Officers of Court Profit, Even With Their Own Corruption

$LUSH LEGAL WOE LANDING HARD ON TAXPAYERS
The NEW YORK POST by BRENDAN SCOTT

April 20, 2008 -- The City Council's slush-fund woes have just begun - now comes the massive bill to taxpayers. The far-reaching investigation into the council's practice of doling out millions in the budget to nonprofit organizations will cost untold tens of thousands of dollars.

Although the investigation has just begun to result in indictments, council Speaker Christine Quinn has already burned through nearly $95,000 of tax money on legal bills. Quinn signed a yearlong contract with white-collar-crime specialists Sullivan & Cromwell in October. But barely six months later, the council has spent all but $366.75 of a $95,000 retainer, The Post has learned. That contract was nearly exhausted by Feb. 7, when the council paid $59,083.25 in one bill to the $450-an- hour firm.

Meanwhile, Quinn has hired a $600-an-hour criminal lawyer, Lee Richards III, to represent her. And The Post reported yesterday that the speaker was weighing whether other council members questioned in the probe are eligible for their own tax-funded attorneys. The total tab would lay a crushing blow to the city budget.

"Wow," said council Minority Leader James Oddo (R-Staten Island). "After the events of this past week, it's clear that this is going to run longer than some of us anticipated." Last week, two aides to Councilman Kendall Stewart (D-Brooklyn), Chief of Staff Asquith Reid and staffer Joycinth "Sue" Anderson, were indicted on charges they looted $145,000 in grant money that Stewart had earmarked for an after-school tutoring program run by Reid.

The arrests stem from a probe by the US Attorney's Office and the city's Department of Investigation into the council's stashing of $17 million since 2001 under phony charity names. Individual council members would dole out the funds to favored nonprofits. Manhattan US Attorney Michael Garcia has said the probe, first reported earlier this month by The Post, will reach beyond the two indictments. Regarding funding for representation for individual council members, Oddo said, "At some point, the discussion will have to turn to who is the most appropriate entity to pay for it."   brendan.scott@nypost.com