Ousted Atlantic City Mayor Michael Matthews once confessed to...

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NEWARK, N.J. -- Ousted Atlantic City Mayor Michael Matthews once confessed to selling his influence to the mob and agreed to testify against it, but changed his mind the following day, prosecutors said Thursday.

The disclosures were made in U.S. District Court as Matthews, 50, pleaded innocent at his arraignment on conspiracy and extortion charges.

Federal prosecutors revealed that during an all-night meeting Dec. 6-7, Matthews 'confessed' he sold his office to representatives of the Philadelphia-South Jersey Mafia family said to be headed by Nicodemo 'Little Nicky' Scarfo.

Assistant U.S. Attorney Peter Bennett said Matthews agreed to plead guilty to an offense carrying a maximum 20-year penalty and wear a tape recorder in a continuing undercover investigation against the Scarfo mob.

He also asked to be placed in the federal witness protection program and be relocated with a new identity, Bennett said.

But on Dec. 8, Matthews changed his mind, prompting the FBI to raid his City Hall office in Atlantic City to seize evidence of bribery and extortion, Bennett said.

Matthews was removed from office March 13 in a recall referendum, the result of which he is challenging in court.

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