ALBANY - Former Controller Alan Hevesi took $75,000 in luxury trips from an investment banker who admitted paying nearly $1 million in bribes for state pension fund business, sources said.
It's the first time Hevesi was directly linked to the massive pay-to-play scandal that engulfed his office.
Hevesi and former "Mod Squad" actress Peggy Lipton benefited from the "bribes" investor Elliott Broidy made to four top pension fund officials, the sources said yesterday.
In exchange, Broidy's company, Los Angeles-based Markstone Capital Partners, got $250 million in pension fund commitments and collected more than $18 million in management fees.
Attorney General Andrew Cuomo said Broidy covered $75,000 in expenses for "luxury travel" five times to Israel and once to Italy for a "very senior official" in the controller's office.
Cuomo said the official and his family, whom he would not name, received first-class airline seating, hotel suites, a car and driver and even helicopter tours.
Sources told the Daily News the official was Hevesi, who resigned and pleaded guilty to an unrelated felony in 2006.
Cuomo said Broidy hid the payments by submitting false invoices. Broidy, his wife and their associates gave tens of thousands of dollars to Hevesi's campaigns.
Hevesi lawyer Bradley Simon, who has routinely maintained the former controller had done no wrong, had no comment on the latest development.
Two months before resigning in 2006, The News Editorial Board asked Hevesi about his first-class travel to Israel.
He defended it by saying he ran a massive pension system second only to Warren Buffett in investing in Israel.
"It was a great investment opportunity, plus I am a Zionist," he said.
Asked about rules against luxury travel, he said, "I don't know if there are any rules."
Broidy pleaded guilty yesterday in Manhattan Supreme Court to a felony charge of rewarding official misconduct.
Cuomo said Broidy paid $90,000 in rent, expenses and hospital bills to the girlfriend of a senior controller's office official.
He also gave $44,000 to the girlfriend's family, Cuomo said. While he would not name the official, The News has reported it is Jack Chartier, who had a close relationship with Lipton.
Lipton and Chartier could not be reached for comment.
Cuomo said Broidy also gave $300,000 to help finance the movie "Chooch," produced by the brother of Hevesi's chief investment officer David Loglisci.
Another official was paid nearly $400,000 through a sham consulting agreement to a relative of a state official.
A source said the consultant was lobbyist Frank Sanzillo, brother of Hevesi's top assistant Thomas Sanzillo.
Thomas Sanzillo had no comment. His brother could not be reached.
"This is an old-fashioned payoff," Cuomo said.
In some cases, Hevesi's office solicited payments from Broidy while in others he offered them up, said Deputy Attorney General Ellen Biben.
Broidy, who faces up to four years in prison, was released pending sentencing. He has resigned from Markstone.
"Mr. Broidy regrets the actions that brought about this course of events, but is pleased to have resolved this matter ... and will be cooperating in the ongoing investigation," Broidy lawyer Christopher Clark said.
Broidy is the fifth guilty plea in the pension scandal probe.
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