03-04-05 -- Kushner, Charles -- Sentencing -- News Release

Political Contributor and Developer Charles Kushner Sentenced to Maximum 24 Months for Witness Retaliation and Other Crimes

NEWARK - Real estate developer and political contributor Charles Kushner was sentenced today to 24 months in prison for his pleas of guilty to assisting in the filing of false tax returns, retaliating against a cooperating witness and making false statements to the Federal Election Commission, U.S. Attorney Christopher J. Christie announced.

Calling Kushner's crime "disgraceful and reprehensible," U.S. District Judge Jose L. Linares sentenced Kushner to the top of the eligible range - 18 to 24 months - under the his plea agreement with the government.

"The court of law was the great equalizer for Mr. Kushner, who had obviously convinced himself that his power, influence and immense wealth put him above the law," Christie said. "We are very pleased that justice was done."

Judge Linares ordered Kushner, 50, of Livingston, to surrender to the federal Bureau of Prisons by May 9 to begin serving his sentence. Judge Linares also fined Kushner $40,000, the maximum amount as determined under U.S. Sentencing Guidelines.

On Aug. 18, Kushner pleaded guilty to 16 counts of assisting in the filing of false tax returns, one count of retaliating against a cooperating witness and one count of making false statements to the FEC.

Kushner admitted then that, as chairman of Kushner Companies, he assisted in filing false tax returns claiming over $1 million in partnership charitable contributions as office expenses, causing losses to the IRS of between $200,000 and $325,000.

Kushner further admitted at his plea hearing that he devised a scheme to retaliate against a cooperating witness - his sister - and her husband by having a prostitute seduce the husband and covertly filming them having sex. Kushner admitted that he paid a private investigator $25,000 to arrange for the seduction and videotaping of the cooperating witness' husband. Kushner admitted to personally recruiting the prostitute and instructing that the videotape be mailed to the cooperating witness.

Kushner also admitted to making false statements to the Federal Election Commission which allocated campaign contributions to certain individuals who had no knowledge that contributions were being made in their names and had not consented to him making the contributions.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Joseph Billy, Jr.; and Special Agents of the Internal Revenue Service Criminal Investigation section, under the direction of Special Agent in Charge Patricia J. Haynes.

The case was prosecuted by Assistant U.S. Attorneys Scott Resnik and Thomas Eicher of the Special Prosecutions Division.

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Defense Counsel:

Benjamin Brafman, Esq. New York, NY

Alfred DeCotiis, Esq. Teaneck, NJ

Jeffrey Smith, Esq. Teaneck, NJ