Key Figure in Mayor Mack Corruption Case Pleads Guilty to Extortion

The Trenton Times published the following article on February 28, 2013. To read the full article, click here.

Key figure in Trenton Mayor Tony Mack corruption case pleads guilty to extortion charges

By Alex Zdan/The Times 
on February 28, 2013 at 7:15 AM, updated February 28, 2013 at 7:17 AM

TRENTON — A key figure in the corruption investigation of Mayor Tony Mack pleaded guilty yesterday in federal court to extortion and drug charges, saying Mack conspired to extort bribe money from developers.

As part of his guilty plea to two information counts of extortion and conspiracy to distribute drugs, Charles Hall III said he, Joseph “JoJo” Giorgianni and Mack’s brother Ralphiel acted as intermediaries to insulate the mayor from cash payments given for a parking garage project.

In front of Judge Michael Shipp, Hall admitted to meeting with Mack on June 27, 2012, and telling the mayor he had a $10,000 cash bribe from one of the developers to give to Mack.

“In response, did Tony F. Mack direct you to provide a cash payment to Giorgianni?” Assistant U.S. Attorney Eric Moran asked.

“Yes,” Hall said.

Hall went the next day to Giorgianni’s Ewing home to make sure the money was handed off, Moran said.

By that time, Hall was working as an FBI informant for the alleged developers, who were in reality cooperating witnesses. Nothing read into the court record indicated the plea deal included a requirement to testify against Mack in his upcoming federal trial, and Hall’s lawyer, Alan D. Bowman, would not confirm or deny his client’s testimony was part of any deal.

Hall, a 49-year-old city resident, is the first person to plead guilty as a result of an extensive FBI investigation of Mack’s administration that began in the late summer of 2010 after Mack took office that July. Mack, his brother and Giorgianni were arrested in September, indicted in December and have pleaded not guilty.

Hall is also the first member of Mack’s inner circle to plead guilty on federal charges. Hall was said to have a close relationship with the mayor, as was his uncle Harold Hall, the city public property director who has not been implicated in the federal probe.

Hall also admitted in court yesterday that he steered city contracts to a Franklin Township power washing company and city environmental firm in exchange for kickbacks.

Hall accepted $1,300 in cash last April for power washing work done at a city park by Five Star Mobile Auto Detailing. He said he pocketed $600 from that amount.

Between January and June, he said he accepted a $2,000 payment to award a contract for dirt removal, keeping $1,000.

The Times has reported that the environmental company, Clean Green Engineering, received the work despite a final payment that was nearly $10,000 more than a quote by the next-highest competitor for the job. Hall agreed with Moran’s statement he took “official action to ensure that the individual received the contract,” but did not say who retained the rest of the money. Prompt payment to the contractors was part of the deal, Hall acknowledged.

City officials and actions Hall admitted to in court yesterday identify him as the cooperating co-conspirator who helped FBI agents prepare their case against the mayor. Hall, also known by the nickname “Utility Man,” had not previously been charged with a crime, but yesterday pled guilty to conspiracy to violate the Hobbes Act by extortion under color of official right, along with a narcotics conspiracy count which included conspiracy to distribute oxycodone. The court hearing was both his initial appearance on the charges and the scheduled time to enter his guilty plea.

Mack’s attorney Mark Davis and Giorgianni’s attorney Jerome Ballarotto did not return phone requests for comment yesterday. Ralphiel Mack’s attorney Robert Haney restated his client’s innocence but declined to comment further.

Dressed in a gray pinstripe suit, Hall placed his hands behind his back and leaned over the defense table as Moran read through the allegations. He answered all 70 queries with a “yes.”

“Did you, Tony F. Mack, Joseph A. Giorgianni, and Ralphiel Mack agree to accept corrupt cash payments and other things of value?” Moran asked.
“Yes,” Hall said.

Hall admitted he met with then-acting Director of Housing and Economic Development Carmen Melendez last May, to get Melendez to lower the price of the lot on East State Street across from the Broad Street Bank Building. He also admitted “Uncle Remus” was a slang term for money, and that “steaks” “steak sandwiches” “cigars” and “eagles” referred to prescription painkillers.

Giorgianni and seven others have been charged with drug offenses after Hall and Giorgianni operated a large-scale painkiller-dealing ring from the steak shop. Between September 2011 and June 2012, Hall admitted he obtained 13 prescriptions for 1,560 pills he intended to sell.

Judge Shipp accepted the guilty plea. Sentencing is set for June 5. Hall’s travel is restricted to New Jersey and he is to have no contact with codefendants or government witnesses.

The plea agreement was drafted Dec. 12 and signed in court by Hall yesterday. As part of the deal, Hall has waived his right to appeal. Hall was released on $100,000 unsecured bond. He declined comment.

Hall was hired as a meter reader for the Trenton Water Works and was assigned to the city’s recreation department one month after Mack took office, but was eventually given responsibility over all city park projects. He was terminated in November 2012.

The extortion charge carries a maximum of 20 years in prison and a $250,000 fine, while the narcotics conspiracy charge has a maximum 20 years incarceration and $1 million fine.

“Is your willingness to plead here because you are guilty?” Shipp asked Hall early in the hearing.

“Yes, your honor,” Hall said.

Contact Alex Zdan at azdan@njtimes.com or (609) 989-5705.