Operation Bid Rig

Last updated

Operation Bid Rig was a long-term investigation into political corruption in New Jersey conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Attorney for the District of New Jersey from 2002 to 2014. [1]

Contents

The investigation has resulted in the indictments of more than 60 public officials and politically connected individuals since its inception. In July 2009, sting operations resulted in the arrest of 44 people in New Jersey and New York, including 29 public servants and political operatives and five orthodox rabbis from the Syrian Jewish community. A number of high-level New Jersey elected officials were arrested in the operation, including Jersey City Deputy Mayor Leona Beldini, Hoboken Mayor Peter Cammarano, Secaucus Mayor Dennis Elwell, Ridgefield Mayor Anthony R. Suarez, former Jersey City Housing Authority Commissioner and Chairwoman Lori Serrano, Jersey City Housing Authority Commissioner Edward Cheatam, Assemblyman L. Harvey Smith, Assemblyman Daniel M. Van Pelt, former assemblyman and unsuccessful mayoral candidate Louis Manzo, and political operatives Joseph Cardwell and Jack Shaw. [2] [3]

Background

Operation Bid Rig originated with investigations of public corruption among New Jersey officials in Monmouth and Ocean counties. The first phase became public in 2002 when former Ocean Township Mayor Terrance D. Weldon pleaded guilty to extorting cash from developers to influence the approval of building projects. The second phase of the investigation resulted in the February 2005 arrests of 11 elected officials in Monmouth County, who were charged with taking bribes from an undercover cooperating witness. [4]

Operation Bid Rig II

The second phase of the investigation was conducted in 2003 and 2004. Robert "Duke" Steffer, a former developer in New Jersey and Florida, solicited public officials for projects for his company, Steffer Industries Inc., which was later found to be a shell created by investigators. [5]

The investigation snared more than 12 public officials including:

Operation Bid Rig III

The third phase of the investigation—Operation Bid Rig III—began after an individual identified by news sources as real estate developer Solomon Dwek of Ocean Township was arrested on charges of committing $50 million in bank fraud in May 2006. Dwek, a well-known member of the Syrian Jewish community whose parents founded the Deal Yeshiva, [2] agreed to become a cooperating witness for the FBI, infiltrating a money-laundering network connecting Israel and Syrian Jewish communities in Brooklyn, New York and Deal, New Jersey. This network has allegedly laundered tens of millions of dollars through charitable non-profit organizations controlled by rabbis in New York and New Jersey. Among the rabbis implicated are Saul J. Kassin of Congregation Shaare Zion in Brooklyn, Eliahu Ben Haim of Congregation Ohel Yaacob in Deal, and Edmond Nahum of the Deal Synagogue. [7]

According to criminal complaints, Dwek (identified as "CW" for "cooperating witness"), informed targets of the sting that he was bankrupt and trying to conceal his assets, claiming involvement in illegal businesses including the sale of counterfeit Gucci and Prada handbags, as well as insurance scams and bank frauds. The targets accepted checks made by Dwek made out to their charitable foundations and returned the money to him after deducting a fee. Much of the cash they provided him came from Israel, and some of that in turn came from a Swiss banker, prosecutors said. Prosecutors said that about $3 million had been laundered for Dwek since the beginning of the third phase of the operation in June 2007, much of the money coming from Israel.

The case shifted to focus on public corruption after one of the men accused of money laundering, Moshe Altman of Monsey, New York, a Hudson County developer, introduced Dwek to a politically connected building inspector in Jersey City, who then steered him to another city official, Maher Khalil. Khalil, who is accused of accepting $30,000 in bribes from Mr. Dwek, introduced Dwek to a web of public officials, mayoral and council candidates, and their confidants, whom he called "players" [2]

On July 23, 2009, Acting United States Attorney for the District of New Jersey Ralph J. Marra Jr. announced the arrest of the following 44 people: [8]

Jersey City councilman Philip Kenny, while not one of the original 44 arrested, nevertheless pleaded guilty to taking $5,000 in bribes on October 6, 2009. [9]

