The former owners of what was once Hoboken's only car towing company were sentenced to probation last week for tax evasion, and one of them apparently tried to point a finger at the wife of former Mayor Anthony Russo. In February of 1999, FBI agents and officials from the Internal Revenue Service raided Hoboken Auto Body, the Jackson Street company that had the exclusive rights to tow improperly parked cars in the city.

What the investigators found was tax fraud. The principals of Hoboken Auto Body have admitted to maintaining a "double set of books," one set revealing the cash profits and the other not showing them.

According to federal sentencing guidelines, company owner Theresa Pino would have spent more than a year in prison. But because she cooperated with investigators, U.S. District Judge Joel Pisano only sentenced her to two years of probation on Tuesday.

And apparently, her cooperation helped bring down former Mayor Anthony Russo - who is now serving jail time - and attempted to implicate his wife, who is not.

A report from the city's auditors charges that the city's Finance Department miscalculated how much in emergency appropriations would be needed to run the city.

The city's finance director, who was fired by the city three weeks ago, defended himself by saying he was being on the safe side in making sure the city had enough money to pay its bills.

The report was officially filed with the city on June 2 but is dated April 23, 2003.

Last month, the city cited the report as a rationale to fire the city's acting Chief Financial Officer, Michael Lenz, who was also said to be supporting candidates who opposed the mayor's candidates in the May 13 City Council election.

A report from the city's auditors charges that the city's Finance Department miscalculated how much in emergency appropriations would be needed to run the city.

The city's finance director, who was fired by the city three weeks ago, defended himself by saying he was being on the safe side in making sure the city had enough money to pay its bills.

The report was officially filed with the city on June 2 but is dated April 23, 2003.

Last month, the city cited the report as a rationale to fire the city's acting Chief Financial Officer, Michael Lenz, who was also said to be supporting candidates who opposed the mayor's candidates in the May 13 City Council election.

GONE - Michael Lenz, pictured at a recent City Council meeting, was let go this week amid allegations that he mishandled the city's budget. Lenz says that the mayor is just trying to distance himself from a spending increase.

In a somewhat vague statement, the city announced Tuesday that acting Chief Financial Officer Michael Lenz has been terminated as the result of an "internal city investigation" into the city's budgetary process.

"Acting CFO Michael Lenz has been discharged from his official capacity today, May 13, 2003, based on the outcome of an internal investigation supervised by the corporation counsel with the assistance of the city's independent auditors," read a statement released by Bill Campbell, the mayor's spokesperson. Corporation Council Joseph Sherman and auditors from Ernst & Young were charged with undertaking an investigation into the budget. They have recently presented the mayor with what Sherman described as an "interim report."