DRUG WITNESS SAYS MILAN WARNED HIM OF INQUIRY

Saul Febo Also Said Four Officers Tipped Off Dealers Or Took Bribes. The
Mayor Has Denied Allegations.

The day after Milton Milan was elected mayor of Camden in May 1997, he
warned the leader of a multimillion-dollar drug organization that "the feds
are watching," the drug leader testified yesterday.

That is how Saul "Gordo" Febo, 32, learned that federal authorities were
investigating his drug empire in East Camden and his close relationship
with Milan, Febo said yesterday in a federal drug trial in U.S. District
Court in Camden.

"I don't want anything to happen to you," Febo quoted Milan as saying as
the two huddled at the mayor's victory party at Casablanca, a Federal
Street nightclub Febo co-owned. "If I were you, I'd leave town for a while."

Febo, the government's key and final witness, yesterday provided the
trial's most detailed account of Milan's alleged dealings with the city's
largest drug organization after he was elected to the city's top post.

He also, for the first time, named Milan's former bodyguard, Camden
Detective Miguel Torres, as having passed along confidential police
information about approaching drug raids. Febo then named three additional
officers, all currently on the city's police force, as having either tipped
off drug dealers or accepted bribes.

Milan, who declined to comment yesterday, has repeatedly denied involvement
with the drug organization. He has not been charged with any crime.

Torres, in an interview yesterday, denied ever giving Febo confidential
police information.

Milan's attorney, Carlos A. Martir Jr., called Febo's testimony a
"fabrication" and said Milan would endure this trial as he had an ongoing
federal investigation of allegations of corruption in his administration.

"For close to two years, I think they've made it clear that they want the
mayor," Martir said.

Febo testified that although Casablanca was not legally open in 1997, he
received a special permit through city officials to hold Milan's party. On
that warm May night, everyone was shaking his hand and thanking him for his
help when he swung open the doors to the club. He said Milan's wife,
Kathryn, had kissed him on the cheek. Milan then shook his hand, Febo
testified, and invited him to his table.

"He told me . . . someone is investigating us," Febo said, adding that he
moved to Florida soon after that warning. He quoted Milan as saying: "They
told me that the feds are watching me and you."

It was Febo's second day on the stand in the drug-conspiracy trial of Jose
Luis "J.R." Rivera, 40, a Camden businessman, and Luis "Tun Tun" Figueroa,
34, of Puerto Rico. Both men, if convicted, face life in prison.

Although Milan is not a defendant, at least five drug dealers have
testified during the six-week trial that he bought or sold drugs, or tipped
off dealers. Most of the accusations concerned the period before Milan was
an elected official.

Febo also said this week that he began his drug career in the late 1980s
selling drugs in North Camden with a group of dealers that included Milan.

Yesterday, Febo testified that Torres, removed late last year as Milan's
bodyguard, twice tipped him off about police raids. Febo also said Torres
worked as a bouncer at Casablanca in 1996, despite an order from
then-Police Chief William Hill to stay away from the bar because it was "a
drug dealers' club."

"He [Torres] was telling me 'to be careful, let your people know there are
going to be some raids next month,' " Febo testified. "He said, 'I'm just
telling you as a friend.' "

Torres said yesterday that he never worked at Casablanca. He said that the
club was "the place to be for Latin dancing," and that he often went there
on weekends.

He said he did not know that Febo owned the club.

Torres, who joined the Police Department in 1994 and was assigned as
Milan's bodyguard in 1998, added: "I never worked for narcotics, I never
worked vice, and was never privy to any information on any raids as a
patrolman."

"I have no clue what he [Febo] is talking about," said Torres, who now is
assigned to the department's community-oriented policing unit.

In the last two days, the courtroom has been filled with spectators eager
to hear Febo describe how members of the drug organization protected its
turf using violence, intimidation and connections to the highest echelons
of city government.

On the stand yesterday, Febo named police officers, some still on the
force, whom he described as "crooked," and recounted the gruesome murder of
a rival drug dealer, Manuel "Manolin" DeJesus, in 1993. DeJesus, who was
allegedly plotting to kill Febo and Figueroa, was lured to an apartment and
shot twice in the head.

As DeJesus lay dead on the floor, Febo said, he kicked him in the face and
told him: "You wanted to kill me. That's what you get now."

Febo said that type of action was how he protected his reputation as he
built the city's largest open-air drug market, called "The Alley," near
Bank and Boyd Streets. The Alley was so profitable that Febo was able to
finance two businesses in East Camden: Sal's Auto Sales and Casablanca.

Febo said he bought into Casablanca in 1996. He said Milan had his campaign
headquarters as well as his 1997 mayoral victory party there. Febo said he
had gotten his special "24-hour permit" from former acting Fire Chief
Herbert Leary.

In an interview yesterday, Leary said he never issued a 24-hour permit but
said the club may have obtained a 90-day certificate of occupancy.

"I never dealt with Febo," Leary said.

At Casablanca, Febo said, Torres agreed to work as a bouncer at the back
door, where he would not be visible to other police officers.

"He used to sit down at the table and talk to me," Febo said. "He knew I
was the owner of the Alley."

Although Febo said he did not trust Torres, he said the detective
volunteered confidential police information at least two times -
information that turned out to be accurate.

Other Camden police officers, Febo testified, also provided cover for the
drug ring's operation - sometimes in exchange for money. During several
hours on the witness stand, Febo often added details before prosecutor
Sally Smith asked a question.

He said an officer named Steve, whom law enforcement officials identified
as Steve Gracia, often would patrol the Alley and shake down dealers.

"He used to tell the guys, 'I'm working in this area today,' " Febo said.
"He said, 'If you're going to make money, I'm going to make money.' "

Febo said he told his employees to pay $200 to $300 to keep the officer happy.

Gracia still works for the department as a patrolman and could not be
reached for comment yesterday.

"Officer Colon," Febo said, operated differently. He would pick up drug
dealers, steal their drugs and money, and drop them off near a high school.
Febo said Colon, whom authorities identified as Patrolman Frank Colon, once
picked up Febo's brother-in-law and stole marijuana and $1,500.

When Febo heard about it, he said he told his relative he was lucky.

"It was better for him to do that than lock you up," Febo told him. "So you
got blessed."

Colon, who still works for the Police Department as a patrolman, could not
be reached for comment.

Febo also testified that Officer Carmen Ortiz, now a patrol officer, tipped
him off about raids. Ortiz could not be reached for comment.

Camden Police Chief Robert E. Allenbach said his office would investigate
allegations against his officers after the trial.

Allenbach said the allegations against Torres were the reason the detective
was reassigned. He said, however, that yesterday's testimony was the first
time he heard allegations against Colon and Ortiz.

"Everything will get turned over to Internal Affairs," he said, adding that
he will work with the FBI and the Camden County Prosecutor's Office. "I
will act severely, but I need information."

Camden County Prosecutor Lee A. Solomon, the state-appointed monitor of the
department, was in the courtroom yesterday afternoon when the allegations
surfaced, but he declined to comment.