Organ trafficking

Levy Izhak Rosenbaum of Brooklyn was alleged to have been conspiring to arrange the sale of an Israeli citizen's kidney for $160,000. [2] According to the complaint, Rosenbaum told the cooperating witness that he had been involved in the illegal sale of kidneys for 10 years. Acting US Attorney Ralph Marra said "His business was to entice vulnerable people to give up a kidney for $10,000 which he would turn around and sell for $160,000". Anthropologist and organ trade expert Nancy Scheper-Hughes claimed that she had informed the FBI that Rosenbaum was "a major figure" in international organ smuggling 7 years ago, and that many of Rosenbaum's donors had come from Eastern Europe. This is the first organ trafficking case in U.S. history. In October 2011, Rosenbaum pleaded guilty to three counts of organ trafficking and one count of conspiracy. [10]

Fallout from arrests

One of the 44 defendants, political operative Jack Shaw, was found dead in his Jersey City apartment on July 28, 2009. His death was suspected to be a suicide. [11]

Some officials have been sentenced and are serving time in prison. Two were found not guilty. Many have their sentences pending after a federal appeals court judge threw out sentences of extortion based on the Federal Hobbs Act. [12] Prosecutors have decided not to appeal that decision, [13] and they are now reviewing several cases. [14] Other defendants are currently[ when? ] on trial or awaiting trial.

Charges dismissed

In May 2010, U.S. District Court Judge Jose L. Linares dismissed counts of extortion under the Federal Hobbs Act against Louis Manzo and his brother Ronald Manzo, ruling that the act only applies to elected officials. Louis Manzo then faced two counts of violating the Travel Act, charging him with crossing state lines to commit a crime, and two counts of failing to report to authorities that others were collecting bribes. [15] On February 17, 2012, all remaining charges against Louis Manzo were dismissed by Linares. [16]

Sentenced

Solomon Dwek pleaded guilty in October 2010, in federal court in Newark to one count each of money laundering and bank fraud charges amounting to about $50 million. Standing before U.S. District Judge Jose L. Linares, Dwek answered questions on attempting to defraud PNC Bank. [17] [18] On October 18, 2012, Dwek was sentenced to six years in federal prison for his conviction on bank fraud charges. [19] The following day, he received a sentence of four years in state prison for the separate fraud charges before the New Jersey Superior Court in Monmouth County. He will serve the two prison terms concurrently. [20]

Moshe "Michael" Altman, Union City real estate developer was sentenced to 41 months in prison for money laundering through the charity Gmach Shefa Chaim. [21] He pleaded guilty to 15 separate instances of money laundering in which he pocketed more than $100,000. Itzhak Friedlander, another Hudson County developer involved with the charity, was sentenced to two years in prison for his role in the money laundering sting. [22] Shimon Haber, a Brooklyn developer, pleaded guilty to conspiracy charges related to the money laundering [23] and was sentenced to 10 months' detention—five in prison and five at home. [24]

Peter Cammarano III, former Hoboken Mayor stepped down as Mayor and was found guilty on August 5, 2010 and given two years in prison. [25] He entered prison in October 2010.

Catrillo entered a guilty plea and was fired by the City of Jersey City. He was sentenced to 18 months in prison, and fined $4000. [26] He entered federal prison in March, 2010.

Kenny was sentenced to one year and one day in prison, two years of supervised release and $4,000 fine. [27] He is set to be released May 4, 2011.

Schaffer stepped down from the North Hudson Sewerage Authority commissioner and pleaded guilty to criminal information and extortion charges. He was sentenced in January 2011 to 18 months in prison. [28]

Van Pelt was sentenced with 41 months in prison. He had resigned from the legislature and was fired from his job as Lumberton Township Administrator on July 25. [29] He entered prison in January 2010.

Vega held onto his seat on the Council until pleading guilty to the extortion conspiracy charge in September 2010. The other charges were dismissed. On April 11, 2011 he was sentenced to 30 months in prison. [30]

Rabbi Saul J. Kassin, of the Syrian Jewish Congregation Shaare Zion Synagogue, pleaded guilty to unauthorized money transmitting. He was sentenced to two years probation & fined $36,750, and also ordered to forfeit $367,500 which represented the fees he had taken for the illegal transfers. [31]

Found not guilty

Anthony Suarez narrowly survived an August 2010 recall election [32] and was found not guilty on October 28, 2010. [33]

L. Harvey Smith was found not guilty on December 16, 2010. [34] He had refused to resign despite intense pressure from his own party and did not stand for re-election in 2009.

