Sept. 29 (Bloomberg) -- A former counsel to the Bergen County Democratic Organization in New Jersey pleaded guilty two days before he and the party’s ex-chairman were scheduled to go on trial on corruption charges.

Dennis J. Oury, 59, admitted conspiring with Joseph A. Ferriero, the former chairman, to defraud the borough of Bergenfield, New Jersey, of his honest services. Oury, the former municipal attorney in Bergenfield, implicated Ferriero, saying they hid their interest in a grants-writing firm and tried to influence government officials to secure business.

“Did you have an understanding with Joseph Ferriero that neither of you would publicly disclose your involvement” in the firm, Governmental Grants Consulting, or GCC, U.S. District Judge Stanley Chesler asked Oury in federal court in Newark, New Jersey. Oury agreed.

Before their indictment in September 2008, Ferriero was one of the most powerful political figures in New Jersey. Ferriero and Oury were indicted by former U.S. Attorney Christopher Christie, the top federal prosecutor in New Jersey for seven years. Christie is running as the Republican candidate to unseat Democratic incumbent Jon Corzine in the November election.

Oury, who faces up to 20 years in prison, also admitted failing to file a federal income tax return in 2006. Chesler set sentencing for Jan. 7.

Looming Trial

Prosecutors and lawyers for Oury and Ferriero had picked a jury for the trial, and opening statements are set for Oct. 1. Assistant U.S. Attorney Rachel Honig declined to comment on whether Oury will cooperate with prosecutors and testify against Ferriero.

Ferriero attorney Joseph Hayden, who arrived in the courthouse after Oury’s plea for a pre-trial hearing, declined comment.

Oury admitted that he and Ferriero set up GCC in late 2001 to offer grants consulting services to municipalities, and they gave officer roles to “front people.” The men never disclosed their ownership stake to municipal officials, including in Bergenfield, where Oury was appointed as municipal attorney on Jan. 1, 2002, he said.

Conflict of Interest

The borough hired GCC through a resolution that contained “false representations regarding GCC’s status, expertise, training and represented,” Oury admitted.

In June 2004, Bergenfield paid GCC $128,625 for seeking grants from state and local entities, with Ferriero giving Oury $25,017 and keeping $27,538 for himself, Oury admitted.

Oury admitted that his involvement with GGC and his position as borough attorney created a conflict of interest, and his failure to disclose that conflict breached his duty to provide honest services to Bergenfield.

The case is United States of America v. Dennis J. Oury, 08- cr-616, U.S. District Court, District of New Jersey (Newark).

To contact the reporter on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

Last Updated: September 29, 2009 12:01 EDT