New York corruption case: Feds cast a wide net

7/11/13 9:21 AM

Fri, Jul 19 7:10 PM vs. PHI Tickets Promotions

Sat, Jul 20 1:10 PM vs. PHI Tickets Promotions

Sun, Jul 21 1:10 PM vs. PHI Tickets Promotions

Subscribe to Newsday
LONG ISLAND

Today's paper

My Newsday

Traffic alerts 4

Hopewell Junction, NY

73

Hi jeremiah777

has 7 styles to live by and 16 dress ideas for summer weddings.

search newsday.com

Long Island
Long Island

Sports
NYC

Entertainment
U.S. / World State

News

Lifestyle
Tech

Business
Health

Health
Business

Opinion

Jobs
AP

Cars

Real Estate
Columns

More

Politics

Weird news

Puzzles

News

Newsday
Like 0 Tweet 0

1 Comment

New York corruption case: Feds cast a wide net

Originally published: May 12, 2013 11:53 AM Updated: May 14, 2013 1:50 PM By TIMOTHY O'CONNOR timothy.oconnor@cablevision.com
advertisement | advertise on newsday

Related Stories
Jasmin, Desmaret plead not guilty to corruption

Document: Huntley secretly taped Hassell-Thompson Spring Valley corruption case: Complete coverage

Facebook

Photo credit: Lili Holzer-Glier | Spring Valley Mayor Noramie Jasmin, right, walks into the Charles L. Brieant Federal Courthouse in White Plains to be arraigned on corruption charges. (April 23, 2013)

Videos

Moses "Mark" Stern has been seen as the linchpin of the public corruption investigation that led to the arrests of Spring Valley Mayor Noramie Jasmin, deputy Mayor Joseph Desmaret, and four New York City political figures on charges they conspired in multiple

http://www.newsday.com/news/new-york-corruption-case-feds-cast-a-wide-net-1.5246829

Page 1 of 4

New York corruption case: Feds cast a wide net

7/11/13 9:21 AM

bribery schemes. The political fixer and felon -- enlisted as a government informant -was the key go-between for bribes exchanged among the six political figures and an undercover FBI agent posing as a real estate Jasmin, Desmaret refusing to step down developer, according to court documents and sources with direct knowledge of the case. Federal records, however, reveal that the investigation had a broader base. VIDEO: Jasmin, Desmaret refusing to step down | Spring Valley Spring Valley Mayor Noramie Jasmin responds to corruption charges Mayor Noramie Jasmin responds to corruption charges | FBI arrests Spring Valley mayor in corruption probe PHOTOS: Christopher St. Lawrence through the years | New York politicians arrested in mayor's race corruption probe | Disgraced NY politicians FBI agents tapped at least six phones for a combined 720 days FBI arrests Spring Valley mayor in corruption probe during the two-year investigation, according to documents reviewed by Newsday. Among those whose phones were tapped -- in this instance for 120 days -- was Spring Valley real estate developer Eli Gestetner. Gestetner's plan to build 85 rental apartments on Sneden Place, near Village Hall, was endorsed by Jasmin at public meetings and approved by the planning and town boards in 2010. The 52-year-old Monsey resident told Newsday that he had no idea Spring Valley Mayor Noramie Jasmin, 5 other politicians arraigned his phone was bugged. "There would be no reason for them to do this," he said Friday. Gestetner has not been charged in the ongoing investigation, and a spokeswoman for the U.S. attorney's office declined to comment. Gestetner received more than $2 million in financing from multiple investors interested in the Sneden Place project in 2005 and 2006, New York politicians arrested in mayor's race corruption probe according to a lawsuit filed by investor Sol Menche in Rockland State Supreme Court in 2010. In the suit, Menche charged that Gestetner diverted investors' money for his own use. "As a result of Gestetner's misappropriation of Menche's investment, as well as funds invested by others in the condominium project, this project was rendered insolvent and Gestetner was unable to complete the project," Menche's lawyers claimed in the suit. Disgraced NY politicians through history Gestetner never responded to the suit. As a result, on April 29, 2011, he was ordered to pay Menche $633,335. Menche, 64, of Monsey, could not be reached for comment. During a phone interview on Friday, Gestetner denied any wrongdoing in the apartment development case. He said he had no personal connection with Jasmin or any other Spring Valley officials. "This is all a surprise to me," he said of the FBI phone tap. "I still hope to build the apartments, but it is difficult to get bank financing." Gestetner declined to comment on Menche's accusations.

Newsday
Like You like this.

Newsday via Newsday Sports The captain is back.