Pending appeal

Beldini stepped down as deputy mayor and was given three years in prison but is free on bail pending appeal. [35]

Jaslow and King both pleaded guilty in 2009 [36] [37] but sentencing has been on hold during the appeal.

Michael Manzo (no relation) pleaded guilty to conspiracy to commit extortion under color of official right and admitted accepting bribes of $5,000 from Dwek. [38] As part of his plea agreement, Manzo agreed to return the money and to cooperate with the government in related prosecutions. [38] He has not been sentenced.

Webb-Washington was sentenced to one year and one day in prison for conspiracy to commit extortion under the color of official right for accepting $15,000 in bribes from informant Dwek. [39] She is free on bail awaiting the prosecutors' decision.

Pleaded guilty, not yet sentenced

Cheatam pleaded guilty and was a prosecution witness in the trial against Smith. He has not yet been sentenced. [40]

Khalil pleaded guilty and was fired by the City of Jersey City immediately following their guilty pleas. He has been permanently barred from public sector employment [41] but no sentencing has been announced.

Ron Manzo pleaded guilty in May 2011 to conspiring to bribe then-Mayor Dennis Elwell on Dweck's behalf. [42]

On December 3, Ocean County Democratic Party executive director Alfonso L. Santoro, who had not been previously charged, pleaded guilty in a federal court to accepting cash payments from Dwek in exchange for promising to introduce him to public officials, including then-Assemblyman Van Pelt. [43]

Tabbachino was found guilty of bribery extortion in 2010 and pleaded guilty in 2011 to separate charges of laundering $125,000 for Dweck in exchange for a 10% cut. He will be sentenced in August 2011. [44] [45]

Jersey City Housing Inspector John Guarini admitted that he accepted $30,000 in cash bribes from Dweck. He was indicted on one count of conspiracy to obstruct commerce by extortion under color of official right, four counts of attempted obstruction of commerce by extortion, and four counts of bribery. Initially he had pleaded not guilty, but those charges were dropped when he pleaded down to tax evasion. He is awaiting sentencing. [46]

Not charged

As part of the FBI sweep, the home and office of New Jersey Commissioner of the Department of Community Affairs Joseph Doria were raided but he was not charged. His resignation was announced by Governor Jon Corzine. [47]

Bribery charges against Richard Greene, a Hudson County purchasing agent, were dropped. He later testified against his former employer, Assemblyman L. Harvey Smith, who was acquitted. [48]

See also

Related Research Articles

Mims Hackett is an American Democratic Party politician, who served in the New Jersey General Assembly from 2002 to 2007, where he represented the 27th Legislative District, which covers the western portion of Essex County.

Anthony Chiappone is an American Democratic Party politician who served in the New Jersey General Assembly, where he represented the 31st Legislative District from 2004 to 2006 and again from 2008 until his resignation in 2010.

Louis Manzo is an American Democratic Party politician who served in the New Jersey General Assembly from 2004 to 2008, where he represented the 31st legislative district, and who ran unsuccessfully for Mayor of Jersey City, New Jersey.

Joseph Vas is an American Democratic Party politician, who has served in the New Jersey General Assembly from 2004 to 2010, where he represented the 19th Legislative District. He did not seek re-election to the assembly in 2009. He also served as Mayor of Perth Amboy, New Jersey from 1990 to 2008. He was defeated for re-election to a 5th full term by local bank vice president Wilda Diaz in 2008 by a 58% to 42% margin. He was elected Perth Amboy Democratic Chairman in 2008, succeeding his longtime campaign chairman Ray Geneske. Vas resigned as the party chairman in 2009. He was convicted of state corruption charges in 2010 and federal corruption charges in 2011.

L. Harvey Smith is an American Democratic Party politician who has served in the New Jersey General Assembly from January 8, 2008 to January 10, 2010, where he represented the 31st legislative district. He is the former Acting Mayor of Jersey City, New Jersey and previously served in the New Jersey Senate. He did not seek re-election in 2009.

