Manhattan Republican Party Chairman Dan Isaacs entertained a thinly disguised bribe offer from an undercover FBI agent posing as an associate of Democratic state Sen. Malcolm Smith, according to a transcript of taped conversations obtained by The Post.
The explosive exchange between Isaacs and the federal undercover — posing as a crooked real-estate developer — took place at a Feb. 14 luncheon in Midtown’s Sparks Steak House.
Isaacs has not been charged in the case.
But one of his fellow diners that day, Republican City Councilman Dan Halloran, was indicted for allegedly accepting bribes to help Smith get on the GOP ballot in the mayor’s race.
Halloran arranged the meeting and invited Isaacs along, sources said.
Smith faces charges of trying to bribe his way onto the ballot in a far-ranging plot.
“I was the one really carrying Malcolm’s water!” Isaacs tells the undercover.
“In a general election, Malcolm running on a Republican line, I mean, he kicks ass. No question about it,” Isaacs gushes.
The undercover says he’s “willing to retain” Isaacs for business projects as they discuss helping Smith cross party lines.
At one point, the agent says he is prepared to fork over $15,000 before and $15,000 after Smith gets on the ballot.
Isaacs responds, “Look, as an attorney, I am always looking to do work. OK? So that goes without saying. And I hope and expect that I’ll be able to do stuff. You use Jay?” — a reference to Joseph “Jay” Savino, a former Bronx GOP leader indicted for accepting bribes in the Smith case.
The undercover says “yes,” he’s paying Savino. It wasn’t clear for what Savino was being paid.
“I want to do the same thing. Because I’m in business as an attorney to make money,” Isaacs is quoted as saying.
“If I can hire you now, I’d love to,” the undercover responds.
The undercover tells Isaacs he has “three, four holding companies . . . And just bill me for 10 hours. I don’t care, whatever it is . . . To be honest, send me an invoice.”
Isaacs makes it clear he’s interested. “Yeah, I mean I’ll send you a retainer agreement, whatever it is you want to do and that, that’s fine . . . What do you want me to do? Send a written retainer to your holding company?”
The undercover says he’s “happy to pay,” but he needs “some commitment” from Isaacs to authorize a “Wilson Pakula” for Smith — the procedure that allows someone registered with a different party the legal right run in the GOP primary.
“I need to get him to the starting blocks,” the undercover said of Smith.
Isaacs says, “No, I hear ya.”
The undercover comes back, “I can hire you for a retainer now and then another . . . Is that a workable option with you?”
“That’s fine, because I was, heading that direction anyway,” Isaacs agrees.
When the Smith bribery scandal broke in April, Isaacs issued a statement denouncing “the alleged actions of those arrested as an outrage and a complete betrayal of the public’s trust” without mentioning that he sat at the same table with Halloran and an undercover agent.
In the transcript, Isaacs offers what could be construed as put-downs of Republican mayoral candidates John Catsimatidis — whom he is backing — and Joe Lhota.
“With all due respect to John, I think Malcolm is a much better candidate than John in the general election. And I’d love to see Malcolm be our nominee,” Isaacs says.
Isaacs dismisses Lhota as a “flawed candidate because he’s another white guy.”
Isaacs also talks of his ambition to take over the state GOP.
In a phone interview last night, Isaacs confirmed the meeting with the undercover — whom he called “Raj” — but insisted he did nothing wrong.
“I was asked to attend a luncheon about doing legal work,” Isaacs said.
“I never accepted any retainer. I never accepted any bribe. I have never been charged.”
Isaacs also said that he was being candid and that although he endorsed Catsimatidis for mayor, he was promoting Smith because the GOP needs to attract minority voters.
He also said Smith took strong positions on law and order, including supporting stop-and-frisk.
But Isaacs said his comments were taken out of context and he never suggested that Smith was a better candidate than Catsimatidis, a successful billionaire businessman.
He also said Lhota is an “excellent candidate,” but lacks crossover appeal to attract Democratic voters.
“We need to have minority candidates to attract minority voters,” he said.
Isaacs also said he’s never hidden his desire to become state GOP chairman, noting he previously challenged then-GOP boss Joe Mondello for the job.