Attorney General Andrew Cuomo said Sunday he is keeping a close eye on a secret city fraud investigation into Brooklyn Democratic boss Vito Lopez's nonprofit empire.

"We're now reviewing the investigation material," Cuomo, the Democratic nominee for governor, said at a campaign rally.

As first revealed by the Daily News last week, the investigation found evidence that Lopez's Ridgewood Bushwick Senior Citizens Council made $340,000 in fraudulent claims to the city.

In addition, the report found it had incompetent management packed with Lopez cronies - including his longtime girlfriend - who were paid high six-figure salaries.

Democratic Rep. Nydia Velazquez, who joined Cuomo at the rally, said she found reports of high salaries alarming.

"It troubles me that Bushwick Ridgewood is an organization that is supposed to provide services to one of the poorest districts in the nation," she said.

Lopez did not return several calls for comment.

The state assemblyman founded the nonprofit in 1973. He has since cut all formal ties, but it remains the base of his political power, and led him to become Brooklyn's top kingmaker as head of the county's Democratic Party.

Lopez has managed to stack the party with supportive district leaders, allowing him to rubber-stamp judicial candidates as a form of patronage, critics charge.

He took control of the party after former Assemblyman Clarence Norman was charged with selling judgeships. Norman was later convicted and is serving a 3-to 9-year sentence.

The News reported Sunday that Lopez backed numerous cronies connected to his nonprofit as judicial candidates even though they had been deemed unqualified by the Brooklyn Bar Association.

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