William Frank Boyland Jr. is an American convicted felon and former politician from the state of New York. A Democrat, Boyland represented District 55 (Brooklyn) in the New York State Assembly and was first elected in a 2003 special election. He forfeited his Assembly seat on March 6, 2014 due to his conviction on federal felony charges related to extortion, bribery, and official corruption, and he was sentenced to 14 years in prison.

Sandra Bolden Cunningham Member of the New Jersey Senate

Sandra Bolden Cunningham is an American Democratic Party politician, who has been serving in the New Jersey State Senate since 2007, where she represents the 31st Legislative District. She was sworn into office on November 8, 2007. She is the widow of former Jersey City Mayor Glenn Cunningham, who died in 2004.

Samuel Rivera was an American politician, the Democratic mayor of the U.S. city of Passaic, New Jersey, from 2001 until 2008. Rivera came to national attention on September 6, 2007, when he was indicted and arrested on charges of accepting bribes in exchange for agreeing to direct municipal contracts to an insurance broker acting as a cooperating witness. Rivera pleaded guilty to attempted extortion, stepped down as mayor, and was sentenced to 21 months in prison. He was succeeded in office by Gary Schaer.

The Lucchese crime family's New Jersey faction, also known as the Jersey Crew, is a powerful crew within the Lucchese crime family. The members operate throughout the Northern New Jersey area. During the 1970s into the late 1980s, the crew was led by Anthony Accetturo and his protégé Michael Taccetta. In 1987, Victor Amuso took over the family and began demanding a higher percentage of tribute from the crew. Accetturo refused and a war erupted between the New Jersey members and the New York members. This left brothers Michael and Martin Taccetta in charge of the crew as they tried to have Accetturo and his family murdered. In 1993, Accetturo defected and became a government witness. He helped convict Michael and Martin Taccetta. The crew was most recently controlled by Ralph Perna.

Daniel Van Pelt is an American Republican politician, who served in the New Jersey General Assembly from January 8, 2008, until July 31, 2009, when he resigned after being arrested in connection with Operation Bid Rig on federal corruption charges for allegedly accepting a $10,000 bribe. He was later convicted and sentenced to 41 months in prison. In the Assembly, he represented the 9th legislative district.

Matthew V. Scannapieco served as Mayor of Marlboro, New Jersey from 1992 to 2003. During the course of his career in public service, Scannapieco, a Republican, also served on the Township Council, the Planning Board and the Zoning Board of Adjustment. During his tenure, as mayor he not only sat on the planning board but also appointed all but one of the other members. During this time, Marlboro township experienced a 40 percent increase in housing units in Marlboro, or nearly 3,500 new units. In 2005, in the case of United States of America v. Matthew V. Scannapieco, he was charged with illegally accepting cash payments to influence planning processes and tax evasion.

Peter J. Cammarano III is an American disbarred attorney, former Democratic politician and a convicted felon. He was the 37th Mayor of Hoboken, New Jersey, serving from July 1 until July 31, 2009. Cammarano was arrested by the FBI on corruption charges on July 23, 2009 as part of an international criminal investigation known as Operation Bid Rig; he resigned from office eight days later. He pleaded guilty to extortion in April 2010 and was later sentenced to 24 months in federal prison.

Dennis P. Elwell served as Mayor of Secaucus, New Jersey from 2000 until July 28, 2009, when he resigned after allegations of political corruption.

Anthony R. Suarez is a New Jersey attorney and has served as Mayor of Ridgefield, New Jersey since 2004.

Anthony Impreveduto American politician

Anthony Neil Impreveduto was an American educator and Democratic Party politician who served in the New Jersey General Assembly from 1988 until 2004, when he resigned following a guilty plea to corruption charges that involved use of campaign funds for personal purposes.

Lori Serrano is the former Commissioner and Chairwoman of the Jersey City Housing Authority, the state's second largest public housing authority. She was an unsuccessful City Council candidate on mayoral candidate Louis Manzo's ticket in the 2009 Jersey City municipal election.

Solomon Dwek is an Israeli-American real estate investor who was convicted of felony fraud. He became an FBI informant.

