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TRENTON
– Attorney General Jeffrey S. Chiesa
announced that the former business administrator
for the Westfield School District was sentenced
today for accepting $13,000 in windows and
doors from a contractor he recommended be
hired by the school district.
Robert
A. Berman, 55, of South Plainfield, was
sentenced to one year of probation by Superior
Court Judge Joseph P. Donohue in Union County.
Berman pleaded guilty on Oct. 24, 2011 to
an accusation charging him with third-degree
conspiracy to make false representations
for a government contract. He was required
to forfeit his positions as business administrator
and board secretary for the Westfield School
District. He was also ordered to pay a $6,000
penalty into the State’s Anti-Trust
Revolving Fund for anti-trust enforcement
efforts.
In
pleading guilty, Berman admitted that he
accepted roughly $13,000 worth of window
glass and doors installed at his home by
Metropolitan Metal Window Company from 2004
to 2008. He further admitted that, as business
administrator, he issued written recommendations
that the Westfield Board of Education appoint
Metropolitan as the district’s “contractor
of record” and he approved contracts
knowing that they contained false information.
Berman
was charged in March 2011 as a result of
an investigation by the Division of Criminal
Justice Corruption Bureau, which also led
to charges against a school district engineer
and three contractors. The engineer and
two of the contractors have pleaded guilty.
Charges are pending against the third contractor,
who is the co-owner of Metropolitan. Deputy
Attorney General Vincent J. Militello prosecuted
the case and represented the State in court
today. The investigation was led by Deputy
Attorney General Militello, Sgt. Lisa Shea
and Detective Michael Behar of the Division
of Criminal Justice Corruption Bureau.
The
school district engineer, Kenneth Disko,
48, of Mountainside, was the contracted
engineer or engineer/architect on record
for the Westfield, Tinton Falls and Scotch
Plains-Fanwood school districts. Disko pleaded
guilty on Oct. 12, 2011, before Judge Donohue
to taking thousands of dollars in kickbacks
from 2001 to 2010 on contracts he recommended
that involved rigged bids and fraudulently
inflated costs. His sentencing is scheduled
for March 2. The State will recommend that
Disko be sentenced to three to five years
in state prison, pay a penalty of at least
$50,000, and be barred from public contracts
in New Jersey for 10 years.
Disko
admitted that he knowingly prepared fraudulent
quotes and estimates in connection with
school district contracts, and directed
contractors to inflate quotes and estimates.
He admitted that he submitted those quotes
and estimates to the Westfield, Tinton Falls
and Scotch Plains-Fanwood school districts
and recommended approval of the fraudulently
bid contracts in exchange for thousands
of dollars in kickbacks from contractors.
On
Dec. 1, 2011, two contractors pleaded guilty
to rigging bids and inflating school contracts
at the direction of Disko. Martin W. Starr,
45, of Cliffwood Beach, owner of Starr Contracting,
and Stephen M. Gallagher, 51, of Cliffwood
Beach, owner of East Commercial Construction,
pleaded guilty to accusations charging them
with third-degree false representations
for a government contract before Superior
Court Judge John S. Triarsi in Union County.
They are also scheduled to be sentenced
on March 2. Under their plea agreements,
the state will recommend that each man be
sentenced to up to 364 days in the county
jail and a term of probation. The companies
owned by Starr and Gallagher also pleaded
guilty to the same charge. The individual
and corporate defendants will be disqualified
from public contracts for five years, and
are jointly and severally liable for paying
a $50,000 penalty into the Anti-Trust Revolving
Fund.
In
pleading guilty, Starr admitted that in
2009 and 2010, he prepared fictitious quotes
from legitimate contractors without their
permission and submitted them to Disko in
order to appear to be the lowest bidder
for contracts worth nearly $25,000 that
were awarded to Starr Contracting by the
Westfield and Scotch Plains-Fanwood districts.
Gallagher
admitted that he helped Starr to obtain
those contracts by preparing fraudulent
and fictitious quotes and estimates for
his own company and submitting them to Disko
as higher bids than those submitted by Starr.
Also, in connection with other contracts
that were awarded to Gallagher’s company
in the Westfield and Scotch Plains-Fanwood
districts, Gallagher inflated quotes and
the cost of work performed. The state’s
investigation revealed that in return for
the inflated contracts, Gallagher gave cash
kickbacks to Disko.
Charges
are pending against the third contractor,
John Sangiuliano, 57, of Scotch Plains,
co-owner of Metropolitan Metal Window Company,
which provided the windows and doors to
Berman. It is alleged that Sangiuliano,
in bidding on contracts for the Westfield
and Tinton Falls school districts, knowingly
prepared fraudulent quotes at Disko’s
direction bearing the names of other legitimate
contractors, making the quotes higher than
his own. It is also alleged that, at the
direction of Disko, Sangiuliano knowingly
inflated Metropolitan’s quotes and
the cost of repairs for the contracts. In
exchange for the inflated contracts, Sangiuliano
allegedly gave kickbacks to Disko in excess
of $36,000 in 2009 and 2010. The charges
against Sangiuliano are merely accusations
and he is presumed innocent until proven
guilty. The investigation revealed that
Disko also received over $44,000 in kickbacks
from a prior owner of Metropolitan, now
deceased, for contracts awarded from 2001
to 2004.
Attorney
General Chiesa and Criminal Justice Director
Stephen J. Taylor noted that the Division
of Criminal Justice has established a toll-free
tipline 1-866-TIPS-4CJ
for the public to report corruption, financial
crime and other illegal activities. Additionally,
the public can log on to the Division of
Criminal Justice webpage at www.njdcj.org
to report suspected wrongdoing. All information
received through the tipline or webpage
will remain confidential.
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