2002-11-18 -- Nixon, Kenneth E. -- Indictment -- News Release

Former Asbury Park Housing Director Indicted in Attempted Extortion Scheme

NEWARK - Kenneth E. Nixon, Jr., the former Executive Director of the Asbury Park Housing Authority, was indicted today on charges of mail fraud and aiding and abetting an attempted extortion, U.S. Attorney Christopher J. Christie announced.

The two-count Indictment details Nixon's efforts to regain his position as executive director of the housing authority. During the latter half of 2000 and the first half of 2001, he agreed to create a job and salary with the housing authority for then-Asbury Park Councilman James Condos and to solicit Philip Konvitz to bribe another member of the Asbury Park Council. The corrupt payment was intended to enlist the support of the other council member in appointing APHA commissioners who were favorable to reappointing Nixon as executive director.

Nixon, 60, twice served as the executive director of the Housing Authority, first in the early 1990s until he was terminated the Housing Authority Commissioners in 1995. Nixon regained the position of on an interim basis in early August 2001, after a 4-3 vote in his favor by the APHA commissioners.

The same commissioners voted in favor of approving an annual pro-rated salary of $80,000 for Nixon. Nixon was terminated on Jan. 14, 2002, by a unanimous vote of the APHA commissioners.

Nixon is expected to appear before a U.S. Magistrate Judge within the next week at which time bail will be set. The two-Count Indictment charging Nixon was returned today.

Nixon is charged in Count One of the Indictment with engaging, along with Condos and 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 the investigation.

The object of this scheme was for Nixon and Condos, with the assistance of Konvitz, to support the selection of certain individuals as commissioners for the APHA, who would in turn hire Nixon as APHA Executive Director, according to the Indictment.

In exchange for Condos's support of these candidates, Nixon secretly agreed to secure a salary for Condos with the APHA, once Nixon was appointed as APHA Executive Director. The Indictment charges that, with the active encouragement of Nixon, 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. Nixon is charged in Count Two with attempted extortion by aiding in the Council member's acceptance and agreement to accept $4,000 from Konvitz.

Nixon is charged with mail fraud in Count One, which carries a maximum penalty of five years in prison and a $250,000 fine. Count Two charges Nixon with attempted extortion which carries a maximum penalty of 20 years in prison and a $250,000 fine.

Former Asbury Park Councilman Condos and Elberon developer Konvitz were charged in a multi-count Indictment returned on Oct. 28, 2002. Both were charged for their alleged involvement in this same scheme in Count Seven of that Indictment. Condos and Konvitz are scheduled to be arraigned in Newark before the U.S. District Judge John C. Lifland on Nov. 25, 2002 at 10:00 a.m.

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

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