Alex Blanco is an American podiatrist, Democratic Party politician, and a disgraced former mayor of Passaic, New Jersey, United States, He is the first elected and second serving Dominican-American mayor in the United States.

James William Treffinger is an American lawyer and Republican Party politician who served as County Executive of Essex County, New Jersey from 1995 to 2003. He pleaded guilty to federal charges of obstruction of justice and mail fraud in 2003.

References

  1. ↑ NJ.com, Ted Sherman | NJ Advance Media for (2014-10-04). "NJ corruption case finally ends, 5 years after the FBI sting operation that led to 46 arrests". nj. Retrieved 2021-05-20.
  2. 1 2 3 4 Halbfinger, David M. (2009-07-23). "44 Charged by U.S. in New Jersey Corruption Sweep". The New York Times . Retrieved 2009-07-24.
  3. ↑ "Massive N.J. corruption sting targets mayors, legislators, rabbis". The Star-Ledger . 2009-07-23. Retrieved 2009-07-24.
  4. ↑ "Bid Rig III News Release" (PDF). United States Department of Justice. 2009-07-23. Archived from the original (PDF) on 2009-09-20. Retrieved 2009-07-24.
  5. ↑ "A Flashy Contractor Named Duke". The Star-Ledger . 2005-02-24. Retrieved 2009-07-27.
  6. ↑ "Monmouth's 11". The Star-Ledger . 2005-02-23. Retrieved 2009-07-27.
  7. ↑ "FBI's key witness in corruption probe? Solomon Dwek". Home News Tribune . 2009-07-23. Retrieved 2009-07-24.
  8. ↑ "List of those arrested today by FBI". Asbury Park Press . 2009-07-23. Retrieved 2009-07-24.
  9. ↑ Kaulessar, Ricardo (October 6, 2009). "JC Councilman Kenny -- NOT one of original 44 arrested in July -- pleads guilty to taking bribes; resigns from council seat". Hudson Reporter . Retrieved 2013-03-09.
  10. ↑ Guilty Plea to Kidney-Selling Charges - The New York Times, 27 October 2011
  11. ↑ "Officials investigate death of Hudson County political consultant charged in corruption sting". The Star-Ledger . 2009-07-28. Retrieved 2009-07-31.
  12. ↑ Hayes, Melissa, Judge tosses Hobbs Act charges against former Hudson assemblyman Lou Manzo and his brother, The Jersey Journal, May 18, 2010
  13. ↑ Spoto, Mary Ann, U.S. attorney won't appeal dropped charges against ex-Assemblyman Lou Manzo, brother, The Star-Ledger, May 5, 2011
  14. ↑ Conte, Michaelangelo, Hearing on status of five Jersey City political figures in various stages of being prosecuted..., The Jersey Journal, March 17, 2011
  15. ↑ Conte, Michaelangelo (2012-01-26). "Former Jersey City pol says corruption charges against him part of effort to elect Christie governor". The Jersey Journal . Retrieved 2012-02-04.
  16. ↑ "Federal judge dismisses all charges against former Jersey City Assemblyman". The Jersey Journal . 2012-02-17. Retrieved 2012-03-21.
  17. ↑ "Dwek pleads guilty to $50 million bank fraud". Asbury Park Press . October 20, 2009. Retrieved 2009-10-20.[ dead link ]
  18. ↑ "Details emerge on Solomon Dwek, informant in N.J. corruption probe, after guilty pleas". NJ.com. October 20, 2009. Retrieved October 20, 2009.
  19. ↑ Sherman, Ted (October 18, 2012). "FBI informant Solomon Dwek gets 6 years in prison for role in $50M fraud scheme". The Star-Ledger . Retrieved October 23, 2012.
  20. ↑ Spoto, MaryAnn (October 20, 2012). "Another sentence for Solomon Dwek: FBI informant gets four years for cheating bank". The Star-Ledger . Retrieved October 23, 2012.
  21. ↑ Union City developer ensnared in Operation Bid Rig III sentenced to 41 months in prison, The Jersey Journal, March 31, 2011
  22. ↑ Sherman, Ted, Hudson County investor gets 2 years in prison for conspiring to launder nearly $200K, The Star-Ledger, April 14, 2011
