2002-07-01 -- Vidal, Wilfredo -- Conviction -- News Release

Former Union City Code Official Convicted of Extortion and Tax Fraud

NEWARK - A federal jury today convicted former municipal code official and electrical inspector of extortion and tax fraud, in connection with schemes to take corrupt payments from local vendors and intentionally failing to report income and reporting false expenses on his federal tax returns, U.S. Attorney Christopher J. Christie announced.

Wilfredo Vidal, 49, of North Bergen, was convicted of four counts of extortion and seven counts of tax fraud. Vidal was acquitted of counts one and seven of the Indictment, alleging extortion of certain vendors.

Vidal faces a potential prison sentence of between 37 and 46 months under U.S. Sentencing Guidelines, according to Assistant U.S. Attorneys Carlos F. Ortiz and Deborah L. Goldklang, who prosecuted Vidal.

U.S. District Judge Joel A. Pisano set Vidal's sentencing for October 15, 2002.

Investigation into local government corruption in Hudson County continues, Christie said.

Testimony in the trial began June 13th and concluded with attorneys' closing arguments on June 27th. The jury began deliberating on June 28th, and rendered a verdict shortly before noon today.

From June 1995 through December 1998, Vidal performed inspections for Union City either as the construction code official or as a contractor for Union City. The extortion convictions related to a pattern of extorting local vendors for cash payments in exchange for obtaining certificates of occupancy and electrical inspection approvals in Union City, New Jersey. Evidence at trial revealed that Vidal, on occasion, threatened to order that all construction or other electrical work cease if his victims refused to make payments to him and that he also caused delays in the permit and inspection process in order to pressure local business owners into making payments to him.

The jury also found Vidal guilty of 7 counts of tax fraud. According to the proof at trial, Vidal formed a company, Comprehensive Inspection Agency, Inc., through which he received payments from local municipalities (including Union City, Weehawken and Secaucus) and deposited those payments into the company's bank account. Thereafter, evidence revealed that Vidal consistently used company funds to pay personal expenses, such as trips to Florida, his daughter's dance classes and a boat. Evidence admitted during the trial further revealed that Vidal failed to disclose this money as income on his personal federal tax returns for 1994-1997. Evidence was further adduced that he falsely disguised these payments as business expenses on his company's federal corporate tax returns for 1994-1996. Vidal signed all of these returns ensuring their accuracy under penalty of perjury.

Each extortion count in Vidal's conviction (counts 2, 4, 5 and 6) carries a maximum prison sentence of 20 years and a fine of $250,000. Each tax fraud count (counts 8 through 14) carries a maximum prison sentence of three years in prison, a $250,000 and the costs of prosecution. However, Judge Pisano will determine Vidal's sentence based upon U.S. Sentencing Guidelines, a formula that takes into account the circumstances of the crimes and other factors.

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

Christie credited Special Agents of the FBI, under the direction of Louie F. Allen, Special Agent in Charge of the FBI in Newark, and Special Agents of the IRS Criminal Investigation sects under the direction of Special Agent in Charge Anne D. Fahy with investigating the case.

The government is represented by Assistant U.S. Attorney Carlos F. Ortiz, unit chief of the Criminal Division's Government Fraud Unit and Deborah Goldklang of the U.S. Attorney's Special Prosecutions Division, in Newark.

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Defense Attorney:

Peter Willis, Esq., Jersey City