United States v. Manzo

• Decision Date: 18 May 2010
• Docket Number: Criminal Action No. 09-759 (JLL).
• Citation: 714 F.Supp.2d 486
• Parties: UNITED STATES, Plaintiff, v. Louis MANZO and Ronald Manzo, Defendants.
• Court: U.S. District Court — District of New Jersey

714 F.Supp.2d 486

UNITED STATES, Plaintiff,

v.Louis MANZO and Ronald Manzo, Defendants.

Criminal Action No. 09-759 (JLL).

United States District Court,D. New Jersey.

May 18, 2010.

Christopher Gramiccioni, United States Attorney's Office, Newark, NJ, for Plaintiff.

John David Lynch, Union City, NJ, for Defendants.

OPINION

LINARES, District Judge.

Defendants Louis Manzo and Ronald Manzo have been charged with conspiracy to commit extortion under color of official right in violation of 18 U.S.C. § 1951(a), attempted extortion under color of official right in violation of 18 U.S.C. § 1951(a) and § 2, and travel in interstate commerce to promote, carry on and facilitate bribery in violation of 18 U.S.C. § 1952(a)(3) and § 2. ¹ On January 27, 2010, Defendant Louis Manzo submitted several pretrial motions. By letter, also filed January 27, Defendant Ronald Manzo joined in Louis Manzo's motions. This Court held a hearing on the motions on March 23, 2010. In that hearing, the Court disposed of several of the motions and reserved on others. The Court reserved on the following of Defendants' motions: (1) a motion to dismiss Counts 1-4 of the Superseding Indictment based on the argument that Defendants were not public officials covered by the Hobbs Act, (2) a motion to dismiss the Indictment in its entirety based on alleged outrageous government conduct, (3) a motion to compel the Government to produce discovery related to the grand jury proceedings, and (4) a motion to compel discovery of a Jack Shaw recording. This Court has considered the arguments presented at the March 23rd hearing and the submissions made in support of and in opposition to Defendants' motions, including a supplemental letter filed by the Government on March 24, 2010. For the reasons set forth below, this Court: (1) grants Defendants' motion to dismiss Counts 1-4 of the Superseding Indictment, (2) denies Defendants' motion to dismiss the Superseding Indictment in its entirety, (3) denies Defendants' motion for discovery of the grand jury proceedings, and (4) denies Defendants' motion for discovery of the requested Jack Shaw recording.

I. BACKGROUND ²

In May 2006, Solomon Dwek was arrested by the Federal Bureau of Investigation (“FBI”) on bank fraud charges. Mr. Dwek subsequently agreed to become a cooperating witness for the FBI, assisting with an investigation. Part of the FBI's investigation focused on public corruption. As part of the public corruption investigation, Mr. Dwek posed as a real estate developer who was looking for assistance expediting his development projects through local government processes. The investigation resulted in the arrest of numerous individuals, many of whom were New Jersey politicians, on July 23, 2009.

Defendant Louis Manzo was a mayoral candidate in Jersey City, New Jersey, in the spring of 2009. (Superseding Indictment ¶ 1.a.) The mayoral election was held on May 12, 2009; Louis Manzo was unsuccessful. ( Id.) Prior to his candidacy, he held various public positions, but, at the relevant time of the indictment, he did not hold public office, and there is no allegation that held any other public position at that time. ( Id.) Defendant Ronald Manzo is Louis Manzo's brother and was his campaign manager and political advisor for the 2009 mayoral campaign. ( Id., at ¶ 1.b.)

During the period of Louis Manzo's candidacy, Defendants were introduced to Mr. Dwek by Edward Cheatam and a political consultant, Jack Shaw. Mr. Cheatam ³ and Mr. Shaw informed Mr. Dwek that he “could pay cash to defendant Louis Manzo for his anticipated official assistance” with Mr. Dwek's “purported development projects in Jersey City.” ( Id., at ¶¶ 7.b., c.)

On or about February 23, 2009, Defendants, Mr. Cheatam, and Mr. Dwek met at a restaurant in Staten Island, New York. ( Id., at ¶ 7.d.) The Superseding Indictment alleges that they discussed Mr. Dwek making contributions to Louis Manzo in exchange for expedited development approvals for his real estate projects. ( Id.) Specifically, the Superseding Indictment alleges that “defendant Ronald Manzo indicated that if defendant Louis Manzo won the mayoral election, there ‘shouldn't be any problems' in assisting [Mr. Dwek] with [his] development interests.” ( Id.) After the meeting was over, Mr. Cheatam confirmed with Mr. Dwek that he “should bring $10,000 cash for defendant Louis Manzo [to] the next meeting.” ( Id., at ¶ 7.e.) It was agreed that the payment for Louis Manzo should be made through Ronald Manzo. ( Id.) The Superseding Indictment alleges that “[Mr.] Cheatam reassured [Mr. Dwek] that, in exchange [for the payment], defendant Louis Manzo would assist [Mr. Dwek] in obtaining the discussed development approvals upon his election as Jersey City Mayor.” ( Id.)

Two days later Defendant Ronald Manzo, Mr. Cheatam, and Mr. Dwelt met again in Staten Island. ( Id., at ¶ 7.f.) Prior to Ronald Manzo's arrival, the Indictment alleges that Mr. Cheatam told Mr. Dwek that all payments for the benefit of Louis Manzo should be paid to Mr. Cheatam to be passed on to Ronald Manzo. ( Id.)

