Two years ago, he had maintained his innocence when he was first hit with a 43-count indictment on extortion and other charges - even after his own wife pleaded guilty.
Now that Abreu was found guilty last week after a federal jury trial, the 42-year-old real estate and mortgage businessman insists that he did nothing wrong.
"We're going to aggressively appeal this decision, both for me and my co-defendants," Abreu said in an exclusive interview Thursday morning, a day after he received his fate from the 11-member jury in U.S. Federal Court. "I am worried about what this means to my businesses, but I'm confident that we will overcome all of this. I am very disappointed in the decision, but I feel I have to appeal it. I have to let justice run its course."
Abreu said that he felt vindicated that the jury could not reach a verdict on the charge that he was involved with extorting money, reportedly $2,000 per week, as part of illegal gambling and prostitution operations in West New York, which also involved former West New York police chief Alexander Oriente.
The jury was deadlocked on that charge, and the U.S. Attorney's Office vows to re-try Abreu on the charge in the near future.
"I stand on the grounds that they did not reach a verdict on the extortion charge," Abreu said. "I always maintained my innocence there, as well as the money laundering. The mortgage business is a very complicated business, and the buck stops at me. I have to accept responsibility as the owner of the companies. The boss is the boss."
Abreu was found guilty on the 20 of 28 pending charges involving a series of real estate and bank fraud schemes. However, the jury returned acquittals on some charges and were deadlocked on the extortion count, which only mentioned Abreu.
U.S. District Judge Joseph Greenaway, who overheard the trial from its outset, declared a mistrial on the extortion charges. Abreu faced as much as 25 years in prison if found guilty of the extortion charges.
But Abreu still faces as much as eight years in prison on the 20 counts of which he was found guilty.
Others convicted
The jury also convicted Abreu employees Ana Martell, Kathy Giunta and Fernando Jimenez, all residents of North Bergen, as well as Luis Nieves of Leonia, who was a senior vice-president and loan official with Hudson United Bank.
Testimony in the trial came from both Oriente and former Abreu associate Manuel "Manny" Mier, who had previously pleaded guilty to fraud charges and agreed to turn state's evidence in exchange for a lesser sentence. Their testimony seemed to link the payoffs from Oriente to Mier, and then to Abreu and to a final destination of State Assembly Speaker and West New York Mayor Albio Sires. But Sires' name never officially came up in the trial, and he has never been charged with any crime.
"The trial and testimony speak for itself," said Sires' spokesman Joe Lauro, last week. "It's clear that the testimony confirms that Mayor Sires was never involved in any of the alleged activities."
U.S. Attorney Christopher Christie proclaimed the verdict as "a victory for the people of Hudson County."
"Mr. Abreu committed massive fraud and infected the political process," Christie said in a press release from the U.S. Attorney's Office. "His elimination from the public scene in Hudson County is a positive for all of its citizens. As I have said repeatedly, this office brings cases for only one reason: because we believe those charged have committed the crimes and that we will be able to prove them beyond a reasonable doubt. These verdicts are further proof of that principle. Despite the protestations and hyperbole from the defendants' lawyers, the jury agreed that these defendants were guilty and now will go to jail."
Came from humble beginnings
Abreu came from humble beginnings and emerged as a true force in the world of Hudson County real estate during the 1980s, including his involvement with some high-priced Hoboken development projects.
Soon after, Abreu became involved in the political spectrum, both raising funds and donating to the political causes of some high-profiled politicians, including long-time friend and political ally Sires, as well as Rep. Robert Menendez, former Hudson County Executive Robert Janiszewski, former U.S. Senator Robert Torricelli, and others.
The jury reached its verdict on the seventh day of intense deliberations, which saw them ask for clarifications and reviews of testimony and evidence. The trial, which began April 6, saw 40 different witnesses take the stand and approximately 5,000 pages of documents being entered as evidence.
Co-defendants hit hard
Abreu's co-defendants were hit hard by the jury's verdict. Giunta was convicted on 12 counts and acquitted of just one count. Martell was convicted on 11 counts and acquitted on two. Jimenez was convicted on both counts he faced, while Nieves was convicted on one count and acquitted on two.
