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Former NYC councilman Halloran convicted of arranging bribes

NEW YORK - Former New York City Council Member Daniel Halloran was found guilty in federal court of arranging the bribery of New York City Republican leaders to allow New York State Senator Malcolm Smith, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. In addition, Halloran was found guilty of accepting a $15,000 cash bribe in exchange for designating up to $80,000 in New York City funds to a non-profit entity that would allow the money to be embezzled through a no-show job. Halloran was convicted in White Plains federal court after a two-month jury trial.

“With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms,” said U.S. Attorney Preet Bharara. “As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go-between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers.  Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment.

Halloran was elected to the New York City Council in 2009, representing a district in Queens, New York. While a member of the city council, Halloran participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First,

Halloran arranged for $110,000 in cash bribes to be paid to leaders of the Republican Party so that they would allow Smith to run for mayor on the Republican Party’s ballot line. Second, Halloran accepted an up-front kickback of $15,000 for designating up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes.

Halloran, 42, of Queens, New York, was found guilty of one count of conspiracy, which carries a maximum sentence of 5 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and two counts of Travel Act bribery, each of which carries a maximum sentence of 5 years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.