N.Y. Rep. Biaggi Convicted of Extorting From Wedtech

NEW YORK —  Rep. Mario Biaggi (D-N.Y.), pictured as “a thug in a congressman’s suit,” was convicted today of extorting millions of dollars in stock from Wedtech Corp. in exchange for using his influence to win major defense contracts for the now bankrupt South Bronx machine shop.

All but one of his co-defendants also were convicted of various charges in the racketeering trial, including Biaggi’s son, Richard, 39; his former law partner, Bernard Ehrlich, 59; former Bronx Borough President Stanley Simon, 58; Wedtech founder John Mariotta, 58, and former Small Business Administration executive Peter Neglia, 40.

Biaggi was convicted last year in Brooklyn of obstruction of justice and accepting illegal gratuities, and he was sentenced to 30 months in prison in an unrelated case.

Today’s convictions in federal court could lead to 20 years in prison and a $250,000 fine for racketeering, and 20 years and a $250,000 fine for racketeering conspiracy. He could get additional prison time for extortion and bribery.

Biaggi, 70, a 10-term Bronx congressman, took off his glasses and bowed his head when the guilty verdicts were read in the packed courtroom.

His attorney, James LaRossa, said Biaggi will appeal.

Democratic Foes

Two Democrats are trying to unseat the popular congressman in the September primary, and it was not known how long Biaggi would remain in the race.

It took nearly 30 minutes for the jury foreman to read the verdicts from a 22-page sheet of charges.

Four top Wedtech officials pleaded guilty in the case and testified for the prosecution.

Prosecutors charged that illegal lobbying by the defendants helped Wedtech get lucrative Pentagon contracts and mushroom into a multimillion-dollar defense contractor.

Convicted on 15 Counts

Biaggi was convicted of all but one of 16 counts, including conspiracy, extortion, tax evasion and receiving bribes.

Biaggi’s lawyer argued that it was not the congressman but U.S. Atty. Gen. Edwin Meese III who helped Wedtech grow, acting on behalf of close friends with financial interests in the company.

Assistant U.S. Atty. Edward J. Little stunned the courtroom during closing arguments when he called Meese “a sleaze,” but he insisted that any wrongdoing by the attorney general--Little’s boss--had nothing to do with the Biaggi case.

Long Investigation

A lengthy investigation of Meese’s involvement with Wedtech by a federal special prosecutor found that there may have been instances in which Meese broke the law, but it concluded that they did not warrant prosecution.