New Jersey Corruption Arrests (VIDEO): Three Mayors Taken Into Custody

TEXT FROM AP (GET UPDATES HERE)... VIDEO FROM NBC NEW YORK

Update: NJ official steps down amid corruption arrests: A member of the New Jersey governor's cabinet has resigned amid a sweeping corruption investigation that has ensnared three mayors, two state legislators and several rabbis.

Speaking Thursday at a news conference, Gov. Jon Corzine said he asked Community Affairs Commissioner Joseph Doria to step down and that Doria agreed to leave office.

Corzine says Doria could not be effective with such a serious investigation going on.

Among the 44 people arrested Thursday were the mayors of Hoboken, Ridgefield and Secaucus.

Dozens Arrested, Including Mayors And Rabbis, In Bizarre New Jersey Corruption Probe.
NEWARK, N.J. (AP) - An investigation into the sale of black-market kidneys and fake Gucci handbags evolved into a sweeping probe of political corruption in New Jersey, ensnaring more than 40 people Thursday, including three mayors, two state lawmakers and several rabbis.

Even for a state with a rich history of graft, the scale of wrongdoing alleged was breathtaking. An FBI official called corruption "a cancer that is destroying the core values of this state."

NBC New York has video showing the suspects with the FBI:

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Federal prosecutors said the investigation initially focused on a money laundering network that operated between Brooklyn, N.Y.; Deal, N.J.; and Israel. The network is alleged to have laundered tens of millions of dollars through Jewish charities controlled by rabbis in New York and New Jersey.

Prosecutors then used an informant in that investigation to help them go after corrupt politicians. The informant -- a real estate developer charged with bank fraud three years ago -- posed as a crooked businessman and paid a string of public officials tens of thousands of dollars in bribes to get approvals for buildings and other projects in New Jersey, authorities said.

Among the 44 people arrested were the mayors of Hoboken, Ridgefield and Secaucus, Jersey City's deputy mayor, and two state assemblymen. A member of the governor's cabinet resigned after agents searched his home, though he was not arrested. All but one of the officeholders are Democrats.

Also, five rabbis from New York and New Jersey -- two of whom lead congregations in Deal -- were accused of laundering millions of dollars, some of it from the sale of counterfeit goods and bankruptcy fraud, authorities said.

In rounding up the defendants, FBI and IRS agents raided a synagogue Thursday morning in Deal, a wealthy oceanfront city of Mediterranean-style mansions, with a large population of Syrian Jews.

Those arrested included Levy Izhak Rosenbaum of Brooklyn, who was charged with conspiring to arrange the sale of an Israeli citizen's kidney for $160,000 for a transplant for the informant's fictitious uncle. Rosenbaum was quoted as saying he had been arranging the sale of kidneys for 10 years.

The politicians arrested were not accused of any involvement in the money laundering or the trafficking in human organs and counterfeit handbags.

The number of arrests was remarkable even for New Jersey, where more than 130 public officials have pleaded guilty or have been convicted of corruption since 2001.

"New Jersey's corruption problem is one of the worst, if not the worst, in the nation," said Ed Kahrer, who heads the FBI's white-collar and public corruption division. "Corruption is a cancer that is destroying the core values of this state."

Gov. Jon Corzine said: "The scale of corruption we're seeing as this unfolds is simply outrageous and cannot be tolerated."

Hours after FBI agents seized documents from his home and office, New Jersey Community Affairs Commissioner Joseph Doria resigned. Federal officials would not say whether he would be charged. Doria did not return calls for comment.

The informant, whose name was not released, was the hinge between the two investigations. He gave prosecutors information about the money laundering operation, and later, at the direction of the FBI, drew on his background to go after politicians.

He found a particularly receptive ally in Hoboken Mayor Peter Cammarano III, according to prosecutors. The 32-year-old Cammarano, who won a runoff election last month, was accused of accepting money from the developer at a Hoboken diner.

"There's the people who were with us, and that's you guys," the complaint quotes Cammarano saying. "There's the people who climbed on board in the runoff. They can get in line. ... And then there are the people who were against us the whole way. ... They get ground into powder."

Cammarano attorney Joseph Hayden said his client is "innocent of these charges. He intends to fight them with all his strength until he proves his innocence."

Cammarano was accused of accepting $25,000 in cash bribes. Secaucus Mayor Dennis Elwell was charged with taking $10,000. Ridgefield Mayor Anthony Suarez was charged with agreeing to accept an illegal $10,000.

Jersey City Deputy Mayor Leona Beldini was charged with conspiracy to commit extortion by taking $20,000 in illegal campaign contributions. State Assemblymen Daniel Van Pelt and L. Harvey Smith were also accused of taking payoffs.

Jersey City Mayor Jerramiah Healy said the charges were "a little shocking."

"I have full faith in Leona," Healy said. "She's a good friend of mine -- was and will be."

Mike Winnick was praying inside the Deal Synagogue when it was raided. He said four FBI agents escorted a rabbi into his office and blocked the doorway. "Everyone was looking at each other, like, `What's going on here?'" Winnick said.

Busloads carrying those arrested were brought to the FBI's Newark office. One agent slowly walked an elderly rabbi into the building as another covered his face with a felt hat.

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Angela Delli Santi and Beth DeFalco in Trenton, Wayne Parry in Deal, Samantha Henry and Victor Epstein in Newark and Larry Neumeister in New York contributed to this story.

Comments

[Modya]

After my initial reaction of being sickened by the New Jersey corruption, and perhaps more so because I’m Jewish, my sober second thought is “could that happen to me?” I don’t think so, but then again, perhaps these high level community leaders thought that their moral fibre was strong enough to withstand temptation and desire.

