President of Haynes Security Pleads Guilty
to Deceptive Business Practices

Attorney General Zulima V. Farber and Division of Criminal Justice Director Gregory A. Paw announced that the president of Haynes Security Inc. pleaded guilty today to deceptive business practices. Under the plea agreement, John D’Agostino must give up his ownership interest in the Newark-based security company he founded and pay a fine of $250,000.

D’Agostino, 52, of Wayne, pleaded guilty to a single charge of deceptive business practices, a fourth degree crime, before Superior Court Judge Harold W. Fullilove in Essex County. D’Agostino admitted that in order to gain a contract with PSEG for security services, he misrepresented that Haynes was in full compliance with New Jersey regulations governing security companies. In fact, D’Agostino knew that he had violated the state Private Detective Act by knowingly hiring convicted felons, by failing to fingerprint security personnel and by failing to send fingerprint and background records to the State Police for review.

The state consented to D’Agostino’s participation in the Pretrial Intervention Program (PTI) on the condition that he:

D’Agostino previously signed a Consent Order agreeing to the restrictions on his involvement with Haynes and the security industry, a copy of which is linked to this press release at www.nj.gov/oag/. D’Agostino has hired an independent monitor, Edwin H. Stier of Stier Anderson LLC, who must continue under the Consent Order to oversee all of Haynes’ operations for a period of two years and file quarterly reports with the State Police regarding the company’s compliance with all local, state and federal laws.

D’Agostino will be allowed to work for Haynes for a period of one year starting today, after which he must completely disassociate himself from Haynes and will be barred from any employment or consulting position with any security firm in New Jersey. Thereafter, he will not be permitted to enter the premises of any security firm licensed in New Jersey. Any violation of the Consent Order will be grounds for termination of Haynes’ license.

The Division of Criminal Justice obtained an indictment in February 2004 against John D’Agostino; his wife, Carol A. D’Agostino, 50, who is Haynes’ CEO; and Haynes Security Inc., located at One New York Ave., Newark. The state grand jury indictment alleged that they committed theft by deception by falsely representing to major clients that they were in compliance with the Private Detective Act when, in fact, they failed to perform required background checks and allowed individuals with criminal convictions to work for the company. The company had multi-million dollar contracts to provide airport security services to the Port Authority of New York and New Jersey, as well as security services to private entities including PSEG and Continental Airlines.

The indictment also charged John D’Agostino and Haynes with commercial bribery for allegedly providing financial benefits to individuals at PSEG and Continental who could help secure contracts.

In September 2004, Judge Fullilove dismissed all counts in the indictment as to Carol D’Agostino. The judge also dismissed all allegations related to contracts for airport operations, ruling that federal law pre-empted New Jersey’s regulations with respect to security at airports. The remaining charges against John D’Agostino and Haynes will be dismissed only if he successfully completes PTI.

Deputy Attorneys General Perry Primavera and Marysol Rosero handled the case for the state. The investigation was conducted by investigators from the Division of Criminal Justice - Special Prosecutions Bureau, the New Jersey State Police Government Integrity Unit and the New Jersey Bureau of Securities, with assistance and cooperation from PSEG and Continental Airlines.

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