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Corruption extends to skimpily inspected properties

Jacob Kamaras
THE JEWISH STATE
August 7, 2009

While the recent FBI corruption busts had their sharpest reverberations in the Jewish communities of Deal and Brooklyn and the political offices of Hudson County, the scandal could have also hit home at local business or apartments in properties owned by corrupt developers who dealt with wayward inspectors.

Moshe "Michael" Altman, a Hudson County developer from Monsey, N.Y., introduced the government's cooperating witness, Solomon Dwek, to a Jersey City building inspector named John Guarini who took $20,000 from Dwek to provide "future official assistance" in helping clear development projects in Jersey City. That July 2007 bribe gave rise to the public corruption portion of an investigation that resulted in 44 arrests.

Additionally, Lakewood housing inspector Jeffrey Williamson was accused of accepting $16,000 in bribes over two years to go easy on properties with Dwek, in payoff schemes aided by former Dwek employee Charles Ammon, who manages properties in Lakewood.

In both cases, criminal complaints detail how the Feds received clear indication that the inspectors accepted similar bribes in the past, creating the possibility that a slew of illegally zoned or physically unsafe properties exists in Jersey City and Lakewood.

But fortunately for business owners and residential tenants in those areas who fear their buildings may have been involved in corrupt dealings, the municipalities are completely responsible for the legality of the properties because they authorized the faux approvals, said Bill Ward, an attorney at Carlin & Ward, PC in Florham Park.

"They weren't responsible in any way for the transaction," Ward said of tenants.

"I'd just say sit tight and don't do anything [if you are a tenant]," he added. "There is a prosecution going on, so you don't know where that's headed."

Regarding tenants who are concerned that their buildings weren't properly inspected for safety, Ward said they should contact their city offices and ask for re-inspections. The municipalities aren't legally required to conduct new inspections, Ward said, but in light of the scandal it would be unwise for them to turn down such requests.

"As a matter of public policy, [the municipalities] would do it," Ward said. "They already have a black eye by virtue of one of their employees being indicted."

According to the criminal complaint, Altman told Dwek that he made corrupt payments to Guarini in the past in exchange for approvals. When Dwek told Guarini he was looking for a "comfort level" on zoning and other issues, Guarini replied: "You're not gonna have any problem with anything with me ... whatever we have to do, I can get it done."

Guarini said that he could help Dwek gain approval for more units in a particular building, explaining that "worst-case scenario ... we have to put in for a variance ... go before the Board of Adjustment, we present the set of plans, the whole bit, but I get the blessing from everybody up above for that to go through." To create the pretext of an inspection, he said, "everything looks good here."

The government said that Guarini subsequently introduced Dwek to Maher A. Khalil of Jersey City, the deputy director of the Jersey City Department of Health and Human Services and a former member of the Jersey City Zoning Board of Adjustment. Khalil is accused of taking $30,000 in cash from Dwek to pave the way for development plans.

Williamson was a housing inspector in Lakewood responsible for performing inspections and certifying housing units for compliance with federal, state, and local standards, as well as codes, regulations, and procedures. Ammon told Dwek that Williamson performed approximately 15 to 20 inspections a day and accepted corrupt cash payments for "half of them."

Ammon told Dwek that Williamson would use the line "Why don't we do lunch?" as an indication that he was willing to meet about taking a bribe. When he met with Dwek about illegally turning a house into a commercial office, Williamson said "So my recommendation is, if you decide on me, we go in there with a regular C.O. (certificate of occupancy), except ... say you're going to rent it out."

Williamson told Dwek that he would overlook issues such as painting and cosmetics in an inspection, but that "life safety" was something he couldn't overlook. He said, "It's real simple, as long as they have smoke detectors... carbon monoxide alarms, and a fire extinguisher, I'll pass them." Williamson added that, "all I'll know, is what I see."

Dwek responded, "You'll close your eyes to everything else?" and Williamson answered, "Well, I'm giving, I'm giving time... not making a big deal." By May 2007 Williamson performed 27 "lenient" inspections on Dwek's properties, and in July 2007 agreed to receive a set monthly payment of $1,000 in exchange for any approvals that came up.