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Operation Heat: Over 30 Alleged Mafia Members and Associates Indicted May 14, 2010

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New Jersey Attorney General Paula T. Dow announced the indictment today of two ruling members of the New York-based Lucchese crime family and 32 other members and associates, including alleged current and former top New Jersey capos Ralph V. Perna and Nicodemo Scarfo Jr., on first-degree charges of racketeering, conspiracy and money laundering.

“Operation Heat” uncovered an international criminal gambling enterprise that transacted billions of dollars in wagers, primarily on sporting events, and relied on extortion and violence to collect debts. The indictment also charges a former New Jersey corrections officer and a high-ranking member of the Nine Trey Gangsters set of the Bloods in an alleged alliance with the Lucchese crime family to smuggle drugs and pre-paid cell phones into East Jersey State Prison.

The indictment charges two members of the three-man ruling panel of the Lucchese crime family, Joseph DiNapoli, 74, of Scarsdale, N.Y., and Matthew Madonna, 74, of Seldon, N.Y. The indictment also charges Ralph V. Perna, 64, of East Hanover, and Nicodemo Scarfo Jr., 44, of Ventnor. Perna allegedly became top capo of the New Jersey faction of the family when Scarfo was deposed in 2007.

A warrant has been issued for Scarfo’s arrest but most of the defendants were initially charged and arrested in Operation Heat in December 2007. However, Scarfo and two other men were charged today for the first time in the ongoing investigation. The other two men are Frank Cetta, 71, of Las Vegas, Nevada, who allegedly ran the gambling operation’s Costa Rican wire room, and Gary P. Medure, 56, of New York, N.Y., a close associate of DiNapoli who allegedly managed gambling “packages,” groups of bettors who regularly gambled through the operation.

Three other men named in the indictment were arrested after the initial arrests but prior to today’s indictment. They are Michael A. Maffucci, 24, of Cedar Grove, N.J., Charles J. Bologna, 57, of Port Chester, N.Y., and Robert V. DeCrescenzo, 35, of Port Chester, N.Y. Each of them allegedly managed or assisted in the management of gambling packages.

Each of the first-degree charges of racketeering, conspiracy and money laundering carries a maximum sentence of 20 years in state prison. In addition to those charges DiNapoli, Madonna and Perna were charged with being leaders of organized crime, a second-degree offense.

Most of the defendants – including DiNapoli, Madonna, Perna, Scarfo, Cetta, Medure, Maffucci, Bologna and DeCrescenzo – were also charged with promoting gambling and possession of gambling records, both third-degree offenses.

It is alleged that DiNapoli and Madonna controlled the crime family’s gambling operations and other criminal activities from New York. Both Perna and Scarfo are alleged to have overseen the Lucchese crime family’s operations in New Jersey.

Also indicted were Perna’s three sons, Joseph M. Perna, 40, of Wyckoff, John G. Perna, 32, of West Caldwell, and Ralph M. Perna, 38, of West Caldwell. The sons, led by Joseph, allegedly managed day-to-day gambling operations under their father’s oversight. Two other men who were indicted, Michael A. Cetta, 43, of Wyckoff, and Martin Tacetta, 59, of East Hanover, the former New Jersey underboss for the family, allegedly exercised their own management control over family gambling operations. Tacetta is currently serving a life sentence in state prison as a result of a Division of Criminal Justice prosecution in the 1990s. Michael Cetta, who is Frank Cetta’s son, has close ties to the Lucchese family through marriage.

Joseph Perna, John Perna, Michael Cetta and three other defendants are charged with extortion and aggravated assault, both second-degree offenses, in connection with alleged threats and attempts to use violence against individuals who owed money or tried to take business away from the gambling operation.

The Division of Criminal Justice has seized or restrained millions of dollars in assets of the defendants alleged to be subject to forfeiture as criminal proceeds, including seven homes, 16 bank accounts, 15 vehicles, over $200,000 in cash, and numerous watches and items of jewelry. The indictment alleges that Joseph M. Perna and his wife, Roseanna Perna, 36, obtained approximately $900,000 in mortgage funds through fraudulent loan applications. The indictment further charges various tax offenses against the couple, as well as Ralph M. Perna, Michael Cetta and Vita Cetta, 41, of Wyckoff.

The investigation uncovered an international criminal gambling enterprise that, according to records reviewed by the Division of Criminal Justice, transacted an estimated $2.2 billion in wagers, primarily on sporting events, during a 15-month period.

The gambling operation involved agents or “package holders,” each of whom brought in bets from a group of gamblers. The enterprise and all of its packages involved hundreds or even thousands of gamblers. Records showed that one high-rolling gambler wagered more than $2 million in a two-month period. Those indicted include package holders as well as individuals who allegedly acted as collectors for the operation, collecting and paying out wins and losses.

