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Former Toms River Mayor Arrested On Tax Evasion Charges

Carmine Inteso arrested at JFK Airport

Update 4 p.m.: This article was updated with the results of a court appearance.

JERSEY SHORE, NJ -- A former Toms River mayor was arrested late Monday on tax evasion charges, according to the U.S. Attorney's Office.

Carmine Inteso, 46, appeared in federal court in Newark Tuesday afer being arrested at John F. Kennedy International Airport in New York City last night.

Inteso is charged with three counts of federal personal income tax evasion and three counts of failing to file federal personal income tax returns.

He appeared before U.S. Magistrate Judge Mark Falk this afternoon and was released on $200,000 bond. An arraignment has yet to be scheduled.

He was arrested after returning from Afghanistan, where he had been working as a contractor, according to the U.S. Attorney's Office, which alleges he took a job in Afghanistan after learning he was the target of the tax investigation.

Inteso served briefly as mayor in 2002 and then served as deputy mayor for the Dover Township Committee in 2003. He served as a councilman-at-large from 2004 to 2007.

A Republican, he ran for mayor in 2007 as an independent but lost to Tom Kelaher.

According to the federal court docket, a warrant had been issued for Inteso's arrest on Nov. 10, 2011 — the same day an indictment was handed up charging Inteso with tax evasion, a federal felony.

Federal investigators allege Inteso used a sham company as part of a tax evasion scheme.

"Defendent Inteso also controlled a company that had ceased operating by at least in or about 2007 and was instead used by defendent Inteso to facilitate his evasion of federal income taxes," according to the indictment.

An insurance broker from Towson, Maryland would make payments to the sham company, and those payments totalled $133,235 in 2006, $127,304 in 2007, and $31,253 in 2008, according to the indictment. The payments would be more than $10,000 in a month. Inteso would then use these funds for personal expenses. The IRS says Inteso owes taxes on this income for tax years 2006-2008.

The indictment states the unreported income and tax delinquency is allegedly:

  • 2006: $155,226 unreported income, $26,971 in taxes owed.
  • 2007: $135,271 in unreported income, $20,839 in taxes owed.
  • 2008: $62,504 in unreported income, $3,206 in taxes owed.

The indictment alleges the insurance broker received premiums, brokerage commissions and fees on a yearly basis for providing insurance brokerage for the Brick board of education and for Toms River.

Inteso accepted payments from the insurance broker, through the sham company, the indictment states:

"It was part of the tax evasion scheme that defendant Inteso received compensation from the insurance broker through payments made by the insurance broker's companies to the sham company as directed by defendant Inteso, in order to concel such income and purposely evade the assessment by the Internal Revenue Service of federal income tax owing on such compensation."

Paul Brush, mayor through 2007, said Inteso was a nemesis of his.

"I was mayor for four years with Carmine Inteso. He was one of my chief antagonists," Brush said. As a Democrat mayor and a Republican council, "It wasn’t easy serving with a council that blamed me for everything. Carmine was one of my nemeses."

"All that said I’m not happy to see it. It's another blow to public officials," Brush said. "I'm very very disappointed."

Nels Luthman, president of the Toms River Democratic Club and a former member of the Planning Board, said Inteso opposed changing the government from a committee to a council in 2003.

"He didn't think there would be any interest. That encouraged us even more to get a petition going," Luthman said.

Kelaher, the current mayor, said he didn't know Inteso that well when Inteso served as mayor because Kelaher was the Ocean County prosecutor.

"I hardly knew the guy. I had no contact with him and I don't know anything about the charges. I didn't know him that well, even when we were running for mayor," he said.

Judge Joel Pisano is assigned to hear the case.

On June 25, Pisano ordered the case unsealed. With six months passing since Inteso's arrest, an arraignment originally scheduled for Dec. 2011 had been postponed. Inteso was arrested upon his return to the United States from working in Afghanistan, according to the U.S. Attorney's office.

Inteso could face five years in prison and a $250,000 fine for each of the three tax evasion counts. Each of the three failure to file counts carries a maximum potential penalty of one year in prison and a $100,000 fine.

U.S. Attorney Paul Fishman credited a number of agencies in the investigation: "special agents of IRS – Criminal Investigation, under the direction of John R. Tafur, Acting Special Agent in Charge, Newark Field Office – and the FBI, under the direction of Special Agent in Charge Michael B. Ward, with the investigation leading to the indictment. The Office of International Affairs in the Justice Department’s Criminal Division and the Diplomatic Security Service’s Regional Security Office in Kabul, Afghanistan provided invaluable assistance."

