2003-08-05 -- Williams, Alphonse and Larry Mathews -- Guilty Plea News Release

East Orange Businessman and Tax Representative Plead Guilty to Conspiring to Bribe an IRS Employee

NEWARK - An East Orange businessman and a person who represented him in dealings with the Internal Revenue Service pleaded guilty today to conspiring to bribe an IRS employee, U.S. Attorney Christopher J. Christie announced.

Alphonse Williams, 64, of Red Bank, and Larry Mathews, 45, of Newark, both pleaded guilty to a one-count Information charging conspiracy before U.S. District Judge Dennis M. Cavanaugh. Williams and Matthews both admitted to making $300 in cash payments to an IRS employee and offering up to $5,000 in exchange for getting false IRS documents, according to Assistant U.S. Attorney Stuart Rabner.

Williams and Mathews were charged in a criminal complaint filed on April 22, 2003. Following the guilty pleas, Judge Cavanaugh set sentencing for Nov.14, 2003. Williams was released on a $10,000 personal recognizance bond, and Mathews remains detained pending sentencing.

The IRS employee, who was not identified, notified authorities when he was first approached with a bribe offer and has cooperated with the government throughout the case.

Williams operated the Jamas Day Care Center Corp., Inc. ("Jamas") at 86 Washington Street, East Orange, N.J. In Feb.2003, he attempted to get a $350,000 bank loan to be secured by the East Orange property. Williams admitted knowing at the time that federal tax liens totaling more than $300,000 had been levied against him and Jamas at the East Orange property.

Williams hired Larry Mathews, who has a four-year-degree in accounting, to represent him in dealings with the IRS. Williams and Mathews both admitted knowing that no bank would lend money secured by the Jamas property unless the IRS subordinated its liens in favor of the lender.

According to the Informations, the conspirators created and sent a bank a fraudulent letter, purportedly prepared by the IRS. The letter falsely stated that Jamas was resolving federal tax liens, and that the IRS was assisting them in their application for a business loan.

In order to secure the bank loan, Mathews admitted contacting an IRS employee and trying to bribe him. On two occasions in March and April 2003, Williams and Mathews both met with the IRS employee and gave him a total of $300 in cash. The meetings were monitored by law enforcement officials. Mathews also admitted telling the IRS employee that Williams would give him up to $5,000 if the loan went through. In exchange for the payments, both defendants admitted they were trying to get the IRS employee to provide false documents about the tax liens against the Jamas property.

Williams and Mathews each face a maximum sentence of five years in prison and a $250,000 fine. Under U.S. Sentencing Guidelines, Judge Cavanaugh will determine their actual sentences 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.

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.

Christie credited Special Agents of the Treasury Inspector General for Tax Administration, of the Department of the Treasury, under the direction of Special In Charge Rodney A. Davis, for developing the cases against Williams and Mathews.

The government is represented by Assistant U.S. Attorney Stuart Rabner, Chief of the Criminal Division.

-end-

Defense Attorneys:

Kevin F. Carlucci, AFPD, Esq. Newark (representing Alphonse Williams)

Joshua L. Markowitz, Esq. Lawrenceville (representing Larry Mathews)