[2][3] Operation Bid Rig originated with investigations of public corruption among New Jersey officials in Monmouth and Ocean counties.
The first phase became public in 2002 when former Ocean Township Mayor Terrance D. Weldon pleaded guilty to extorting cash from developers to influence the approval of building projects.
The second phase of the investigation resulted in the February 2005 arrests of 11 elected officials in Monmouth County, who were charged with taking bribes from an undercover cooperating witness.
[5] The investigation snared more than 12 public officials including: The third phase of the investigation—Operation Bid Rig III—began after an individual identified by news sources as real estate developer Solomon Dwek of Ocean Township was arrested on charges of committing $50 million in bank fraud in May 2006.
This network has allegedly laundered tens of millions of dollars through charitable non-profit organizations controlled by rabbis in New York and New Jersey.
[7] According to criminal complaints, Dwek (identified as "CW" for "cooperating witness") informed targets of the sting that he was bankrupt and trying to conceal his assets, claiming involvement in illegal businesses including the sale of counterfeit Gucci and Prada handbags, as well as insurance scams and bank frauds.
Khalil, who is accused of accepting $30,000 in bribes from Mr. Dwek, introduced Dwek to a web of public officials, mayoral and council candidates, and their confidants, whom he called "players"[2] On July 23, 2009, Acting United States Attorney for the District of New Jersey Ralph J. Marra Jr. announced the arrest of the following 44 people:[8] Money laundering Human organ trafficking Political corruption
[16] Solomon Dwek pleaded guilty in October 2010, in federal court in Newark to one count each of money laundering and bank fraud charges amounting to about $50 million.
[19] The following day, he received a sentence of four years in state prison for the separate fraud charges before the New Jersey Superior Court in Monmouth County.
[20] Moshe "Michael" Altman, Union City real estate developer was sentenced to 41 months in prison for money laundering through the charity Gmach Shefa Chaim.
Itzhak Friedlander, another Hudson County developer involved with the charity, was sentenced to two years in prison for his role in the money laundering sting.
[22] Shimon Haber, a Brooklyn developer, pleaded guilty to conspiracy charges related to the money laundering[23] and was sentenced to 10 months' detention—five in prison and five at home.
Schaffer stepped down from the North Hudson Sewerage Authority commissioner and pleaded guilty to criminal information and extortion charges.
[30] Rabbi Saul J. Kassin, of the Syrian Jewish Congregation Shaare Zion Synagogue, pleaded guilty to unauthorized money transmitting.
Michael Manzo (no relation) pleaded guilty to conspiracy to commit extortion under color of official right and admitted accepting bribes of $5,000 from Dwek.
Webb-Washington was sentenced to one year and one day in prison for conspiracy to commit extortion under the color of official right for accepting $15,000 in bribes from informant Dwek.
[42] On December 3, Ocean County Democratic Party executive director Alfonso L. Santoro, who had not been previously charged, pleaded guilty in a federal court to accepting cash payments from Dwek in exchange for promising to introduce him to public officials, including then-Assemblyman Van Pelt.
[46] As part of the FBI sweep, the home and office of New Jersey Commissioner of the Department of Community Affairs Joseph Doria were raided but he was not charged.