09-21-05 -- Cummings, Jr., James M. -- Arrest/Indictment -- News Release

Former Director of Facilities in Paterson Schools Arrested on Corruption Indictment

NEWARK - The former director of facilities for the Paterson Public School District was arrested this morning on an Indictment charging him with extorting approximately $78,000 in cash and home improvements from two contractors with a combined millions of dollars in contracts with the district, U.S. Attorney Christopher J. Christie announced.

James M. Cummings, Jr., was arrested by Special Agents of the FBI at his home in Sparta early this morning. Cummings, 58, is scheduled to make an initial appearance today before U.S. Magistrate Judge Susan D. Wigenton at approximately 2:30.

The 12-count Indictment, which was unsealed with the arrest, charges Cummings with four counts of soliciting and accepting corrupt payments from the president and vice president of Nutley-based Paint Smart Contractor, Inc.; two counts of soliciting and accepting corrupt payments from the owner of Olympic Windows of Hawthorne and Paterson; and six counts - four counts that relate to Paint Smart and two counts that relate to Olympic Windows - of extortion under color of official right.

Each count of soliciting and accepting corrupt payments carries a maximum penalty of 10 years in prison and a $250,000 fine. Each extortion count carries a maximum penalty of 20 years in prison and a $250,000 fine.

The Cummings indictment follows four earlier guilty pleas arising from the investigation by the FBI and U.S. Attorney's Office of corruption in the Paterson school system.

"This sort of activity in school construction and contracting steals money from the children of New Jersey," Christie said. "We will aggressively protect funds intended to improve our schools and go wherever the trail of evidence leads when it comes to school construction corruption."

As director of facilities from 1998 to about March 2003, Cummings had the authority to approve and recommend the renewal of contracts with the school district. In 2000-2001, Paint Smart billed the school district in excess of approximately $250,000 for painting and related services, according to the Indictment. Olympic Windows billed the school district approximately $2.7 million for construction work and services it claimed to have performed during the same period.

The Indictment alleges that Cummings accepted the following bribes from the contractors, all in exchange for his exercise of official action or influence in favor of the contractors:

• $25,000 on Sept. 27, 2000, from Charles Paraboschi and Jose Logrecco, the vice-president and president, respectively, of Paint Smart.

• $10,000 on Nov. 16, 2000, from Paraboschi and Logrecco.

• $10,000 on Nov. 30, 2000 from Paraboschi and Logrecco.

• $5,000 on April 10, 2001 Paraboschi and Logrecco.

• $6,000, the value of a front door and its installation at Cummings' home in Sussex County, in November 2000 from Carl Babb, the principal operator of Olympic Windows.

• $22,000, the value of materials and installation of sheetrock at Cummings' home, in May 2001 from Carl Babb.

Babb, of Elmwood Park, pleaded guilty on April 14 to mail fraud and making corrupt payments. Babb admitted then that he gave concealed payments and benefits to two School District officials, including Louis Milone, the Director of Maintenance and Custodial Services. At the time of his plea hearing, Babb did not identify the second school official. Milone pleaded guilty on Feb. 17 to one count of accepting corrupt payments. For news releases on both of those cases, follow the appropriate links at www.njusao.org.

Paraboschi and Logrecco pleaded guilty to making corrupt payments to an employee of the Paterson School District on June 9, 2005. The employee of the School District was not identified at the time of their pleas.

Cummings' case has been assigned to U.S. District Judge Jose L. Linares. An arraignment on the Indictment will be scheduled before Judge Linares sometime in the next two weeks.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Leslie Wiser, Jr., with the investigation leading to today's indictment.

The case is being prosecuted by Assistant U.S. Attorneys Jeffrey S. Chiesa and Ricardo Solano Jr., both of the U.S. Attorney's Office Special Prosecutions Division in Newark.

Despite indictment, all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

-end-

Defense Counsel:

Jeffrey Garrigan, Esq. Jersey City