10-21-04 -- Barry, Joseph -- Sentencing -- News Release

Hudson County Waterfront Developer Joseph Barry Sentenced to 25 Months for Making Cash Payments to Janiszewski

NEWARK - Hudson County waterfront developer Joseph Barry was sentenced today to 25 months in prison for making cash payments totaling $114,900 to former county Executive Robert Janiszewski, in connection with federal and state funding for the Barry company's Shipyard project in Hoboken, U.S. Attorney Christopher J. Christie announced.

U.S. District Judge Joel A. Pisano also fined Barry $25,000 and ordered him to make $1 million in restitution to three federal agencies that supplied him with grants for his building projects. The restitution was part of Barry's plea agreement with the U.S. Attorney's Office.

Barry remains free until Dec. 2, when he is to surrender to begin serving his prison sentence.

Barry, 64, of Peapack-Gladstone, Somerset County, pleaded guilty on June 22 to Counts Seven through 10 of the Indictment returned against him and Janiszewski associate Paul J. Byrne on Oct. 15, 2003. Each count details a cash payment to Janiszewski to reward the then-county executive for his assistance in securing the grants and loans for Barry's development projects.

Each of the counts - making an illegal payment in connection with a federal program - carries a maximum penalty of 10 years in prison and a $250,000 fine. However, under terms of the plea agreement and U.S. Sentencing Guidelines, Barry faced a probable range of between 24 and 30 months in prison. Judge Pisano selected a sentence within that range.

"Mr. Barry is paying a steep price for contributing to the culture of corruption that has pervaded Hudson County government for too long," said Christie. "Elected officials, appointed officials, contractors and now Mr. Barry - all have been swept up in our ongoing corruption investigations. Hopefully the message is clear by now that we will persist in finding and prosecuting corruption in Hudson County."

Barry, a powerful and influential developer of mixed-use retail and residential projects along the Hudson County waterfront, was the president and principal of the Applied Companies and related companies, including Shipyard Associates, based in Hoboken.

Byrne, a long-time political advisor and "consultant" to Janiszewski, was charged in the same Indictment. Byrne pleaded guilty on July 19, admitting that he acted as an intermediary in passing cash payments to Janiszewski in return for government action on renewal of county contracts with the Lisa & Associates accounting firm. Byrne is scheduled to be sentenced on December 13.

Janiszewski pleaded guilty to extortion and tax evasion charges on Oct. 3, 2002. His sentencing is scheduled for January 5.

In all, the Barry/Byrne Indictment detailed $8.8 million in federal and state loans and grants that Barry and the Applied Companies received with the assistance of Janiszewski. At his plea hearing, Barry admitted making the following cash payments to Janiszewski: $30,000 on May 24, 2000; $30,000 on Jan. 23, 2001; $15,000 on March 16, 2001; $14,900 on April 12, 2001, and $25,000 on July 18, 2001.

The FBI and IRS investigation involved consensually made video- and audio-taped recordings of Barry, Byrne and others, made by Janiszewski as he cooperated in the government's investigation.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Joseph Billy Jr.; and Special Agents of the Internal Revenue Service Criminal Investigation section in Newark, under the direction of Special Agent in Charge Patricia J. Haynes; and Special Agents with the Department of Housing and Urban Development, under the direction of Special Agent in Charge Ruth Ritzema, in Newark, with developing the case against Barry.

The case is being prosecuted by Assistant U.S. Attorney Deborah Goldklang, of the U.S. Attorney's Office Special Prosecutions Division.

-end-

Defense Counsel:

Joseph Hayden, Esq. and James Plaisted, Esq.