Former Hoboken Mayor Sentenced to 24 Months in Prison for Taking $25,000 in Bribes

NEWARK, NJ—Peter J. Cammarano III, former mayor of the city of Hoboken, was sentenced to 24 months in federal prison today for accepting $25,000 in illicit cash contributions in exchange for exercising his future official influence and authority, United States Attorney Paul J. Fishman announced.

U.S. District Judge Jose L. Linares also ordered Cammarano, 33, to serve two years of supervised release upon the completion of his prison term and to forfeit $25,000, the amount of the corrupt bribes that he received, to the government. Judge Linares continued Cammarano’s release on a $100,000 bond pending his surrender to officials with the U.S. Bureau of Prisons on September 20, 2010.

Cammarano pleaded guilty before Judge Linares on April 20, 2010, to a one-count criminal Information charging him with conspiracy to commit extortion under color of official right. At his plea hearing, Cammarano admitted that, while he was an at-large councilman for the city of Hoboken and candidate for the position of mayor, he accepted three illicit cash campaign contributions totaling $15,000 from a cooperating witness (“CW”), who purported to be a real estate developer. Cammarano further admitted that on July 16, 2009, after he had been elected and sworn in as mayor, he accepted an additional $10,000 illicit cash campaign contribution from the CW.

Cammarano admitted that all of the $25,000 in cash payments were in exchange for his future official assistance, action, and influence in Hoboken government matters pertaining to the CW’s anticipated real estate development projects. Cammarano further admitted that all of the illicit cash that he accepted from the CW was paid through Michael Schaffer, Edward Cheatam, and an individual referred to in the Information as the “Consultant.” Schaffer pled guilty to the same charge on June 14, 2010 and is scheduled for sentencing on August 3, 2010.

Today’s sentencing stems from a two-track undercover FBI investigation into public corruption and money laundering which resulted in the charging of 44 individuals via criminal Complaints on July 23, 2009.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, and special agents of the Internal Revenue Service Criminal Investigation Division, under the direction of Special Agent in Charge William P. Offord, for the investigation leading to today’s sentence.

The case against Cammarano was prosecuted by Assistant U.S. Attorney Brian R. Howe, Deputy Chief, and Assistant U.S. Attorney Bradley A. Harsch, both of the U.S. Attorney’s Office’s Special Prosecutions Division.