By Nate Raymond
NEW YORK (Reuters) - New York Assembly Speaker Sheldon Silver, one of the state's most powerful politicians for more than two decades, was charged on Thursday with fraud and other criminal counts after a lengthy corruption investigation, federal authorities said.
Silver, a Democrat who has served as the highest-ranking assemblyman since 1994, is accused of trying to conceal "corrupt sources" of outside income and using the power of his office to obtain millions of dollars in bribes and kickbacks.
Silver, a lawyer by trade who represents Manhattan's Lower East Side, is known as one of Albany's three most powerful men. Along with the governor and Senate majority leader, he has been a leading voice in years of negotiations over state budgets and key legislation.
The Assembly canceled its Thursday session following Silver's arrest, less than two weeks after the new legislative session opened.
If Silver, 70, is convicted of a felony, he would lose his seat. Until that happens, he is under no obligation to resign from the Assembly or his leadership post. If convicted, he faces a maximum of 20 years in prison on each of the five counts, a spokeswoman for U.S. Attorney Preet Bharara said.
Silver, the latest in a long line of New York politicians involved in corruption scandals, allegedly received about $4 million from two law firms since 2002 for his "corrupt and secret use," according to the criminal complaint.
One firm specialized in asbestos lawsuits and the other in real estate tax. Silver had no expertise in either field. He was paid instead to use his leadership post to steer taxpayer money and legislation to benefit clients of the firms - and line his own pockets with cash, Bharara said at a news conference.
'CASHING IN'
"He simply sat back and collected millions of dollars by cashing in on his political office," Bharara said.
The case appeared to accelerate after federal authorities resurrected an investigation into corruption in Albany, the state capital. The probe had been started by a commission formed by Governor Andrew Cuomo, who later halted it abruptly.
After surrendering to authorities in lower Manhattan at about 8 a.m., a somber-looking Silver headed to nearby federal court, wearing a dark suit and a black hat, his car mobbed by reporters and photographers.
"It is unfortunate that the prosecutors chose to pursue this as a criminal case," Silver's attorney, Steven Molo, said by email. "We intend to vigorously contest the charges and Mr. Silver looks forward to his day in court."
Critics said Silver, first elected to the Assembly in 1977, wielded political power with an iron fist.
At least 30 New York politicians have faced legal or ethics charges since 2000.
Silver's longtime Senate counterpart, Joseph Bruno, was acquitted in May in a retrial on charges of taking bribes disguised as consulting fees from an upstate businessman.
One of Silver's predecessors as speaker, Mel Miller, was convicted of corruption in the early 1990s but the conviction was overturned by a federal appeals court.
Two former state Senate Democratic leaders, John Sampson and Malcolm Smith, are facing criminal charges.
New York is not alone in having leading politicians face legal problems.
The speaker of Alabama's lower legislative chamber is under indictment for corruption. The speaker of the South Carolina House of Representatives resigned after admitting misuse of campaign funds. And the speaker of the Rhode Island Assembly resigned last year after his home and office were raided by federal authorities, although no charges have been filed.