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Photo by Alexis Tarrazi
Acting U.S. Attorney Ralph Jr. Marra Jr. (left) and federal investigators announced Thursday, July 23 the arrest of 44 individuals allegedly involved in a money-laundering and corruption scheme.
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By Alexis Tarrazi, Susan C. Moeller, John Soltes
NEWARK (July 23, 2009, 2:55 p.m.) —
A sweeping investigation that lasted 10 years and crossed several
counties has ended in the arrest of more than 40 locals in the
Meadowlands area, including the mayors of Secaucus, Hoboken and
Ridgefield. Charges range from international money laundering to public
corruption to conspiring to sell a bodily organ to a transplant recipient.
“Corruption is a cancer that is destroying the core values that is the
foundation of this state,” said FBI special agent Ed Kahrer at a news
conference in front of dozens of media personnel in Newark.
An increasing amount of speculation continues to surround Joseph Doria, who resigned his posts as chairman of the New Jersey Meadowlands Commission and commissioner of the state Department of Community Affairs Thursday, July 23.
Investigators declined to comment on Doria’s alleged involvement, or
whether the well-known politician and former mayor of Bayonne will
similarly be charged.
Brian Aberback, a spokesperson with the
NJMC, said “no comment” to all questions pertaining to Doria and
whether his offices in Lyndhurst were also raided. Governor Jon S.
Corzine said that "any corruption is unacceptable — anywhere, anytime,
by anybody. The scale of corruption we're seeing as this unfolds is
simply outrageous and cannot be tolerated."
Corzine sought and received Doria's resignation.
The widespread case has shaken the foundation of politics in Hudson and Bergen counties, with federal investigators pointing fingers at the “pay-to-play” practices of officials who wield power both on municipal and state levels.
And now with Doria stepping down, South Bergen residents are wondering what will happen to the future of Meadowlands development?
The NJMC has zoning power over portions of 14 municipalities in the local area, including Lyndhurst, North Arlington, Rutherford, Carlstadt and East Rutherford. Additionally with two of the Meadowlands mayors now arrested, the makeup of local politics is swiftly changing.
THE CASE ITSELF
Most of the people charged in the bust were arrested early Thursday, July 23, according to authorities.
A “cooperating witness” provided key help to law enforcement personnel, clearly informing suspects that he needed to hide cash and assets by laundering criminal proceeds of up to $150,000 at a time, according to officials.
A total of $3 million was allegedly laundered in this fashion between June 2007 and June of this year.
The investigation turned toward the public sphere in 2007 in Hudson County when the cooperating witness began to present himself as a developer looking for contracts to build public projects. For example, a Jersey City building inspector allegedly accepted $40,000 in bribes in exchange for smoothing the way for approvals for the cooperating witness’ projects, according to authorities.
The web grew from there — concentrated largely on heavily contested elections for local offices, primarily in Jersey City and Hudson County. Many bribes were allegedly passed through straw donors who wrote checks in their names or the names of their businesses, according to authorities. Other bribes were given directly as cash to candidates.
“Respected figures in positions of public and private trust engaged in conduct behind closed doors that belied the faces of honesty, integrity and rectitude they displayed daily to their respective constituencies,” stated Ralph J. Marra, Jr., acting U.S. Attorney.
The suspects and their respective charges include:
• Peter Cammarano III, the newly elected mayor of Hoboken and an attorney, was charged with accepting $25,000 in cash bribes, including $10,000 Thursday, July 16, from an undercover cooperating witness.
• L. Harvey Smith, a New Jersey assemblyman and recent mayoral candidate in Jersey City, was charged along with an aide of taking $15,000 in bribes to help get approvals from high-level state agency officials for building projects.
• Daniel Van Pelt, a New Jersey assemblyman, charged with accepting a $10,000 bribe.
• Dennis Elwell, mayor of Secaucus, was charged with taking a $10,000 cash bribe.
• Anthony Suarez, mayor of Ridgefield and an attorney, was charged with agreeing to accept a $10,000 corrupt cash payment for his legal defense fund.
• Louis Manzo, the recent unsuccessful challenger in the Jersey City mayoral election and former state assemblyman, and his brother and political adviser Robert Manzo, were both charged with taking $27,500 in corrupt cash payments for use in Louis Manzo's campaign.
• Leona Beldini, the Jersey City deputy mayor and a campaign treasurer, was charged with taking $20,000 in conduit campaign contributions and other self-dealing in her official capacity.
• Eliahu Ben Haim, of Long Branch and the principal rabbi of a synagogue in Deal, was charged with money laundering of proceeds derived from criminal activity.
• Saul Kassin, of Brooklyn, N.Y. and the chief rabbi of a synagogue in his home borough, was charged with money laundering of proceeds derived from criminal activity.
• Edmund Nahum, of Deal and the principal rabbi of a synagogue in his hometown, was charged with money laundering of proceeds derived from criminal activity.
• Mordchai Fish, of Brooklyn, N.Y. and a rabbi at a synagogue in his home borough, was charged with money laundering of proceeds derived from criminal activity. His brother, also a rabbi, was charged as well.
• Levy Izhak Rosenbaum, of Brookyln, N.Y., was charged with brokering the sale of a human kidney for a transplant at a cost of $160,000 to the transplant recipient.
The July 23 arrests were not the first produced by the decades-long investigation. In 2002, Ocean Township Mayor Terrence Weldon admitted to extorting cash from developers to ease the way for their projects. And, in 2005, 11 officials and mayors from Monmouth County were arrested.
Note: Updated July 23, 2009, 2:40 p.m.