Officials say NY comptroller will resign over controversy for using state employees as drivers

(AP) The state's chief financial officer, Comptroller Alan Hevesi, plans to resign to avoid an indictment for using state employees as his wife's chauffeurs, a law enforcement official familiar with the case said Thursday.

The official, who spoke on the condition of anonymity because the case is in the hands of a grand jury, said Hevesi was "definitely reaching an agreement" with Albany County District Attorney David Soares' office "to step down to avoid being indicted."

A leading state Democrat also said on condition of anonymity that Hevesi was expected to resign Friday and plead to a minor felony charge at most.

Hevesi spokesman David Neustadt had no comment Thursday.

The district attorney's office confirmed earlier this week it was negotiating with Hevesi's lawyers, but spokeswoman Rachel McEneny denied Thursday than any deal had been reached. "There is nothing in writing. There is nothing that has been approved by a judge or anyone else," she said.

The issue surfaced during Hevesi's re-election campaign this fall, and the state Ethics Commission determined in October that Hevesi had violated the law when he used staffers to chauffeur his wife starting in 2003 through mid-2006.

Hevesi had argued that his wife suffered from heart disease, chronic pain and depression, and that he feared for her safety because of threats he has received over 35 years in public office. But the bipartisan commission said state police found no threat that justified such an arrangement.

Hevesi agreed last week to pay the state $206,293.79 to settle an attorney general's investigation into how much he owed for the drivers' service.

Between his $151,500 salary and three public pensions, Hevesi is paid more than $335,000 annually by the state. If he resigns, the Democrat-dominated state Legislature would choose his successor.

Hevesi, a Democrat, won re-election in November by a large margin. He had said for months that he had no intention of resigning.

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Associated Press Writer Michael Gormley contributed to this report.