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Inside: AP video coverage / copies of criminal complaints / complete list of those arrested and/or charged / photo gallery of arrests

NEWARK - A broad, three-year federal investigation into international money laundering and New Jersey political corruption led to the arrests of more than 44 people Thursday.

State Assemblyman Daniel M. Van Pelt, R-Ocean, Burlington, Atlantic, was among those arrested. He was accused of accepting $10,000 from an FBI witness posing as a real estate developer who asked for help getting permits for a project in Ocean Township, Ocean County.

"This case is not about religion. It is not about politics," said Weysan Dun, Special Agent In Charge of the FBI in Newark. "It is about crime, corruption, it is about arrogance and a shocking betrayal of the public trust."

Starting at 6 a.m., more than 300 agents with the IRS and FBI raided 54 locations throughout New York and New Jersey, executing search warrants and bank seizures.

The accused included rabbis, the mayors of Hoboken, Secaucus and Ridgefield, a host of Jersey City political figures and two members of the state General Assembly.

Joseph Doria, commissioner of the state Department of Community Affairs, was not charged but resigned after his home and office were raided. Doria, 63, had served as the Democratic mayor of Bayonne for nine years and also represented Hudson County in the state Senate. Before becoming a senator in 2004, he served 12 terms as an assemblyman.

Beyond money laundering and corrupt land deals, Thursday's arrests included Levy Izhak Rosenbaum, of Brooklyn, N.Y., who for more than a decade allegedly sold human kidneys for more than a decade.

Acting U.S. Attorney Ralph J. Marra said Rosenbaum would typically pay $10,000 to a financially stressed person, then turn around and sell the organ for $160,000. He allegedly arranged a sale to a relative of the main cooperating witness.

Federal officials said a single cooperating witness, whom they described as a businessman and real estate developer, helped break up a money laundering ring run by Syrian Jewish rabbis in Israel, Brooklyn, N.Y., and Deal, Monmouth County, that laundered $3 million between June 2007 and this month.

Published reports identified the cooperating witness as Solomon Dwek, a 36-year-old real estate developer charged with federal bank fraud in 2006.

From there, the investigation veered into public corruption in July 2007, concentrating in Jersey City and other Hudson County officials.

That was when they allegedly ensared Van Pelt, a freshman lawmaker who resigned the seat he held for more than a decade on the Ocean Township committee in February to concentrate on his assembly re-election. He was accused of taking a $10,000 cash bribe.

N.J. Gov. Jon S. Corzine said during a 2 p.m. press conference that he'd asked for and gotten Doria's resignation, saying it was impossible for him to continue serving the state while under suspicion. He dismissed any consideration that the arrests had political motivation.

Anne Milgram, the state's attorney general, said she would see to it that any state official who is convicted of a crime would lose their pension, in accordance with a recently enacted law.

In a statement, Republican gubernatorial candidate Chris Christie, who formerly headed the state's U.S. Attorneys Office, said it was a bad day for state residents who are again disappointed by public officials, but everyone should feel gratified by the officials with the US Attorneys office, the FBI and IRS.

The three-year investigation began with a probe into the sale of black-market kidneys and fake Gucci handbags.

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."

Federal prosecutors said the investigation initially focused on a money laundering network that 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, who published reports say is Solomon Dwek, 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.

Others arrested included building and fire inspectors, city planning officials and utilities officials, all of them accused of using their positions to further the corruption.

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 include 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."

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.

Authorities did not identify the informant, described in court papers as a person "charged in a federal criminal complaint with bank fraud in or about May 2006." But the date matches up with an investigation that led to charges against Solomon Dwek, the son of a Deal rabbi.

The younger Dwek was charged at the time in connection with a bounced $25 million check he deposited in a bank's drive-through window. He has denied the charges. Dwek's lawyer did not immediately return a call for comment Thursday, but attorneys for some of the rabbis who were arrested pointed a finger at him.

"Solomon Dwek - isn't that the government's cooperator?" said Robert Stahl, an attorney for 87-year-old Rabbi Saul Kassin of Brooklyn. Stahl said it was a shame the rabbi had been "caught up in this misunderstanding" and that he "remained confident."

Michael Bachner, representing Brooklyn Rabbi Mordchai Fish, said "our belief is that Mr. Dwek used his closeness and the sterling reputation of his family to manipulate individuals who trusted that he would never be involved in illegal conduct."

Most of the defendants facing corruption charges were released on bail. The money laundering defendants faced bail between $300,000 and $3 million, and most were ordered to submit to electronic monitoring.

