Ex-Bergen County Democratic chair convicted in corruption trial

 
October 22, 2009  AP

NEWARK -- The former chairman of one of New Jersey's most powerful Democratic party machines was convicted today in a federal corruption trial that focused on his role in a consulting business that solicited contracts in towns where he had political influence.

Joseph Ferriero was found guilty of one count of conspiracy to defraud the northern New Jersey town of Bergenfield and two counts of mail fraud. He was acquitted on five other mail fraud counts.

After sitting through a 2 1/2-week trial, the panel deliberated for two full days and most of a third before returning its verdicts.

Ferriero, who headed the Bergen County Democratic Organization from 1998 to 2008, showed little emotion as the verdicts were read. He declined to comment afterward, but his attorney, Joseph Hayden, said he would appeal the convictions.

The jury's verdict repudiated defense arguments that Ferriero wasn't aware that his partner in Government Grants Consulting, Bergenfield borough attorney Dennis Oury, was lobbying for the company with Bergenfield without disclosing his connection with the company.

Ferriero admitted not disclosing his ownership of the company but asserted he had no legal obligation to do so as a non-elected official.

GGC ultimately acquired more than $1 million in grants for the town to buy a historic part of its downtown for preservation, for which the company earned about $135,000.

Oury pleaded guilty before the trial to mail fraud conspiracy and failing to file a tax return, and he testified against Ferriero.

"This case is a glaring example of someone who used his power and influence to corrupt a public official, and we are gratified that the jury saw it that way," U.S. Attorney Paul Fishman said.

Hayden said he would base his appeal on the prosecution's theory that Ferriero denied Bergenfield of Oury's honest services, a legal concept Hayden said is currently being challenged at the appellate level.

"We will renew our motion challenging the theory of honest services fraud, and we intend to challenge it all the way to the U.S. Supreme Court if necessary," he said.

Ferriero was considered a key ally of Gov. Jon Corzine in one of New Jersey's Democratic strongholds. Bergen County has more than a half-million registered voters, the most of any of New Jersey's 21 counties, and is home to nearly 169,000 registered Democrats, third behind Essex and Middlesex counties.

In 2005, Corzine won the county by 34,000 votes. In 2008, President Obama carried Bergen by 39,000 votes.

GOP gubernatorial candidate Chris Christie, who as U.S. Attorney brought the indictment against Ferriero in September 2008, today called Ferriero "a disgrace" and said Corzine's donations to Ferriero's organization — which Christie said totaled $400,000 — helped Ferriero consolidate power.

"While I'm certainly not saying that the governor had any actual knowledge of his being a criminal, his money enabled Joe Ferriero to be a dictator up there," Christie said.

U.S. District Judge Stanley Chesler set sentencing for Ferriero for Feb. 10. He will remain free on bail until then.