Suspect in Widening NY Pay-to-Play Scandal Pleads Guilty

$1 million in bribes in exchange for $250,000 in pension business

By Alice McQuillan
|  Thursday, Dec 3, 2009  |  Updated 2:30 PM EDT
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Suspect in Widening NY Pay-to-Play Scandal Pleads Guilty

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Cuomo identified only one of the four allegedly corrupt officials bribed by Broidy: David Loglisci.

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A California venture capitalist and campaign donor to former state comptroller Alan Hevesi admitting paying $1 million in bribes to fourofficials in his office, the New York state attorney general announced Thursday.

Luxury trips to Israel and Italy, money for relatives and a girlfriend and sham consulting fees to a family member were among the bribes paid by Elliott Broidy of Markstone Capital Partners in exchange for $250 million in pension fund business, AG Andrew Cuomo said today.

It's the fifth guilty plea in a widening pay-to-play scandal involving aides and friends of the former state comptroller.

Cuomo identified only one of the four allegedly corrupt officials bribed by Broidy: David Loglisci, Hevesi's top aide and chief investment officer who was charged in March with accepting millions of dollars in kickbacks from money manager firms. He has pleaded not guilty.

The attorney general said Broidy admitted directing $300,000 to "Chooch" -- a movie produced by Loglisci's brothers.

Cuomo said Broidy also detailed other bribes: $380,000 over more than two years in a "sham consulting agreement" with an official's family member; $90,000 to pay the rent, living expenses and hospital bills of an official's girfriend as well as $44,000 for her relative; $75,000 for first class airfare, fancy hotels, limos, security and a helicopter tour on five trips to Israel and one to Italy for a "very high-ranking" official and his relatives.

"You can see the depth of corruption in this case," said Cuomo.  "It's not about one person.  These are state officials who are in state service who are effectively being bribed so Mr. Broidy can access $250 million in state pension funds."

Briody pleaded guilty in Manhattan Supreme Court Thursday and agreed to forfeit $18 million.

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