Former New York City Councilman Miguel Martinez Admits to Stealing from the City

NEW YORK (AP) -- A former New York City councilman, targeted in an investigation of a council slush fund, pleaded guilty Thursday to skimming more than $100,000 meant for community programs in his Manhattan district.

Miguel Martinez told a federal judge that he had taken taxpayer money ``that benefited me personally and to which I was not entitled to.''

In pleading guilty to mail fraud and money laundering, Martinez said he had diverted into a secret bank account tens of thousands of dollars meant for an arts center and a low-income housing program. Prosecutors said evidence included fictitious invoices signed by the councilman.

Martinez is free on $250,000 bond. He could face more than 5 years in prison when sentenced Oct. 21. He also must forfeit $106,000.

Martinez resigned Tuesday under pressure in the ongoing probe of the council's once-hidden practice of stashing away millions of dollars in ``reserve funds'' for nonprofit groups and pet projects.

It was unclear Thursday if any other council members would be charged.

In June, two former council aides, including the former chief of staff to Councilman Kendall Stewart, pleaded guilty to skimming at least $145,000 in taxpayer money from the slush fund. Stewart, who wasn't charged, has denied any wrongdoing.

Martinez was elected to the 51-member council in 2001. He had been under a cloud of suspicion since March, when authorities raided the offices of a nonprofit group in his district that received reserve funds.