WILLIS & YOUNG, P.C. 921 Bergen Avenue, Suite 525 Jersey City, New Jersey 07306 (201)-659-2090 Attorney for the Defendant, L. HARVEY SMITH ______________________________________________________________________ UNITED STATES OF AMERICA, Plaintiff, vs. L. HARVEY SMITH, Defendant, _________________________________ :: :: :: :: :: :: :: :: :: :: :: :: UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY CR. NO: 10-83 CRIMINAL ACTION NOTICE OF MOTION TO DISMISS INDICTMENT TO: CLERK US District Court 50 Walnut Street Newark, NJ 07102 SIR/MADAM: PLEASE TAKE NOTICE that the undersigned Attorney for the Defendant, L. Harvey Smith, hereby moves, before the United States District Court of New Jersey, for an Order: 1) Dismissing all Hobbs Act extortion counts in the Indictment; 2) Dismissing the Federal Program Bribery Charge under 18 U.S.C. § 666; 3) Granting an evidentiary hearing on his entrapment defense or, alternatively, permit him to explore on cross-examination at trial all areas related to his entrapment defense; 4) Dismissing the indictment on Due Process grounds based on the Government’s outrageous misconduct; 5) Granting discovery and an evidentiary hearing regarding the grand jury’s investigation of this case; Case 2:10-cr-00083-JLL Document 30 Filed 09/09/10 Page 1 of 4 PageID: 70
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WILLIS & YOUNG, P.C. 921 Bergen Avenue, Suite 525 Jersey City, New Jersey 07306 (201)-659-2090 Attorney for the Defendant, L. HARVEY SMITH ______________________________________________________________________ UNITED STATES OF AMERICA, Plaintiff, vs. L. HARVEY SMITH, Defendant, _________________________________
:: :: :: :: :: :: :: :: :: :: :: ::
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
CR. NO: 10-83
CRIMINAL ACTION
NOTICE OF MOTION TO DISMISS INDICTMENT
TO: CLERK US District Court 50 Walnut Street Newark, NJ 07102
SIR/MADAM:
PLEASE TAKE NOTICE that the undersigned Attorney for the
Defendant, L. Harvey Smith, hereby moves, before the United States
District Court of New Jersey, for an Order:
1) Dismissing all Hobbs Act extortion counts in the Indictment;
2) Dismissing the Federal Program Bribery Charge under 18
U.S.C. § 666; 3) Granting an evidentiary hearing on his entrapment
defense or, alternatively, permit him to explore on cross-examination at trial all areas related to his entrapment defense;
4) Dismissing the indictment on Due Process grounds based
on the Government’s outrageous misconduct; 5) Granting discovery and an evidentiary hearing regarding
the grand jury’s investigation of this case;
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6) Granting a bill of particulars; 7) Compelling the Government to produce at this time
discovery materials under Rule 16, 404(b) evidence, trial exhibits, Brady/Giglio evidence, and all Jencks materials;
8) Compelling the Government to provide a list of all co-
conspirator statements that will be introduced in their case-in-chief and scheduling a James hearing, a minimization hearing, and a hearing to determine the authenticity and admissibility of the recorded conversations;
9) Compelling the Government to provide additional
discovery, including but not limited to the most recent and updated version of the Department of Justice’s guidelines regarding the use of confidential informants and/or any other official guidelines that governed the responsibilities and/or obligations between the Government and Solomon Dwek, in his capacity as cooperating witness; and
10) Permitting L. Harvey Smith to file additional motions
as necessary. __/s/ Peter R. Willis_ PETER R. WILLIS, ESQ. Attorney for Defendant DATED: September 8, 2010
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WILLIS & YOUNG, P.C. 921 Bergen Avenue, Suite 525 Jersey City, New Jersey 07306 (201)-659-2090 Attorney for the Defendant, L. HARVEY SMITH ________________________________________________________________________ UNITED STATES OF AMERICA, Plaintiff, vs. L. HARVEY SMITH, Defendant, ___________________________________
::::::::::::::::::::::::
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
CR. NO. 10-83
CRIMINAL ACTION
ATTORNEY CERTIFICATION
PETER R. WILLIS, ESQ., an attorney at law of the State of New
Jersey, with offices located at 921 Bergen Avenue, Suite 525, Jersey
City, New Jersey 07306, hereby certifies the following:
1. I am the attorney of record in the above-captioned matter and am familiar with the facts of the case.
2. I have served this Motion, Certification, Proposed form of Order
and Brief upon Assistant United States Attorney Jenny Kramer.
3. I HEREBY CERTIFY that the foregoing statements made by me are true
to the best of my knowledge. I am aware that if any of the
foregoing statements made by me are willfully false, I am subject
to punishment.
Respectfully submitted, _/s/ Peter R. Willis______ PETER R. WILLIS, ESQ. ATTORNEY FOR THE DEFENDANT L. Harvey Smith Dated: September 8, 2010
Case 2:10-cr-00083-JLL Document 30 Filed 09/09/10 Page 3 of 4 PageID: 72
WILLIS & YOUNG, P.C. 921 Bergen Avenue, Suite 525 Jersey City, New Jersey 07306 (201) 659-2090 Attorney for Defendant, L. HARVEY SMITH ________________________________________________________________________ UNITED STATES OF AMERICA, Plaintiff, vs. L. HARVEY SMITH, Defendant(s) _________________________________
:: :: :: :: :: :: :: :: :: :: ::
UNITED STATES DISTRICT COURT,
DISTRICT OF NEW JERSEY
CRIM. NO. 10-83
PROPOSED ORDER
THIS matter having been opened to the Court by Peter R. Willis, Esq.,
of Willis & Young, P.C. attorney for defendant L. Harvey Smith
requesting an Order Dismissing the Indictment and the United States
Attorney, by Jenny Kramer, Assistant United States Attorney, appearing
and for good cause shown,
IT IS on this day of September, 2010;
ORDERED that for the reasons set forth, Defendant L. Harvey Smith’s
Motion is hereby Granted:
______________________________ HON. JOSE L. LINARES, USDJ
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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY
INDICTMENT NO. 10-83 UNITED STATES OF AMERICA,: CRIMINAL ACTION : Plaintiff, : : : : L. HARVEY SMITH, : : Defendant :
:
BRIEF ON BEHALF OF DEFENDANT
L. HARVEY SMITH
Willis & Young Peter R. Willis, Esq. 921 Bergen Avenue, Suite 525 Jersey City, NJ 07306 201-659-2090 (telephone) 201-659-1964 (fax) On the Brief: Peter R. Willis, Esq. AnnMarie Harrison, Esq.
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TABLE OF CONTENTS
TABLE OF AUTHORITIES --------------------------------------- 1 PRELIMINARY STATEMENT -------------------------------------- 4 PROCEDURAL HISTORY AND STATEMENT OF FACTS ------------------ 7 LEGAL ARGUMENT --------------------------------------------- 30
POINT ONE --------------------------------------------- 30
THE HOBBS ACT EXTORTION COUNTS SHOULD BE DISMISSED BASED ON THE STATUTE’S PLAIN LANGUAGE AND ITS VAGUENESS AS APPLIED TO SMITH’S CASE.
POINT TWO --------------------------------------------- 41
THE SECTION 666 BRIBERY COUNT SHOULD BE DISMISSED BECAUSE IT WAS NOT INTENDED TO APPLY TO THE FACTS ALLEGED HERE AND REQUIRES PROOFS THAT DO NOT EXIST IN THIS CASE.
POINT THREE ------------------------------------------- 45
ALTERNATIVELY, SMITH’S ENTRAPMENT DEFENSE MUST BE FLESHED OUT AT A PRETRIAL EVIDENTIARY HEARING OR, AT LEAST, RULED AN APPROPRIATE TOPIC FOR BROAD CROSS-EXAMINATION AT TRIAL.
POINT FOUR -------------------------------------------- 50
THE CONDUCT OF THE GOVERNMENT AND ITS AGENTS IS SO OUTRAGEOUS THAT IT VIOLATES SMITH’S CONSTITUTIONAL DUE PROCESS RIGHTS.
POINT FIVE -------------------------------------------- 56
DISCOVERY AND AN EVIDENTIARY HEARING RELEVANT TO THE GRAND JURY INVESTIGATION OF THIS CASE IS NECESSARY TO EXAMINE THE PROPRIETY OF THE LEGAL STANDARDS GIVEN
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TO THE JURORS POINT SIX --------------------------------------------- 59
A BILL OF PARTICULARS IS NECESSARY TO ALLOW SMITH TO DEFEND PROPERLY HIS CASE.
POINT SEVEN ------------------------------------------- 62
THE GOVERNMENT SHOULD RELEASE IMMEDIATELY TO THE DEFENSE ALL DISCOVERY UNDER RULE 16.
