COURT LOSS FOR KERIK 2
AP

August 3, 2006 -- ATLANTIC CITY, N.J. - A mob-linked construction company - whose owners are accused of lying about their dealings with ex-NYPD Commis-sioner Bernard Kerik - must stop doing work for Atlantic City casinos, regulators said.

The 5-0 vote by the Casino Control Commission suspended the casino-service licenses of Interstate Industrial Corp., of Clifton, N.J., and owners Frank and Peter DiTommaso.

The brothers pleaded not guilty in July to New York charges of lying to a grand jury by denying they secretly paid for the bulk of an extensive makeover of Kerik's apartment in The Bronx when he was in charge of city jails.

2 Contractors With Kerik Ties Are Indicted on Perjury Charges
By ALAN FEUER (NYT) July 20, 2006

Two New Jersey contractors were indicted yesterday on perjury charges, accused of lying to a Bronx grand jury investigating allegations that Bernard B. Kerik, the former city police commissioner, had, among other things, accepted more than $150,000 in renovations to his Riverdale apartment.

The contractors, Frank and Peter DiTommaso, were charged in State Supreme Court in the Bronx with telling the grand jury earlier this year that a company they own, Interstate Industrial Corporation, did not pay for the renovations, even though prosecutors in the Bronx -- and Mr. Kerik himself -- have said that it did.

At a hearing in the Bronx on June 30, Mr. Kerik pleaded guilty to receiving $165,000 in illicit work on the apartment and told a judge that the 'gift,' as he called it, came from 'the Interstate companies or a subsidiary.'

Mr. Kerik also said he thought the company was 'clean,' even though the authorities have long contended that Interstate has ties to the mob, an accusation the company has repeatedly denied.

By all accounts, Mr. Kerik was the central target of the grand jury inquiry, which the Bronx district attorney, Robert T. Johnson, and the city Department of Investigation began in late 2004 after Mr. Kerik was nominated as secretary of the federal Department of Homeland Security. His nomination faltered when a string of improprieties was revealed.

Throughout the investigation, questions have swirled about the DiTommaso brothers, who are friends of Mr. Kerik's.

Mr. Kerik's lawyer, Joseph Tacopina, said that his client's guilty plea and statements before the judge could not be used against the brothers because the plea and the statements were never subject to cross examination.

He said that he did not expect Mr. Kerik to have a role as a witness for the prosecution, should there be a trial.

The announcement of the sealed indictment 'concludes the work of this grand jury,' said a statement released by the district attorney's office.

In the same statement, Rose Gill Hearn, commissioner of the Department of Investigation, said that it took 18 months of investigation by a grand jury 'to uncover the truthful answer to the seemingly straightforward question of who paid for renovating a city commissioner's residence.'

Standing side by side at their arraignment yesterday, the brothers, in their navy blue suits and matching tans, pleaded not guilty to the charges and were released on their own recognizance. Frank DiTommaso, 47, was accused of lying to the grand jury on March 30. Peter DiTommaso, 45, was charged with lying to the grand jury on March 30 and again on June 15.

They face up to seven years in prison if convicted.

Neither the brothers, nor their lawyer, Thomas E. Durkin, spoke with reporters after the arraignment.

Frank DiTommaso has said that he met Mr. Kerik in 1998 through Lawrence Ray, the best man at Mr. Kerik's wedding. The two men became friendly, riding motorcycles and socializing, and Mr. DiTommaso later hired Mr. Kerik's brother to an $85,000 a year post at another DiTommaso company's transfer station at a time when the company, Interstate Materials, was seeking a permanent license to operate the station. The company also hired Mr. Ray as its security director.

City investigators first learned of Mr. Kerik's relationship with the DiTommasos during depositions they took in June 2000 as part of the licensing procedure. At the time, Mr. Kerik was commissioner of the city Correction Department.

Bernie Kerik Sinks Lower and Lower as He Lashes Out at Previous Co-workers. Be Silent, Bernie.Thou Dost Protest Too Much