Controversies
The New York Post in an editorial questioned Hevesi's use of financial advisers as campaign contributors (Alan Hevesi's advisers, November 11, 1996). As City Comptroller he got to choose the city bond underwriters. According to a New York Post editorial, Hevesi hired a female minority owned firm, Philadelphia based P.G. Corbin & Co. Hevesi used discretionary funds in the amount of $1.58 million. Back in 1995, Hevesi's office suspended Corbin for failing to pay $5,900 in city corporate taxes.
A Hevesi favored firm, San Francisco-based Grigsby Brandford & Co, was involved in a bribery scandal in 1995. Hevesi, who had been seen as a champion of minority causes, now found himself in a difficult position. He had no comment.
Bayside, New York, activist Joyce Shepard of the Citizens Action Committee for Change tried to highlight the issue of abused women. She contacted Hevesi's office to investigate. Hevesi issued a critical report on the Giuliani administration. On April 17, 1997, she was at New York City Hall with both Giuliani and Hevesi side by side. They promised more space for victims of domestic abuse. Despite all the promises nothing happened. She went undercover to expose the shortcomings of the shelter system. She criticized both Hevesi and Giuliani. After she was quoted by the Village Voice Hevesi reportedly phoned her and told her: "Don't you ever call my office about anything again!". The comptroller's office didn't deny the call took place. But a spokesman stated the office is open to anyone who thinks something is going on we should know about (Mission Unfullfilled, New York Newsday, Janison, D. July 20, 1997).
As state comptroller, Hevesi faced a conflict of interest allegation in relation to a private capital fund named "Markstone", according to a report in the New York Sun (Hevesi's Advice Stirs Questions On the Coast, Gerstein, J., May 11, 2006). The opening paragraph stated, The New York State comptroller, Alan Hevesi, encouraged California pension managers to invest in a private capital fund founded by a man whose wife has been a generous donor to his political campaigns. The story originally appeared in the Los Angeles Times. Hevesi met with his California counterpart, comptroller Steve Westly, and Elliot Broidy of Markstone Capital Group. They met on May 19, 2003, in order to "pitch" the California Public Employees' Retirement System (CalPERS) to invest in Markstone. Markstone was a fund that invested in Israeli companies. The Sun reported that in June 2003, Mr. Hevesi invested $200 million in Markstone. Mr. Broidy is a major Republican political contributor. Mr. Broidy did not directly contribute to Hevesi's political campaigns, but his wife, Robin Rosenzweig, had contributed $80,000 since 2002 -- $30,000 before the May 2003 meeting and $50,000 afterwards. She also contributed to Andrew Hevesi's state assembly race. On October 7, 2010, Hevesi pleaded guilty to accepting gratuities for steering the investment funds to California venture capitalist Elliot Broidy. Hevesi had accepted $75,000 in trips for himself and his family and $500,000 in campaign contributions, and benefited from $380,000 given to a lobbyist.
At a commencement address he delivered at Queens College on June 1, 2006, Hevesi told his audience that Senator Charles Schumer was so tough he would "put a bullet between the President's eyes if he could get away with it." Several hours after his remarks, Hevesi apologized for his comments, calling them "beyond dumb," "remarkably stupid," and "incredibly moronic."
While attending the New York State Association of Counties conference on September 28, 2006, Hevesi had one of his state employed press aides tape record the speech of his opponent, Christopher Callaghan.
On October 2, 2006, allegations arose that Hevesi fired receptionist Alexander McHugh, who filed a charge of sexual harassment. Hevesi's office stated that the receptionist did not cooperate with their investigation into the matter and that "...found no evidence of sexual harassment." McHugh filed a complaint with the federal Equal Employment Opportunity Commission.
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