A town official pleaded guilty last week to helping rig the selection process by which contractors competed to replace sidewalks and rehabilitate affordable housing in town.
Washington Borgono, 65, an officer with a local government agency that received grant funds from the U.S. Department of Housing and Urban Development, pleaded guilty on April 5 by admitting he rigged the selection process for contractors to do federally funded sidewalk replacement repairs and residential rehabilitation projects. He gave information to help certain contractors become the chosen bidders and encouraged some to submit fake bids in order to manipulate the process, according to the U.S. Attorney’s Office press release.
U.S. Attorney Paul Fishman said in the press release that this caused $40,000 to $95,000 in losses.
He is the fifth person to plead guilty in the scheme since last year.
The residential rehabilitation program assisted those with low to moderate incomes in Union City with housing rehabilitation. The federal sidewalk replacement program was meant to replace damaged sidewalks in low to moderate income areas of Union City.
Borgono told certain contractors to bid a specific amount on sidewalk replacement and housing rehabilitation projects, the release said.
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Sentencing is scheduled for July 19.
Borgono has worked as a compliance officer with UCCDA from April 2007 to Feb. 2013.
According to the release, from 2007 to 2013, Borgono told certain contractors to bid a certain amount on sidewalk replacement and housing rehabilitation projects to ensure they’d get the projects, according to the U.S. Attoney’s press release. He also enticed certain contractors to submit false or high bids at times to help him award the work to the bidders of his choice.
According to the U.S. Attorney’s press release, other contractors like Leovaldo Fundora from Guttenberg, Joseph Lado of Fort Lee, Stanley Parzych of Jersey City, and UCCDA Inspector Johnny Garces were involved and previously pleaded guilty to criminal charges. All four of them await sentencing.
Lado owned his own construction company in Union City, Parzych owned a paving contracting company in Jersey City, and Fundora owned a general contracting company in Guttenberg.
The charge of converting and misapplying government funds carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross of gain or loss associated with the offense, the release said.
Samantha Meyers can be reached at samantham@hudsonreporter.com .