Ex-mayor admits to using $90K in state money for personal salary hikes
Updated Posted
The former mayor and councilman of Lawrence Township has admitted to stealing thousands of dollars for unapproved salary increases while serving as the executive director of Asbury Park Housing Authority.
Mark Holmes, 56, pleaded guilty to second-degree theft by unlawful taking and faces five years in state prison when he appears for sentencing before Monmouth County Superior Court Judge John Tassini on April 6, Monmouth County Prosecutor Christopher Gramiccioni announced in a press release Wednesday.
Holmes was indicted in December 2015 on 38 counts of official misconduct and other offenses. He was arrested at his Lawrence home in 2013 but was released from jail after posting $70,000 bail.
Holmes admitted Tuesday to stealing more than $90,000 by using state grant money intended to help low-income residents of Asbury Park to give himself a salary increase that wasn't approved by the agency's board between 2008 and 2011.
Before becoming the executive director, Holmes served as the agency's deputy director. Prior to taking over as executive director, Holmes applied for -- and received -- a $99,897 grant from the state Department of Labor and Workforce Development. The money was intended to be spent on training in computers and other skills for residents who qualified for public housing in Asbury Park.
An investigation by the Monmouth County Prosecutor's Office's financial crimes and public corruption bureau found that between November 2008 and August 2009 Holmes transferred $75,721 of the grant into the general operating fund for the housing authority and then moved the money into his own accounts, authorities said.
Holmes created the APHA Community Development Corporation, where he funneled $58,000 to give himself a $50,000 salary increase without board approval, Gramiccioni said.
The prosecutor's office statement said the investigation found that Holmes opened credit cards in the name of the APHA and the APHA Community Development Corporation and used the cards for personal expenses. He had the bills go directly to his home and accrued more than $30,000 in debt on the cards.
Holmes, who went on more than 30 business trips across the country, also received $22,000 in per diem payments from the authority for meals while on business trips. Even though he had money for the meals, Holmes filed them in his expense reports and then collected the money, Gramiccioni said.
"Holmes also used APHA funds for personal expenditures while on these trips, including spa treatments, hotel in-room movies, and gentlemen's clubs," Gramiccioni said in the press release. "On at least three occasions, he used APHA funds to pay for stretch limousine service to transport him and his family to and from the airport."
Holmes used more than $13,000 of APHA funds for unauthorized meal expenses in the Asbury Park and Lawrenceville areas, according to Gramiccioni.
Holmes' attorney, Mark Davis, called those accusations "unfounded and unproven."
He said his client admitted to padding his salary but that "all those other things about trips and expenses ... those are still untrue allegations."
As part of a plea agreement, Holmes was ordered to pay $35,000 in restitution and must surrender his pension. He will also not be allowed to serve any public jobs in New Jersey.
"Everyone, including public officials, must be held accountable when they break the law. Public service is a privilege and requires a level of trust by our constituents -- a trust that Mr. Holmes exploited," Gramiccioni said.
Holmes was on the Lawrence zoning board for three years in the 1990s and was elected to council in 1997.
He was the executive director of the East Orange Housing Authority until 2007, when he resigned after John Hansbury, the Mercer County Republican chairman at the time, filed a complaint with the federal government saying Holmes had violated the Hatch Act. The federal law prohibits state, county or municipal employees who are involved with federal loans or grants from running as a partisan candidate.
In 2004 the Lawrence council, which selects the mayor from among its members, gave Holmes the job, making him the township's first black mayor.
He served as mayor again in 2008 but quit the council in December of that year, saying his new position as executive director of the Asbury Park Housing Authority had created a conflict. Taking the job meant he would not be able to run for re-election to council, he said at the time.
Alex Napoliello may be reached at anapoliello@njadvancemedia.com. Follow him on Twitter @alexnapoNJ. Find NJ.com on Facebook.
Posts
No comments:
Post a Comment