Following an internal ethics committee investigation, the New York State Assembly censured Lopez on August 24, 2012, when allegations of sexual harassment brought by two female employees were substantiated. Soon after, it was reported that the Assembly made a secret payment of $103,080 on June 13 in order to settle previous allegations made by two other women, which never went to the ethics committee. Speaker of the House Sheldon Silver (D) approved the settlement, but once it came to light said it was the wrong decision. “I take full responsibility in not insisting that all cases go to the ethics committee. While that opinion is both legally correct and ethical and can result in a resolution sought by complaining employees, I now believe it was the wrong one from the perspective of transparency,” he stated. A number of officials and individuals, including Gov. Andrew Cuomo (D), called for a full investigation. Lopez, meanwhile, insisted that he did nothing wrong and would not resign his seat, but did give up his position as chair of the Brooklyn Democratic Party. Following state and prosecutorial reports alleging that Lopez harassed four female staffers in physical and non-physical manners, Lopez initially announced that he would resign his Assembly seat on June 20, 2013, the end date of that year's legislative session. However, facing threats of expulsion, he announced on May 18, 2013, that he would resign effective May 20, 2013, at 9 a.m. At the time of his resignation, Lopez kept his remaining position as Democratic district leader, which prompted party leaders to unanimously pass a resolution calling for him to resign that post as well. He ran unsuccessfully for New York City Council in 2013.