Corruption, New Jersey & Casino Gambling

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State of corruption: N.J.'s most infamous political scandals


By Jonathan D. Salant | NJ Advance Media for NJ.comThe Star-Ledger
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on May 03, 2015 at 10:30 AM, updated May 04, 2015 at 9:50 AM
 

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WASHINGTON — In New Jersey, it seems, politics and corruption go together like bacon and eggs in one of the state's numerous diners.

Prominent politicians from all levels of government have been involved in scandal. Here's a sampling through the years.

ABSCAM

Harrison Williams (D-N.J.) served 23 years in the U.S. Senate until he was
convicted of bribery and conspiracy for agreeing to help a fake Arab sheikh, who actually was engaged in an FBI undercover operation, in exchange for money. The Abscam scandal made it to the big screen in 2013 with the movie "American Hustle." Williams resigned in 1982 before he could be expelled and served two years in prison. Also convicted in the scandal were U.S. Rep. Frank Thompson (D-Trenton) and Camden Mayor Angelo Errichetti.

'I AM A GAY AMERICAN'

Gov. Jim McGreevey resigned as the state's chief executive in August 2004 following revelations that he was engaged in an extramarital relationship with a man he had put on the state payroll despite spotty qualifications. McGreevey, who was married to a woman at the time, came out as a gay man at a press conference at which he announced his sexual orientation. The resignation, which came as McGreevey faced a possible sexual harassment lawsuit from Golan Cipel, an Israeli he had named as his homeland security adviser, ended a tumultuous two-and-a-half-year governorship for the Democrat. It was followed by a nasty and public divorce from his wife, tell-all books and late-night TV jokes.

WANT TO BUY A KIDNEY?

In 2009, federal prosecutors indicted 44 people, on charges of taking bribes to clear the way for building permits, with one person even offering to sell a human kidney. The case, known as Bid Rig III, ensnared three mayors, two legislators and more than 20 candidates for public office, who were charged with taking cash bribes to help green-light questionable development projects. Separately, five Orthodox rabbis from Brooklyn and the Jersey Shore were charged with laundering millions of dollars through various religious charities. Related to the scandal, the state's community affairs commissioner resigned after the FBI searched his home and office. The investigation was begun by then-U.S. Attorney Chris Christie.

'I AM THE LAW'

Frank Hague, Jersey City mayor for three decades, was never convicted of a crime despite several investigations. His control over the city's political machinery was absolute. He retired a multimillionaire on a mayor's salary, allegedly because of the bribes he received.

A FAVOR FOR A FRIEND?

New Jersey's senior U.S. senator, Democrat Robert Menendez, was indicted April 1 on 14 criminal corruption counts for intervening with federal agencies on behalf of a friend and campaign donor, Dr. Salomon Melgen, in exchange for gifts, trips and campaign contributions. Menendez says he's done nothing wrong.

THE TORCH IS LIT

U.S. Sen. Robert Torricelli, nicknamed the Torch, tried to win a second term in the upper chamber after seven terms in the U.S. House, but withdrew two months before the election following allegations that he received illegal campaign contributions from businessman David Chang. Democrats scrambled to replace Torricelli on the ballot with former Sen. Frank Lautenberg, who agreed to run again. Torricelli later was admonished by the Senate Ethics Committee.

BAD GAMBLES

Even before legalized gambling came to Atlantic City, politicians were engaging in bad bets. Enoch "Nucky" Johnson, the subject of the HBO series "Boardwalk Empire," was a political boss who ruled over Atlantic City during the 1920s and developed relationships between city officials and organized crime during Prohibition. He was sentenced to 10 years in prison after being convicted of income tax evasion in 1941. Casino gambling brought a new era of corruption. Mayor Michael Matthews lost his post in 1984, two years after winning his seat, and went to prison after admitting to taking a $10,000 bribe. The mayor who succeeded Matthews, James Usry, pleaded guilty to a violation of campaign finance law after being indicted in 1990 on charges of conspiracy, bribery and official misconduct.

TROUBLES IN NEWARK

The state's largest city has had its share of corruption.
Former U.S. Rep. Hugh Addonizio left the Capitol for Newark City Hall, where he was charged in 1970 with consipracy to receive $1.4 million in kickbacks from city contractors. He was convicted and sentenced to 10 years in prison. Another Newark mayor, Sharpe James, spent 18 months behind bars after his 2008 fraud conviction for illegally steering city land to Tamika Riley, described as his mistresss, who then sold it at a profit. He later was ordered to repay his campaign committee $86,504 because he improperly used those funds to cover his legal expenses. James was succeeded as Newark mayor by Cory Booker, now a U.S. senator.

A CONVICTION IS NO BARRIER TO RE-ELECTION

William Musto, mayor of Union City and a state senator, was convicted of racketeering following a trial in which a former aide, Bob Menendez, was a prosecution witness. The day after being sentenced to prison in 1982, Musto was re-elected mayor. He didn't serve his term but did spend more than three years behind bars.

A CAPITAL OFFENSE

The head of New Jersey's capital city, Trenton Mayor Tony Mack, was found guilty in 2014 of taking bribes from developers in exchange for selling city-owned property at below market value. The payments came just two years after Mack was elected to office.


http://www.nj.com/politics/index.ssf/2015/05/state_of_corruption_njs_most_infamous_political_scandals.html


David Cay Johnston did a stunning job documenting the questionable decisions and coverup of the New Jersey Gambling Commission when Steve Perske was chairman.  

Great book, worth the read, well researched and footnoted:

TEMPLES OF CHANCE How America Inc. Bought Out Murder Inc to Win Control of the Casino Business.