The federal investigation began about a year ago and has focused on a foundation affiliated with the city's Department of Correction during Mr. Kerik's tenure as its commissioner, from 1998 to 2000, according to one of the officials, both of whom spoke on the condition of anonymity. Mr. Kerik later served as police commissioner from August 2000 to December 2001.
....The federal investigation is being conducted by the F.B.I. and prosecutors from the office of Michael Garcia, the United States attorney in Manhattan, who have subpoenaed bank records, one of the officials said. The precise suspicions about Mr. Kerik with regard to the foundation funds were unclear.
The foundation is the New York City Correction Foundation which was headed by Kerik.
The sole signatory on the foundation's accounts was Frederick J. Patrick, who pleaded guilty in 2003 to looting the nonprofit corporation. Its stated purpose was to finance programs and activities to strengthen the department.
Mr. Patrick held high-level posts in the department from 1994 until 1998, during the administration of Mayor Rudolph W. Giuliani. Mayor Giuliani went on to name him to a series of higher level posts, including commissioner of juvenile justice and deputy commissioner of community affairs in the Police Department.
Mr. Patrick, who spent the stolen money on collect calls he accepted from inmates in city jails and state prisons, some of which officials have said involved phone sex, was sentenced in June 2004 to a year and day in federal prison. He was released in July 2005.
The NY Daily News says the foundation is out $1 million.
Anyone remember the diTomasso brothers and their ties to Bernie? They are the brothers that did the renovation work on Kerik's apartment. They are now charged with perjury for lying to the grand jury about it. They pleaded not guilty this week. And Rudy may get tarnished by it. He, too, testfied before the grand jury:
In the Bronx courtroom, the preliminary back-and-forth about production of documents for the defense was already under way. Bronx rackets bureau chief Dennis Consumano, who will handle the case, said the government's records in the matter were "substantial." Included in those records will be the grand jury testimony of Giuliani, who was reported to have become testy and annoyed under questioning by prosecutors. But key questions about the events remain unanswered, at least for the public.
What, for instance, was then mayor Giuliani told about the startling testimony that Frank DiTommaso gave to the city's department of investigation in June 2000, when the DiTommasos were trying to persuade city officials that their numerous dealings with mobsters in the construction and supply business were no fault of their own.
The di Tomasso brothers are not going quietly into the night.
Standing in dark suits before the judge last week, the brothers let their attorney, an influential New Jersey practitioner named Thomas Durkin Jr., enter their pleas of not guilty. The men face up to seven years in prison if convicted at trial.
Even though Giuliani may never have to put in an appearance at such a trial, it is bound to shed an unflattering light on one of his administration's murkiest episodes.
"It's not as heavy as a Kerik trial would have been," said George Arzt, a lobbyist and City Hall veteran who served as press spokesman for Mayor Ed Koch, "but any negative gets picked up. It snowballs. It erodes his strength, which is integrity. He is supposed to be Mr. Clean, the tough guy with a law enforcement background for treacherous times. When you are eating away at that it hurts. It raises the aura of hypocrisy."
For Rudy Giuliani to think he can run for President and bury his past just amazes me.
It's time to get his history out in the blogosphere. The man is not qualified. People think he is some sort of hero because he didn't fall apart during 9/11. He is not. He was a prosecutor who loved putting people in jail and a Mayor who trounced the downtrodden.
