NEWARK – A contractor who performed millions of dollars worth of window installation and construction work for the Paterson Public School District was sentenced today to 24 months in prison for over billing the school district and providing concealed benefits to two school district officials, U.S. Attorney Christopher J. Christie announced.

.U.S. District Judge Jose L. Linares also ordered Carl Babb, 67, of Elmwood Park, to pay $750,000 in restitution to the school district. Babb pleaded guilty on April 14, 2005, to the scheme in which he paid the school district officials in exchange for their facilitating the receipt of contracting work, the renewal of contracts and payment without the requisite inspections of work performed.

Babb had pleaded guilty to a three-count Information before Judge Linares. The Information charged Babb with mail fraud and two counts of making corrupt payments to school district officials.

Babb will have to surrender to the federal Bureau of Prisons by Oct. 2 to begin serving his sentence.

Judge Linares also sentenced today Louis Malone, 47, of Pompton Lakes, the former Director of Maintenance and Custodial Services in the Paterson district, to five years of probation with six months of home confinement with electronic monitoring. Judge Linares also ordered Malone to pay $10,000 in restitution and fined him $3,000.

At his plea hearing, Babb admitted that from 1999 though October 2002, while he was the principal operator of Olympic Windows Installers, Inc., a Hawthorne- and Paterson-based construction business, he gave concealed payments and benefits to two School District officials, including Milone. Milone pleaded guilty on Feb. 17. See that news release by following links at www.usdoj.gov/usao/nj/press/index.html

James M. Cummings, 59, of Sparta, the former Director of Facilities for the school district, was identified at his Feb. 6, 2006 guilty plea as the other school official to take things of value from Babb and another contractor, Paint Smart Contractor, Inc. of Nutley. Cummings admitted taking $47,000 in cash and free construction work at his home. Cummings sentencing is scheduled for Sept. 19. Cummings had pleaded guilty to two counts of soliciting and accepting corrupt payments.

In exchange for the benefits bestowed, which included Caribbean sea cruise vacations and construction and home improvement projects at the officials’ private residences, Babb facilitated his receipt of School District work and the renewal of contracts with the School District. In addition, the work performed by Olympic Windows was not regularly inspected by the School District, normally a prerequisite for payment. Babb acknowledged that he used this freedom from inspections to overcharge the School District from 10 percent to 15 percent for work performed by Olympic Windows. This over billing scheme resulted in the School District being defrauded of approximately $750,000.

In response to questions from Judge Linares, Babb admitted that he submitted purchase orders to the School District for contracting work and services on behalf of Olympic Windows which either materially overstated the cost of the work performed or claimed work had been completed when if fact the work was only partially completed. Babb acknowledged providing Milone with $14,000 worth of payments and benefits including two sea cruise vacations as well as installing windows and vinyl siding at his personal residence. Babb admitted that he performed approximately $35,000 worth of home improvements for the other School District official including: the installation of a front door; wall framing and drywall work, and the finishing of a basement. The other School District official was not named in court today or in court documents.

Christie credited Special Agents of the FBI Newark Division, under the direction of Special Agent in Charge Leslie G. Wiser, Jr., with developing the case against Babb.

The government is represented by Assistant U.S. Attorneys Jeffrey S. Chiesa and Ricardo Solano, Jr., of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Defense Counsel:
Blair Zwillman, Esq. Woodbridge