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Political Operative Indicted for Stealing $1.1 Million From Mayor's Campaign

By DNAinfo Staff on June 14, 2010 12:48pm  | Updated on June 14, 2010 1:23pm

John Haggerty leaving a Manhattan courtroom Monday.
John Haggerty leaving a Manhattan courtroom Monday.
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DNAinfo/Shayna Jacobs

By Shayna Jacobs

DNAinfo Reporter/Producer

MANHATTAN — A Republican operative who worked on Mayor Michael Bloomberg's bid for a third term was indicted for allegedly stealing more than $1 million dollars in campaign funds, the DA said Monday.

John Haggerty Jr., 41, was charged with grand larceny, money laundering and falsifying business records as part of a scheme that saw him paid $1.1 million by the billionaire mayor in return for "ballot security" and "poll watching" services, according to court papers.

Prosecutors said Haggerty provided no such services to the mayor throughout the re-election bid. Instead, he spent part of the money on a new home in Forrest Hills, Queens, according to court papers.

Mayor Michael Bloomberg file photo.
Mayor Michael Bloomberg file photo.
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Mayor's Office/Kristen Artz

District Attorney Cy Vance Jr., said Haggerty's lies fooled the mayor's aides, whom Vance described as "a group of highly educated, sophisticated people."

Prosecutors contend that Haggerty volunteered on the mayor's campaign last summer, and falsely told Bloomberg and his advisors that he would provide services through the state's Independence Party.

The mayor approved a $1.1 million payment, but never got the services promised by Haggerty, prosecutors said.

The money was laundered through a shell company that was created a month after election day, according to the charges.

The district attorney also filed a civil action against Haggerty on Monday, seeking assets equalling about $1.1 million, including the home in Queens.

Vance said Bloomberg and his staff had no criminal involvement. The investigation into Haggerty continues.

"The mayor cooperated directly and through his staff completely," Vance said.

Haggerty was arraigned on the charges Monday afternoon and released on his own recognizance.

Haggerty's attorney, Raymond Castello, said the mayor never asked for the money back and was not victimized by his former aide.

He claimed Haggerty did use the money for election day assignments, but did not elaborate.

District Attorney Cy Vance Jr. addresses a press conference Monday.
District Attorney Cy Vance Jr. addresses a press conference Monday.
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DNAinfo/Shayna Jacobs

"As far as I know [Bloomberg] has not expressed any dissatisfaction," Castello told reporters. "As you all know he won the election."

"The indictment says [the mayor] is a victim — I don't think he's acted like it so far," the lawyer added.

Mayor Bloomberg declined to comment on the indictment Monday.

"The district attorney has asked us not to comment on the case and we'll respect the district attorney's wishes," he told reporters at a press conference.