POINT EIGHT ------------------------------------------- 64
THE GOVERNMENT SHOULD DESCRIBE IN ADVANCE THE GENERAL NATURE OF ANY EVIDENCE OF OTHER CRIMES, WRONGS, OR ACTS THAT IT INTENDS TO INTRODUCE AT TRIAL UNDER RULE 404(B)
POINT NINE -------------------------------------------- 65
THE GOVERNMENT SHOULD PRODUCE IMMEDIATELY ALL BRADY AND GIGLIO MATERIALS.
POINT TEN --------------------------------------------- 66
THE GOVERNMENT SHOULD PRODUCE IMMEDIATELY ALL JENCKS MATERIALS
POINT ELEVEN ------------------------------------------ 67
THE GOVERNMENT SHOULD DESIGNATE ALL CO-CONSPIRATOR STATEMENTS THAT WILL BE INTRODUCED AT TRIAL AND THE COURT SHOULD HOLD THE APPROPRIATE HEARINGS REGARDING USE OF SUCH STATEMENTS.
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POINT TWELVE ------------------------------------------ 73
SMITH REQUESTS ADDITIONAL DISCOVERY TO AID IN PREPARING HIS DEFENSE AND ENSURING HIS DUE PROCESS AND FAIR TRIAL RIGHTS.
POINT THIRTEEN ---------------------------------------- 75
SMITH REQUESTS PERMISSION TO FILE ADDITIONAL MOTIONS. CONCLUSION ------------------------------------------------- 75
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Cases Page
Borden v. School Dist. of Tp. East Brunswick, 523 F.3d 153(3d Cir. 2008) ........................................... 40 Bouie v. City of Columbia, 378 U.S. 347 (1964) ......39 Bourjaily v. United States, 438 U.S. 171(1987) ......69 Brady v. Maryland, 373 U.S. 83 (1963) ................66 Butterworth v. Smith, 494 U.S. 624 (1990) ..........58 Carter v. Rafferty, 826 F.2d 1299(3d Cir. 1987), cert. denied, 484 U.S. 1011 (1988)............................67
Douglas Oil Co. of California v. Petrol Stops Northwest, 441 U.S. 211 (1979) ................................ 59 Evans v. United States, 504 U.S. 255 (1992) ........34 Giglio v. United States, 405 U.S. 150 (1972) ... 66,67 Greene v. United States, 454 F.2d 783 (9th Cir. 1971)..53 Hampton v. United States, 425 U.S. 484 (1976) ...47, 53 Kolender v. Lawson, 461 U.S. 352 (1983) ..............40 Pittsburgh Plate Glass v. United States, 360 U.S. 395 (1959) ..................................................58
Posters 'W ' Things, Ltd. v. United States, 511 U.S. 513(1994)................................................................40 Scott v. United States, 436 U.S. 128(1978) ..........72 United States v. Addonizio, 451 F.2d 49(3d Cir. 1972) .........................................................61 United States v. Ammar, 714 F.2d 238 (3d Cir. 1983).....70 United States v. Antico, 275 F.3d 245 (3rd Cir. 2001) ..34 United States v. Armocida, 515 F.2d 29 (3d Cir. 1975) .. 72 United States v. Bagley, 473 U.S. 667 (1985) ......... 67 United States v. Besmajian, 910 F.2d 1153 (3d Cir. 1990) 32 United States v. Bortnick, 2004 WL 3029731, *6 (E.D. Pa. Dec. 30, 2004)....................................................59 United States v. Bryant, 556 F. Supp. 2d 378 (D.N.J. 2008)...................................................... 37,32 United States v. Cicco, 938 F.2d 441 (3d Cir. 1991) ...44 United States v. Continental Group, Inc., 603 F.2d 444 (3d Cir. 1979)...............................................70 United States v. Delle Donna, 552 F. Supp. 475, 2008 WL 1961485, *5 (D.N.J. March 14, 2008) .........................32 United States v. Eufrasio, 935 F.2d 553 (3d Cir. 1991)...61 United States v. Evangelista, 813 F. Supp. 294 (D.N.J. 1993) ...................................................66
United States v. Fedroff, 874 F.2d 178 (3d Cir. 1989) .................................................7, 48, 49
United States v. Higgs, 713 F.2d 39 (3d Cir. 1983) .67 United States v. Hodge, 211 F.3d 74 (3d Cir. 2000) .32
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2
United States v. Hull, 456 F.3d 133 (3d Cir. 2006) .72 United States v. James, 590 F.2d 575 (5th Cir. 1979) ........................................................69,70 United States v. Jannotti, 673 F.2d 578 (3d Cir. 1982),cert, denied, 457 U.S. 1106 (1982) .......... 48, 52 United States v. Kemp, 500 F.3d 257 (3d Cir. 2007) .. 32 United States v. Lanier, 520 U.S. 259 (1997) ........39 United States v. Loschiavo, 531 F.2d 659 (2d Cir. 1976).44 United States v. Mahoney, 495 F. Supp. 1270 (E.D. Pa. 1980)..................................................... 58 United States v. Nolan-Cooper, 155 F.3d 221 (3d Cir. 1998)....................................................53 United States v. Pervez, 871 F.2d 310 (3d Cir. 1989) .........................................................47 United States v. Pitt, 193 F.3d 751 (3d Cir. 1999) .52 United States v. Reynoso-Ulloa, 548 F.2d 1329(9th Cir. 1977), cert, denied, 436 U.S. 926 (1978) ...................49
United States v. Rosa, 891 F.2d 1063 (3d Cir. 1989) 61 United States v. Russell, 411 U.S. 423 (1973) ......47 United States v. Starusko, 729 F.2d. 256 (3d Cir. 1984)....................................................67 United States v. Twersky, 1994 WL 319367, *4 (S.D.N.Y. June 29, 1994).................................................... 59 United States v. Twigg, 588 F.2d 373 (3d Cir. 1978). ................................................... 52,53,55
United States v. Urban, 404 F.3d 754 (3d Cir. 2005), cert. denied, 546 U.S. 1030 (2005) ..........................61 United States v. Voigt, 89 F.3d 1050 (3d Cir. 1996) 52 United States v. Weaver, 267 F.3d 231 (3d Cir. 2001) ......68 United States v. Wecht, 2007 WL 3125096, *5 (W.D. Pa. Oct. 24, 2007)................................................33
United States v. West, 511 F.2d 1083 (3d Cir. 1975) 53 United States v. Whittaker, 999 F.2d 38 (2d Cir. 1993) ....................................................... 41
Other Authorities Black's Law Dictionary 177 (8th ed. 2004) ....................61 N.J. Legis. Code of Ethics 2:3a.(2) (a)-(c) ..................36 N.J. Legis. Code of Ethics 2:2 ............................36 Ind. Ct. I ...........................................passim
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Ind. Ct. II ..........................................passim Ind. Ct. Ill .........................................passim Ind. Ct. IV ...........................................passim Ind. Ct. V ............................................passim Ind. Ct. VI ..........................................passim Matt Dowling, "Cooperating witness Solomon Dwek emerges as cornerstone of N.J. corruption sting," The Star-Ledger (July 23, 2009) ..........................................54
Ted Sherman, "FBI informant Solomon Dwek has whirlwind N.J. corruption tour," The Star-Ledger (Oct. 25, 2009) ....54
Rules Fed. R. Crim. P. 6{e)(3)(E)(ii) ...........................59 Fed. R. Crim. P. 7(c)(1) ..................................32 Fed. R. Crim. P. 7{f) .....................................60 Fed. R. Crim. P. 16 (a) (1) (A) & (B) ...........................64 Fed. R. Evid. 404(b) ................................. 64,65 Fed. R. Evid. 801(d)(2)(E) ................................69
.
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Preliminary Statement Long-time public servant and now former State
Assemblyman L. Harvey Smith (“Harvey Smith”) is one of
forty-four individuals arrested on July 23, 2009, as part
of Operation Bid Rig, a joint effort by the Federal Bureau
of Investigation, the Internal Revenue Service, and the
United States Attorney for the District of New Jersey.
Like many other high-level New Jersey elected officials
arrested that day, Smith was indicted ultimately on
political corruption charges, namely, for allegedly
accepting bribes from a Government informant in exchange
for his political assistance. And, like all of the others
arrested, a group that includes public servants, political
operatives, elected officials, candidates for office and
even orthodox rabbis, Smith must discredit Solomon Dwek, an
unscrupulous Government witness who sits at the core of the
Government’s prosecution. Dwek is a disgraced member of
the Syrian Jewish community in Deal, New Jersey, who
relished an opportunity as a confidential witness as a way
to reduce his criminal exposure for orchestrating a $50
million bank fraud and laundering more than $22 million of
the fraudulent proceeds. Among other things, Dwek has
admitted to carrying out his criminal scheme by lying to,
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stealing from, cheating, and swindling dozens of investors,
including his own uncle.
None of this information, however, is novel. A number
of the defendants have appeared already before this Court.
Some have pleaded guilty. Some have elected a jury trial.
Some have begun serving sentences this Court has imposed.
Others are awaiting sentencing. But any comparisons among
the various prosecutions or defendants must end here; put
simply, Smith cannot be lumped in with the rest.
