Charges filed in corruption bust might not stick

NEWARK, N.J. - Nineteen months ago, they played supporting roles in New Jersey's largest corruption bust, paraded in front of television cameras and herded into court in handcuffs. Now, several people could walk free amid less fanfare, after a court ruled that the government misapplied the law when it arrested them.

Several of the 44 defendants arrested on the hot morning of July 23, 2009, are scheduled to appear in federal court next month, where the U.S. Attorney's Office could begin dismissing some or all of the counts against them. It would mark more defeats in a case that has proved problematic for the government as it pushes through multiple prosecutions.

The latest reversal stems from a ruling last week in Philadelphia, where the U.S. Court of Appeals for the Third Circuit ruled that candidates for public office cannot be charged with extortion under a law that is aimed at people already in office.

The 3-0 decision upheld U.S. District Judge Jose Linares' ruling in New Jersey last May that dismissed extortion conspiracy counts against Louis Manzo, a former assemblyman who ran unsuccessfully for mayor of Jersey City, and his brother Ronald, who acted as his campaign adviser.

"This case is going to reverberate across the country," said Samuel DeLuca, an attorney for Ronald Manzo. "It's now clear that, if you're not a public official, the government has to go in another direction than extortion."

The setback was uncommon for prosecutors at the federal level, according to Jeff Ifrah, a former special assistant U.S. attorney in New Jersey currently practicing in Washington.

"It's not that common for prosecutors, especially federal prosecutors who have so much oversight before they bring charges, to screw up the charging documents," Ifrah said.

Other defendants whose cases could be dismissed include unsuccessful Jersey City Council candidates Lavern Webb-Washington, Michael Manzo, James King, and Lori Serrano. All were charged with taking cash from a government cooperator who posed as a crooked developer looking for help winning building approvals.

Another defendant, Denis Jaslow, was an investigator for the Hudson County Board of Elections and was accused of accepting money to introduce the cooperator to Michael Manzo. Jaslow and Michael Manzo are due in court on March 28; the rest are scheduled for March 16.

It's not clear how the cases will be resolved, chiefly because the circumstances vary for each. For instance, some of the defendants have pleaded guilty, and Webb-Washington has been sentenced. Because of that, Ifrah said, she may have to appeal to the Third Circuit to have her plea withdrawn while the others might not have to take that step.

In addition, some of the defendants had bribery or mail fraud counts dismissed when they pleaded guilty to conspiracy to extort. As part of their plea agreements, the government reserved the right to revive those other charges if the guilty plea "does not remain in full force and effect."

The U.S. Attorney's Office did not comment on its plans for the pending cases or whether it would appeal the Third Circuit's ruling.

"The Third Circuit basically blew their theory out of the park and hasn't really given them much to deal with," Ifrah said. "I don't expect, after a ruling like that that cuts so deeply into their existing theory, that they would try to pick up the pieces and try to put them back together."

About half the defendants in the sting, dubbed Operation Bid Rig, have pleaded guilty, and three more were convicted at trial. Two, Ridgefield Mayor Anthony Suarez and former Assemblyman L. Harvey Smith, were acquitted by juries, and the government dropped charges against Hudson County employee Richard Greene.