Michael J. Matthews
Encyclopedia
Michael J. Matthews was Mayor of Atlantic City, New Jersey from 1982 to 1984. He was mayor for 21 months before he was recalled and sent to prison for extortion while serving as mayor.
and graduated from Atlantic City High School
. He received a degree in business administration from American University
in 1966.
He was elected to the Linwood, New Jersey
City Council in 1969 and served as Atlantic County Freeholder
from 1972 to 1974. He represented the 2nd legislative district in the New Jersey General Assembly
from 1978 to 1984.
Matthews, whose mother was Italian
, had the support of the city's white ethnic communities. primarily the Jewish, Irish and Italian voters. Matthews, who beat James Ursy, a former school administrator spent a fortune to get elected and then ran up enormous legal bills in a court battle over a recount. In the early 1980s, Leonetti visited Sea Tex Associates several times a
week to see Shapiro, including the periods when Matthews was campaigning for mayor and while he was mayor. Shapiro often talked to Leonetti about Matthews’ campaign.
Shapiro told Leonetti about the campaign expenses that he was paying for, such as advertising, signs, handouts, bands, as well as personal and entertainment costs for Matthews.
Shapiro complained more than once about how much money it was costing him and that Matthews was wasting money on personal expenses. Matthews was elected mayor of Atlantic City a couple of months before Scarfo went to federal prison in August of 1982 on his firearms conviction. Shortly after Matthews was elected, Shapiro told Leonetti that he had funneled about $150,000 into
Matthews’ campaign. Nicky Scarfo and Phil Leonetti had funneled money into Matthews' campaign to get zoning and planning approvals, variances and contracts for Scarfo, Inc. cement contracting company that was run by Phil Leonetti. After moving into Atlantic City, he was elected to the City Commission in 1980, serving as director of Revenue and Finance. After voters changed the form of government to directly elect mayors in 1981, he was elected mayor on June 15, 1982, over James Leroy Usry. Leonetti and Matthews met privately on several occasions, usually at the apartment of Kenny Shapiro, a Philadelphia wheeler-dealer who was speculating in Atlantic City real estate and would be described by the New Jersey SCI as a Scarfo mob 'financier'. Both the New Jersey State Police and the FBI set up surveillance of his Seatex office on Atlantic Avenue, that operated around the block, from Scarf Inc. Frank Lentino, a former Teamster who had become a labor organizer for Bartenders Local 54 and Leonetti's conduit for Matthews, introduced him to James Biaco. Lentino and Biaco worked with Matthews to arrange the sale of a city-owned land zoned for casino development. Matthews was offered a hidden interest in the casino development that would follow his approval. Several different locations were used to meet with Matthews, including Shapiro’s condominium at the Island House on Atlantic Avenue in Margate, New Jersey. Leonetti met with Matthews and others at Shapiro’s condominium at least two different times. On one of those occasions, Leonetti met with Matthews, Shapiro, lawyer Robert Simone and Stanley Branche. Simone was an associate of the Scarfo Family and an attorney who represented Scarfo and Leonetti. Branche was a Philadelphia businessman who was friendly with Simone. Branche was at the meeting to obtain Matthews’
support for a grand prix auto race in Atlantic City. Leonetti was there to get Matthews to push for the sale of some city-owned property that Leonetti thought, at the time, might financially benefit him, Scarfo and members and associates of the Scarfo Family. As it turned out, the city-owned property was related to an FBI investigation that later resulted in the conviction of Matthews and Scarfo Family associate Frank Lentino. On another occasion, Leonetti met with Matthews, Shapiro and a Scarfo Family associate named Arthur “Artie” Pelullo. Leonetti arranged for the meeting because he wanted Pelullo to apologize to Matthews for threatening him. During 1982 or 1983, when the Scarfo Family was involved with Matthews, Pelullo asked Matthews to help him get some type of license so that his limousine company could operate in Atlantic City. When Pelullo was having trouble getting the license, he threatened to kill Matthews, who contacted Leonetti for help. Leonetti set up a meeting at Shapiro’s condominium to settle the matter and made Pelullo apologize to Matthews. Leonetti also met Matthews at the Mars Restaurant, a bar and restaurant owned by Pelullo on South Street in Philadelphia. Voters recalled him in a March 13, 1984, referendum, shortly before he was indicted March 27, 1984, on federal
extortion
charges of using his office to extort bribes from businessmen to benefit himself and organized crime
associates.