Critically, when the relevant proofs are put forward, the
evidence in this case will show beyond a reasonable doubt
that Smith never accepted any bribes from Dwek and lacked
the intent to commit the crimes charged. Smith never
offered to do anything illegal for Dwek or boasted about
his ability or desire to afford him preferential treatment.
Even if the Government’s evidence demonstrates that Smith
offered to inquire about or support Dwek’s purported
development projects, this evidence establishes nothing
more than that Smith was performing his political duties.
Smith did not take any bribes.
Alternatively, even assuming that the evidence
supports a conclusion that, instead, Smith succumbed to
Dwek’s ruthless, take-no-prisoners tactics, the defense is
prepared to introduce compelling evidence that Smith was
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entrapped. More specifically, voluminous evidence will
demonstrate that Dwek, posing as David Esenbach and acting
as the Government’s agent, preyed on Smith by initiating
the criminal activity he has been charged with and
ensnaring an inactive and unwilling participant. This
evidence will show further that, fueled by unabated greed,
Smith’s long-time colleagues and once-trusted friends,
Jersey City Housing Authority Commissioner Edward Cheatam
and Democratic political consultant Jack Shaw, struck a
lucrative side-deal with Dwek. They profited for
successfully introducing Dwek to and setting up meetings
with political officials. For all intents and purposes,
they were Dwek’s de facto agents and participated in luring
Smith, who they knew had a sterling reputation and was, to
put it colloquially, “straight as an arrow”.
Yet, even taking the Indictment as true, the defense
gleans the impression that the Government is grasping for a
wink and a nod that Smith and Dwek never exchanged. This
is not a case where the accused promised Dwek that they
would help each other or that he would treat him as a
friend. This is not a case where the accused crowed about
preferential treatment for supporters versus non-
supporters. And, this is not a case where the accused
promised that Dwek’s projects would “sit at the top of the
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pile” or enjoy expedited handling. No, this is Harvey
Smith’s case, and the evidence will speak for itself.
Procedural History & Statement of Facts1
Harvey Smith, a former teacher, served three terms as
a Jersey City councilman, during which he spent four years
as City Council President. He also served in the State
Senate from November 2003 though January 2004, sworn in to
fill the remainder of a resigned senator’s term. After
leaving the State Senate, Smith was appointed as an
Undersheriff of Hudson County. He took a leave as
Undersheriff to serve as Acting Mayor of Jersey City from
May 25, 2004 through November 11, 2004. He then returned
to that position. After winning an uncontested election in
November 2007, Smith served one term as a New Jersey
General Assemblyman from January 8, 2008 to January 10,
2010, as a representative of the 31st legislative district.2
To state the obvious, Smith has been a fixture in local and
State politics for many years.
1 The recitation here is based largely on a compilation of court documents, government press releases, wiretap affidavits, audiotapes and videotapes, newspaper articles, online articles, and other discovery materials. 2 When his term expired in January 2010, Harvey Smith did not seek reelection.
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On July 23, 2009, Smith was arrested as part of
Operation Bid Rig and charged with knowingly and willfully
conspiring to commit extortion under color of official
right by accepting bribes, which violates 18 U.S.C. §
1951(a)(2). Later, a grand jury indicted Smith on six
counts: (1) conspiracy to obstruct commerce by extortion
under color of official right (count one), which violates
18 U.S.C. § 1951(a); (2) attempted obstruction of commerce
by extortion under color of official right (counts two and
three), which violates 18 U.S.C. § 1951(a) and § 2; (3)
acceptance of corrupt payments (counts four and five),
which violates 18 U.S.C. § 666(a)(1)(B) and § 2; and (4)
money laundering (count six), which violates 18 U.S.C. §
1956(a)(1)(B)(i) and § 2.
The Indictment names or describes four other
individuals allegedly involved in the conduct at the heart
of the case. Edward Cheatam, the Affirmative Action,
elected member of the Jersey City Board of Education and an
Officer for Hudson County and Commissioner on the Jersey
City Housing Authority3, is specifically identified. The
others are presumably Richard Greene, who was Smith’s
acquaintance, Jack Shaw, a political consultant, and
3 Additionally, Cheatam was Deputy Mayor of Jersey City when Smith served as Acting Mayor.
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Solomon Dwek (described as the “CW”), a convicted fraudster
and the Government’s confidential witness. Working under
the alias David Esenbach, Dwek (for ease of reference, he
is hereinafter referred to throughout this brief as Dwek,
not Esenbach) held himself out to Smith and others as a
real estate developer interested in development in Jersey
City and surrounding areas.
Overall, the Indictment alleges that these individuals
conspired together to commit a number of offenses and Smith
reaped the benefits of this conspiracy. This is what the
Government says. What the Government does not say and has
not said in the context of any other related prosecution is
that, unbeknownst to Smith or any other similarly situated
individual, Dwek, Cheatam, and Shaw had formed their own
illicit agreement. Essentially, Cheatham and Shaw agreed
to act as snares in Dwek’s self-serving pursuit of
attempting to bribe politicians; every time Cheatam and
Shaw orchestrated a fruitful meeting between Dwek and a
local political figure, Dwek would pay them handsomely.
More specifically, if Dwek succeeded in getting an official
to accept a bribe, he would pay that same amount of money
to Shaw and Cheatam. So, controlled by their insatiable
appetites for cash, Cheatam and Shaw closed their eyes to
long-time personal and professional relationships and any
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sense of right from wrong. With Dwek as their proverbial
cash cow, they rolled up their sleeves and got to work –
they hand-picked political figures to meet with Dwek,
established and maintained contact, and served as illicit
liaisons between Dwek and them.
The wiretap evidence reveals critical information
regarding the side-deal that Dwek struck with Cheatam and
Shaw. Significantly, too, ample evidence shows that
Cheatam and Shaw played, at times, fast and loose with
Dwek, lying that they gave money to targeted political
officials when, in fact, they hoarded it for themselves.
Crucial wiretap evidence includes, but is not limited to,
the following:
• January 7, 2009 – Cheatam agrees, per Dwek, to rig the bidding process on a tile job for a school development project. He agrees to rig the process in Dwek’s favor by disclosing to him if another bidder’s price was cheaper and instructing him as to whether he had to submit a lower bid. Cheatam explains to Dwek that he would introduce him to “the right people” and agrees that such people had to be people that Cheatam and Dwek could trust. (March 12, 2009 Affidavit of FBI Special Agent Donald Russ). • January 7, 2009 – Cheatam explains to Dwek that he could arrange a meeting with Joseph Doria regarding DCA inspections of Dwek’s various properties. Cheatam agrees with Dwek that all payments to Doria should be made through Cheatam. Cheatam also explains that he would introduce him to Shaw, who would further facilitate his corrupt dealings with Doria.