The illicit proceeds allegedly were divided by the package holders and the members they worked under, such as the Pernas, Michael Cetta, Tacetta and Medure, who in turn made “tribute” payments to the New York bosses, including DiNapoli and Madonna. It is charged that collection operations at times took the form of threats or acts of violence.

The gambling operation received and processed the wagers using password-protected Web sites and a Costa Rican “wire room” where bets were recorded and results tallied.

The prison smuggling scheme allegedly involved inmate Edwin B. Spears, 36, of Neptune, and a former corrections officer at East Jersey State Prison in Woodbridge, Michael T. Bruinton, 46, of Ringoes. Spears was at East Jersey State Prison at the time of the alleged conduct. Also indicted were Spears’ brother, Dwayne E. Spears, 30, of Neptune, and Kristen A. Gilliam, 27, of Farmingdale. Another defendant, Francine Hightower, 52, of Tinton Falls, pleaded guilty on Feb. 21, 2008, to conspiring to launder money.

It is charged that Edwin Spears, an admitted “five-star general” in the Nine Trey Gangsters set of the Bloods, formed an alliance with Joseph Perna and Michael Cetta to smuggle drugs and cell phones into East Jersey State Prison through Bruinton. The alliance allegedly extended beyond smuggling. In one instance, Joseph Perna allegedly sought assistance from Spears to stop an individual associated with the Bloods from extorting money from a man with ties to the Lucchese family.

It is charged that Perna and Cetta would provide money to Dwayne Spears to acquire contraband including heroin, cocaine, marijuana and pre-paid cell phones. Dwayne Spears allegedly would give the contraband to Bruinton to smuggle into East Jersey State Prison. The drugs and cell phones were allegedly distributed to inmates who had previously placed orders through Edwin Spears. Cell phones are prohibited in prison. It is charged that the purchasers paid by sending money orders or checks to individuals including Hightower and Gilliam, who delivered the proceeds to Cetta to “re-invest” in the smuggling scheme. Samuel A. Juliano, 65, of Glen Ridge, is charged with supplying drugs for the smuggling scheme.

In addition to the first-degree charges of racketeering, conspiracy and money laundering, Bruinton, Edwin Spears, Dwayne Spears, Gilliam, Joseph Perna, Michael Cetta and Juliano are charged for the alleged smuggling operation with conspiracy (2nd degree), official misconduct (2nd degree), bribery (2nd degree), and unlawful possession of a cell phone in prison (3rd degree).

As Operation Heat proceeded it yielded evidence that was pursued by the Manhattan District Attorney’s Office in an investigation that culminated on Oct. 1, 2009 with the indictment of 29 defendants, including DiNapoli, Madonna and other Lucchese crime family members, alleged to have run a criminal enterprise that bribed city building inspectors, among other crimes.

In addition to the defendants already named in this press release, the indictment also charges:

John V. Mangrella, 67, of Clifton;
Alfonso “Tic” Cataldo, 68, of Florham Park;
Antonio “Curly” Russo, 73, of Bloomingdale;
Elliot Porco, 47, of Bronx, N.Y.;
Gianni Iacovo, 34, of Elmwood Park;
James Furfaro Jr., 30, of Parsippany;
John N. Turi, 31, of Clifton;
Michael T. Ramuno III, 36, of Philadelphia;
Robert A. Romano, 31, of Brick;
Ron Scrips, 46, of Staten Island, N.Y.;
Shpetim “Tim” Hani, 33, of North Haledon;
Blerim Ibraimi, 29, of Hawthorne; and
George Maiorano, 65, of Belleville.
The indictment charges the defendants as follows:

Count 1 – Racketeering – First Degree
All Defendants

Count 2 – Leader of Organized Crime – Second Degree
Joseph DiNapoli and Matthew Madonna

Count 3 – Leader of Organized Crime – Second Degree
Ralph V. Perna

Count 4 – Conspiracy – Second Degree
Joseph DiNapoli, Matthew Madonna, Ralph V. Perna, Nicodemo Scarfo Jr., Joseph M. Perna, Michael Cetta, Frank Cetta, John G. Perna, Ralph M. Perna, John Mangrella, Gary Medure, Elliot Porco, Martin Taccetta, Antonio Russo, Alfonso Cataldo, Michael Ramuno III, Ronald Scripps, Gianni Iacovo, Robert Decrescenzo, Charles Bologna, James Furfaro, Robert Romano, John Turi, Michael Maffucci, George Maiorano, Blerim Ibriami, Shpetim Hani, Vita Cetta and Rosanna Perna

