NJ State Senator in Court Today on Fraud and Bribery Charges: Bryant

New Jersey State Senator Wayne Bryant is expected in federal court this morning, Apr. 9, where he will plead not guilty to fraud, bribery and pension-padding charges.^[1]

He is accused of using his clout as head of the Senate Budget Committee to steer millions in grants to two state schools that gave him no-show jobs.^[2] Bryant was named in a 20-count indictment accusing the senator with tripling his taxpayer-funded pension through jobs at the University of Medicine and Dentistry of New Jersey in Stratford (UMDNJ), Rutgers-Camden Law School and Gloucester County Board of Social Services.^[3]

Former UMDNJ dean R. Michael Gallagher, who was indicted along with Bryant also faces multiple fraud charges; the indictment alleges that Gallagher capitalized on Bryant's influence to become dean, then put Bryant on the school's payroll.^[4] In exchange, the senator, who at one time was one of Trenton's most powerful lawmakers, helped out the school's interests at budget time.^[5]

Bryant and Gallagher face mail and wire fraud charges that could result in lengthy prison terms and large fines if they are convicted.^[6] Bryant also faces bribery charges in connection with salaries he drew from jobs for which he allegedly performed little work.^[7]

Mail fraud
Mail Fraud is criminalized by 18 U.S.C. § 1341. Section 1341 is a rather dense and convoluted statute. Under this section, it is a crime for a person who has devised or intends to devise any scheme or artifice, to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice, to place in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or to deposit or cause to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or to take or receive therefrom, any such matter or thing, or to knowingly cause to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing.

Honest Services Fraud
When a person is convicted of some type of “honest services” fraud, it really means that 18 U.S.C. § 1346 is being used, which it is in Bryant’s case. Under section 1346, the term “scheme or artifice to defraud,” as found in the mail fraud statute, is understood to include a scheme or artifice to deprive another of the intangible right of honest services.

Bribery Concerning Programs Receiving Federal Funds
Bryant is also being accused of violating 18 U.S.C. § 666(a)(2), which is bribery concerning programs receiving federal funds. A person commits a crime under this statute if they corruptly give, offer, or agree to give anything of value to any person, with intent to influence or reward an agent of an organization or of a State, local or Indian tribal government, or any agency thereof, in connection with any business, transaction, or series of transactions of such organization, government, or agency involving anything of value of $5,000 or more.

A violation of section 1341 alone can result in a fine of up to $1,000,000, imprisonment for up to 30 years, or both.^[8] Bryant, faces a maximum of 20 years on each of the most serious charges, however, he could be exposed to a maximum of 150 years in prison if convicted on all charges and sentenced to consecutive terms, according to federal prosecutor William Fitzpatrick.^[9] Gallagher faces a maximum 220-year term if convicted on all counts and is sentenced to maximum consecutive terms for each.^[10]

Bryant is also accused of violating 18 U.S.C. § 1343 (Wire Fraud) which has been previously discussed here.

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^[1] Staff, Bryant due in court this morning, Newark Star-Ledger, Apr. 9, 2007, available at http://blog.nj.com/ledgerupdates/2007/04/bryant_due_in_court_this_morni.html (last visited Apr. 9, 2007).
^[2] Id.
^[3] Angela Delli Santi, Bryant, UMDNJ dean to plead not guilty, Associated Press Newswire, Apr. 7, 2007, available at LEXIS, News Library, Wire News Services File.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 18 U.S.C. § 1341 (2007).
^[9] Santi, supra note 3.
^[10] Id.