03-15-05 -- Condos, James -- Sentencing -- News Release

Former Asbury Park Councilman Sentenced to 15 Months in Prison for Corruption

NEWARK - Former Asbury Park councilman James Condos was sentenced today to 15 months in prison for involvement in two fraud schemes, including accepting a liquor license from developer Philip Konvitz in exchange for his votes on issues favoring Konvitz, U.S. Attorney Christopher J. Christie announced.

Condos, 50, of Asbury Park, must turn himself in to the federal Bureau of Prisons within 60 days to begin serving his sentence. U.S. District Judge John C. Lifland also ordered Condos to serve three years of supervised release upon completion of his prison sentence.

Condos pleaded guilty on July 21, 2003, to two counts of mail fraud and admitted involvement in two schemes: one involving the liquor license and the other in which he and the former Asbury Park Housing Authority Executive Director, the late Kenneth E. Nixon, Jr., agreed on the selection of certain individuals as housing authority commissioners, who, upon appointment by the city council, would reappoint Nixon as executive director of the authority in 2003. Nixon and Condos admitted that Konvitz participated in the scheme too.

Nixon pleaded guilty on May 12, 2003, to the same mail fraud scheme involving the housing authority but died before sentencing. The government dismissed its corruption Indictment against Konvitz due to his incompetence to stand trial.

"This was quite the group of corrupt individuals," said Christie. "They took advantage of Asbury Park - a city they professed to serve - at a time when the city most needed honest public servants and citizens."

Condos cooperated in the federal corruption investigation. He had faced a sentencing range of between 24 and 30 months but received a recommendation for a reduced sentence from the U.S. Attorney's Office in return for his assistance. There is no parole in the federal system.

Condos, a city council member from July 1997 to June 2001, admitted that he schemed with Konvitz to receive the liquor license, which Konvitz had accepted from another individual to satisfy a $25,000 debt. Condos said he took transfer of the liquor license to operate the Moonrock Bar & Grill in Asbury Park. Condos also admitted accepting numerous other payments from Konvitz, including $10,000 in checks and $4,200 to defray state sales tax and liquor-company debts.

Condos said that, in return, he voted on a number of matters before the Asbury Park City Council to the benefit of Konvitz - including the transfer of land owned by Konvitz in Asbury Park to another company, the hiring of an interim city manager and the municipal attorney, as well as matters pertaining to the redevelopment of the Asbury Park oceanfront.

Condos admitted that - in exchange for helping Nixon to stack the housing authority with votes favorable to his reappointment to the authority - Nixon agreed to create a salaried position at the housing authority that would pay Condos between $30,000 and $50,000. Condos said that salary would allow him to keep the Moonrock Bar in operation.

Christie credited Special Agents of the FBI's Red Bank Resident Agency, under the direction of Special Agent in Charge Joseph Billy, Jr., in Newark, with the investigation that led to the charges against Condos, Konvitz, Nixon and others in Monmouth County.

The case was prosecuted by Assistant U.S. Attorney Mark J. McCarren.

-end-

Defense counsel for Condos:

Walter Timpone, Esq. Morristown