Feds: Money-launder probe snares officials who took bribes

The scheme moved “at least tens of millions of dollars through charitable, nonprofit entities controlled by rabbis in New York and New Jersey,” Marra said.

Among the politicians charged with accepting bribes were newly elected Hoboken Mayor Peter Cammarano III; Assemblyman L. Harvey Smith (D-Jersey City) and his aide, Richard Greene; Assemblyman Daniel Van Pelt (R-Forked River); Secaucus Mayor Dennis Elwell; and Anthony Suarez, Ridgefield attorney.

Several rabbis also face charges of money laundering, Marra said. In most cases, the rabbis used charitable, nonprofit entities connected to their synagogues to “wash” money they knew came from criminal activity, according to the criminal complaints.

The investigation expanded into the public corruption track in July 2007, when a cooperating witness, not named, posed as a developer and owner of a tile business who wanted to build high-rises and other projects, and get public contracts in Hudson County schools. That witness was introduced to a Jersey City inspector, who promised to smooth the way for construction approvals in exchange for a $40,000 bribe, Marra said.

New Jersey’s business community reacted to the news with dismay.

Jim Leonard, senior vice president of government relations at the New Jersey Chamber of Commerce, said the probe is “another black eye for New Jersey.” “At a time when we’re all doing our best to improve the image of the state, to read about the actions of selfish elected officials is extremely disappointing.”

Philip Kirschner, president of the New Jersey Business & Industry Association, said, “If businesses believe that New Jersey officials are corrupt, they will look to do business in another mid-Atlantic state.”

E-mail to mdaks@njbiz.com