New York Post

AG aide’s ‘conflict’ in AIG fraud case

- By CARL CAMPANILE ccampanile@nypost.com

Newly revealed phone records are raising questions about whether the state attorney general’s top deputy is getting mixed up in the case against AIG honcho Maurice “Hank” Greenberg, although he once worked for the insurance bigwig’s defense.

Chief Deputy Attorney General Harlan Levy has spoken on the phone more than a dozen times to his former coworkers at the offices of Boies, Schiller and Flexner, which is defending Greenberg against fraud charges, according to records obtained by The Post and being reviewed by the Joint Commission on Public Ethics.

Before taking his job with Attorney General Eric Schneiderm­an, Levy worked on the Greenberg defense. Legal ethics rules dictate that he now have no involvemen­t in the case.

“Levy participat­ed in highlevel litigation strategies with the most senior members of Greenberg’s legal team before leaving to join Scheiderma­n’s office,” a Greenberg insider said.

While it is not clear what Levy talked about with his old firm, the fact his number shows up 13 times in the Boies, Schiller and Flexner logs is raising eyebrows.

If these allegation­s are true, we would seriously consider holding hearings to look into this matter.

— A source close to the state Senate GOP leadership

Senate Republican leader Dean Skelos’ office said the conversati­ons raise conflictof­interest concerns.

“If these allegation­s are true, we would seriously consider holding hearings to look into this matter,” said a source close to the Senate GOP leadership.

The logs show Levy talking to Boies, Schiller and Flexner attorney Nicholas Gravante several times between Dec. 6 and 9, 2013.

The phone logs show that Gravante made the initial call. Six of the 13 calls found in the logs were made by Levy to Gravante.

One call Dec. 8 lasted 34 minutes, the logs show.

Those calls came around the time that reports surfaced about David Ellenhorn, the lead prosecutor in the Greenberg case, taking a free ride on David Boies’ private jet in 2009 during an outofstate deposition in the case.

Ellenhorn’s alleged ride came after the deposition of Warren Buffett in Omaha, Neb. NowGov. Andrew Cuomo was attor ney general at the time. Ellenhorn didn’t immediatel­y report the trip as an expense, which can be considered a free gift for a public official.

Greenberg had filed an ethics complaint over Ellenhorn’s alleged involvemen­t in the “Air Boies” incident. JCOPE is reviewing the allegation­s against the prosecutor­s.

If Levy has now involved himself in the Greenberg case — which has been dragging on for years — that would be improper, a Greenberg insider said.

But sources also said that it could be considered inappropri­ate for Gravante to be reaching out to his former law partner, Levy, to discuss any aspect of the Greenberg case.

Gravante declined to comment.

Schneiderm­an’s office dismissed the conversati­ons as much ado about nothing.

“This is the just the latest ploy by Mr. Greenberg’s team to deflect attention away from the serious fraud charges that three successive attorneys general have pursued,” said Schneiderm­an spokesman Damien LaVera.

A source close to Greenberg said, “It’s unfortunat­e that the Attorney General’s Office views corruption and ethics in his office as nothing but a distractio­n.”

A source familiar with the case said members of Greenberg’s legal team have been busy fighting among themselves.

“First, one Hank Greenberg lawyer complains about what another Greenberg lawyer did with his plane. Then one Greenberg lawyer complains about another Greenberg lawyer’s phone calls. Maybe they should work this out between themselves,” the source said.

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