Operation Bid Rig
Encyclopedia
Operation Bid Rig is an ongoing, 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
since 2002. The investigation has resulted in the indictments of more than 60 public officials and politically connected individuals since its inception. In July 2009, sting operation
s 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.
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.
The investigation snared more than 12 public officials including:
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
, agreed to become a cooperating witness for the FBI, infiltrating a money-laundering network connecting Israel
and Syrian Jewish communities in Brooklyn
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.
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"
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:
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Money laundering
Human organ trafficking
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Political corruption
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for $160,000. 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. She also heard reports that Rosenbaum held donors at gunpoint to ensure they donated their organs. This is the first organ trafficking
case in U.S. history. In October 2011, Rosenbaum plead guilty to three counts of organ trafficking and one count of conspiracy
.
.
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
. Prosecutors have decided not to appeal that decision, and they are now reviewing several cases. Other defendants are currently on trial or awaiting trial.
Former Hoboken Mayor Peter Cammarano III stepped down as mayor and was found guilty on August 5, 2010 and given two years in prison. 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. 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. He is set to be released May 4, 2011.
Schaffer stepped down from the North Hudson Sewerage Authority commissioner and plead guilty to criminal information and extortion charges. He was sentenced in January 2011 to 18 months in prison.
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. 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.
Rabbi Saul J. Kassin, of the Syrian Jewish Congregation Shaare Zion
Synagogue, plead 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.
Smith was found not guilty on December 16, 2010. He had refused to resign despite intense pressure from his own party and did not stand for re-election in 2009.
On January 12, 2010 Jersey City Housing Inspector John Guarini 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. He has pleaded not guilty.
Louis and Ron Manzo and Serrano were cleared of charges that they had violated the federal Hobbs Act
. In May, 2010 an appeals court ruled that they were not covered by the act because they were not public officials. Louis Manzo still faces bribery and mail fraud charges.
Jaslow and King both pleaded guilty in 2009 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. As part of his plea agreement, Manzo agreed to return the money and to cooperate with the government in related prosecutions. 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. She is free on bail awaiting the prosecutors' decision.
In October 2010, Dwek pleaded guilty in federal court in Newark to one count each of money laundering and bank fraud charges amounting to about $50 million dollars. Standing before U.S. District Judge Jose L. Linares, Dwek answered questions on attempting to defraud PNC Bank. He has not been sentenced.
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 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.
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.
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.
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.
were raided but he was not charged. His resignation was announced by Governor Jon Corzine
.
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.
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
conducted 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...
, the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
, and the United States Attorney for the District of New Jersey
United States Attorney for the District of New Jersey
The U.S. Attorney for the District of New Jersey is the chief federal law enforcement officer in New Jersey. Paul J. Fishman was sworn into office as U.S. Attorney on October 14, 2009 after having been nominated by President Barack Obama. He succeeded Ralph J. Marra, who served as Acting U.S....
since 2002. The investigation has resulted in the indictments of more than 60 public officials and politically connected individuals since its inception. In July 2009, sting operation
Sting operation
In law enforcement, a sting operation is a deceptive operation designed to catch a person committing a crime. A typical sting will have a law-enforcement officer or cooperative member of the public play a role as criminal partner or potential victim and go along with a suspect's actions to gather...
s resulted in the arrest of 44 people in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, including 29 public servants and political operatives, and five orthodox rabbis
Orthodox Judaism
Orthodox Judaism , is the approach to Judaism which adheres to the traditional interpretation and application of the laws and ethics of the Torah as legislated in the Talmudic texts by the Sanhedrin and subsequently developed and applied by the later authorities known as the Gaonim, Rishonim, and...
from the Syrian Jewish community. A number of high-level New Jersey elected officials were arrested in the operation, including Jersey City
Jersey City, New Jersey
Jersey City is the seat of Hudson County, New Jersey, United States.Part of the New York metropolitan area, Jersey City lies between the Hudson River and Upper New York Bay across from Lower Manhattan and the Hackensack River and Newark Bay...
Deputy Mayor Leona Beldini, Hoboken
Hoboken, New Jersey
Hoboken is a city in Hudson County, New Jersey, United States. As of the 2010 United States Census, the city's population was 50,005. The city is part of the New York metropolitan area and contains Hoboken Terminal, a major transportation hub for the region...
