Operation Bid Rig was a federal investigation into public corruption and related criminal activity in New Jersey conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Attorney's Office for the District of New Jersey. The investigation began with public corruption cases in Monmouth and Ocean counties and subsequently expanded to additional municipalities, political figures, developers, religious figures, charitable organizations, and other individuals.
The investigation first became publicly known in 2002 when Terrance D. Weldon, the former mayor of Ocean Township and former city manager of Asbury Park, pleaded guilty to three counts of extortion. Weldon admitted receiving more than $60,000 in cash bribes from three developers between 1998 and 2001. The federal investigation had included wiretap evidence concerning developers and public officials in Monmouth County.
Operation Bid Rig II followed in 2003 and 2004. Investigators used Robert "Duke" Steffer, a former developer, and Steffer Industries Inc. as part of an undercover investigation. Federal prosecutors later announced the arrests of 11 current and former Monmouth County public officials. The officials were accused of accepting or seeking payments in connection with public contracts or agreeing to launder money for an undercover contractor.
The officials implicated in the second phase included Paul Zambrano, mayor of West Long Branch; John Merla, mayor of Keyport; Paul Coughlin, mayor of Hazlet; Richard Iadanza, deputy mayor of Neptune Township; John Hamilton Jr., councilman in Asbury Park; Joseph DeLisa, councilman in West Long Branch; Robert Hyer, councilman in Keyport; Raymond O'Grady, councilman in Middletown and director of the Monmouth County motor pool; Patsy Townsend, director of construction and code enforcement in Neptune; Joseph McCurnin, operations manager for the Monmouth County Division of Transportation; Thomas Broderick, assistant Monmouth County roads supervisor; and Richard Vuola, commissioner of the Marlboro Municipal Utilities Authority. Monmouth County Freeholder Harry Larrison Jr. died before his case reached court.
Operation Bid Rig III developed after Solomon Dwek, a real estate developer from Ocean Township, was arrested in May 2006 on federal bank fraud charges involving approximately $50 million. Dwek subsequently became a cooperating witness for the FBI. His cooperation initially involved an investigation of money laundering and later provided investigators with access to individuals involved in New Jersey political and municipal affairs.
Dwek was associated with the Syrian Jewish community in Deal, New Jersey. His parents were associated with the Deal
