Birdsall defendants plead not guilty

BY KEITH HEUMILLER
Staff Writer

Birdsall Services Group (BSG) and seven of its former executives and shareholders pleaded not guilty on May 20 to alleged violations of campaign finance laws, agreeing to post bails ranging from $75,000 to $90,000.

The defendants, who appeared before Judge Wendel Daniels in state Superior Court in Toms River last week, include retired BSG CEO Howard Birdsall and former Senior Vice President William Birdsall.

All of the defendants also rejected plea offers from the state Attorney General’s Office, deals that would carry between threeand five-year sentences and require the party to “fully cooperate against any remaining co-defendants.”

“That is unacceptable, your honor,” said John McDonald, the attorney representing Howard Birdsall, in comments recorded in court.

“We are going to have a lot of motions; there is a lot going to go on in the case. But we are not ready now,” said McDonald, of McDonald and Rogers, Somerville,

The Attorney General’s Office alleges that Eatontown-based BSG and its indicted employees engaged in illegal conduct in “multiple counties,” including Monmouth.

According to a spokesman, the state opted to select Ocean County as the venue for the legal proceedings. Both Birdsalls — in addition to BSG’s Alan Hilla Sr., former executive vice president for business development; James Johnston, former president of environmental consulting; and Robert Gerard, former chief marketing officer — accepted bail amounts of $90,000, with no 10 percent cash option.

Thomas Rospos, former executive vice president, and Scott MacFadden, chief administrative officer, agreed to bail amounts of $75,000, also with no 10 percent option.

Rospos, who had previously agreed to the lowered bail amount, was credited for his level of cooperation with the Attorney General’s Office, according to lead prosecutor and Deputy Attorney General Anthony Picione.

“He has given a series of two proper statements … that the state may be seeking to use during the trial of this matter,” he said.

MacFadden’s attorney, William Cunningham, successfully petitioned Daniels for the lower bail amount last week, citing his client’s less punitive plea deal and explaining that he was not a flight risk.

“My guy is not going anywhere,” he said. “He’s been here his whole life.”

MacFadden, Gerard and Johnston rejected plea deals on May 20 that would have carried three-year state prison terms and required each party to pay full restitution to “any and all victims” and forfeit any campaign contributions that were reimbursed by BSG or returned by any politicians or political organizations, Picione said.

The reduced deals reflect only the amount of time a defendant was involved in the alleged illegal behavior, he said.

“That takes into account the fact that this defendant was involved in the scheme for less of a period of time than the original four defendants,” Picione said, referring to Mac- Fadden.

“The defendant is still exposed to every single charge that the other defendants are exposed to. And if he doesn’t take that plea offer — which he hasn’t thus far — he still is exposed to the same after trial. He is an equal member of this conspiracy.”

The remaining four defendants rejected deals carrying five-year state prison sentences, for a second-degree charge of making false representations for a government contract.

In additional to the mandatory restitution penalties, all seven of the rejected deals would have included 10-year bans on state contract work and required the accepting party to cooperate with the prosecution.

Charges are also levied against BSG itself. Attorney Joseph Hayden, of Walder, Hayden and Brogan, entered a not guilty plea on behalf of the firm and rejected a deal that would have carried $1 million in penalties and a 10-year state contract ban on a second-degree count of false representation and a first-degree count of financially facilitating criminal activity.

“That is unacceptable at this time,” Hayden said.

The attorneys representing the various defendants plan on coordinating a “unified defense effort,” but are currently mired in hundreds of thousands of pages of records, communications and other records compiled by the state as part of its investigation, McDonald said. He and others asked for 90 days of review before meeting again with the court, in opposition to the state’s request for four weeks.

“There is an awful lot that is going to have to go on probably over the course of the summer before we are in a position to know exactly where we stand in the case, exactly what the evidence is against the client [and] whether or not we are making a counteroffer,” he said. Daniels eventually ruled that both sides would have to meet again within 75 days. A hearing has been scheduled for Aug. 5.

The seven defendants have all been charged with making illegally reimbursed political contributions ranging from $45,797 to $241,000 and totaling nearly $700,000. Those contributions, according to the state, were used to procure public contracts from various entities throughout Monmouth and Ocean counties.

The Attorney General’s Office declined to comment on when, or if, charges would be levied against any local officials, municipalities, or counties in relation to the BSG indictments.