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TRENTON
- Attorney General Anne Milgram announced
that two former Hudson County sheriff’s
officers and a supervising detective in
the Hudson County Prosecutor’s Office
have been indicted on official misconduct
charges for allegedly signing false documents
so a bounty hunter could collect additional
fees for fugitives he didn’t catch.
The
Division of Criminal Justice obtained a
state grand jury indictment charging former
sheriff’s officers William
Chadwick, 52, of Keansburg, and
Alberto Vasquez, 39, of
Apex, North Carolina, with falsifying documents
known as body receipts to indicate the bounty
hunter caught certain fugitives when the
fugitives had actually been arrested by
law enforcement officers. Kenneth
Sisk, 48, of Bayonne, who currently
is a captain in charge of homicide detectives
in the Hudson County Prosecutor’s
Office, also is charged with signing false
body receipts.
In
addition, the indictment charges the bounty
hunter, Adel Mikhaeil,
43, of Jersey City, and two other individuals:
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James Irizarry, 41, of
Mohnton, Pennsylvania, is charged with
taking bribes to steer more fugitive cases
to Mikhaeil through his former employer,
a company that helps locate fugitives
for insurance companies that insure bail
bonds.
-
Trevor Williams, 35,
of Jersey City, a bounty hunter employed
by Mikhaeil, is charged with helping to
cover up $92,000 in commercial bribes
that Mikhaeil allegedly paid to an insurance
company executive in return for business.
The executive has already pleaded guilty.
“We
charge that these three officers betrayed
their oath to uphold the law by conspiring
with this bounty hunter so he could falsely
take credit for capturing fugitives who
had been arrested by law enforcement,”
said Attorney General Milgram. “This
fraud was committed at the expense of state
courts and insurance companies that insure
bail bonds. Meanwhile, the bounty hunter
allegedly bribed insurance industry employees
to steer him more business.”
The
indictment is the result of an investigation
by the New Jersey State Police, the Division
of Criminal Justice and the Hudson County
Prosecutor’s Office. The indictment
was returned Monday, but was initially sealed
pending execution of arrest warrants. The
indictment was unsealed yesterday after
arrangements were made for Chadwick, Sisk,
Vasquez and Irizarry to surrender this afternoon
in Superior Court in Morris County, where
they were scheduled for a first appearance
before Judge Salem Vincent Ahto.
From
2003 to 2006, Chadwick, a former captain
in the Hudson County Sheriff’s Office,
allegedly signed six false body receipts
for Mikhaeil, and Vasquez, a former detective,
allegedly signed nine. Sisk allegedly signed
two false body receipts. Chadwick allegedly
received cash gifts from Mikhaeil in return.
By claiming he caught the fugitives and
presenting the false body receipts, Mikhaeil
collected higher fees from the insurance
companies that insured the fugitives’
bail bonds.
While
a bounty hunter does receive a fee for locating
a fugitive who is already in custody - what
is called a “paper transfer”
- the fee is lower than for a “physical
apprehension,” when the bounty hunter
actually locates and arrests a fugitive
who is at large. During the period at issue,
the insurance companies in this case initially
paid bounty hunters in New Jersey 7 percent
of the bond amount for a physical apprehension
and 4 percent for a paper transfer. They
later increased the fees to 10 percent for
a physical apprehension and 5 percent for
a paper transfer.
The
fraudulent body receipts also had the effect
of reducing the amount of bail forfeited,
resulting in savings for the insurance companies
but a loss of funds to the counties where
the fugitive jumped bail and the State of
New Jersey, which divide the forfeited funds.
Until
a fugitive is found, the surety - commonly
called a bail bondsman - must pay the full
amount of the bail bond to the county. Many
sureties insure their bonds. If a fugitive
is found, the surety can seek to recover
a portion of the bail amount. That portion
varies based on factors set forth in court
guidelines. For example, less is recovered
if the defendant was a fugitive for a long
time. On the other hand, more is recovered
if the surety takes steps to locate the
fugitive and, in particular, if a bounty
hunter hired by the surety catches the fugitive,
rather than police.
Irizarry
is charged with taking at least $2,600 in
cash gifts from Mikhaeil in return for hiring
Mikhaeil to recover fugitives. Irizarry
worked for Surety Administrators Inc., a
company that was formed by three of the
insurance companies that insured bail bonds
in this case. Surety Administrators Inc.
was formed to provide fugitive locator services
for the companies, including hiring bounty
hunters.
