After parks kickback pleas, Hudson County installs its first inspector general

Former parks directors Russell Fallacara and Thomas DeLeo — and contractor William Murray — pleaded guilty in a federal scheme involving more than $1.5 million in bribes and kickbacks; County Executive Craig Guy has now appointed ex-federal prosecutor Desiree Grace to lead Hudson’s first Office of Inspector General.

JERSEY CITY — Hudson County is creating its first Office of Inspector General in the wake of federal guilty pleas by two former parks directors and a paving contractor in a bribery and kickback conspiracy that prosecutors say involved more than $1.5 million between 2019 and 2024.

The pleas

According to a July 8, 2026 U.S. Attorney’s Office for the District of New Jersey press release (USAO-NJ; DOL OIG mirror of the Frazer announcement) and charging documents as described in contemporaneous reporting:

• Thomas DeLeo, former Hudson County Parks Department director, pleaded guilty March 3, 2026, before U.S. District Judge Claire C. Cecchi to conspiracy to commit honest services fraud and conspiracy to commit money laundering (USAO-NJ). Charging documents described in contemporaneous reporting state that the value of bribes and kickbacks laundered was more than $550,000.
• William A. Murray, owner of Paramus-based Murray Paving & Concrete LLC, pleaded guilty March 17, 2026, to conspiracy to commit honest services fraud (USAO-NJ). Charging documents as reported state his company performed more than $5 million of work for Hudson County (paving, landscaping, general contracting).
• Russell Fallacara, 59, of Bayonne, who succeeded DeLeo as parks director, pleaded guilty July 8, 2026, to conspiracy to commit honest services fraud (USAO-NJ). The USAO-NJ announcement states he received over $400,000 in cash bribes and kickback payments. Charging documents as reported describe a $300,000 cash transfer structured through an associate in or around January 2023. The honest-services conspiracy charge carries a maximum of 20 years’ imprisonment.

The USAO-NJ announcement states that from 2019 through 2024 the conspiracy involved more than $1.5 million in bribes and kickbacks, paid by Murray so his company would be awarded parks contracts, including cash and free home repairs/renovations for DeLeo and Fallacara. Fallacara resigned in late January 2024 for what the county then described as “personal reasons,” according to contemporaneous local reporting.

USAO-NJ credited the FBI Newark Field Office and the U.S. Department of Labor Office of Inspector General with the investigation; the case was prosecuted by the U.S. Attorney’s Office for the District of New Jersey.

First inspector general

County Executive Craig Guy proposed an inspector general ordinance in July 2026, citing the Fallacara plea; the Board of County Commissioners unanimously passed the ordinance in August, according to the county’s announcement.

On Sept. 22, 2026, Guy announced the appointment of Desiree Grace, Esq., a partner at McCarter & English and a former First Assistant U.S. Attorney / Criminal Division leadership official in the District of New Jersey, to lead the new office. County Counsel Alberico De Pierro recommended Grace after a vetting process, the county said. Commissioners were expected to ratify her contract at their Sept. 24, 2026 meeting.

Guy’s statement: “Desiree Grace’s credentials are impeccable, and I have no doubt she will lead the Office of Inspector General with integrity and independence. My Administration prioritizes transparency and accountability, and the Office of Inspector General will serve as a watchdog ensuring Hudson County taxpayer dollars are not wasted or misspent.”

Grace said: “I am truly honored to be considered to serve as the Hudson County Inspector General. I have dedicated the majority of my career to investigative work aimed at improving the community, and I welcome the opportunity to use that skill set to serve Hudson County in this new initiative.”

County materials describe the IG as empowered to investigate fraud, waste, and misconduct across county departments, agencies, and boards. Starting salary and applicant count were not immediately disclosed in contemporaneous coverage.