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For Immediate Release:  
For Further Information:
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July 17, 2009  

Peter Aseltine
609-292-4791

Office of The Attorney General
- Anne Milgram, Attorney General
Division of Criminal Justice
- Deborah L. Gramiccioni, Director

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Colombian National Extradited to U.S. to Face Charges He Aided an Administrator for the New Jersey Department of Corrections in a Bid Rigging and Kickback Scheme

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TRENTON – Attorney General Anne Milgram announced that the Division of Criminal Justice has extradited a man from Columbia on charges he assisted suspended Department of Corrections administrator Gerald T. Kennedy in a bid rigging and kickback scheme involving hundreds of thousands of dollars in state contracts.

According to Criminal Justice Director Deborah L. Gramiccioni, Jasher Guerrero, 49, a Colombian national who formerly lived in Elizabeth, was charged in an Aug. 29, 2007 state grand jury indictment which remained sealed until today. He is charged with bribery in official matters, official misconduct and misconduct by a corporate official, all second degree crimes.

Guerrero fled the U.S. prior to being indicted. He was arrested in June 2008 in Colombia on a warrant obtained by the Division of Criminal Justice. He was extradited to the U.S. earlier this month, and turned over to DCJ detectives yesterday by federal authorities. He is being held in the Monmouth County Jail.

The U.S. Department of Justice, the FBI, U.S. Immigration and Customs Enforcement, the U.S. Marshals Service and the Government of Colombia assisted the Division of Criminal Justice in Guerrero’s capture and extradition to the United States.

The Division of Criminal Justice Corruption Bureau obtained an indictment on April 2, 2008, charging Kennedy, 47, of Red Bank, with steering $678,000 in state contracts between 2003 and 2005 to three companies that were owned by friends. As Assistant Director of the DOC Division of Operations, in charge of the Capital Planning & Construction Unit, Kennedy had control over soliciting bids and selecting contractors for small capital projects costing under $41,100.

Kennedy allegedly steered 18 state contracts totaling approximately $348,000 to Pro General Contracting Inc., aka Pro Painting & General Contracting Inc. Guerrero was listed in corporate records as owner of Pro Painting. However, the state’s investigation revealed that Kennedy actually controlled the company. Kennedy allegedly received more than $45,000 in kickbacks on those contracts with the help of Guerrero and another man, Ronald Hayes, who has pleaded guilty in the scheme.

Guerrero allegedly funneled cash back to Kennedy through Hayes by writing checks to Hayes as if Hayes performed work for Pro Painting, when he did not actually perform any work for the company. The state’s investigation revealed that Hayes received checks totaling approximately $50,000 from Pro Painting. In pleading guilty, Hayes admitted he would keep just 5 to 10 percent of the amount of each check and give the rest of the money directly to Kennedy.

Kennedy allegedly received more than $35,000 in kickbacks on eight contracts totaling $170,000 that he awarded to SBC Construction Inc., the company of another friend, Alfred “Buddy” Canale. Canale has also pleaded guilty.

In addition, Kennedy allegedly steered $160,000 in contracts to a third company SteelGrey LLC, which was owned by his friend Mark Stermer, 42, of Red Bank, who was indicted with him.

The charges against Kennedy and Stermer are pending. A full list of charges can be found with the April 3, 2008 press release on the indictment at www.njpublicsafety.com.

Although Kennedy was required to seek bids from at least three pre-qualified contractors, he frequently solicited bids exclusively from the companies he and his friends controlled, and he often allegedly dictated the amount of each bid so he could award the contract as he desired. The contracts were for masonry, painting, "skirting" of a trailer, and roofing repairs.

Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of $150,000.

The indictments are merely accusations and the defendants are presumed innocent until proven guilty.

Attorney General Milgram thanked the U.S. Department of Justice, the FBI, U.S. Immigration and Customs Enforcement, the U.S. Marshals Service and the Government of Colombia for their assistance in capturing Guerrero and extraditing him to the United States. She thanked Michael Heineman, Trial Attorney, U.S. Department of Justice, Criminal Division, Office of International Affairs, and Assistant U.S. Attorneys Harvey Bartle and Shana Chen, U.S. Department of Justice, Criminal Division.

The Department of Corrections reported suspected irregularities in the bidding process on small capital projects to the Division of Criminal Justice in early 2006.

The investigation was conducted and coordinated by Lt. Keith Lerner, Detective Paul Marfino and Deputy Attorney General Steven J. Zweig of the Division of Criminal Justice Corruption Bureau, assisted by Senior Investigator Manuel Alfonso of the Department of Corrections, Special Investigations Division, who was sworn in as a special investigator for the Division of Criminal Justice.

Deputy Attorney General Anthony A. Picione, deputy chief of the DCJ Corruption Bureau, had the indictment unsealed today by Superior Court Judge Ira E. Kreizman in Monmouth 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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