First the FBI sting, now Castagna probed over food vendor permits

[CeeDub]

For sure, especially if the amount of "some fines" is less than the moneys he stole plus interest . . . What about the permittees?

[MCA™]

Seems he is getting off easy.


Theft, misconduct charges will be dropped against retired Jersey City health officer if he completes PTI
Published: Thursday, April 19, 2012, 3:00 AM
By Michaelangelo Conte/The Jersey Journal

Former Jersey City Health Officer Joseph Castagna has been allowed to enter into pretrial intervention and if he completes the one-year program, theft and official misconduct charges filed against him will be dismissed, officials said.

In a deal with prosecutors, Castagna was allowed to enter PTI at a hearing before Hudson County Superior Court Judge Lisa Rose Tuesday, officials said, adding that he has not admitted any wrongdoing. Castagna, 56, of Jersey City, had already retired from his post by June 2011, when he was indicted on charges he issued bogus licenses to portable food vendors and pocketed nearly $11,000 in proceeds, officials said.

As part of the PTI deal, Castagna must perform 50 hours of community service and pay some fines, Hudson County Assistant Prosecutor Leo Hernandez said. If he completes the program successfully, the charges will be dismissed.

Castagna had also been charged with conspiracy to commit extortion under the Hobbs Act as part of the massive Bid Rig III probe that resulted in the arrest of more than 40 people in 2009. Federal authorities charged him with taking $5,000 from FBI informant Solomon Dwek, who was posing as a corrupt developer.

The federal charges against Castagna were dropped in January after a judge ruled that the Hobbs Act applies only to public officials and Castagna was a city employee and not a public official.

[MCA™]

Retired Jersey City health officer indicted
Published: Saturday, June 11, 2011, 3:00 AM
Terrence T. McDonald/The Jersey Journal

A retired Jersey City health officer has been indicted for allegedly issuing bogus licenses to portable food vendors and pocketing the nearly $11,000 in proceeds, according to county prosecutors.

Joseph Castagna, 55, of Jersey City is charged with official misconduct and theft by failure to make a required disposition.

Hudson County Assistant Prosecutor Karyn Darish said the charges stem from about 51 licenses that Castagna was not permitted to issue.

"He was receiving money that the city should have been entitled to, and he was using it for his own purposes," Darish said, adding that her office believes he pocketed up to $11,000 from the scheme.

Castagna, the city's former health officer, retired in August 2009, one month after he was arrested in the massive corruption sweep in which he was charged with taking $5,000 from federal informant Solomon Dwek.

The criminal investigation into Castagna's alleged license scheme, which originated with the Jersey City Police Department, surfaced after Castagna's corruption arrest.

City officials have said Castagna's alleged scheme led to a flood of licenses for portable food vendors that the city now has to honor. City ordinance permits only 175 licenses for such vendors, and city officials believe there are now 322 active licenses.

The city's repeated attempts to revise its ordinance regarding portable food vendors have been stymied by the investigation into Castagna's alleged offenses, according to a city official.

"The charges speak for themselves," said city spokeswoman Jennifer Morrill. "As this is an ongoing matter in criminal court, we are not going to comment further."

Castagna, reached by phone, denied any wrongdoing. He said he learned about the indictment not from the prosecutor's office, but by reading about it in The Jersey Journal.

"There's a lot of corruption here, and I'm looking like the fall guy," he said. "They make it sound like I wrote out every itinerant license that was ever given out, and that's not correct. There were three clerks and myself."

Castagna will probably be arraigned sometime in July, when he will have to enter a plea, according to Darish. If convicted of the theft charge, he faces 3-5 years in prison, and 5 to 10 years for the misconduct charge, she said.

Castagna's Operation Bid Rig III charges are still pending.

[MCA™]

Former Jersey City health officer Castagna charged with stealing fees food vendors paid him for licenses; already faces federal bribery charges in political corruption sting
Friday, October 22, 2010
By MICHAELANGELO CONTE
JOURNAL STAFF WRITER

Already facing federal bribery charges, former Jersey City health officer Joseph Castagna has now been charged with pocketing money that food vendors in Jersey City were paying for licenses to operate.

Castagna, 54, of Wales Avenue in Jersey City, surrendered at noon yesterday on the theft charge, said Hudson County Assistant Prosecutor Karyn Darish.

