USA0#1999R01037

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA v. MILTON MILAN

Hon. United States District Judge
Crim. No. 00CR194

18 U.S.C. 371, 1341, 1343, 1346, 1951, 1952, 1956, 1957 1957(a) and 2; 31 U.S.C. 5324 (a) (3)

The Grand Jury, in and for the District of New Jersey, sitting at Camden, charges that:

Defendant

1. On or about November 7, 1995, defendant MILTON MILAN was elected as a member of the City Council of the City of Camden, New Jersey and was sworn in on or about January 1, 1996. As a City Council member, defendant MILTON MILAN considered and voted on financial matters affecting the City of Camden, such as budget appropriations and the award of contracts to vendors doing business with the City of Camden.

2. On or about January 1, 1996, defendant MILTON MILAN was elected President of the City Council. As the President of City Council, defendant MILTON MILAN presided over all City Council meetings and deliberations.

3. On or about May 13, 1997, defendant MILTON MILAN was elected as the Mayor of the City of Camden. On or about July 1, 1997, defendant MILTON MILAN began serving his four-year term as the Mayor of the City of Camden. Defendant MILTON MILAN has served as Mayor through the date of this indictment.

Public's Right to, and Defendant's Duty of, Honest Services

4. At all times relevant to Counts 1 to 8 of this Indictment, the City and citizens of Camden had an intangible right to the honest services of their elected public officials. As an elected public official for the City of Camden, the defendant MILTON MILAN therefore owed the City and the citizens of Camden a duty to: (a) refrain from receiving bribes and payments designed to (i) improperly affect the performance of official duties, or (ii) coax favorable official action or inaction; and (b) disclose conflicts of interest and other material information in matters over which he had authority and discretion that resulted in his direct or indirect personal gain.

Philadelphia LCN Family Doing and Seeking Business from Camden

5. At all times relevant to Counts 1 to 8 of this Indictment:

(a) La Cosa Nostra ("LCN") was a national criminal organization that operated through sub-groups known as "Families," one of which was known as the Philadelphia LCN Family which was based in Philadelphia and operated in Pennsylvania and New Jersey. Certain individuals and entities associated with the Philadelphia LCN Family were involved in business ventures that could profit from favorable treatment by defendant MILTON MILAN. The Philadelphia LCN Family sought to make money for its members and associates by seeking business with the City of Camden and official favors from defendant MILTON MILAN.

(b) Ralph Natale was the Boss of the Philadelphia LCN Family from 1994 to 1998. As Boss, Ralph Natale was entitled to receive a portion or "cut" of monies derived from business generated by the Philadelphia LCN Family. Ralph Natale caused payments of money and other benefits to be paid to defendant MILTON MILAN on behalf of the interests of the Philadelphia LCN Family.

(c) A businessman who was associated with Ralph Natale and the Philadelphia LCN Family ("Natale's associate") generally made the direct payments of money and other benefits from the Philadelphia LCN Family to defendant MILTON MILAN. Natale's associate was affiliated with a wholesale seafood company located in Gloucester, New Jersey. In 1998, Natale's associate formed a consulting company which maintained an office at the Sears Building in Camden, New Jersey.

(d) Individual No. 1 was a contractor and the owner of businesses that included a certified minority business enterprise located in Blackwood, New Jersey. In 1998, Natale's associate and Individual No. 1 formed an electrical contracting company that maintained an office at the Sears Building in Camden, New Jersey.

(e) Individual No. 2 had interests in numerous business ventures involving Ralph Natale, Natale's associate, Individual No. 1 and others. Individual No. 2 sought to obtain business in the City of Camden for ventures associated with Ralph Natale, Natale's associate, Individual No. 1 and others through defendant MILTON MILAN.

(f) Individual No. 3 formed and financed various business ventures affiliated with Ralph Natale, Natale's associate and others, including construction companies and a new bar/restaurant in Cherry Hill, New Jersey.

