10-03-05 -- Merla, John J. -- Indictment -- News Release

Keyport Mayor John Merla Indicted

NEWARK - A federal grand jury today indicted Keyport Mayor John J. Merla on charges of accepting corrupt payments, conspiracy and depriving the public of honest services for taking a total of $23,000 from undercover agents and a cooperating witness whom Merla believed was a corrupt contractor, U.S. Attorney Christopher J. Christie announced.

The Indictment alleges that Merla accepted the cash payments between September 2003 and November 2004 in return for steering public and private contracts to the cooperating witness in Keyport and elsewhere in Monmouth County. The Indictment also alleges that Merla introduced the cooperating witness to other public officials so that they could accept bribes from and secure contracts for the cooperating witness.

Merla, 42, was originally charged in a criminal complaint on Feb. 22, along with 10 other current and former public officials in Monmouth County. All were charged with either money laundering or taking corrupt payments or services from the same cooperating witness posing as a contractor. With respect to Merla, one of the payments was made through undercover FBI agents posing as the contractor's employees.

There will be no court appearance for Merla today. He will be arraigned on the Indictment at a date to be set by the judge to whom the case is assigned.

Despite indictment, all defendants are presumed innocent unless and until proved guilty beyond a reasonable doubt.

The Indictment charges Merla with four counts of accepting corrupt payments, each of which carries a maximum penalty of 10 years in prison and a $250,000 fine; one count of conspiracy to obtain corrupt payments under color of official right, which carries a maximum penalty of 20 years in prison and a $250,000 fine; and two counts of defrauding the public of honest services (mail fraud), each of which carries a maximum penalty of 20 years in prison and a $250,000 fine.

Merla allegedly took a $9,000 cash bribe from the cooperating witness on Sept. 11, 2003, at a Keyport diner; $2,500 from the cooperating witness on Dec. 7, 2003, at a birthday party for Merla's brother; $10,000 from the cooperating witness on Jan. 12, 2004, at a Keyport restaurant, and $1,500 from the undercover FBI agents on Nov. 23, 2004 at a Keyport diner.

Christie credited Special Agents of the FBI's Red Bank Resident Agency, under the direction of Special Agent in Charge Leslie Wiser, Jr., with the investigation leading to today's indictment. The case is being prosecuted by Assistant U.S. Attorneys A. Matthew Boxer and Michael A. Hammer.

-end-

Defense Counsel: Michael Pappa, Esq. Hazlet