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U.S.

Department of Justice
Robert L. Capers
United States Attorney
Eastern District of New York
100 Federal Plaza
Central Islip, New York 11722

FOR IMMEDIATE RELEASE

October 20, 2016

Contact:
Nellin McIntosh
United States Attorneys Office
(718) 254-6323

PRESS RELEASE
NASSAU COUNTY EXECUTIVE EDWARD MANGANO AND TOWN OF OYSTER
BAY SUPERVISOR JOHN VENDITTO INDICTED FOR FEDERAL PROGRAM
BRIBERY, HONEST SERVICES WIRE FRAUD, CONSPIRACY, AND RELATED
CRIMES
Mangano and Venditto Received Bribes and Kickbacks from a Local Businessman Including
Over $450,000 for a No-Show Job for Edward Manganos Wife, Linda Mangano
A 13-count indictment was unsealed this morning in federal court in Central Islip
charging Edward Mangano and John Venditto with conspiracy to commit federal program
bribery and honest services fraud, as well as the related substantive counts, and charging
Mangano with extortion. The indictment also charges Edward Mangano, Linda Mangano, and
Venditto with obstructing justice, and Linda Mangano and Venditto with making false
statements. Since January 2010, Edward Mangano has served as the Nassau County Executive.
Since January 1998, Venditto has served as the Town of Oyster Bay (the TOB or Town)
Supervisor.
The defendants were arrested this morning and will be arraigned today before the
Hon. Sandra J. Feuerstein, United States District Judge, at the United States Courthouse, 100
Federal Plaza, Central Islip, New York. Earlier today, federal agents also executed two search
and seizure warrants at the Manganos residence in Bethpage, New York, and at the County
Executives Office in Mineola, New York.
The charges were announced by Robert L. Capers, United States Attorney for the
Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal
Bureau of Investigation, New York Field Office (FBI), and Shantelle P. Kitchen, Special Agentin-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
Yet again, we announce a breach of trust by two of our public officials. In 2010,
Nassau County voters granted Edward Mangano the opportunity to serve by electing him their
highest ranking official in the County. Similarly, in 1998, Town of Oyster Bay voters granted

John Venditto the honor of electing him their chief elected official. Yet, as alleged in the
indictment, both of these men undermined the very system of laws they promised to uphold by
furthering their personal interests rather than the best interests of their constituents. Sadly,
Mangano also enlisted the assistance of his wife in an attempt to shield his wrongdoing from
public scrutiny, stated United States Attorney Capers. However, no one is above the law, and
the defendants will now be held to account for their actions. Mr. Capers extended his grateful
appreciation to the FBI, IRS-CI, the agencies responsible for leading the governments
investigation, and thanked the Securities and Exchange Commission and the Nassau County
District Attorneys Office for their valuable assistance.
As detailed in the indictment, Edward Mangano and John Venditto abused their
positions as the highest ranking elected officials in Nassau County and the Town of Oyster Bay,
respectively at least, until today. Those involved in this scheme allegedly lied about their
conduct to investigators, fanning the flames of a fire that became too large to contain. Public
corruption wastes countless tax dollars every year, threatens the credibility of governmental
institutions, and opens the door for further criminal activity, stated FBI Assistant Director-inCharge Sweeney.
The public expects its elected officials to serve them honestly and honorably,
stated IRS-CI Special Agent-in-Charge Kitchen. When public officials abuse the power they
have been entrusted for their own personal benefit, they violate the public trust and betray their
constituents. As a law enforcement agency, IRS Criminal Investigation takes allegations of
public corruption very seriously, and we are always ready to contribute to an investigation when
the allegation has a financial component.
I.

Background

As alleged in the indictment and other court filings, between January 2010 and
February 2015, Nassau County Executive Edward Mangano, TOB Supervisor John Venditto, and
others, engaged in a scheme to receive bribes and kickbacks from a businessman and
restaurateur, identified in the indictment as Co-Conspirator #1, in exchange for performing
official actions to benefit Co-Conspirator #1 in connection with that individuals businesses in
Nassau County and the TOB. The official actions included: (a) the TOBs guarantee of certain
loans that Co-Conspirator #1 received from a bank and lender in connection with Co-Conspirator
#1s status as a TOB concessionaire (the TOB Loan Scheme); and (b) Nassau Countys award
of certain contracts to Co-Conspirator #1s businesses (the Nassau County Contracts Scheme).
In connection with these schemes, Mangano and Venditto are each charged with conspiring to
commit federal program bribery and honest services wire fraud and related substantive counts,
and Mangano is charged with extortion under color of official right.
II.

The TOB Loan Scheme

The indictment charges that Co-Conspirator #1 paid bribes and kickbacks to


Edward Mangano and John Venditto in exchange for, among other things, the officials
assistance in obtaining the Towns guarantee of four loans totaling approximately $20 million
that two of Co-Conspirator #1s businesses received from a bank (identified in the indictment as

the Bank) and from a private corporate financing company (identified in the indictment as the
Lender). As detailed in the governments bail letter filed today, the first loan, which closed on
June 9, 2010, was a $1,500,000 line of credit from the Bank. The second loan, which closed on
May 25, 2011, was a $3,400,000 loan from the Bank. The third loan, which closed on November
18, 2011, was a $7,843,138 loan from the Lender. The fourth loan, which closed on June 22,
2012, was a $12,273,748 loan from the Lender. In late 2012 and 2013, Co-Conspirator #1
sought an additional loan of approximately $12 million from the Lender in connection with
improvements to be made to Co-Conspirator #1s facilities at two Town beaches this loan was
not ultimately extended.
Edward Mangano and John Venditto used their official positions to influence and
reach a particular outcome, i.e., the Towns guarantee of the loans for Co-Conspirator #1. As a
result of the guarantees, were Co-Conspirator #1s entities to default on the loans, the Town
would be responsible for repaying the Bank and/or the Lender the entire amount of the loans. In
or about November 2015, Co-Conspirator #1 defaulted on the repayment of the two loans with
the Lender and the loans holder, which had previously been assigned the loans from the Lender,
demanding that the TOB remit payment on the outstanding money due under the loan
documents.
III.