“After defendant Ronald Manzo arrived at the meeting, [Mr. Dwek] indicated that [he] was willing to make cash contributions to defendant Louis Manzo, but [that he] wanted to ‘come first in line,’ did not want to be treated ‘like every other developer’ in Jersey City, and wanted to be able to provide development plans to Jersey City government officials and demand ‘approvals.’ ” ( Id., at ¶ 7.g.) In addition to wanting expedited approvals, Mr. Dwek also discussed his desire that Maher Khalil, an employee of the Jersey City Department of Health and Human Services, be promoted to a higher position in the Jersey City Government (the “Promotion Transaction”). ( Id., at ¶¶ 1.e, 6, 7.i.) “Ronald Manzo agreed that the Promotion Transaction constituted a ‘separate deal’ that would involve a separate cash payment from [Mr. Dwek] in exchange for defendant Louis Manzo's anticipated official action as Jersey City Mayor.” ( Id., at 7.i.) The parties also continued Mr. Cheatam's and Mr. Dwek's earlier discussion regarding the need to conceal payments from Mr. Dwek. ( Id., at ¶ 7.g.) Ronald Manzo “instructed [Mr. Dwek] to refrain from openly discussing payment matters with defendant Louis Manzo.” ( Id.)

The Indictment further alleges that, later, in the parking lot, “[Mr.] Cheatam, in defendant Ronald Manzo's presence, accepted an envelope containing approximately $10,000 cash from [Mr. Dwek].” ( Id., at ¶ 7.j.) Mr. Dwek advised Ronald Manzo that he “was making an ‘investment’ in [Defendants] in exchange for ... development approvals.” ( Id.) After the meeting, Mr. Cheatam told Mr. Dwek that he had spoken with Defendants, and that they wanted an additional $15,000. ( Id., at ¶ 7.k.)

Both defendants, Mr. Cheatam, and Mr. Dwek met again in Staten Island on or about March 4, 2009. ( Id., at ¶ 7.1.) Before Defendants arrived, “[Mr.] Cheatam ... indicated that [Defendants] would accept $7,500 cash in exchange for defendant Louis Manzo's official support of the Promotion Transaction, with an additional $7,500 cash to be paid after defendant Louis Manzo was elected.” ( Id.) After Defendants arrived, “Louis Manzo confirmed his receipt of the [earlier] $10,000 payment, and further agreed to accept more money from [Mr. Dwek], at a later date, including after the mayoral election, in exchange for the Promotion Transaction and [the real estate development] ‘approvals.’ ” ( Id.) “At the conclusion of the meeting, defendant Ronald Manzo ... reiterated the need for [him] to serve as a ‘buffer’ for defendant Louis Manzo [, and he] further agreed to accept [a] ... payment of $7,500 for the Promotion Transaction, and additional payments for Louis Manzo's official assistance and support in garnering development approvals ....” ( Id., at ¶ 7.n.)

The next day, Ronald Manzo met Mr. Cheatam and Mr. Dwek again in Staten Island. ( Id., at ¶ 7.o.) The Indictment alleges that he “reassured [Mr. Dwek] that [Defendants] were ‘on the team,’ with respect to defendant Louis Manzo's exercising official influence, action and assistance in future Jersey City government matters in [Mr. Dwek's] favor regarding development approvals.” ( Id.) Mr. Dwek told Ronald Manzo and Mr. Cheatam that he “had spoken to [Mr.] Khalil and ... told [Mr.] Khalil that, after the election, [he] would be promoted within Jersey City government.” ( Id.) After the meeting, they all went outside into the parking lot where, “at defendant Ronald Manzo's direction and in defendant Ronald Manzo's presence, [Mr.] Cheatam accepted an envelope containing $7,500 in cash from [Mr. Dwek].” ( Id., at ¶ 7.p.) Mr. Dwek said to Ronald Manzo: “[M]ake sure my man [Mr. Khalil] is taken care of.” ( Id.) Ronald Manzo replied that he would. ( Id.) Mr. Dwek also told Ronald Manzo and Mr. Cheatam “that the $7,500 payment constituted half of the $15,000 payment, and that the remaining $7,500 balance would be paid after [Mr.] Khalil's promotion, to which defendant Ronald Manzo replied ‘right’.” ( Id.)

Later that day, Mr. Dwek and Mr. Cheatam had a telephone conversation regarding Louis Manzo's assistance to Mr. Dwek. ( Id., at ¶ 7.q.) Mr. Cheatam told Mr. Dwek that “Ronald Manzo stated that, once defendant Louis Manzo was elected, it was ‘carte blanche all the way’ and that there was ‘no problem’ with respect to [Mr.] Khalil obtaining a promotion to a higher position within Jersey City municipal government.” ( Id.)

The following month, Ronald Manzo, Mr. Cheatam, and Mr. Dwek met in Bayonne, New Jersey. ( Id., at ¶ 7.r.) During this meeting, Ronald Manzo and Mr. Dwek spoke privately. ( Id., at ¶ 7.s.) Mr. Dwek said that he would provide another payment for the benefit of Louis Manzo in exchange for expedited approvals. ( Id.) In accordance with this conversation, after the meeting Mr. Dwek gave Mr. Cheatam another $10,000. ( Id., at ¶ 7.u.) Ronald Manzo accepted this money from Mr. Cheatam. ( Id., at...