Count 5 – Promoting Gambling – Third Degree
Joseph DiNapoli, Matthew Madonna, Ralph V. Perna, Nicodemo Scarfo, Jr., Joseph M. Perna, Michael Cetta, Frank Cetta, John G. Perna, Ralph M. Perna, John Mangrella, Gary Medure, Elliot Porco, Martin Taccetta, Antonio Russo, Alfonso Cataldo, Michael Ramuno III, Ronald Scripps, Gianni Iacovo, Robert Decrescenzo, Charles Bologna, James Furfaro, Robert Romano, John Turi, Michael Maffucci, George Maiorano, Blerim Ibriami, Shpetim Hani, Vita Cetta and Rosanna Perna

Count 6 – Possession of Gambling Records – Third Degree
Joseph DiNapoli, Matthew Madonna, Ralph V. Perna, Nicodemo Scarfo Jr., Joseph M. Perna, Michael Cetta, Frank Cetta, John G. Perna, Ralph M. Perna, John Mangrella, Gary Medure, Elliot Porco, Martin Taccetta, Antonio Russo, Alfonso Cataldo, Michael Ramuno III, Ronald Scripps, Gianni Iacovo, Robert Decrescenzo, Charles Bologna, James Furfaro, Robert Romano, John Turi, Michael Maffucci, George Maiorano, Blerim Ibriami, Shpetim Hani, Vita Cetta and Rosanna Perna

Count 7 – Attempted Theft by Extortion – Second Degree
Joseph M. Perna, John G. Perna, Michael Cetta, Gianni Iacovo, James Furfaro and Robert Romano

Count 8 – Aggravated Assault – Second Degree
Joseph M. Perna, John G. Perna, Michael Cetta, Gianni Iacovo, James Furfaro and Robert Romano

Count 9 – Possession of a Weapon for Unlawful Purpose – Third Degree
John G. Perna and Robert Romano

Count 10 – Theft by Deception – Second Degree
Joseph M. Perna

Count 11 – Falsifying Records – Fourth Degree
Joseph M. Perna

Count 12 – Theft by Deception – Second Degree
Joseph M. Perna and Rosanna Perna

Count 13 – Falsifying Records – Fourth Degree
18 months / $ 10,000
Joseph M. Perna and Rosanna Perna

Count 14 – Failure to File Tax Return – Third Degree
Joseph M. Perna and Rosanna Perna

Count 15 – Failure to Pay Gross Income Tax – Third Degree
Joseph M. Perna and Rosanna Perna

Count 16 – Failure to Pay Gross Income Tax – Third Degree
Ralph M. Perna

Count 17 – Failure to File Tax Return – Third Degree
Michael Cetta and Vita Cetta

Count 18 – Failure to Pay Gross Income Tax – Third Degree
Michael Cetta and Vita Cetta

Count 19 – Conspiracy – Second Degree
Joseph M. Perna, Michael Cetta, Edwin Spears, Samuel A. Juliano, Michael Bruinton, Dwayne Spears and Kristen Gilliam

Count 20 – Official Misconduct – Second Degree
Joseph M. Perna, Michael Cetta, Edwin Spears, Samuel A. Juliano, Michael Bruinton, Dwayne Spears and Kristen Gilliam

Count 21 – Bribery – Second Degree
Joseph M. Perna, Michael Cetta, Edwin Spears, Samuel A. Juliano, Michael Bruinton, Dwayne Spears and Kristen Gilliam

Count 22 – Unlawful Possession of Certain Electronic Devices in Prisons – Third Degree
Joseph M. Perna, Michael Cetta, Edwin Spears, Samuel A. Juliano, Michael Bruinton, Dwayne Spears and Kristen Gilliam

Count 23 – Possession of Oxycodone with Intent to Distribute – Second Degree
Samuel A. Juliano

Count 24 – Possession of Cocaine with Intent to Distribute – Second Degree
Samuel A. Juliano

Count 25 – Possession of Cocaine and Oxycodone – Third Degree
Samuel A. Juliano

Count 26 – Certain Persons Not To Have Weapons – Second Degree
Samuel A. Juliano

Count 27 – Unlawful Possession of a Weapon – Third Degree
Samuel A. Juliano

Count 28 – Unlawful Possession of a Weapon – Third Degree
Samuel A. Juliano

Count 29 – Prohibited Weapon – Third Degree
Samuel A. Juliano

Count 30 – Possession of Weapons During Commission of Certain Crimes – Second Degree
Samuel A. Juliano

Count 31 – Prohibited Weapon – Fourth Degree
Samuel A. Juliano

Count 32 – Prohibited Weapon – Fourth Degree
Samuel A. Juliano

Count 33 – Conspiracy – First Degree
All Defendants

Count 34 – Money Laundering – First Degree
All Defendants

NJ detective accused of exposing himself to girl via webcam May 11, 2010

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Madison, NJ Detective James N. Haspel, of Chatham, was arrested by state police on his way to work Tuesday and charged with second-degree official misconduct, attempting to endanger the welfare of a child, and attempting to transmit obscene materials to a person under 16 years old for allegedly exposing himself via webcam to an undercover detective he believed was a 13-year-old girl and using a computer at police headquarters to communicate with the person he thought was the girl.

