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Wednesday, November 28, 2012

No jail time for Elliott Broidy, Israeli investor guilty of giving $1 million in bribes to officials

Elliott Broidy

ALBANY — The high-powered Israeli investor who pleaded guilty to giving $1 million in bribes to four top state pension fund officials — including disgraced ex-controller Alan Hevesi — got off with a slap on the wrist.

Nearly three years after pleading guilty to his role in a massive state pension fund pay-to-play scandal, Elliott Broidy received no prison time at his sentencing this week.

Broidy in late 2009 admitted to bribing four senior controller officials, including covering $75,000 in expenses for “luxury travel" to Israel and Italy for Hevesi and his relatives, to get $250 million in pension fund business for his firm, Markstone Capital.

In exchange for cooperation that helped land Hevesi behind bars, Broidy this week was able to withdraw his felony plea and instead admit to a misdemeanor.

He had been facing up to four years behind bars. The lighter sentence was recommended by Attorney General Eric Schneiderman’s office at the request of Ellen Biben, who headed the four-year pension fund probe under then AG Andrew Cuomo.

Broidy’s sentencing was long-delayed until he could repay the state the $18 million in fees he received as part of the scam.

Once the money was paid in full, he was given a conditional discharge late Monday afternoon by Manhattan State Supreme Court Judge Bart Stone, meaning he’ll avoid jail time if he stays out of legal trouble.

Broidy received a letter of support from former Gov. George Pataki, who described the investor as a “generous, caring and compassionate person.”

In addition to paying Hevesi’s extra travel costs, Broidy is said to have shelled out $90,000 in living expenses and hospital bills to the girlfriend of a top Hevesi aide and another $44,000 to the girlfriend’s family.

Sources previously told the News the girlfriend was “Mod Squad” actress Peggy Lipton and the official was Hevesi’s chief of staff, Jack Chartier, an unindicted coconspirator in the case.

Since his arrest, Broidy has resigned as the head of Markstone, which separately repaid the state $18 million.

Broidy and Hevesi, who recently won parole from prison, were among the eight people criminally charged in the probe.

In addition, two dozen companies agreed to civil settlements totaling $170 million.


By Kenneth Lovett / NEW YORK DAILY NEWS

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