Former top aide to NJ Senate leader pleads guilty to tax evasion and wire fraud conspiracy

The former chief of staff to the New Jersey Senate president pleaded guilty in Newark federal court Monday to tax evasion and wire fraud charges that could land him in state prison for more than two decades.

Tony Teixeira, 43, of Elizabeth, wore a black suit and a court-mandated black facemask as he confirmed to U.S. District Judge John Michael Vazquez that he conspired with Sean Caddle, a former Hudson County political operative, to overcharge various campaigns, political action committees and nonprofits for work done by Caddle's consulting firm.

Teixeira and Caddle then split the difference, according to a Monday statement from U.S. Attorney Philip R. Sellinger. Caddle paid a portion in cash and the rest through checks made out to Teixeira's relatives to conceal the kickbacks, Sellinger said. And Teixeira never reported the earnings to the IRS.

On Monday, Teixeira pleaded guilty to one count of tax evasion and one count of wire fraud conspiracy. As punishment, he could face a combined 25 years in prison and fines of at least $500,000. He will be sentenced March 27, 2023.

After the hearing, Teixeira's attorney, John Lynch, said his client "made a mistake getting involved with Sean Caddle." But he described the plea agreement — which drops four other charges against Teixeira — as "very fair ... under all the circumstances."

Teixeira "has accepted his responsibility, and he's prepared for the consequences," Lynch said.

Teixeira resigned from his Statehouse position last month, according to an earlier statement from Sen. Nicholas Scutari, D-Union, president of the state Senate and the second-most-powerful Democrat in New Jersey.

Teixeira will be released on $100,000 bail. But he must surrender his passport, Vazquez said. And he must not travel outside the contiguous United States.

Caddle, meanwhile, remains on home confinement after pleading guilty to a sensational murder-for-hire plot in which he hired two hitmen to kill former friend and associate Michael Galdieri of Jersey City.

He is cooperating with federal authorities on an unknown investigation, his attorney said.

'I was let down so badly'

The conspiracy with which Teixeira was charged stemmed from Teixeira's and Caddle's habit of falsely inflating invoices Caddle submitted to the various campaigns, committees and 501(c)(4) nonprofit organizations, Sellinger said.

Between 2014 and 2018, Teixeira defrauded those organizations — many affiliated with former state Sen. Ray Lesniak — out of $107,800.

Lesniak, a powerful Union County Democrat, hired Caddle to create PACs and nonprofits to "raise and spend money to advocate on a variety of issues" and support candidates in local races, according to the U.S. Attorney's Office. Teixeira, who served as Lesniak's chief of staff at the time, had influence over the consultants that the groups hired and the budgets they received.

More:Explore web of dark money groups linked to NJ operative at center of murder-for-hire plot

"The whole thing surprises me," Lesniak told NorthJersey.com on Monday. "I'm obviously disappointed. I gave [Teixeira] a second chance, and he did very well as a chief of staff for so long. But apparently he had a big relapse. I was let down so badly by the two of them [Teixeira and Caddle]. With Tony it was only money; with Caddle it was somebody's life. Two people who served me well."

Lesniak said an FBI agent called him Monday afternoon to tell him he was the victim of fraud through his state Senate campaign and his failed 2017 gubernatorial campaign, and that the agency would be in touch if it recouped the funds.

Groups linked to Caddle spent money on Elizabeth Board of Education races; Newark, Bayonne and Little Ferry mayoral runs; a gubernatorial election and more, according to federal and state campaign finance filings and incorporation filings. Federal agents raided Caddle's home three years ago seeking records for more than 50 such groups.

More:Complete coverage, timeline for murder-for-hire case that has NJ political world abuzz

Teixeira was listed in a September 2021 state subpoena seeking details on payments from Caddle. The state demanded information on nearly $50,000 in payments from Caddle and his consulting firm Arkady to Teixeira and his wife between 2015 and 2017.

In the past, Teixeira did not respond to questions about what the payments were for. Caddle told NorthJersey.com in a phone call earlier this year that Teixeira did not work for Arkady, but confirmed he paid Teixeira.

More:FBI raided home of political operative for info on murder-for-hire and dark money, docs show

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“Tony has unquestionably endured his share of hardships, and while he has served the public in many admirable capacities and is a friend, nonetheless he erred and I acknowledge that,” Scutari said in his October statement. “I am glad Tony is accepting responsibility for his personal financial actions.”

Scutari declined to comment through a spokesperson after the U.S. attorney's announcement Monday that Teixeira misused funds from political campaigns and nonprofits.

Teixeira resigned from his posts as chair of the Elizabeth Democratic Party and member of the Union County Board of Elections, according to a report from Politico New Jersey.

Teixeira went deep into debt before he became a top aide to Lesniak. A firm he created, Magellan Marketing, defaulted on a $245,000 mortgage loan from the Elizabeth Development Company in 2010, according to court records. Three years later, in 2013, a judge garnished wages Teixeira earned working for Lesniak and Re/Max Realty connected to the loan default.

This article originally appeared on NorthJersey.com: Tony Teixeira pleads guilty to tax evasion