The Nassau County Contracts Scheme

As set forth in the indictment, beginning in approximately late 2011 through


December 2012, Co-Conspirator #1, through certain business entities, was awarded lucrative
contracts by Nassau County, including certain contracts worth hundreds of thousands of dollars
to provide food services to Nassau County agencies. Specifically, as detailed in the
governments bail letter, Nassau County awarded two contracts to business entities of CoConspirator #1: a 2012 Nassau County contract to supply bread and rolls to the Nassau County
Correctional Center (the Bread and Rolls Contract), and November/December 2012 daily
purchase orders with the Nassau County Office of Emergency Management (OEM) to supply
emergency food services to OEM following Hurricane Sandy (the OEM Emergency Food
Services Contract). The Bread and Rolls contract was valued at approximately $200,000 and the
OEM Emergency Food Services Contract was valued at approximately $237,000. Edward
Mangano used his official position to effectuate a specific outcome, i.e., the award of these
contracts to Co-Conspirator #1.
IV.

The Receipt of Bribes and Kickbacks

As set forth in the indictment and, in greater detail, in the governments bail letter,
Co-Conspirator #1 provided Linda Mangano with a no-show job for approximately three and
one-half years, from April 2010 to August 2014, at a restaurant owned and operated by CoConspirator #1, identified in the indictment as Restaurant #2. The payments from CoConspirator #1 to Linda Mangano in connection with her no-show job totaled over $450,000.
In addition, Co-Conspirator #1 paid for various hotel and travel expenses for the Mangano
family, including vacations to Niagara Falls in 2010, Marco Island Florida in December 2011, St.
Thomas in July 2012, Turks and Caicos in July 2013, and Amelia Island, Florida in July 2014, as
well as an ergonomic office chair in January 2010 ($3,371.90), massage chair from Brookstone
in September 2012 ($3,623.73), a Panerai Luminor watch in November 2012 ($7,304), and

hardwood flooring and its installation in the Manganos bedroom in January 2013 ($3,701.81).
Co-Conspirator #1 also provided free meals to Edward Mangano and his family and associates.
From July 2011 to December 2013, Co-Conspirator #1 additionally provided
Venditto and his family members and associates with free limousine service. Co-Conspirator #1
also allowed Venditto to hold fundraisers at Co-Conspirator #1s restaurants at a discounted rate
and permitted Venditto to use a conference room in the basement of one of Co-Conspirator #1s
restaurants.
V.

The Obstruction of Justice

The indictment further alleges that Edward Mangano, Linda Mangano, and
Venditto engaged in obstruction of justice in connection with their attempts to cover-up their
wrongdoing, and Linda Mangano and Venditto are also charged with making false statements to
federal law enforcement authorities.
As alleged in the indictment, between January 2015 and the present, the
Manganos engaged in a conspiracy intended to obstruct a grand jury investigation. Specifically,
they repeatedly met with Co-Conspirator #1, and fabricated stories in an attempt to explain Linda
Manganos employment by Co-Conspirator #1 and Co-Conspirator #1s payments of gifts and
vacation expenses to the Mangano family.
On January 13, 2015, FBI agents interviewed Linda Mangano at her residence.
On May 20 and 24, 2015, prosecutors and FBI and IRS agents interviewed her at the U.S.
Attorneys Office in Central Islip. On all three occasions, Linda Mangano was advised that lying
to federal officials was a federal crime. Nevertheless, on each occasion, when asked about her
employment by Co-Conspirator #1, Linda Mangano fabricated examples of work she allegedly
did for Co-Conspirator #1.
On October 23, 2016 and December 18, 2015, prosecutors and FBI and IRS
agents interviewed Venditto at the U.S. Attorneys Office in Central Islip. At the beginning of
each interview, Venditto was advised that lying to federal officials constituted a federal crime.
During the December 18, 2015 interview, Venditto stated that he had not received anything of
value, including the payment for limousine services, from Co-Conspirator #1. Records from the
limousine company, bank records for Co-Conspirator #1, and interviews with numerous
witnesses, establish that Co-Conspirator #1 paid for the limousine service.
If convicted, Edward Mangano and John Venditto each face a term of
imprisonment of up to 20 years for each honest services wire fraud charge, the conspiracy to
commit honest services wire fraud charge, up to 10 years for the federal program bribery charge,
up to five years for the conspiracy to commit federal program bribery. Edward Mangano faces a
term of up to 20 years for the extortion charge. Edward Mangano, Linda Mangano, and John
Venditto each face a term of imprisonment of up to 20 years for each obstruction of justice
charge, and up to five years for each false statement charge. The charges in the indictment are
merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The governments case is being prosecuted by the Offices Long Island Criminal
Section. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney, and
Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline
OConnor of the Offices Civil Division is responsible for the forfeiture of assets.
The Defendants:
EDWARD MANGANO
Age: 54
Bethpage, NY
LINDA MANGANO
Age: 54
Bethpage, NY
JOHN VENDITTO
Age: 67
North Massapequa, NY

E.D.N.Y. Docket No. 16-CR-540 (SJF)