Mr. Schiff: Corrupt government officials paying for bogus contracts. That's what was happening for several years in a small town in northern New Jersey...

Mr. Doyle: "It was $2.5 million over a 5-year period that we were able to determine."

Mr. Schiff: FBI Special Agent Mike Doyle in the Newark FBI office...

Mr. Doyle: "The payments were made through these contracts for gross over billings. So they were part of a contractual agreement and paid through checks."

Mr. Schiff: Doyle says that some city officials had agreements with a contractor who didn't do much or any of the work called for...

Mr. Doyle: "Power washing on some of the major pieces of equipment on the Municipal Utilities Authority as well as having maintenance contracts for general work in the large construction areas of the town and also adding rooms to, just normal rooms, to township buildings."

Mr. Schiff: Several city officials were convicted and sentenced to prison; one got a light, three-month sentence, because of his cooperation with law enforcement. Others were given much longer sentences and fines. I'm Neal Schiff and that's the FBI's Closed Case of the Week."

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