Mayor Peter Cammarano
Peter Cammarano
Peter J. Cammarano III was the 37th Mayor of Hoboken, New Jersey, serving from July 1, 2009, to July 31, 2009. He was born in Wayne, New Jersey and attended Boston University and Seton Hall University School of Law...
, Secaucus
Secaucus, New Jersey
Secaucus is a town in Hudson County, New Jersey. As of the 2010 United States Census, the town population was 16,264. Located within the New Jersey Meadowlands, it is the most suburban of the county's municipalities, though large parts of the town are dedicated to light manufacturing, retail, and...
Mayor Dennis Elwell
Dennis Elwell (politician)
Dennis P. Elwell served as Mayor of Secaucus, New Jersey from 2000 until July 28, 2009, when he resigned after allegations of political corruption.-Biography:...
, Ridgefield
Ridgefield, New Jersey
There were 4,020 households out of which 32.1% had children under the age of 18 living with them, 59.7% were married couples living together, 9.9% had a female householder with no husband present, and 26.2% were non-families. 23.0% of all households were made up of individuals and 11.8% had someone...
Mayor Anthony R. Suarez
Anthony R. Suarez
Anthony R. Suarez is a New Jersey attorney and has served as Mayor of Ridgefield, New Jersey since 2004.-Biography:Suarez was born in Englewood, New Jersey and was raised in Ridgefield. He graduated from Ridgefield Memorial High School in 1984. He then attended Saint Peter's College in Jersey...
, former Jersey City Housing Authority Commissioner and Chairwoman Lori Serrano
Lori Serrano
Lori Serrano is the former Commissioner and Chairwoman of the Jersey City Housing Authority, the state's second largest public housing authority...
, Jersey City Housing Authority Commissioner Edward Cheatam, Assemblyman L. Harvey Smith
L. Harvey Smith
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...
, Assemblyman Daniel M. Van Pelt, former Assemblyman and unsuccessful mayoral candidate Louis Manzo
Louis Manzo
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.-Biography:...
, and political operatives Joseph Cardwell and Jack Shaw.
Background
Operation Bid Rig originated with investigations of public corruption among New Jersey officials in MonmouthMonmouth County, New Jersey
Monmouth County is a county located in the U.S. state of New Jersey, within the New York metropolitan area. As of the 2010 Census, the population was 630,380, up from 615,301 at the 2000 census. Its county seat is Freehold Borough. The most populous municipality is Middletown Township with...
and Ocean
Ocean County, New Jersey
-Demographics:As of the census of 2000, there were 510,916 people, 200,402 households, and 137,876 families residing in the county. The population density was 803 people per square mile . There were 248,711 housing units at an average density of 151/km²...
counties. The first phase became public in 2002 when former Ocean Township
Ocean Township, Monmouth County, New Jersey
Ocean Township is a township located in east central Monmouth County, New Jersey. As of the 2010 United States Census, the township population was 27,291.Oakhurst and Wanamassa Ocean Township is a township located in east central Monmouth County, New Jersey. As of the 2010 United States Census,...
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.
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.The investigation snared more than 12 public officials including:
- Paul Zambrano, Mayor of West Long Branch, NJ
- John Merla, Mayor of Keyport, NJ
- Paul Coughlin, Mayor of Hazlet, NJ
- Richard Iadanza, Deputy Mayor of Neptune Township, NJ
- John Hamilton, Jr., Councilman, Asbury Park, NJ
- Joseph DeLisa, Councilman, West Long Branch, NJ
- Robert Hyer, Councilman, Keyport, NJ
- Raymond O'Grady, Councilman, Middletown, NJ and director of the Monmouth County, NJ motor pool
- Patsy Townsend, Director of Construction and Code Enforcement, Neptune, NJ
- Joseph McCurnin, Operations Manager for Monmouth County's Division of Transportation
- Thomas Broderick, Assistant Monmouth County Roads Supervisor
- Richard Vuola, commissioner, Marlboro Municipal Utilities Authority, Marlboro, NJ
- Monmouth County Freeholder Harry Larrison Jr. died before his case came before the court.
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 DwekSolomon Dwek
Solomon Dwek of Deal Park, a neighborhood in Ocean Township, New Jersey, United States, is a convicted felon of Sephardic Syrian Jewish descent...
of Ocean Township was arrested on charges of committing $50 million in bank fraud
Bank fraud
Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense...
in May 2006. Dwek, a well-known member of the Syrian Jewish community whose parents founded the Deal Yeshiva
Yeshiva
Yeshiva is a Jewish educational institution that focuses on the study of traditional religious texts, primarily the Talmud and Torah study. Study is usually done through daily shiurim and in study pairs called chavrutas...
