Prosecutors say Giacomo DeRosa's company received inflated contracts in exchange for kickbacks.
NEWARK -- A federal judge Monday sentenced a former contractor for the Newark Watershed Conservation and Development Corp. to six months in prison for his role in a kickback scheme, much less time behind bars than sentencing guidelines recommended he should serve.
Giacomo DeRosa, a former contract for the Newark Watershed Conservation and Development Corp., was sentenced Monday on federal money laundering charges stemming from his role in a kickback scheme. (File photo)
Giacomo "Jack" DeRosa, 68, previously had pleaded guilty in January in the U.S. District Court in Newark to a charge of laundering $85,000 in kickbacks to the non-profit corporation's special projects manager, Donald Bernard Sr.
Prosecutors have said DeRosa's East Orange company, Essex Home Improvement Corp., was among those that received inflated contracts in exchange for the kickbacks, taking in more than $350,000 in payments from the watershed between 2008 and 2013.
Bernard, who also has pleaded guilty in federal court to charges of bribery and filing a false tax return, sought kickbacks from watershed contractors that totaled more than $409,000, according to the U.S. Attorney's Office.
DeRosa's attorney, Anthony Pope, argued that unlike other vendors who allegedly received no-show contracts from watershed officials, DeRosa actually did the work. "There was no greed here," he said.
Although DeRosa faced more than two years in prison under federal sentencing guidelines, Pope made an impassioned case that DeRosa was needed as a caregiver for his wife, who suffers from debilitating medical conditions and is confined to a wheelchair.
Judge Jose L. Linares agreed to a departure from the sentencing guidelines, saying he would recommend the Bureau of Prisons place DeRosa in a halfway house near his wife.
But the judge also ordered that one of the three years DeRosa is to spend on supervised release be served under home confinement, saying he had to be held accountable for his actions.
DeRosa will also be on the hook to pay back the $85,000 in restitution.
The watershed corporation, which previously ran Newark's water infrastructure, has been embroiled in controversy over a culture of bribery and kickbacks detailed in a scathing 2014 report by the state comptroller's office, which accused former executive director Linda Watkins-Brashear of dolling out more than $1 million contracts to her friends.
Watkins-Brasher later pleaded guilty in December 2015 to federal charges of wire fraud and filing a false tax return. She is scheduled to be sentenced on the charges Jan. 25, 2017, court records show.
The watershed corporation was officially dissolved in 2013. The next year, a newly constituted board of trustees voted to file for bankruptcy in an attempt to recover looted funds.
Former mayor and now U.S. Sen. Corey Booker was one of 18 people named as defendants in a bankruptcy lawsuit by the trustees, who argued Booker failed to conduct oversight of the watershed's administration while serving as chair of the agency's board of trustees.
Booker argued he had taken immediate action to bring the watershed under the city's control once evidence of corruption appeared. A federal judge dismissed him from the suit in June.
Thomas Moriarty may be reached at tmoriarty@njadvancemedia.com. Follow him on Twitter at @ThomasDMoriarty. Find NJ.com on Facebook.