American Notes SCANDAL

Ever since she was named Miss America in 1945, Bess Myerson has been accustomed to the flattering spotlight, not the glare of harsh headlines. But now even her friend New York City Mayor Ed Koch concedes that Myerson has % "fallen from grace." Her slide began earlier this year, when she stepped down from her post as the city's commissioner of cultural affairs after her boyfriend, Building Contractor Carl Capasso, was indicted on federal tax- evasion charges. Myerson hit bottom last week when Koch released classified details of an official investigation charging that she had improperly influenced Judge Hortense Gabel, who was handling Capasso's divorce case. The inquiry sharply criticized Myerson's decision to employ Gabel's daughter Sukhreet as her special assistant just two weeks before the judge slashed Capasso's alimony payments. The report also alleges a coverup: Myerson lied about the circumstances and timing of the hiring in a letter to Koch. Myerson denies acting illegally, but she is under investigation by U.S. Attorney Rudolph Giuliani.