DeNick Pleads Guilty in Bribery Scheme

Published May 1, 2007

CAMDEN – A long time politically active Atlantic City businessman pleaded guilty
today for paying bribes to two Atlantic City councilmen, U.S. Attorney Christopher J.
Christie announced.

Edward DiNicolantonio, 70, of Atlantic City, pleaded guilty before U.S. District Judge
Joseph H. Rodriguez to a one-count Information that charges him with giving corrupt
payments to public officials in Atlantic City. Judge Rodriguez released DiNicolantonio
on a $50,000 unsecured appearance bond pending sentencing, which is scheduled for
Aug. 23.

At his plea hearing, DiNicolantonio admitted bribing certain Atlantic City Council
members in exchange for preferential treatment on city contracts and other business
opportunities. DiNicolantonio admitted that from 2002 until 2006 he made corrupt cash
payments totaling in excess of $45,000 to Atlantic City councilmen Craig Callaway, 48,
and Gibb Jones, 81, in return for their support for various matters occurring before
council.

DiNicolantonio stated that from 2002 through October 2004, he was employed as a
consultant to an insurance company that was interested in providing risk management and
other insurance services to Atlantic City in 2002 and 2003. DiNicolantonio admitted that
during that time period he meet with Callaway and offered him money in return for his
support for awarding the risk management contract to the insurance company.

Furthermore, DiNicolantonio admitted that he solicited Jones for his support for the
insurance contract. DiNicolantonio admitted that he gave Jones cash payments and paid
various expenses on Jones’ behalf before and after soliciting Jones for the insurance
contract and other matters before council.

On Sept. 3, 2003, city council approved a $700,000 no-bid contract to the insurance
company for risk management services, with Callaway and Jones voting in favor of the
contract. DiNicolantonio admitted that on Sept. 10, he gave Callaway $1,000 in cash in
return for his support in obtaining the insurance contract and promised to make additional
payments as long as Callaway continued to approve payments to the insurance company
for the risk management contract. DiNicolantonio admitted he made six additional cash
payments of $2,000 each to Callaway, from October 2003 until March 2004, totaling
$12,000 in return for his support for various matters occurring before council, including
the risk management contract.

DiNicolantonio admitted that in late 2003 and early 2004, he offered to “whack up” the
money he would receive as a consultant on the Garwood Mills project with Callaway in
return for Callaway’s support for a developer who had hired him. In 2004 and 2005
DiNicolantonio made cash payments to Callaway in return for his support in connection
with the development of the Garwood Mills site, DiNicolantonio admitted.
Jones pleaded guilty on Oct. 4, 2006, along with councilman Ramon Rosario, 48, both
admitting that they accepted bribes – one from a businessman seeking city contracts and
the other from an undercover FBI agent and a contractor working with the FBI.
Jones, Rosario and Terry Jacobs, 42, of Pleasantville, who is a contractor in Atlantic City,
Camden and elsewhere, are scheduled to be sentenced tomorrow, May 2, before Judge
Rodriguez in Camden. On March 13, 2007, Callaway was sentenced to 40 months in
federal prison for accepting $36,000 in bribes to assist Jacobs in obtaining major
construction work in Atlantic City.

The charge to which DiNicolantonio pleaded guilty carries a statutory maximum prison
sentence of 10 years and a fine of $250,000.

In determining an actual sentence, Judge Rodriguez will consult the advisory U.S.
Sentencing Guidelines, which provide appropriate sentencing ranges that take into
account the severity and characteristics of the offense, the defendant's criminal history, if
any, and other factors. The judge, however, is not bound by those guidelines in
determining a sentence.

Parole has been abolished in the federal system. Defendants who are given custodial
terms must serve nearly all that time.

Christie credited Special Agents from the Federal Bureau of Investigation, under the
direction of Acting Special Agent in Charge Pedro Ruiz, in Newark, with the
investigations of into Atlantic City corruption.

The case was prosecuted by Assistant U.S. Attorneys Thomas J. Eicher and Judith H.
Germano, both of the U.S. Attorney’s Office Special Prosecutions Division in Newark.