Price and his wife were found guilty of setting up “shell” or “dummy” corporations, namely GEM Furniture, RC Technology and Starr Point, to bilk the city of East Orange of $106,429 by overcharging the city for furniture and communications equipment. At the time, Price was assigned to the Communications Center and was responsible for making recommendations regarding certain vendors and businesses that could provide equipment to the Communications Center. The city of East Orange had allocated $2 million for upgrades and modernizations of the Communications Center.

On May 16, 2006, Price was found guilty by an Essex County jury of one count of Money Laundering, three counts of Official Misconduct, three counts of Conspiracy to Commit Official Misconduct, two counts of Compensation for Past Official Behavior, three counts of Conspiracy to Commit Compensation for Past Official Behavior, three counts of False Contract Payment Claims, three counts of Conspiracy to Commit False Contract Payment Claims, two counts of False Contract Filing Claims, one count of Conspiracy to Commit False Contract Filing Claims, two counts of Theft by Deception, three counts of Conspiracy to Commit Theft by Deception, and three counts of Unlawful Business Transactions.

McRae was found guilty of one count of Money Laundering, two counts of Official Misconduct, two counts of Conspiracy to Commit Official Misconduct, two counts of Compensation for Past Official Behavior, two counts of Conspiracy to Commit Compensation for Past Official Behavior, two counts of False Contract Payment Claims, two counts of Conspiracy to Commit False Contract Payment Claims, two counts of Theft by Deception, two counts of Conspiracy to Commit Theft by Deception and two counts of Unlawful Business Transactions.

Price was sentenced to 20 years in state prison. McRae was sentenced to 14. Both have since been paroled.

On appeal both defendants argued that they had been denied a fair trial. Among other things, they alleged prosecutorial misconduct and alleged their sentences were excessive.

In a Dec. 6, ruling a three-judge panel of the Appellate Division of Superior Court disagreed and upheld the convictions and the sentences.

“The proofs of guilt were overwhelming, the trial was fair and the punishment imposed justified,’’ the appeals panel held.

The case was tried by Assistant Prosecutors Paul J. Bradley and Naazneen Khan. The appeal was argued by Deputy Chief Assistant Prosecutor Debra Simms.

“We worked extremely hard on this case and it is gratifying to have the Appellate Division affirm the convictions and sentences on all counts,’’ said Bradley. “With a brazen and callous disregard, Price and his wife violated the public trust.’’