RPtoTR July 11, 2012 at 07:37 PM
TRwatch I do not have a dog in this fight, do not know Mr Brush, but I am a multi property owner in Toms River and my taxes did not go up %50, I would have noticed.
brokepublicemployee July 11, 2012 at 09:41 PM
Someone please explain why the Insurance company and or Broker would make these "commision" payments to Intenso? Did Intenso have the authority to make certain this Insurance co. would continue to do business for the township of Toms River? Could Intenso have allowed "overbilling" by the Insurance co. to the township? Were the payments to Intenso supposed to be funneled to someone else?. maybe with Intenso recieving a small kickback? Why were the payments made? There is more to this than just Tax Evasion. people just dont give money away.
Scott July 11, 2012 at 10:00 PM
Ritacco should be executed for what he has done. I know people who work for the township and i know first hand about all the work they did on his home on the tax payers dime. In the last 7 years i have seen my property taxes go from $2500 a year to nearly $4800 a year. And guess what ,,,, my pay has remained the same. Shame on all the crooks who steal our hard earned money,
Scott July 11, 2012 at 10:15 PM
Ritacco s daughter working for the ocean county prosecutors office. Are you kidding me. I wonder if she prosecuted her daddy. What a joke.
H.HEMMES July 11, 2012 at 10:27 PM
I agree that the BOE who knew or should have known all should be gone. What about all of the appointed jobs that Ritacco gave and/or created for his relatives and pals?
H.HEMMES July 11, 2012 at 10:40 PM
Tired of the status quo you are right on the mark!!!!!!! The people of Toms River must rid themselves and our Town of the "black cloud" that Ritacco and all connected to him have given to Toms River.
Typical Obama Voter July 11, 2012 at 11:12 PM
Here is old article on NJ politics with Brush name in it. I can provide the NY Times link. In other projects, such as the JSM at Hickory project in Dover Township, Mr. Lynch does not have an ownership stake, but he and Mr. Morris together gave $65,000 in donations to mayoral candidate Paul Brush in early 2003. Once he was elected, Mr. Brush embraced the plan and appointed one of Mr. Lynch's allies to the local planning board. The project's newfound support on the local level helped JSM at Hickory win two state zoning changes, even though hundreds of community residents had rallied against the development. Mr. Lynch said that the donations were intended solely to strengthen the Democratic Party, and had nothing to do with the development. "I don't even know where that project is," Mr. Lynch said during a recent interview. Mayor Brush said that his support for the proposal was based on its own merits. State officials said JSM at Hickory has been moving ahead because it will help the town meet its obligation to build affordable housing. But some local residents say they feel as if local officials sacrificed their quality of life for campaign contributions. "It was stopped until they came through with all the money," said Frank Kenny, who organized community opposition to the plan. "Then it was like we didn't even exist." 'Wheeling' Across New Jersey
Typical Obama Voter July 11, 2012 at 11:16 PM
"When it comes to the pay-to-pave system of development in New Jersey, John Lynch is king," said Jeff Tittel, director of the New Jersey Sierra Club, which has opposed Mr. Lynch and his clients on dozens of development projects around New Jersey. "In parts of the state, you can't build unless you hire one of the lawyers or engineers or construction companies he's aligned with because you won't get the government approvals." A Languishing Project No More One example of Mr. Lynch's converging interests is a strip mall in Brick, called The Power Center. It was originally proposed by Mr. Morris, a developer who frequently hosts Mr. Lynch on his yacht and jet and has given hundreds of thousands of dollars to his political committees. In 2003, Mr. Lynch was brought in as partner in the languishing project and soon his political action committee began donating tens of thousands of dollars to the mayor of Brick and other local Democrats. The project, JSM at Brick, quickly won approval from local officials, and the town's mayor, Joseph Scarpelli, was hired as a consultant by an engineering firm working on the project. Mr. Lynch said that their donations were a mere coincidence, unrelated to the development. Mr. Morris has declined to be interviewed over the last month. Mr. Scarpelli has explained that he did not know Mr. Lynch had a stake in the project and later quit the consulting position, saying he wanted to avoid a conflict of interest.
Typical Obama Voter July 11, 2012 at 11:19 PM
http://www.nytimes.com/2006/01/01/nyregion/01lynch.html?pagewanted=print Here is the NY Times link to Brush article. Hey Paul, what was up with that project and how are your democrat pals Lynch and Scarpelli doing these days? Enlighten us poor ignorant tax payers. Thank you.
Typical Obama Voter July 11, 2012 at 11:25 PM
Paul Brush, Jim Mcgreevey and Joe Scarpelli, 3 democrt Mayors that all tripled their own salaries as soon as they got enough power. They are all part time jobs. Read the job titles and requirements.
Donna Griffin July 12, 2012 at 02:30 AM
I thought he was an Independent?!?!
Donna Griffin July 12, 2012 at 02:36 AM
