Construction company pleads guilty to rigging bids to get more than $70K in federal tax dollars through City Hall in Union City
UNION CITY — According to a press release from the U.S. Attorney General’s office, a Union City contractor admitted on Wednesday to rigging the contractor selection process for projects run by the Union City Community Development Agency (UCCDA), which is funded by the federal department of Housing and Urban Development (HUD). The bid rigging cost losses of at least $70,000, U.S. Attorney Paul J. Fishman said.
Two inspectors who may have been in on the scheme are still working there, according to a press report.
Joseph Lado, 66, of Fort Lee, New Jersey, pleaded guilty to one count of conspiring with agents of the UCCDA and a Jersey City, New Jersey, contractor to obtain money from the agency by fraud. Lado entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court. According to the press release:
Between June 2007 and September 2010, Lado owned Lado Construction in Union City. There were two individuals (Inspector one and Inspector two) at the UCCDA, a government agency that received funds from the U.S. Department of Housing and Urban Development under a federal block grant. The funding was used for home improvement projects and sidewalk replacement projects, among other things.
Lado conspired with another individual who owned a paving contracting company in Jersey City, New Jersey (the contractor), Inspector one and Inspector two to rig the competitive process by submitting false and materially misleading proposals for contracts to perform sidewalk replacement and residential rehabilitation. The process was rigged to favor of certain contractors, including Lado Construction. Lado caused the contractor to provide Lado with phony proposals from the contractor’s company that were higher than Lado’s own proposals. He also caused the contractor to provide Lado with blank proposal forms from the contractor’s company that Lado later completed with the help of another, listing amounts that were higher than Lado Construction’s proposals for the same work. Under both of those scenarios, Lado would then submit the contractor’s phony higher-priced proposals and his own to the UCCDA in order to obtain projects, and ultimately, HUD grant funds, from the UCCDA for the completion of the projects. Lado would also, at the request of Inspector one and Inspector two, provide both inspectors with phony proposals for amounts higher than his competitors for projects that the inspectors had already decided to award to other contractors.
The conspiracy charge to which Lado pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Lado is scheduled to be sentenced on March 24, 2015.
Mayor Brian Stack, when interviewed for NJ.com, was quoted as saying he was “frustrated and embarrassed” by the fraud.
He also said that the two officials who may have conspired in the plot, who were still at City Hall, should resign.
Union City is no stranger to investigations or allegations. Three years ago, the attorney general’s office investigated the then-police chief (who retired soon after) after a News 12 report alleged that he got paid to do off-duty security detail that he did not show up for. He was earning more than $34,000 per year extra for the off-duty work. The report also showed police superiors may have been paid twice for off-duty security shifts.
Also in 2011, Stack’s ex wife was accused in a “Shame on You” TV report of using city gas in her work vehicle for personal use. She ended up reimbursing the city. Stack said he didn’t maintain contact with her and that he didn’t like the finger being pointed at him in press reports. He said, ““While you know I am utterly disgusted by the actions of my ex-wife, it is evident that outside political forces continuously use means to attack me
Longtime West New York schools superintendent will retire July 1
West New York Superintendent of Schools John Fauta said in a newspaper article this week that after 22 years with the school district, he’ll retire July 1.
Fauta said on NJ.com, “I’m 69 years old. It’s just time.”
Fauta leaves at a time in which Mayor Felix Roque has been accused by the state of meddling in school district business for political reasons. However, in November, a team backed by the mayor won all of the open school board seats.
Fauta told reporters that his decision was unrelated to the election or leadership.
Roque released a statement commending Fauta’s service to the district, and saying the district will conduct a national search for a replacement.
Fauta taught at Memorial High School and was principal of School No. 3.
One dead in West New York car crash
A man was killed and a woman severely injured in a car crash in West New York last weekend.
