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TRENTON
– Attorney General Zulima V. Farber
and Criminal Justice Director Gregory A.
Paw announced that the director of the state
Division of Taxation, the deputy director
and four other state managers were indicted
today on official misconduct charges for
allegedly accepting thousands of dollars
worth of dinners, entertainment, golf outings
and spa treatments from a collections company
contracted by the state to collect unpaid
taxes.
According
to Director Paw, a state grand jury also
indicted the former sales director at OSI
Collection Services Inc. who managed the
company’s New Jersey contract, and
a former OSI vice president for sales.
“Instead
of declining the lavish gifts offered by
this state vendor and reporting them, as
clearly required by law and their department’s
code of ethics, these state officials allegedly
welcomed them,” said Attorney General
Farber. “New Jersey residents must
be able to count on the fact that officials
who make decisions on state contracts won’t
be subject to influence by vendors who offer
generous freebies.”
“According
to this indictment, these state officials
brazenly violated their duties and created
a strong impression, at the least, that
they were working in their own interests,
rather than the best interests of the people
of New Jersey,” said Director Paw.
“These allegations are what erode
public confidence in government, and we
will continue to investigate and prosecute
this type of corruption to the full extent
of the law.”
According
to Director Paw, a 42-count indictment was
returned today by a state grand jury against
the following Division of Taxation employees:
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Director Robert K. Thompson, 57, of
Hamilton;
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Deputy Director Harold A. Fox, 58, of
Wall;
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Assistant Deputy Director for Contract
Compliance David M. Gavin, 54, of Titusville;
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Manager of Clerical Services Carmela
L. Thompson, 52, Thompson’s wife;
and
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Assistant Deputy Director for Technical
Services Karen M. Wood, 54, of Hamilton.
Also
indicted were an assistant deputy director
in the Division of Revenue, Janice Eckstein,
46, of Robbinsville, former OSI sales director
Sandra Bielanski, 39, of Hillsborough, and
former OSI vice president for sales Remy
P. DeVarenne Sr., 59, of Chatham. Bielanski
was indicted on 10 counts of official misconduct
and DeVarenne was indicted on five counts
of official misconduct for allegedly assisting
the state officials in violating their duties
by arranging for gifts and benefits they
received.
Robert
Thompson and Gavin had direct responsibility
for overseeing OSI’s performance under
its contracts with the state to collect
unpaid income and business taxes. Robert
Thompson, Gavin, Bielanski and DeVarenne
were each charged with engaging in a pattern
of official misconduct. Most of the counts
in the indictment relate to specific gifts
provided by OSI to the state officials,
and the failure of the state officials to
report those gifts to the department’s
ethics officer as required.
A
copy of the indictment is linked to this
press release at www.nj.gov/oag/. The gifts
from OSI alleged in the indictment include:
- A
Sept. 22, 2004 trip to New York City
for Robert and Carmela Thompson valued
at about $2,470, including limo service
to the city, tickets to the Broadway
musical “Wicked,” and meals
and drinks at two restaurants;
- Spa services for the
Thompsons, Wood and Eckstein in September
2004 at the Cliffhouse Spa in Ogunquit,
Maine, collectively valued at about
$626;
- Three separate golf
outings for Gavin between June 2001
and May 2003, collectively valued at
about $2,560;
- Various meals at restaurants
in New Jersey, Pennsylvania and Delaware
between September 1999 and November
2004 for Robert Thompson, Fox and Gavin
totaling more than $3,600 in value.
One
count of the indictment charges Robert Thompson
with official misconduct for participating,
despite an apparent conflict of interest,
in a decision regarding the length of the
extension of one of OSI’s contracts.
Another count charges him with official
misconduct for failing to recuse himself
in connection with an allegation made by
an OSI employee that the company was overbilling
the state.
Another
count of the indictment charges Fox and
Gavin with official misconduct for participating,
despite an apparent conflict of interest,
in the appointment of four members of a
committee responsible for evaluating vendors
during the rebidding of one of OSI’s
contracts. Yet another count charges Gavin
with official misconduct for participating,
despite an apparent conflict of interest,
in the formulation of a request for proposals
for the rebidding of one of OSI’s
contracts.
The
indictment was handed up to Superior Court
Judge Maria Marinari Sypek in Mercer County.
The indictment is merely an accusation and
the defendants are presumed innocent until
proven guilty.
All
of the defendants face multiple counts of
second-degree official misconduct, with
the exception of Eckstein, who faces one
count of third-degree official misconduct
and one count of second-degree official
misconduct. Bielanski was also charged with
six counts of offering an unlawful benefit
to a public servant for official behavior,
including three third-degree counts and
three fourth-degree counts.
Crimes
of the second degree carry sentences of
up to 10 years in state prison and a criminal
fine of up to $150,000, while crimes of
the third degree carry sentences of up to
five years in state prison and a criminal
fine of up to $15,000. Crimes of the fourth
degree carry sentences of up to 18 months
in state prison and a criminal fine of up
to $10,000.
Deputy
Attorneys General Thomas Clark and Steven
Zweig are prosecuting the case. It was investigated
by State Investigator Benjamin Kukis, assisted
by Supervising State Investigator Ken White
and State Investigators George Delgrosso,
John Janowiak and Dino Dettorre.
>>
view
indictment (2.7MB pdf) plug-in
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