Using state employees to chauffeur wife On September 21, 2006, Hevesi admitted that he used Nicholas Acquafredda, a state employee and member of his security detail, to drive and aid his ailing wife Carol. Hevesi claimed that in 2003, the State Ethics Commission decided that he should pay back the entire cost of having a state employee chauffeur his wife unless such services were necessary for safety purposes. However, the State Ethics Commission had found Carol to be a "low-threat risk". On September 26, 2006, after his Republican challenger, Christopher Callaghan, asked the
Albany County District Attorney's office to investigate the matter, Hevesi said he would reimburse the state more than $82,000 for having a public employee chauffeur his wife. Callaghan first phoned in the complaint to the State Comptroller's own hotline. Hevesi claimed that drivers were needed to provide security to his wife, though a bipartisan ethics panel concluded that the State Police found no threat that would justify such an arrangement. The panel also concluded that Hevesi had no intention of repaying the state for the services rendered to his wife until Callaghan publicly filed a complaint. On October 12, 2006, Albany County District Attorney
David Soares' office acknowledged that it was officially investigating actions by Hevesi regarding the public employee hired to chauffeur his wife. On October 23, 2006, the "Ethics Commission concluded that Hevesi had 'knowingly' violated state law." On November 3, 2006, Hevesi was ordered by the office of state attorney General Elliot Spitzer to reimburse the state $90,000 — in addition to the $83,000 he has already paid – in compensation for what had been deemed an improper use of a state employee. Hevesi apologized in a TV ad, stating, "I'm asking you to weigh my mistake against my 35 years of public service, I'm human...I'm a good comptroller who did a dumb thing." On December 12, 2006, Hevesi agreed to a deal that called for the $90,000 in
escrow money to be turned over to the state and for him to pay an additional $33,605 within 10 days, making his payback total (with $83,000 already paid) $206,000. According to the Attorney General's report, Hevesi had actually hired four (not two) employees as his wife's "security detail", and said employees ran personal errands for the Hevesi family. On December 13, 2006, a poll conducted between December 5–11 by
Quinnipiac showed that 45% of people in New York believed that Hevesi should resign, while 43% believed that he had paid his debt to the state. On December 14, 2006, the Albany County District Attorney acknowledged that he had a strong enough case to indict Hevesi. That month, Hevesi pleaded guilty to a
felony for misusing state funds. In February 2007, he was sentenced by Judge Stephen Herrick in Albany County Court to a $5,000 fine and barred permanently from elected office. As part of the plea deal, he was given no jail time and received no probation. Prior to sentencing, Hevesi paid the state more than $200,000 in restitution. He expressed remorse for his actions and told the judge: "I'm culpable, I'm responsible and I apologize."
Payoffs to Raymond Harding for political favors On October 6, 2009,
Raymond Harding, chairman of the
Liberal Party of New York, pleaded guilty to charges that he accepted $800,000 from Hevesi's aides when Hevesi was comptroller of the state of New York.
Accepting gratuities As state comptroller, Hevesi faced a conflict of interest allegation in relation to a private capital fund named
Markstone Capital Partners. The
New York Sun reported, "The New York State comptroller, Alan Hevesi, encouraged California pension managers to invest in a private capital fund founded by a man whose wife has been a generous donor to his political campaigns." The
Los Angeles Times first reported the meeting. Hevesi met with his California counterpart, comptroller
Steve Westly, and Markstone Capital Group. They met on May 19, 2003, in order to "pitch" the
California Public Employees' Retirement System (CalPERS) to invest in Markstone, a fund that invested in Israeli companies. The
Sun reported that in June 2003, Hevesi had invested $200 million in Markstone. After being accused of "pay to play" practices involving the New York State Pension Fund during his tenure as Comptroller, Hevesi pleaded guilty to a corruption charge; on April 15, 2011, he was sentenced to one to four years in prison. He began his prison term as inmate 11-R-1334 at
Ulster Correctional Facility on April 17, 2011. Hevesi went before a parole board on November 14, 2012, and was released on parole on December 19, 2012. He served 20 months of a maximum four-year sentence. ==Publications==