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FEDS ARREST MARLBORO DEVELOPER AT EX-WIFE'S HOLMDEL HOME: Faces four counts of giving Scannapieco, Larrison a total of $143,500 in bribes
Federal agents rousted Spalliero, 62, from bed at 6:30 a.m. at the palatial home of his ex-wife in Holmdel. He was handcuffed and taken to FBI offices in Tinton Falls for processing and then driven by federal agents to U.S. District Court in Newark.
SPALLIERO CHARGEDFEDS ARREST MARLBORO DEVELOPER AT EX-WIFE'S HOLMDEL HOME: Faces four counts of giving Scannapieco, Larrison a total of $143,500 in bribesAsbury Park Press 05/4/05
By KATHY MATHESON, JAMES A. QUIRK and JAMES W. PRADO ROBERTS STAFF WRITERS  (STAFF PHOTO: PETER ACKERMAN, CHIEF PHOTOGRAPHER) Anthony Spalliero is flanked by his son, Joseph, and an unidentified woman as he leaves court. Related Articles• Palughi tied to downfall of other officialsMay 1, 2005 • Larrison gives up turnpike position
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March 8, 2005 | - advertisements - |
Anthony Spalliero, the successful Marlboro developer implicated last month in two corruption cases in Monmouth County, was arrested and charged Tuesday with paying $143,500 in bribes to a pair of elected officials in exchange for expediting his projects.
Federal agents rousted Spalliero, 62, from bed at 6:30 a.m. at the palatial home of his ex-wife in Holmdel. He was handcuffed and taken to FBI offices in Tinton Falls for processing and then driven by federal agents to U.S. District Court in Newark.
The usually gregarious developer was silent at his initial appearance before Magistrate Judge Ronald J. Hedges. Charged with four counts of offering corrupt payments to former Marlboro Mayor Matthew V. Scannapieco and former Freeholder Director Harry W. Larrison Jr., Spalliero faces up to 10 years in prison and $250,000 in fines on each count if convicted.
Asked how he was feeling as he walked out of the courthouse, Spalliero, who is widely known to be in poor health, smiled and said, "All right." When asked if he had anything to say about his arrest, Spalliero waved to his lawyer, Christopher W. Kinum, who said, "No comment" as they walked to a waiting car.
Though the bribery allegations against Spalliero first came to light last month when Scannapieco pleaded guilty to accepting payments from the developer, Spalliero's arrest was nonetheless gratifying to state Sen. Ellen Karcher, D-Monmouth.
A former Marlboro councilwoman once allegedly offered $150,000 in campaign funds by a Spalliero associate, Karcher lamented that graft has helped transform her once-rural community into an overcrowded suburb.
"The dark days (for Marlboro) may finally be over," Karcher said. 17 charged in 'Bid Rig' The federal case against Spalliero is the latest in a relentless FBI investigation of public corruption in Monmouth County known as Operation Bid Rig. So far this year, the U.S. Attorney's Office has filed bribery or money laundering charges against 16 officials, employees or residents, as well as a former municipal official from Somerset County.
"The investigation is ongoing and we are going to continue to pursue any and all leads that may develop," said the U.S. attorney for New Jersey, Christopher J. Christie. "That might lead us to bring further charges against people who have already been identified, or new charges against those who have not surfaced publicly."
Other major figures in the investigation, not charged but identified by sources, include Spalliero's frequent partner in developments, Terry Sherman, and former Monmouth County Superintendent of Bridges Anthony Palughi.
Regardless of who else might face prosecution, Colts Neck resident Jeff Hess said that if the charges are true, "everybody who is involved should be put away."
"Developers have been allowed to build on every inch of property (in Marlboro). They put million-dollar homes on quarter-acre lots," said Hess, 46. "Now, (Marlboro) looks ugly and the taxes are horrendous. Anyone who had anything to do with (overdevelopment) should be forced to pay fines." Specifics of complaint The charges against Spalliero, which stem from events from 2001 to 2003, include accusations that he paid $135,000 to then-Marlboro mayor Scannapieco.
Specifically, the complaint alleges these transactions:
Approximately $100,000 between 2001 and 2002 in exchange for the mayor's assistance in rezoning 151 acres on and around the former Marlboro Airport for senior housing. The rezoning never took place.
$10,000 during that same time period to help obtain an easement from a railroad line near Dutch Lane and Buckley Road in Marlboro.
About $25,000 in 2002 or 2003 in exchange for supporting the construction of a retail store on Routes 9 and 520. This is the current site of a Lowe's home improvement store.
Also, Spalliero allegedly funneled $8,500 to an unnamed freeholder director in exchange for helping various projects get needed approvals.