, agreed to become a cooperating witness for the FBI, infiltrating a money-laundering network connecting Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
and Syrian Jewish communities in Brooklyn
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
and Deal, New Jersey
Deal, New Jersey
Deal is a borough in Monmouth County, New Jersey, United States. As of the 2010 Census, the borough population was 750.Deal was incorporated as a borough on March 7, 1898, by an act of the New Jersey Legislature, from portions of Ocean Township....
. 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
Congregation Shaare Zion
Congregation Shaare Zion, is an Orthodox Sephardic synagogue located at 2030 Ocean Parkway in Brooklyn, New York. One of the largest Orthodox Jewish congregations in New York, it has an estimated 1,500 worshipers who attend its services Fridays and Saturdays for Shabbat...
in Brooklyn, Eliahu Ben Haim of Congregation Ohel Yaacob in Deal, and Edmond Nahum of the Deal Synagogue.
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
Gucci
The House of Gucci, better known simply as Gucci , is an Italian fashion and leather goods label, part of the Gucci Group, which is owned by French company PPR...
and Prada
Prada
Prada S.p.A. is an Italian fashion label specializing in luxury goods for men and women , founded by Mario Prada.-Foundations:...
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
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, Moshe Altman of Monsey, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, 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"
On July 23, 2009, Acting United States Attorney for the District of New Jersey
United States Attorney for the District of New Jersey
The U.S. Attorney for the District of New Jersey is the chief federal law enforcement officer in New Jersey. Paul J. Fishman was sworn into office as U.S. Attorney on October 14, 2009 after having been nominated by President Barack Obama. He succeeded Ralph J. Marra, who served as Acting U.S....
Ralph J. Marra, Jr.
Ralph J. Marra, Jr.
Ralph J. Marra, Jr. is an American lawyer who served as the Acting United States Attorney for the District of New Jersey. He held this position from the resignation of Chris Christie in December 2008 until the appointment of Paul J. Fishman in October 2009...
announced the arrest of the following 44 people:
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Money laundering
- Eliahu Ben Haim, 58, Long Branch, NJ
- Schmulik Cohen, 35, Brooklyn, NY
- Levi Deutsch, 37, Brooklyn, NY
- Yeshayahu Ehrental, 65, Brooklyn, NY
- Mordchai Fish, 56, Brooklyn, NY
- Yolie Gertner, 30, Brooklyn, NY
- David S. Goldhirsh, 30, Brooklyn, NY
- Shimon Haber, 34, Brooklyn, NY
- Saul Kassin, 87, Brooklyn, NY
- Edmund Nahum, 56, Deal, NJ
- Abe Pollack, 40, Brooklyn, NY
- Lavel Schwartz, 57, Brooklyn, NY
- Binyomin Spira, 28, Brooklyn, NY
- Naftoly Weber, 40, Brooklyn, NY
- Arye Weiss, 34, Brooklyn, NY
Human organ trafficking
- Levy-Izhak Rosenbaum, 58, Brooklyn, NY
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Political corruption
- Moshe Altman, 39, Monsey, NY
- Charlie Ammon, 33, Lakewood, NJ
- Leona Beldini, 74, Jersey City, NJ
- Peter CammaranoPeter CammaranoPeter J. Cammarano III was the 37th Mayor of Hoboken, New Jersey, serving from July 1, 2009, to July 31, 2009. He was born in Wayne, New Jersey and attended Boston University and Seton Hall University School of Law...
, 32, Hoboken, NJ - Joseph Cardwell, 68, Jersey City, NJ
- Joseph Castagna, 53, Jersey City, NJ
- Guy Catrillo, 54, Jersey City, NJ
- Edward Cheatam, 61, Jersey City, NJ
- Dennis ElwellDennis Elwell (politician)Dennis P. Elwell served as Mayor of Secaucus, New Jersey from 2000 until July 28, 2009, when he resigned after allegations of political corruption.-Biography:...
, 64, Secaucus, NJ - Itzak Friedlander, 41, Union City, NJ
- Richard Greene, 45, Jersey City, NJ
- John Guarini, 59, Bayonne, NJ
- Denis Jaslow, 46, Wall, NJ
- Maher A. Khalil, 39, Jersey City, NJ
- James P. "Jimmy" King, 67, Jersey City, NJ
- Louis ManzoLouis ManzoLouis 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.-Biography:...
