10-11-05 -- Spalliero, Anthony et al. -- Indictment -- News Release

Developer Spalliero and Son Indicted in Monmouth County Corruption Investigation

NEWARK - A Monmouth County developer and his son, both of whom also have ownership interest in several nightclubs in New Jersey, were charged today in a 14-count indictment with bribery and mail fraud, U.S. Attorney Christopher J. Christie announced.

The Indictment charges Anthony Spalliero, 63, with 10 counts of offering corrupt payments to Marlboro Township and Monmouth County officials in exchange for favorable treatment of his development projects, and four counts of defrauding Marlboro Township and Monmouth County of the right of the honest services of their officials (mail fraud). The Indictment charges Joseph Spalliero, 40, with one count of offering and giving a corrupt payment.

The Indictment describes payoffs totaling $142,500, ranging from $1,000 to as much as $60,000, that Anthony Spalliero allegedly made to influence elected and appointed officials to act favorably on decisions for Spalliero development projects. In addition to cash, Anthony Spalliero also lavished local officials with limousine services, hotel accommodations, alcohol and parties at Spalliero nightclubs, according to the Indictment.

Christie said the investigation of the Spallieros and others continues.

The Spallieros will be arraigned on the Indictment sometime in the next two weeks.

Counts One and Two of the Indictment charge Anthony Spalliero with giving, from 2001 to 2003, a total of $100,000 in cash to then-Marlboro Township Mayor Matthew V. Scannapieco in exchange for Scannapieco's support of a proposal by Anthony Spalliero and others to develop residential units on the site of the Marlboro Airport and surrounding properties.

Count Three charges Anthony Spalliero and Joseph Spalliero with giving $10,000 in cash to Scannapieco in 2002, for Scannapieco's intervention with a state official to secure for Anthony Spalliero an easement from the New Jersey Transit Corporation. The easement was needed so Spalliero could complete a development near Buckley Road and Dutch Lane.

Counts Four and Five charge Anthony Spalliero with giving $25,000 in cash to Scannapieco in 2002 and 2003, in exchange for Scannapieco's support of a bid by Spalliero to obtain rezoning and land-use approvals for a large retail store near Routes 9 and 520.

Count Six charges Anthony Spalliero with offering to give $30,000 in 2002 to an unnamed member of the Marlboro Township Planning Board in exchange for that member's support of Spalliero's bid to develop residential units on the airport property.

Count Seven charges Anthony Spalliero with offering to give money in 2003 to an unnamed member of the Marlboro Township Planning Board in exchange for that member's support of the rezoning and land-use approvals Spalliero sought for the large retail store on Routes 9 and 520.

Counts Eight and Nine charge Anthony Spalliero with giving a total of $2,500 in cash to then-Marlboro Township Planning Board member Stanley Young in 2001 and 2002, in exchange for Young's support of Spalliero projects in Marlboro Township.

Count 10 charges Anthony Spalliero with giving $5,000 in cash to Anthony Palughi in 2001. At the time, Palughi was the Superintendent of the Division of Bridges in Monmouth County and an aide to the Freeholder Director of the Monmouth County Board of Chosen Freeholders. The Indictment charges that Spalliero gave Palughi the $5,000 in cash to give to the Freeholder Director. The Indictment further charges that Anthony Spalliero gave the money to the Freeholder Director in exchange for the Freeholder Director's assistance in conjunction with various development projects throughout Monmouth County.

Counts 11 through 14 charge Anthony Spalliero with defrauding the public of the honest services of Scannapieco and Young (mail fraud).

Each of the bribery counts carries a maximum term of 10 years in prison and a $250,000 fine. Each of the mail fraud counts carries a maximum term of 20 years in prison and a $250,000 fine.

A date for the defendants' arraignment on the Indictment has not yet been scheduled.

An Indictment is a formal charge made by a grand jury, a body of sixteen to twenty-three citizens. Grand jury proceedings are secret, and neither persons under investigation nor their attorneys have the right to be present. A grand jury may vote to indict if twelve or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all of the trial rights guaranteed by the United States Constitution and federal law.

U.S. Attorney Christie credited Special Agents of the FBI's Red Bank Resident Agency, under the direction of Special Agent in Charge Leslie Wiser, Jr., and Special Agents of the IRS Criminal Investigation Division, under the direction of Special Agent in Charge Patricia J. Haynes, with the investigation leading to today's Indictment.

This case is being prosecuted by Assistant U.S. Attorneys Michael A. Hammer and A. Matthew Boxer of the Special Prosecutions Division in Newark

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Defense Attorneys:

Michael Critchley, Esq., West Orange, NJ

Salvatore Alfano, Esq., Bloomfield, NJ