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(March 12, 2009 Affidavit of FBI Special Agent Donald Russ). • February 12, 2009 – Shaw advises Dwek that Doria and Shaw have been personal friends for thirty years. Shaw agrees with Dwek to “come on board” with him to “expedite” matters with the DCA, including DCA “approvals” for Dwek’s real estate development interests “through Doria”. In exchange, Shaw agrees to accept from Dwek “$10,000 to start” and “more and more” as Dwek received approvals. (March 12, 2009 Affidavit of FBI Special Agent Donald Russ). • February 16, 2009 – Cheatam agreed that Dwek should provide Shaw with $10,000 for Doria and an additional $10,000 each to Shaw and Cheatam for their assistance with Doria. (March 12, 2009 Affidavit of FBI Special Agent Donald Russ). • February 17, 2009 – Shaw and Dwek agree that whatever sum of money Dwek gives him for Doria, he will give him the same amount to keep. They agree also that Shaw would accept from Dwek “10 and 10” – two $10,000 cash payments: one for Shaw and one for Doria. Shaw thanked Dwek and stated that he hope that the two had a long “relationship” that was “good for” Dwek and “good for us”. (March 12, 2009 Affidavit of FBI Special Agent Donald Russ; Feb. 17, 2009 Videotape). • March 20, 2009 – Cheatam and Shaw agree to accept $10,000 each from Dwek at an upcoming meeting: $5,000 each for the “Joe [Doria] thing” and $5,000 each to “convert” for Healy. (March 31, 2009 Affidavit of FBI Special Agent Donald Russ). • March 20, 2009 - Shaw and Cheatam discuss how it is “refreshing” to “deal with” someone like Dwek and they wanted to keep the “ball rolling.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • March 21, 2009 - Shaw and Cheatam discuss their efforts to assist Dwek with his real estate
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development interests in Plainfield and Bayonne. They confirm that meetings with two Jersey City Council candidates have been set. They agree that Dwek had been “planting a lot of seeds” with various government officials in New Jersey. (April 2009 Affidavit of FBI Special Agent Donald Russ). • March 24, 2009 – Shaw and Jimmy King, candidate for the Jersey City Council, discuss meeting with Dwek. Shaw tells King, “Do me a favor and turn on the Irish charm about me so this guy [Dwek] thinks he’s getting what he’s paying for.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • March 24, 2009 – Shaw and Cheatam discuss their plans for Dwek, agreeing: “Let’s get him to give these three candidates [Lori Serrano, Lou Manzo, and King] money, let’s get him to buy the spaghetti factory and let’s get him to buy Orange.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • March 25, 2009 – Cheatam explains to Shaw that he would “tell each o of them [Serrano and Lavern Washington] don’t take anything from [Dwek] at all until, you know, I want to make sure they go through us.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • March 30, 2009 – Cheatam and Shaw discuss scheduled meetings with Dwek, King, and Washington. About King and Washington, Cheatam said, “Let’s spread them out fifteen minutes difference, okay?” Shaw agreed and asked Cheatam, “How are we operating this? [King and Washington are coming into the restaurant to see [Dwek]?” Cheatam responded, “Yes they are coming in to see Dwek and then whatever conversation you want and then they’ll leave.” Shaw agreed and then asked Cheatam, “And then how are we dealing with the money?” Cheatam responded to Shaw that they would “talk to [Dwek] about the money.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • April 8, 2009 – Cheatam and Shaw discuss the political officials they have hand-picked to introduce to Dwek, including but not limited to: William Gaughan, King, Peter Brennan, Serrano,
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Washington, and Cammarano. They discuss the times and meetings “booked”. (May 1, 2009 Affidavit of FBI Special Agent Donald Russ). • April 14, 2009 – Cheatam and Shaw discussed Smith, who was then a candidate for Jersey City Mayor. Cheatam noted that “definitely, [Dwek’s] gonna sit down with Harvey, too.” (May 1, 2009 Affidavit of FBI Special Agent Donald Russ). • April 21, 2009 – Cheatam and Shaw met with Dwek. Shaw and Cheatam set forth the schedule and identities of individuals with whom they would be meeting as well as the amounts of money to be paid to certain public officials. (May 1, 2009 Affidavit of FBI Special Agent Donald Russ). • April 22, 2009 – Shaw asked, “When are we doing Harvey?” Cheatam informs Shaw that the meeting is set. They also discuss setting up a meeting with Mayor Healy. Cheatam says, “Whatever time he’s available, we’ll, we’ll bring [Dwek] on in and knock it out.” (April 2009 Affidavit of FBI Special Agent Donald Russ). • May 21, 2009- Cheatam and Shaw discuss confrontation with Dwek regarding Shaw’s account of what Shaw had done with the payoffs that Dwek had provided to him for Joe Doria. Dwek had pointed out to Cheatam that Shaw had initially told Dwek he gave payoffs to Doria, but then later contradicted himself when he said that he had given the money to the President of St. Peter’s College at Doria’s direction to do so to benefit Doria’s daughter. Cheatam and Shaw then lie to each other as to the stories they told Dwek in an effort to resolve Shaw’s inconsistent statements. (May 29, 2009 Affidavit of FBI Special Agent Sean McCarthy) • June 5, 2009 – Shaw and Cheatam discuss setting up a meeting with the Mayor of Bayonne, Mark Smith. Shaw said, “’I’m just trying to get Dwek to buy something so we can get paid.’” Cheatam responded, “’Right? Absolutely. That’s what I’m talking about. (July 2009 Affidavit of FBI Special Agent Sean McCarthy).
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• June 7, 2009 – Though Shaw and Cheatam suspect Dwek may be an FBI informant, they continue to cement their relationship with them. They say “everybody thinks” he is an informant and ridicule his development plans as “amateurish” and “bullshit”. (June 7, 2009 Audiotape). • June 10, 2009 – Shaw and Cheatam discuss their desire to reap more money from Dwek. “Likely referring to compensation for Cheatam and himself, Shaw then remarked that ‘we gotta, we gotta figure out some way to get some checks out of [Dwek],’ prompting Cheatam to respond ‘[y]es, absolutely.’ Shaw added, “’[or] some money somewhere out of [Dwek].” Cheatam then told Shaw that “’I’ll make a suggestion to [Dwek], eh, you know, make it official. I’m your consultant, you’re just funneling to me.’” (Dwek has paid Shaw and Cheatam on numerous occasions, with Cheatam most recently receiving $5,000 on June 2, 2009, for their assistance in facilitating corrupt payments to public officials, but they have never been hired by Dwek as consultants.) Shaw then clarified to Cheatam that “’I mean, and, and, and I’m talking about money for you and me.’” Both complained that they were on a “’dry streak’” and that Dwek “’spoiled’” them. Shaw added, “’yeah, and I’ve been working my ass off now – more than I was before.’” Cheatam told Shaw that “’I want [Dwek] to see us working so that we can, you know, pull down some more.’” (June 26, 2009 Affidavit of FBI Special Agent Sean McCarthy; June 10, 2009 Audiotape). • June 12, 2009 – Cheatam tells Shaw that “’[Dwek] is nothing more than a broker.’” Shaw agreed and said that Shaw and Cheatam also were “’brokers’”. Shaw continued, “’All we need is some money now.’” Cheatam agreed, “That’s all we need, that’s all we need, absolutely.’” Shaw said, “’You and I need some cash.’” (July Affidavit of Special Agent Sean McCarthy; June 12, 2009 Audiotape). • June 17, 2009 – Cheatam and Shaw discuss moving ahead on a particular project with Dwek. Shaw states, “’Well, one of the things I want to know out of this before I move ahead on other projects
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with [Dwek] is I want to know how much am I getting paid for this project and when am I getting paid for this project . . . .” (July Affidavit of FBI Special Agent Sean McCarthy). • June 17, 2009 – Cheatam and Shaw discuss the fact that they had helped secure Dwek a potentially very lucrative development deal. Cheatam says that they need to sit down with Dwek and tell him, “’[C]ome on now. Put us on now. Put us on.’” Shaw, realizing that Cheatam was referring to a formal consulting contract with Dwek, stated “’we need to have some regular flow of income here.’” (June 26, 2009 Affidavit of FBI Special Agent Sean McCarthy). • June 19, 2009 – Cheatam and Shaw meet with Dwek. Cheatam suggests that Dwek put them on “some sort of a retainer.” Dwek agrees to give Shaw and Cheatam $5,000 per month and then make them his partners on the purported development projects. (July Affidavit of FBI Special Agent Sean McCarthy; June 18, 2009 Audiotape). • July 22, 2009 – Cheatam and Shaw discuss an upcoming meeting with Dwek. They specifically discuss a demand to increase their monthly payment from Dwek. Shaw says Doria is getting nervous that Dwek is an FBI Agent. At the meeting, when Dwek offers to increase their monthly fee from $5,000 to $10,000, Cheatam adds that he and Shaw had been thinking “’they came in a little too cheap.’” (July Affidavit of FBI Special Agent Sean McCarthy; July 22, 2009 Audiotape).
The Indictment
According to the Indictment, Smith, Cheatam, Shaw and
“others” conspired from April 2009 through July 2009 to
extort cash payments and “illegal[ly] structured” campaign
contributions from Dwek in exchange for Smith’s “official
assistance, action and influence” in State and local
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government matters. Ind., Ct. I, ¶ 2. The object of the
conspiracy was allegedly to “accept and agree to accept”
from Dwek such payments and contributions “for the benefit
of defendant Smith in a concealed manner, through
intermediaries” in exchange for Smith’s “official
assistance, action and influence.” Ind., Ct. I, ¶ 3.
Indictment’s Allegations Regarding the April 24, 2009 Meeting
The Government alleges that an April 24, 2009
restaurant meeting involving Smith, Cheatam, Shaw, and Dwek
is “part of the conspiracy.” Ind., Ct. I, ¶ 4(A). During
that meeting, Dwek discussed his interest in conducting a
development project on Garfield Avenue in Jersey City (the
“Garfield Avenue Project”). The Indictment reads:
“Defendant Smith was further informed by [Dwek] that [Dwek]
was seeking help expediting an anticipated zoning change
with respect to the Garfield Avenue Project, and that
[Dwek] wanted to make sure that he had [D]efendant Smith’s
support.” Ind., Ct. I, ¶ 4(A).
While Smith briefly left the table, Cheatam told Dwek
to hand him any money intended for Smith: “Give it to me
and I’ll have to give it to [Defendant Smith]. [Defendant
Smith] won’t take it himself . . .” Dwek stated, “oh so you
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gotta give it to him, he won’t take it from me?” According
to the Indictment, Cheatam represented to Dwek that Smith
understood that Dwek wanted him to assist with the Garfield
Avenue Project. Ind., Ct. I, ¶ 4(B).
When Smith returned to the table, Cheatam said:
“[Dwek] . . . is a very generous person and he likes
working with people. He’s going to make a contribution to
your campaign [for Jersey City Mayor]. His only thing is
that his name is not connected to it, nor my name, nor
[Shaw’s] name. He’ll give you something now and you make
the run-off and he’ll keep contributing to you, to your
success.” Ind., Ct. I, ¶ 4(C). Dwek added that he would
give him $5,000 then, $5,000 after a run-off, and $5,000
post-election, provided that he did not use his name.