The complaint alleges that between December 2009 and May 2010, Haspel transmitted webcam videos of himself with his genitals exposed to a person he believed to be a 13-year-old girl who was actually an undercover detective.  He is charged with official misconduct because he allegedly sent the videos from a hotel in Columbus, Ohio, where he was attending a training conference for the police department, and because he allegedly communicated with the “girl” while on duty at police headquarters using a computer supplied by the borough for official police business.

Story is here.

Third Degree Official Misconduct is Only an Exception April 4, 2010

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In State v. Phelps, 187 N.J. Super. 364, 375 (App. Div. 1983), aff’d, 96 N.J. 500 (1984), the Appellate Divsion held that official misconduct is a crime of the second degree and that, rather than forming a substantive element of the offense, the part of the statute that reads:

“any offense proscribed by this section is a crime of the second degree. If the benefit offered, conferred, agreed to be conferred, solicited, accepted or agreed to be accepted is of the value of $200.00 or less, any offense proscribed by this section is a crime of the third degree”

“carves out an exception” where the benefit obtained or sought to be obtained is of a value of $200 or less. Id. at 373-74. The Phelps Court found that the Legislature intended for courts construing the official misconduct statute to “start from the premise that the offense is of the second degree.” Id. at 375. The carved out exception “is clearly pecuniary in nature” and did not apply to “a benefit not subject to pecuniary measurement.” Ibid.  Applying this same reasoning, the Appellate Division has also affirmed a conviction for second-degree official misconduct of a volunteer firefighter who repeatedly called in false fire alarms in order to experience the joy of responding to them and possibly to give the volunteer fire department enough work to justify its existence, holding that “[b]ecause there was no pecuniary benefit, the misconduct was second degree.” State v. Quezada, 402 N.J. Super. 277, 286 (App. Div. 2008).

Official Misconduct Must Somehow Relate to the Defendant’s Public Office April 4, 2010

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Official Misconduct has become a very popular crime over the last decade.  With NJ’s economy further falling into the abyss, the public will demand that public officials be prosecuted and law enforcement, always ready to make headlines, will look for utilize this statute any chance they get.  With that desire however, comes over reaching.  There have been several cases where the State has charged official misconduct only to have the court throw it out.  

When confronted with an official misconduct charge, a defense lawyer must assume the facts are true (for now) in order to make sure that the charge is proper.

The 2009 case of State v. Kueny is a great example of what happens when the State goes too far and how to analyze these cases.   

N.J.S.A. 2C:30-2 provides: 
A public servant is guilty of official misconduct when, with purpose to obtain a benefit for himself or another or to injure or to deprive another of a benefit: 

 

a. He commits an act relating to his office but constituting an unauthorized exercise of his official functions, knowing that such act is unauthorized or he is committing such act in an unauthorized manner; or

b. He knowingly refrains from performing a duty which is imposed upon him by law or is clearly inherent in the nature of his office.
[N.J.S.A. 2C:30-2.]
Defendant was indicted for, and convicted of, violating N.J.S.A. 2C:30-2b. The three elements required to establish a violation of N.J.S.A. 2C:30-2b are that “(1) the defendant was a public servant; (2) the defendant knowingly refrained from performing a duty which is imposed upon him or her by law or which is clearly inherent in the nature of the office; and (3) the defendant’s purpose in so refraining was to benefit himself or herself or to injure or deprive another of a benefit.” State v. Thompson, 402 N.J. Super. 177, 195-96 (2008) (citing Model Jury Charge (Criminal), “Official Misconduct” (N.J.S.A. 2C:30-2) (Revised 9/11/06)).
Misconduct in office or official misconduct has been defined as “unlawful behavior in relation to official duties by an officer entrusted with the administration of justice or who is in breach of a duty of public concern in a public office.” State v. Mason, 355 N.J. Super. 296, 301�(App. Div. 2002) (citing State v. Winne, 12 N.J. 152, 176 (1953)). The purpose of N.J.S.A. 2C:30-2 is to “prevent the perversion of governmental authority.” State v. Perez, 185 N.J. 204, 206 (2004). Defendant was not indicted or convicted for violating N.J.S.A. 2C:30-2a, which requires an affirmative act. The State claims that the defendant violated N.J.S.A. 2C:30-2b by not returning the victim’s ATM card and by keeping her money.
The indictment alleged that on July 1, 2006, in the City of Ocean City, the defendant, “being a public servant, that is a police officer, and acting with purpose to obtain a benefit to himself and/or deprive another of a benefit, did refrain from performing a duty imposed upon him by law, or clearly inherent in the nature of his office, that is, he knowingly did make an unauthorized ATM withdrawal from the account of [Ms. P.] without her knowledge and/or permission and kept the proceeds from that transaction, namely $100″
 
