Levy admits guilt in federal court / Atlantic City's ex-mayor to be sentenced Feb. 15; attorney says probation likely / Says he falsified military record to receive extra VA benefits

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Levy admits guilt in federal court / Atlantic City's ex-mayor to be sentenced Feb. 15; attorney says probation likely / Says he falsified military record to receive extra VA benefits

By DEREK HARPER, Staff Writer

Published: Thursday, July 24, 2008

First published Thursday, Nov. 2, 2007 CAMDEN - Former Atlantic City Mayor Bob Levy admitted Thursday afternoon that he lied about his military record to government officials in order to receive almost $25,000 in benefits. Levy, the 60-year-old former Beach Patrol chief, could face as many as five years in prison, plus three years' probation and a $250,000 fine, when U.S. District Court Judge Jerome B. Simandle sentences him Feb. 15. Sentencing guidelines suggest zero to six months in prison, but Levy's attorney Edwin J. Jacobs said probation was more likely. Levy's plea agreement says he will have to repay the benefits plus a $100 special assessment.

"Bob Levy did an awful lot of right things in his life, but he admitted doing wrong things today," Jacobs said after the court appearance. "As a Vietnam veteran, Mr. Levy must have recognized the dishonor his fraudulent actions would bring upon himself," U.S. Attorney Christopher J. Christie said in a prepared release. "It is a sad turn of events for someone who seems to have otherwise honorably served his country and community." In court, Levy acknowledged in a low voice that he lied about receiving the Combat Infantryman's Badge, or CIB, and the Parachutist Badge, better known as "jump wings." The CIB is generally awarded to infantrymen or Special Forces soldiers who spend at least a month under fire in combat. Jump wings go to those who either complete paratrooper training or participate in at least one combat parachute jump.

Levy also agreed when Simandle asked him if he "falsely and fraudulently stated that: - "during the course of his military service he successfully parachuted up to 100 times; - "during the Vietnam War, he was twice abandoned during battle by Vietnamese troops and left alone in the jungle for several weeks before being rescued, causing him to suffer from post traumatic stress disorder." - "he injured his shoulder during Airborne School and while participating in military operations;

In fact, Levy admitted he was assigned to a support unit, never completed Airborne School and never parachuted from a plane while in the military. Court filings show Levy's lies and exaggerations allowed him to obtain benefits he would not have been entitled to totaling $24,683. Levy left Atlantic City High School and joined the Army in May 1964. He served for 20 years, honorably discharged as a First Sergeant. He twice went to Vietnam, where the Army awarded him two Bronze Stars, the military's fourth-highest decoration. Levy had initially filed for military benefits with the Veterans Benefits Administration when he left the Army, said Jeffery G. Hughes, Special Agent in Charge of the Department of Veteran's Affairs, Office of Inspector General's North East Field Office in Newark, who directed the investigation. Levy initially claimed arthritis and fainting as he filed for 30 percent disability.

He refiled for additional benefits in January 2003, claiming 60 percent disability, Hughes said. The claim was based on the lies embedded in Levy's military record that he acknowledged in court Thursday. It is not clear how they got there. Investigators and Jacobs said Levy knew his application and record was false but did nothing to change it. Jacobs indicated that Levy's record may have been innocently changed.

"This happened 40 years ago in a war," Jacobs said. "There was a lot of uncertainty." But Hughes and David Spilker, a fellow VA Special Agent, said members of the military during that time would have been given their military file as they moved from one posting to another.

"It's generally done by people for monetary gain or personal gratification -- more or less for ego," Hughes said. Levy has since reapplied for his veterans benefits and is currently being evaluated.

Investigators only began probing Levy's record once he admitted to The Press of Atlantic City last November that he had never been a member of the Army's elite Special Forces, generally known as the Green Berets. He had claimed membership for years, including on his 2005 mayoral campaign materials. In January, The Press reported the investigation included his CIB.

The plea makes Levy the latest resort politician to leave office in disgrace. Four of the last eight resort mayors have been at least arrested for bribery. Three of the nine people who served on last year's City Council are now serving federal sentences for taking bribes, while another city councilman is under indictment.

Thursday also marked Levy's first public appearance since Jacobs checked him into Belle Meade's Carrier Clinic to detox from overprescribed psychiatric and pain medication. The city officials to whom Levy turned over power refused to divulge his location for two weeks, and the resort turned into an international punch line and Levy became the so-called "missing mayor."

Jacobs read Levy's resignation letter Oct. 10 and acting Mayor William "Speedy" Marsh took office hours later. Levy arrived in court with Jacobs about 20 minutes late. He wore a brown pinstriped shirt with a small American flag pin attached to his suit's left lapel. Levy said little during the 43-minute proceeding. When Simandle asked his physical condition, he said "Nervous. Other than that, I'm in good health." Levy said he was taking medication for depression and anxiety, as well as the blood-thinner Coumadin following complications from June back surgery.

By pleading guilty, Simandle told Levy he will lose the right to vote, he can be banned from holding public office and he may lose other pensions. Asked if he understood, Levy turned to Jacobs, then said barely above a whisper "Yes, your honor." Simandle released Levy on $25,000 bail, ordering he remain in New Jersey, Philadelphia or New York City before sentencing. He required Levy to continue undergoing mental-health treatment, told him to avoid excessive use of alcohol and compelled Levy to undergo testing and treatment for alcohol abuse.

Told he would have to surrender his passport, Levy withdrew it from his jacket pocket and handed it to Jacobs. The proceeding ended shortly afterwards, and the two dozen reporters and onlookers filed out into the hallway. Levy was left sitting at the defense table, while Jacobs and court staff handed him papers for his signature. Jacobs and Levy left the courthouse about an hour later. Asked if he had anything to say to resort residents, Levy, appearing weary and haggard, kept walking. In a barely audible voice he said "I have no further comments." Jacobs repeatedly said there was nothing further. They walked to a nearby silver Jaguar. Jacobs unlocked the doors, Levy climbed in, and Jacobs drove the man who for 22 months served as Atlantic City's mayor away from federal court.