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Ex-Hoboken councilman is sentenced to 18 months in prison in corruption probe

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HOBOKEN — Michael Schaffer, a key go-between in the high-profile sting that nabbed dozens of New Jersey public officials — including former Hoboken Mayor Peter Cammarano — was sentenced today to 18 months in prison. The 60-year-old politician pleaded guilty last June to funneling $25,000 in illegal campaign contributions to Cammarano that were given by an informant posing as...

michael-schaffer-hobokenjpg-ee018ce9f9654146_small.jpgMichael Schaffer, a former Hoboken councilman and associated of disgraced former Mayor Peter Cammarano, was sentenced this afternoon to 18 months in federal prison for his part in Operation Bid Rig.

HOBOKEN — Michael Schaffer, a key go-between in the high-profile sting that nabbed dozens of New Jersey public officials — including former Hoboken Mayor Peter Cammarano — was sentenced today to 18 months in prison.

The 60-year-old politician pleaded guilty last June to funneling $25,000 in illegal campaign contributions to Cammarano that were given by an informant posing as a crooked developer.

Schaffer, who was seeking a non-custodial sentence, said he was ashamed of his participation in the bribery scheme that became part of a massive federal investigation into corruption and money laundering, leading to the arrests of more than 44 people.
"I would like to apologize to the people of Hoboken and my family," he told the court. "I violated my own ethical standards."

But U.S. District Judge Jose L. Linares said Schaffer abused the trust of his community, acting as a "bagman" to help a politician get elected. And he noted the payments to Schaffer were made over a four-month period.

Schaffer, a former Hoboken councilman and commissioner on the North Hudson Utilities Authority, was arrested in July 2009 as part of a three-year sting that targeted mayors, assemblymen, rabbis and others. At the center of it was a failed Monmouth County real estate investor, Solomon Dwek, who agreed to cooperate as an undercover witness after he was charged in an unrelated $50 million bank fraud.

The operation, moved progressively from an investigation into massive money laundering by members of the religious community to the payoff of bribes to public officials and political candidates for zoning approvals on projects Dwek purported to be planning.

At the time, Schaffer, a Democrat who pleaded guilty to conspiracy to commit extortion under color of official right, was working on Cammarano’s campaign to become mayor of Hoboken.

In transcripts of surveillance recordings of numerous meetings and conversations, Schaffer took bundles of cash from Dwek exchanged in plain FedEx envelopes, meant to grease the way for project approvals after Cammarano was elected.

One exchange, in the parking lot of the Malibu Diner in Hoboken, involved $5,000 in cash.

"I told Pete that, uh, I’ll give him another five after the election, and if you need anything before, call me," Dwek, who went by the name of David Esenbach, told Schaffer. "Just make sure he gets my stuff, uh, expedited."

"I certainly will," Schaffer replied.

Later, in a conversation recorded by the FBI, political operative Jack Shaw, who was also charged in the case but died shortly after his arrest, asked Schaffer if Cammarano was okay with the contribution.

"Oh, loved it. Loved it. Loved him," Schaffer said.

Assistant U.S. Attorney Bradley Harsch told Linares there were four separate cash bribes, which he said Schaffer deposited, then wrote out checks to Cammarano’s campaign.

"He was the middleman," Harsch said. "It was a scheme where people who paid into the campaign would get special treatment."

Cammarano was ultimately elected, but arrested three weeks after he took office. He later pleaded guilty as well.

Defense attorney Corinne Mullen said Schaffer did not benefit from the scheme, and his involvement was an aberration.

"He hasn’t so much as a single parking ticket," she told Linares. "He said some colossally stupid things, but the totality of his involvement was so peripheral."

Linares, however, said there was no momentary lapse. "The offense was serious. It was not a one-time event," he said.

Since the sting operation came to light, 24 people have pleaded guilty, three were convicted, two have been acquitted and charges were dropped against one. Fifteen others are awaiting trial.


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