 
The unauthorized ATM withdrawal is an affirmative act, but it had nothing to do with the “exercise of his official functions.” In any event for present purposes, we focus on the allegation that defendant “kept the proceeds” and failed to return Ms. P.’s $100, an allegation that he failed to take an action required by his official duties.
It is clear that there is sufficient evidence in the record to sustain the first element of N.J.S.A. 2C:30-2b, that the defendant was a public official, and the third element, that the defendant’s purpose in refraining from doing an act was to benefit himself or to injure or deprive another of a benefit. Defendant argues that a breach of official duty was not “charged in the indictment nor was such a breach submitted to the jury.” He further contends the evidence did not support a conviction under the second element (which requires that it be shown that the defendant “refrain from performing a duty which is imposed upon him by law or is clearly inherent in the nature of the office”) and that the State did not demonstrate that he was under any obligation greater than that of an ordinary citizen to return the victim’s $100.

The defendant’s oath as a police officer to defend and obey the laws of New Jersey, in of itself, does not make him strictly liable for official misconduct for all crimes he may commit. The Supreme Court has stated that, although the oath of office “is a necessary condition to assumption of office, of itself it creates no particular duty, transgression of which” would be indictable. See State v. Silverstein, 41 N.J. 203, 205 (1963). Nor was there introduced into evidence any statute, Mount Laurel Police Department standard operating procedure, order, rule or regulation which prescribed that a police officer had a duty to return lost money that is discovered while the officer is off-duty, on vacation or outside of Mount Laurel. In New Jersey “‘the fundamental duty of a policeman . . . is to be on the lookout for infractions of the law and to use due diligence in discovering and reporting them.’” Ballinger v. Del. River Port Auth., 172 N.J. 586, 604 (2002) (quoting City of Asbury Park v. Dep’t of Civil Serv., 17 N.J. 419, 429 (1955) (brackets omitted)). However, as a rule “a governing body can directly exercise its police power only within its jurisdictional boundaries, absent a statute broadening those powers.” State v. Cohen, 73 N.J. 331, 342 (1977). 

The jurisdiction of officers of New Jersey municipal police departments is generally limited to “within the territorial limits” of their municipalities. N.J.S.A. 40A:14-152. An exception to this rule is that a municipal police officer has “full power of arrest for any crime committed in said officer’s presence and committed anywhere within the territorial limits of the State of New Jersey.” N.J.S.A. 40A:14-152.1. See State v. White, 305 N.J. Super. 322, 327 (App. Div. 1997); State v. Montalvo, 280 N.J. Super. 377, 381 (App. Div. 1995); see also Barna v. City of Perth Amboy, 42 F.3d 809, 817 (3d Cir. 1994). 

N.J.S.A. 2C:30-2b reads as it did when the Code of Criminal Justice was first introduced in 1971, with the additional language in the introductory clause regarding the purpose to benefit oneself or deprive another. I Final Report of the New Jersey Law Revision Commission, Report and Penal Code 109 (1971). The Comment to the subsection reads: 

 

Subsection b, the “omission to act” phase of this offense, has reference to a public servant who consciously refrains from performing an official non-discretionary duty, which duty is imposed upon him by law or which is clearly inherent in the nature of his office. In addition, the public servant must know of the existence of such non-discretionary duty to act. Thus, such duty must be either one that is imposed by law, or one that is unmistakably inherent in the nature of the public servant’s office, i.e., the duty to act is so clear that the public servant is on notice as to the standards that he must meet. In other words, the failure to act must be more than a mere breach of good judgment. In the absence of a duty to act, there can be no conviction. 

[II Final Report of the New Jersey Law Revision Commission, Commentary 291 (1971).] 

The proposition that it is an inherent duty of every police officer to obey the law, and therefore police officers are strictly liable under

N.J.S.A. 2C:30-2 for the commission of any crime, is forestalled by precedent. “[N]ot every offense committed by a public official involves official misconduct.” State v. Hinds, 143 N.J. 540, 549 (1996). To be guilty of a violation of N.J.S.A. 2C:30-2, the defendant must be shown to have committed misconduct that is “sufficiently related to the officer’s official status.” Id. at 546. A public servant’s private misconduct cannot be punished as official misconduct; the private misconduct can only be punished to the extent that the same conduct by a private citizen can be punished. Hinds, supra, 143 N.J. at 549; Cannel, New Jersey Criminal Code Annotated, comment 4 on N.J.S.A. 2C:30-2 (1999). 