Vendors/Contractors Doing and Seeking Business from Camden

6. At all times relevant to Counts 1 to 8 of this Indictment, the following companies located in the City of Camden contracted, and were seeking contracts, with the City of Camden, and were seeking official favors from defendant MILTON MILAN:

(a) Contractor No. 1 was in the business of towing impounded and abandoned vehicles in the City of Camden.

(b) Contractor No. 2 was in the recycling business.

(c) Contractor No. 3 was in the business of restoring residential and commercial properties.

(d) Contractor No. 4 was in the business of providing installation and maintenance on heating and air-conditioning systems.

Scheme and Artifice to Defraud Public of Honest Services

7. From in or about March, 1996 to in or about April, 1999, in Camden County, in the District of New Jersey, and elsewhere, defendant MILTON MILAN knowingly and willfully did devise and intend to devise a scheme and artifice to defraud the City of Camden and its citizens of the right to defendant MILTON MILAN'S honest services in the affairs of the City of Camden.

8. The object of this scheme and artifice to defraud was for defendant MILTON MILAN to receive significant personal benefits, including cash, vacation trips, dinners, automobiles and home improvements, from individuals and entities doing, and seeking, business with the City of Camden and seeking official favors from defendant MILTON MILAN in matters over which he had authority and discretion, and to intentionally not disclose to, and conceal from, the City of Camden and its citizens material information namely, defendant MILTON MILAN's receipt of these benefits.

Concealed Payments and Benefits from the Philadelphia LCN Family

9. It was a part of this scheme and artifice to defraud that:

a. Defendant MILTON MILAN accepted payments of money, travel expenses and other benefits from associates of the Philadelphia LCN Family. The payments were directed by Philadelphia LCN Family Boss Ralph Natale, but were usually conveyed by others, including Natale's associate, in part to conceal from the public that defendant MILTON MILAN had dealings with Ralph Natale. In exchange for such payments, on a continuing basis, defendant MILTON MILAN agreed to assist in obtaining contracts and other business with the City of Camden, and did official favors for persons associated with the Philadelphia LCN Family.

b. Defendant MILTON MILAN accepted payments of money and other benefits from the Philadelphia LCN Family beginning in approximately March, 1996 and continuing on a frequent basis to approximately June, 1998. The total value of such money and other benefits was in excess of $30,000 and ranged from cash payments of between approximately $500 to $3,000 to an approximately $1,433 payment toward a Florida vacation for defendant MILTON MILAN and his longtime girlfriend on or about January 2, 1998.

c. Defendant MILTON MILAN concealed the fact that he had received these benefits given by the Philadelphia LCN Family from the City of Camden and its citizens.

Concealed Payments and Benefits from Camden Vendors and Suppliers

10. It was a further part of this scheme and artifice to defraud that:

Automobiles from Contractor No. 1

a. On or about September 7, 1995, Contractor No. 1 entered into a one-year contract with the City of Camden to provide towing services in the city.

b. On or about October 11, 1996, the City Council of the City of Camden rejected bids from Contractor No. 1 and its competitor and directed each to resubmit revised bids. Defendant MILTON MILAN was in attendance at this meeting. Contractor No. 1, however, continued to provide towing services to the City of Camden until the City Council acted upon and approved a new contract.

c. In or about November, 1996, defendant MILTON MILAN solicited a principal of Contractor No. 1 to obtain an automobile or defendant MILTON MILAN.

d. On or about December 16, 1996, defendant MILTON MILAN received a 1990 Chevrolet Lumina Van ("the Van") from a principal of Contractor No. 1 worth between approximately $3,500 and $6,850.

