N.J. Builders Guilty in Bribery
NEWARK, N.J. -- Four developers have pleaded guilty to paying $515,000 in kickbacks to obtain loans from the defunct City Federal Savings Bank.
The bank was the nation's 20th-largest thrift, with assets of $10 billion, when federal regulators seized it in December 1989. The bank's failure will cost the government $1.5 billion, according to U.S. Attorney Michael Chertoff.
The four contractors admitted paying William Spagnoli, who was then senior vice president of City Federal, sums ranging from $75,000 to $125,000 to obtain loans totaling $116 million.
Banker Trial Set
Mr. Spagnoli was indicted in January on charges of taking kickbacks of $2.5 million from eight developers to approve loans of $338 million. Mr. Spagnoli faces trial Sept. 16.
Pleading guilty to tax evasion and bribery charges were Ronald Acquaviva, Frank Dimisa, and Harry Kantor, all of Holmdel, N.J., and Victor Losquadro of Freehold, N.J. Each faces up to 10 years in prison, Mr. Chertoff said.