Williams
is charged with assisting Mikhaeil in attempts
to cover up $92,000 in commercial bribes
that Mikhaeil allegedly paid to John Sullivan
in return for Sullivan using his former
position as vice president for Sirius America
Insurance Company to steer fugitive recovery
business to Mikhaeil. Sullivan, 41, of Parsippany,
pleaded guilty on May 30 to third-degree
charges of commercial bribery and financial
facilitation of criminal activity. Under
his plea agreement, he faces a 364-day jail
term as a condition of a term of probation.
Mikhaeil
and Williams allegedly tried to get Sullivan
to lie about the payments from Mikhaeil.
Williams also allegedly signed a false $25,000
promissory note made out to Sullivan. It
allegedly was one of four false promissory
notes totaling $100,000 that were signed
by Mikhaeil, Williams and another employee
of Mikhaeil’s, George Formoe, in an
attempt to portray the payments Mikhaeil
made to Sullivan as repayment of loans Sullivan
made to Mikhaeil and his employees.
Formoe,
42, of Ridgefield Park, pleaded guilty on
June 10 to third-degree charges of conspiracy
to commit witness tampering and tampering
with physical evidence. He faces a sentence
of probation.
The
15-count state grand jury indictment returned
today charges the defendants as follows:
- Chadwick:
Conspiracy (2nd degree), Official Misconduct
(2nd degree), Acceptance or Receipt of
Unlawful Benefit by Public Servant (2nd
degree), Theft by Deception (3rd degree),
Falsifying Records (4th degree).
- Vasquez:
Conspiracy (2nd degree), Official Misconduct
(2nd degree), Theft by Deception (3rd
degree), Falsifying Records (4th degree).
- Sisk:
Conspiracy
(2nd degree), Official Misconduct (2nd
degree), Theft by Deception (3rd degree),
Falsifying Records (4th degree).
- Mikhaeil:
Conspiracy (2nd degree), Official Misconduct
(2 Counts - 2nd degree), Offer of Unlawful
Benefit to Public Servant for Official
Behavior (2nd degree), Theft by Deception
(3rd degree), Commercial Bribery (2 Counts
- 2nd and 3rd degree), Falsifying Records
(2 Counts - 4th degree), Financial Facilitation
of Criminal Activity (2nd degree), Witness
Tampering (3rd degree), Hindering Apprehension
or Prosecution (3rd degree), Fabricating
Physical Evidence (4th degree).
- Irizarry:
Conspiracy
(2nd degree), Commercial Bribery (3rd
degree).
- Williams:
Conspiracy (2nd degree), Falsifying Records
(4th degree), Financial Facilitation of
Criminal Activity (2nd degree), Witness
Tampering (3rd degree), Hindering Apprehension
or Prosecution (3rd degree), Fabricating
Physical Evidence (4th degree).
The
case was presented to the state grand jury
by Deputy Attorney General Anthony Picione,
who is deputy chief of the Division of Criminal
Justice Corruption Bureau. The investigation
was led by Detective Sgt. Myles Cappiello
and Detective Neil Hickey of the New Jersey
State Police Official Corruption North Unit;
Detective Scott Donlan and Analyst Alison
Callery of the Division of Criminal Justice
Corruption Bureau; and Detective Sgt. Mary
Reinke of the Hudson County Prosecutor’s
Office. The Hudson County Sheriff’s
Office also assisted in the investigation.
Second-degree
crimes carry a maximum sentence of 10 years
in state prison and a $150,000 fine, while
third-degree crimes carry a maximum sentence
of five years in prison and a $15,000 fine.
Fourth-degree crimes carry a maximum sentence
of 18 months in prison and a $10,000 fine.
The
indictment
is merely an accusation and the defendants
are presumed innocent until proven guilty.
The
indictment was handed up in Superior Court
in Mercer County and assigned to Morris
County.
Attorney
General Milgram noted that the Division
of Criminal Justice - Corruption Bureau
has
established a toll-free Corruption Tipline
for the public to report corruption, financial
crime and other illegal activities. The
statewide Corruption Tipline is
1-866-TIPS-4CJ. Additionally, the
public can log on to the Division of Criminal
Justice Web site at www.njdcj.org
to report suspected wrongdoing. All information
received through the Division of Criminal
Justice Corruption Tipline or Web page will
remain confidential.
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