02-06-04 -- Ginesi, Frank -- Sentencing -- News Release

Former President of N.J. Police Union Sentenced to 27 Months for Embezzlement, Tax Fraud

NEWARK - The 81-year-old former president of the New Jersey State Patrolman's Benevolent Association was sentenced today to 27 months in prison for defrauding the union and filing a false tax return, U.S. Attorney Christopher J. Christie announced.

U.S District Judge Dennis M. Cavanaugh also ordered Frank Ginesi of Clark to pay the Patrolman's Benevolent Association (PBA) $352,420 in restitution. Judge Cavanaugh ordered Ginesi to report to prison by March 19.

Ginesi pleaded guilty April 21, 2003, admitting that he defrauded the PBA in a scheme that spanned approximately eight years, according to Assistant U.S. Attorney Mark J. McCarren.

Ginesi, who from about 1978 through 1996 was president of the state PBA, admitted opening bank accounts in the name of the organization without disclosing the activity in the accounts to other PBA officials and auditors. Ginesi admitted diverting PBA funds for his own use. He further admitted to filing a false 1995 income tax return in which he failed to report income from the scheme.

Ginesi also admitted knowing about other similar secret accounts opened by former PBA executive vice president William Saksinsky, who pleaded guilty to related charges in August 2000. Edward Rappleyea, the former co-administrator of the PBA insurance fund, also pleaded guilty in August 2000, when he admitted to making illicit withdrawals of PBA funds.

Saksinsky and Rappleyea both await sentencing. As part of his plea agreement, Saksinsky agreed to pay $400,000 in restitution to the PBA, and has to date repaid more than half the amount.

Under U.S. Sentencing Guidelines, Judge Cavanaugh will determine the actual sentence based on a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any.

Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen; Postal Inspectors, under the direction of U.S. Postal Inspector in charge Martin D. Phanco, and Special Agents of the IRS Criminal Investigation Section, under the direction of Special Agent in Charge Patricia J. Haynes, for their work in developing the case.

The Government is represented by Assistant U.S. Attorney McCarren.

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Defense Attorney:

Barry Evenchick, Esq. Roseland