Religious Leaders, Public Officials Among Those Arrested in Federal Probe
By Jean Mikle
Daily Record
July 23, 2009
http://www.dailyrecord.com/article/20090723/UPDATES01/90723006/Raids++NJ+assemblyman+took ++10+000+bribe+for+development++FBI+says
Acting U.S. Attorney Ralph Marra said today that his office has uncovered a massive money-laundering scheme that involved high-ranking religious figures and their associates in the Syrian Jewish and Hasidic communities in Brooklyn, N.Y. and Deal.
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| FBI agents lead arrested suspects from their headquarters as part of a corruption investigation,Thursday, July 23 , 2009, in Newark, N.J. The mayors of three New Jersey cities, two state legislators and several rabbis were among more than 40 people arrested Thursday in a sweeping corruption investigation that began as a probe into an international money laundering ring that trafficked in goods as diverse as human organs and fake designer handbags. Photo by Louis Lanzano |
Among those arrested was Eliahu Ben Haim, of Long Branch, principal rabbi of Congregation Ohel Yaacob in Deal. According to court documents, Haim received bank checks in amounts ranging from tens of thousands of dollars to $160,000 at a time, made payable to a charitable, tax-exempt organization associated with Haim and his synagogue.
To complete the money-laundering cycle, Haim would return the payment of the check in cash to an FBI cooperating witness. Normally Haim would keep 10 percent of the money, according to the U.S. Attorney's Office.
Haim's source of cash for funding the money laundering was, according to court documents, an Israeli in Israel who Haim said he had worked with for years. For a fee, that source would make cash available through other individuals — also charged today — who ran "cash houses" in Brooklyn.
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| From left, Hoboken Mayor Peter J. Cammarano III, Assemblyman Daniel Van Pelt, Secaucus Mayor Denis Elwell. |
Hundreds of thousands of dollars were regularly available from the "cash
houses" for Haim to return to his money laundering clients, including the
government's cooperating witness.
Similar circles of money launderers in Brooklyn and Deal operated separately,
but occasionally co-mingled activities and participants. In most cases, the rings
were led by rabbis who used charitable, non-profit entities connected to their
synagogues to "wash" money that they understood came from criminal activity like
bank fraud, counterfeit goods and other illegal sources, according to court
documents.
The rabbis acted as "crime bosses," Acting U.S. Attorney Ralph Marra said at a press conference this afternoon.
Another money-laundering operation was led by Saul Kassin, the leader of the Syrian Jewish community in the United States, based in Brooklyn, and another by Edmund Nahum of Deal, principal rabbi of Deal Synagogue, according to the U.S. Attorney's Office.
In one secretly recorded conversation, Nahum tells the cooperating witness that
he should launder his money through a number of rabbis. "The more it's spread the
better," Nahum said, according to the criminal complaint.
Since such large amounts of cash were being transacted, the rabbis made
significant sums in fees. Their fees typically ran between five and 10 percent per
transaction, according to the U.S. Attorney.
Sources said the IRS and FBI this morning seized documents from the Deal synagogue and the Ohel Yaacob synagogue on Ocean Avenue in Deal.
Who's Who
Here's a closer look at some of the public officials and others arrested Thursday as part of a major corruption and international money laundering conspiracy probe:
— Peter Cammarano, 32, the newly elected mayor of Hoboken and an election law attorney; accused of accepting $25,000 in cash bribes.
— L. Harvey Smith, 60, a Democratic New Jersey Assemblyman and recent mayoral candidate in Jersey City; accused of taking $15,000 in bribes to help get approvals from high-level state agency officials for building projects.
— Daniel Van Pelt, 44, a Republican New Jersey Assemblyman, Ocean Township mayor and Lumberton Township administrator; accused of accepting a $10,000 bribe.
— Dennis Elwell, 64, Secaucus mayor; accused of taking a $10,000 cash bribe.
— Anthony Suarez, 42, Ridgefield mayor and an attorney; accused of agreeing to accept a $10,000 corrupt cash payment for his legal defense fund.
— Louis Manzo, 54, former Democratic New Jersey Assemblyman and recent unsuccessful Jersey City mayoral candidate; he and his brother, Robert Manzo, are accused of taking $27,500 in corrupt cash payments for use in Louis Manzo's campaign.
— Leona Beldini, 74, Jersey City deputy mayor, real estate agent, and campaign treasurer for an unnamed Jersey City official's re-election campaign; accused of taking $20,000 in campaign contributions, which officials say she divided between donors, who would return the money to the campaign in increments of $2,600 — the maximum individual donation allowed under law.
— Mariano Vega, 59, Jersey City Council President; accused of accepting three $10,000 payments, two of which Vega instructed an intermediary to have broken down and converted into individual contributions for his re-election campaign and the third which he received after his election victory.
— Joseph Cardwell, 68, longtime Democratic consultant and a commissioner of the Jersey City Municipal Utilities Authority; accused of taking $30,000 to assist the cooperating witness with local government officials in Jersey City and other municipalities.
