Former New York state comptroller granted parole

Reuters News
Posted: Nov 15, 2012 10:58 AM

By Karen Freifeld

NEW YORK (Reuters) - Former New York state comptroller Alan Hevesi will be out of prison by December 19 after serving 19 months for a "pay-to-play" scheme at the state pension fund.

A three-member board granted Hevesi parole after a hearing on Wednesday, acknowledging his "state of remorse," personal health and family issues.

"The board concludes that you should continue to serve the balance of your sentence under community supervision," the Parole Board said. A copy of the decision was provided by the New York state Department of Corrections.

Hevesi, 72, was sentenced in April 2011 to two to four years in prison after pleading guilty to illegally receiving $1 million in gifts and $500,000 in campaign donations. In return for gifts, Markstone Capital Partners, a Los Angeles-based money manager, received $250 million of New York pension fund money to manage.

Seven others pleaded guilty in the case, including Elliot Broidy, the founder of Markstone Capital, and Hank Morris, Hevesi's former chief political consultant. Morris was sentenced to prison. Broidy is scheduled for sentencing December 5.

Hevesi, who resigned as state comptroller in 2006, is being held at the Mid-state Correctional Facility, a medium security prison in Marcy, New York.

(Reporting by Karen Freifeld; editing by Matthew Lewis)