Former Salomon Smith Barney Employee Charged With Taking $642,000 in Bribes
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A former high-ranking Salomon Smith Barney/Citigroup employee surrendered Thursday after being indicted in Manhattan on charges of taking more than $642,000 in bribes from two companies that did business with his firm.
A nine-count indictment charges Thomas A. Moogan, 38, of Montvale, N.J., with bribe receiving, offering a false instrument for filing, and falsifying business records.The counts are all punishable by up to four years in prison upon conviction.
Mr. Moogan pleaded not guilty at his arraignment in Manhattan’s state Supreme Court. Justice Roger Hayes allowed Mr. Moogan to remain free on a $50,000 personal recognizance bond, which the judge ordered him to post by June 9.
Mr. Moogan already has a narcotics case pending against him in Westchester County, Manhattan District Attorney Robert Morgenthau said. The defendant was arrested in a White Plains bar on February 17 while in possession of a small amount of cocaine, Mr. Morgenthau said.
Before Mr. Moogan was fired in September 2002 for misusing a Salomon Smith Barney credit card, he was a managing director who hired computer consultants and oversaw construction services at his company, Mr. Morgenthau said.
Mr. Moogan also was responsible for approving invoices from vendors who did business with the company, Mr. Morgenthau said. From November 1998 through September 2002, he said, Mr. Moogan accepted $439,500 in bribes from a computer technology consulting firm and $203,299 in bribes from a construction firm.
Mr. Morgenthau said the defendant and his wife, Joan Moogan, 46, used much of the bribe money for personal expenses, entertainment, charges on his personal credit cards, and construction projects at their New Jersey home. The Moogans, who have three children, have a large swimming pool and a waterfall on their property, prosecutors said.
Mr. Morgenthau said the Moogans created a fake company, Empire Communications Group, to receive and conceal bribes. He said Thomas Moogan would prepare fake invoices from Empire for the companies and the companies would remit the amounts on the invoices.
Empire’s sole employee, Joan Moogan, would receive a paycheck from the company every two weeks and deposit it into a joint account she and her husband maintained, Mr. Morgenthau said.
The indictment charges Joan Moogan with a count of offering a false instrument for filing and charges Empire with falsifying business records.
At the Moogans’ arraignment, she was released without bail. The judge scheduled their next court appearance for June 28.
Paul Rooney, lawyer for Thomas Moogan, and Daniel Ollen, lawyer for Joan Moogan, declined to comment.