Council President Mariano Vega, Deputy Mayor Leona Beldini, former mayoral candidates L. Harvey Smith, and brothers Robert and Louis Manzo were arrested along with over 40 individuals in an FBI/IRS sting dubbed “Operation Bid Rig” on July 23rd, 2009.
The investigation also brought down an international money laundering ring and highlights pervasive corruption in New Jersey.
“Politicians willingly put themselves up for sale,” said Acting U.S. Attorney General Ralph Marra at a press conference. “Corruption is a way of life, exploited through giant loopholes. Victims don’t have a chance.”
Beldini is charged with taking $20,000 in campaign contributions using straw donors. Smith, a state assemblyman, is charged with taking $15,000 in bribes in exchange for building project approvals. The Manzo Brothers are accused of taking $27,500 in campaign contribution payoffs.
Authorities shared that Vega allegedly told the informant, “You’re in good hands…like Allstate.”
One Manzo brother allegedly coached an informant regarding investing in exchange for development approval. “He said, ‘don’t use ‘approval’, use ‘opportunity,’” Marra said.
After accepting a $5,000 payoff, Smith told an informant it was a “generous gift” and “I feel like I should pat you down,” Marra said.
“The arrests are truly unprecedented in number, prominence,” said FBI Special Agent Waysun Dun. “Corruption will only end when citizens demand it.”
“Corruption is a cancer,” added FBI Special Agent Ed Kahrer. “There can no longer be a status quo of name changes, but the games are the same,” he said.
Secaucus Mayor Dennis Elwell, Ridgefield Mayor Anthony Suarez and Hoboken Mayor Peter Cammarano were also arrested for taking bribes.
The lone informant Solomon Dwek, who was arrested three years ago after bouncing a $24 million check, cooperated with authorities to snare politicians and religious leaders across New Jersey and to Brooklyn, NY and Israel.
Jersey City officials arrested did not return calls. Vega declined to comment after consulting with his lawyer.