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Officials lambast NJ corruption after 44 arrested

By: khq.comPosted On: 07/24/2009 1:37 P


Officials are decrying political corruption in New Jersey after more than 40 people, among them rabbis and elected officeholders, were arrested in an investigation in which some were accused of laundering tens of millions of dollars and of black-market trafficking of kidneys and fake Gucci handbags.

The 44 arrests Thursday were a remarkable number even for New Jersey, where more than 130 public officials have pleaded guilty or have been convicted of corruption since 2001.

"New Jersey's corruption problem is one of the worst, if not the worst, in the nation," said Ed Kahrer, who heads the FBI's white-collar and public corruption division. "Corruption is a cancer that is destroying the core values of this state."

Gov. Jon Corzine said: "The scale of corruption we're seeing as this unfolds is simply outrageous and cannot be tolerated."

The arrests were headline news in Israel on Friday morning, with the front pages of all three of the country's mass-circulation dailies featuring pictures of bearded ultra-Orthodox Jews being led away by law enforcement officials.

Micky Rosenfeld, a spokesman for Israel's national police force, said Friday that Israeli police were not involved in the investigation. He would not comment further.

Federal prosecutors in the U.S. said the investigation focused on a money laundering network that operated between Brooklyn, N.Y.; Deal, N.J.; and Israel. The network is alleged to have laundered tens of millions of dollars through Jewish charities controlled by rabbis in New York and New Jersey.

Prosecutors then used an informant in that investigation to help them go after corrupt politicians. The informant

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