Indictment hits builders with corruption charges
REGIONAL INTEREST

A federal investigation into corrupt activities has ensnared three area residents who have developed residential and commercial projects in Marlboro for years.

On Dec. 6, U.S. Attorney Christopher J. Christie announced the indictment of brothers Steven Meiterman, 44, of Marlboro, and Bernard Meiterman, 42, of Manalapan, and their business partner Edward Kay, 38, of Marlboro.

The three men were released after an initial appearance in federal court, Newark, that same day.

According to a press release from the U.S. Attorney’s Office, the indictment accuses them, among other things, of bribing a sewer authority official to gain favor in getting sewerage service to their projects in Marlboro.

Steven Meiterman and Bernard Meiterman were also accused of obstructing the grand jury investigation into their dealings with the executive director of the Western Monmouth Utilities Authority (WMUA), which provides sewerage service in Marlboro.

The federal indictment does not name the WMUA executive director, but does give a time frame of when that person, who is referred to in the indictment as co-schemer No. 1, was the executive director of the authority.

The WMUA executive director during the time frame provided in the Meiterman/Kay indictment (January 2002 through September 2006) was Frank Abate, who himself was indicted by the federal government two weeks ago on charges that now clearly establish a link of alleged corruption between him and the Meitermans.

Steven Meiterman is further charged separately with bribing a member of the Marlboro Planning Board with $4,000 in cash to fund trips to Disney World.

Bernard Meiterman is an attorney and acted as general counsel to the Meiterman companies.

The indictment states that Kay is the Meitermans’ business partner, an investor and bookkeeper in some of their real estate ventures.

Kay is charged with the Meitermans in Count One through Count Eight, each of which charges them with mail fraud in a scheme to defraud the public of Abate’s honest services as the WMUA executive director.

All three men were arrested at their homes on Dec. 6.

According to the press release, a federal judge set bail at $250,000 for Steven Meiterman and $200,000 for the other two defendants. Their bail must be secured by equity in their respective homes.

“The corruption that has existed in Monmouth County, and Marlboro in particular, is stunning and wide in scope,” Christie said. “We and the FBI will continue our investigations and prosecutions with vigor and resolve.”

The 13-count indictment alleges that the defendants attempted to coax, influence and reward Abate by giving him or arranging for free and discounted improvements to two additions to his home, property surveys and architectural drawings. The indictment also alleges that the defendants intentionally concealed the corrupt benefits.

In the case of the Meiterman brothers, the indictment alleges that they attempted to obstruct the grand jury once they became aware of the investigation, according to the U.S. Attorney. As part of those efforts, they are accused of meeting with and coaching an architect who had received grand jury subpoenas on how to testify falsely before the grand jury.

Counts One through Eight, charging all three defendants with mail fraud (i.e. mailing letters, bills and checks related to the alleged corrupt activities), each carry a maximum statutory prison sentence of 20 years and a fine of $250,000.

Counts Nine and 10 charge all three defendants with bribing a public official contrary to New Jersey state law (a federal offense because the U.S. mail was used). Each of those two counts carries a maximum penalty of five years in prison and a $250,000 fine, according to the press release.

Count 11, charging the Meitermans with attempting to obstruct a grand jury investigation, carries a maximum penalty of 20 years in prison and a $250,000 fine.

Each of Counts 12 and 13, charging Steven Meiterman with giving corrupt payments to a Marlboro Planning Board member, carries a maximum penalty of 10 years in prison and a $250,000 fine.

According to the indictment, between 2002 and 2005, the WMUA executive director (Abate) was planning additions to his home. During this period, the Meitermans and Kay had several housing projects for which they were seeking to obtain sewer extensions from the WMUA.

According to the indictment, the unnamed architect referred to in the indictment had worked on several development projects for the Meitermans and Kay. A unnamed mason referred to in the indictment had provided masonry for Meiterman projects in Marlboro.

In about May 2002, Steven Meiterman told the architect that Abate wanted to build an addition to his Marlboro home and that the defendants would pay the architect to prepare architectural drawings. The architect billed $2,500 for the work and, according to the indictment, the defendants paid the architect that amount by check, signed by Kay.

In 2005 and 2006, while the Meitermans and Kay had several development projects pending with approvals needed from the WMUA – and had applications already granted – the executive director solicited the architect to do drawings for a second home addition, according to the indictment.

The architect initially refused to do the project. Steven Meiterman then allegedly contacted the architect and reminded him that they gave him significant business and advised him to do the work for Abate. The architect complied, according to the indictment.

The architect’s bill was $2,500, but the defendants instructed the architect to bill Abate only $500. The defendants paid the balance of $1,800, according to the indictment.

Similarly, according to the indictment, the mason – who was hired by the defendants to do work on a commercial development in Marlboro – was told by Steven Meiterman that Abate wanted concrete and block work done for the first home addition.

While the mason told Kay the job would cost $3,600, Kay allegedly instructed the mason to bill Abate only $1,900 – to give the impression that Abate had paid in full for the work. Subsequently, according to the indictment, the defendants paid the mason the $1,700 balance.

According to the U.S. Attorney, several acts of concealment of these arrangements occurred, including deleting language from billing records that would reveal the WMUA executive director as the true recipient of the benefits; instructing individuals to bill the executive director partial amounts for work done to make it appear that he was paying in full for the work; and attempting to cover-up the corrupt activities after the investigation became known to the defendants and grand jury subpoenas had been issued.

Steven Meiterman is further accused of bribing a Marlboro Planning Board member while the Meitermans had several projects before the board. Steven Meiterman, in an attempt to influence the board member’s votes, allegedly paid the board member $4,000 in cash – $2,000 prior to the board member’s Disney World vacation in 2002 and $2,000 in cash in a covered plastic foam cup prior to the board member’s 2003 Disney World trip, according to the indictment.