2002-10-30 -- Condos, James and Philip Konvitz -- Indictment -- News Release

Former Asbury Councilman and Long Branch Developer Indicted for Extortion, Bribery, Fraud

NEWARK - James Condos, a former Asbury Park Councilman, and Philip Konvitz, a Long Branch developer, were charged in an Indictment with extortion, bribery, mail and wire fraud, U.S. Attorney Christopher J. Christie announced today.

The 13-Count Indictment details an assortment of public corruption and misconduct by the two men from 1999 to 2001. Condos is charged in nine counts with extortion, mail fraud and wire fraud, while Konvitz is charged in 11 counts with extortion, wire and mail fraud and bribery. The Indictment was returned Monday and unsealed today with the arrest of Condos.

Among the allegations:

• Konvitz provided Condos with ongoing financial support, including a liquor license valued at $25,000, and at least another $10,000 in cash - in exchange for Condos' votes on the city council regarding the hiring and firing of city attorneys and the city manager, as well as Asbury Park's oceanfront redevelopment.

• Condos and a former Asbury Park official concocted a scheme whereby Condos would help appoint commissioners to the Asbury Park Housing Authority, who would in turn appoint the former official as the executive director of the Housing Authority. In secret exchange for Condos' support, the former official agreed to create a salaried position for Condos with the Housing Authority. Konvitz allegedly then paid another council member, who was cooperating with the investigation, $4,000 to support commissioner candidates favored by Condos and the former official.

• Konvitz allegedly paid this council member thousands of dollars for the council member's support on matters related to oceanfront redevelopment, the Housing Authority and other matters.

• Konvitz allegedly facilitated a bribe payment of $50,000 to former Ocean Township Mayor Terrance Weldon for Weldon's assistance in securing rezoning of a developer's parcel of land in Ocean Twp.

"This marks another sad day in the annals of political corruption in New Jersey," Christie said. "Asbury Park has a storied past and the potential for a bright future with its redevelopment. This office will not stand by and let self-dealing public officials and wheelers and dealers dim Asbury Park's chances."

The corruption probe in Monmouth County is continuing, Christie said.

Condos, 47 - who served as an Asbury Park Councilman from 1997 until 2001, when he failed to be re-elected - was arrested early this morning at his home. He is scheduled to appear at 2 p.m. before U.S. Magistrate Judge Ronald J. Hedges.

Konvitz, 92, has yet to appear on the charges, but is expected to appear for arraignment on the Indictment in the next two weeks.

Condos and Konvitz are charged in Counts One to Four of the Indictment with engaging in a scheme to deprive the City and citizens of Asbury Park of Condos's honest services as a Councilman. As detailed in the Indictment, Konvitz sought to corruptly control and influence Condos's decision making and discretion on matters involving the oceanfront redevelopment, the hiring and termination of city employees and other matters in exchange for which Condos accepted continued financial support from Konvitz. The financial support provided by Konvitz included the use of a liquor license valued at $25,000 which Condos used to operate the since demolished Moonrock Bar & Grill and numerous cash payments, according to the charges. The Indictment also charges both defendants with engaging in efforts to conceal their relationship from the public by, among other things, attempting to mislead state investigators about their financial relationship and money that changed hands between the two of them. Counts Five to Six charge Condos with obtaining specific corrupt payments from Konvitz.

Condos and Konvitz are charged in Count Seven with engaging, along with a Former Asbury Park Official, in a scheme to deprive the City and citizens of Asbury Park of the honest services of both Condos and another member of the Asbury Park City Council, who was cooperating with federal law enforcement. The object of this scheme was for Condos and the Former Official, with the assistance of Konvitz, to support the selection of certain individuals as commissioners for the Asbury Park Housing Authority (APHA), who would, in turn, appoint the Former Official as Executive Director of the APHA, according to the Indictment. In exchange for Condos' support of these candidates, the Former Official secretly agreed to secure a salary for Condos with the APHA, once the Former Official was appointed as APHA Executive Director. The Indictment charges that, with the active encouragement of the Former Official, Konvitz twice bribed - with $2,000 payments each time - the cooperating Council member in exchange for the Council member's support to facilitate the scheme.

Count Eight of the Indictment charges Condos and Konvitz with depriving the City and citizens of Asbury Park of Condos' and the Council member's honest services in relation to a scheme to secure liquor permits for a professional basketball team which played its home games at Convention Hall in Asbury Park during spring, 2000. The Count charges that in order to secure the liquor permits, Konvitz and one of his associates tried to obtain lucrative concession rights for Condos so that he would not impede the obtaining of the permits and gave a $400 cash payment to the Council member to vote in favor of approving the permits. Count Nine charges Condos and Konvitz with conspiring to extort these rights from the basketball team.

Count 10 charges Konvitz with corruptly giving, offering and agreeing to give more than $10,000 to the Council member in relation to numerous matters of interest to Konvitz in Asbury Park, specifically to vote in Konvitz's favor on the oceanfront redevelopment, APHA commissioner candidates supported by Konvitz, Condos and the Former Official, the granting of liquor permits to the basketball team and the hiring and firing of the City of Asbury Park attorneys and the City Manager.

Counts 11 and 12 charge Konvitz for his role in a scheme to deprive the Township of Ocean and its citizens of the right to former Ocean Township Mayor Terrance Weldon's honest services in relation to securing the rezoning of a parcel of land in Ocean Township in exchange for a payment to Weldon. Count 13 charges Konvitz with aiding in the acceptance and agreement to accept by Terrance Weldon of approximately $50,000 from the developer in exchange for Weldon's agreement to exercise official action and influence on behalf of the developer. Weldon pleaded guilty to extortion relating to his participation in this scheme - as well as to two unrelated counts of extortion - before U.S. District Judge William H. Walls on October 10, 2002, and his sentencing has been scheduled for January 7, 2003.

Condos and Konvitz are both charged with mail fraud in Counts One, Two, Seven and Eight and Konvitz is charged with mail fraud in Counts Eleven and Twelve. Both defendants are charged with wire fraud in Counts Three and Four. Each of these counts carry a maximum penalty of five years in prison and a $250,000 fine. Counts Five and Six charge Condos with extortion, and Konvitz is charged with extortion in Count 13. Both defendants are charged with conspiracy to extort in Count Nine. Each extortion count carries a maximum penalty of 20 years in prison and a $250,000 fine. Konvitz is charged with bribery relating to federal programs and funds in Count 10, which carries a maximum penalty of 10 years in prison and a $250,000 fine.

An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens. Grand jury proceedings are secret, and neither persons under investigation nor their attorneys have the right to be present. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen, and the IRS Criminal Investigation Section, under the direction of Special Agent in Charge Anne D. Fahy, for their work in developing the case.

The Government is represented by Assistant U.S. Attorneys Mark J. McCarren and John Fietkiewicz of the Office's Special Prosecutions Division.

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Defense Attorney for Philip Konvitz: Michael Himmel, Esq., Woodbridge

Defense Attorney for James Condos: Walter Timpone, Esq., Morristown