Monmouth County developer Anthony Spalliero was sentenced last week to a probationary term of three years, which includes one year of home confinement, for making bribe payments to then-Marlboro Mayor Matthew V. Scannapieco, and to conspiring with Scannapieco to conceal the bribe payments from the IRS and other government authorities, U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Anne E. Thompson also ordered Spalliero, 67, of Holmdel, to pay a $125,000 fine.
Spalliero pleaded guilty before Thompson to two counts of bribery and one count of tax fraud conspiracy on Dec. 5, 2007. At his plea hearing, Spalliero admitted that on multiple occasions between 2001 and 2003, he made cash payments to Scannapieco, who was then the mayor of Marlboro and a member of the Marlboro Planning Board.
Spalliero also admitted that he paid Scannapieco more than $100,000 in exchange for Scannapieco’s support for Spalliero’s projects, according to the U.S. Attorney.
One Spalliero project, for which he paid Scannapieco approximately $100,000, was the proposed redevelopment of the former site of the Marlboro Airport on Route 79.
Spalliero admitted that he paid Scannapieco $40,000 during one occasion in late 2001 or early 2002, and other cash payments totaling $60,000 to Scannapieco between 2002 and 2003. Spalliero admitted that he made those bribe payments to Scannapieco because he sought to have the airport closed and rezoned to allow for the construction of age-restricted residential units, and wanted Scannapieco to support that proposal.
Spalliero admitted that had Marlboro officials approved his proposal for the airport property, he would have made more than $2.5 million in profit from the development.
No homes were ever built on the airport property.
Spalliero also pleaded guilty to conspiring with Scannapieco to defraud the IRS.
Specifically, Spalliero admitted that he and Scannapieco agreed that Scannapieco would hide the bribe payments from the IRS and other government authorities.
Spalliero admitted that he routinely counseled Scannapieco on ways that Scannapieco should hide the bribe payments, such as telling Scannapieco not to buy lavish items, not to leave large tips in restaurants, and not to leave cash inside his house. Spalliero also admitted that he offered to make some of the bribe payments by writing checks to Scannapieco in the names of third parties.
Spalliero also admitted that he instructed Scannapieco on how to bury the cash underground without it rotting.
To further the conspiracy, Scannapieco filed false federal income tax returns and false financial disclosure statements with the state of New Jersey. In April 2005, Scannapieco pleaded guilty in federal court to taking bribes from Spalliero for, among other things, the Marlboro Airport redevelopment proposal, as well as federal income tax evasion, according to the U.S. Attorney.