
Smith was nailed thanks to shady Monsey real-estate investor Moses Stern, who wore a wire during meetings with the senator and City Council member Dan Halloran.
The two met through a rabbi, who vouched for Stern as a prominent fund-raiser.
Bronx GOP chairman Joseph Savino — who also was netted in the probe and was already on the feds’ radar for a 2010 corruption case in Yonkers that toppled its city council president — introduced Halloran to Stern, said a source.
Shady business… But the Stern character who set him up isn’t much better.
He is apparently owes over $100 milli to Citigroup, according to NYDailyNews reports:
The prosecution’s star witness against state Sen. Malcolm Smith and other political figures is a deadbeat who owes Citigroup $126 million and is about to have the water in his suburban mansion shut off.
Moses (Mark) Stern, 40, secretly pleaded guilty to federal charges and cooperated for months in a sweeping FBI corruption probe, sources familiar with the matter tell the Daily News.
In a 28-page criminal complaint, he’s listed as “CW,” a cooperating witness who presented himself to Smith and other political operatives as a big-spending, politically connected developer who could deliver campaign cash in exchange for political favors.
Stern’s partner — unbeknownst to the pols — was an undercover FBI agent named “Raj.” Both Raj and Stern were secretly recording the alleged backroom deals and shady bribes.
The shocking tapes, which caught pols like Smith and Queens City Councilman Dan Halloran openly scheming to further their political ambitions and line their own pockets, led to the stunning arrests on Tuesday of Smith, Halloran, Bronx Republican Chairman Joseph (Jay) Savino, Queens Republican Vice Chairman Vincent Tabone and two upstate politicians.
When Manhattan U.S. Attorney Preet Bharara announced the arrests Tuesday morning, one of the most brazen political corruption cases in recent memory, he never mentioned Stern’s name.
Also not mentioned was Stern’s tawdry background, starting with the tens of millions of dollars Citigroup says he owes for a collapsed scheme to buy up 11 shopping centers in Georgia, Alabama, North Carolina and Virginia.
In mid-2007, just before the real estate bubble burst, Stern and his associates formed a firm based in Monsey, Rockland County, called First Republic Group. The plan was to purchase shopping centers in Southern states.
They turned to Citigroup for funds, obtaining a mortgage for $111 million, then a second bridge loan for $15 million. Stern promised to personally vouch for the loans.
Soon after the deal closed in July 2007, Citigroup says, it discovered some of the mortgage money wasn’t going where it was supposed to.
Two years later, after the real estate market collapsed and payments went unmade, Citigroup sued, winning judgments against Stern totaling $126 million. The matter is on appeal.
On Wednesday Smith’s attorney, Gerald Shargel, questioned the use of a witness with a history of fraud, stating, “Yesterday the U.S. attorney made it seem the roof had been blown off the presumption of innocence. Now, 24 hours later, we’re seeing the case is based on a shaky foundation.”
As of this week, the case against Stern’s associate, Frenkel, remains unresolved, with the courts adjourning the his case on March 11.
On that same day Stern pleaded guilty to unspecified charges that have been sealed at the request of prosectors, according to sources familiar with the case.
Wow… Talk about the pot calling the kettle black. Buncha crooks in bed on this one.
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