Michael J. Matthews

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Michael J. Matthews was mayor of Atlantic City, New Jersey from 1982 to 1983. He was Atlantic City's first Mayor after it changed to a mayoral form of government in 1982, but was recalled by the voters in a referendum in March of 1983, shortly before being indicted on federal extortion charges of having used his office to extort bribes from businessmen to benefit himself and associates in organized crime.

In the indictment, released by United States Attorney W. Hunt Dumont, Mr. Matthews was accused of having close dealings with Nicodemo Scarfo, an American mafioso member of the U.S. Cosa Nostra and head of the Philadelphia crime family which controlled organized crime as far as South Jersey, even before he was elected Mayor, in 1982. Mr. Matthews, a former state legislator, was charged with the attempted extortion of $668,000 from two businesses set up by the Federal Bureau of Investigation and with taking $14,000 in bribes from an undercover F.B.I. agent posing as a representative of the companies. It was alleged that Matthews turned a blind eye to the actions of his primary supporters--Nicodemo "Little Nicky" Scarfo and Phillip "Crazy Phil" Leonetti and that he joined them in shaking down others, concentrating on extorting money from city officials.

Matthews was indicted in March 1984, and the indictment charged that Mr. Matthews had close dealings with the Scarfo organized crime family even before he was elected Mayor in 1982. He was sentenced in 1985 to 15 years in prison after pleading guilty to one count of extortion after the trial started. Frank Lentino, identified as a close associate of New Jersey organized crime, as well as a business agent for HERE IU Local 54, admitted to conspiring with Mr. Matthews and reputed organized crime leaders in return for the Mayor's aid in getting a city contract and in favorably purchasing city owned casino zoned land. He was also closely tied with Donald Trump, though Trump was able to escape any serious investigation.

The Scarfo organization attempted to control through corruption the governmental processes of Atlantic City by paying bribes to Michael Matthews. In return, Matthews agreed to use his office in a corrupt fashion for the benefit of the Scarfo organization. By pleading guilty to accepting a $10,000 bribe from an FBI agent posing as a businessman who wanted his help in buying, on favorable terms, a parcel of city-owned land zoned for casinos, Matthews got the government to agree to drop seven other counts. The dropped counts were of extortion, bribery and conspiracy, including one alleging that Matthews had conspired with organized crime figures to use his office for their benefit in return for campaign financing.

James L. Usry succeeded Matthews as Mayor after the recall election.^[1]