Alan Hevesi's 35 years in politics came to a stunning end Friday with an admission of guilt on felony charges accompanied by his resignation as New York State Comptroller.

The comptroller appeared in the Albany County Courthouse just after 11 a.m., where he pled guilty to a felony charge of defrauding the government to avoid indictment on charges he used state workers to chauffeur his wife.

Hevesi's resignation brings to an end a 35-year career that took him from local Queens politics to one of the most powerful positions in the state.

"During a period from 2005 to 2006, one particular state employee, in addition to transporting my wife, spent considerable time with my wife that and could not properly be characterized as security," Hevesi read from a statement in court. "At this time the amount is hard to calculate, but it exceeded $1,000. I apologize to the court, but until this issue become public matter, I did not plan to reimburse the state for this time."

Hevesi's resignation will be effective January 1st, 2007.

“As New Yorkers, this is a sad day in our history," said Albany District Attorney David Soares. "And as a Public Servant it saddens me that an experienced and distinguished public servant who has had a record of achievement ends up in our courtroom. We are satisfied with the sentence and feel we have made Mr. Hevesi accountable to his crime.”

Soares added that he hopes his handling of the case sends a clear message to those in state politics that such actions won't be tolerate, no matter what the rank. He also said that since the Hevesi investigation became public his office has a gotten a "backlog" of tips on other officials working in Albany who are potentially defrauding taxpayers.

Under the deal, Hevesi had to be officially arrested, fingerprinted and booked, but he will avoid prison time. The comptroller will also be required to pay the maximum fine of $5,000 and a $50 fee for the processing of a DNA sample he will be required to provide as a convicted felon.

Hevesi's guilty plea amounts to a change of tune for the comptroller who has insisted the charges were minor since they first came to light. The hearing also revealed further evidence indicating that the prosecutor had evidence of an even greater misconduct. Hevesi's driver, Nicholas Acquafredda, a witness in the case, admitted that he didn't just provide chauffeur services to the comptroller's wife, but also ran daily errands for her, including picking up dry cleaning and taking out the garbage -- services reflective of a home help aid.

By law, driving services would only have been covered by the state if Hevesi could prove the existence of a security threat to his wife. Hevesi was never able to do so, and it assumed the driving and assistant services were provided rather as a convenience.

With a felony conviction, Hevesi will no longer be legally permitted to serve in state politics and some are suggesting the 66-year-old comptroller intends to retire. As an admitted felon, the soon-to-be former comptroller will no longer be permitted to even vote as a common citizen.

Outside the courtroom after the proceedings, Hevesi was contrite, expressing gratitude for his lengthy career as a public servant, but no indication of his future intentions.

"I want to apologize for the people of New York State who have given me the extraordinary honor of serving them for 35 years," Hevesi said. "I want to apologize to the 2,400 professionals in the comptroller's office who have done a remarkable job over the last four years, maybe an unprecedented job of protecting the taxpayers and leading a reform movement. I want to apologize to my family who have been so strong and loving throughout this entire process... and I wish you all a happy holiday."

Ahead of the hearings, Mayor Michael Bloomberg said Thursday that he will be sorry to see Hevesi go.

"Alan Hevesi has been a very good comptroller of the state of New York for the last five years,” said Bloomberg. “He was a very good comptroller for the city. He didn't support me when I ran for election; but nevertheless, I was always impressed with him not being partisan when he got to Albany. I think he did a very good job and I think it's very sad to have anybody's career end that way. And also we are going to, hopefully we'll get somebody as good, but he did a good job and we'll be deprived of his services."

Hevesi was re-elected as State Comptroller by a resounding margin in November and vowed at the time to fight for his job. He has already paid back the state more than $200,000 to settle the original investigation with the attorney general's office.

Now that Hevesi has decided to step down, the State Legislature will be tasked with finding a replacement comptroller. The successor must win with a majority of votes, at least 107, to get the job.

Even before Hevesi's exit, talk had already turned to possible replacements. Sources close to Spitzer have said he wants someone independent, outside government. Among the names suggested was Governor-elect Eliot Spitzer's family friend and businessman Bill Mulrow, whom Hevesi defeated in the Democratic primary in 2002.

Assembly Speaker Sheldon Silver is said not to want any of his colleagues in the spot. But talk has turned, among others, to Richard Brodsky of Westchester and Michael Gianaris of Queens. Both aborted runs for state attorney general. But Silver says he's going to work closely with Spitzer, who in a statement said he wants someone with financial experience.

"This is imperative given the comptroller's role in managing one of the nation's largest pension funds, and, he or she should be a person of unquestioned integrity," said Spitzer in a written statement.

Former Assembly Speaker Mel Miller also warned that the incoming comptroller must be able to navigate the complex political world in Albany.

"I think the governor misses the fact that the comptroller also comments on budgets, on how expenditures are made, approves contracts, and is the counter-weight to the governor and legislature in the balance of power," said Miller.

This will be just the third time in recent years the State Legislature will chose a replacement for an elected official--as when they tapped Carl McCall to replace Ned Regan for State Comptroller in 1993.

For now, the office will be run by one of Hevesi's deputies, but lame duck Governor George Pataki signaled Friday that after consulting Spitzer he may assign someone to the post as an interim comptroller.

"I have some concerns over the operations of the comptroller's office going forward," said Pataki.

One person not interested in the job is City Comptroller Bill Thompson.

“I’m happy as city comptroller, and I have absolutely no interest in the state comptroller position,” said Thompson.

Thompson is said to want to be mayor, a position Hevesi ran for and lost in 2001.

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