2003-04-21 -- Ginesi, Frank -- Guilty Plea -- News Release

Former President of N.J. Police Union Pleads Guilty to Embezzlement, Tax Fraud

NEWARK - The former president of the New Jersey State Patrolman's Benevolent Association pleaded guilty today to defrauding the organization and to filing a false tax return, U.S. Attorney Christopher J. Christie announced.

Frank Ginesi, 80, of Clark, pleaded guilty to charges in a 36-count Second Superseding Indictment, admitting that he defrauded the organization in a scheme that spanned approximately eight years, according to Assistant U.S. Attorney Mark J. McCarren.

Ginesi, who had been scheduled to go to trial next month, entered his plea before U.S. District Judge Dennis M. Cavanaugh, who set sentencing for July 28 at 9:30 a.m. For his guilty plea to one count of mail fraud, Ginesi faces a maximum sentence of five years in prison, a fine of up to $250,000 or twice the loss caused to the state PBA, and payment of restitution to the victims. Ginesi also faces a maximum sentence of three years in prison on the one count of filing a false federal income tax return, which did not reflect the income from the fraud.

Ginesi, who from about 1978 through 1996 was president of the state PBA, admitted to opening bank accounts in the name of the organization without disclosing the activity in the accounts to other PBA officials and auditors. Ginesi also admitted to knowing about other similar secret accounts opened by former PBA executive vice president William Saksinsky, who pleaded guilty to related charges in August 2000. Edward Rappleyea, the former co-administrator of the PBA insurance fund, also pleaded guilty in August 2000, when he admitted to making illicit withdrawals of PBA funds.

Ginesi admitted diverting PBA funds for his own use. He further admitted to filing a false 1995 income tax return in which he failed to report income from the scheme.

Saksinsky, who has yet to be sentenced and was expected to testify for the government against Ginesi, agreed to pay $400,000 in restitution to the PBA. The government expects to seek an order for approximately the same amount of restitution from Ginesi at his sentencing.

(See prior case-related news releases linked below today's release on Ginesi at the Public Affairs Office website: www.njusao.org)

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

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

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen; Postal Inspectors, under the direction of U.S. Postal Inspector in charge Martin Phanco, and Special Agents of the IRS Criminal Investigation Section, under the direction of Special Agent in Charge Anne D. Fahy, for their work in developing the case.

The Government is represented by Assistant U.S. Attorney McCarren of the Special Prosecutions Division, as well as First Assistant United States Attorney Ralph J. Marra, Jr.

-end-

Defense Attorney:

Barry Evenchick, Esq. Roseland