Dozens held in US corruption probe

An FBI official called the corruption "a cancer that is destroying the core values of this state".

Federal prosecutors said the inquiry initially focused on a money laundering network which operated between the New York City borough of Brooklyn; Deal, New Jersey; and Israel.

The network is alleged to have laundered tens of millions of dollars through Jewish charities controlled by rabbis in New York and New Jersey. Prosecutors then used an informant in that investigation to help them go after corrupt politicians.

The informant - a real estate developer charged with bank fraud three years ago - posed as a crooked businessman and paid a string of public officials tens of thousands of dollars in bribes to get approvals for buildings and other projects in New Jersey, authorities said.

Among the 44 people arrested were the mayors of Hoboken, Ridgefield and Secaucus, Jersey City's deputy mayor, and two state assemblymen. A member of the governor's cabinet resigned after agents searched his home, although he was not arrested. All but one of the officials are Democrats.

In addition, five rabbis from New York and New Jersey - two of whom lead congregations in Deal - were accused of laundering millions of dollars, some of it from the sale of counterfeit goods and bankruptcy fraud, authorities said. Others arrested included building and fire inspectors, city planning officials and utilities officials, all of them accused of using their positions to further the corruption.

In rounding up the defendants, FBI and IRS agents raided a synagogue in Deal, a wealthy oceanfront city of Mediterranean-style mansions, with a large population of Syrian Jews.

Those arrested include Levy Izhak Rosenbaum, of Brooklyn, who was charged with conspiring to arrange the sale of an Israeli citizen's kidney for 160,000 dollars for a transplant for the informant's fictitious uncle. He was quoted as saying he had been arranging the sale of kidneys for 10 years.

The politicians arrested were not accused of any involvement in the money laundering or the trafficking in human organs and counterfeit handbags. The number of arrests was remarkable even for New Jersey, where more than 130 public officials have pleaded guilty or have been convicted of corruption since 2001.