The head of an embattled Bay Shore garbage carter that lost its largest town contract after two employees were accused of stealing recyclables has been arrested for allegedly trying to defraud the Town of Babylon.
Giustino Gallone, 65, of Bellmore, was charged yesterday with first-degree offering a false instrument for filing, a felony punishable by up to 4 years in prison. Gallone pleaded not guilty in First District Court in Central Islip and was released on his own recognizance.
Gallone is accused of seeking to defraud the Town of Babylon by omitting his ownership in a Bay Shore garbage carter when his company, Jody Enterprises Inc., submitted a proposal for Babylon's residential garbage contract. Babylon awarded Jody the 10-year, $78 million contract in June.
According to the criminal complaint, when Gallone submitted the proposal -- which required disclosure of involvement in any business in the past five years -- he did not reveal his partnership with Alpha Carting.
The relationship was only revealed during a town hearing in August after Jody and two of its managers, William Stegemann and Michael Dalessandro, were charged in a scheme to steal recycling revenue from client Smithtown.
Town Supervisor Richard Schaffer said last night that after the Smithtown arrests, the town received information that Gallone had hidden his involvement with Alpha. At the hearing, Gallone said under oath that he only shared yard space with the company but after further questioning, admitted he has owned 50 percent of Alpha for two years. Babylon rescinded the contract last week.
Shaffer said Gallone's evasive behavior "not only went to the specific fact that he left out, but it also went to his character."
Gallone's attorney, Justin Block of Commack, said they will fight the criminal charge. Block said Gallone has never had legal trouble. He said the Italian immigrant is "beaten down . . . watching all that he's worked so hard to build up come tumbling down."
With Nicholas Spangler