, 54, Jersey City, NJ - Michael Manzo, 53, Jersey City, NJ
- Ronald Manzo, 65, Bayonne, NJ
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- Michael Schaffer, 58, Hoboken, NJ
- Lori SerranoLori SerranoLori Serrano is the former Commissioner and Chairwoman of the Jersey City Housing Authority, the state's second largest public housing authority...
, 37, Jersey City, NJ - Jack Shaw, 61, Jersey City, NJ
- L. Harvey SmithL. Harvey SmithL. 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...
, 60, Jersey City, NJ - Anthony R. SuarezAnthony R. SuarezAnthony R. Suarez is a New Jersey attorney and has served as Mayor of Ridgefield, New Jersey since 2004.-Biography:Suarez was born in Englewood, New Jersey and was raised in Ridgefield. He graduated from Ridgefield Memorial High School in 1984. He then attended Saint Peter's College in Jersey...
, 42, Ridgefield, NJ - Vincent Tabbachino, 68, Fairview, NJ
- Daniel M. Van Pelt, 44, Waretown, NJ
- Mariano Vega, Jr., 59, Jersey City, NJ
- Lavern Webb-Washington, 60, Jersey City, NJ
- Jeffrey Williamson, 57, Lakewood, NJ
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Organ trafficking
Levy Izhak Rosenbaum of Brooklyn was alleged to have been conspiring to arrange the sale of an Israeli citizen's kidneyKidney
The kidneys, organs with several functions, serve essential regulatory roles in most animals, including vertebrates and some invertebrates. They are essential in the urinary system and also serve homeostatic functions such as the regulation of electrolytes, maintenance of acid–base balance, and...
for $160,000. 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
Nancy Scheper-Hughes
Nancy Scheper-Hughes is a professor of Anthropology and director of the program in Medical Anthropology at the University of California at Berkeley. She is known for her writing on the anthropology of the body, hunger, illness, medicine, psychiatry, madness, social suffering, violence and genocide...
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. She also heard reports that Rosenbaum held donors at gunpoint to ensure they donated their organs. This is the first organ trafficking
Organ trade
Organ trade is the trade involving human organs for transplantation. There is a worldwide shortage of organs available for transplantation, possibly a result of regulations forbidding their trafficking.-Legal organ trade:...
case in U.S. history. In October 2011, Rosenbaum plead guilty to three counts of organ trafficking and one count of 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...
.
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 suicideSuicide
Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...
.
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
Hobbs Act
The Hobbs Act, named after Congressman Sam Hobbs and codified at , is a U.S. federal law that prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce. Section 1951 also proscribes conspiracy to commit robbery or extortion without reference to the conspiracy...
. Prosecutors have decided not to appeal that decision, and they are now reviewing several cases. Other defendants are currently on trial or awaiting trial.
Sentenced
Union City real estate developer Moshe "Michael" Altman was sentenced to 41 months in prison for money laundering through the charity Gmach Shefa Chaim. 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. Shimon Haber, a Brooklyn developer, pleaded guilty to conspiracy charges related to the money laundering and was sentenced to 10 months detention, five in prison and five at home.Former Hoboken Mayor Peter Cammarano III stepped down as mayor and was found guilty on August 5, 2010 and given two years in prison. 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. 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. He is set to be released May 4, 2011.
Schaffer stepped down from the North Hudson Sewerage Authority commissioner and plead guilty to criminal information and extortion charges. He was sentenced in January 2011 to 18 months in prison.
Van Pelt was sentenced with 41 months in prison. He had resigned from the legislature and was fired from his job as Lumberton Township
Lumberton Township, New Jersey
Lumberton Township is a Township in Burlington County, New Jersey, United States. As of the 2000 United States Census, the township population was 10,461....
Administrator on July 25. 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.
Rabbi Saul J. Kassin, of the Syrian Jewish Congregation Shaare Zion
Congregation Shaare Zion
Congregation Shaare Zion, is an Orthodox Sephardic synagogue located at 2030 Ocean Parkway in Brooklyn, New York. One of the largest Orthodox Jewish congregations in New York, it has an estimated 1,500 worshipers who attend its services Fridays and Saturdays for Shabbat...
Synagogue, plead 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.
