Former Charlie Brown's Exec Gets 2 Years in Prison

TRENTON—A former Charlie Brown's Steakhouse executive was sentenced Thursday to 24 months in federal prison on charges stemming from a conspiracy that netted more than $1 million in bribes.

Russell D'Anton, 50, of Manasquan, had previously pleaded guilty before U.S. District Court Judge Mary L. Cooper to one count each of conspiracy to commit mail fraud and tax evasion.

The Blackwood Charlie Brown's was among 20 locations in the chain, including 13 in New Jersey, to close in mid-November shortly after parent company CB Holding Corp. filed for bankruptcy.

Cooper on Thursday also ordered D'Anton, the restaurant chain's former president and CEO, to serve two years of supervised release upon completion of the two-year prison term, according to U.S. Attorney Paul J. Fishman, who announced the sentence. The Manasquan man will also have to pay restitution of a still-undetermined amount.

D'Anton's co-conspirator Michael Mulligan, 51, of West Milford, has also pleaded guilty to conspiracy to commit mail fraud and tax evasion. He is awaiting sentencing, according to Fishman.

D'Anton and Mulligan, who was the vice president of Charlie Brown's Acquisition Corp., used their positions as executives to direct business to vendors who paid them bribes in the form of cash, checks and in-kind payments, according to the U.S. Attorney's Office for New Jersey. The scheme ran from at least as early as 1999 through 2008.

D’Anton admitted he accepted kickbacks from a variety of vendors, including a
construction company and vendors who provided the restaurant chain with refrigeration services and bakery products.

The kickbacks included expensive home appliances.

D’Anton also failed to report the value of the kickbacks as income on his personal federal tax returns.

In pleading guilty to the tax-evasion count, D’Anton admitted that he failed to claim additional taxable income of approximately $123,000 on his 2005 federal tax return, Fishman said. Had the income been reported, it would have been subject to a tax payment of more than $44,000.

A woman who answered the phone at Charlie Brown's Steakhouse's corporate office, in Mountainside, indicated the company did not wish to comment on Thursday's sentencing.

A second person is awaiting sentencing in connection with the scheme.

David Slabon, 44, of Sea Girt, has pleaded guilty to one count each of conspiracy to commit commercial bribery and conspiracy to commit wire fraud.

Slabon admitted to paying bribes to D’Anton while serving as president and CEO of Designline Construction Services.