NJ Ruling Could Undo Charges In Corruption Case

NEWARK, N.J. (AP) ― The government filed a notice of appeal Monday to a recent court decision that could undo charges against several defendants in New Jersey's largest corruption case.

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U.S. District Judge Jose L. Linares ruled May 18 that a former state legislator and his brother, who were among 44 people arrested in a massive federal corruption sting last July, were incorrectly charged with extortion under "under color of official right" — a legal term for misuse of public office — because neither held public office at the time of the alleged crimes.

The decision has other defendants scrambling to see if the ruling might apply to them.

Louis and Ronald Manzo were arrested in a money laundering and public corruption investigation that ultimately snared 46 people last year, including about two dozen public officials and prominent rabbis in Brooklyn, N.Y., and Deal, N.J.

Government cooperator Solomon Dwek, who tied the two tracks of the investigation together, started wearing a wire for federal authorities after pleading guilty to bank fraud. He ensnared several members of his Syrian Jewish community on money laundering charges, while reaching out to an array of New Jersey officials to offer cash in exchange for development assistance.

Several of the defendants charged under the Hobbs Act were public office holders at the time of their arrest, including two state assemblyman and three mayors. But a handful were former office holders or unsuccessful candidates for office.

The Manzos had each faced two counts of attempted extortion and conspiracy to commit extortion under the Hobbs Act. They still face two bribery-related counts and one mail fraud count after the judge's ruling.

The government contends that the Manzos accepted cash from Dwek in exchange for Louis Manzo's official influence if he were elected mayor of Jersey City. He lost. Ronald Manzo acted as his brother's campaign manager and political adviser.

Prosecutors argued that the Hobbs Act covers private individuals and that the Manzos could be charged with conspiracy and attempted extortion — though not actual extortion — even though neither held public office at the time.

Linares disagreed, writing that no legal precedent exists that would apply directly to the facts of the Manzos' case.

"The government appears to believe that charging 'conspiracy' or 'attempt' is a legal alchemy with the power to transform any gap in the facts into a cohesive extortion charge," Linares wrote.

Linares denied two other motions by the Manzos, but said their petition to dismiss the Hobbs Act charges had prompted an examination of "who is enough like a public official to be within the scope of the 'under color of official right' theory."

"Coercion in some form is at the heart of any Hobbs Act violation," Linares wrote. "And, for the 'under color of official right' theory, political office or power is what provides the coercion."

In an earlier legal brief filed in response to the Manzos' motion, government lawyers had argued the Hobbs Act does not limit 'official right extortion' to public officers and applies to future promises made by candidates. They also argued that Linares' narrow interpretation could give unsuccessful candidates "immunity for wrongdoing."

The ruling is being studied by attorneys for several defendants.

Former Jersey City council candidate Laverne Webb-Washington was charged under the Hobbs Act, pleaded guilty and was sentenced by Linares in March to a year in federal prison. Her attorneys at the Federal Public Defender's Office are hoping she can delay reporting to prison while they file an appeal based on Linares' ruling.

"We definitely intend to move on it," said Chester Keller, first assistant federal public defender. "The first thing is to get a stay of the sentencing to litigate the matter, and we definitely intend to litigate it."

Frank Arleo, an attorney for defendant Michael Manzo — no relation to the Manzos — said he was reviewing his client's guilty plea considering Linares' decision. Arleo said he wasn't sure how it might apply to his client, who held a public job as an arson investigator but was charged under Hobbs related to his unsuccessful bid for a Jersey City council seat.

Jack Shaw, a political consultant charged in the probe under the Hobbs Act, was found dead of a Valium overdose in his Jersey City apartment shortly after his arrest.

A lawyer for Guy Catrillo, an unsuccessful Jersey City council candidate, was sentenced in January to 18 months in prison. His attorney, Michael Koribanics, said he wasn't yet sure if the ruling applied to his client but was reviewing it.