Not to be upstaged by former New York Gov. Eliot Spitzer, former Newark Mayor Sharpe James was found guilty on fraud charges Wednesday in connection with a property scheme involving a female companion. Sharpe's companion, Tamika Riley, was convicted as well.
From a Department of Justice press release:
The prosecution was built around the sale to Riley of municipally-owned properties in Newark. The properties, according to evidence and testimony, were steered to Riley by James, who had a long-running romantic relationship with her. Riley paid only $46,000 for a total of nine properties, and then quickly resold, or "flipped" the properties for more than $600,000.
Evidence at trial revealed that James used his influence and power as both mayor and as a state senator to manipulate and control a city program designed to redevelop run-down properties in the city. The program was intended to enable experienced, financially sound, and qualified developers to buy blighted lots and houses at substantially less than market rates on the condition that they rehabilitate the properties before re-selling them at market prices. With James's help, Riley acquired the properties at cut-rate prices and resold them without any rehabilitation.
Judging from the information provided by the Department of Justice, Riley was unqualified to participate in even a fraudulent real estate deal.
From the same release:
Riley had no real estate or construction experience and did not possess the financial wherewithal or backing required to participate in the program. She was, in fact, the owner of a failed Newark clothing store and had operated an entertainment and public relations firm that reported no income or assets on tax returns in 1999 or 2000, the years before she started flipping Newark properties.
The pair was convicted on a slew of fraud charges. The sentencing guidelines call for prison terms of between five and 12 years. (However, the judge has discretion to impose sentences outside that range.)
New York Times article here.
Start the discussion! Be the first to comment on this story.