NEWARK – A co-owner of local truck sales company pleaded guilty on Sept. 13 to bribing a public official and also to conspiring to launder money purported to be loansharking and illegal sports gambling proceeds.
Stephen Appolonia, 53, of Colts Neck, pleaded guilty before U.S. District Judge William J. Martini to one count of making a corrupt payment to a Monmouth public official in exchange for his official action and one count of conspiring to launder money. Judge Martini scheduled Appolonia’s sentencing for Dec. 6.
At his plea hearing, Appolonia admitted providing $2,000 in cash to former Middletown Committeeman Raymond J. O’Grady, who was the director of the Monmouth County Central Motor Pool, in a scheme to have the county pay approximately $6,000 for repairs to the transmission of a vehicle that the county already had traded back to Appolonia’s business, International Trucks of Central Jersey, which has offices in Howell and Hillside.
Appolonia also admitted that in November 2004, he introduced former Far Hills Councilman Thomas A. Greenwald, 53, currently of Chatham, to an individual who held himself out as a demolition contractor who was also involved in money laundering and other illegal activities.
Furthermore, Appolonia informed Greenwald that the individual had two associates that were looking to launder the proceeds of loansharking and illegal sports gambling. Appolonia admitted he told Greenwald that substantial amounts of cash could be made by laundering these funds.
Appolonia stated that he and Greenwald agreed that they would engage in the money laundering transactions with the two associates, who they later learned were undercover FBI agents.
In open court, Appolonia admitted that on Nov. 11, 2004, at a restaurant in Howell, he was present when Greenwald provided a check to the undercover FBI agents in the amount of $18,000 in exchange for $20,000 in cash. Shortly thereafter, Appolonia and Greenwald entered into an agreement whereby they would split a 10 percent commission on all money laundering deals that they engaged in with the undercover agent.
Before Martini, Appolonia admitted that in December 2004, he agreed to assist Greenwald launder approximately $700,000 over the next several months.
As a result, on four occasions over the next two months, Greenwald took approximately $350,000 in cash from the undercover agents in return for checks totaling approximately $325,500. Appolonia admitted that his share was approximately $10,500.
The charge of bribing a pubic official carries a maximum penalty of 10 years in prison and a $250,000 fine. The charge of conspiracy to launder money believed to be the proceeds of loansharking carries a maximum penalty of 20 years in prison and a $250,000 fine.
O’Grady was convicted at trial in June 2006 for accepting corrupt payments from undercover FBI agents, as well as for his involvement in a scheme to accept a corrupt payment from Stephen Appolonia in relation to the repair of a transmission on a county truck. O’Grady was sentenced to 43 months in prison by Martini on Oct. 11, 2006.
On May 10, 2007, Greenwald pleaded guilty to conspiring to launder approximately $700,000 in what he believed to be the proceeds of loansharking and illegal gambling as part of a scheme to defraud the IRS of more than $200,000 he owed in personal income taxes. Greenwald is scheduled to be sentenced on Oct. 25.
Also charged as part of the investigation was Matthew Appolonia, of Berkeley Heights, who is Stephen Appolonia’s brother and the co-owner of International Trucks of Central Jersey.
He was indicted July 28, 2006, on seven counts of offering and giving corrupt payments, seven counts of scheming to defraud local governments of honest services and three counts of scheming to defraud Neptune Township of money and property and a vehicle services company of honest services.
Matthew Appolonia pleaded guilty on Aug. 22 to one count of scheming to defraud a local government of honest services.