Ex-comptroller Hevesi admits guilt in pension scandal

"Guilty."

With that one word, disgraced former State Comptroller Alan Hevesi admitted Thursday that for four years he sold access to the state pension system and in exchange took $1 million in illegal payments for himself, family and friends.

Hevesi, 70, appearing in State Supreme Court in Manhattan, ended weeks of speculation about a deal with Attorney General Andrew Cuomo by pleading guilty to a one-count felony criminal information charging him with accepting a reward for official misconduct.

He is cooperating with the continuing investigation of the "pay to play" pension kickback system, Cuomo said in a statement. That probe has already resulted in the conviction of six others, including former Liberal Party chief Ray Harding.

"Alan Hevesi presided over a culture of corruption and violated his oath as a public servant," Cuomo said.

Cuomo's probe is also focusing on the actions of Democratic fundraiser Steve Rattner, who has served as "car czar" for the Obama administration, officials said. Rattner hasn't been charged with wrongdoing.

After pleading guilty, Hevesi told Judge Lewis Bart Stone that from 2003 to 2006 he carried out a series of corrupt acts, including the steering of $250 million in state retirement funds to a friend's investment firm in exchange for illegal payments.

Hevesi said the state funds were funneled to Markstone Capital Partners, an investment firm run by close friend Eliott Broidy. In return for favoring Markstone, Hevesi told Stone that Broidy "paid benefits amounting to $1 million."

The various payments by Broidy included $75,000 in travel arrangements for Hevesi, his adult children and some of his state employees, the former comptroller admitted in court. In addition, he said Broidy arranged $500,000 in contributions for his campaign coffers.

Another allegedly secret arrangement involved Hevesi's friend and political consultant Henry "Hank" Morris, who Hevesi told Stone worked out a "sham" $380,000 consulting deal with Broidy for the benefit of a lobbyist friend of the comptroller. Morris also solicited campaign contributions from firms doing business with the state retirement system, Hevesi said.

Broidy plead guilty earlier this year in the case. Morris is under indictment and has denied wrongdoing.

"I deeply regret my conduct and apologize to the people of New York," Hevesi said at the end of his statement. He resigned as comptroller in 2006 as part of a plea deal on charges he had state employees care for his ailing wife.

Stone set Dec. 16 as a possible sentencing date. Hevesi faces up to four years in prison.

Freed on his own recognizance but surrendering his passport, Hevesi walked out of the courtroom with his attorney Bradley Simon. Both declined to comment.

More than $138 million in restitution, fines and other payments have been made to the pension system in the probe.

With Maria Alvarez