Downtown: Liberty Harbor project managers face charges for shaking down construction firms and suppliers

Tuesday, January 10, 2012
By The Jersey Journal


Robert H. Feaster


Joel M. Badway

Two men who once worked as a project manager and his assistant at the Liberty Harbor development in Downtown Jersey City have been charged with shaking down construction companies and suppliers, officials said yesterday.

"Alleged kickbacks under any circumstance are criminal and unacceptable," Hudson County Prosecutor Edward DeFazio said yesterday as he announced the arrests of Robert H. Feaster Jr., 46, of Stewartsville, and Joel M. Badway, 46, of Phillipsburg.

The two were arrested Friday and charged with commercial bribery and conspiracy to commit commercial bribery and they remained in custody yesterday at Hudson County jail in Kearny in lieu of cash or bond bails of $50,000, DeFazio said.

The investigation began last June when principals in the development project found various contractors and suppliers on the project had been making large payments to Feaster, DeFazio said.

During that time, Feaster and Badway allegedly met with various contractors and suppliers, and demanded that they "kick back" 5 to 10 percent of their total contracts or be terminated from the project, DeFazio said.

To help disguise the scheme, Feaster opened bank accounts in the names of FM Management and Sugarhill Consulting to receive the illegal payments, DeFazio said. Bank records show deposits in excess of $385,000 in checks from contractors and suppliers on the project, DeFazio said.

Interviews with the contractors confirmed the purpose of the payments and that they were made to Feaster and Badway through the accounts, DeFazio said.

Feaster was hired by Liberty Harbor in 2006m and he brought Badway on as his assistant, officials said.

Liberty Harbor developer Peter Mocco said both men were fired in January 2008. Mocco said the pair worked on the first phase of the massive Liberty Harbor project, which included 800 residential units, as well as commercial and retail space.

Liberty Harbor now has 8,000 residential units and spans several blocks that hug Grand Street.

The developer said any form of corruption undermines the housing industry and the development of urban areas like Jersey City.

"The Prosecutor's Office, in taking these steps, has indicated that at all levels, corruption will not be tolerated in Hudson County," Mocco said last night. "I think that is excellent, and very positive."