  23. ↑ Hayes, Melissa, Union City real estate developer pleads guilty to laundering money as part of last year's massive sting operation, The Jersey Journal, December 2, 2010
  24. ↑ Ray, Joe, Shimon Haber, who pleaded guilty in N.J. corruption bust, gets five months in prison, The Star-Ledger, May 25, 2010
  25. ↑ Sherman, Ted, Former Hoboken Mayor Peter Cammarano gets 2 years in prison for taking bribes, The Star-Ledger, August 5, 2010
  26. ↑ Ryan, Joe (January 23, 2010). "Catrillo draws 18 months in prison, $4,000 fine for role in Jersey City corruption". The Jersey Journal.
  27. ↑ Hayes Melissa, Former Jersey City Councilman Kenny gets one year in prison, The Jersey Journal, May 5, 2010
  28. ↑ Schmidt, Margaret, Former Hoboken Councilman Michael Schaffer sentenced to 18 months in federal prison, The Jersey Journal, January 18, 2011
  29. ↑ [ dead link ]
  30. ↑ Conte, Michaelangelo, Former Jersey City Council President Mariano Vega Jr. sentenced to 30 months in federal prison, The Jersey Journal, April 11, 2011
  31. ↑ "Syrian rabbi nabbed in N.J. corruption sweep receives two years probation". The Star-Ledger . 2011-06-01. Retrieved 2011-06-01.
  32. ↑ Ridgefield voters decide to keep mayor arrested in corruption sting last year The Star-Ledger, August 17, 2010
  33. ↑ Ryan, Joe, Ridgefield Mayor Anthony Suarez found not guilty on federal corruption charges, The Star-Ledger, October 28, 2010
  34. ↑ Spoto, MaryAnn, Ex-Assemblyman L. Harvey Smith is found not guilty of accepting $15K in bribes, The Star-Ledger, December 16, 2010
  35. ↑ Ryan, Joe, Former Jersey City deputy mayor Leona Beldini gets three years in prison, The Star-Ledger, June 13, 2010
  36. ↑ "Ex-Jersey City candidate admits role in extortion". Philadelphia Inquirer . 2009-09-25. Retrieved 2009-09-25.[ dead link ]
  37. ↑ McDonald, Terrance, Seven defendants charged in corruption sweep to meet in court, The Jersey Journal, February 24, 2011
  38. 1 2 Hayes, Melissa (December 3, 2009). "Kin see ex-candidate plead guilty to taking $5G from informant". The Jersey Journal . The Evening Journal Association. Retrieved December 3, 2009.
  39. ↑ Conte, Michaelangelo (March 18, 2010). "La Vern Webb-Washington of Jersey City sentenced to year and a day for taking bribes". Hudson County Now. Advance Publications LLC.
  40. ↑ Hayes, Melissa, Former Jersey City school board member says he didn't rig bids, The Jersey Journal, December 6, 2010
  41. ↑ Conte, Michaelangelo, Corrupt Jersey City official permanently barred from public sector employment in Garden State, The Jersey Journal, March 22, 2011
  42. ↑ Ron Manzo pleads guilty; has implications for former Secaucus Mayor Dennis Elwell Archived 2011-07-24 at the Wayback Machine , Hudson Reporter, May 12, 2011
  43. ↑ "Ocean County Democrats' director admits taking bribes". Asbury Park Press . 2009-12-03. Retrieved 2009-12-05.[ dead link ]
  44. ↑ Judge sets plea date for Vincent Tabbachino, charged in massive 2009 corruption sting, The Star-Ledger, March 17, 2011
  45. ↑ Conte, Michaelangelo, Former Guttenberg councilman Tabbachino pleads guilty to money laundering, The Jersey Journal, April 26, 2011
  46. ↑ Sherman, Ted, Ex-Jersey City housing inspector pleads guilty to taking $20K bribe in 2009 Solomon Dwek corruption sting
  47. ↑ "DCA Commissioner Joe Doria resigns amid New Jersey corruption probe". The Star-Ledger . 2009-07-23. Retrieved 2009-07-24.
  48. ↑ "Former Hudson County employee not rehired after corruption charges are dropped gets $293K settlement". The Star-Ledger . 2011-05-18. Retrieved 2011-05-26.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.