Smith told him, “I can only put the name on the check that
is, who the check’s coming from.” Ind., Ct. I, ¶ 4(C).
Cheatam told him that there is no check. Smith told him,
“I understand and that’s going to be difficult for me to
deal with.” Dwek responded, “Deal with [Cheatam] on it.”
Ind., Ct. 1, ¶ 4(C). According to the Indictment, “Cheatam
indicated to Defendant Smith that they would use Smith’s
associate, [Richard Greene], as an intermediary and that
Smith’s associate would give the corrupt payment to
Defendant Smith.” Ind., Ct. I, ¶ 4(C).
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What The Tapes Reveal Regarding the
April 24, 2009 Meeting
“I don’t do quid pro quo. Ed [Cheatam] will tell you
how I operate,” Smith told Dwek in no uncertain terms.
(emphasis added). The tapes reveal that Smith had no
intent to take unlawfully anything from Dwek. In fact,
Smith never promised to do anything for Dwek that he would
not do for any other constituent. When Dwek asked for his
help in expediting his Garfield Avenue Project, Smith had
no comment. Though Cheatam and Dwek tried to scheme about
who owed Smith some favors, Smith disregarded this.
Instead, he explained to Dwek about some legislation that
might be useful.
Unbeknownst to Smith, Cheatam would not ever tell Dwek
how he only did honest business because Cheatam had turned
on him. Instead, Dwek and Cheatam continued scheming.
When Smith left the table that day, Dwek voiced his
concerns that Smith would not take any money from him.
Cheatam reassured him, stating he personally would accept
the money for Smith.
When Smith returned to the table, Cheatam tried to
convince him that Dwek was a “very generous person” who
would like to make a campaign contribution, provided that
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it was not linked to him personally. Smith was
disinterested: “I can only put the name on the check that
is of who it is coming from.” Responding to Dwek’s comment
“You understand my French I don’t want any conflicts,”
Smith said: “I understand but that’s going to be difficult
for me to deal with.”
Before leaving the meeting, Smith’s parting words to
Dwek were: “I don’t do quid pro quo. Ed [Cheatam] will
tell you how I operate. When Smith left, Dwek, Cheatam,
and Shaw continued plotting:
Dwek: Is this guy going to help me out or what?
Cheatam: He’ll help you.
Dwek: He’s tough.
Shaw: When he was the mayor he was the best mayor we had in 30 years. Dwek: The thing is he doesn’t want no cash – How are we going to operate with this guy. Dwek: Maybe you can talk to him and straighten him out. Cheatam: If not I have people I can give the cash to and they give him the checks. Dwek: I don’t do quid pro quo. What’s that suppose[d] to mean?
Indictment’s Allegations Regarding the April 30, 2009 Meeting & $5,000 Payment
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Next, the Government alleges that an April 30, 2009
[Greene], Cheatam, Shaw, and Dwek is also “part of the
conspiracy.” Ind., Ct. I, ¶ 4(D). The Indictment alleges
that before Smith arrived, Dwek and others discussed taking
care of business with Greene after they finished their
breakfast. Ind., Ct. I, ¶ 4(D). When Smith arrived, Dwek
said, “I didn’t know you were still on the Assembly.” When
Smith responded affirmatively, Dwek said, “I was telling
[Greene and Cheatam] that I might need something [from
you].” Smith interrupted Dwek, telling him: “You gotta
stop talking like that, and I’ll tell you why. Because we
are forging a relationship and whatever I can do to help
you, I will, and when you talk like that, it puts me . . .
“. Ind., Ct. I, ¶ 4(F).
Dwek mentioned the Garfield Avenue Project and
indicated he needed information on the status of an
application in the New Jersey Department of Environmental
Protection (“DEP”) seeking a No Further Action Letter.
Ind., Ct. I, ¶ 4(F). In response, Smith told Dwek that he
would inquire as to the status of that Letter, stating: “So
write down all the stuff you want.” Ind., Ct. I, ¶ 4(F).
As everyone began to leave the table, Dwek said, “So I’ll
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get that DEP information, we’ll get you a zone
application.” Smith replied, “All I need to know is what
the project is, if you give me the name of the project and
I’ll find out the site so I can question . . . what the
status of the . . . clean up.” Ind., Ct. I, ¶ 4(G).
In the parking lot outside of the restaurant, Dwek
questioned Smith as to whether he could “do business” that
day with Greene. Smith did not turn around or respond to
him, telling him moments later to “stop talking”. Ind.,
Ct. I, ¶ 4(H). Smith entered his car and prepared to
leave. Greene then accepted from Dwek an envelope
containing $5,000 cash. Ind., Ct. I, ¶ 4(I). Dwek said
that he told Smith that he was giving him $5,000 cash and
reminded Greene that he did not want his name listed
anywhere. He asked Greene, “When he [Smith] says he will
help me expedite my [Garfield Avenue] application . . . I
can trust him?” Greene and Cheatam acknowledged that Smith
would not forget Dwek. Ind., Ct. I, ¶ 4(I).
According to the Indictment, Greene entered the front
passenger side of Smith’s car, holding the sealed envelope
from Dwek and giving it to Smith. Ind., Ct. I, ¶ 4(J).
The Government alleges that later that same day, on or
about April 30, 2009, Smith provided the $5,000 in cash to
Cheatam, who converted the cash into money orders and
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checks, which were deposited as campaign contributions for
Smith’s candidacy for Jersey City Mayor. Ind., Ct. I, ¶
4(K)-(N).
What The Tapes Reveal Regarding
the April 30, 2009 Meeting
Smith indicated that he would “find out what the
status is” regarding the Garfield Avenue Project. Because
the DEP was very busy, Smith told him, “write down all the
stuff” you need in resolving issues related to the Garfield
Avenue Project. Before leaving the meeting, Smith
reiterated: “All I need is what the project is. Ed
[Cheatam] will give me the name of the project and I’ll
find out the site so I can . . . find out what the status
is of the . . . clean up.” When Dwek said, “I might be on
the bottom of the pile I am told so if you can [do]
anything to expedite that I would appreciate it,” Smith
walked away and ignored him.
After Smith left, Dwek approached Greene and handed
him an envelope. Lying to Greene to get him to
participate, Dwek says: “I told Harvey this is $5,000.”
But he never told Smith that there was any money in the
envelope. And Smith never told Dwek that he would expedite
anything. Feigning ignorance, however, Dwek asked, “When
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he says he’ll help me with expediting my applications I can
trust him right? He won’t forget my name and number will
he? Cheatam stated, “No,” adding “I’ll make sure of that.
I’m about the closest thing to him.”
When Smith learned that the envelope contained cash,
Smith immediately telephoned Cheatam and told him he was
returning the cash-filled envelope to him. Smith reiterated
to Cheatam that he would not accept a cash donation from
anyone, and Cheatam relayed this information to Shaw.
Indictment’s Allegations Regarding the
July 16, 2009 Meeting
On or about July 16, 2009, Smith, Cheatam, Shaw, and
Dwek met at a diner in Jersey City. Before Shaw arrived,
Smith, Cheatam, and Dwek discussed Dwek’s business
interests in Jersey City and Bayonne, including the
Garfield Avenue project and a proposed development on Route
440 in Bayonne (the “Bayonne Project”), and related issues
involving the DEP and the State of New Jersey Department of
Transportation (“DOT”). Ind., Ct. I, ¶ 4(O). When Shaw
arrived, Cheatam updated him on the group’s conversation.
Smith then allegedly told Dwek, “I need to just get a
little list of what you’re trying to do, so that before I
go on vacation I can get the ball rolling. First of all, I
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can put in some calls to see where the DEP situation is.”
Dwek said he would provide the information to Cheatam.
Smith said that he would also talk to the Chairman of the
DOT regarding the Bayonne Project. Ind., Ct. I, ¶ 4(O).
Regarding the Garfield Avenue Project, Smith asked
Dwek for the name listed on the DEP application. Dwek told
him that it was registered under “Garfield Avenue
Associates LLC”. When Smith asked for other information
regarding the Garfield Avenue Project, Dwek tried to change
the subject. Dwek said he was “looking for a guy that can
help [him] out,” told Smith he “trust[ed]” [him], and that
he was “a generous guy.” Smith commented jokingly,
“According to your standards you’re generous.” Getting back
to what he believed was a legitimate topic of discussion,
Smith commented about the Garfield Avenue and Bayonne
Projects, stating: “I’m going to find out what he deal is
with this. I’m gonna get on it as soon as we finish here.”
Smith also indicated that he would inquire from a
particular State Assemblyman as to whether he was
interesting in handling Dwek’s DOT application for the
Bayonne Project and would try to “put this in motion”
immediately because Smith was preparing to leave for
vacation. Smith also confirmed that he would make inquiries
about the Garfield Avenue Project. Ind., Ct. I, ¶ 4(P).
