3rd Birdsall Executive Gets Jail In Pay-To-Play Scheme

Trenton, NJ — A third executive in what was one of the largest engineering firms in New Jersey has been sentenced to jail for his role in a million-dollar scheme to avoid New Jersey's pay-to-play political contribution laws, the state attorney general's office announced.

William Birdsall, 67, of Manchester, was sentenced Monday to 270 days in the Ocean County Jail as a condition of a two-year term of probation by Superior Court Judge James Den Uyl in Toms River, Acting Attorney General Christopher S. Porrino announced.

Birdsall, who was the senior vice president and a large shareholder of Birdsall Services Group, pleaded guilty on May 2 to third-degree misconduct by a corporate official, Porrino's office said. Birdsall paid $129,115 to the state, representing forfeiture of the political contributions he made that were reimbursed by BSG, and paid a $75,000 public corruption profiteering penalty, Porrino said.

Birdsall also is debarred for 10 years from personally bidding on public contracts in New Jersey or holding an interest of 5 percent or more in any company that bids for such contracts.

“By putting three executives of this firm behind bars, we’ve demonstrated that we won’t tolerate corrupt schemes to evade New Jersey’s pay-to-play law,” Porrino said. “These defendants secured millions of dollars in public contracts for which they should have been disqualified, stacking the deck in their favor in exactly the way the law was intended to prevent.”

Birdsall Services Group (BSG) was an engineering firm based in Monmouth County that now is out of business. William Birdsall was one of seven executives and shareholders charged in a March 2013 indictment in the scheme in which the company disguised corporate political contributions by reimbursing employees for personal contributions. More than $1 million in political contributions were made and reimbursed under the scheme, Porrino's office said.

On April 22, William Birdsall’s brother, Howard Birdsall, 73, of Brielle, the former CEO and largest shareholder of BSG, was sentenced to four years in prison and paid $49,808 to the state.

On June 10, Thomas Rospos, 64, of Belmar, the former executive vice president and second-largest shareholder, was sentenced to three years in prison after pleading guilty to third-degree tampering with public records or information. He paid $150,000 to the state in forfeiture of the illegal political contributions he made. He is debarred for 10 years from public contracts in New Jersey.

Additionally, Scott MacFadden, 62, of Brick, the former chief administrative officer of BSG who was the Brick Township business administrator for several years, pleaded guilty on Jan. 6 to third-degree misconduct by a corporate official. He is awaiting sentencing and faces a recommended sentence of up to 364 days in jail as a condition of a term of probation. He must forfeit $30,000 in reimbursed political contributions he made.

The firm itself pleaded guilty on June 13, 2013 to charges of first-degree money laundering and second-degree making false representations for government contracts. As a result of its plea, BSG paid two major criminal penalties: a $500,000 public corruption profiteering penalty and a $500,000 anti-money laundering profiteering penalty. In each instance, the penalty was the maximum amount authorized by law. BSG also paid the state $2.6 million to settle a civil forfeiture action filed by the Attorney General’s Office in connection with the criminal case.

Two former employees of the marketing department of BSG, Philip Angarone, 44, of Hamilton, the former marketing director, and Eileen Kufahl, 51, of Bradley Beach, pleaded guilty for their roles in the scheme before the indictment was returned and also are awaiting sentencing.

The remaining defendants who are charged in the indictment face first-degree counts of conspiracy and money laundering, as well as other charges.

Under the scheme, instead of Birdsall Services Group making corporate political contributions to campaigns and political organizations that would disqualify it from public contracts awarded by certain government agencies, shareholders and employees of the firm made personal political contributions of $300 or less, which are deemed unreportable.

Multiple personal checks were bundled together at Birdsall Services Group and sent to the appropriate campaign or political organization. The shareholders and employees were then illegally reimbursed by Birdsall Services Group, directly or indirectly, through added bonus payments, and the firm falsely omitted the illegally reimbursed contributions in documents filed with the Election Law Enforcement Commission (ELEC) and with government agencies that awarded the firm engineering services contracts. The scheme continued for more than six years and involved more than $1 million in contributions.

Deputy Attorney General Anthony A. Picione, Chief of the Division of Criminal Justice Corruption Bureau, and Deputy Attorney General Mallory Shanahan are prosecuting the case and handled the sentencing hearing today.