United States Attorney's Office District of Connecticut
Press Release

BRIDGEPORT MAYOR CONVICTED IN RACKETEERING INVESTIGATION

The United States Attorney's Office for the District of Connecticut announced today that JOSEPH P. GANIM, the five-term Mayor of the City of Bridgeport, was convicted after a two-month jury trial of 16 counts of racketeering, racketeering conspiracy, extortion, mail fraud, bribery, conspiracy, and filing false income tax returns.

GANIM, age 43, of 45 Sailors Lane in Bridgeport, was convicted of corruptly soliciting and receiving more than $500,000 in benefits, including cash, meals, entertainment, merchandise, home improvements and professional services from Paul J. Pinto, the vice president of the Kasper Group, a Bridgeport-based architecture and engineering firm, Leonard J. Grimaldi, the president of Harbor Communications, a public relations firm based in Redding, Connecticut, and Alfred Lenoci Sr and Alfred Lenoci Jr., the president and vice president, respectively, of United Properties, a Bridgeport, Connecticut, real estate development firm, in exchange for steering lucrative city contracts to the Kasper Group, Harbor Communications and United Properties.

Among other things, GANIM was convicted of extortion in connection with his selection in 1996 of the Professional Services Group ("PSG") to operate the city's waste water treatment facilities. GANIM conditioned his selection of PSG, a client of Mr. Grimaldi's, upon the company's payment of $350,000 to Mr. Grimaldi and Mr. Pinto. GANIM was also convicted of bribery in connection with his awarding in 1999 of an 18- year extension of PSG's contract with the city. In return, GANIM received a kickback from Grimaldi in the amount of approximately $150,000 - one third of the consulting fee that Grimaldi was paid by PSG.

In addition, GANIM was convicted of conspiring with Pinto and the Lenocis to accept $1 for every square foot of commercial space built by United Properties in Bridgeport in return for GANIM's support for and approval of those projects. GANIM was also convicted of fraudulently concealing his use of hundreds of thousands of dollars of municipal funds to purchase a $1 million life insurance policy for himself.

GANIM faces up to a total of 126 years imprisonment, forfeiture in the amount of $500,000 and fines of up to $250,000 for each count of conviction. He is presently scheduled to be sentenced on July 1, 2003 by United States District Judge Janet Bond Arterton.

Paul J. Pinto, Leonard J. Grimaldi and eight other defendants previously pleaded guilty to racketeering, bribery and tax fraud. They are due to be sentenced in May 2003.

United States Attorney Kevin J. O'Connor stated that "this case lifted a window and exposed greed and corruption in the City of Bridgeport. Investigating and prosecuting public corruption has been and will continue to be a top priority for this office."

Michael J. Wolf, Special Agent In Charge of the Federal Bureau of Investigation in Connecticut stated that "the jury's verdict today marks a victory for the citizens of Bridgeport and, importantly, a victory for our criminal justice system. This investigation and prosecution exposed corrupt activities in the City of Bridgeport and exposed those responsible for the corruption. The FBI remains committed to ensuring that all corruption in Bridgeport is rooted out and replaced by honest government for out state's largest city."

Joseph Galasso, Special Agent In Charge of the Internal Revenue Service, Criminal Investigations, stated that "IRS agents followed the money trail and that trail ultimately led to the jury's conviction of Mayor Ganim."

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigation, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was prosecuted by Supervisory Assistant United States Attorney Ronald S. Apter and Assistant United States Attorney Michael R. Sklaire.

CONTACT:

U.S. ATTORNEY'S OFFICE
Delcie Thibault
Public Information Office
(203)821-3722 Office
(203)627-1082 Cell