In the indictment, released by United States Attorney
W. Hunt Dumont
, Matthews was accused of having close dealings with Nicodemo "Little Nicky" Scarfo
for years, dating to before he was mayor. Scarfo was an American mafioso
member of the U.S. Cosa Nostra and head of the Philadelphia crime family that also controlled organized crime in South Jersey
. Matthews allegedly turned a blind eye to the actions of his primary supporters Scarfo and Phillip "Crazy Phil" Leonetti
, joining them in shaking down others and concentrating on extorting money from city officials. In late 1983, a month or two before Scarfo was released from prison in January of 1984, Leonetti found out that the FBI was investigating the illegal activities between the Scarfo Family and Matthews. Leonetti learned about the investigation a day or two before it made the news. At first, Matthews decided to help the FBI and gave them a confession, but shortly thereafter decided against cooperating
Matthews was charged with the attempted extortion of $668,000 from two businesses set up by the Federal Bureau of Investigation
and with taking $14,000 in bribes from an undercover F.B.I. agent posing as a representative of the companies.
Matthews pleaded guilty to one count of extortion on November 27, 1984, four weeks after the trial started. By admitting to accepting a $10,000 bribe from an FBI agent posing as a businessman who wanted his help in buying a parcel of city-owned land zoned for casinos on favorable terms, government dropped seven other counts.
The dropped counts alleged further extortion, bribery and conspiracy
, including one alleging that Matthews had conspired with organized crime figures to use his office for their benefit in return for campaign financing
.
He was sentenced in 1985 to 15 years in federal prison and was paroled in June 1990.
Frank Lentino, an associate of the Scarfo crime family and business agent for UNITE HERE
Local 54 of the Bartenders and Hotel Workers' Union in Atlantic City and Teamsters Local 158 in Philadelphia even after his retirement, admitted to conspiring with Matthews and reputed organized crime leaders in return for the Mayor's aid in getting a city contract and in favorably purchasing city-owned land zoned for casinos
.
Thomas Russo, then the city's director of the Department of Planning and Development, was acquitted April 13, 1985, on charges of conspiracy, extortion and attempted extortion in connection with allegations he accepted $8,000 in payoffs in connection with proposed land sales.
Usry succeeded Matthews as Mayor after the recall election.
Biography
He was born on January 7, 1934, in Upland, PennsylvaniaUpland, Pennsylvania
Upland is a borough in Delaware County, Pennsylvania, United States. Upland is governed by an elected seven member borough council. The population was 2,977 at the 2000 census.-Geography:Upland is located at ....
and graduated from Atlantic City High School
Atlantic City High School
Atlantic City High School is a four-year public high school located in Atlantic City, in Atlantic County, New Jersey, United States, operating as part of the Atlantic City School District. The current school building opened in 1994 and holds approximately 2,500 students...
. He received a degree in business administration from American University
American University
American University is a private, Methodist, liberal arts, and research university in Washington, D.C. The university was chartered by an Act of Congress on December 5, 1892 as "The American University", which was approved by President Benjamin Harrison on February 24, 1893...
in 1966.
He was elected to the Linwood, New Jersey
Linwood, New Jersey
Linwood is a city in Atlantic County, New Jersey, United States. As of the 2010 United States Census, the city population was 7,092.Linwood was originally incorporated as a borough by an Act of the New Jersey Legislature on February 20, 1889, from portions of Egg Harbor Township, based on the...
City Council in 1969 and served as Atlantic County Freeholder
Freeholder
A freeholder can refer to:* one who is in freehold* one who holds title to real property in Fee simple* an official of county government in the U.S. state of New Jersey...
from 1972 to 1974. He represented the 2nd legislative district in the New Jersey General Assembly
New Jersey General Assembly
The New Jersey General Assembly is the lower house of the New Jersey Legislature.Since the election of 1967 , the Assembly has consisted of 80 members. Two members are elected from each of New Jersey's 40 legislative districts for a term of two years, each representing districts with average...
from 1978 to 1984.