The latter three face charges ranging anywhere from two years to five years in prison, but there might be some leniency since none of them were ever charged with a serious crime before.
The crimes are connected to a series of financial schemes Abreu operated through three businesses he owns with his wife, Lourdes Adan-Abreu, including Mortgage Pros Inc. and RLA Homes of Guttenberg.
In all, 11 people were charged in the original 43-count indictment handed up two years ago. Six people charged in the case have since pleaded guilty, including Adan-Abreu.
Abreu was said to have filed fraudulent loan applications with lending institutions as part of a conspiracy involving forged signatures and the creation of fraudulent W-2 forms and faked tax returns for commercial or residential loan applicants.
He was also convicted of seven specific instances of loan fraud.
He also was convicted of conspiring with two co-defendants to engage in a check-kiting scheme in which hundreds of thousands of dollars were shifted back and forth in his accounts, alternately creating fraudulent sums in some accounts and overdrafts in others. Evidence during the trial showed overdrafts as large as a $1 million at a time.
Finally, Abreu was convicted of engaging in a conspiracy to structure cash bank transactions in order to avoid paying taxes to the IRS, and of nine specific counts of structuring deposits.
Assistant U.S. Attorney Thomas Eicher called it an important verdict for honest people who were simply trying to purchase a home and may have been duped into believing that they were following proper protocol.
"It's important to everyone who's going to try to get a mortgage, because the cost of mortgages rise when others commit fraud," said Eicher, who prosecuted the case along with Assistant U.S. Attorneys Deborah Goldklang and Matthew Boxer. "It may also highlight the fact that there are currency transaction reporting requirements that have to be met."
Appeal under way
Abreu's attorney, Gerald Krovatin, said that the process to appeal the verdict is already underway.
"It was a mixed result, and Rene has mixed emotions reacting to it," Krovatin said. "Rene has never been a quitter, and he will not quit now. He will appeal."
All of Abreu's co-defendants are expected to appeal the verdict.
Judge Greenaway did not set a sentencing date, but a bail hearing was slated to be held Thursday morning, with the federal prosecutors looking to impose further bail restrictions on Abreu, trying to prevent a possible flight from justice. Abreu posted a $500,000 bail after he was indicted in July, 2002.
After hearing Abreu's stern stand Thursday morning, any flight appears unlikely.
"I'm going to fight this," Abreu said. "It's far from over. I'm disappointed in the jury's decision, but I will move on from here."
If needed
Verdict check list
Here's what Rene Abreu and his four co-defendants were convicted and acquitted of in United States federal court Wednesday afternoon.
RENE ABREU
CONVICTED OF: Conspiracy to commit residential and commercial loan fraud; seven counts of loan fraud; conspiracy to engage in a check-kiting scheme; conspiracy to structure money transactions; nine counts of structuring money transactions.
ACQUITTED OF: One count of loan fraud; one count of money laundering, and six counts of structuring money transactions.
JURY DEADLOCKED: Extortion charge, which alleged that Abreu received a portion of $2,000 per week in protection money from illegal gambling operations in West New York during the mid-1990s.
Judge Joseph Greenaway declared a mistrial regarding the extortion count, but the federal prosecutors can re-try the case if they feel it's deemed worthy.
ANA MARTELL
CONVICTED OF: Conspiracy to commit residential and commercial loan fraud; two counts of loan fraud; conspiracy to engage in a check-kiting scheme; conspiracy to structure money transactions; five counts of structuring money transactions.
ACQUITTED OF: Money laundering and one count of structuring money transactions.
KATHY GIUNTA
CONVICTED OF: Conspiracy to commit residential and commercial loan fraud; five counts of loan fraud; conspiracy to structure money transactions; four counts of structuring money transactions.
ACQUITTED OF: One count of loan fraud.
FERNANDO JIMENEZ
CONVICTED OF: Conspiracy to commit residential and commercial loan fraud.
LUIS NIEVES
CONVICTED OF: Conspiracy to engage in a check-kiting scheme.
ACQUITTED OF: Taking bribes to procure loans, and conspiracy to engage in commercial loan fraud.
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