Hudson Reporter Archive

Second contractor pleads guilty to scheme to get federal $$$ through City Hall in Union City

UNION CITY — According to a press release from the U.S. Attorney General’s office, a second local 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.
A press release issued Wednesday said:

“The owner of a Guttenberg, New Jersey, contracting company admitted rigging the selection process for projects run by the Union City Community Development Agency (UCCDA), causing losses of at least $120,000, U.S. Attorney Paul J. Fishman announced.
Leovaldo Fundora, 53, of Guttenberg, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to … one count of embezzling, stealing, purloining, and converting to his own use and the use of another, money from the U.S. Department of Housing and Urban Development (HUD).
According to documents in this case and statements made in court:
The UCCDA receives funding from HUD under a federal block grant that provides money for home improvement, sidewalk replacement and other projects. Between May 2007 and September 2011, Fundora owned Falcon Remodeling Inc., a general contracting company.
Fundora colluded with two UCCDA inspectors and two other contractors to attain HUD grant funds by having the contractors complete phony proposals with prices higher than those submitted by Falcon. Fundora then submitted these phony proposals and Falcon’s proposals to the UCCDA in order to improperly obtain home improvement projects and sidewalk replacement projects.
On two occasions in June 2010, Fundora submitted phony proposals from the other two contractors pricing sidewalk replacement projects at Kerrigan Avenue and 13th St. in Union City for $4,200. As a result, Falcon secured both projects for $3,900.
The charge to which Fundora pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for April 22, 2015.”

Two inspectors who may have been in on the scheme are still working at Town Hall, a press report said last month.

Last month, Joseph Lado, 66, of Fort Lee, New Jersey, pleaded guilty to one count of conspiring with agents of the UCCDA and a Jersey City 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.

At City Hall

Mayor Brian Stack, when interviewed for NJ.com last month, 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 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. Stack said he had no knowledge of the situation.
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.”

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