Resident charged with theft from foundation

COLTS NECK — On Dec. 22, Mark A. Vernaglia, 44 of Jockey Terrace North, was arrested and charged with second degree misconduct by a corporate official, second degree theft by deception, second degree misapplication of entrusted property, third degree issuing a false financial statement, fourth degree deceptive business practices and fourth degree forgery.

According to a press release, the above charges stemmed from an investigation by the Special Prosecutions Bureau of the Monmouth County Prosecutor’s Office.

An unrelated investigation conducted by the Colts Neck Police Department led to additional charges being filed for second degree theft by deception and second degree misapplication of entrusted property. According to the press release, these charges relate to an investigation of the Colts Neck Education Foundation, a private foundation that raises money to enhance the quality of education in Colts Neck public schools. Vernaglia had served as treasurer of the foundation for the past four years.

Officers from the prosecutor’s office and the Colts Neck Police Department arrested Vernaglia on all of the charges at his home.

In early December, the Monmouth County Prosecutor’s Office opened an investigation of Vernaglia and his role with Team Edge, L.L.C., an athletic training facility on Hope Road, Eatontown. Vernaglia served as an equity partner and the operations managing partner.

According to the press release, an audit revealed that Vernaglia had not only failed to make his initial $150,000 investment in the company, as required under the operating agreement, but that he had looted more than $460,000 of company funds. The investigation further revealed that Vernaglia had fraudulently opened a $1.5 million line of credit without authorization from his business partners, and that in doing so he had made misrepresentations regarding their financial condition to the bank that issued the line of credit. By the time this falsification was uncovered, Vernaglia had already withdrawn more than $92,000 from the line of credit for his own personal use, according to the prosecutor’s office.

In addition to the prosecutor’s office investigation, the Colts Neck police initiated another investigation into allegations that Vernaglia, the treasurer of the Colts Neck Education Foundation, had been stealing money from the foundation.

As treasurer, Vernaglia had sole control and signatory power over the finances of the foundation, according to the press release. An audit revealed that Vernaglia had stolen more than $147,000 of the foundation’s money and that the foundation’s checking account, which should have contained tens of thousands of dollars, had a balance of only $930.53.

The investigation revealed that Vernaglia had purchased personal items with the stolen corporate funds, including a 2006 Four Winns 31-foot powerboat worth approximately $170,000. The prosecutor’s office sought and obtained a seizure order for the boat, and has seized it pursuant to that order.

Monmouth County Prosecutor Luis A. Valentin said, “Mr. Vernaglia breached his fiduciary responsibilities to Team Edge, L.L.C., and the Colts Neck Education Foundation. Rooting out corporate misconduct remains a significant priority for this office.”

Valentin further credited the detectives of the Special Prosecutions Bureau and the Colts Neck Police Department with their investigation of both cases.

Following his arrest, Vernaglia appeared before state Superior Court Judge Paul F. Chaiet, sitting in Freehold, for an initial appearance. At that hearing, Vernaglia’s bail was set at $950,000. Conditions of the bail were that he surrender his passport and that he have no contact with his former business partners.

According to the press release, each second degree charge carries a maximum potential state prison sentence of 10 years imprisonment, with a presumption that a state prison sentence be imposed. The third degree charge carries a maximum state prison sentence of five years. The fourth degree charges carry a maximum state prison sentence of 18 months.