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Thursday, August 11, 2005Past Issues - S | M | T | W | T | F | S
 
South Jersey

Saturday, June 9, 2001
Milan's ex-partner gets house arrest

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  • Special Report: The Camden Investigation

  • By RENEE WINKLER
    Courier-Post Staff
    CAMDEN

    A former business partner of ex-Camden Mayor Milton Milan, described by federal prosecutors as "the model of cooperation," was sentenced Friday to less than five months' house arrest and ordered to repay companies he defrauded by staging a burglary at his office.

    Gholam H. "Joseph" Darakhshan, 32, of Mount Laurel, had owned Atlas Contracting with Milan when he violated IRS regulations to cover up the source of cash used to pay the premium for a performance bond. Milan had borrowed the cash from Jose "JR" Rivera, and instructed Darakhshan to divvy up the money among family members who would write checks for amounts less than $10,000. The checks then were deposited and used to pay the performance bond premium. The IRS requires banks and merchants to report all cash transactions of $10,000 or more.

    Rivera was convicted of operating a major drug ring in Camden and is awaiting sentencing.

    Darakhshan also had lied to his insurance carrier about a break-in at the company's office that he had arranged.

    Assistant U.S. Attorney Renee Bumb said Friday that although Darakhshan did not admit his wrongdoing when first approached by federal investigators who had targeted Milan in a corruption probe, he later cooperated fully. He led them through financial records of Atlas Contracting and was truthful in intense questioning by the prosecution and during cross-examination at Milan's trial last fall, she said.

    Bumb had asked U.S. District Judge Jerome B. Simandle to depart from federal sentencing guidelines that would have required a prison term of 12 to 18 months for Darakhshan. He initially imposed a six-month term of house arrest, but granted a request from defense attorney Jeffrey Zucker to credit the defendant for the 40 days he was detained after his arrest.

    Darakhshan, who owns a used car dealership in Woodlynne, told Simandle he was humiliated by his actions, which took place when he was 24.

    "I was brought up in a very strict family. My family taught me better than this," he said.

    Simandle ordered Darakhshan to pay a $15,000 fine over five years of probation and to repay Selective Insurance Company and AT&T a total of $11,289. The restitution could be reduced if Milan, who will be sentenced on Friday, shares in the repayment.



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