State Sen. John Sampson has been indicted on charges of embezzlement, obstruction of justice and lying to the FBI.
Sampson was a court-appointed referee to watch over escrow accounts for sales of foreclosed properties in Brooklyn. It's alleged he embezzled $440,000 between 1998 and 2008.
He's also accused of funneling funds into his failed campaign for Brooklyn DA.
There was no immediate response to a message left Monday for Sampson's attorney.
Senate Democratic Conference Leader Andrea Stewart-Cousins said Sampson has been stripped of his ranking positions and committee assignments.
The arrest came less than a week after prosecutors revealed that former Sen. Shirley Huntley made numerous secret recordings of other elected officials in a bid for leniency in her own corruption case.