Derek Jeter to return to Yankees today www.newsday.com Derek Jeter will rejoin the Yankees' depleted lineup for Thursday afternoon's series finale against the Royals, according to Newsday's David Lennon. 56 minutes ago

Newsday

Most popular
Stories Photos

Galleries

Pirate's Booty maker to lay off all LI workers

7/10/13

Sources: Suffolk subpoenas Nassau cops in shooting

7/10/13 7/10/13 7/10/13 7/10/13

PD: 10-foot shark washes up in Long Beach Neighbors petition against $6M complex 11 women on list of 249 top LI executives

advertisement | advertise on newsday

http://www.newsday.com/news/new-york-corruption-case-feds-cast-a-wide-net-1.5246829

Page 2 of 4

New York corruption case: Feds cast a wide net

7/11/13 9:21 AM

GESTETNER, JASMIN TAPPED AT SAME TIME Federal investigators tapped Gestetner's phone in January 2012, when a judge signed an order allowing the tap to run for 60 days. That authorization was renewed in late March, for another 60 days. At the same time, FBI agents had taps on two of Jasmin's phones. Federal investigators first tapped one of the mayor's phones in November 2011, according to federal documents. The agents received permission from a judge to tap a second Jasmin phone in December 2011. The first tap was extended an additional 60 days later that month, according to the documents. On Feb. 8, 2012, FBI agents and federal prosecutors received permission from a federal judge to tap a third phone belonging to Jasmin. In all, federal investigators had Jasmin's phones bugged from November 2011 through April 2012, according to the documents. It was during that time that Jasmin allegedly met with Stern at a Suffern hotel and proposed an underthe-table deal where she would steer the contract to build a village community center to Stern and the undercover FBI agent, in return for a secret 50 percent cut of the contract. Jasmin has pleaded not guilty to mail fraud, a charge that could land her behind bars for up to 20 years if she's convicted. Her lawyer, Benjamin Ostrer, could not be reached Friday for comment. TAPS KEY TO THE OTHER BRIBERY CHARGES Federal investigators used phone taps aggressively in a related bribery scheme, as well. State Sen. Malcolm Smith, (D-Queens), used Stern as a go-between to bribe Republican Party county chairmen to set up a New York City mayoral bid as a Republican, officials contend. In return, Smith promised Stern that he would help secure $500,000 in state transportation funds to build an access road to the proposed Spring Valley community center. FBI agents tapped the phones of Smith and his chief fundraiser, Robert Calentine, beginning in November 2012, records show. The agents renewed the taps in January and again in March of this year. Smith's lawyer did not return calls seeking comment. Calentine has not been charged in the case. He could not be reached for comment. The final extension of taps on Smith's and Calentine's phones was approved by a federal judge less than three weeks before FBI agents arrested Jasmin, Desmaret, Smith, Bronx GOP chairman Joseph Savone, Queens GOP vice chairman Vincent Tabone, and New York City Republican City Council member Daniel Halloran on April 2. They have all pleaded not guilty. User rating:
(2) Click to rate

Real Estate for Sale

www.BakerResidential.com New Homes in Wallkill, NY. Coming Soon. Contact Us Today!

Long Island Tick Testing

www.liticktesting.com Have you been bitten by a tick? Test the tick today!

Traffic Systems
www.siemens.com/Traffic-Systems Siemens leads the industry with innovative products and services.

search jobs
search Airconditioning Nurse Rn Supervisor Bookkeeper Full Charge Comptroller Inside Sales

View all top jobs

Post your resume

You might also be interested in:

NYC firefighter arrested on charges of robbing off-duty police officer From newsday.com - News School nurse, teacher and students honored for saving teacher having heart attack From newsday.com Long Island News Bridgehampton school chief quits over theft From newsday.com - Long Island News NJ chemist convicted of fatally poisoning husband From newsday.com Selected for you by our sponsor: Massive Wave Hits Beach From uLive

Brooklyn Teacher Fatally Hit By Cop Using Cell Phone Behind Wheel: Sources From DNAinfo

http://www.newsday.com/news/new-york-corruption-case-feds-cast-a-wide-net-1.5246829

Page 3 of 4

New York corruption case: Feds cast a wide net

7/11/13 9:21 AM

Recommended by

Comments for this page are closed.

Showing 1 comment
Real-time updating is enabled. Sort by
Newest first

Infidel09 1 month ago Another corrupt Democrat. Newsday seem to miss putting that in the article.
Flag Like

Protect Your Privacy

www.markudall.com Join Mark Udall and urge Congress to reform the Patriot Act. Sign now

4 reasons why Mac is slow

macpaw.com/Slow_Mac Wondering why your Mac is getting slow over the time? Learn more now.

Dental Implant Warnings

symptomfind.com/CosmeticDentalCare What You Should Know Before Getting Dental Implants. Read Expert Advice

Services

Our Network
Explore Long Island am New York The Hometown Shopper CareerBuilder Optimum MSG Varsity Long Island Towns Newsday Cars Newsday Homes News 12 Newsday Connect

Join us on Facebook

Join us on Twitter

Sign up for news alerts

Sign up for newsletters

Get our Apps

Newsday mobile

Site Map | Privacy Policy | Your ad choices | Terms of Service | Contact Newsday | Careers | Media Kit | Advertise with Newsday | Help | Copyright 2013 Newsday. All rights reserved.

Hide Toolbar

RSS

Today's most popular

My headlines

My Profile

Log out

http://www.newsday.com/news/new-york-corruption-case-feds-cast-a-wide-net-1.5246829

Page 4 of 4