A New Jersey carnival manager Monday pleaded guilty to an obstruction of justice charge, the eighth and last conviction stemming from the investigation of former State Agriculture Commissioner Meg Scott Phipps.

A federal prosecutor Monday called the case "the most successful public corruption prosecution in North Carolina history."

On Monday, Morris Vivona Jr., 45, of Verona, N.J., general manager of Amusements of America Inc., pleaded guilty to one charge of lying to investigators about payments to Phipps' campaign. The charge carries a maximum penalty of 10 years in prison and $250,000 fine.

Sentencing was scheduled for Sept. 7 in U.S. District Court in Greenville.

U.S. Attorney Frank D. Whitney told reporters that prosecutors were working on an agreement that would require Amusements of America to be monitored for 18 months. If there are no illegalities, he said, criminal charges would not be brought against the company for its activities trying to win the N.C. State Fair contract.

"With today's guilty plea and Amusement of America's corporate compliance agreement, we can announce that the investigation is complete," Whitney said. "Barring unforeseen developments, there will be no further criminal charges brought by our office."

'A sad little chapter'

State and federal agencies investigated illegal payments from carnival operators who wanted to work at the fair, which the Agriculture Department oversees.

Whitney said the case was successful because seven people -- five high-ranking state officials -- were convicted in federal court. One more person pleaded guilty in state court and awaits sentencing.

Phipps was convicted by a state jury and pleaded guilty to charges in federal court. She is serving a four-year prison term on charges of extortion, mail fraud and conspiracy.

During Monday's brief hearing before U.S. Judge Malcolm J. Howard of Greenville, Vivona answered questions about his plea agreement and said he was guilty of obstructing justice. He declined to speak with reporters afterward.

"It's really a sad little chapter in North Carolina politics," Joseph B. Cheshire V of Raleigh, Vivona's attorney, said later.

Cheshire said the state should have established a procedure years ago for bidding on rights to the run the fair, which had gone for decades to a single company. When bidding was opened for the 2002 fair, he said, "neophyte politicians" and people who did not understand the law got involved.

Fallout of decisions

John Stuart Bruce, executive assistant U.S. attorney, summarized the government's case against Vivona.

He said Vivona decided he wanted to obtain the midway contract after former agriculture commissioner Jim Graham announced that he would not run for re-election. Strates Shows had held the contract 52 years.

Bruce said Vivona told Norman Y. Chambliss of Rocky Mount, a longtime associate, that his company would give Chambliss $50,000 and a vacation for two if Chambliss could "open the right doors."

Bruce said that during the general election, Amusements of America paid Phipps' way to the Ohio State Fair, gave her an illegal $6,000 contribution and $10,500 in legal contributions.

According to Bruce, the Phipps campaign was struggling to pay its debts after the election, and campaign treasurer Linda Saunders solicited an illegal $6,500 payment from Chambliss.

Vivona, through Chambliss, agreed to the payment, Bruce said.

Bruce said Chambliss during the investigation falsely said that Amusements of America had not offered to compensate him until after the contract was awarded in January 2002 and that Vivona had agreed only after the fact to fund the $6,500 payment to Saunders.

Bruce said Chambliss and Vivona compared notes about their interviews with investigators without the knowledge of their lawyers. Vivona backed up Chambliss' false answers in a sworn statement, the prosecutor said.

"Instead of people realizing what they did and saying, 'Boy, we screwed up,' they just exacerbate it by telling things that aren't true and making it worse and worse and worse, and then it spiraled out of control," Cheshire said.

He said Vivona had a spotless criminal record before the fair dealings. He said Vivona was despondent because the the case had cost his family's company millions due to lost business and damaged its reputation.

Vivona "feels responsible for all these old men who built this business when they were young," he said. "It's pretty much tearing him up."