Central Judicial Processing Court Judge Richard Nieto set Castagna's bail at $5,000 cash or bond when he made his first appearance on the charges later yesterday afternoon and was represented by Jersey City attorney John Coyle.

"Mr. Castagna says that the charges against him are simply untrue and there is no basis in fact or in law as to bring the charge, and when all the facts are brought to light he will be completely vindicated," Coyle said after the hearing, adding that he expected Castagna to be bailed quickly.

Hudson County Prosecutor Edward DeFazio said yesterday that based on the allegations against Castagna, there are a significant number of food vendor licenses over the permissible limit in Jersey City, and he noted the city is conducting an audit to find out just how many hot-dog stands, lunch trucks and similar food vendors are on the streets.

In July last year, Castagna was one of 46 individuals arrested as part of a massive federal probe into money-laundering and political corruption.

The government has accused Castagna and former Hudson County Superintendent of Elections investigator Dennis Jaslow, 46, of accepting a $5,000 bribe from FBI informant Solomon Dwek.

Federal authorities charged the pair with passing the money along to failed Jersey City council candidate and former Jersey City Fire Department Arson Investigator Michael Manzo. Jaslow and Manzo have pleaded guilty to accepting bribes.

There have been several continuances in Castagna's federal case due to a motion filed by another defendant that is making its way through the appeals process. Nov. 16 has been set for Castagna's next hearing in the federal matter.

[garyg]

You mean to tell me he threw away his pension which say he lived another 20 years would have paid him over 1.2 million bucks for 5k?  Wow 5k in the grand scheme of things is peanuts...

[MCA™]

Embattled city official gets OK for retirement
Thursday, September 17, 2009

The retirement of suspended Jersey City health official Joseph Castagna was approved yesterday by the board of the Jersey City Employees Retirement System.

But if Castagna - who was arrested on federal corruption charges in July and is also being investigated for possibly issuing too many food vendor licenses in the city - is convicted or pleads guilty to any charges, the board can revisit approval of his retirement, city spokeswoman Jennifer Morrill said last night.

Castagna, 53, has worked for the city for 29 years and earned $105,164 a year. His pension would be $60,740 a year, officials said.

In addition, Castagna will receive a one-time payment of $84,414, which includes 43.5 accrued vacation days, one-half of a personal day, and 80 percent of his 207 days of unused sick time, Morrill said.

Castagna was arrested as part of a massive FBI sweep in July and charged with pocketing a $5,000 bribe from an FBI informant.

Nearly a half-dozen other officials and municipal employees in Hudson County, including former Hoboken mayor Peter Cammarano, former Secaucus mayor Dennis Elwell, and Jersey City Council President Mariano Vega Jr., were arrested in the sting.

JOURNAL STAFF

[MCA™]

Castagna, under 2 probes, has filed request to retire
Friday, September 11, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

Jersey City health official Joseph Castagna - who was charged in July in the massive FBI corruption sting and is now under investigation by local police - has put in his retirement papers, city officials confirmed.

Castagna, a 53-year-old health officer who is being investigated for issuing more food vendor licenses than the city allows, put in his request to retire Aug. 26, according to Jennifer Morrill, a spokeswoman for Jersey City Mayor Jerramiah Healy.

The next day, police seized additional records from his office, officials told The Jersey Journal in late August.

The retirement, which is not yet approved, is scheduled to be considered at the Sept. 16 meeting of the City of Jersey City Employees Retirement System board, Morrill said.

Castagna has worked for the city for 29 years and currently earns $105,164 a year. If approved, his pension would be $60,740 a year. In addition, Castagna will also receive a one-time payment of $84,414, which includes 43.5 accrued vacation days, one-half of a personal day, and 80 percent of his 207 days of unused sick time, Morrill said.

Castagna has not been terminated, but if he were terminated before he retired, Castagna would lose the payment for his paid sick days, but would keep the rest of his benefits, according to Morrill.

Pension applications are normally approved as long as applicants meet general requirements such as age and years of service. But if Castagna is found guilty of a crime that directly relates to his office it is possible that the pension board could later decide to withhold part of the pension, according to Bernard Hartnett, the pension board's attorney.