Found Not Guilty
After refusing to step down, Suarez narrowly survived an August 2010 recall election and was found not guilty on October 28, 2010.Smith was found not guilty on December 16, 2010. He had refused to resign despite intense pressure from his own party and did not stand for re-election in 2009.
Trials Pending
Elwell resigned as Mayor of Secaucus on July 28 and pleaded not guilty to the charges. His trial is scheduled to begin in June 2011.On January 12, 2010 Jersey City Housing Inspector John Guarini 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. He has pleaded not guilty.
Pending Appeal
Beldini stepped down as Deputy mayor and was given three years in prison but is free on bail pending appeal.Louis and Ron Manzo and Serrano were cleared of charges that they had violated the federal Hobbs Act
Hobbs Act
The Hobbs Act, named after Congressman Sam Hobbs and codified at , is a U.S. federal law that prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce. Section 1951 also proscribes conspiracy to commit robbery or extortion without reference to the conspiracy...
. In May, 2010 an appeals court ruled that they were not covered by the act because they were not public officials. Louis Manzo still faces bribery and mail fraud charges.
Jaslow and King both pleaded guilty in 2009 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. As part of his plea agreement, Manzo agreed to return the money and to cooperate with the government in related prosecutions. 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. She is free on bail awaiting the prosecutors' decision.
Pleaded Guilty Not Sentenced
Cheatam pleaded guilty and was a prosecution witness in the trial against Smith. He has not yet been sentenced.In October 2010, Dwek pleaded guilty in federal court in Newark to one count each of money laundering and bank fraud charges amounting to about $50 million dollars. Standing before U.S. District Judge Jose L. Linares, Dwek answered questions on attempting to defraud PNC Bank. He has not been sentenced.
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 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.
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.
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.
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.
Not Charged
As part of the FBI sweep, the home and office of New Jersey Commissioner of the Department of Community Affairs Joseph DoriaJoseph Doria
Joseph V. Doria Jr. is an American Democratic Party politician, who served as Commissioner of the New Jersey Department of Community Affairs in the cabinet of Governor Jon Corzine from 2007 until his resignation in July 2009...
were raided but he was not charged. His resignation was announced by Governor Jon Corzine
Jon Corzine
Jon Stevens Corzine is the former CEO of Goldman Sachs and of MF Global, and a one time American politician, who served as the 54th Governor of New Jersey from 2006 to 2010. A Democrat, Corzine served five years of a six-year U.S. Senate term representing New Jersey before being elected Governor...
.
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.
External links
- Bid Rig III News Release
- Addendum to News Release
- Biographical Information and Ongoing Coverage at the Jersey City Independent
- CounterPunchCounterpunchCounterpunch can refer to:* Counterpunch , a punch in boxing* CounterPunch, a bi-weekly political newsletter* Counterpunch , a type of punch used in traditional typography* Punch-Counterpunch, a Transformers character...
, 7 August 2009, The Kidney Broker and the Money Laundering Rabbis
- Public Corruption Complaints
- Altman Criminal Complaint
- Amon Criminal Complaint
- Shaw, Cheatam & Beldini Criminal Complaint
- Cammarano III & Schaffer Criminal Complaint
- Cardwell Criminal Complaint
- Catrillo Criminal Complaint
- Elwell & Manzo Criminal Complaint
- Friedlander Criminal Complaint
- Guarini Criminal Complaint
- Haber Criminal Complaint
- Manzo, Jaslow & Castagna Criminal Complaint
- Khalil Criminal Complaint
- King Criminal Complaint
- Manzo & Manzo Criminal Complaint
- Serrano Criminal Complaint
- Smith & Greene Criminal Complaint
- Suarez & Tabbachino Criminal Complaint
- Van Pelt Criminal Complaint
- Vega Criminal Complaint
- Washington Criminal Complaint
- Williamson Criminal Complaint
- Money Laundering Complaints
- Ben Haim Criminal Complaint
- Cohen Criminal Complaint
- Deutsch & Spira Criminal Complaint
- Ehrental Criminal Complaint
- Fish, Schwartz, Gertner Criminal Complaint
- Fish, Schwartz, Goldhirsh Criminal Complaint
- Fish, Schwartz, Pollack, Weber Criminal Complaint
- Kassin Criminal Complaint
- Nahum Criminal Complaint
- Weiss Criminal Complaint
- Rosenbaum Criminal Complaint