FBI subpoenas records from Brick town hall

Federal grant records, DCA memos, truck purchases sought

BY COLLEEN LUTOLF

Staff Writer

The FBI has subpoenaed records from Brick three times in the past two weeks, township officials confirmed earlier this week.

Two subpoenas were received by Municipal Clerk Virginia Lampman July 6, ordering officials to release records related to federal funds Brick received between Jan. 1, 1998, and Dec. 31, 2005, Lampman said.

The township has received less than $4 million in federal grants during the dates specified in the subpoena, the township's Chief Financial Officer Scott Pezarras said Monday.

"The CDBG [Community Development Block Grant] funding alone is probably about $2,100,000," he said.

The second subpoena sought any correspondence, memoranda and disclosure statements made to the state Department of Community Affairs pertaining to the township's former Public Works Director John H. Nydam, between Jan. 1 1998, through Dec. 31, 2002, Lampman said.

"Basically they requested the entire personnel file from Jack Nydam and any correspondence between the DCA and the township regarding Jack Nydam," Pezarras said. "The only thing I can think of, is they just want to look through his file to see if there's anything in there.

"The only reason the DCA would be involved would be applications for permits for work done at the yard," he said. "They also handle disciplinary action. I can't speculate. Whatever they ask for, we're going to provide them."

One week before, on June 30, the FBI ordered township officials to release any correspondences or miscellaneous documents relating to the purchase of trucks, vehicles, equipment and parts from International Trucks of Central Jersey, or its affiliates Air Brake & Equipment and Air Brake Exchange, between Jan. 1, 1999, to the present, Lampman said.

"I really have no idea what the federal authorities are looking for," Mayor Joseph C. Scarpelli said last week.

The documents ordered June 30 are the same documents the Ocean County Prosecutor's Office obtained last year, Scarpelli said.

"Brick already shared that information with the Ocean County Prosecutor's Office," he said.

The township paid International Trucks approximately $1.9 million between 1998 and April 2005; and $84,850 to Air Brake & Equipment during that time, former Business Administrator Scott MacFadden said last April.

Since April 2005, the township has paid $432,603 to International Trucks for three recycling vehicles, a bid the Township Council awarded Oct. 25, 2005, the township's assistant purchasing agent, Garry Houman, said Monday.

Since January 2006, the township has paid International Trucks $1,806,302, Pezarras said. That figure includes the $432,603 for the recycling trucks because although the bid was awarded last year and those funds were encumbered, the truck dealer was not paid until 2006.

The Howell-based trucking company was formerly co-owned by Stephen Appolonia, who was arrested by the FBI in March, 2005, for allegedly laundering over $350,000.

The Route 9 truck dealership is now owned by Appolonia's brother, Michael.

Appolonia's arrest came two weeks after the FBI, the U.S. Attorney General's Office and the Monmouth County Prosecutor's Office arrested 11 Monmouth County officials in a federal corruption probe, "Operation Bid Rig."

One month later, in April, 2005, officials at the Ocean County Prosecutors office confirmed the FBI had joined the county agency in an investigation into "Brick Township matters."

At the time, officials said the FBI was looking into links between Nydam, who pleaded guilty to theft, official misconduct and witness tampering in April, and International Trucks.

Nydam's sentencing is scheduled for Sept. 15. His ongoing cooperation with state and federal authorities is a term of his plea deal.

"Evidently, it transcends just Brick," Scarpelli said last week about the federal probe. "Maybe it's part of a larger probe they're in the middle of to see if there's a pattern or certain link somewhere."

An Ocean County grand jury had already indicted Jack Nydam on charges of official misconduct, four counts of compensation for past official behavior, and witness tampering in Feb. 2004.

Nydam's troubles with the law in his capacity as DPW director began after he was placed on administrative leave in Aug. 2003, after allegedly directing township employees to erect a board-on-board fence between his property and a park next to his Brick Township home.

Federal authorities have described Nydam's cooperation in the investigation as "substantial," Ocean County Assistant Prosecutor William Porter said after Nydam pleaded guilty April 3 of this year.

The scandal surrounding the trucking company would not deter Brick from doing business with the company, Pezarras said.

"We've done nothing wrong on our end," Pezarras said. "We did everything we were supposed to do. We put a bid out there and if they're the low bidder, they get the bid. If they're not, whoever the low bidder is gets the bid."