Archive for July, 2009

Feds Bust Mayors, others in Big N.J. Sweep

Thursday, July 23rd, 2009
Dozens held over organ selling, corruption, ‘money-laundering conspiracy’
Thurs., July 23, 2009

NEWARK, N.J. – The mayors of two New Jersey cities and a state legislator were arrested Thursday in connection with a major corruption and international money-laundering conspiracy probe. Some of the suspects were also allegedly involved in an illegal human organ-selling ring. Among the approximately 30 people arrested were Hoboken Mayor Peter Cammarano, who took office 23 days ago, Secaucus Mayor Dennis Elwell, state Assemblyman Daniel Van Pelt and Jersey City Deputy Mayor Leona Beldini, according to the U.S. Attorney’s Office in Newark.

An FBI spokesman told NBC affiliate WNBC that the investigation involved a “high-volume international money-laundering conspiracy.” WNBC reported that some of the suspects also were accused of accepting cash payments that were taken to help find organs for sick patients in need of transplants. It was unclear where the body parts might have come from or how many surgeries may have been done. Several rabbis in New York and New Jersey were also taken into custody, federal prosecutors said. Cars were backed up four deep with suspects outside the FBI’s Newark office.

FBI and IRS agents were making the roundups in what is being described as one of the biggest investigations of its kind in state history, according to WNBC. The probe is said to have been launched when money transfers drew the interests of federal investigators. The Newark-based Star-Ledger newspaper reported that federal investigators removed at least three boxes of evidence from a Jewish school. A synagogue in Deal, N.J., was also searched. Newark Mayor Cory Booker, who has fought corruption in New Jersey’ largest city, says it’s “an unbelievable morning so far.” A news conference is scheduled for noon at the U.S. attorney’s office in Newark.

In recent years, New Jersey has seen more than 130 corruption-related convictions of public officials. Earlier this month, prosecutors alleged that Assemblyman Joseph Vas, a former Perth Amboy mayor, engaged in a scheme with a political adviser to funnel money through people who were given funds to make contributions. Vas had previously been accused of using his political influence to further a real estate deal that netted him nearly $300,000.

NBC News

Rattner Leaving Auto Task Force

Monday, July 13th, 2009

WASHINGTON — Steven Rattner, head of the Obama administration’s auto task force, is leaving that post and will be replaced by former steelworkers official Ron Bloom. The administration said Monday that Rattner decided to return to private life and his family in New York City. Rattner won praise for the job he did managing the massive restructuring of General Motors and Chrysler. But his government service came under a cloud with an investigation of an influence peddling scandal back in New York.  Authorities have said that Rattner, an investment banker, was unlikely to face charges in the investigation which involved a giant state pension fund that provides retirement benefits for more than 1 million government employees.

In a statement, Treasury Secretary Timothy Geithner praised Rattner’s work on the auto industry overhaul. “We are extremely grateful to Steve for his efforts in helping strengthen GM and Chrysler, recapitalize GMAC and support the American auto industry,” Geithner said. “I hope that he takes another opportunity to bring his unique skills to government service in the future.”

Rattner will be replaced by Bloom. He assumes leadership of the task force’s activities as the government transitions from day-to-day restructuring to “protecting the substantial investment the American taxpayers have made in GM, Chrysler and GMAC,” Geithner said.