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New Jersey - ExMayor, Bribes, Housing and Developers
Thursday, 14 April 2005

New Jersey
EX-MARLBORO MAYOR: I TOOK $245K IN BRIBES
Former Marlboro Mayor Matthew V. Scannapieco pleaded guilty Tuesday to accepting $245,000 in bribes from a developer in exchange for his support for housing and commercial developments opposed by many residents.

EX-MARLBORO MAYOR: I TOOK $245K IN BRIBES

Ashbury Park Press

SCANNAPIECO PLEADS GUILTY, SAYS MONEY CAME FROM DEVELOPER:
Also admits tax evasion in U.S. District Court
Published in the Asbury Park Press 04/13/05

Related Articles
• EX-MARLBORO MAYOR: I TOOK $245K IN BRIBES
April 13, 2005
• Attorney issues statement on behalf of Scannapieco
April 13, 2005
• One-word answers
April 13, 2005
• Political careers rose, fell in tandem
April 13, 2005
• Mayor won big in 3 turbulent Marlboro races
April 13, 2005
• Developer Spalliero's ties to mayor go back for years
April 13, 2005
• Former Marlboro mayor pleads guilty to accepting bribes

The guilty plea
Eight months after FBI and IRS agents raided his home looking for evidence of unreported income, Scannapieco stood before U.S. District Judge Jerome B. Simandle in Camden to enter his guilty plea.

With a lengthy series of yes and no answers, Scannapieco admitted taking cash bribes in exchange for using his influence, or directly voting to approve, six projects in Marlboro.

Scannapieco also pleaded guilty to a tax-evasion charge, admitting he filed a false income tax return in 1998 that omitted some of the windfall he was receiving from his secret deals.

All of the developments listed in the federal complaint filed against Scannapieco were proposed or originally owned by Spalliero, a controversial and well-known developer with whom Scannapieco first forged a close friendship in 1992 when he became mayor.

When told of Scannapieco's guilty plea Tuesday, Spalliero exclaimed, "Holy s———," and declined to comment further.

From 1992 to December 2003, Scannapieco served as both Marlboro's mayor and a voting member of its Planning Board. Through the years, with the exception of himself and the various council members who served on the nine-member board, Scannapieco appointed all the others.

In court Tuesday, Scannapieco answered yes when asked if, in 1997, he took $25,000 in cash "from a developer who regularly transacted business within Marlboro Township." Specifically, Scannapieco took the cash for supporting a project located off Texas Road.

Township officials Tuesday said this development is most likely Woodbury Oaks, which was proposed by Spalliero.

Sometime in 1997 or 1998, Scannapieco took $60,000 in cash in exchange for supporting the rezoning of property south of Woodcliff Boulevard, which township officials said is most likely the Sterling Woods development.

Dr. Smitha Manoj, 33, of Woodcliff Boulevard didn't bat an eye when a reporter told her about Scannapieco's transgressions.

"Everyone knows politicians take bribes," sh! e said, adding that she believes the politicians in India, her native country, are no different. "How else can they push all this development through? . . . They're all dishonest."

Her neighbor, Nima Suhkia, 34, wondered if one of the developments referred to in the court papers was a controversial project opposed by many of her neighbors.

"Everyone in the development was angry about that one," she said. "We appealed to the town officials not to build it."

Scannapieco admitted that in 1999 he took $25,000 as a reward for his effort to help settle a dispute between a developer who had rights to build on Dutch Lane, Vanderburg and Pleasant Valley roads — all sites of future Spalliero projects.
Airport tract zoning
The heftiest bribe came in 2001 or 2002, when Scannapieco accepted $100,000 in exchange for pushing the rezoning of the former Marlboro Airport property.

Negotiations on the proposed rezoning of the 151-acre airport property for age-restricted housing have been under investigation by the FBI since they began. The zoning was never implemented.

Scannapieco also admitted taking $10,000 in exchange for persuading an elected state official to assist the developer in procuring an easement across Dutch Lane and Buckley roads.

Bennett said Tuesday he had called the state Department of Transportation at Scannapieco's request to check on the easement. But he stressed that he frequently made telephone calls to check the status of various applications and did not know Scannapieco's request was tied to a bribe.

"I had no idea he was getting money for this," Bennett said. "I'm kind of stunned."

