A former Old Tappan resident who served as a behind-the-scenes political power broker while leading the Bergen County Democratic Organization from 1998 to 2009 had his public corruption conviction upheld on Aug. 4, federal prosecutors announced.
The U.S. Court of Appeals for the Third Circuit upheld a nearly three-year prison sentence for Joseph A. Ferriero, 60, who was convicted in 2015 of racketeering activity and other charges.
Then-U.S. Attorney Paul Fishman said in 2015 Ferriero was convicted of running a local political organization as a criminal enterprise, leading a racketeering operation “that ran on influence peddling, bribes and kickbacks.”
The Bergen County Democratic Organization, today known as the Democratic Committee of Bergen County, and its counterpart, the Bergen County Republican Organization, both serve as the regional hubs for the preeminent political parties, supporting candidates and controlling party resources for campaigns and other functions.
Ferriero, while serving as chairman, was found by a jury to have accepted bribes. At the time, he was the sole member of SJC Consulting LLC, said prosecutors, who said he cut a deal with a Nutley-based software developer to use his sway and influence to get that company public contracts in exchange for a cut, ranging from 25 to 33 percent.
“Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer,” said prosecutors.
After four days of deliberations, a jury convicted Ferriero of “conducting the BCDO’s affairs through a pattern of racketeering activity,” “using the mail and facilities in interstate commerce to promote bribery and distribute bribe proceeds,” and wire fraud, prosecutors announced at the time.
On Aug. 4, the federal appeals court denied Ferriero’s multi-point appeal, said Acting U.S. Attorney William E. Fitzpatrick, in a statement. “Ferriero had argued, among other things, that the evidence convicting him of bribery was insufficient,” said Fitzpatrick. “The court disagreed, noting that the evidence showed he had agreed to accept payments from a software services company soliciting business from various Bergen County towns, in exchange for recommending the company to those towns. It noted that, as BCDO ‘party chair, Ferriero’s recommendations carried great weight.’” Fitzpatrick said the court also held that Ferriero committed fraud, noting he concealed his financial interest in one particular recommendation given to a municipality.
It also rejected Ferriero defending his conduct using free speech arguments, said Fitzpatrick. “[The court] held there was no constitutional issue because ‘New Jersey’s bribery law does not punish legitimate First Amendment activity,’” said Fitzpatrick. “Instead, ‘[i]t punishes corrupt agreements in which party officials accept payment in exchange for making a particular decision or recommendation, expressing a particular opinion, or voting a particular way… Such corrupt agreements do not enjoy First Amendment protection.’”
Ferriero will also pay restitution, the court ruled, and have three years of supervised release following his prison term, Fitzpatrick said.