A Manhattan principal who had been under investigation for potentially sending hate mail has admitted he paid his secretary with school funds to proofread and edit his graduate school essays.

The city's Conflicts of Interest Board and the Department of Education say Independence High School Principal Ron Smolkin acknowledged he paid his secretary $764.

Smolkin agreed to pay back the money, plus a $5,000 fine.

Earlier this year, students and teachers at the Hell's Kitchen high school rallied against Smolkin's decision to remove a teacher who had accused the principal of sending a letter to his co-op board that accused him and his partner of infecting young boys with AIDS.

Teachers and students say Smolkin lashed out at the teacher for being vocal about problems at the school.