From the NY Times:
The Manhattan District Attorney’s office is investigating what became of a $750,000 campaign payment from Mayor Michael R. Bloomberg that went to a company Mr. Haggerty set up. And within the next week or two, according to lawyers and political officials familiar with the matter, the investigation could be coming to a conclusion, perhaps with an indictment, perhaps with a plea agreement.
The investigation, which has been going on for months, has already raised questions about the unusual way Mr. Bloomberg’s campaign directed the payment, using personal checks from the mayor rather than the campaign’s official account. And while people close to the case say neither the mayor nor the campaign is a target of the investigation, an indictment could be embarrassing for Mr. Bloomberg, who is said to have trusted Mr. Haggerty as a key liaison to the city’s Republicans.
Mr. Bloomberg paid the state Independence Party, whose endorsement he had won, $1.2 million last year. The party then paid $750,000 of that money to Special Election Operations L.L.C., a company established by Mr. Haggerty, to bankroll an Election Day operation in northern Queens, with up to 300 workers reportedly paid $500 each.
But the party and the Bloomberg campaign believe that operation fell considerably short of $750,000, and they say that if Mr. Haggerty kept any extra money, he was not entitled to do so.
“I doubt that the mayor had any idea any of this was happening,” said an administration official, speaking on condition of anonymity because of the investigation.
Bullshit. He knew exactly what was happening.