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Later in the meeting, Smith offered advice to Dwek and
Cheatam regarding how to deal with a particular Jersey City
Councilwoman as to Dwek’s purported need for a zoning
change in Jersey City, stating: “See, not only do you have
my connections, . . . you got my . . . knowledge.” Shortly
after, Smith proceeded to leave the diner. According to the
Government, when Cheatam stood up to leave, Dwek told
Cheatam to inform Smith that he would give him $10,000
since Smith was not happy with his previous payment of
$5,000. It is alleged that Cheatam stepped away to
purportedly speak with Smith in private. It is alleged
further that, when he returned, Cheatam told Dwek that
Smith would take $10,000. Ind., Ct. I, ¶ 4(Q).
What The Tapes Reveal Regarding the
July 16, 2009 Meeting
At the July 16 meeting, Smith sat down with Cheatam
and Dwek to talk about what he believed were legitimate
development projects, including the Garfield Avenue Project
and Bayonne Project. When Smith asked them what kind of
help they were looking for, Cheatam said that they needed
his “support.” In an effort to convince Smith, Dwek and
Cheatham discussed how Jersey City residents would benefit
from these Projects. They also represented that they had
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met with and had garnered support from the Mayor and the
Council President. When Dwek said that he needed help with
the DEP and on a related zoning issue, Smith had no
response.
As to the Bayonne Project, Smith told Dwek that he
needed to deal with the DOT if he needed “assistance” with
transportation matters. Smith told him that he wanted “a
little list of what you are trying to do so that before I
go on vacation I can start the ball rolling.” When Smith
gave him some advice as to how to deal with a particular
councilwoman on a zoning issue, he told Dwek: “[N]ot only
do you have my connections but you also have my knowledge.”
Smith left the meeting. Cheatam followed after Smith.
When Cheatam returned, he told Dwek that Smith would take
$10,000. The tape does not show Cheatam speaking privately
with Smith, let alone Smith telling Cheatam that he will
accept a $10,000 bribe.
Indictment’s Allegations Regarding the July 17, 2009 Meeting & $10,000 Payment
On or about July 17, 2009, Smith, Cheatam, Shaw, and
Dwek met at a Hoboken diner. During this meeting, Smith
told Dwek that he had placed two phone calls the day
before. When Dwek commented “you’re a man of your word,”
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Smith replied, “I only do business one way.” Smith began
to read over his notes with Dwek and talked to him about
his phone calls. As to the Garfield Avenue Project, Smith
said that someone agreed to update him on the status of the
DEP application by the end of the day. As to the Bayonne
Project, Smith had contacted the DOT Commissioner. Dwek
told Smith, “I appreciate your support.” Ind., Ct. I, ¶
4(R). Additionally, Smith told Dwek that his fellow
Assemblyman, if needed, would contact the DOT to advise
them that he supported the project.
Smith met with Dwek that day to specifically update
him on the progress he had made regarding his Project
issues. Ind., Ct. I, ¶ 4(S).
All four individuals then left the diner. In the
parking lot, Dwek handed an envelope to Cheatam, who
followed Smith to his car, leaned in the open window, and
threw the envelope inside the car. The envelope contained
$10,000 cash. Dwek then approached Smith’s car and said,
“Harvey, I don’t want you to call me a cheap skunk
anymore,” then leaning inside the open window. Smith told
him, “Hey, it’s not about that, it’s just about, -- it’s
just about the fact that I’m a straight guy.” Ind., Ct. I,
¶ 4(T).
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What The Tapes Reveal Regarding the July 17, 2009 Meeting
Smith told Dwek that he made two calls the day before
to follow-up on his inquiries. He told Dwek that he spoke
with the DOT Commissioner. When Smith left the table,
Cheatam commented, “He’s a pain in the ass to deal with[,]
but he’s a man of his word.” When Smith returned, he told
Dwek that the Assemblyman would voice his support for the
Project, if his [Smith’s] clout was not enough.
Shortly after, Smith got up from the table to leave
and Dwek followed him. Smith proceeded to his car. Dwek
and Cheatam proceeded to Dwek’s car. Dwek retrieved an
envelope from the trunk, handing it to Cheatam. Smith had
started his car and was backing up in the parking lot.
When Cheatam appeared next to his car, Smith stopped.
Cheatam tossed the envelope into Smith’s front passenger
seat. Dwek then walked over to Smith’s car, commenting:
“Hey Harvey[,] I don’t want you to call me a cheap skunk
anymore.” Smith replied, “It’s not about that. It’s just
about that I’m a straight guy.”
When Harvey pulled out of the parking lot, Shaw, Dwek,
and Cheatam began talking about Joseph Doria, Commissioner
of the Department of Community Affairs, and how they should
not do “the exchange in front of Joe.” Celebrating their
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“success,” Dwek commended Cheatam and Shaw for their role.
Dwek told them that they had worked very hard, promising to
pay them another $10,000 when they finished with Doria.
Smith has pled not guilty and is exercising his
constitutional right to a jury trial. In these pretrial
motions, he moves for an Order:
1) Dismissing all Hobbs Act extortion counts in the
Indictment;
2) Dismissing the Federal Program Bribery Charge under
18 U.S.C. § 666;
3) Granting an evidentiary hearing on his entrapment
defense or, alternatively, permitting him to explore
on cross-examination at trial all areas related to
his entrapment defense;
4) Dismissing the indictment on due process grounds
based on the Government’s outrageous misconduct;
5) Granting discovery and an evidentiary hearing
regarding the grand jury’s investigation of this
case;
6) Granting a bill of particulars;
7) Compelling the Government to produce at this time
discovery materials under Rule 16, 404(b) evidence,
trial exhibits, Brady/Giglio evidence, and all
Jencks materials;
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8) Compelling the Government to provide a list of all
co-conspirator statements that will be introduced in
their case-in-chief and scheduling a James hearing,
a minimization hearing, and a hearing to determine
the authenticity and admissibility of the recorded
conversations;
9) Compelling the Government to provide additional
discovery, including but not limited to the most
recent and updated version of the Department of
Justice’s guidelines regarding the use of
confidential informants and/or any other official
guidelines that governed the terms of the informant
relationship between the Government and Solomon
Dwek, in his capacity as cooperating witness; and
10) Permitting Smith to file additional motions as
necessary.
Legal Argument
POINT I.
THE HOBBS ACT EXTORTION COUNTS SHOULD BE DISMISSED BASED ON THE STATUTE’S PLAIN LANGUAGE AND ITS VAGUENESS AS APPLIED
TO SMITH’S CASE. A dismissal of all Hobbs Act extortion counts of the
Indictment (Counts One, Two and Three) is proper under Rule
12(b)(3) of the Federal Rules of Criminal Procedure. To
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withstand scrutiny on a dismissal motion, an indictment
must contain a ‘plain, concise, and written statement of
the essential facts constituting the offense charged’ and
include the statute(s) that the defendant(s) are alleged to
have violated.” United States v. Delle Donna, 552 F. Supp.
475, 482, 2008 WL 1961485, *5 (D.N.J. March 14, 2008); see
Fed. R. Crim. P. 7(c)(1). It shall be considered
insufficient if it fails to:
(1) contain [] the elements of the offense intended to be charged, (2) sufficiently apprise[] the defendant of what he must be prepared to meet, and (3) allow[] the defendant to show with accuracy to what extent he may plead a former acquittal or conviction in the event of a subsequent prosecution. United States v. Kemp, 500 F.3d 257, 280 (3d Cir.
2007)(citations omitted); see also Bryant, 556 F. Supp. 2d
at 383-84 (quoting Kemp’s recitation of the standard for
determining the sufficiency of an indictment). Taking as
true the allegations pleaded, United States v. Besmajian,
910 F.2d 1153, 1154 (3d Cir. 1990), and employing a “common
sense construction,” United States v. Hodge, 211 F.3d 74,
76 (3d Cir. 2000), a court shall “determine whether [a]
[d]efendant[‘s] conduct, as charged, ‘reflect[s] a proper
interpretation of criminal activity under the relevant
criminal statute[s].’” Delle Donna, 2008 WL 1961485 at *5
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(quoting United States v. Wecht, No. 06-0026, 2007 WL
3125096, *5 (W.D. Pa. Oct. 24, 2007)).
Applying this same approach, this Court should find
that, as a matter of law, all counts of the Indictment
should be dismissed for two reasons: (1) The charged
offenses for Hobbs Act extortion (Counts 1-3), do not and
can not reach the conduct pleaded in the Indictment without
violating Smith’s fundamental due process rights; and (2)
The Hobbs Act is impermissibly vague as applied to Smith’s
alleged conduct pleaded in the Indictment.
A. Official “influence” is not “official action” and thus cannot establish the requisite quid pro quo bribery for convictions under the Hobbs Act extortion statute, 18 U.S.C. § 1951(a).
