2003-05-12 -- Nixon, Jr., Kenneth -- Guilty Plea -- News Release

Former Executive Director of Asbury Park Housing Authority Pleads Guilty in Corruption

NEWARK - The former Executive Director of the Asbury Park Housing Authority pleaded guilty today to mail fraud in connection with the federal Monmouth County corruption probe, U.S. Attorney Christopher J. Christie announced.

Kenneth E. Nixon, Jr., pleaded guilty to Count One of a two-count Indictment before U.S. District Judge John C. Lifland. Sentencing is scheduled for Aug. 26, 2003 at 10:00 a.m. Nixon faces a maximum sentence of five years in prison, a fine of $250,000 or twice the loss caused by his offense.

The two-count Indictment returned against Nixon in November 2002 detailed his efforts to regain his position as Executive Director of the Housing Authority during the latter half of 2000 and the first half of 2001. As part of the scheme, Nixon agreed to create a salary for then-Asbury Park Councilman James Condos and solicited Philip Konvitz to bribe another member of the Asbury Park Council so that this member would vote for Housing Authority commissioners who were favorable to reappointing Nixon as executive director.

Nixon, 60, twice served as the Executive Director of the Housing Authority, first serving during the early 1990s until he was terminated in 1995. Nixon regained the position of Interim Executive Director in early August, 2001, after a 4-3 vote in his favor by the Housing Authority's commissioners. The same commissioners voted in favor of approving an annual pro-rated salary of $80,000 for Nixon. He was terminated on Jan. 14, 2002 by a unanimous vote of the Authority commissioners.

Count One of the Indictment charged Nixon with engaging, along with James Condos and Philip Konvitz, 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.

Nixon admitted in court today that he had reached an agreement with Condos whereby Condos would vote in favor of appointing commissioner candidates believed to be favorable to returning Nixon to the position of Executive Director in return for which Nixon would create a salaried position for Condos at the Housing Authority. Nixon also admitted encouraging Konvitz to pay off the outstanding property tax liens of another Council member so that this Council member would also vote for commissioner candidates whom Nixon supported. Nixon admitted to the court that he had encouraged Konvitz to pay off these liens through a third party to avoid detection. The Indictment charged that, with the active encouragement of Nixon, Konvitz twice bribed ($2,000 payments each time) the cooperating Council member in exchange for the Council member's support to facilitate the scheme.

Under U.S. Sentencing Guidelines, Judge Lifland will determine the actual sentence based on a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any.

Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

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. Attorney Mark J. McCarren of the Office's Special Prosecutions Division.

-end-

Defense Attorney:

Stacy Biancamano, Assistant Federal Public Defender, Newark