* Dem Smith schemed to run as GOPer * Faces rap with Republican Halloran

State Sen. Malcolm Smith and city Councilman Dan Halloran were arrested this morning on charges they were plotting to rig this year’s mayoral election through fraud and bribes.

The pols allegedly formed an alliance built on cash payments and fraud to get Smith — one of the state’s top Democrats — placed on the GOP mayoral ballot, sources said.

FBI agents arrested them both at their Queens homes shortly after 6 a.m.

“I have no idea,” Halloran, in handcuffs, told a Post reporter when asked if he knew why he was being arrested.

“I’m sure the truth will come out once I have an opportunity to find out what’s going on.”

Smith would not say anything as he was hauled off. FBI officials confirmed the arrests.

“Elected officials are called public servants because they are supposed to serve the people. Public service is not supposed to be a shortcut to self-enrichment," FBI Assistant Director George Venizelos said in a written statement today.

"People in New York, in Spring Valley -- in any city or town in this country -- rightly expect their elected or appointed representatives to hold themselves to a higher standard. At the very least, public officials should obey the law.

"As alleged, these defendants did not obey the law; they broke the law and the public trust. There is a price to pay for that kind of betrayal.”

Prosecutors are planning to lay out the whole sordid scheme during a news conference later today.

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