Stated differently, the misconduct must somehow relate to the wrongdoer’s public office. There must be a relationship between the misconduct and public office of the wrongdoer, and the wrongdoer must rely upon his or her status as a public official to gain a benefit or deprive another. State v. Corso, 355 N.J. Super. 518, 526 (App. Div. 2002) (off duty officer has a duty to arrest persons committing a crime in the officer’s presence; conviction upheld), certif. denied, 175 N.J. 547 (2003). See also State v. Bullock, 136 N.J. 149, 157 (1994) (suspended officer displayed State Police identification card to his victims; conduct sufficiently related to office to constitute misconduct); State v. Mason, supra, 355 N.J. Super. at 305 (dismissal of misconduct count affirmed; defendants were private citizens performing services pursuant to government contracts); Cannel, New Jersey Criminal Code Annotated, comment 4 on N.J.S.A. 2C:30-2 (collecting cases). 

The fraudulent use or theft by the illegal use of another person’s ATM card by a police officer, without more, does not constitute misconduct in office. The defendant in this case simply did not use his status as a police officer to commit the crime of fraudulent use of a credit card. Accordingly, we reverse the indictment for third degree misconduct in office,
N.J.S.A. 2C:30-2b. See State v. Reyes, 50 N.J. 454, 458-59 (1967). 

Ex-Franklin Twp. housing official admits steering contracts to husband’s business February 17, 2010

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April Harbstreeet, who previously administered the Franklin Township Community Development Block Grant Program has entered a guilty plea today in Somerset County Superior Court. She was responsible for qualifying applicants for federal housing assistance and soliciting bids for housing rehabilitation projects.  In 2005, she contracted $113,677 worth of work to her husband’s company, Ronald Patrick Plumbing. After her supervisors told her to stop, her husband Ronald DeSantis,42, continued to win contracts by working under the name of an electrical contractor, and reaped $169,678.78.

Today, both pleaded guilty to multiple offenses, including 13 counts of second-degree official misconduct and third-degree witness tampering. DeSantis also pleaded guilty under a separate indictment to third-degree tax charges, including failure to file income tax returns.

Under the deal Harbstreet will be sentenced to five years in prison. As a condition of the plea, she was remanded to the county jail pending sentence. DeSantis will be sentenced to serve seven years in prison, but he won’t be sentenced until Harbstreet is released, for the benefit of their child. He also agreed to pay back taxes, interest and penalties which equals $23,479.99.

Story is here.

Essex County’s election superintendent charged with official misconduct January 8, 2010

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Carmine Casciano of West Caldwell has been charged with official misconduct.  He is accused of giving unauthorized paid days off to employees who worked on political campaigns. In addition, he is also alleged to have ordered destruction of records related to the scheme. 

Seems like someone flipped.  His attorney needs to act fast to see who is on board and who’s not.  This is an interesting case because he did not profit off of this like most people charged with official misconduct.  The State will need some good witnesses to link all of this together.

Story is here.

Theft of $600,000 worth of quarters leads to charges December 14, 2009

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New Jersey Attorney General Anne Milgram announced that John P. Corea, former director of the Hoboken Parking Utility, was indicted on charges that he conspired to steal more than $600,000 in parking meter revenue that he allegedly split with a Toms River contractor whose company was hired by the City of Hoboken to collect coins from city parking meters.

According to Criminal Justice Director Deborah L. Gramiccioni, Corea, 45, of Hoboken, was indicted today by a state grand jury on charges of conspiracy (1st degree), financial facilitation of criminal activity (money laundering) (1st degree), official misconduct (2nd degree), theft by unlawful taking (2nd degree), and misapplication of government property (2nd degree).

The contractor, Brian A. Petaccio, 49, of Toms River, owner and president of United Textile Fabricators LLC of Toms River, pleaded guilty on Sept. 30 to an accusation charging him with second-degree theft by unlawful taking for stealing more than $1.1 million in coins from Hoboken’s parking meters.

Corea allegedly used his official position to steer three separate no-bid contracts to United Textile Fabricators in November 2005 to collect the coins, count and manage them, and maintain the city’s parking meters. United Textile Fabricators is a coin-operated arcade game manufacturer.

After an audit in 2007 uncovered parking revenue shortfalls, Petaccio and his company returned approximately $575,000 to the city. However, Petaccio admitted in pleading guilty that he conspired with an official of the City of Hoboken – whom he did not name in court but had previously identified to investigators – to divert an additional sum, in excess of $600,000, which was never reported to the city and which the two men split. It is alleged that Corea is the official who conspired with Petaccio and split the money with him.

