12-06-04 -- Conway, Charles D. -- Sentencing -- News Release

Disbarred Ocean County Attorney Sentenced to 78 Months in Prison for Fleecing of Charitable Foundation

TRENTON - A disbarred Beach Haven lawyer was sentenced to the maximum term of 78 months in federal prison today on charges of mail fraud, money laundering, obstruction of justice, witness tampering, perjury and tax evasion for his scheme to steal more than $1.4 million from a foundation that he created when representing the estate of a woman who willed all her assets to charity, U.S. Attorney Christopher J. Christie announced.

U.S. District Judge Stanley R. Chesler also ordered Charles D. Conway, 57, to serve three year of supervised release upon the completion of his prison sentence and to pay $295,238 in restitution. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all of that time.

At the time of his indictment, the U.S. Attorney's Office seized Conway's Beach Haven residence and several bank accounts, according to Assistant U.S. Attorney Michael A. Guadagno, who prosecuted the case. As part of Conway's guilty plea, before Judge Chesler on March 31, 2004, Conway agreed to forfeit any property derived from the scheme, including his residence and four bank accounts to satisfy the $1,431,356 loss suffered by the Rita and Harry Greenberger Foundation, Inc. ( R&HGF), a not-for-profit charitable organization.

To date, the U.S. Attorney's Office has secured $1,136,118 for reimbursement to the R&HGF, through the sale of Conway's home for $999,999 and four bank accounts totaling $136,119. The amount of restitution that Conway was ordered to pay is the balance of the loss to the R&HGF. On Nov. 29 the New Jersey Client Protection Fund (NJCPF) made a $250,000 payment to the R&HGF, thus the R&HGF is only $45,238 short of being made whole. Conway is responsible for repaying the $45,238 to the R&HGF and $250,000 to the NJCPF, according to Assistant U.S. Attorney Guadagno.

At his plea hearing, Conway admitted that in February 1989 he was the executor of Elaine Kislak's last will and testament. Conway admitted that pursuant to the terms of the will he created R&HGF. Conway further admitted that he, along with two others, acted as trustees of the foundation.

Conway admitted that in early 1995 he devised a scheme to defraud the Greenberger Foundation of funds he then used for his own financial enrichment. Conway admitted embezzling foundation funds to purchase residential and commercial properties, to capitalize businesses in which he was involved and to trade in foreign currencies.

Conway admitted that in April and May 1996, he embezzled foundation funds totaling $194,500 of for the purchase of a commercial office building located on Route 37 West in Toms River. Conway also admitted embezzling foundation funds between July and August 2000 that totaled $105,000 and were used towards the October 2000 purchase of a residential property at 813 South Bay Avenue in Beach Haven, which he purchased for $547,550. Furthermore, Conway admitted that in May 2001, he sold the office building on Route 37 for $500,000, realizing a $300,000 profit, and used proceeds to pay off the mortgage on his Beach Haven house.

Conway also admitted that he established several bank and investment accounts, including offshore accounts, in order to transfer Greenberger Foundation funds beyond the control of the other trustees.

Conway also admitted that in early 2003 he learned that he was the subject of a federal criminal investigation into the defrauding of the foundation. Anticipating that an individual identified as "M.F." might be interviewed by investigators and possibly subpoenaed by the grand jury, Conway admitted that on Oct. 10, 2003, he mailed a package to M.F. which contained a note and false and forged documents, including: A proposed certification containing numerous false statements relating to Elaine Kislak; a document which purported to be minutes of a meeting of the Board of Trustees of the Rita and Harry Greenberger Foundation on Feb. 28, 1992; a release purportedly signed by Elaine Kislak; a codicil to the Last Will and Testament of Elaine Kislak; and, a service agreement and loan documents purportedly signed by Elaine Kislak.

Conway admitted he later learned that M.F. had been subpoenaed to appear before the grand jury investigating the case and in response met with M.F. on Nov. 6, 2003, at the Americana Diner in Shrewsbury in an attempt to convince M.F. to lie and to present the false and forged documents to the grand jury.

Conway also admitted that on Dec. 4, 2003, he appeared before the grand jury and while under oath lied repeatedly and knowingly presented the fraudulent and forged documents to the grand jury.

Conway was sentenced on one count each of mail fraud, money laundering, obstruction of justice, witness tampering, perjury and five counts of tax evasion.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Joseph Billy, Jr; the U.S. Postal Inspection Service, under the direction of Martin D. Phanco, Postal Inspector in Charge, N.J./Caribbean Division; and Patricia J. Haynes, Special Agent in Charge of the IRS Criminal Investigation section, for their investigative efforts in developing the case against Conway. Christie also thanked the Office of Attorney Ethics of the Supreme Court of New Jersey, under the direction of David E. Johnson, Jr., who initially discovered Conway's fraud and referred the matter to the U.S. Attorney's Office.

The Government is represented by Assistant U.S. Attorney Michael A. Guadagno, of the U.S. Attorney's Criminal Division in Trenton.

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Defense counsel: Lisa Van Hoeck, Esq., Assistant Federal Public Defender