“At approximately 2:20 a.m. on Saturday [Dec. 6], the West New York Police, the Hudson County Sheriff’s Office, the North Hudson Regional Fire Dept, WNY EMS and Paramedics from JCMC responded to a motor vehicle crash on Hillside Road (Anthony M. Defino Way) between River Road and Blvd East. WNY Police arrived first and found one of the drivers pinned in a car and very critically injured,” according to a press release.
Police said a 33-year-old Clifton woman was driving her 2008 Silver Toyota Highlander west on Hillside from River Road, when at a point midway between Blvd. East and River Road, a 2002 Silver Acura, driven by Fernando Tlatelpa, age 27, of Jersey City, who was heading eastbound, lost control in a curve, slid sideways, crossed over double yellow lines and into the path of the woman’s vehicle, where they collided. The impact sent the Acura through a fence and into the mountainside. Tlatelpa had to be extricated from the vehicle and he was transported by EMS to the Jersey City Medical center where he was pronounced dead, said Sheriff Frank Schillari.
American Dream mall reportedly lining up big tenants
The once-troubled American Dream mega-mall in the Meadowlands is attracting a strong lineup of retail tenants, according to reports. NJ.com stated it obtained a brochure from Alberta-based developer Triple Five listing retailers planning to open stores in American Dream, including Victoria’s Secret, The Gap, Saks Fifth Avenue, and Lord & Taylor. The brochure also states that FAO Schwarz will be moving from its Manhattan headquarters to the Meadowlands.
Among the other attractions planned for the American Dream facility are an indoor water park, an amusement park, an aquarium, Imax theaters, and a permanent Cirque du Soleil theater.
American Dream had a strong presence at the International Council of Shopping Centers’ annual retail convention in the Jacob Javits Convention Center over the weekend. In addition to being a corporate sponsor of the convention, Triple Five took out ads at all entrances to the Javits Center and in the convention program, stating “Shop American Dream. Opening Holiday 2016.”
Nj.com reported that Triple Five listed 50 retailers by name as committed to American Dream, with letters of intent to lease from 155 retailers and 93 completed leases from unspecified retailers. However, some at the convention expressed doubts that the project will actually come to fruition as planned, citing the failure of two other developers to successfully launch a mall at the same location. Retailers who had heard sales pitches for a Meadowlands mall from those previous developers might feel a sense of déjà vu hearing similar hype from Triple Five. Funding for the project, slated to cost $2 billion, remains unresolved as well, with questions remaining about the issuance of bonds to pay for part of the construction costs.
Youth Detention Center to close
Hudson County will house its youth offenders in Union County as the result of an agreement signed this week. This will result in the closing of the Youth Detention Center in Secaucus, and the reassignment of the 68 employees. The agreement would transport youths to a facility in Union County, and allow the county to use the facility for other uses. The change would occur in January, and would save the county about $5 million over two years.
Free nature walk on Dec. 16
The free two-hour third-Tuesday-of-the-month guided nature walk in DeKorte Park includes a stretch of nearby Disposal Road, one of the very best places to watch (and photograph) winter raptors in the entire region. The walk takes place at 10 a.m. on Tuesday, Dec. 16. Meet just inside the Meadowlands Environment Center, 2 DeKorte Park Plaza, Lyndhurst. The walk is held by the N.J. Meadowlands Commission and the Bergen County Audubon Society. Check meadowblog.net for last-minute updates and weather advisories. To RSVP, call (201) 230-4983.
Join the Winter Solstice Celebration on Dec. 18
Prepare to welcome the first day of winter. Learn about the shortest day of the year and enjoy solstice themed food and drink on Thursday, Dec. 18 from 7 to 9 p.m. at the NJMC Science Center, 3 DeKorte Park Plaza, Lyndhurst. Adults must accompany children. Cost is $5 per person, $4 for Meadowlands Environment Center members. Registration is recommended and appreciated. To register, visit www.njmeadowlands.gov/ec or call (201) 460-8300.