2002-10-10 -- Weldon, Terrance -- Guilty Plea -- News Release

Former Ocean Township Mayor Admits Extorting Developers of More than $60,000 in Return for Official Favors

NEWARK - Terrance D. Weldon, the mayor of Ocean Township and the city manager for Asbury Park, pleaded guilty today to three counts of extortion, admitting that he took more than $60,000 in cash bribes from three different developers between 1998 and 2001 in connection with his official duties as mayor, U.S. Attorney Christopher J. Christie announced.

Weldon, who has served as mayor of Ocean Township since 1991 and as city manager of Asbury Park since November of 2000, pleaded guilty to a three-count Information before U.S. District Judge William H. Walls. Sentencing was scheduled for Jan. 7 at 9:30 a.m. Judge Walls set bail at $100,000 to be secured by Weldon's Ocean Township home.

When he is sentenced by Judge Walls, Weldon faces a maximum penalty of 20 years in prison and a $250,000 fine on each extortion count, according to Assistant U.S. Attorney Mark J. McCarren.

Weldon resigned his public offices Monday, with a public statement that he had committed wrongdoing in office.

"Mr. Weldon put on a good show for many years," Christie said. "He posed as a fine public servant when, in fact, he was serving himself, rigging the system for developers and making a mockery of government in Ocean Township."

"I can assure the public that the investigation of official corruption in Monmouth County and our entire state is far from over," Christie said.

During the plea hearing, Weldon, who was also a member of the Ocean Township Planning Board, admitted that he took cash bribes for assisting three developers to secure zoning and subdivision approvals on three unrelated projects in Ocean Township. None of the developers were identified in the Information or during the plea hearing.

Weldon admitted that in the late spring or early summer of 2001, he accepted $50,000 in cash from a Neptune developer who sought and ultimately received approval to build a 75-unit residential development in Ocean Township. Weldon confirmed that he voted in favor of approving this development as a member of the Ocean Township Council on three separate occasions, including a crucial vote to rezone the property to allow the developer to build as many homes as possible.

Weldon admitted that he hid the $50,000 in his home. It was seized by FBI during the execution of a court-authorized search warrant in January 2002.

Weldon also admitted receiving three separate payments ranging from between $2,000 and $3,000 each from a second developer in connection with a 328-unit residential development in Ocean Township. Weldon admitted that in connection with these payments, he assisted the second developer with applications to amend the site plan for the development in his role as a member of the Planning Board during 2001. Weldon also voted in favor of one of the site plan amendments.

Finally, Weldon admitted accepting a total of $5,000 in two separate payments from a third developer who, in 1998 and 1999, was building homes along Mark Place in Ocean Township.

Weldon admitted first meeting with the developer in the parking lot of an Ocean Township restaurant and offering support for the subdivision approvals in exchange for $5,000. Several days later Weldon admitted that he met the developer again, went for a drive along Route 35 in Weldon's car and accepted a partial payment of approximately $2,000 from the developer. Weldon said he subsequently sought and received the balance of the payoff from the developer, telling him he would soon be leaving for vacation.

Weldon was first elected as an Ocean Township councilman in 1989, and became mayor in 1991, a position he has held since that time. Weldon was most recently re-elected to serve on the Council in May of 1999. Weldon was appointed as interim City Manager of Asbury Park in December of 2000, following the death of former Asbury Park City Manager Wilbert Russell. The Asbury Park City Council later appointed Weldon to a one-year term as City Manager in June of 2001, and he was reappointed to a three-year term in July of 2002. Previously, Weldon had served as a firefighter in Asbury Park, retiring as the chief in December of 2000. Weldon resigned his positions as Mayor of Ocean Township and City Manager for Asbury Park on Monday, in anticipation of his guilty pleas.

Under U.S. Sentencing Guidelines, Judge Walls will determine Weldon's actual sentence based on a formula that takes into account the severity and characteristics of the offenses and other factors.

Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen, and the IRS Criminal Investigation Section, under the direction of Special Agent in Charge Anne D. Fahy, for their work in developing the case.

The Government is represented by Assistant U.S. Attorneys Mark J. McCarren and Nelson Thayer, Jr.

-end-

Defense Attorney: Robert Galantucci, Esq. Hackensack