New York Political Operative Accused of Siphoning Funds

A Republican political operative was accused on Monday of funneling more than $1 million from New York Mayor Michael Bloomberg's campaign contributions for his own private use, officials said.

John Haggerty, 41, was charged with grand larceny and money laundering by the Manhattan District Attorney's office, reports Reuters.

The case stems from Bloomberg's contributions last year of $1.2 million to the state Independence Party, using his personal checks. Haggerty said the funds were used for election day costs, such as poll watchers, through his company Special Elections Operations, authorities said.

Instead, authorities say the company was bogus and Haggerty pocketed all but $32,000 of the money, using the funds to purchase a home that had belonged to his father.

Manhattan District Attorney Cyrus Vance called the scheme "audacious" and said Haggerty used the political party process to commit a crime.

"He presented Mayor Bloomberg with a phony budget that detailed more than $1 million in sham expenditures that he claimed were necessary for the support of the operation," Vance said.

New York's Independence Party is the state's third largest political party after the Democratic and Republican parties.