Asbury Park Press
March 11, 2005
By Kathy Matheson and James A. Quirk
In a new wave of arrests from an FBI corruption sting, federal authorities charged two major government contractors and a former public official Thursday with laundering more than $450,000 and revealed bid-rigging allegations that cast doubt on the integrity of contracts awarded in Monmouth County.
The criminal complaints against the men — James B. Ingram, 54, of Middletown; Stephen Appolonia, 51, of Colts Neck; and Thomas A. Greenwald, 52, of Far Hills — accuse them of laundering more than $450,000 during a series of meetings with undercover agents posing as loan sharks in Monmouth County restaurants and private offices over the past several months.
Although the men were not charged with any other offenses, the complaint against Ingram includes his claim that his company — JBI Limousine Inc. of Neptune — fraudulently obtained a transportation contract with Monmouth County. The bid specifications are "basically tailored to me," he is quoted as saying.
Over the past five years, JBI was paid $9.8 million by the county. International Trucks of Central Jersey of Howell, which Appolonia co-owns, was paid $11.7 million since 1998 for at least 82 heavy-duty vehicles, according to county records.
When it came to laundering money, Ingram told undercover agents that JBI Limousine was "the greatest washing machine in the world," according to the complaint.
Although county residents interviewed Thursday were unfamiliar with either JBI or Ingram, many had a lot to say about the latest round of corruption arrests.
"I'm surprised, really," said Dale Bramhall, 45, of Avon. "You think it can't happen here. It's surprising when it's so close to home. But the guys who were caught, I'm glad they got arrested."
The complaint against Greenwald and Appolonia includes allegations Greenwald sought out someone to forcibly collect a debt — and that it wasn't the first time.
"Last time I did that years ago, they whacked the guy with a baseball bat and the guy had, like, a stutter for the rest of his life," Greenwald was recorded as saying.
Greenwald is a former councilman and liaison to the police department in tony Far Hills, a borough of about 900 people in Somerset County. He resigned his post on Feb. 26.
With these arrests, the investigation code-named Operation Bid Rig has resulted in the prosecution of 19 men since 2002, including 11 Monmouth County officials charged last month.
"This is another step in the Monmouth County corruption investigation and we expect more progress," U.S. Attorney for New Jersey Christopher J. Christie said in a statement.
The probe became public in 2002 when Christie charged then-Ocean Township Mayor Terrance D. Weldon and several former Asbury Park officials with taking kickbacks in exchange for votes on housing developments and jobs. Five of the officials have been convicted or pleaded guilty.
Ingram, Appolonia and Greenwald were arrested at their homes Thursday morning by special agents of the FBI and Internal Revenue Service. Each faces a maximum of 20 years in prison and a $250,000 fine if indicted and convicted.
Appolonia and Ingram were first brought to the FBI office in Tinton Falls before their court appearances. Ingram did not speak and covered his face while being whisked into a car for the ride to U.S. District Court in Newark; Appolonia softly replied "no comment" when asked for his response to the charges as he was led into the building.
After their initial court appearances, each man was released on $250,000 in unsecured bonds.
"He's going to be found not guilty," Donna Ingram said of her husband after his bail was set.
The latest round of arrests is not surprising, Howell resident Brian Kinsella, 48, said.
"The elected officials with fishy jobs, the corrupt public employees — all this stuff feeds on itself, and I don't think it ends. Not until we vote the bastards out who let it exist," Kinsella said.
"If you can't trust your government, everything falls apart," said Lenny Burke of Howell. "In recent weeks we've seen how people risked their careers and their reputations and the reputation of the government over small sums of money. Unbelievable."
Thousands of tapes
As was the case with the bribery sting unveiled last month, the FBI and U.S. Attorney's Office used a cooperating witness who posed as both a contractor and a loan shark. Conversations and transactions were captured on thousands of audio and videotape recordings.
Authorities did not name the witness in the complaints unsealed Thursday, but information in previous complaints filed in Operation Bid Rig has led to his identification as Robert "Duke" Steffer, of Steffer Demolition in Ocean Township.
Ingram, Appolonia and Greenwald all believed they were laundering the proceeds from Steffer's illegal loan-sharking activity, although the business was actually fictitious, according to authorities.
The complaint against Ingram said he was introduced to Steffer last summer by three unnamed people: a Monmouth County public official who previously laundered money for Steffer, an official working in the Monmouth County Division of Transportation, and an elected official from Neptune.
The transportation official even boasted to Steffer that he recently "gave" Ingram a multimillion-dollar county transportation contract.
Those who provided the introduction were not identified in the complaint, but officials charged last month in Operation Bid Rig include Neptune Deputy Mayor Richard Iadanza and county transportation operations manager Joseph "Joey Buses" McCurnin.
Thomas Broderick, the county's assistant highway supervisor, was charged with money-laundering last month. The complaint against him specifies that he was introduced to Steffer by an unnamed Keyport councilman who had previously laundered money for Steffer.
Former Keyport Councilman Robert Hyer was charged with extortion last month but not money-laundering. His lawyer could not be reached for comment.
McCurnin's lawyer, Peter O'Mara, said Thursday that he is not aware of any connection between his client and the complaint against Ingram. Attorneys for Iadanza and Broderick did not return calls for comment.