Castagna was arrested by the FBI July 23 and charged with taking a $5,000 payment from an FBI informant posing as a developer. The health officer was supposed to pass along the money to the campaign of Michael Manzo, a firefighter running for the City Council in Ward B, according to the complaint.

Jersey City Police Chief Tom Comey has refused to say more about the police investigation because it is ongoing, but a source has said the records indicate that Castagna gave out more than 100 licenses above the 175 permitted by city ordinance. Annual fees for the licenses range from $100 to $250.

The licenses used to be issued by clerks at the city Health Department, but it appears that Castagna took control of the process, the source said.

[MCA™]

Jersey City Health Officer Joseph Castagna, under investigation for issuing too many food vendor licenses, puts in retirement papers
by Amy Sara Clark / The Jersey Journal
Monday August 31, 2009, 6:50 PM

Jersey City official Joseph Castagna -- who was charged last month in the massive FBI corruption sting and is now under investigation by local police -- has put in his retirement papers, city officials confirmed

Castagna, a 53-year-old health officer who is being investigated for possibly issuing more food vendor licenses than the city allows, put in his request to retire Aug. 26, according to Jennifer Morrill, a spokeswoman for Jersey City Mayor Jerramiah Healy.

The next day, police seized additional records from his office, police told The Jersey Journal last week.

The retirement, which is not yet approved, is slated to be considered at the Sept. 16 meeting of the City of Jersey City Employees Retirement System board, Morrill said.

Castagna has worked for the city for 29 years and currently earns $105,164. If approved, his pension would be $60,740 a year, Morrill said.

Castagna will also receive a one-time payment for unused vacation and for 80 percent of unused sick time, said Jersey City Business Administrator Brian O'Reilly. Officials have not finished calculating how much this lump sum will be but said they would release the final figure tomorrow, Morrill said.

Castagna was arrested by the FBI July 23 and charged with taking a $5,000 payment from FBI informant Solomon Dwek, who was posing as a developer. The health officer was supposed to pass along the money to the campaign of Michael Manzo, a firefighter running for the City Council in Ward B, according to the complaint.

Jersey City Police Chief Tom Comey refused to say more on their investigation -- which began Aug. 8 -- because it is an ongoing investigation, but a source familiar with the investigation said that records indicate that Castagna gave out more than 100 additional licenses.

[MCA™]

JJ:


First the FBI sting, now Castagna probed over food vendor permits
Friday, August 28, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

Charged last month in the massive FBI corruption sting, suspended Jersey City Health Officer Joseph Castagna is now the target of a local police investigation, officials have confirmed.

Police are investigating the possibility Castagna may have issued more food vendor licenses than the 175 allowed, said Police Chief Thomas Comey.

Castagna was arrested July 23 and charged with taking a $5,000 payment from FBI informant Solomon Dwek, who was posing as a developer. Castagna was supposed to pass along the money to the campaign of Michael Manzo, a firefighter running for the City Council in Ward B, according to the complaint.

Comey refused to say more because it is an ongoing investigation, but a source familiar with the investigation said that records indicate that Castagna gave out more than 100 additional licenses.

The licenses used to be issued by clerks at the city Health Department but it appears that Castagna took control of the process, the source said.

The "irregularities with the permits," as Comey put it, were discovered when the FBI subpoenaed all relevant records from Castagna's office, the source said.

Some 150 licenses a year are permitted for "itinerant eating and drinking establishments" where food is prepared on-site; and 25 licenses a year are permitted for "itinerant catering establishments" where food is prepared elsewhere. The annual fees for the itinerant eating and drinking licenses are $250 and $100 for itinerant catering licenses.

It is not clear whether the extra licenses were sold intentionally or the problem is sloppy record keeping, Comey said. Nor is it clear if Castagna kept the money from the additional licenses or gave it to the city, a source said.

Police have been working on the case since Aug. 8 and collected records from Castagna's office on Wednesday, Comey said.

Several vendors said yesterday they weren't aware of any irregularities, but one said he has noticed an increase in the number of vendors.

"We see new trucks every day," said the vendor, who didn't want to be identified.

The vendor said he tried to buy a license from the city in the spring, but was told there were none available.

"But I look at all those new trucks and I wonder, how did they get their licenses," he said.

Jersey City Mayor Jerramiah Healy and Harry Melendez, the city's director of Health and Human Services declined to comment.

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