Eight
Others Also Arrested in Separate, Trenton-Based Oxycodone Distribution
Conspiracy
TRENTON, NJ—Trenton Mayor Tony F. Mack;
the mayor’s brother, Ralphiel Mack; and his close associate, Joseph A. “JoJo”
Giorgianni, were arrested by federal agents this morning and charged by
criminal complaint in connection with a scheme to extort payments of more than
$100,000 from others who were purportedly developing a public parking garage,
U.S. Attorney Paul J. Fishman announced.
The complaint charges that over the past
two years, Mack, 46, and his associates negotiated with two individuals who
were cooperating with the U.S. Attorney’s Office and FBI and agreed to expedite
approvals and sell city-owned property at a fraction of its value. Giorgianni
also was charged in a separate complaint along with eight other defendants with
conspiracy to distribute oxycodone pills in the Trenton area.
All 11 defendants are scheduled to make
their initial court appearances this afternoon before U.S. Magistrate Judge Douglas
E. Arpert in Trenton federal court.
“Time and again, we have seen public
officials in New Jersey who are all too willing to sell their power and betray
the public’s trust,” U.S. Attorney Fishman said. “Here, the complaint charges
that Mayor Mack and his co-conspirators were willing to let city property go
for a fraction of its worth. And he allegedly chose as his middleman a
convicted felon who was simultaneously heading a conspiracy to traffic in
prescription medication. Neither selling one’s oath of office or illegally
selling prescription medication is acceptable on the streets of Trenton or
anywhere else in New Jersey.”
“The citizens of New Jersey’s state
capital deserve far better than politicians and cronies who aspire to the Boss
Tweed-style, Tammany Hall politics of patronage, graft, and corruption,” said
Michael Ward, Special Agent in Charge of the FBI’s Newark Division. “Public
service is not an open invitation to enrich one’s self via illegal means. At no
time should elected officials have need for middlemen, ‘buffers,’ and coded
conversations.”
The investigation, which lasted nearly
two years, included the execution of search warrants, court-ordered wiretaps,
and consensually recorded conversations. The extortion conspiracy count with
which the defendants are charged is punishable by a maximum potential penalty
of 20 years in prison and a $250,000 fine.
The
Extortion Conspiracy
According to the complaint filed against
Tony F. Mack; Joseph A. Giorgianni, 63, of Ewing; and Ralphiel Mack, 39, of
Trenton:
As mayor, Mack influenced actions taken
on behalf of the city of Trenton, including matters concerning the disposition
of city-owned property. Giorgianni, a convicted felon and the proprietor of a
Trenton sandwich shop called JoJo’s Steakhouse, is Mayor Mack’s associate.
Ralphiel Mack is Mayor Mack’s brother and was employed by the Trenton Board of
Education as Trenton Central High School’s head football coach.
The Macks, Giorgianni, and others
conspired to corrupt certain functions of Trenton city government in favor of a
purported developer who was seeking to build a parking garage on a city-owned
lot on East State Street. In reality, the developer was cooperating with
federal authorities. During the course of the negotiations, which lasted almost
two years, the defendants agreed to accept more than $119,000 in bribes, of
which $54,000 had been paid at the time of their arrests.
To attempt to evade law enforcement
detection, the defendants employed intermediaries, used code words, and attempted
to limit their discussions of the scheme over the telephone.
Beginning in September 2010, Giorgianni
had several recorded meetings with an individual who was cooperating with law
enforcement (CW-1), during which Giorgianni agreed to serve as an intermediary,
or “buffer,” for cash payments to Mayor Mack in exchange for the mayor’s
support of a parking garage project. During these meetings, Giorgianni
described his intent to promote and facilitate a corrupt system of government
in Trenton. During a September 14, 2010, meeting, Giorgianni stated that he
conducted business in the city of Trenton the way “Boss Tweed” ran “Tammany
Hall” and provided examples of how kickbacks should be received in exchange for
city contracts.
In exchange for cash payments, it was
agreed that Mayor Mack and another, uncharged public official (CC-1) would take
official action favorable to CW-1’s and CW-2’s interests concerning the parking
garage project. Following certain of these payments, Giorgianni would signal to
the mayor that he had received cash by using the code words “Uncle Remus.”
