Octavia
11-29-2007, 06:22 AM
Indictment of Newark figure reveals new allegations related to FBI sting
Thursday, November 29, 2007 BY JEFF WHELAN AND REGINALD ROBERTS
Star-Ledger Staff
Irvington, the beleaguered town that watched its former mayor carted off to jail four years ago, yesterday became entangled in the statewide FBI bribery sting that snared 11 public officials.
A federal grand jury returned an indictment against one of them yesterday that also implicated an unnamed local official identified as "Irvington Official 1." It alleged the
Irvington official conspired to ac cept a $5,000 bribe from a phony insurance company in exchange for help with getting city contracts.
In September, authorities announced a sweeping corruption scandal that spanned the state during an 18-month undercover FBI probe. The officials were accused of accepting bribes from Coastal Solutions, a phony insurance brokerage firm that turned out to be an FBI front that secretly taped them.
Mayor Wayne Smith told the Philadelphia Inquirer after the September arrests he was offered a bribe, but turned it down. He said he met with a respresentative of Coastal Solutions and discussed city contracts and going to work for the company as a broker, but neither materialized.
"I've been advised there is a federal investigation. And I've been advised not to comment on the investigation," said Smith yesterday, adding that he has retained Jack Arseneault, a prominent criminal defense attorney.
Arseneault did not return a call for comment.
The new allegations regarding Irvington surfaced yesterday in a seven-count indictment against Keith Reid, one of the public officials initially charged in the case. Reid, the former chief of staff to Newark City Council President Mildred Crump, is accused of ac cepting $13,500 in bribes.
"My client still contends -- has always contended -- he has not committed any crime. And we in tend to challenge their proofs at trial," Terry Ridley, Reid's attorney, said yesterday.
The indictment largely mirrors a previous criminal complaint against Reid, but also details his al leged role in Irvington for the first time. Reid has old ties in Irvington: he established a civic association in the 1980s that was incorporated by Smith, incorporation records show.
He also had a consulting business with another person from Irvington, who was referred to but not named in the indictment.
Reid allegedly brokered an Aug. 20 meeting between himself, Coastal representatives and the Irvington official at town hall in Irvington, according to the indictment. They allegedly discussed the city awarding the insurance company business.
After the meeting, an undercover informant approached the Irvington official and attempted to give the official $5,000 in cash
"But it's just a pre-commission. You know, we're this close to moving that thing along. It's only five thousand," the informant said.
"Give it to Keith," the Irvington official allegedly replied.
Reid met with the insurance representative privately in Elizabeth afterward, accepted the $5,000 bribe, and warned the insurer not to try to make direct payments to public officials in the future, according authorities.
"I mean, there just needs to be, you know what I mean, a buffer or something," Reid said, according to the indictment, adding, that these "guys are working for us ... why create an atmosphere where they feel we're trying to get them locked up?"
Reid allegedly told the insurance representative that he received his "marching orders" from the Irvington official and would act as the official's intermediary with the company because he didn't "have an office to lose."
A few weeks later, they met again, according to the indictment. Reid allegedly told the informant that he gave the $5,000 bribe to the Irvington official and another person identified in the indictment only as "Irvington Official 2."
He reassured the informant the brokerage would get business in Irvington, reminding him that he was the "go-through guy" for Irvington Official 1, according to authorities.
Two days later, the investiga tion broke into public view when FBI agents fanned out across the state to make arrests.
Staff writer Ted Sherman contributed to this report.
Thursday, November 29, 2007 BY JEFF WHELAN AND REGINALD ROBERTS
Star-Ledger Staff
Irvington, the beleaguered town that watched its former mayor carted off to jail four years ago, yesterday became entangled in the statewide FBI bribery sting that snared 11 public officials.
A federal grand jury returned an indictment against one of them yesterday that also implicated an unnamed local official identified as "Irvington Official 1." It alleged the
Irvington official conspired to ac cept a $5,000 bribe from a phony insurance company in exchange for help with getting city contracts.
In September, authorities announced a sweeping corruption scandal that spanned the state during an 18-month undercover FBI probe. The officials were accused of accepting bribes from Coastal Solutions, a phony insurance brokerage firm that turned out to be an FBI front that secretly taped them.
Mayor Wayne Smith told the Philadelphia Inquirer after the September arrests he was offered a bribe, but turned it down. He said he met with a respresentative of Coastal Solutions and discussed city contracts and going to work for the company as a broker, but neither materialized.
"I've been advised there is a federal investigation. And I've been advised not to comment on the investigation," said Smith yesterday, adding that he has retained Jack Arseneault, a prominent criminal defense attorney.
Arseneault did not return a call for comment.
The new allegations regarding Irvington surfaced yesterday in a seven-count indictment against Keith Reid, one of the public officials initially charged in the case. Reid, the former chief of staff to Newark City Council President Mildred Crump, is accused of ac cepting $13,500 in bribes.
"My client still contends -- has always contended -- he has not committed any crime. And we in tend to challenge their proofs at trial," Terry Ridley, Reid's attorney, said yesterday.
The indictment largely mirrors a previous criminal complaint against Reid, but also details his al leged role in Irvington for the first time. Reid has old ties in Irvington: he established a civic association in the 1980s that was incorporated by Smith, incorporation records show.
He also had a consulting business with another person from Irvington, who was referred to but not named in the indictment.
Reid allegedly brokered an Aug. 20 meeting between himself, Coastal representatives and the Irvington official at town hall in Irvington, according to the indictment. They allegedly discussed the city awarding the insurance company business.
After the meeting, an undercover informant approached the Irvington official and attempted to give the official $5,000 in cash
"But it's just a pre-commission. You know, we're this close to moving that thing along. It's only five thousand," the informant said.
"Give it to Keith," the Irvington official allegedly replied.
Reid met with the insurance representative privately in Elizabeth afterward, accepted the $5,000 bribe, and warned the insurer not to try to make direct payments to public officials in the future, according authorities.
"I mean, there just needs to be, you know what I mean, a buffer or something," Reid said, according to the indictment, adding, that these "guys are working for us ... why create an atmosphere where they feel we're trying to get them locked up?"
Reid allegedly told the insurance representative that he received his "marching orders" from the Irvington official and would act as the official's intermediary with the company because he didn't "have an office to lose."
A few weeks later, they met again, according to the indictment. Reid allegedly told the informant that he gave the $5,000 bribe to the Irvington official and another person identified in the indictment only as "Irvington Official 2."
He reassured the informant the brokerage would get business in Irvington, reminding him that he was the "go-through guy" for Irvington Official 1, according to authorities.
Two days later, the investiga tion broke into public view when FBI agents fanned out across the state to make arrests.
Staff writer Ted Sherman contributed to this report.