Truck and Equipment Company Owners and Salesman Indicted in Monmouth County Public Corruption Investigation

NEWARK – Two co-owners and a salesman at a Monmouth County truck and equipment company were charged today with bribing numerous government officials in Monmouth and Ocean counties in exchange for steering municipal truck sales to their company, U.S. Attorney Christopher J. Christie announced.

The 19-count Indictment, which was returned yesterday under seal, charges Matthew Appolonia, 41, of Berkeley Heights, and his brother, Stephen Appolonia, 53, of Colts Neck, co-owners of International Trucks of Central Jersey (ITCJ), which has offices in Howell and Hillside. The Indictment also charges the Appolonias’ municipal salesman, Robert Feldman, 49, of Brick Township.

Matthew Appolonia and Feldman were arrested early this morning by Special Agents of the FBI. Both are scheduled to make initial appearances before at noon today before U.S. Magistrate Judge Madeline Cox Arleo. Stephen Appolonia was arrested in February 2005 on charges related to some of the conduct described in the Indictment. He remains free on $250,000 bail.

The Indictment alleges that Matthew Appolonia was responsible for making corrupt payments to at least four government officials on multiple occasions. Stephen Appolonia is accused of bribing at least two government officials, as well as money laundering.

The Indictment alleges that Feldman schemed to defraud local governments by facilitating corrupt payments on behalf of the truck company to secure contracts.

ITCJ sells International-brand trucks and other equipment to Monmouth County and various municipalities in Monmouth and elsewhere.

According to the charges, all three defendants sought to recoup their pay-offs by including certain of the bribes and corrupt payments in the truck costs, thus charging the local governments for the corrupt payments.

The defendants’ scheme to steer vehicle sales and other business to ITCJ through corrupt payments involved officials working for Monmouth County, as well as Brick Township, the Borough of Seaside Heights, the City of Long Branch, and the Borough of West Long Branch. The officials who took bribes allegedly included a freeholder, councilmen, and a department of public works director. Only two of those officials are identified by name: Raymond O’Grady, formerly the director of Monmouth County’s motor pool, and Anthony J. Palughi, an aide to a former freeholder director.

In addition to the scheme to defraud the local governments, Stephen Appolonia is charged with laundering and conspiring to launder more than $350,000. Stephen Appolonia met numerous times with undercover FBI agents whom he believed were employees of a construction and demolition contractor (a cooperating witness), and who were purportedly involved in the laundering of loansharking proceeds.

In each of the money-laundering transactions, the cooperating witness or his employees delivered large amounts of cash – between $20,000 and $100,000 – and in return took checks from the defendants for the same amount less a 10 percent "fee," which the defendant or his co-conspirator kept for themselves, according to the indictment. The cash being delivered was represented Appolonia to be the proceeds of loansharking activity, according to the charges.

All three defendants are charged in Count One through Count Seven with a scheme to defraud local governments of honest services, money and property. Those counts each carry a maximum penalty of 20 years in prison and a $250,000 fine.

Matthew and Stephen Appolonia are also both charged in Count Eight through Count 14 with offering and giving corrupt payments, which carries a maximum penalty of 10 years in prison and a $250,000 fine.

All three defendants are charged in Count 15 through Count 17 with the scheme to defraud Neptune Township of money and property and a vehicle services company of honest services. Each of those counts carry a maximum penalty of 20 years in prison and a $250,000 fine.

Finally, Stephen Appolonia is charged in Count 18 and Count 19 with money laundering and conspiracy to launder money, which carry a maximum prison sentence of 20 years and a fine of $500,000 or more.

The indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Christie credited Special Agents of the FBI's Red Bank Resident Agency, under the direction of Special Agent in Charge Leslie G. Wiser, Jr., detectives from the Brick Police Department, under the direction of Police Chief Ron Dougard; and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Thomas Kelaher, with the investigation that resulted in today's charges.

The case is being prosecuted by Assistant U.S. Attorneys Mark McCarren (Chief, Public Protection Unit) and Hope Olds of the Special Prosecutions Division.

Defense Counsel:
Matthew Appolonia: Anthony Iacullo, Esq. Nutley
Stephen Appolonia: Walter Timpone, Esq. Morristown
Robert Feldman: Michael Koribanics, Esq. Clifton