Among those ensnared by the informant was Hoboken Mayor Peter Cammarano III, prosecutors said. 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.

The Associated Press contributed to this report.

E-mail Derek Harper:

DHarper@pressofac.com

E-mail Lee Procida:

LProcida@pressofac.com

More Coverage

• Van Pelt resigns, citing public's 'outrage' over corruption charges

27 comments:

• UPPERFIRST (180) posts 2:14 pm

  Well, last year we had black corruption - this year it's Jewish corruption. Better leave the Catholics alone...Rabbi Schlomozel

• hadenough (136) posts 10:55 am

  Hopefully this was just the preview...The real show will be soon and the star of it will be corruption in AC and many of the surrounding communities...That 44 they arrested should be a drop in a very large bucket...And then they can take down the biggest corruptors by driving into DC...They should just do away with the federal government and let each state govern itself..Imagine the money we could save and the jobs that would be created....I would be willing to give the laid off politicians in DC unemployment benefits just like the regular Joe's get...

• wordgal54 (4) posts 2:10 pm

  A "light" comment on such a tragic situation: This had to be the biggest, best-publicized perp walk since Ken Lay of Enron fame.

• Ghosdogg (253) posts 10:49 am

  Hey Chumley!...The pot calling the kettle black. LOL-HALARIOUS!!!!

• pixie1 (78) posts 9:56 am

  "Up_To_Here", I will be right next to you with my camera. Thanks for the encouraging post !!! We also can't forget to advise local and national news stations such as Fox News. So that they can have cameras rolling and microphones to shove in their faces.

• Up_To_Here (98) posts 9:42 am

  Pixie, The Feds are a coming to south jersey. Give em time. Egg Harbor Twp, Margate, Atlantic City, Pleasantville,Northfield, might as well throw in Ocean City. All city governments are/were family run. There days are numbered and coming! I just want to be there with my camera.

• pixie1 (78) posts 9:39 am

  "kmpsnj", great post. I have my popcorn ready as TO said it's going to be a show. I have had many people tell me "what are you going to do, thats politics". Well it only takes one person(s) to report what they know to soon to be Governor Christie's administration or the FBI, and look what happens. They are not above the law. South Jersey will be a breeze for them to clean up with the cooperation of some of us willing to tell what we know. I know I am ready !!!

• Chumley (165) posts 9:12 am

  The loadest, and most racist blogger here is you, Ghosdogg. Thanks for pointing out the white guys in handcuffs, but there are a few African Americans, too. HBO is soon to air a mini series taken after the book, "The Soprano State, New Jersey's Culture of Corruption". This book is a must read for all of NJ. Same as it ever was !

• GETOUTTHEBOX (1) posts 5:32 am

  Wow, This is disgraceful. I saw this last night on National news. Even Rabbi's were arrested for selling kidneys. NJ is starting to be known as the corruption state. I hope other politicians get the picture?? www.getoutthebox.org www.getoutthebox1.blogspot.com

• kmpsnj (2) posts 1:57 am

  While the arrests today are to be congratulated, the crimes that led to them are hardly surprising. I have voted Republican in every election since 1992, but if a Republican is caught taking money, lock him or her up with the rest of them. Having said that, the reason party id matters here is that Democrats have held power in New Jersey for most of this decade. As a review, you had McGreevey shaking a guy down for $300k, on tape; Sens. Bryant and Sharpe James being convicted, the entire Pleasantville School Board being perp-walked, Craig Callaway, Langford (who still hasn't given the $800k back, despite being under court order to do so) and the list goes on and on. Because all of these lawmakers were taking gratuities, the cost of everything in New Jersey has skyrocketed over the past decade. That's ok, though. The guy who's getting ready to be elected Governor isn't going to take this crap anymore. Soon-to-be Governor Christie has shown he won't tolerate this stuff. Watching his AG's office clorox this state, once and for all, is going to be fun. As TO once said, "Better get your popcorn cause its gonna be a show."

• snbdr63 (15) posts 11:04 pm

  How did the feds miss Seaside Heights a lot of corruption there that was done out in the open.

• Ghosdogg (253) posts 10:59 pm

  What moderation restraint being exercised in the commentaries of our "perspicacious" friends todfiat, Bernie 'my man' schwartz, B4real and other distinguished members of the "online" CIRCLE-JERK TEAM of Atlantic County...No rantings??...Hmmm!..Oh well, I guess race isn't and issue here let's move on... amusing!!!

• Ghosdogg (253) posts 10:08 pm

  Hey Sandinshoes!..Great commentary I applaud you!!!

