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TRENTON
- Attorney General Paula T. Dow and Criminal
Justice Director Stephen J. Taylor announced
that a Union County construction contractor
whose companies had been barred from public
contracts has been indicted on numerous
criminal charges for allegedly using a stolen
identity, a fictitious company, and fraudulent
documents to successfully bid on public
projects, including a project to restore
the Clinton Town dam in Hunterdon County.
Joseph
Budis, 61, of New Providence, was charged
in an indictment that was returned late
Friday (Oct. 29) and filed in court today.
He was arrested in July, when Clinton Town
police officers, who were investigating
an incident in which a worker broke his
leg at the Clinton dam site, learned that
Budis, the project manager, was using the
alias Joe DeLia. They subsequently discovered
that two companies run by Budis, Murray
Hill Enterprise Inc. and Murray Hill Equipment
Inc., were prohibited from bidding on public
contracts by the New Jersey Department of
Labor and Workforce Development because
of prevailing wage violations and unpaid
fines.
Further
investigation by the State Police Official
Corruption Bureau, Clinton Town Police Department
and the Division of Criminal Justice Corruption
Bureau revealed that Budis allegedly stole
the Social Security number of an acquaintance
and used his identity to obtain a public
works contractor registration certificate
from the state for a sham company, listing
the man as president of MHHC Corporation.
Budis used the certificate to bid on the
$673,240 dam contract, which was awarded
to MHHC in April.
In
connection with the contract, Budis allegedly
filed bonds, a certificate of liability
insurance and notarizations, all of which
were fraudulent. He had no workers’
compensation insurance. Clinton Town was
forced to re-bid the state-funded project,
which resulted in additional costs.
“Time
after time, this contractor allegedly engaged
in fraud to obtain public construction contracts,
concealing that he was barred from such
contracts and did not have the required
insurance or bonds,” said Attorney
General Dow. “In doing so, he put
the workers he employed at risk, as well
as the public entities that hired his companies.”
The
investigation revealed that Budis allegedly
used the stolen identity and fictitious
corporation, MHHC, also known as Murray
Hill Historical Corporation, to obtain two
other public construction contracts.
In
late 2008, MHHC was awarded a $98,060 contract
to complete modifications to the Chatham
Township Senior Center. In that case, Budis
allegedly used a forged public works contractor
registration certificate, because the state
had not yet issued one for MHHC.
In
addition, in June 2009, MHHC was awarded
a $286,400 contract by the New Jersey Water
Supply Authority (NJWSA) to do construction
work on the Swan Creek Aqueduct Restoration
Project. Budis allegedly submitted fraudulent
bonds and a fraudulent certificate of liability
insurance in connection with that contract.
The NJWSA sustained losses when it was forced
to dismiss Budis prior to completion of
the project.
In
addition, the indictment alleges that Budis
submitted a fraudulent certificate of liability
insurance and forged notarizations in bidding
on a $222,330 bridge construction project
in Hope Township which was awarded to Murray
Hill Equipment Inc. in July 2006 by Warren
County.
“In
this era of diminished public resources,
taxpayers cannot afford to pay more for
government projects because of fraud on
the part of contractors,” said Director
Taylor. “We will remain vigilant to
root out the type of corporate corruption
alleged in this case.”
According
to Director Taylor, Budis, MHHC Corporation
and Murray Hill Equipment Inc. were charged
in a 27-count state grand jury indictment
obtained by the Division of Criminal Justice
Corruption Bureau. Budis faces multiple
counts of the following charges: making
false representations for a government contract
(2nd degree), theft by deception (2nd degree),
attempted theft by deception (2nd degree),
tampering with public records or information
(3rd degree), and forgery (4th degree).
He also faces one count each of identity
theft (2nd degree), misconduct by a corporate
official (2nd degree), and hindering apprehension
(3rd degree).
Budis
is charged with hindering his own apprehension
for allegedly providing the false identity
of Joe DeLia to a police officer investigating
the workplace injury at the Clinton dam
site.
Deputy
Attorney General Steven J. Zweig presented
the case to the grand jury for the Division
of Criminal Justice Corruption Bureau. The
investigation was conducted and coordinated
by Detective Mario E. Dirienzo of the State
Police Official Corruption Bureau, Detective
Sgt. Jay Hunter of the Clinton Town Police
Department, and Deputy Attorney General
Zweig.
Second-degree
crimes carry a maximum sentence of 10 years
in state prison and a $150,000 fine, while
third-degree crimes carry a maximum sentence
of five years in prison and a $15,000 fine.
Fourth-degree crimes carry a maximum sentence
of 18 months in prison and a $10,000 fine.
Budis could also be fined up to the total
value of the public contracts wrongfully
obtained, while the corporate defendants
could face a fine of up to three times that
amount.
The
indictment is merely an accusation and the
defendants are presumed innocent until proven
guilty.
The
indictment was handed up to Superior Court
Judge Gerald J. Council in Mercer County,
who assigned the case to Union County, where
Budis and the corporate defendants will
be ordered to appear in court at a later
date to answer the charges. Budis posted
$100,000 bail following his arrest in July
and remains free.
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