■On October 27, 2011, Giorgianni
accepted a $3,000 corrupt cash payment from CW- 1. Moments later, Giorgianni
sent a text message to Mayor Mack stating, “Uncle remins [sic] landed uncles
remnis [sic] call me.”
■On January 25, 2012, Giorgianni, CC-1,
CW-1, and CW-2 discussed the proposed corrupt transaction and future payments
to Mayor Mack and Giorgianni. During a telephone call the next day, Giorgianni
told the mayor that “Uncle Remus might be stopping by.” During a February 1,
2012, telephone call, Giorgianni reiterated that “Uncle Remus is gonna stop and
visit us, so I wanted to tell you about it.” Mayor Mack replied, “All right.
I’m gonna stop by there to see you.”
■On April 25, 2012, Giorgianni accepted
a $3,000 cash payment from CW-1. During an April 30, 2012 telephone call,
Giorgianni informed Mayor Mack that “Ralphiel said he was going to stop up.
Uncle Remus, ya know, stopped by.”
■On June 8, 2012, Giorgianni accepted a
$25,000 cash payment from CW-2. The next day, while inside JoJo’s Steakhouse
with Giorgianni, CC-1 called the mayor and informed him that “Uncle Remus came
to town today.” The mayor stated: “Yeah?” and laughed. Later in the call, CC-1
repeated, “M–, Mr. Remus came around.” The mayor stated that he would “be
around, I’ll be around today.”
■On June 28, 2012, CC-1 (who began
cooperating with federal law enforcement on June 21, 2012) met with Giorgianni
and delivered to him a $10,000 corrupt cash payment. The meeting between
Giorgianni and CC-1 concluded at approximately 6:17 p.m. At approximately 6:19
p.m., Giorgianni sent Mayor Mack a text message stating, “Uncle remis [sic] is
in town mr bakers.” (In text messages to the mayor, Giorgianni previously
referred to himself as “Mr. Baker.”)
In connection with the $10,000 received
on June 28, 2012, both Mayor Mack and Giorgianni expressed significant concern
to CC-1 that they might be the subjects of a law enforcement investigation
because CC-1 had received that money directly from CW-2 and because CW-2 did
use not Giorgianni as a “buffer” to pass through the money on that occasion. In
a June 28, 2012, recorded meeting during which Giorgianni accepted the $10,000
from CC-1, Giorgianni chastised CC-1 for taking this money directly from CW-2
and not going through Giorgianni, reminding CC-1 that the “ground rules ... put
down by Tony” were that “[n]obody in the administration touches nothing.”
Giorgianni told CC-1 that it was important to use “buffers” to take corrupt
money. “As long as you got buffers, you’re safe. Look, Tony [Mack] knows they
ain’t never gonna break me. Tony seen me do something real serious one day. He
knows I’m not giving nobody up. I don’t give a ****. Jail, that’s my business.
I don’t give a ****. So, Tony’s safe.” Then, referring to employing Ralphiel
Mack as an intermediary to pass money for the benefit of the mayor, Giorgianni
told CC-1, “I even keep Tony safe where I’ll give money to Ralphiel.”
Ralphiel Mack is charged with
participating in the conspiracy by serving as an intermediary to receive
certain corrupt cash payments from Giorgianni on Mayor Mack’s behalf. A July
18, 2012, search of Ralphiel Mack’s house revealed $2,500 in United States
currency bearing the same serial numbers as the bills delivered to Giorgianni
as part of the June 28, 2012 corrupt cash payment.
In exchange for the money, the agreement
contemplated that the mayor would use his influence to get the necessary
approvals for the project. As the conspiracy developed, the mayor and
Giorgianni proposed that the city sell the land for the parking garage to the
developer for a reduced price in exchange for a larger bribe.
Initially, on May 15, 2012, a city of
Trenton official (Trenton Official-1) e-mailed CW-2 letter stating that the
total assessed value for the East State Street lot was $278,000 and that the land
value was $271,600. CW-1 and CW-2 later discussed with Giorgianni that CW-2 and
the project investors would be willing to purchase the East State Street lot
for $200,000 and would be willing to pay a bribe to the mayor in exchange for
the price reduction. Giorgianni, in turn, proposed that the city of Trenton set
the sale price for the East State Street lot at $100,000 and that the $100,000
difference be split among Mayor Mack, Giorgianni, and CC-1. Giorgianni
requested a draft offer letter reflecting the $100,000 purchase price for the
East State Street lot, which CW-2 provided to Giorgianni on May 23, 2012.