The freeholder director at the time, Larrison, was charged last week with taking $8,500 in bribes from an unnamed developer sources then identified as Spalliero. Larrison also served on the county Planning Board.
Palughi, a 69-year-old Wall resident, was Larrison's longtime driver. He hasn't been charged, but authorities have said he ferried the $8,500 in two payments from Spalliero and Sherman to Larrison's home in Ocean Grove.
Larrison gave Palughi $2,000 of that, according to the complaint.
Palughi could not be reached for comment.
Howard Brownstein, a Union City attorney representing Larrison, denied Tuesday that his client ever received money from Spalliero.
"Our position is that Mr. Spalliero paid Mr. Palughi and he kept the money for himself," Brownstein said.
On April 12, Scannapieco pleaded guilty to accepting $245,000 from Spalliero between 1997 and 2003 in addition to failing to report the income on his tax returns. It was not immediately clear why Spalliero was charged only with bribes paid between 2001 and 2003.
Scannapieco faces up to 15 years in prison and $350,000 in fines at his sentencing, scheduled for July 15.
Mitchell Ansell, Scannapieco's attorney, said that despite acting Gov. Codey's actions to freeze Scannapieco's sick and vacation pay for the state job he's held since 1996, the former mayor has filed his retirement papers and is still requesting that money from the state.
"Matt doesn't plan on seeking any kind of public employment in the future," Ansell said. ". . . It's our intention to collect that money, though I'm not sure what position the state will take."
Another key figure in the Spalliero case could be his associate, Richard Vuola, the former Marlboro Municipal Utilities Authority chairman and longtime local Democratic leader.
The complaint against Spalliero mentions an unnamed associate who, in December 2002, allegedly offered to provide a member of the Marlboro Township Council with approximately $150,000 in campaign funds in exchange for supporting the rezoning of the Marlboro Airport.
Sen. Karcher has said she wore a wire -- a hidden electronic recording device -- to tape Vuola making the offer.
Vuola was indicted in October and in December on charges that he offered bribes to one official in Marlboro and two in Manalapan to secure certain property zoning favorable to builders in those towns.
He has pleaded innocent. A status conference is scheduled for Tuesday. Free on $250,000 bond The Spalliero probe was spearheaded by Edward J. Kahrer, supervising special agent of the FBI's office in Tinton Falls, and case agents Robert Cooke and James DiOrio. It was overseen by Acting FBI Special Agent in Charge of New Jersey Pedro Ruiz.
Spalliero arrived in court Tuesday handcuffed and wearing his trademark black trousers, shirt and jacket, but devoid of his usual gold bracelet, rings and necklace. Six supporters watched the proceedings; none would speak to the Asbury Park Press.
Spalliero was released on a $250,000 bond, secured by a property in Aberdeen owned by his son, Vincent. When Judge Hedges asked why Spalliero wasn't putting up his own house to make bail, Spalliero's lawyer, Kinum, responded that it might take a week to arrange that. Spalliero owns a home on Old Mill Road in Marlboro.
Bail conditions require no contact between Spalliero and witnesses or named parties in the case, and no travel outside New Jersey except to Florida for medical reasons. Kinum said Spalliero has health conditions that must be treated by his medical team near his home in Cape Coral, Fla.
The arrest reverberated not only in Marlboro, but at the county and state level as well.
"I'm glad he has been arrested," Freeholder Deputy Director Amy H. Handlin said. "While dishonest business people of any kind are scourges, dishonest developers can do damage to their communities that is irreversible and catastrophic in its impacts. The Spallieros of New Jersey are spoiling our quality of life, driving up taxes, and degrading the environment -- permanently. They should be judged harshly not only by the courts, but by history." Charitable decision In Trenton, the Democratic State Committee announced it will donate to charity the $59,000 in contributions made by Spalliero and his ex-wife over the past five years.
"Mr. Spalliero is innocent until proven guilty, but we believe it's important to act swiftly and decisively when it comes to political ethics," said the committee chairwoman, Assemblywoman Bonnie Watson Coleman, D-Mercer. "Even though the alleged recipients of the bribes are Republicans, this is not a partisan issue. Honesty and integrity should govern both political parties."
The party is not required to return the donations nor is there any evidence the money was ill-gotten, said Watson Coleman.
The money will be donated to land conservation programs in Monmouth County, Watson Coleman added, noting the case involved allegations of trying to influence the approval process for building projects.
"The actions alleged against this defendant are the kind that corrupt the entire political system," U.S. Attorney Christie said in a statement announcing Spalliero's arrest. "They corrupt government, lay waste to our communities and betray our trust. All those who violated our laws -- public servants and businessmen alike -- will be held to account." Staff writers Bob Cullinane, Jason Method and Nina Rizzo contributed to this story. Kathy Matheson: (732) 643-4230 or
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