A state judge has refused to lift a temporary restraining order freezing $1.1 million of the New York Independence Party’s assets in a criminal case over Queens Republican operative John Haggerty’s alleged theft of funds given to the party by Mayor Michael R. Bloomberg. Supreme Court Justice Martin Shulman (See Profile) ruled that, even though the party may not have known about Mr. Haggerty’s alleged theft, it would be unfair to release the funds, which Manhattan District Attorney Cyrus R. Vance Jr. is trying to recover from the party.
During his 2009 re-election campaign, Mr. Bloomberg gave $1.1 million to the Independence Party to set up an anti-election fraud operation. The party then paid $750,000 to Mr. Haggerty to run the operation, but he used it to buy a house instead, Mr. Vance claims. He also claims the party knew or should have known about the theft and that it is liable for the mayor’s loss.