Matthews, whose mother was Italian
Italian people
The Italian people are an ethnic group that share a common Italian culture, ancestry and speak the Italian language as a mother tongue. Within Italy, Italians are defined by citizenship, regardless of ancestry or country of residence , and are distinguished from people...
, had the support of the city's white ethnic communities. primarily the Jewish, Irish and Italian voters. Matthews, who beat James Ursy, a former school administrator spent a fortune to get elected and then ran up enormous legal bills in a court battle over a recount. In the early 1980s, Leonetti visited Sea Tex Associates several times a
week to see Shapiro, including the periods when Matthews was campaigning for mayor and while he was mayor. Shapiro often talked to Leonetti about Matthews’ campaign.
Shapiro told Leonetti about the campaign expenses that he was paying for, such as advertising, signs, handouts, bands, as well as personal and entertainment costs for Matthews.
Shapiro complained more than once about how much money it was costing him and that Matthews was wasting money on personal expenses. Matthews was elected mayor of Atlantic City a couple of months before Scarfo went to federal prison in August of 1982 on his firearms conviction. Shortly after Matthews was elected, Shapiro told Leonetti that he had funneled about $150,000 into
Matthews’ campaign. Nicky Scarfo and Phil Leonetti had funneled money into Matthews' campaign to get zoning and planning approvals, variances and contracts for Scarfo, Inc. cement contracting company that was run by Phil Leonetti. After moving into Atlantic City, he was elected to the City Commission in 1980, serving as director of Revenue and Finance. After voters changed the form of government to directly elect mayors in 1981, he was elected mayor on June 15, 1982, over James Leroy Usry. Leonetti and Matthews met privately on several occasions, usually at the apartment of Kenny Shapiro, a Philadelphia wheeler-dealer who was speculating in Atlantic City real estate and would be described by the New Jersey SCI as a Scarfo mob 'financier'. Both the New Jersey State Police and the FBI set up surveillance of his Seatex office on Atlantic Avenue, that operated around the block, from Scarf Inc. Frank Lentino, a former Teamster who had become a labor organizer for Bartenders Local 54 and Leonetti's conduit for Matthews, introduced him to James Biaco. Lentino and Biaco worked with Matthews to arrange the sale of a city-owned land zoned for casino development. Matthews was offered a hidden interest in the casino development that would follow his approval. Several different locations were used to meet with Matthews, including Shapiro’s condominium at the Island House on Atlantic Avenue in Margate, New Jersey. Leonetti met with Matthews and others at Shapiro’s condominium at least two different times. On one of those occasions, Leonetti met with Matthews, Shapiro, lawyer Robert Simone and Stanley Branche. Simone was an associate of the Scarfo Family and an attorney who represented Scarfo and Leonetti. Branche was a Philadelphia businessman who was friendly with Simone. Branche was at the meeting to obtain Matthews’
support for a grand prix auto race in Atlantic City. Leonetti was there to get Matthews to push for the sale of some city-owned property that Leonetti thought, at the time, might financially benefit him, Scarfo and members and associates of the Scarfo Family. As it turned out, the city-owned property was related to an FBI investigation that later resulted in the conviction of Matthews and Scarfo Family associate Frank Lentino. On another occasion, Leonetti met with Matthews, Shapiro and a Scarfo Family associate named Arthur “Artie” Pelullo. Leonetti arranged for the meeting because he wanted Pelullo to apologize to Matthews for threatening him. During 1982 or 1983, when the Scarfo Family was involved with Matthews, Pelullo asked Matthews to help him get some type of license so that his limousine company could operate in Atlantic City. When Pelullo was having trouble getting the license, he threatened to kill Matthews, who contacted Leonetti for help. Leonetti set up a meeting at Shapiro’s condominium to settle the matter and made Pelullo apologize to Matthews. Leonetti also met Matthews at the Mars Restaurant, a bar and restaurant owned by Pelullo on South Street in Philadelphia. Voters recalled him in a March 13, 1984, referendum, shortly before he was indicted March 27, 1984, on federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
extortion
Extortion
Extortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...
charges of using his office to extort bribes from businessmen to benefit himself and organized crime
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
associates.
