American Notes New York

At the Democratic Convention in San Francisco last summer, John Zaccaro stood proudly beside his wife Geraldine Ferraro, first woman ever nominated by a major party to run for U.S. Vice President. Privately, too, he was doing well; the couple had a net worth of about $4 million, stemming largely from his New York real estate business. But in the glare of the Ferraro campaign, his financial dealings came under harsh scrutiny. Last week Zaccaro was arrested and ushered into Manhattan Criminal Court, where he pleaded guilty to a misdemeanor charge. An indictment accused Zaccaro of scheming to defraud during a deal in which he and a partner tried to buy five Queens apartment buildings. In a plea-bargaining arrangement, Zaccaro admitted to two specific allegations: that he had tampered with a copy of an appraisal and that he had kited his net worth to $21.6 million. He could be fined up to $1,000. There is a chance that his real estate license might be suspended.

Ferraro, who has been talked up as a 1986 Senate candidate, loyally called the violations "technical." But some political consultants thought she had been damaged. "She's in great difficulty," said New York's David Garth. "But it's possible to come back."