e. To conceal from the public the fact that defendant MILTON MILAN was receiving a free automobile from an entity that had a contract, and was seeking a new contract, with the City of Camden, defendant MILTON MILAN agreed with the owner of Contractor No. 1 to pass title to the Van to a third party who, in turn, would transfer the title to the name of defendant MILTON MILAN's longtime girlfriend. On or about November 22, 1996, a principal of Contractor No. 1 transferred title to the third party. On or about December 5, 1996, the third party transferred title to the name of defendant MILTON MILAN's longtime girlfriend.

f. In or about September, 1996, at defendant MILTON MILAN's request, a principal of Contractor No. 1 also gave defendant MILTON MILAN the use of the company's 1996 GMC Jimmy truck. Defendant MILTON MILAN used the truck as his own vehicle until approximately June, 1997. Contractor No. 1 continued to make the approximately $443 monthly lease payments on the vehicle during this time.

g. On or about March 27, 1997, the City Council of the City of Camden awarded a contract to Contractor No. 1 for Contractor No. 1 to provide towing services for a term of two years at a contract price not to exceed $480,000 (the "1997 Contract").

h. On or about August 4, 1997, defendant MILTON MILAN executed, on behalf of the City of Camden, the 1997 Contract providing towing services for a term of two years.

i. Defendant MILTON MILAN concealed the fact that he had received these benefits from Contractor No. 1 detailed in paragraphs 10d to 10f from the City of Camden and its citizens.

Property improvements and Carpet from Contractor No. 2

j. In or about April, 1998, Contractor No. 2 began its application process with the Camden County Solid Waste Advisory Council ("CCSWAC") to operate as a Materials Recovery Facility ("MRF") in Camden, New Jersey, for the purpose of accepting commingled waste materials for recycling. As part of that application process, Contractor No. 2 was required to obtain the approval of first, the CCSWAC and the Camden County Board of Chosen Freeholders, and second, the State of New Jersey Department of Environmental Protection (the "DEP"). Approval of Contractor No. 2's application by the local authorities, including defendant MILTON MILAN, was material to the success of the application.

k. In or about May, 1998, defendant MILTON MILAN solicited a principal of Contractor No. 2 to do some home improvement work at MILAN'S personal residence in Camden, New Jersey. Contractor No. 2 demolished a garage and removed a tree from defendant MILTON MILAN's residence. Defendant MILTON MILAN did not pay, and was not charged, for the approximately $3,000 to $4,000 in work costs. By not charging defendant MILTON MILAN, the principal of Contractor No. 2 expected that defendant MILTON MILAN would support Contractor No. 2's application to operate as an MRF.

l. In or about May, 1998, a principal of Contractor No. 2 paid a carpet installation company approximately $700 to install carpeting at defendant MILTON MILAN's personal residence.

m. On or about September 3, 1998, defendant MILTON MILAN, in his capacity as Mayor of Camden, wrote a letter to the principal of Contractor No. 2 supporting Contractor No. 2's request to operate as an MRF. This letter was intended to be, and was, in fact, included in Contractor No. 2's application to the CCSWAC and DEP. Defendant MILTON MILAN did not disclose that Contractor No. 2 had provided free services at, and free carpeting in, defendant MILTON MILAN's personal residence earlier that year.

Free Labor on Window Installation from Contractor No. 3

n. In or about late July, 1998, defendant MILTON MILAN sought to have new windows installed at his personal residence. On or about August 12, 1998, Contractor No. 3 provided defendant MILTON MILAN with an estimate for the installation of these windows. The estimate indicated that Contractor No. 3 would charge defendant MILTON MILAN for materials only, and not charge defendant MILTON MILAN for labor costs associated with the installation of the windows. In part, a principal of Contractor No. 3 expected that by not charging defendant MILTON MILAN for the labor costs, defendant MILTON MILAN would take steps necessary to ensure that Contractor No. 3's bills for work done for the City of Camden would be paid more expeditiously.

o. On or about August 14, 1998, approximately five days after Contractor No. 3's estimate described in paragraph 10n above, defendant MILTON MILAN arranged for a meeting at City Hall with himself, the principals of Contractor No. 3, the Camden Housing Services Department Director and others in order to expedite the slow payment of the unpaid bills to Contractor No. 3.

