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Councilman Stewart's Aides Indicted For Embezzlement The chief of staff of City Councilman Kendall Stewart and another aide were arrested by federal authorities last week and implicated in a case of fraud for allegedly stealing from a fund of "discretionary money" being used for various, possibly unauthorized purposes. Asquith Reid, 64, Stewart's prime aide, and Joycinth Anderson, 69, a worker in the councilman's office were indicted in federal court in Manhattan and charged with conspiracy to embezzle $145,000 through a non-profit group that Reid established. The non-profit was called the Donna Reid Fund, formed to help city school children and named for Reid's daughter who had died of cancer, according to sources close to the case. Stewart's councilmanic district includes parts of Flatlands. The indictment, submitted by U.S. Attorney Michael Garcia of the Southern District, along with Rose Gil Hearn, Commissioner of the New York City Department of Investigations, charges that of the $350,000 given to the supposedly legitimate foundation between 2005 and 2007, Reid and Anderson diverted $145,000 "for personal and political purposes." They were both released on bond and will remain on the city payroll. Reid was also charged with two counts of witness tampering during the investigation, published sources said. The case is being kept open because of an ongoing investigation into a council practice of appropriating discretionary monies into a "slush fund" to be tapped when needed, but that fund was aimed at groups that did not exist. Council Speaker Christine Quinn said two weeks ago that she didn't know anything about the fund, especially since the money to be used had been, essentially, "hidden" until its use was a necessity. Quinn had said that since 2001, more than $17 million existed in the "non-existent" funds. Commissioner Hearn told a press conference that Reid and Anderson had been under investigation for months, but she indicated Stewart was not involved. Garcia also told the news conference that more charges could be forthcoming as a result of the discovery of the slush fund practice.
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