09-29-04 -- Russo, Anthony -- Guilty Plea -- News Release

Former Hoboken Mayor Anthony Russo Admits Accepting Cash to Influence Contracts

NEWARK - Former Hoboken mayor Anthony J. Russo pleaded guilty today, admitting that he took thousands of dollars in cash from the owner of a city accounting firm in exchange for Russo's influence in awarding contracts to the firm, U.S. Attorney Christopher J. Christie announced.

Russo, 57, pleaded guilty before U.S. District Judge Joel A. Pisano to three counts of mail fraud, encompassing unlawful payments he received on an ongoing basis between 1999 and December 2001. Russo admitted that he accepted the payments from principals of Lisa & Associates, including firm owner Gerard Lisa. Specifically, Russo admitted taking unlawful cash payments from Lisa, including but not limited to, one for $2,000 on Oct. 1, 2001 and another for $3,000 on Nov. 30, 2001.

"During his tenure in office, Mr. Russo expected and demanded to be paid in exchange for awarding municipal contracts," Christie said. "In corrupting his office, Mr. Russo deprived the citizens of Hoboken of the basic honesty and integrity that they had a right to expect from their highest elected official."

Russo admitted that he accepted all the unlawful cash payments knowing they were made to influence and reward him for his official action, including action in connection with the awarding of municipal contracts for professional accounting services to Lisa & Associates and for his assistance in securing future municipal contracts for the firm.

In pleading guilty, Russo, who served two terms as mayor between 1993 and 2001, admitted that he deprived the citizens of Hoboken of his honest and faithful services as mayor. Judge Pisano scheduled sentencing for Jan. 5 at 10 a.m.

Russo faces a maximum statutory sentence of five years in prison on each of the mail fraud counts. However, under terms of the plea agreement and pursuant to U.S. Sentencing Guidelines, Russo faces a probable sentencing range of between 24 and 30 months, plus restitution and a term of supervised release upon completion of his incarceration.

However, the defense has informed the court that it will make a downward departure motion, seeking a lesser sentence, based on Russo's serious cancer condition.

The case was prosecuted by Assistant U.S. Attorneys Luis A. Valentin and Ralph J. Marra, Jr.

Defense Attorney: Dennis McAlevy, Esq. Union City.

-end-