Corruption Exposed!

Crimes take ex-mayor off state payroll

Codey to fire him from board; Scannapieco will fight pay loss

Asbury Park Press
April 14, 2005
James A. Quirk and Kathy Matheson

MARLBORO — Acting Gov. Codey has cut off the salary paid to former Mayor Matthew V. Scannapieco by the state Victims of Crime Compensation Board, where he works as a commissioner, and plans to fire him Friday.

Wednesday's decision came a day after Scannapieco pleaded guilty in federal court to accepting $245,000 in bribes while mayor and failing to report the illegal income to the Internal Revenue Service.

Codey notified Scannapieco, 60, that he was suspended without pay from his $107,000 position as a commissioner on the five-member board pending removal, which will become effective Friday unless Scannapieco challenges it.

According to board Chairman Richard D. Pompelio, Scannapieco stepped down from his daily duties at the board's Newark office on March 31 but remains on the payroll until May 31 because he is taking vacation and unused sick time.

"I hereby notify you that your guilty plea to the federal offenses constitutes good cause for removing you from your state office," Codey stated in a letter to Scannapieco. "It is beyond doubt that your admission that you accepted bribes and evaded taxes involves crimes of dishonesty warranting your removal from office."

Mitchell J. Ansell, an attorney representing Scannapieco, said his client will ask for a hearing to appeal Codey's actions.

"Matt has already resigned from the board," Ansell said. "These monies due to him . . . are monies accrued as vacation days and sick days throughout his 9 1/4-year tenure as a commissioner of the board. These are days rightfully owed to him. We're not asking that he be paid a salary from now until May 31 — these are days and monies that are his. He's earned them."

In U.S. District Court Tuesday, Scannapieco pleaded guilty to one charge each of accepting corrupt payments — $245,000 in cash from 1997 to 2003 — and tax evasion. Scannapieco admitted that while serving both as mayor and a member of the Planning Board, he accepted money from a developer and his associates in exchange for his votes or support on six separate projects.

Scannapieco faces a combined maximum of 15 years in prison and $350,000 in fines. He is free on $100,000 bail and is awaiting sentencing July 15.

The developer was not named in court. However, Scannapieco provided specific locations for each development for which he said he accepted a bribe. Township records indicate the locations mentioned involved developments proposed by Anthony Spalliero, 62, of Marlboro. Spalliero has declined to comment.

Got state post in 1996

Scannapieco, a former auditor for Public Service Electric and Gas Co., was appointed to the crime victims board in 1996 by Republican Gov. Christie Whitman and reappointed in 2000 by then-Gov. James E. McGreevey, a Democrat.

Sean Darcy, a spokesman for the governor, said the state pension board will have to decide what will become of Scannapieco's retirement payments from his municipal and state positions.

Scannapieco, mayor from 1992 until 2003 after a term as a councilman, has been in the state pension system for 19 years. If Scannapieco retired tomorrow, he could bring home approximately $38,000 a year, depending on the retirement options he chooses.

"Governor Codey has been at the forefront of ethics reform in the state," Darcy said. "With the support of advocates throughout the Legislature, like Senator (Ellen) Karcher (D-Monmouth), we will fight to restore the public's faith in government throughout New Jersey."

But for Marlboro Mayor Robert Kleinberg, who said he has the unenviable task of correcting Scannapieco's many mistakes, Codey's actions come as too little, too late.

"I wonder what took the governor so long," Kleinberg, a Republican, said. "These allegations have been in the newspaper for at least two years. It's laughable that a state official has to be (on the) front page of a major newspaper saying "I took almost a quarter of a million in bribes' before the government acts. This is why we have the problems we do in New Jersey."

"I look at every development in town (and think) . . . was somebody bullied? Was somebody threatened? Was somebody paid off?" said Karcher, a former Marlboro Township Council president. "I will never look at my town the same way again."

She said she wasn't surprised by Scannapieco's guilty plea. "I had my suspicions," she added. But she said she found it heartbreaking nonetheless.

"Two hundred and forty-five thousand dollars?" Karcher said. "That doesn't even begin to scratch the surface of what we're paying as a community for this."

Tainted approvals

Authorities provided only locations, not specific names, for the projects for which Scannapieco took the bribes.

They are believed by town officials to include five housing developments: Woodcliff and Sterling Woods, off Woodcliff Boulevard; Georgetown Manor and Pleasant Valley Estates, off Pleasant Valley Road; and Lexington Estates, off Vanderburg Road. Another payment was for an unidentified major store at Routes 9 and 520, according to township officials.

Scannapieco also admitted to accepting $100,000 in exchange for supporting rezoning that would have let the former Marlboro Airport property be developed for senior-citizen housing.

Negotiations on the proposed rezoning of the 151-acre airport property for age-restricted housing have been under investigation by the FBI since they began. The zoning was never implemented.

During Scannapieco's tenure, Marlboro's population rose from 27,648 to 36,398, second only to Howell in growth among Monmouth County municipalities.

Karcher noted that each new house strains township services — police, firefighting, schools and public works. And today, people complain about traffic-choked roads, overcrowded schools and a diminishing quality of life.

It's not likely to get better, said James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.

The development of the past decade has "really set the stage for what the future's going to be like," Hughes said.

"What you see is what you're going to have," he said. "There's no way of going back and reacquiring open space once it's been developed."

Karcher conceded that "a certain amount of development was inevitable." But "planning would have been so much smarter" if more people had asked questions and stood up against development they felt was misguided, she said.

Scannapieco wielded more power than he should have, Karcher said, describing her former council colleagues as "cowed in some way" by the powerful mayor.

As mayor, Scannapieco not only sat on the Marlboro Planning Board but also appointed six of its nine members.
A strong-mayor form of government isn't inherently bad, said Ingrid Reed, director of the New Jersey Project at Rutgers University's Eagleton Institute of Politics.

The mayor should help the planning board ensure that each application fits in with the overall vision for the community, Reed said.

Moreover, she said, the quality of the professional staff hired to evaluate applications for planning board members is just as important. They are the ones conveying to board members — who are seldom professional planners — the implications of each project.

"A form of government does not guarantee honesty or accountability," she said.


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