Levy lashes out at Bellone over leaked memo

Former Suffolk County Executive Steve Levy on Thursday assailed successor Steve Bellone over the leak of a memo accusing him of misleading bond agencies on county finances as Bellone apologized for creating a "circus like atmosphere" with the issue.

Levy, a Republican, held a news conference in Holbrook to complain about a memo by Bellone aides that outlined "deceptive and fraudulent" budget practices under Levy that may have misled bond agencies, and suggesting an investigation by the U.S. Securities and Exchange Commission.

Levy called the memo "a partisan hatchet job."

"It's Government 101: blame the last guy," Levy said. "It's one thing when you do that in a political sense. It's a whole different thing when you elevate it and say, 'That's criminal.' "

Bellone has taken no stance on whether an investigation of Levy should take place and says the memo's conclusions "may be overstated." He said he regrets it was given to legislators this month in the period before a special panel projected a $530 million deficit by 2013.

Bellone said in a statement Thursday that he regretted that "the actions of my administration, though well intentioned, have temporarily brought back the circus like atmosphere," of the period when Levy battled frequently with county lawmakers.

"I apologize to Suffolk County residents and businesses for this distraction and want them to know that I am completely focused on addressing the county's fiscal crisis, making government more efficient, growing our economy and protecting taxpayers," Bellone said.

At his news conference, Levy said he has asked Suffolk District Attorney Thomas Spota to review budgeting practices in Babylon Town while Bellone was supervisor. A DA spokesman said the office has yet to receive the written request.

Levy also said he will ask the SEC to probe whether Bellone's chief deputy, former Wall Street attorney Regina Calcaterra, used the threat of the federal agency's involvement for political gain.

Calcaterra denied the allegation, and another by Levy that she asked a Republican lawmaker to leak the memo.

"I did not ask nor encourage anyone to leak publicly available information, nor did I contact the SEC," Calcaterra wrote in an email, noting that information in the memo was culled from public documents.

Legislators Edward Romaine (R-Center Moriches), John Kennedy (R-Nesconset), Wayne Horsley (D-Babylon) and DuWayne Gregory (D-Amityville) received the memo.

All denied on Thursday that they had leaked it to the news media, or that Calcaterra had asked them to do so.

"This was for discussion purposes only," Kennedy said.

"We weren't sure it was credible, if the detail was sufficient to move it forward to the SEC or any agency," said Horsley, the deputy presiding officer. "That's where we dropped it at the end of the day."