“Corea used his authority to steer three no-bid contracts to Petaccio, who admitted that he stole more than $1.1 million from the city, including funds in excess of $600,000 that he allegedly split with Corea,” Milgram added.

Under his plea agreement, Petaccio must pay $300,000 in restitution to the city and faces up to seven years in state prison. He must cooperate in the ongoing investigation by the Division of Criminal Justice and the New Jersey State Police.

It is alleged that while Corea was director of the Hoboken Parking Utility, he improperly solicited Petaccio and United Textile Fabricators LLC and subsequently used his official position to assist the company in obtaining the three no-bid contracts. Each contract was for approximately $27,000 per year, just under the relevant statutory threshold at the time of $29,000, above which public bidding would have been required, allowing other companies to compete for the work.

Between June 2005 and April 2008, Corea allegedly conspired with the company to steal and launder more than $600,000 in parking meter revenues, while continuing to use his official position to assist United Textile Fabricators and conceal its illicit activities. The company’s contracts with the city were effectively terminated by April 2008.

The principal business of United Textile Fabricators is the manufacture, sale and leasing of arcade crane games, coin-operated machines with a crane-like claw that the player uses to try to grab a toy. The company installs its arcade machines in businesses throughout New Jersey, Pennsylvania and Delaware. The proceeds from the machines, which are shared with the company’s clients, are collected by company employees and transported to the company’s warehouse in Toms River where they are counted and bagged for deposit into the company’s main operating account at a local bank. The state’s investigation determined that coins from Hoboken’s parking meters were commingled with coins from the company’s arcade machines and deposited in one lump sum into the company’s operating account, concealing the source and ownership of the funds.

In pleading guilty before Superior Court Judge Francis R. Hodgson in Ocean County on Sept. 30, Petaccio admitted that he knowingly withheld from the City of Hoboken approximately $575,000 in parking meter revenues and misappropriated those public funds to pay a variety of personal expenses and business expenses unrelated to the company’s meter collection activities on behalf of the City of Hoboken. The state’s investigation determined that those personal expenses included credit card bills and car payments for a Porsche and a Mercedes. Petaccio and his company ultimately returned these funds to the city in several installments between October and December 2007, following an audit and inquiry by the city’s financial consultants and outside accountants.

However, it is alleged that, in addition to the $575,000 that Petaccio returned the city, he and Corea conspired to steal additional funds exceeding $600,000, which were never reported to the city. The two men allegedly worked out a scheme in which Petaccio reported to Corea the amount of coins collected each day, and Corea would tell him how much to put aside as the “take” to be split between them.

Former municipal construction code official arrested for embezzlement November 7, 2009

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Lisa Hare, the former assistant construction code official in Hamilton Township, NJ has been charged with second degree official misconduct.  She is alleged to have taken money on several occasions between April 2004 and February 2007.   The money was intended for building permits that should have been deposited in township’s bank accounts.

She left the job in 2007 and the financial irregularities were reported to 
police earlier this year. She turned herself in to authorities on Friday.

The timing of this is interesting.  I would like to know more about why she left.  I would want to examine all of her bank records from 2004 to 2007.  Other issues to look into:  any witnesses, were these checks or cash, what kind of records are there and can I get them now instead of later, any employment issues or disputes? 

When it comes to white collar crime, it is either open and shut or its a lot of fun.  Luckily for her, the old official misconduct charge should apply which will cut down on the prison time she would face.  This is because the crime allegedly occurred before the statute was changed.  Hopefully she gets a good attorney.

If you are charged with official misconduct, call me today to discuss your case.

Former Irvington Mayor Michael Steele Pleads Guilty to Taking Kickbacks September 30, 2009

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TRENTON – Attorney General Anne Milgram announced that former Irvington Mayor Michael Steele pleaded guilty today to rigging school district contracts and taking thousands of dollars in kickbacks as business administrator for the Irvington Board of Education.

According to Criminal Justice Director Deborah L. Gramiccioni, Steele, 53, of Easton, Pa., pleaded guilty today before Superior Court Judge Roger F. Mahon in Hunterdon County to charges of second-degree official misconduct and second-degree pattern of official misconduct. The charges were contained in a June 5 state grand jury indictment that stemmed from an investigation by the Division of Criminal Justice Corruption Bureau and the New Jersey State Police Official Corruption Bureau.

In pleading guilty, Steele admitted that he took thousands of dollars in kickbacks on school district contracts. He agreed to pay $120,000 in restitution to the Irvington Board of Education.