— John Guarini, 59, Jersey City housing inspector who was the Republican candidate for Congress against U.S. Rep. Albio Sires, D-West New York, in 2006.
— Jack M. Shaw, 61, a Hudson County political consultant; accused of taking $10,000 in bribes for himself and proposed that the cooperating witness pay $10,000 in campaign contributions for the re-election campaign of an unnamed Jersey City official.
— Edward Cheatam, 61, the affirmative action officer for Hudson County, a commissioner with the Jersey City Housing Authority and, until May, vice president of the Jersey City Board of Education; accused of taking $15,000.
— Lavern Webb-Washington, 60, an unsuccessful candidate for the Jersey City council; accused of taking $15,000 for her political campaign.
— Lori Serrano, 37, unsuccessful candidate for the Jersey City council and former chair of the Jersey City Housing Authority; accused of taking $10,000 for her political campaign.
— James P. King, 67, an unsuccessful candidate for Jersey City Council, former head of the Jersey City Parking Authority, former chairman of the Jersey City Incinerator Authority and a former Hudson County undersheriff; accused of accepting $10,000 for his political campaign.
— Michael J. Manzo, 53, (no relation to Louis or Robert Manzo), an unsuccessful candidate for Jersey City Council, and a Jersey City arson investigator; accused of agreeing to accept a $5,000 from the cooperating witness for his campaign.
— Joseph Castagna, 53, a health officer with the Jersey City Department of Health and Human Services, and a close associate of Michael Manzo; accused of taking the $5,000 payment from the cooperating witness to pass to Michael Manzo.
— Dennis Jaslow, 46, an investigator for the Hudson County Board of Elections and formerly a state corrections officer; accused of taking $2,500.
— Guy Catrillo, 54, a Jersey City planning aide and member of the mayor's "Action Bureau," and an unsuccessful candidate for the city council; accused of taking $10,000 in campaign cash and another $5,000.
— Jeffrey Williamson, 57, a Lakewood housing inspector, who was also a state Assembly candidate in 2007; accused of taking more than $16,000 in bribes to provide lenient inspections on rental and other properties owned by the cooperating witness in Lakewood.
Here's a closer look at some of the public officials and others arrested Thursday as part of a major corruption and international money laundering conspiracy probe:
— Peter Cammarano, 32, the newly elected mayor of Hoboken and an election law attorney; accused of accepting $25,000 in cash bribes.
— L. Harvey Smith, 60, a Democratic New Jersey Assemblyman and recent mayoral candidate in Jersey City; accused of taking $15,000 in bribes to help get approvals from high-level state agency officials for building projects.
— Daniel Van Pelt, 44, a Republican New Jersey Assemblyman, Ocean Township mayor and Lumberton Township administrator; accused of accepting a $10,000 bribe.
— Dennis Elwell, 64, Secaucus mayor; accused of taking a $10,000 cash bribe.
— Anthony Suarez, 42, Ridgefield mayor and an attorney; accused of agreeing to accept a $10,000 corrupt cash payment for his legal defense fund.
— Louis Manzo, 54, former Democratic New Jersey Assemblyman and recent unsuccessful Jersey City mayoral candidate; he and his brother, Robert Manzo, are accused of taking $27,500 in corrupt cash payments for use in Louis Manzo's campaign.
— Leona Beldini, 74, Jersey City deputy mayor, real estate agent, and campaign treasurer for an unnamed Jersey City official's re-election campaign; accused of taking $20,000 in campaign contributions, which officials say she divided between donors, who would return the money to the campaign in increments of $2,600 — the maximum individual donation allowed under law.
— Mariano Vega, 59, Jersey City Council President; accused of accepting three $10,000 payments, two of which Vega instructed an intermediary to have broken down and converted into individual contributions for his re-election campaign and the third which he received after his election victory.
— Joseph Cardwell, 68, longtime Democratic consultant and a commissioner of the Jersey City Municipal Utilities Authority; accused of taking $30,000 to assist the cooperating witness with local government officials in Jersey City and other municipalities.
— John Guarini, 59, Jersey City housing inspector who was the Republican candidate for Congress against U.S. Rep. Albio Sires, D-West New York, in 2006.
— Jack M. Shaw, 61, a Hudson County political consultant; accused of taking $10,000 in bribes for himself and proposed that the cooperating witness pay $10,000 in campaign contributions for the re-election campaign of an unnamed Jersey City official.
— Edward Cheatam, 61, the affirmative action officer for Hudson County, a commissioner with the Jersey City Housing Authority and, until May, vice president of the Jersey City Board of Education; accused of taking $15,000.
— Lavern Webb-Washington, 60, an unsuccessful candidate for the Jersey City council; accused of taking $15,000 for her political campaign.
— Lori Serrano, 37, unsuccessful candidate for the Jersey City council and former chair of the Jersey City Housing Authority; accused of taking $10,000 for her political campaign.
