Kerik Troubles Haunt Giuliani

Indictments including allegations of bribery, tax fraud and obstruction of justice are expected against former NYC police commissioner and Rudy Giuliani confidant, Bernard Kerik, according to a report in the NY Daily News.

Giuliani’s ties to Kerik include promoting him to correction commissioner, then to police commissioner while he served as mayor. Giuliani later also hired him at his firm, Giuliani Partners -- and recommended him to President Bush for the position of Homeland Security secretary.

The bribery allegations involve a secret meeting at a bar in Tribeca, according to two sources familiar with the federal probe, reports the News. Kerik has turned down a deal to plead guilty to tax charges. The grand jury investigation has since expanded to include other charges, the paper reports.

The indictment will have direct implications for frontrunning presidential candidate Giuliani, the News reports – with another Giuliani commissioner and a top inspector general during Giuliani's years as mayor slated to be called as witnesseses to describe the secret meeting in Tribeca.

In July 1999, Raymond Casey, former head of the Trade Waste Commission, and Michael Caruso, former inspector general with the city Department of Investigation allegedly met with Kerik, then the city Correction Department commissioner, at Walker's bar on North Moore St.

At the time, Casey was investigating Interstate Industrial Corp., a company that employed Kerik's brother Donald and the best man at Kerik's wedding, Larry Ray. Reportedly, during the meeting, both Interstate and Ray were discussed. Kerik has admitted that at the time Interstate was paying to renovate his Bronx apartment.

The allegation is that Kerik used his city position to try to influence the city's probe of Interstate, notes the News report.

Last year, Kerik pleaded guilty to two misdemeanor charges brought by the Bronx district attorney in connection with receiving payments totaling $165,000 from Interstate.

Giuliani has admitted a failure in judgement. "It was a mistake," Giuliani told CNN's Larry King in February. "I think the answer is I made a mistake and I took responsibility for it."