Alex D. Blanco, Corruption, New Jersey 2017

Passaic Mayor Admits Corruption, Faces Prison
Newark, NJ – In a shocking turn of events, Mayor Alex D. Blanco of Passaic, New Jersey, pleaded guilty to soliciting and accepting corrupt payments from developers doing business in the city.

According to documents filed in the case, from 2010 through 2012, two developers were seeking to build eight low-income residential units on property they owned in Passaic. After the Passaic City Council and the Passaic Zoning Board of Adjustment granted approval, Blanco had an intermediary approach the developers in July 2011, demanding a sizable payment to ensure the project would proceed.

The developers were told to provide a payment to the mayor, and in early September 2011, Blanco arranged for a meeting with the developers at which he solicited and agreed to accept $75,000. The next day, he arranged for a meeting with one of the developers in Clifton, New Jersey, and asked for the corrupt payment in cash, but was told by the developer that the developer had brought signed, blank checks, which could be made out to payees of Blanco’s choosing.

Blanco obtained those checks – totaling $65,000 – once the payee lines had been filled in, arranged for them to be cashed, and pocketed the cash proceeds. About eight days later, Blanco arranged for another meeting in Passaic with one of the developers and solicited and accepted two additional checks totaling $40,000, proceeds of which were ultimately provided to Blanco in cash. In March 2012, Blanco accepted cash proceeds from an additional $5,000 check solicited on his behalf.

“The conduct admitted by Mayor Blanco demonstrates an aggressive and appalling greed,” U.S. Attorney Paul J. Fishman said. “By soliciting these payments from developers, he took for himself federal money that was intended to help provide housing for the city’s poorest residents. We expect our public officials to behave differently.”

Blanco faces up to 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense. Sentencing is scheduled for February 23, 2017.

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