— James P. King, 67, an unsuccessful candidate for Jersey City Council, former head of the Jersey City Parking Authority, former chairman of the Jersey City Incinerator Authority and a former Hudson County undersheriff; accused of accepting $10,000 for his political campaign.
— Michael J. Manzo, 53, (no relation to Louis or Robert Manzo), an unsuccessful candidate for Jersey City Council, and a Jersey City arson investigator; accused of agreeing to accept a $5,000 from the cooperating witness for his campaign.
— Joseph Castagna, 53, a health officer with the Jersey City Department of Health and Human Services, and a close associate of Michael Manzo; accused of taking the $5,000 payment from the cooperating witness to pass to Michael Manzo.
— Dennis Jaslow, 46, an investigator for the Hudson County Board of Elections and formerly a state corrections officer; accused of taking $2,500.
— Guy Catrillo, 54, a Jersey City planning aide and member of the mayor's "Action Bureau," and an unsuccessful candidate for the city council; accused of taking $10,000 in campaign cash and another $5,000.
— Jeffrey Williamson, 57, a Lakewood housing inspector, who was also a state Assembly candidate in 2007; accused of taking more than $16,000 in bribes to provide lenient inspections on rental and other properties owned by the cooperating witness in Lakewood.
The rabbis were among 44 officials and religious leaders from New Jersey and New York arrested this morning in a series of raids that began at 6 a.m., officials said. A total of 54 search and arrest warrants were executed as part of a wide-sweeping corruption probe , said Weysan Dun, Special Agent In Charge of the FBI in Newark.
The arrests underscore more than ever the pervasive nature of corruption in the
state," Marra said at the press conference.
"Corruption was a way of life" for the public officials, he said. "They existed in an ethics-free zone."
Among those arrested was Assemblyman Daniel M. Van Pelt, R-Ocean, who took $10,000 in bribes to help move a development along in Waretown, according to the FBI.
Van Pelt, the former mayor of Waretown, is accused of taking a $10,000 bribe from a cooperating witness who posed as a developer. The money was for Van Pelt's "assistance" in getting a proposed multi-unit, multi-use development approved in Waretown, according to the FBI complaint filed in U.S. District Court.
The development, however, was never proposed or built.
The money exchanged hands Feb. 21, 2009, at an Atlantic City restaurant, the FBI stated.
At the end of the first meeting on Feb. 11 in Waretown, Van Pelt and the confidential witness discussed joining the "team" and the possibility of Van Pelt accepting $10,000 "to start," according to the complaint. There would be more money from the witness if the real estate development project proceeded successfully, the FBI said.
Van Pelt, 44, was elected to the state Assembly in November 2007 and started serving in January 2008. He is also the administrator of Lumberton Township in Burlington County. He also was mayor of Ocean Township (Waretown) from 1998 until last year. He resigned from the Ocean Township Committee in February.
Also arrested was Jeffrey Williamson, a Lakewood housing inspector who was charged with taking more than $15,000 in bribes over the last two years. He had also been a Democratic candidate for the Assembly from the 30th district in 2007. The 30th district includes parts of Ocean County.
In April 2007, Williamson met with a witness who was cooperating with the FBI
and another Lakewood resident who had worked managing the cooperating witness's properties.
Williamson accepted a $500 bribe from the cooperating witness in an unoccupied women's bathroom of a Lakewood restaurant, according to court documents.
The bribe was given after Williamson gave the witness and the other individual
advice about how to illegally use a residential property in Lakewood as a
commercial office.
In May 2007 Williamson met again with the witness at a Long Branch restaurant
and indicated he had recently performed lenient inspections on 27 of the witness's
properties which would then receive certificates of occupancy.
The FBI said he received a total of $15,000 in bribes over the last two years.
Disgraced real-estate mogul Solomon Dwek, 36, is apparently a key witness in the case.
In court documents, the FBI referred to a "cooperating witness" who was arrested in May 2006 on bank fraud charges. Dwek was charged with bank fraud that month when he tried to cash a bogus $25 million check.
Marra at the press conference that the cooperating witness was the "hub" of the investigation.
Also arrested were Hoboken Mayor Peter Cammarano III, Secaucus Mayor Dennis Elwell and Jersey City Deputy Mayor Leona Beldini, all registered Democrats.
"New Jersey's corruption problem is one of the worst, if not the worst, in the nation," said Ed Kahrer, who heads the FBI's white collar and public corruption investigation division. "Corruption is a cancer that is destroying the core values of this state."
Gov. Jon Corzine reacted to the probe Thursday morning by saying, "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."
Marra said search warrants were also executed this morning at the home of Department of Community Affairs Commissioner Joseph Doria Jr. and his offices at DCA and the Meadowlands Commission, along with the office of the president of St. Peter's College in Englewood Cliffs.
Doria announced his resignation from office this afternoon.
The probe also involves international trafficking in body parts.
The suspects were brought into an FBI building in Newark throughout this morning, with many of them then taken later to the U.S. Marshal's Office at the federal courthouse in Newark in a blue bus.
The suspects are expected to appear in federal court in Newark this afternoon.
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