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Peter
C. Harvey, Attorney General |
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February 3, 2004 HAYNES
SECURITY COMPANY & TOP OFFICIALS CHARGED
Public Encouraged To Report Corruption To DCJ Tip Line
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Newark, NJ -- New Jersey Attorney General Peter C. Harvey today announced that a corruption investigation has resulted in the indictment of Newark-based Haynes Security, Inc. and the company’s President and Corporate Executive Officer (CEO) on corruption-related charges which include bribery, theft and conspiracy. The criminal indictment also charges a former PSEG corporate manager with receiving thousands of dollars from Haynes Security during the period Haynes provided security services to the energy company. "We are continuing to aggressively investigate and prosecute public corruption cases whether the acts are committed by elected officials or corporate officers seeking to feather their nest at public expense," Attorney General Harvey said. "The significant results obtained through this ongoing investigation and indictment allege that one of New Jersey’s largest security firms chose to evade the laws regulating security services and to engage in corrupt practices. The outcome of the alleged illegal activity had the potential to jeopardize security at Newark/Liberty Airport." Joining
the Attorney General to announce the indictment and criminal charges
were Vaughn L. McKoy, Director, Division of Criminal Justice, Robert
Van Etten, Inspector General for the Port Authority of New York/New
Jersey, representatives of the Division of Criminal Justice - Special
Prosecutions Bureau and the New Jersey State Police Government Integrity
Unit. According to Criminal Justice Director McKoy, a State Grand Jury returned a seven-count indictment which charged John J. D’Agostino, 50, President of Haynes Security, Inc., Runnymede Dr., Wayne, Passaic County, Carol A. D’Agostino (wife), 48, Corporate Executive Officer (CEO) for Haynes Security, and the Haynes Security corporation located at One New York Ave., Newark. The indictment also charged Benjamin R. Riggi, 51, Eastside Ave., Edison, Middlesex County. Riggi was a former manager employed by PSEG. The indictment charges John D’Agostino with conspiracy (2nd degree), commercial bribery (two 3rd degree counts), misconduct by a corporate official (2nd degree), and theft by deception (two 2nd degree counts). Carol D’Agostino is charged with conspiracy, misconduct by a corporate official, and theft by deception. The company is charged with conspiracy, theft by deception, and commercial bribery. Riggi is charged with commercial bribery. The defendants face up to ten years in state prison and a fine of up to $150,000 on each of the second degree counts and up to five years incarceration and a fine of up to $15,000 on each of the third degree charges. The corporation faces more than $450,000 in financial penalties upon conviction. "This indictment details an alleged pattern of corporate conduct which includes illegal payments or bribes and theft by a corporation and its officers awarded contracts to provide airport security services to the Port Authority of New York/New Jersey, as well as security services to private entities including PSEG and Continental Airlines," said Director McKoy. "The indictment alleges that Haynes corporate officers offered and conferred financial benefits to individuals who were in positions to make decisions regarding the awarding and monitoring of security contracts. The Division of Criminal Justice and the Special Prosecutions Bureau will continue to investigate and prosecute those who misuse their office for personal gain and greed." The State Grand Jury indictment charges that over a five-year period from January, 1999 through the present, Haynes Security maintained more than $12 million in contracts with the Port Authority of New York/New Jersey and Continental Airlines to provide security services at Newark/Liberty International Airport. Additionally, Haynes secured a $9-10 million per year contract to provide security services to PSEG. In obtaining the security contracts, Haynes was required to comply with various New Jersey laws and regulations, including the New Jersey Private Detective Act. The indictment charges that the D’Agostino’s and Haynes Security violated provisions of the Private Detective Act by failing to fingerprint thousands of security personnel and failing to send the fingerprint and background records to the New Jersey State Police for review, thus allowing individuals with criminal convictions to work as security personnel at Newark/Liberty Airport and at PSEG. Criminal Justice Director McKoy noted that when the year-long Special Prosecutions Bureau investigation became known, the D’Agostino’s and Haynes Security forwarded thousands of fingerprint cards en masse to the State Police for review. Additionally, the investigation uncovered information that individuals with criminal records, and who were prohibited from employment in security-related positions, were identified and terminated from their employment with Haynes Security during the course of the investigation. The indictment charges that in March, 2002, John D’Agostino and Haynes Security provided Riggi, a former manager employed at PSEG with supervisory responsibilities to monitor security services, with a $7,500 cash "loan" in consideration for favorable reports and approvals of the ongoing contract to provide security services to the utility company. It is alleged that D’Agostino never demanded repayment of the "loan" and that Riggi never repaid the monies. Additionally, the indictment charges that in August, 2002, D’Agostino and Haynes Security paid more than $1,000 for home repairs, including the installation of a security alarm system, at a private residence owned by a manager employed at Continental Airlines. It is charged that the home repairs and alarm system were in exchange for the manager’s favorable consideration to continue the Haynes Security contract with Continental Airlines. Inspector General Van Etten of the Port Authority of New York/New Jersey said, "The Port Authority commends New Jersey Attorney General Peter C. Harvey, New Jersey Criminal Justice Director Vaughn L. McKoy and their staffs for their efforts in this joint investigation that led to the criminal indictment. We share a mutual commitment to ensuring the highest levels of safety, security and service in this region. Our dedication remains steadfast, and the Port Authority will continue to aggressively monitor all aspects of security as it relates to the agency’s facilities." The indictment was handed up to Mercer County Superior Court Judge Linda R. Feinberg, the Assignment Judge of the State Grand Jury, on Feb. 2. The case is assigned to the Essex County Superior Court for trial. The defendants will be issued a complaint summons requiring them to appear in Essex County Superior Court for arraignment and bail. Deputy Attorney General Harry Moskowitz assigned to the Division of Criminal Justice - Special Prosecutions Bureau and State Police Detective Matthew Wilson coordinated the ongoing investigation. Additional investigative assistance and cooperation was provided by PSEG and Continental Airlines. In announcing the indictment, Attorney General Harvey noted that the Division of Criminal Justice - Special Prosecution Bureau has established a toll-free "Corruption Tipline" for the public to report corruption, financial crime and other illegal activities. The statewide "Corruption TipLine" is: 1-866-TIPS-4CJ. Additionally, the public can log-on to the Division of Criminal Justice Web Page at www.njdcj.org to electronically report suspected wrongdoing. All information received via the Division of Criminal Justice "Corruption Tipline" will remain confidential. A copy of the State Grand Jury indictment is available via the Division of Criminal Justice Web Page at www.njdcj.org. The defendants are presumed innocent of the charges unless or until proven guilty in a court of law. |
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