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Department of Justice

Flooring Contractor Admits Bribing Paterson School Official

NEWARK - The owner of Newark-based commercial flooring business which performed flooring and construction services for the Paterson Public School District pleaded guilty today to making concealed payments to a school district official in exchange for facilitating the receipt of contracting work and the renewal of contracts, U.S. Attorney Christopher J. Christie announced.

Richard Costabile, 45, of Bedminster, president of the Ironbound Floor Covering Company, Inc., admitted providing more than $5,000 in flooring materials and installation services to a school district official, in the form of work to a home the school official was building in Sussex County, according to Assistant U.S. Attorneys Richard E. Constable III and Jeffrey S. Chiesa.

The district-wide flooring contract Ironbound had with Paterson School District was valued at more than $200,000 annually. Costabile provided the more than $5000 in materials and labor to the school official after receiving an annually renewable contract to perform flooring work for the school district.

Costabile pleaded guilty before U.S. District Judge Jose L. Linares to a one-count information charging him with making corrupt payments (bribery), which carries a maximum penalty of 10 years in prison and a fine of $250,000. Judge Linares scheduled Costabile's sentencing for June 28. Costabile is free on a $100,000 unsecured bond pending sentencing.

Costabile admitted that he installed flooring at the district official's home. Further, Costabile admitted that he performed the work, free of charge, in exchange for ensuring receipt of future work and for prompt payment of invoices submitted by Ironbound.

The school official who received the bribe was not specifically identified in court nor in court documents, but was described by Costabile as the Director of Facilities for the school district.

Today was Costabile's first appearance in court in connection with the corruption investigation, which is continuing, Christie said.

Christie credited Special Agents of the FBI's Newark Division, under the direction of Special Agent in Charge Leslie Wiser, Jr., with developing the case against Costabile.

The government is represented by Assistant U.S. Attorneys Richard E. Constable, III and Jeffrey S. Chisa of the U.S. Attorney's Office Special Prosecutions Division in Newark.