I never favored term limits in politics because I had faith that the American voter would have the sense not to allow candidates to make careers out of public service. Locally, these men just seem to get shuffled around from one position to another....be it MUA, or BOE, or Town Committee....taking with them the long-term benefits of each position. I admittedly stand corrected....the American voter isn't all that intelligent. You need look no further than Charles Rangel & the lifers sitting in office here in town. Government service was never intended to be a career. These public officials were intended to serve their constituents, then return to private life. Power corrupts.
Sence not July 12, 2012 at 02:39 AM
Wow you said a mouthful.Of course this goes far deeper them Inteso not reporting income. The income in question here is from Gartlands company via Ritaccos hand. That income was illegal and bloated. Its all part of Ratacco singing away. Wonder if Inteso had to give back some of the money to Ratacoo. This is all from the Gartland.Ritaco deal.
Samantha July 12, 2012 at 02:44 AM
Yes sir, and our Mayor did not know Inteso? Did he also not know the Toms River club members he hired to be deptartmant heads? Too bad the local Dem org is in such a mess. They could have put up a few candidates this year and maybe even had a shot at the two Wards up in November.
Donna Griffin July 12, 2012 at 02:51 AM
It's called "consequence." There are plenty of smart people out there who don't break the law and serve the role of superintendent well. Ritacco needs to do time and provide restitution to the taxpayer.
Typical Obama Voter July 12, 2012 at 02:58 AM
Here is the NY Times link to Brush article. http://www.nytimes.com/2006/01/01/nyregion/01lynch.html?pagewanted=print Hey Paul, what was up with that project and how are your democrat pals Lynch and Scarpelli doing these days? Enlighten us poor ignorant tax payers. Thank you.
Hut to Pene July 12, 2012 at 03:01 AM
Brush should mind himself. He got his pants beat in the last election. His kids got hired during the Ritacco era and work in the school system and his leader Lutman gets free lifetime heath benefits forever on the taxpayers dime.
G Gordon July 12, 2012 at 03:19 AM
The insurance company Inteso dealt with was Gartlands insurance company Fed Hill of Towson MD. Yea the same one Ritaco did his dealing with that started this whole mess. Ya think Micky R ratted him out?
patg July 12, 2012 at 03:20 AM
you people are out of your minds
antonio movado July 12, 2012 at 03:52 AM
aqualung you are like kryptonite to comedy. can only imagine how many times you patted yourself on the back thinking youre witty when you are the only one getting your joke.
Barry Fleckmann July 13, 2012 at 05:11 PM
The President of the United States lives in The White House, The Mayor of New York City in Gracie Mansion, well the Mayor of Toms River SHOULD list his official residence as, Trenton State Prison.
Donna Griffin July 14, 2012 at 12:15 PM
Barry Fleckmann -- The "mayor of Toms River should list his official residence as Trenton State Prison"?!?! You may want to retract that comment.
Miriam July 14, 2012 at 09:20 PM
And more will be getting exposed. Loads of evidence/whistleblowers came forward. Lawless America.com Look for Lawless America on Facebook to see what's in store for the corrupt/oppressors! Lawless America The Movie! New Jersey definitely has a spot!
Miriam July 14, 2012 at 09:28 PM
Times up! A lot of these politicians and their friends have used this forum to campaign,defend their wrong actions,and bash constituents. It's a known fact,but we're not as ignorant as you think. Lawless America.com Sinnce pleading,and voting for justice,better state,county doesn't work. Accountability will. Enjoy it while you can boys and girls! Enjoy it while it
Miriam July 14, 2012 at 09:38 PM
I don't know aqualung,but it appears he's touching a nerve. You want votes? But do nothing! You want votes,then insult constituents..Your lofty characters has become a stumbling block that will ensnare you. Blow this post off,mock it,but you will remember it.That will be the day we can be found celebrating! Counties are under investigation know it alls. Your mockery only confirms that which is corrupted.
Miriam July 14, 2012 at 09:58 PM
Who wants to take avery special trip to Washington with us?! Go to Lawless America.com on bing,or internet explorer only. Serious inquires only! You must not tolerate corruption, have some evidence, must accept a screening so we know who you say you are,so you can join us with the understanding this is not a bout a rally or protest. This trip entails so much more. above and beyond what anyone can imagine. Let's just say some people want the truth, they want your stories and evidence! Those who are running or plan to run for office are disqualified from this trip, unless you plan to be a whistleblower. this is a big opportunity. contact bill windsor on facebook. Be prepared to be screened before plan of action is revealed
So Much to Say July 14, 2012 at 10:13 PM
YAWNNNNNNNNNN
Joe P July 15, 2012 at 11:45 AM
In my experience, a big part of the problem is voter apathy. People who moved here from Northern NJ & NY, many of whom commute to jobs there, are not inclined to take an interest in local politics, thus maintaining the "status quo".
Barry Black July 15, 2012 at 03:18 PM
Why is it always Toms River? Must be the water!
knarfie July 16, 2012 at 03:06 PM
I guess you have no contact with news about politicos from Brick. Corruption going back to the 60s through Scarpelli and "Legal" activities of nest feathering to now.

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