10% fee for laundering
Ingram met Steffer at a political event at a racetrack July 7. The next day, authorities said, Steffer visited Ingram's Neptune office and gave him $25,000 in cash in exchange for a $22,500 check from JBI — the $2,500 difference being Ingram's fee for the transaction.
During that meeting, Ingram and Steffer discussed compensating the Neptune official for helping to set up the laundering. Ingram said that he already "take(s) care" of the official by regularly giving him older JBI cars to re-sell and allowing him to keep the proceeds, according to the complaint.
The following week, Ingram took $50,000 in exchange for a $45,000 check, the complaint alleges. Then on Aug. 10, authorities said, Ingram accepted $25,000 and gave an undercover agent a $22,500 check.
During the latter transaction, the agent — posing as one of Steffer's employees — asked Ingram if he was being careful with the money.
"Yeah," Ingram replied. "What do you think, I'm a moron?"
Ingram then asked whether the agent could arrange to collect $10,000 that was owed to a friend of his.
At the same meeting, Ingram suggested selling JBI to Steffer, describing it as "the greatest washing machine in the world."
On Aug. 31, Ingram met with an undercover agent in Asbury Park and again discussed selling JBI to Steffer. Ingram also talked about how the county transportation official and the Neptune official secured contracts for JBI by tailoring the bid specifications, authorities said.
"There's one guy that can bid against me," Ingram reportedly told the agent. "Between me and you, it was suggested to him — "You don't bid on this contract.' "
Ingram went on to say, according to the complaint, that the Neptune official had told him: "(B)id whatever the - - - you want, there ain't gonna be nobody on the other side."
County officials said bidding on transportation contracts awarded to JBI was done competitively. They also said the company had done a good job.
More money changes hands
The complaint against Greenwald and Appolonia alleges the pair laundered more than $350,000 for Steffer between November and last month.
The transactions started in Appolonia's office at International Trucks of Central Jersey in Howell, according to the federal complaint.
On Nov. 5, authorities said, two undercover agents posing as Steffer's employees gave Appolonia $25,000 in cash that was represented to be loan-sharking proceeds; Appolonia gave the agents three checks totaling $22,500 in exchange, thereby making a 10 percent profit.
The complaint did not explain how Appolonia came to know the agents.
The following week, Appolonia introduced Greenwald to the agents at a restaurant in Howell. During the meeting, Greenwald allegedly accepted $20,000 in cash in exchange for an $18,000 check.
For subsequent transactions, authorities said Appolonia arranged to get a 3 percent commission while Greenwald received 7 percent.
On Jan. 13, Appolonia met with an undercover agent at a restaurant in Freehold where he conveyed that Greenwald wanted to launder $700,000 at the rate of $100,000 per week, according to the complaint.
Four subsequent transactions allegedly took place: $100,000 in cash was delivered during a meeting with Greenwald and Appolonia at a restaurant in Freehold on Jan. 17; $50,000 at a restaurant in Marlboro on Jan. 20; $100,000 at a restaurant in Howell on Feb. 4; and $100,000 at a restaurant in Freehold on Feb. 16.
Greenwald wrote checks and kept a total of $24,500 in "fees," while Appolonia received $10,500, according to the complaint.
Greenwald allegedly asked the agents on at least two occasions to write fraudulent invoices to justify the checks; the invoices would appear to represent the cost of construction supposedly performed by Steffer's business, authorities said.
Use of force acknowledged
During the Jan. 20 meeting, Greenwald also asked the agents to forcibly collect a debt from a builder who owed him approximately $10,000. It was not the same debt collection referred to in the Ingram complaint.
Greenwald noted that he had asked someone to use force before, authorities said, relating the baseball bat attack. He explained that the person he hired had been "some guy out of prison," adding that it "wasn't too professional."
He later said of the victim, "I felt bad for the guy."
That allegation, in fact, played a role in setting Greenwald's bail Thursday.
Prosecutors attempted to have Greenwald put up one of his eight properties for secured bail, arguing that the complaint against him suggests a history of violence.
"In fairness to Mr. Greenwald, he said he felt bad for the victim — but there is a history here," Assistant U.S. Attorney Mark McCarren said.
Greenwald's attorney, Paul Fishman of Newark, dismissed these claims.
"This defendant is not a danger to the community, nor is he a flight risk," Fishman said.
Citing Greenwald's former role as a public official, U.S. Magistrate Judge Madeline Cox Arleo set Greenwald's bail at $250,000.
Fishman and Greenwald declined to comment on the charges.
As Ingram was led into Arleo's courtroom at around 2:30 p.m., he was pale and visibly shaking, wearing handcuffs and a lime green polo shirt.
"Jim, take deep breaths," instructed Ingram's wife, Donna, who sat in the second row.
When asked why he was shaking, Mrs. Ingram said, "He's a diabetic, and they probably didn't give his medicine right."
In contrast, Appolonia, who was also in handcuffs, was calm and expressionless during the brief appearance.
Appolonia and Ingram waived their right to a hearing. Both men left the federal courthouse through a special access tunnel to avoid the cameras waiting for them in front of the building.
Ingram's attorney, Steven C. Rubin of Ocean Township, declined comment.
Staff writers Bob Jordan and Keith Brown contributed to this story. Kathy Matheson: (732) 643-4230 or kmatheson@app.com
