New Jersey Boss Admits $345,000 Theft

William Saksinsky, ex-vice-president of the N.J. State Policemen’s Benevolent Ass’n pled guilty Aug. 10 to defrauding his union of at least $345,000. He agreed to pay NJSPBA $400,000 in restitution and damages. Saksinsky also admitted filing a false 1994 income tax return.

In the plea, Saksinsky implicated the current deputy director of the Newark Police Dep’t, Rocco Malanga. Saksinsky told U.S. Dist. Judge Katharine S. Hayden that Malanga, who is an ex-boss of the NJSPBA’s Newark Chapter, conspired with him and others to divert money from a pool of artificially inflated convention fees. He said they inflated the fees for miniconventions by $10 a person. Then NJSPBA’s ex-president, Frank Ginesi, Malanga and he reportedly split $58,000 in 1992 and $25,000 in 1993.

In another scheme, Saksinsky created secret accounts that only he controlled and into which he would deposit cash and checks ostensibly paid for NJSPBA purposes like insurance. Saksinsky said that from 1991-96 he diverted $326,370 from such accounts and received about $19,300 in illicit checks from those Ginesi controlled.

Malanga had not previously been named in connection with the scandal. “One must be very suspicious of defendants who plead guilty to reduced charges and are seeking leniency,” said Malanga’s attorney Anthony Pope.  Malanga had challenged Saksinsky in a NJSPBA election.

Last Nov., Saksinsky was named in a 32-count indictment along with Ginesi, with whom he ran the union from 1978-97. They were charged with siphoning as much as $1 million from the union from 1991-96. Saksinsky was alleged to have a fortune over $3 million. Ginesi is awaiting trial. His attorney, public defender Chester M. Keller, has not had any plea negotiations with prosecutors.

The charges against the two bosses grew out of a FBI probe triggered by a series of telephone tips in 1997 from some of the NJSPBA’s newly elected leadership. They suspected fraud when they examined the union’s financial records. Asst. U.S. Atty Ralph Marra,  said the investigation continues.

Also, Edward Rappleyea, NJSPBA insurance co-administrator, pled guilty to one count of mail fraud. He admitted to withdrawing $170,000 from union accounts. The funds were used by him and others for real estate, cars and jewelry. [USAO D.N.J, Media Release 8/10/00, N.Y. Times 8/11/00]

Los Angeles Boss Sent to Jail for Theft
L.A. Superior Court Judge Robert J. Perry ordered Gail M. Brown-Rall, ex-secretary of the L.A. Airport Peace Officers Ass’n, Aug. 18 to serve six months in jail for embezzling union funds. Perry also punished her with five years probation and more than $30,000 in restitution. A jury convicted her in June of one count of grand theft.

Ex-treasurer Dax C. Heramis pled no contest to one count of grand theft and testified against Brown-Rall. Perry ordered Heramis to pay $4,000 in restitution and was placed on one year probation.

The two were charged in Oct. 1998 with embezzling more than $100,000 from the union. The case resulted from Nov. 1996 union request to the Dist. Atty. to investigate missing funds and equipment. Expenditures of $68,000 in 1993 and $62,000 in 1994 were questioned. Prose