07-15-2002 - Mangullo, Conway -- Guilty Plea -- News Release

Former Paterson City Public Works Director Pleads Guilty to Accepting Cash from Vendor

NEWARK - Former Paterson director of public works Conway Mangullo pleaded guilty today to extortion, admitting that he demanded and obtained money from a contractor who sought and received a new paper goods contract with the city, U.S. Attorney Christopher J. Christie announced.

Mangullo, 67, pleaded guilty before U.S. District Judge William G. Bassler to a one-count Information, admitting that he received approximately $7,500 in extortion payments from August 2001 through December 2001.

On Dec. 4, 2001, according to the Information, Mangullo presented a city contract, signed by a Paterson official, awarding a new two-year contract to the paper goods vendor.

Although Mangullo exercised no direct control over the award of municipal contracts in Paterson, he told the contractor that he had influence over those who did, Mangullo told Judge Bassler.

Mangullo admitted that he received approximately $7,500 in cash and checks from the contractor by threatening to cause the paper goods contract to be awarded to another contractor.

According to the Information, Mangullo told the contractor that he had influence with a high-level Paterson official who had control over the awarding of city contracts. In court today, Assistant U.S. Attorney Perry Carbone identified that high-level official as former Paterson Mayor Martin Barnes. Barnes pleaded guilty to corruption charges on July 1.

Had Mangullo gone to trial, Carbone told Judge Bassler that the government would have proven that approximately $3,500 of the $7,500, was given to Barnes for his criminal defense fund.

Mangullo's plea agreement states that, in return for his cooperation and guilty plea, the government would not pursue further criminal charges arising out from his participation in the passing of illegal cash payments from municipal vendors to Barnes, between 1997 until after Mangullo's retirement in October 2000.

Mangullo signed a cooperating plea agreement with the government. Mangullo and others continue to cooperate in the ongoing investigation of public corruption in Paterson.

Judge Bassler set Mangullo's sentencing for Oct. 28 at 9:30 a.m.

Under U.S. Sentencing Guidelines, Judge Bassler will determine his actual sentence based upon a formula that takes into account the severity and characteristics of the offense, and a defendant's criminal history, if any.

Parole, however, has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time, Christie explained.

Under an Information a defendant waives the right to have his case presented to a Federal Grand Jury and, instead, pleads guilty to charges presented by the Government.

The defendant was released on a $10,000 personal recognizance bond.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen of the FBI's Newark office, with developing the case against Mangullo.

The Government is represented by Assistant U.S. Attorney Perry A. Carbone of the U.S. Attorney's Special Prosecutions Division in Newark.

-end-

Defense Attorney: Stephen Weinstein, Esq. Morristown