Essex County Man Admits Role in Port Bribery Scheme

TRENTON, NJ—An Essex County, N.J., contractor admitted today to paying bribes to an employee of a container ship terminal facility at a port in Union County to secure contracts for construction projects, U.S. Attorney Paul J. Fishman announced.

Louis Gargiulo, 58, of Cedar Grove, N.J., pleaded guilty to an information charging him with one count of using the mail in aid of commercial bribery. Gargiulo entered his guilty plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.

According to documents filed in this case and statements made in court:

Gargiulo was a principal in LG II, a general contracting company in Cedar Grove. From 2000 through February 2011, Gargiulo paid kickbacks to Donald Olesky, who was then the director of facilities maintenance at Maher Terminal, Port Elizabeth, N.J., in exchange for Olesky steering work to LG II. From November 2010 through February 2011, Gargiulo paid Olesky $18,000 in kickbacks for a $300,000 construction contract that Olesky had steered to LG II.

The count to which Gargiulo pleaded guilty carries a maximum potential penalty of five years’ imprisonment and fine up to $250,000 or twice the gross amount of any gain that Gargiulo derived. He is scheduled to be sentenced on May 18, 2012.

Olesky previously pleaded guilty to engaging in commercial bribery before Judge Wolfson and is awaiting sentencing.

U.S. Attorney Fishman credited special agents of the FBI’s Trenton Field Office, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Office in Trenton.