The charges in the Indictment must be dismissed
because the Government seeks to prosecute Smith not for
taking “official action,” as required to prove quid pro quo
bribery, but instead for his official “influence,” which by
any stretch can not support a bribery conviction. This
attempted expansion of the scope of the Hobbs Act, 18
U.S.C. § 1951(a), violates Smith’s due process rights and
must be rejected.
To secure a conviction for bribery or, more precisely,
“extortion under color of official right” under the Hobbs
Act, the government must also prove that the payment or
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benefit “was made in return for official acts.” Evans v.
United States, 504 U.S. 255, 268 (1992); Antico, 275 F.3d
at 258 (emphasis added). In Antico, relying on the Supreme
Court’s decision in Evans, the Third Circuit held that in a
prosecution for Hobbs Act bribery in a context other than
the receipt of campaign contributions, the government need
not prove a direct quid pro quo. Antico, 275 F.3d at 257.
However, while proof of a specific official act is not
required, the Antico court squarely held that the
government must prove nevertheless “that a public official
has obtained a payment to which he was not entitled,
knowing that the payment was made in return for official
acts.” Id. (emphasis added) (citing Evans, 504 U.S. at
268). The Third Circuit explained: “In other words, no
‘official act’ (i.e., no ‘quo’) need by proved to convict
under the Hobbs Act. Nonetheless, the official must know
that the payment – the ‘quid’ – was made in return for
official acts.” Antico, 275 F.3d at 257.
Necessarily fatal to its position, the Government
attempts to prosecute Smith for bribery based on something
much less than a quid pro quo arrangement – “influence”
that falls short of taking any official action. The
Indictment alleges that Smith, among others, conspired from
April 2009 through July 2009 to extort cash payments and
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“illegal[ly] structured” campaign contributions from Dwek
in exchange for Smith’s “official assistance, action and
influence” in State and local government matters. Ind., Ct.
I, ¶ 2. Stretching the bounds of the statute charged
beyond any reasonable interpretation, the Government
suggests that Smith is guilty of extortion because he
inquired as to the “status of” Dwek’s DEP application
regarding what he represented to be his Garfield Avenue
Project, Ind., Ct. I, ¶ 4(F)-(G), and offered to talk to a
State Assemblyman on a Department of Transportation matter
relevant to Dwek’s purported Bayonne Project, Ind., Ct. I,
¶ 4(O)-(P). Additionally, the Government suggests that
Smith committed extortion when he allegedly told Dwek he
would “make inquiries” about the Garfield Avenue Project.
Ind., Ct. I, ¶ 4(P). In noting that Smith “provided advice
to [Dwek] and Cheatam regarding how to handle any issues
that might arise with a particular Jersey City
Councilwoman, the Government attempts to put a nefarious
spin on Smith’s comment: “See, not only do you have my
connections, . . . you got my . . . knowledge.” Ind., Ct.
I, ¶ 4(Q). And, the Government suggests further that
Smith’s “clout” as a local official makes his actions in
this case criminal. Ind., Ct. I, ¶ 4(S).
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But the Government entirely misses the mark in seeking
to treat “influence” as criminal conduct under the Hobbs
Act. Discussing development projects and making inquiries
regarding the status of such projects was part and parcel
of Smith’s political responsibilities as a State
Assemblyman and as a mayoral candidate. To be sure, New
Jersey’s Legislative Code of Ethics substantiates this.
That Code provides that, while a member of the Legislature
may not negotiate on behalf of any party in connection with
a matter before a State agency, a member is not prohibited
or restricted from
(a) Making an inquiry for information on behalf of a constituent, which may include ascertaining the status of a matter, identifying the statutes or regulations involved in a matter or inquiring how to expedite a matter;
(b) assisting the constituent in bringing the merits of the constituent’s position to the attention of a State agency; or
(c) making a recommendation on a matter or indicating support for the constituent’s position to a State agency; if no fee, reward, employment, offer of employment or other thing of value is promised to, given to or accepted by the member, whether directly or indirectly, and the member does not endeavor to use his official position to improperly influence any determination.
N.J. Legis. Code of Ethics 2:2, 2:3a.(2)(a)-(c).
Even the Government concedes in the Indictment that
Smith’s official duties as a State Assemblyman included:
“providing constituent services for New Jersey citizens and
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organizations, which services included . . . bringing the
merits of a constituent’s position to the attention of a
State department or agency, and making a recommendation on
a matter in support of a constituent’s position before a
State department or agency.” Ind. Ct. 1, 1(B). Thus, the
Indictment’s allegations that Smith made inquiries for
Dwek, inquired as to status updates on his projects, and
offered his support on Dwek’s Bayonne Project to his fellow
Assemblyman are, put simply, much ado about nothing.
Moreover, this type of conduct does not rise to the level
of “official action,” and thus can not support a quid pro
quo bribery theory under the Hobbs Act.4
4 The allegations of “official action and influence” against Smith here pale in comparison to the allegations against former New Jersey State Senator Wayne Bryant in his case. See United States v. Bryant, 556 F. Supp. 2d at 391. In Bryant, Judge Wolfson set forth “an assortment of official actions” that Bryant allegedly took to favor the School of Osteopathic Medicine [“SOM”]: In December 9, 2002, at a meeting of the Senate Education Committee, Bryant strongly criticized the findings of the Vagelos Commission to protect the interests of SOM. Id. at ¶ 19c. In or about 2003, Bryant ‘used his State Senate staff to arrange meetings for defendant R. Michael Gallagher with members of the Senate Budget and Appropriations Committee, at which defendant Gallagher presented a ‘white paper’ regarding capital projects at SOM that needed funding.’ Id. at ¶ 20a. From in or about March 2003 through June 2006, Bryant directed changes in the budget of the State of New Jersey that allocated large sums of money to SOM. Id. at ¶ 19b. For fiscal year 2004, Bryant inserted ‘specific language provided by defendant Gallagher into the state budget which described the merits of SOM’s Center for Children’s Support, and supported an $800,000 allocation for SOM,’ which he ensured was included in the state budget in fiscal years 2004, 2005 and 2006. Id. at ¶ 20bii-iii (emphasis added). Further, from in or about August 2003 through late 2005, Bryant ‘represented, appeared for, and negotiated on behalf of SOM with state agencies,
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If Smith accepted anything at all from Dwek, he
accepted campaign contributions. Though a State officer,
employee, or member of the Legislature may not accept any
“thing of value which he knows or has reason to believe is
offered to him with intent to influence him in the
performance of his public duties and responsibilities,”
[t]his . . . shall not apply to the acceptance of
contributions to the campaign of an announced candidate for
elective public office.” N.J.S.A. 52:13D-14.
Indeed, any ruling treating Smith’s conduct as
criminal where it has not been so defined by statute would
compromise Smith’s due process rights. See, e.g., United
States v. Lanier, 520 U.S. 259, 266 (1997) (“[D]ue process
bars courts from applying a novel construction of a
criminal statute to conduct that neither the statute nor
and used his official position to influence those agencies to take action favorable to SOM.’ Id. at ¶ 21. These included setting up a meeting between himself, Gallagher, and the Commissioner of the New Jersey Department of Health and Senior Services where Bryant and Gallagher sought to influence the Commissioner to allocate to SOM a portion of funds appropriated to the Cancer Institute of South Jersey, Id. at 21.a; setting up a meeting between himself, Gallagher, and the Treasurer of the State of New Jersey at Bryant’s legislative office in Camden, New Jersey, ‘in an effort to influence the Treasurer to disburse ‘special’ targeted tax relief payments to the Borough of Stratford, New Jersey to compensate the borough for the land that SOM was planning to acquire, Id. at ¶ 21.c; and two other instances where Bryant persuaded state agencies to provide funding to SOM. Id. at ¶ 21.b., d. Id. at 391. Nothing even vaguely familiar to these “official actions” is alleged against Smith in the Indictment.
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any prior judicial decision has fairly disclosed to be
within its scope.”) (citations omitted); id. (explaining
that, consistent with fair warning principles, “the
touchstone is whether the statute, either standing alone or
as construed, made it reasonably clear at the relevant time
that the defendant’s conduct was criminal.”); see also
Bouie v. City of Columbia, 378 U.S. 347, 350 (1964)
(suggesting that due process clause guarantees “that a
criminal statute give “fair warning.”). Thus, because the
law is clear that bribery can not be proven without the
requisite evidence of an official act performed or
contemplated, the Government cannot prosecute Smith under
the Hobbs Act for using “influence” and all Hobbs Act
charges must be dismissed.
B. The Hobbs Act extortion statute, 18 U.S.C. § 1951a, is unconstitutionally vague as applied to the conduct charged in the Indictment. The Hobbs Act extortion statute should be deemed void
for vagueness as applied to the conduct charged against
Smith in the Indictment. The Hobbs Act prohibits one from
“obstruct[ing], delay[ing], or affect[ing] commerce . . .
by . . . extortion . . . .,” which is the act of “obtaining
of property from another, with his consent . . . under
color of official right.” 18 U.S.C. § 1951(a),(b)(2). As
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applied to the facts alleged in the Indictment, this
statute does not give adequate warning that Smith or
someone in his position could be prosecuted.
