03-31-04 -- Conway, Charles D. -- Guilty Plea -- News Release

Disbarred Ocean County Attorney Pleads Guilty in Fleecing of Charitable Foundation

TRENTON - A disbarred Beach Haven lawyer pleaded guilty today to mail fraud, money laundering, obstruction of justice, witness tampering, perjury and tax evasion charges in connection with his scheme to steal more than $1.4 million from a charitable foundation that he created when he represented the estate of a woman who willed all of her assets to charity, U.S. Attorney Christopher J. Christie announced.

Charles D. Conway, 56, entered his plea before U.S. District Judge Stanley R. Chesler, who scheduled sentencing for August 3, 2004 at 11:00 a.m.

As part of Conway's plea, he has agreed to forfeit any property derived from the scheme, including his Beach Haven residence, and several bank and investment accounts. The forfeited property will go toward satisfying the $1,431,356 restitution Conway has agreed to pay.

At his plea hearing, Conway admitted that in February 1989 he was the executor of Elaine Kislak's last will and testament. Conway admitted that pursuant to the terms of the will he created The Rita and Harry Greenberger Foundation, Inc., a not-for-profit charitable organization. Conway further admitted that he, along with two others, acted as trustees of the foundation.

Conway admitted that in early 1995 he devised a scheme to defraud the Greenberger Foundation of funds he then used for his own financial enrichment. Conway admitted embezzling foundation funds to purchase residential and commercial properties, to capitalize businesses in which he was involved and to trade in foreign currencies.

Conway admitted that in April and May 1996, he embezzled foundation funds totaling $194,500 of for the purchase of a commercial office building located on Route 37 West in Toms River. Conway also admitted embezzling foundation funds between July and August 2000 that totaled $105,000 and were used towards the October 2000 purchase of a residential property at 813 South Bay Avenue in Beach Haven, which he purchased for $547,550. Furthermore, Conway admitted that in May 2001, he sold the office building on Route 37 for $500,000, realizing a $300,000 profit, and used proceeds to pay off the mortgage on his Beach Haven house.

Conway also admitted that he established several bank and investment accounts, including offshore accounts, in order to transfer Greenberger Foundation funds beyond the control of the other trustees.

Conway also admitted that in early 2003 he learned that he was the subject of a federal criminal investigation into the defrauding of The Rita and Harry Greenberger Foundation. Anticipating that an individual identified as "M.F." might be interviewed by investigators and possibly subpoenaed by the grand jury, Conway admitted that on Oct. 10, 2003, he mailed a package to M.F. which contained a note and false and forged documents, including: A proposed certification containing numerous false statements relating to Elaine Kislak; a document which purported to be minutes of a meeting of the Board of Trustees of the Rita and Harry Greenberger Foundation on Feb. 28, 1992; a release purportedly signed by Elaine Kislak; a codicil to the Last Will and Testament of Elaine Kislak; and, a service agreement and loan documents purportedly signed by Elaine Kislak.

Conway admitted he later learned that M.F. had been subpoenaed to appear before the grand jury investigating the case and in response met with M.F. on Nov. 6, 2003, at the Americana Diner in Shrewsbury in an attempt to convince M.F. to lie and to present the false and forged documents to the grand jury.

Conway also admitted that on Dec. 4, 2003, he appeared before the grand jury and while under oath lied repeatedly and knowingly presented the fraudulent and forged documents to the grand jury.

Conway pleaded guilty to one count each of mail fraud, money laundering, obstruction of justice, witness tampering, perjury and five counts of tax evasion, according to Assistant U.S. Attorney Michael A. Guadagno, who prosecuted the case.

The mail fraud count carries a 20-year maximum prison term while the money laundering, obstruction of justice and witness tampering counts each carry 10-year maximum terms. Each of the five counts of tax evasion carry maximum prison terms of five years.

Under U.S. Sentencing Guidelines, Judge Chesler will determine Conway's actual sentence based upon 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 Joseph Billy, in Newark; the U.S. Postal Inspection Service, under the direction of Martin D. Phanco, Postal Inspector in Charge, N.J./Caribbean Division, and Patricia J. Haynes, Special Agent in Charge of the IRS Criminal Investigation section, in Newark, with developing the case against Conway. Christie also thanked the Office of Attorney Ethics of the Supreme Court of New Jersey, under the direction of David E. Johnson, Jr., who initially discovered Conway's fraud and referred the matter to the U.S. Attorney's Office.

The Government is represented by Assistant U.S. Attorney Guadagno, of the U.S. Attorney's Criminal Division in Trenton.

Defense counsel: Lisa Van Hoeck, Esq., Assistant Federal Public Defender