p. From in or about September, 1998 to in or about December, 1998, Contractor No. 3 completed the installation of approximately 25 windows at the personal residence of defendant MILTON MILAN. Defendant MILTON MILAN did not pay, nor did Contractor No. 3 charge, approximately $1,800 in labor costs necessary to complete the work.

q. Defendant MILTON MILAN did not disclose to the Housing Director and the City of Camden and its citizens that Contractor No. 3 had promised not to charge defendant MILTON MILAN for approximately $1,800 in labor costs in connection with the window installation at defendant MILTON MILAN's personal residence and that defendant MILTON MILAN actually had received this benefit.

Free Air Conditioning from Contractor No. 4

r. In or about May, 1998, Contractor No. 4 installed an air conditioning system at defendant MILTON MILAN's personal residence at defendant MILTON MILAN's request. Defendant MILTON MILAN did not pay for this installation which cost, in total, approximately $3,345. Defendant MILTON MILAN did not disclose to the City of Camden and its citizens that Contractor No. 4 provided these free services at his personal residence.

s. Contractor No. 4 had a contract with the City of Camden for an amount not to exceed $450,000 for the servicing and maintenance of air conditioning and/or heating systems at various locations within the City of Camden for a period of three years commencing on or about June 11, 1997.

False Financial Disclosure Statements

11. It was a further part of this scheme and artifice to defraud that defendant MILTON MILAN concealed his financial relationship with the Philadelphia LCN Family and vendors and contractors from the public, by intentionally failing to disclose money and other benefits received from these individuals and entities on his Local Government Ethics Law Financial Disclosure Statements ("Financial Disclosure Statements") for the reporting years 1996, 1997 and 1998. The Financial Disclosure Statements were filed with the State of New Jersey, Department of Community Affairs, Division of Local Government Services in Trenton, New Jersey and also were kept on file in the Municipal Clerk's Office, City Hall, Camden, New Jersey. Defendant MILTON MILAN was required to disclose all of these benefits described above.

12. On or about the dates listed below, in Camden County, in the District of New Jersey, and elsewhere, for the purpose of executing and attempting to execute the scheme and artifice to defraud, defendant MILTON MILAN and others, knowingly and willfully placed and caused to be placed in a post office and authorized depository for mail, and caused to be delivered thereon, certain mail matter, to be delivered by the United States Postal Service, and transmitted and caused to be transmitted in interstate commerce by means of wire communications certain signs, signals and sounds as described below:

Count	Date	Mailing or Wire Communication
1	May 12, 1997	A Local Government Ethics Law, Financial Disclosure Statement for 1996, addressed to Department of Community Affairs, Trenton, New Jersey by mail.
2	December 2, 1997	A telephone call from Philadelphia, Pennsylvania, to Camden, New Jersey, from Natale's associate to defendant MILTON MILAN.
3	January 2, 1998	A fax from a booking agency in West Palm Beach, Florida to a travel agency, in Pennsauken, New Jersey, for golf arrangements pertaining to defendant MILTON MILAN.
4	April 29, 1998	A Local Government Ethics Law, Financial Disclosure Statement for 1997, addressed to Department of Community Affairs, Trenton, New Jersey by mail.
5	September 3, 1998	A letter from defendant MILTON MILAN to Contractor No. 2 supporting the MRF by mail.
6	November 2, 1998	A letter from CCSWAC to the DEP approving the MRF by mail.
7	November 30, 1998	A fax from a company in Philadelphia, Pennsylvania, to Contractor No. 3 confirming order of supplies.
8	April 11, 1999	A Local Government Ethics Law, Financial Disclosure Statement for 1998, addressed to Department of Community Affairs, Trenton, New Jersey by mail.

In violation of Title 18, United States Code, Sections 1341, 1343, 1346 and 2.