DEALERS TO TESTIFY ABOUT MILAN

As Jury Selection Ended, Prosecutors Named 2 Key Witnesses Who Would
Talk About Camden's Mayor.

CAMDEN - Convicted drug lord Jose Luis "J.R." Rivera will take the stand in
the federal corruption trial of Camden Mayor Milton Milan to testify that
the $65,000 loan he gave Milan in 1994 came from proceeds of his
multimillion-dollar cocaine ring, federal prosecutors said yesterday.

Confessed drug dealer Saul Febo will also testify at Milan's trial about a
free car he helped Milan obtain in late 1996 from Camden businessman
Domenic Monaco, whose company held the city's towing contract, prosecutors
said.

Assistant U.S. Attorneys Renee M. Bumb, who will prosecute the case with
Mary A. Futcher, told a federal judge yesterday that the government also
wants to introduce evidence of Milan's relationship with both Rivera and
Febo prior to the 1994 loan to establish that they were involved with
drugs. U.S. District Court Judge Joel A. Pisano will rule on that issue
before opening statements Nov. 6.

That evidence would include testimony about how Milan gave Febo his start
in Camden's drug business in 1985 and taught him the trade; purchased a
kilogram of cocaine from Febo in 1992; and told Febo in 1994, while the two
were getting high on marijuana, that he intended to buy another kilogram of
cocaine.

It would also include testimony from Rivera that he frequently gave Milan
cash loans, including $2,500 in 1992, $1,000 in 1993, and $20,000 in the
summer of 1994. At one point, according to a trial brief filed by
prosecutors, Milan owed Rivera $26,500.

The stunning revelations came on the fourth and final day of jury selection
in Milan's trial. The final jury pool consists of nine white and three
African American members; eight women and four men. There are also four
alternate jurors.

Milan is accused in a 19-count indictment of accepting cash and gifts from
organized crime, soliciting free home renovations from city vendors,
extorting a political appointee, and laundering drug money.

Milan, who was elected to City Council in 1995 and to the city's top job in
1997, has denied all charges.

When asked about yesterday's developments, Milan, who appeared tense and
angry, declined to comment on the specific charges, saying only: "It keeps
going back to the source of what this whole thing stems from ... There is a
lot of politics involved." He remained in the courtroom through all of
yesterday's proceedings.

The mayor's defense attorneys, Carlos A. Martir Jr. and Franklyn Perez,
argued before Pisano that such testimony is prejudicial and will only serve
to "taint" Milan's reputation.

"This is not a drug indictment," Martir argued in court. "This is a
political corruption indictment ... The taint is too great."

Bumb argued that such testimony was necessary to prove that Milan knew - or
willfully ignored - that the $65,000 in cash Rivera gave him in November
1994 came from drug proceeds. At the time, Milan was running a construction
company called Atlas Contracting Inc., and needed the money as security to
bid on a city contract.

According to the March indictment, Milan attempted to conceal the source of
the $65,000 by breaking down the money into increments of less than $10,000
to elude notifying the Internal Revenue Service.

His partner at the time, Joseph "Gholam" Darakhshan, is expected to testify
that Milan told him at the time that Saul Febo was the "biggest drug dealer
around." Febo, Bumb argued in court yesterday, frequented Rivera's East
Camden auto-parts store, often on occasions when Milan was there in the
presence of other known drug dealers.

That, Bumb said, would show the jury that Milan knew Rivera and Febo were
involved in the drug trade.

"I think the testimony of Saul Febo and Jose Rivera is all wrapped up ...
It presents a beginning and an end to the story," Bumb argued.

According to a trial brief filed by the government in support of its
arguments, prosecutors said they may also introduce evidence of how Milan
attempted to solicit a bribe from Camden businessman Mark Willis in
exchange for Milan's help in solving Willis' tax arrears.

In an interview yesterday, Willis, owner of the old Sears Building on the
Admiral Wilson Boulevard, said his attorneys wrote a letter to the city in
March 1998 expressing a desire to settle his tax bill.

Soon after, Willis said, Milan called him and asked him to come to his
mayoral office. During the meeting, Willis said Milan asked him for money -
Willis would not say how much - in return for help on his tax bill. Two
weeks later, Willis said, he told Milan he could not come up with the money.

About a year later, the city tried to foreclose on Willis' property. The
dispute has yet to be settled.

"I was immediately orphaned," Willis said. "I was put on the doorstep next
to the empty milk bottles."

Prosecutors said in the trial brief that they may also introduce evidence
that Milan stole food during the city's 1997 Thanksgiving Drive and toys
during the 1997 Christmas Toy Drive.

The Inquirer has reported that a source familiar with both charity drives
told federal officials that shortly before Thanksgiving 1997, Milan showed
up late one night at the building where the food was stored, along with
several people who loaded food into their cars.

That source also told authorities that twice during the Christmas toy
drive, Milan had arrived at night at the same building, again with several
people who loaded toys into vehicles.

Milan has denied the allegations.

One of the people who donated turkeys for the Thanksgiving drive was
reputed mob associate Daniel Daidone. Daidone, who has not been charged
with any wrongdoing, is featured in a video about the Thanksgiving drive,
saying: "It's a new era, and I think a lot could be done now in this city
... I am pleased that I'm able to donate some stuff down here to take care
of the needy."