Moments after a May 29, 2012 meeting
with Mayor Mack, Giorgianni called CC-1 and stated, “I got the okay from you
know who, right? Tell [Trenton Official-1] to get that letter out, today.” CC-1
then met with Trenton Official-1, whose responsibilities included negotiating
the sale of city-owned property and requested Trenton Official-1 to issue the
$100,000 offer letter. Trenton Official-1, in turn, called Mayor Mack, who,
instead of discussing the matter over the telephone, directed Trenton
Official-1 to meet him in person. Trenton Official-1 then met with the mayor,
who approved the letter offering the East State Street lot to CW-2 and the
investors for $100,000, and the offer letter was issued that day.
The
Drug Distribution Conspiracy
Giorgianni, along with eight other
defendants, also appeared in court today facing oxycodone distribution charges.
(Neither Mayor Mack or Ralphiel Mack were charged with the narcotics
conspiracy.)
According to the complaint:
Oxycodone, the active ingredient in
brand name pills such as Oxycontin, Roxicodone, and Percocet, is a Schedule II
controlled substance—meaning that it has a high potential for abuse.
Giorgianni organized and oversaw a
Trenton-based oxycodone distribution conspiracy responsible for the
distribution of thousands of oxycodone pills. Giorgianni arranged for the sale
of pain pills prescribed to him and facilitated the distribution of oxycodone prescribed
to some of the other defendants and others in this case. JoJo’s Steakhouse, a
sandwich shop that Giorgianni owned and that Mary Manfredo operated, served as
a front for this drug distribution organization and a clearing house where
prescription pain pills were stored, provided to drug dealers for distribution,
and where narcotics proceeds were returned. The investigation uncovered
evidence that Giorgianni and the other coconspirators used a doctor and
pharmacy in Mercer County and another doctor in Essex County to obtain and fill
these prescriptions, which were in large part obtained through fraud.
Numerous conversations were intercepted
on the wiretaps among Giorgianni, other defendants named in the complaint, and
CC-1 prior to the time CC-1 began cooperating with authorities on June 21,
2012. Based on the recorded conversations and information subsequently learned
from CC-1, Anthony Dimatteo, Ralph Dimatteo, Sr. and Giuseppe “Joseph” Scordato
distributed prescription pain medication fraudulently obtained on behalf of the
operation. In one recorded conversation, Scordato described to Giorgianni his
efforts to cause an individual, who according to Scordato had just undergone
open heart surgery, to become addicted to oxycodone by providing this individual
with a free pill as a sample. Giorgianni, in many intercepted telephone calls,
used coded language such as “steaks” to refer to the prescription pain pills.
CC-1 was supplied prescription pain
medication from Eugene Brown, an Atlantic City resident, a portion of which
Mark Bethea would distribute and a portion of which was delivered to Jojo’s
Steakhouse for distribution. Carol Kounitz and Stephanie Lima also fraudulently
obtained prescription pain medication and provided this medication to CC-1 to
be distributed.
Giorgianni, who has a prior felony
conviction, also is charged with unlawfully possessing four firearms which,
along with hundreds of rounds of ammunition, were recovered from his residence
during the execution of a search warrant. Eugene Brown, who also has a prior
felony conviction, is charged with unlawfully possessing a loaded firearm,
found in his residence during the execution of a search warrant.
The drug conspiracy count with which the
defendants are charged is punishable by a maximum potential penalty of 20 years
in prison and a $1 million fine. The felon in possession of firearms counts,
with which Giorgianni and Brown are each charged, is punishable by a maximum
potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special
agents of the FBI under the direction of Special Agent in Charge Michael B.
Ward with the investigation leading to today’s arrests.
The government is represented by
Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S.
Attorney’s Office Special Prosecutions Division in Trenton and Camden,
respectively.
The charges and allegations contained in
the complaints are merely accusations, and the defendants are presumed innocent
unless and until proven guilty.
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