Under the plea agreement, the state will recommend that Steele receive a sentence of seven years in state prison – including five years without possibility of parole – on each of the charges, with the sentences to run concurrently. Steele, who retired from the school district in April 2008, will be permanently barred from public employment in New Jersey.

“Mr. Steele admitted that he took thousands of dollars in bribes generated by inflating contract costs,” said Attorney General Milgram. “That money was stolen from state and local taxpayers who pay for this struggling school district, and from students who deserve to see school funding used to improve their education, not to enrich corrupt administrators.”

Deputy Attorney General Erik Daab prosecuted the case and took the plea for the Division of Criminal Justice Corruption Bureau.

The state’s investigation revealed that Steele engaged in two separate bid-rigging schemes between 2003 and 2007 involving two contractors and approximately $1.4 million in contracts. The two contractors pleaded guilty in August 2008, admitting that they provided bribes to Steele in connection with the schemes.

Preston Lewis, 54, of Dingmans Ferry, Pa., and William Hardy, 57, of Margate, Fla., each pleaded guilty to accusations charging them with offering an unlawful benefit to a public servant for official behavior. Each of the contractors was sentenced late last year to three years of probation and a $5,000 fine. Lewis was ordered to perform 250 hours of community service, and Hardy, 150 hours. Both are barred from government contracts in New Jersey for five years.

The investigation was conducted and coordinated by Detective Kiersten Pentony, Detective Robyn Greene, Detective Harry Maronpot Jr., and Deputy Attorney General Daab of the Division of Criminal Justice Corruption Bureau, and Detective Sgt. Geoffrey P. Forker, Detective Sgt. 1st Class Joseph Celli III and Detective Sgt. 1st Class Thomas T. Goletz of the New Jersey State Police Official Corruption Unit. The state Department of Education assisted in the investigation.

“This case began with a tip from a person who was suspicious about the large sums of money that one contractor was receiving from the Irvington Board of Education,” said Director Gramiccioni. “We urge anyone who has information about possible misconduct by public officials to call our confidential tipline 1-866-TIPS-4CJ. Our investigators will thoroughly investigate any leads.”

The investigation revealed that Steele, whose annual salary was $120,000, would purchase maintenance supplies for the district – including cleaning chemicals, asphalt repair compounds and salt for melting snow – from Hardy’s maintenance supplies company, WH Chemical Group in Margate, Florida, and the company would pay Steele a “bonus” of between $5,000 and $20,000 per order. WH Chemical Group received approximately $900,000 in district contracts.

Steele would call Hardy and ask him the quantity of products he needed to buy to get a kickback in a particular amount. Steele would then order supplies in the quantities stated by Hardy, and Hardy would send the kickback to Steele. While WH Chemical Group would provide the agreed upon quantities of supplies to the district, Steele created false purchase orders that inflated the quantities. WH Chemical Company could not match the prices offered by competitors, so Steele made it appear that the company was providing more supplies to beat the other bids.

In the second scheme, Steele rigged bids to award contracts to Lewis, a Lakewood-based contractor who owned Lone Star Consulting, a construction company, and BMG Security, a security camera installation company. Steele rigged bids on at least 29 school contracts involving those companies between January 2003 and December 2007 and inflated the contract prices to build in thousands of dollars in kickbacks for himself.

Steele would contact Lewis about school district projects and instruct him to prepare a cost estimate. Steele would then tell Lewis to inflate the estimate to include a kickback and submit the inflated bid to the school district. Steele or Lewis would prepare two fraudulent competing bids for the project in higher amounts. Because Lewis’s company always had the lowest bid, the Board of Education would award his company the contract. After he completed the work and received a check from the district, Lewis would meet with Steele to provide the kickback in cash.

Ex-payroll clerk indicted for official misconduct September 22, 2009

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Tanis Colelli, Highlands, New Jersey was a payroll clerk for the Atlantic Highlands borough Board of Education.  She is accused of creating an additional payroll account for herself and collecting multiple paychecks from it totaling about $11,500. 

Colelli resigned from her job some time ago after a random audit uncovered the additional payroll account. The school district notified local police of the inconsistencies in the account after a review of the information and interview of school personnel.  As a result, she was charged with second degree official misconduct; third-degree theft by deception, forgery and uttering a forged instrument; and fourth degree falsifying records.

Like all of these cases, I wonder if she has been able to get a good attorney.  I assume she hasn’t.  Some defense attorneys complain about the Monmouth County Prosecutor’s Office but I always work well with them.  If she had a good attorney, this case could have probably been worked out already.  I know because I have done it many times. 

However, (I’ll assume guilt for a second) when people steal money, there is usually a good reason they risk everything.  As a result, they don’t keep money around for an attorney and thus, the case rarely turns out well.  Unless a good attorney can get in there and turn this around, she’ll be in prison.

Story is here.