Former Bank Officer Sentenced to 18 Months in Prison for Accepting Bribes, Bank Fraud

CAMDEN, NJ—A former bank officer was sentenced today to 18 months in prison for accepting bribes of more than $50,000 in return for his assistance in corrupt financial transactions, as well as bank fraud, U.S. Attorney Paul J. Fishman announced.

Jose Dominguez, 47, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with soliciting and accepting bribes in excess of $1,000 as a bank officer. He had also pleaded guilty to a separate indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

From January 1988 to February 2007, Dominguez was employed as a loan officer at Spencer Savings Bank in Elmwood Park, New Jersey. From September 2004 to November 2004, Dominguez and Victor Patela, 38, a former Newark Police officer, conspired to fraudulently obtain a $1.92 million commercial loan from Spencer Savings Bank so that they could purchase apartment buildings in Elizabeth, New Jersey. In connection with this scheme, Dominguez and Patela made false representations to Spencer Savings Bank relating to Patela’s assets in order to obtain the commercial loan. Dominguez also accepted bribe payments from Patela in exchange for using his influence as a loan officer to obtain the $1.92 million loan. In June 2012, Patela was convicted at trial of bank fraud, conspiracy to commit bank fraud, two counts of loan application fraud, and bank bribery and sentenced in April 2013 to 48 months in prison.

In 2003, Dominguez was contacted by a bank customer who wanted to refinance some loans with Spencer Savings Bank and wanted to do so without paying significant prepayment penalty fees. Dominguez advised the customer that if the customer made corrupt payments to Dominguez, the customer could obtain a lower interest rate without paying a prepayment penalty to Spencer Savings Bank.

Between August 2003 and December 2003, Dominguez accepted $55,529.57 in corrupt payments from the customer to influence the requested loan modification. Dominguez also admitted to accepting additional bribes from other bank customers in the amounts of $4,500 and $5,000, respectively.

In addition to the prison term, Judge Hillman sentenced Dominguez to three years of supervised release and fined him $4,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Deputy Director of Hudson County Correctional Center Charged with Wiretapping Fellow Workers

NEWARK, NJ—The deputy director of the Hudson County Correctional Center surrendered today to law enforcement and was charged by complaint with illegally wiretapping fellow employees, U.S. Attorney Paul J. Fishman announced.
Kirk Eady, 45, of East Brunswick, New Jersey, is charged by complaint with one count of intentionally intercepting the wire, oral, or electronic communications of others. He is expected to make his initial court appearance today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the documents filed in this case and statements made in court:
Between March 2012 and July 2012, Eady used the services of a publicly available website to place telephone calls to four Hudson County Correctional Center employees. The website allowed Eady to conceal the telephone numbers from where the calls originated and also call and record two people simultaneously and make it appear as those people, and not Eady, originated the call. Eady recorded these telephone conversations and did not inform the Hudson County Correctional Center employees that he was recording them. Eady admitted to a cooperating witness that he had recorded conversations with three employees.
The illegal interception offense with which Eady is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office Special Prosecution’s Division.
Defense counsel: Peter Willis Esq., Jersey City, N.J.

Former Hells Angel Member Sentenced for Stealing Shipment from Railcar

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 40, of Webster, New York, who was convicted of conspiracy to burglarize a railroad car and theft of an interstate shipment following a jury trial, was sentenced to 37 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that, in the early morning hours of June 30, 2009, Riedman, a former member of the Hells Angels Motorcycle Club, along with co-conspirators Christopher Monfort, Anthony Toscano, Anthony Russell, and Timothy Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, New York. Riedman and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing, used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft. The defendants were caught by members of the Genesee County Sheriff’s Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when they were stolen. Riedman, Toscano, Russell, and Stone were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Judge Siragusa previously sentenced Toscano to 18 months in prison, Russell to 15 months, and Stone to 12 months. Monfort, who pleaded guilty to burglary from a railroad car and the manufacture of 50 or more marijuana plants, was sentenced by Judge Siragusa to 78 months in prison.
The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Genesee County Sheriff’s Office, under the direction of Gary Maha.