Published: Monday, April 25, 2011, 6:12 PM    

http://www.nj.com/news/index.ssf/2011/04/ex-guttenberg_councilman_vince.html

GUTTENBERG — He was a small fish in the big sting that netted more than 44 people on charges ranging from money laundering to political corruption.

But former Guttenberg councilman Vincent Tabbachino — already facing significant jail time for his conviction last October in the case — pleaded guilty to additional charges today that could likely extend his time in prison.

Tabbachino, 69, of Fairview, acknowledged laundering $125,000 in funds he believed had come out of an illicit business manufacturing knock-off designer handbags.

The owner of a tax preparation business, Tabbachino was one of dozens netted in the widespread federal investigation that came to light in July 2009. Among the 44 charged with money laundering, extortion and political corruption that day were three mayors, two state assemblymen, five Orthodox rabbis. It was the largest sting operation in New Jersey history.

At the nexus of it all was an informant, Solomon Dwek, who secretly began cooperating with the government after he was charged in an unrelated, $50 million bank fraud. Posing as a corrupt developer, Dwek spent three years on a case that spanned from Brooklyn to the Jersey Shore, laundering millions through religious organizations, while documenting tens of thousands of dollars more in cash payments to politicians.

Tabbachino was a one-time police officer and a familiar, jovial face in Guttenberg. He first met Dwek in February 2009 — brought together by Maher Khalil, a Jersey City official who has since pleaded guilty in the case and is now working with the government.

Wearing a hidden surveillance camera to the meeting, Dwek told Tabbachino that he was looking to pull $50,000 in profits from a "label swapping" designer handbag business, according to the indictment that was handed up against him.

The counterfeit handbag operation did not exist. It was an FBI cover story made up as part of the money laundering investigation to make targets believe that they were helping Dwek launder the proceeds of a criminal operation. Prosecutors said Tabbachino directed Dwek — who he knew under the name of David Esenbach — to make a check out to his business. He later gave Dwek several cash payments, minus a 10 percent commission, calling the fee "fabulous," according to surveillance transcripts.

Later, Dwek went through Tabbachino in a separate effort to pay off Ridgefield Mayor Anthony Suarez, who at the time was raising money for a legal defense fund in connection with a lawsuit filed by a political rival.

The charges against Tabbachino were ultimately split into two proceedings. Last fall, he went on trial with Suarez, on charges of attempting to bribe Suarez. While Suarez was acquitted of extortion and bribery, Tabbachino was found guilty by the same jury.

Still to be sentenced on those charges, Tabbachino appeared in court again today before U.S. District Judge Jose L. Linares in Newark, admitting to his role in the money laundering transactions. Under questioning by assistant U.S. attorney Mark McCarren, Tabbachino said he had the informant make the checks payable to Tabbachino Associates, and spread out the cash payments to avoid drawing attention to them. Tabbachino admitted to four separate transactions, one for $50,000, and three for $25,000 each.

"I plead guilty, sir," he told the judge.

He faces up to 20 years in prison when he is sentenced on August 24, although will likely receive far less under sentencing guidelines. Tabbachino also agreed to forfeit approximately $32,000, including the $22,500 he provided to Dwek as part of the final money laundering transaction and more that $9,000 seized from his company’s bank account.