NEW YORK, NY April 16, 2008 —After weeks of public speculation about a criminal probe into the city council's budget practices, federal prosecutors unsealed the indictment of two staffers who worked for Brooklyn Councilman Kendall Stewart. WNYC's Bob Hennelly has more.

U.S. Attorney Michael Garcia said the alleged conspiracy was masterminded by Councilman Stewart's chief of staff Asquith Reid with assistance from council staffer Sue Anderson.

GARCIA: Although Donna Reid Fund purported to be involved in educational assistance to public school children, it also served as a vehicle for Reid aided by Anderson and other criminal associates to embezzle more than $145,000.

REPORTER: Today’s indictments are the result of an ongoing criminal probe into council finances and non-profits led by Garcia and Rose Gill Hearn, commissioner of the City Department of Investigation. Garcia declined to comment on the quality of cooperation his office has received from City Council Speaker Christine Quinn.

For WNYC I am Bob Hennelly.