Finally, between 2002 and 2003, Scannapieco took $25,000 in exchange for supporting rezoning that would allow for the construction of a large retail store at the intersections of Routes 9 and 520.

With all that cash coming in year after year, Scannapieco, who earned a master's degree in finance from St. John's University, admitted he devised a system he thought could fool the IRS.

Between 1998 and 2003, Scannapieco used cash to purchase postal money orders, cashier's checks and official bank checks.

With these, according to the federal complaint, Scannapieco would pay for "personal living expenses, including jewelry, vacations, home furnishings and home improvements."

According to sources, these improvements included a basement floor made of imported red Italian marble.

Scannapieco also admitted purchasing money orders in specific amounts from different post offices, all within a short period of time, so as to avoid filing accurate income tax returns.

Further, Scannapieco admitted that in August 1998, he gave roughly $35,000 to an unnamed relative! , instru cting that person to deposit the cash into his own bank in amounts smaller than $10,000. This was done to create the illusion that the money was not taxable income.

And, on April 15, 1999, Scannapieco filed an income tax form for 1998 in which he falsely listed his taxable income as $80,239, the complaint reads. Scannapieco admitted to repeating this pattern for the next four years.
Sentencing July 15
As part of Scannapieco's plea agreement Tuesday, he waived his right to appeal if sentenced to less than 51 months in prison.

U.S. District Judge Jerome B. Simandle, however, cautioned Scannapieco that his plea agreement would play no part in the final decision rendered in sentencing, which is set for July 15.

Freeholder Director Thomas J. Powers said it's unfortunate that Monmouth County residents have such a cynical attitude toward public officials, and said if he hadn't been an elected representative for three decades, he might feel the same way.

"A lot of things are coming out that we haven't heard before. But thank God they are coming out," Powers said. "I want a clean house."

As for Scannapieco, he said, "I never thought that his linen was that clean."

Former Marlboro Mayor Matthew V. Scannapieco pleaded guilty Tuesday to accepting $245,000 in bribes from a developer in exchange for his support for housing and commercial developments opposed by many residents.

Scannapieco, appearing in U.S. District Court, pleaded guilty to one count of accepting corrupt payments and one count of tax evasion.

He faces a combined maximum of 15 years in prison and $350,000 in fines. He is currently free on $100,000 bail.

"As Marlboro Township grew and faced development pressures, Scannapieco was there with his hand held wide open," U.S. Attorney for New Jersey Christopher J. Christie said in a prepared statement. "Decisions that literally shaped the landscape and character of a community were bought and paid for by this mayor and developer."

Scannapieco admitted that from 1997 to 2003, while serving as both mayor and a member of the township Planning Board, he accepted six cash payments from a developer and the developer's associates in return for his backing of proposed developments.

The developer was not named in court. However, Scannapieco provided specific locations for each development for which he said he accepted a bribe. Township planning records indicate the locations mentioned involved developments proposed by Anthony Spalliero, 62, of Marlboro.

"I've been approached by several employees involved with the permitting process and the engineering process (in the developments), who have told me these projects were all Spalliero projects," current Marlboro Mayor Robert Kleinberg said Tuesday.

Scannapieco, 60, also admitted in court to accepting a $10,000 payment to persuade "an elected state official" to procure an easement for a development — a reference to then-Township Attorney John O. Bennett III, a Republican state senator at the time.

The $245,000 figure ranks Scannapieco at the top among all public officials in New Jersey gu! ilty of taking bribes in recent years. As a sitting member of the state's Victims of Crime Compensation Board, he is also the only commissioner to admit criminal wrongdoing.

Scannapieco's plea comes barely two months after 11 officials in several Monmouth County towns — including three mayors — and three businessmen were swept up in an FBI corruption sting. Federal law enforcement officials said the investigation into corruption in Marlboro — and the county in general — is continuing.

Today, the developments made possible by Scannapieco's purchased votes and support bear names like Pleasant Valley Estates, Castle Point and Sterling Woods — developments that have helped wrench Marlboro from a rural past and into a nearly built-out, sprawling suburban present.

David Safchik, a 52-year-old accountant who lives on Pollack Drive, said he wasn't surprised the former mayor took bribes from a developer.

"I have very little confidence in our local elected officials," Safchik said as he watched children play baseball at Marlboro Middle School. "I don't understand why they would be in the game other than for personal gain. It's very disheartening to me."

 
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