Ex-mayor admits taking bribe
Former Hazlet, NJ Mayor Paul A. Coughlin told a judge Tuesday he had accepted a $3,000 bribe from a confidential informant who he believed was a corrupt contractor in exchange for securing work for him, specifically the demolition of the old town hall.
Coughlin, 43, said he also promised to use his influence to steer future work to the company supposedly run by Robert "Duke" Steffer, who was really working for the FBI.
In pleading guilty to a count of accepting a corrupt payment, Coughlin kept repeating "Yes, your honor" in response to questions posed by U.S. District Judge Joel A. Pisano. On the day a jury was to be selected for his trial, he told the judge that after reviewing the evidence and papers, he instead wanted to plead guilty. His wife and family attended the hearing.
Pisano told Coughlin he faces up to 10 years in prison and up to $250,000 in fines. But both sides have agreed to recommend Coughlin serve between 21 and 27 months in prison. He also will likely reimburse the government the $3,000.
The other two counts of the indictment will be dismissed at his Sept. 7 sentencing. Coughlin does not have to testify against anyone else as part of the agreement, said Assistant U.S. Attorney Michael Hammer.
Coughlin is the latest public official to plead guilty in a FBI bribery and money-laundering sting dubbed "Operation Bid Rig," in which 13 former and current county and local public officials and three businessmen in Monmouth County were charged last year.
Jerome A. Ballarotto, Coughlin's lawyer, said his client's act was "something that's inconsistent with his life's behavior. This was truly an anomaly. Why he did it, we can't really explain," he said. Coughlin could not be reached for comment after the proceeding.
Regardless of whether Coughlin took the money as a campaign contribution or for personal reasons, Ballarotto said his client was accepting responsibility.
"Now he knows what he did was wrong and he should never have done it," said Ballarotto.
Hammer said, "Had we gone to trial, we would have proven he is guilty beyond a reasonable doubt, and we would have shown that it was never a campaign contribution," adding that Coughlin intended to use the money for himself.
Pisano asked:
"When you received and accepted the money from the CW (cooperating witness) in exchange for using your influence . . . to assist the CW in obtaining emergency work, specifically the demolition of Hazlet Township Hall, and future work, did you know it was wrong and illegal to do so?"
"Yes, your honor," replied Coughlin, who resigned as mayor in March 2005.
Steffer has been at the center of many of the Operation Bid Rig complaints, working with the FBI and posing as a contractor willing to pay off public officials who would award him municipal and county contracts. Undercover agents posed as Steffer's employees.
Details of plot
Authorities had maintained in complaints and the indictment that Coughlin, who is now unemployed, was introduced to the cooperating witness by "Councilman-1," an unnamed official. Other government documents indicate this was Robert L. Hyer, a former Keyport councilman. Hyer, who died in October, also was charged in the corruption sting.
The three met on May 19, 2004, at a Union Beach restaurant where Coughlin received $3,000 from Steffer in exchange for the demolition job. One of the ways to do that would be to declare an emergency, which would relieve Hazlet of the requirement to advertise for bids, according to the court papers.
Coughlin was ultimately unsuccessful in gaining support from other officials to declare the demolition an emergency.
Other tactics discussed included damaging the building, rigging the bid specifications and giving inside information about the competing bids to the contractor, according to the indictment.
The township broke ground on a new town hall in September at the site of the former Office of Emergency Management building in Veterans Park.
The exterior is nearing completion, and municipal employees are expected to move into the building by September.
The former town hall was torn down in September 2004 after Hazlet solicited competitive bids.
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