Ex-Newark Mayor Kenneth Gibson Faces Federal Charges Of Cheating School Board

Jet, August 14, 2000

Former Newark, NJ, Mayor Kenneth A. Gibson was indicted recently on charges he cheated a suburban school board, the latest in a string of corruption allegations to strike New Jersey's largest city in recent years.

The 18-count federal indictment follows a four-year investigation by the Federal Bureau of Investigation and Internal Revenue Service into a school construction project that Gibson's engineering and consulting firm, Gibson Associates, was hired to manage.

Gibson, 68, became the first Black man to lead a major Northeastern city when he was elected in 1970. He served four terms until he was defeated in 1986.

According to the indictment, the school board in Irvington, a small city adjoining Newark, hired the firm in 1991 for $5 million, but the project was never finished. An elementary school was completed and opened in 1994, but the renovation of two middle schools remains unfinished.

The indictment charged that the firm routinely billed for work it did not do and overcharged for other work, and said Gibson failed to pay taxes on some income. It also accused him of trying to bribe two school board members and making at least one payoff to one of them. The members were not identified; both have since left the board, officials say.

Gibson's lawyer, Cathy Fleming, issued a statement calling the indictment "unfortunate and unwarranted."

"Mr. Gibson looks forward to clearing his name and is confident when all the facts are elicited, he will be vindicated," the statement said.

Gibson, a former civil engineer, was accused of giving a former Newark official a no-show job while mayor, but was acquitted of state conspiracy charges in 1982.

The new indictment charges conspiracy, fraud and tax schemes against Gibson and two business associates: Camille Savoca, 53, a vice president and 25 percent owner of Gibson associates, and William Bernowich, 53.

If convicted, Gibson would likely face a five-year prison term through federal sentencing guidelines.