I am thinking now about whether I have the tools in place to reduce the risk of me falling into unsavoury activity. I run a Website called madrega.com that focuses on character trait development based primarily on the spiritual path of Mussar. We work as a community on different traits via readings, blogs, comments and discussion.

While it’s easy to talk about something online, what about daily practice where the rubber hits the road? For example, with greed, can I stop myself taking a second piece of pie, let alone $10,000? Could I too fall into the patterns of these politicians, even on a smaller scale? Building fences that I can throw up to prevent me from stepping over a line is powerful practice for me. As well, I need to build countervailing positive traits to combat the negative. For example, if instead of feeling anger towards these leaders, can I work on compassion.

I’m thinking about these things. However, when I’m finished thinking, I think it’s critical to turn my thoughts into actions that can become positive habits through repetition, and by doing so, hopefully balance out some of this latest tragedy.

[DC]

Oh brother, their crimes have nothing to do with being Jewish.

It is just a bunch of really corrupt people and those who were involved in illegal organ transport and getting money for it are not only corrupt, but inhumane.

It is sad that they were viewed as leaders, and religious leaders, in the community.

[norkas]

The money laundry is massive. If this was done in NYC the prosecuters would of covered it up. They would of told the FBI to back off.

The Gemological Institue of America or GIA was involved in a multi billion dollar fraud that that included over a $100,000,000 in bribes to payed to several employees in very high postions for better diamond grading reports. This bribery and false diamond grading went on for over 10 years.

This corruption bilked consumers out of billions and caused others in business to close there doors or only make a fraction of business because they could not compete globally.

Those that bribed made in some cases billions of dollars and there profits from bribing for better diamond grades were 30% - 200% and more and this caused the consumers and other business to loose billions of dollars.

The southern district of New York City made sure this crime would not be exposed and the massive money laundry was covered up as well. This effected so mnay honest businessmen i know globally and destroyed many of there lives .

New York City covers up all the big frauds and yes and i hope someone willl look into this information i just wrote because it is a fact. Those that bribed used phony donations for a fee adn used the cash to bribe the GIA other times they were able to get the cash in the streets with NO PROBLEM.

[norkas]

These Rabbis are Palin fans and extreme right wing fans. They themselves have spread and continue to that Barak Obama is not a citizen and he is a Muslim.. They will dance with the devil for a dollar and i am pleased on behalh of all Jews they are busted and pray others are also. I want them to serve 20 years plus each one of them.

I am Jewish and in business and knew about this sort of money laundry and other crimes they commit but New Yor City will never bust big Jewish crimes because our city is like the real third world country who covers up multi billion dollar frauds and destroys lives of the innocent. This is why Bernie Madoff got away with the fraud fo so many years.

Elliot Spitzer went to the federal southern district in NYC to expose AIG years before the collapse and of course they patted him on the back and said they would handle it. Of course another multi billion dollar cover up. They convict the small fishes and always let the big guys go for certain bribes and favors.

I will move for NYC because of the massive frauds i have seen cover up and the lies these lowlifes tell. I love the City with the people but it is enough and NO one will do anything about it.

[MemoryAlpha]

Irony:
One would think the religious leaders of a group who have undergone terrible persecution in the past for blood libel and other nasty forms of anti-Semitism would think twice before getting anywhere near human organ trafficking.

[skialethia]

Send those corrupt, money-laundering rabbis back to the only country they owe allegiance to and then LOCK THE DOOR!

[VivaZapata]

Were the kidneys kosher?

[macohmz]

America's 2-party system is a lost cause. It can't be reformed. Can't be repented of. It's just there. Devouring trust and confidence and crapping out misery and needless suffering on ordinary Americans.

[VivaZapata]

agreed. these guys got caught but probably because someone was pissed off at someone else, not because their political behavior is particularly aberrant. although i like to think of it as a one and a half party system, what we have is a buffer against any true representation for the people.

[Lilith33]

This is the tip of the iceberg.Remember Maddoff and all the "charities" he was part of?Alot of them are scams for moneylaundering.

[blueskybigstar]

Are people aware that China use to and still may collect the organs of its prisoners and of the Falung Gong?

[mark12345]

This is just scummy, party politics aside,these are guys are real snot rags.

[graphicnovel]

Tsk tsk, this from the altruistic Democrats. I'm shocked.

[FirstBiteBooks]

Yes, such amateurs. They should have learned from the republican pros.

[TJCole]

The Federal Attorney's Office in Newark has always been corrupt, so there was nothing to stop the state level corruption, especially under Reagan when he put Sam Alito in charge I know that personally...also the news and media in NJ hates to report scandals reported to them, unless they break huge, like the Star Ledger they refuse to report corruption stories unless an indictment is already handed down...

So there's a breakdown in the oversight checks and balances meant for our system...to function properly...

[Labsaregreat]

So this is the way democrats are going to get single payer

[marsha1951]

hear "I'm innocent" everyday. All I have to say is, "yeah, whatever."

I'm so sick of hearing about people s..c...r..­e..w..i..n­..g other people to make a buck. What is wrong with a society that places money over everything? Greed is a disease.

[ohiomark]

The culture of corruption is alive and well in the New Jersey Democrat Party.

[judiNJ]

....."alive and well in New Jersey.....

[Smaiyna]

And they attribute all corruption to Africa and third world countries. .... I give them credit, they do not let the criminals get away with their crimes.

[fredgladys]

What a great documentary or movie this will make - unless it's Fox of course.