In the indictment, released by United States Attorney
United States Attorney
United States Attorneys represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. Attorneys stationed throughout the United States, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands...
W. Hunt Dumont
W. Hunt Dumont
align="right"|Wayne Hunt Dumont is an American lawyer and judge who served as United States Attorney for the District of New Jersey from 1981 to 1985.-Biography:...
, Matthews was accused of having close dealings with Nicodemo "Little Nicky" Scarfo
Nicodemo Scarfo
Nicodemo "Little Nicky" Domenico Scarfo is a member of the American Mafia who eventually became the Boss of the Philadelphia crime family after the death of Angelo Bruno and Phil Testa...
for years, dating to before he was mayor. Scarfo was an American mafioso
Mafioso
Mafioso may refer to:* Mafioso , a 1962 Italian crime comedy film* Mafioso , a member of an Italian mafia clan* Mafioso rap, a hip hop sub-genre...
member of the U.S. Cosa Nostra and head of the Philadelphia crime family that also controlled organized crime in South Jersey
South Jersey
South Jersey comprises the southern portions of the U.S. state of New Jersey between the lower Delaware River and the Atlantic Ocean. The designation is a colloquial one, reflecting not only geographical but perceived cultural differences from the northern part of the state, with no official...
. Matthews allegedly turned a blind eye to the actions of his primary supporters Scarfo and Phillip "Crazy Phil" Leonetti
Phil Leonetti
Philip "Crazy Phil" Leonetti is a Philadelphia gangster who became the underboss of the Scarfo crime family under his uncle, Nicodemo "Little Nicky" Scarfo before becoming a government informant. At the time, he was the highest-ranking member of the American Mafia to break his blood oath and turn...
, joining them in shaking down others and concentrating on extorting money from city officials. In late 1983, a month or two before Scarfo was released from prison in January of 1984, Leonetti found out that the FBI was investigating the illegal activities between the Scarfo Family and Matthews. Leonetti learned about the investigation a day or two before it made the news. At first, Matthews decided to help the FBI and gave them a confession, but shortly thereafter decided against cooperating
Matthews was charged with the attempted extortion of $668,000 from two businesses set up by the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
and with taking $14,000 in bribes from an undercover F.B.I. agent posing as a representative of the companies.
Matthews pleaded guilty to one count of extortion on November 27, 1984, four weeks after the trial started. By admitting to accepting a $10,000 bribe from an FBI agent posing as a businessman who wanted his help in buying a parcel of city-owned land zoned for casinos on favorable terms, government dropped seven other counts.
The dropped counts alleged further extortion, bribery and conspiracy
Conspiracy (crime)
In the criminal law, a conspiracy is an agreement between two or more persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement...
, including one alleging that Matthews had conspired with organized crime figures to use his office for their benefit in return for campaign financing
Campaign finance
Campaign finance refers to all funds that are raised and spent in order to promote candidates, parties or policies in some sort of electoral contest. In modern democracies such funds are not necessarily devoted to election campaigns. Issue campaigns in referendums, party activities and party...
.
He was sentenced in 1985 to 15 years in federal prison and was paroled in June 1990.
Frank Lentino, an associate of the Scarfo crime family and business agent for UNITE HERE
UNITE HERE
UNITE HERE is a labor union in the United States and Canada with more than 265,000 active members The union's members work predominantly in the hotel, food service, laundry, warehouse, and casino gaming industries...
Local 54 of the Bartenders and Hotel Workers' Union in Atlantic City and Teamsters Local 158 in Philadelphia even after his retirement, admitted to conspiring with Matthews and reputed organized crime leaders in return for the Mayor's aid in getting a city contract and in favorably purchasing city-owned land zoned for casinos
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
.
Thomas Russo, then the city's director of the Department of Planning and Development, was acquitted April 13, 1985, on charges of conspiracy, extortion and attempted extortion in connection with allegations he accepted $8,000 in payoffs in connection with proposed land sales.
Usry succeeded Matthews as Mayor after the recall election.