• sandinshoes (27) posts 8:22 pm

  Roller137 I also noted the amount of copy The Press had given to the arrest of Daniel Van Pelt, a Republican Assemblyman, but it is only appropriate since he does represent the people of portions of Ocean, Burlington, and Atlantic Counties, which is the back yard of The Press. Lets not get side-tracked by Republican vs. Democrat, or white vs. black, corruption is corruption and it is wrong. It cannot be condoned as business as usual, or part of the cost of doing business in New Jersey. Corruption is one of the reasons taxes are so high in our state.

• Jamesy (80) posts 7:58 pm

  everybody is on the take in Jersey its a way of life there...I should share with you some of the unscrupulous things a few of my employers did over the 12 years I was there. If customers only knew how bad they are being screwed...not to mention the residents and citizens of NJ.

• ConcernedCitizen (222) posts 7:39 pm

  If they need more prisons to house these criminals I'll surely work for nothing to help build it. Corruption is a disgrace and it's time the law abiding people see these people punished. We get screwed enough in this state. Lock them away forever and lock them up with the hardened criminals.

• Jamesy (80) posts 6:47 pm

  joiesy and the joiesy snore...the laughing stock of the country...another black eye.

• pixie1 (78) posts 6:30 pm

  Great job FBI !!! I can't wait until you make your way down the parkway to the Atlantic County area, and no not just Atlantic City. You know who you are. A word of advice to the FBI, you will need more handcuffs and transport buses/vans.

• todfiat (0) posts 5:41 pm

  It's a verryyy Blue State, indeed. The corruption is bred in the bone there, from the minute they stepped off at Ellis Island over a century ago. And just how many agents are under deep cover in A.C.? Hmmm.

• BernieSchwartz (645) posts 5:31 pm

  Hopefully these guys will share a cell with the likes of Craig Calloway. Now that would be justice.

• Supreme (27) posts 5:26 pm

  Merely the tip of the iceberg.

• Advocate (89) posts 5:02 pm

  New Jersey has too much corruption and it is sad to live in a state where being 'honest' seems to be fading..

• freespeech (66) posts 2:34 pm

  Roller 137 you are making this a Republican and Democratic issue. You are blaming the Press of Atlantic City for selling out to the Democrats. What about the moral and ethic issues that we have in NJ. Roller person this isn't an "R" or "D" problem this is a problem that NJ is a cancer that is consuming the good people of this state. Both parties are a cell pool of corruption in the name of greed. Don't you understand this is the problem. You can disregard party affiliation that means very little. Both parties have partied on the tax payers for so long that NJ is a national an international joke. The civil service system, government, courts are a disgrace in this state. Is this the government that people died for in the beaches of Europe and Asia. When will people wise up and see that NJ is a state and the nation is not far behind where government for the people by the people doesn't exist. Maybe government is a mirror image of ourselves. Interesting that the clergy is all part of the corruption. What is good? if it isn't government or religion.

• roller137 (269) posts 12:46 pm

  1 Republican and 30 Democrats arrested and the Press uses half a page with a captioned picture of the Republican. You are so in the tank with the Dems that is incomprehensible. I am sure they will find a sympathetic judge to release them all. Now you need to contact your masters,the (NJ Democratic Party) for advice on how to keep the rest of the facts from the readers.

• BernieSchwartz (645) posts 10:44 am

  Is it that hard to do the right thing? We are all in this together people, self-interests hurt everyone. When will the "joke" end?

• freespeech (66) posts 10:33 am

  NJ government would be a great comedy, if the good citizens were not victims to this ever ending story of corruption. The story is never ending and it is played out in books like; The Soprano State-NJ Corruption and the latest book that I am reading "The Confession" by our former governor without an identity crisis, Jim Mc Sleezy. We have all the ingredients of corruption built in like Home Rule, that allows for the political bosses with each of the 21 counties to control the contracts in the the municipalities like the highly paid engineering firms, and of course our lawyers, who incidently may not be elected but control the muscle to insure all of the inside information or better said "deals" are worked out for "their" benefit and we pay the monopoly appropriate rate that "they" establish. Then we have the dual office holders who eat at the dinner table of the NJ taxpayers. Why do we have the highest taxes in NJ? Because corruption, ineffeciency go hand and hand with 570+ municipalities aka Home Rule. 600+ school districts, 5,000+ lawyers on the payroll who not only get non-working person wages, but the inside information for "self interest" side operations. The joke will continue forever and ever. The joke is on all hardworking NJ taxpayers!

• fredwager (94) posts 9:47 am

  ther are working their way down the parkway, ernie and davenpork are next !

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