Mayor Bloomberg's Stolen Money in Deal

The Queens political operative, John Haggerty, convicted of stealing from Mayor Michael Bloomberg has agreed to return $750,000 to the mayor as a judge prepares to sentence him on Monday.

As part of a deal with prosecutors, the state Independence Party, the third-largest political party in New York, has also agreed to return $150,000 in funds that a jury concluded were stolen from Mr. Bloomberg in the lead-up to his 2009 re-election. The party was not charged with a crime in the case.

The agreement with prosecutors in Manhattan District Attorney Cy Vance Jr.'s office comes as state district Judge Ronald Zweibel plans Monday to sentence Mr. Haggerty on two felony convictions, grand larceny in the second degree and money laundering in the second degree.

Mr. Haggerty, 42 years old, faces up to 15 years in prison. Prosecutors are recommending a sentence of between four and 12 years, Mr. Haggerty's attorney, Dennis Vacco, confirmed Sunday.

The deal with prosecutors on the return of $900,000 of Mr. Bloomberg's money is part of a civil proceeding and is technically separate from the criminal case. The two agreements, one with Mr. Haggerty and the other with the Independence Party, were signed Friday by Supreme Court Judge Martin Shulman, according to papers reviewed by The Wall Street Journal.

According to the deal, Mr. Haggerty and his firm, Special Election Operations LLC, agreed to pay the district attorney's office $750,000 from the sale of Mr. Haggerty's home. Mr. Haggerty has six months to sell the house, which is valued at roughly $1.6 million, and upon closing, the money is to be placed in an escrow account by the district attorney's office. The money is to be held in escrow until an appellate court upholds the convictions in the case. Prosecutors would then send the money to the mayor. Mr. Haggerty would be entitled to the money back if an appellate court overturned the decision and he was ultimately acquitted.

As for the Independence Party, which is listed in court papers as a non-criminal defendant, officials were required to place $200,000 in escrow in February as part of a temporary restraining order. The party successfully negotiated a deal with prosecutors in which $150,000 would be returned to the mayor and $50,000 would be used to pay the party's attorneys.

Mr. Bloomberg, one of the nation's most generous philanthropists, is widely expected to donate the money to charity.

Update
He was sentenced to 16 months to 4 years but might only have to serve 6 months jail time.









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