A statute is unconstitutionally vague if it fails to
“define the criminal offense with sufficient definiteness
that ordinary people can understand what conduct is
prohibited and in a manner that does not encourage
arbitrary and discriminatory enforcement.” Posters ‘N ‘
Things, Ltd. v. United States, 511 U.S. 513 (1994);
Kolender v. Lawson, 461 U.S. 352, 357 (1983); see also
Borden v. School Dist. of Tp. East Brunswick, 523 F.3d 153,
166-67 (3d Cir. 2008) (citations omitted). In considering
a vagueness challenge, a court must evaluate the statute
“in light of the facts of the case and on an as-applied
basis.” United States v. Whittaker, 999 F.2d 38, 42 (2d
Cir. 1993); see also Borden, 523 F.3d at 166-67 (citations
omitted). Section 1951 is void for vagueness as applied
here because Smith could not have known that the alleged
conduct in the Indictment could constitute a violation of
the Hobbs Act.
According to the Government, the alleged conduct that
gives rise to the criminal charges against Smith includes
making inquiries on behalf of a constituent, reaching out
to a fellow Assemblyman, offering his support on Dwek’s
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development projects, and offering information relevant to
dealing with a local Councilwoman. In seeking to
criminalize these types of actions, the Government attempts
inappropriately to expand the reach of § 1951 so as to
sweep up conduct that, when performed by Smith in his
capacity as an Assemblyman and mayoral candidate was not
only lawful, but would not put a reasonable public official
in Smith’s position on notice that he was exposed to
criminal prosecution for bribery. More specifically, no
reasonable public official would think that he had criminal
exposure because he offered support for and made inquiries
about the “status” of a constituent’s local development
projects. Yet, that is precisely what the Government seeks
to prosecute Smith for, as set forth in Counts One through
Three of the Indictment.
Mindful then of the statute and the Government’s
intended use of it in this case, this Court should strike
down § 1951 because, as applied here, it is
unconstitutionally vague. Indeed, an ordinary person would
not read this statute to mean that a public official who
engages in the conduct charged here – conduct that falls
far short of taking “official actions” – is criminally
liable. Moreover, nothing in the statute puts a public
official on notice that inquiring as to the status of a
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constituent’s project or meeting to discuss a supporter’s
requests would expose him to a federal felony prosecution.
Therefore, based on what the Indictment claims Smith
did and the “ordinary person” standard for considering
vagueness attacks, the Hobbs Act extortion statute, § 1951,
is void as applied here and requires a dismissal of all
Hobbs Act counts.
POINT II.
THE SECTION 666 BRIBERY COUNT SHOULD BE DISMISSED BECAUSE IT WAS NOT INTENDED TO APPLY TO THE FACTS ALLEGED HERE AND
REQUIRES PROOFS THAT DO NOT EXIST IN THIS CASE. Additionally, this Court should dismiss Counts Four
and Five of the Indictment, which charge Smith with bribery
concerning programs receiving federal funds. 18 U.S.C. §
666(a)(1)(B). Counts Four and Five allege that, on April
30, 2009 and July 17, 2009, Smith accepted cash “to be
influenced and rewarded in connection with a business,
transaction, and series of transactions of the State of New
Jersey, the DEP, and the DOT, involving . . . $5,000 and
more.” Ind., Ct. IV & V, ¶ 3. Section 666 provides in
pertinent part:
(a) Whoever, if the circumstance described in subsection (b) of this section exists –
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(1) being an agent of an organization, or of a State, local . . . government, or any agency thereof – . . . . (2) corruptly solicits or demands for the benefit of any person, or accepts or agrees to accept, anything of value from any person, intending to be influenced or rewarded in connection with any business, transaction, or series of transactions of such organization, government, or agency involving any thing of value of $5,000 or more. shall be fined under this title, imprisoned not more than 10 years, or both. (b) The circumstance referred to in subsection (a) of this section is that the organization, government, or agency receives, in any one year period, benefits in excess of $10,000 under a Federal program involving a grant, contract, subsidy, loan, guarantee, insurance, or other form of Federal assistance.
To prove a violation of § 666(a)(1)(B), the Government
must prove: (1) corrupt solicitation; (2) of anything of
value; (3) with the intention of being influenced in
connection with any transaction of a local government or
organization receiving at least $10,000 in federal funds
annually; and (4) where the transaction involves anything
of value of $5,000 or more. United States v. Cicco, 938
F.2d 441, 444 (3d Cir. 1991). The Government cannot
succeed for two reasons. First, § 666 does not apply to
this case. Second, even assuming the statute reaches the
conduct here, the Government lacks the evidence to prove
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beyond a reasonable doubt that Smith committed bribery
under § 666.
Preliminarily, § 666 was not intended to apply to this
case or Smith’s conduct. Based on its legislative history,
§ 666 was enacted to “enlarge and clarify the class of
persons subject to the federal bribery laws.” Cicco, 938
F.2d at 445 (citing and discussing legislative history).
More specifically, the statute was designed to target a
particular group: non-public officials. The intent of the
statute was to ensure that federal bribery laws applied to
persons other than public officials because other
legislation did not encompass such persons. See id.
(citing and discussing Congress’s specific reference to
United States v. Loschiavo, 531 F.2d 659 (2d Cir. 1976), a
decision that pre-dated § 666 in which the Court of Appeals
for the Second Circuit vacated a conviction of a non-public
official for bribing a public official under 18 U.S.C. §
201 because statute applied only to those with an
employment relationship to the federal government). Thus,
§ 666 filled a gap in the law “to remedy specific
deficiencies in existing federal theft and bribery
statutes.” Id. at 446.
Because § 666 was not intended to target the crimes or
the individual charged here, Smith should not be prosecuted
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for that statutory violation. The Government has charged
him with three counts of Hobbs Act extortion for allegedly
taking bribes, pleading violations of 18 U.S.C. § 1951. In
other words, they have charged him with an offense that, on
its face, applies to public officials and reaches the type
of bribery alleged. Charging Smith as well under § 666 is
prosecutorial overreaching and, no doubt, inconsistent with
the express purposes and intent underlying the statute.
Thus, this Court should dismiss the § 666 counts of the
Indictment.
Alternatively, even if this Court determines that §
666 applies to this case, it should conclude nevertheless
that the Government cannot demonstrate sufficiently the
elements of the offense. Smith did not corruptly solicit
anything from Dwek and lacked any criminal intent. To
reiterate, if he accepted anything at all, he accepted what
he believed were legitimate campaign contributions. See
Legal Argument, Point I, supra. Additionally, the
Government cannot prove that the DEP and DOT, as State
agencies, received more than $10,000 in federal funds
during 2009. In fact, these agencies did not receive any
federal funds. Thus, because the requisite proofs do not
exist here, the Government’s theory under § 666 is fatally
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flawed. The § 666 counts should be dismissed at this
juncture.
POINT III
ALTERNATIVELY, SMITH’S ENTRAPMENT DEFENSE MUST BE FLESHED OUT AT A PRETRIAL EVIDENTIARY HEARING OR, AT LEAST, RULED
AN APPROPRIATE TOPIC FOR BROAD CROSS-EXAMINATION AT TRIAL.
Alternatively, if this Court denies Smith’s motions
for dismissal of the charges, Smith shall pursue at trial
an entrapment defense. To present effectively his defense,
Smith seeks a hearing at which he may proffer critical
entrapment evidence. However, if the Court declines to
grant a hearing, Smith seeks a ruling that he will be
allowed to liberally explore this subject during cross-
examination of the Government’s trial witnesses.
An entrapment defense may defeat a prosecution only
“’when the Government’s deception actually implants the
criminal design in the mind of the defendant.’” United
States v. Fedroff, 874 F.2d 178, 181 (3d Cir. 1989)
(quotations omitted). It has two related elements: 1)
government inducement of the crime and 2) lack of
predisposition on the defendant’s part to engage in the
criminal conduct. Id. (citing Mathews v. United States,
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108 S. Ct. 883, 886 (1988)); accord Hampton v. United
States, 425 U.S. 484 (1976); United States v. Russell, 411
U.S. 423 (1973). A defendant has been entrapped when he was
not predisposed to commit the crime charged, but was
induced to do so only by the government’s trickery,
persuasion, or fraud. Id. (citations and quotations
omitted). Significantly, a defendant does not have to
admit the elements of the crime charged to be entitled to
an entrapment defense. See Mathews, 108 S. Ct. at 886
(“[E]ven if the defendant denie[s] one or more elements of
the crime, he is entitled to an entrapment instruction
whenever there is sufficient evidence from which a
reasonable jury could find entrapment.”).
This Court should hold a hearing to allow Smith an
opportunity to introduce critical evidence of non-
predisposition and inducement. Cf. United States v. Pervez,