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Smithtown Prepares for Legal Action Against Jody Enterprises

The town is looking to end its contract with the carter.

Following the exposure of an where cardboard and paper were exchanged for under-the-counter cash payments, the Town of Smithtown is seeking to terminate its contract with Jody Enterprises and press charges against the company.

The town is also set to take legal action against its surety, Platte River Insurance Company.

"I think that everyone in town here was shocked that this was occurring," said Smithtown's Town Supervisor Vecchio. "That's why we're moving so forcibly today against the violations."

According to Suffolk County District Attorney Thomas Spota, Jody Enterprises managerial employees William Stegemann, 55, of Lindenhurst, and Michael Dalessandro, 43, of East Patchogue, , but delivered the cardboard and paper for under-the-counter cash payments to Joseph DeMatteo, 72, the owner and operator of DeMatteo Salvage in West Babylon. 

The decision to pursue legal action was announced via agenda resolutions at Tuesday's town board meeting.

The town board approved resolutions to appoint a hearing officer to pursue the termination of the contract with Jody Enterprises, to prepare charges for the revocation of the carting license issued to the company, and to start the process to take legal action against both Jody Enterprises and Platte River Insurance Company on Tuesday.

Vecchio said the decision for the town to take legal action against the company was the result of a meeting between Department of Public Safety Chief John Valentine, Environmental Protection Director Russell Barnett and Town Attorney John Zollo.

The town supervisor also said he believes this is the appropriate action to take against Jody Enterprises. The carting company is in its sixth year of a seven-year contract with the town.

Vecchio was not able to say when the legal proceedings would begin. Zollo was unavailable for comment by time of publication.

Spota said Aug. 22 that Jody Enterprises could have from the Town of Smithtown.

Associate Regional Editor Ryan Bonner and Commack Patch Editor Sara Walsh contributed to this story.

Paul L. September 05, 2012 at 10:27 AM
I'm guessing that if this went on for 2 years, someone at Jody Enterprises should have known about it.
WOODY11780 September 05, 2012 at 10:55 AM
NO COMMENT
Cathy September 05, 2012 at 11:43 AM
What else does the town folks not know about. It is still the "who you know, not what you know" mentality running our local governments!
Dave Adams September 05, 2012 at 12:16 PM
One would think that someone at the MSF would notice after all the years of the contract that suddenly up to 8 trucks every Wednesday were missing. Waste management is a lucrative business these days so the temptation to "cheat" is large. Aren't there any checks and balances left in the town government?
RC September 06, 2012 at 02:44 PM
Still picking up in my neighborhood ..
Dave Adams September 06, 2012 at 05:30 PM
and they will be until the town spends a few hundred thousand to get out of the contract which I believe only has one year left. The bad guys got arrested, account for all the trucks on recycle day and let them finish out the contract rather than wasting MORE money getting out of it.
BN September 06, 2012 at 07:03 PM
I second Daves opinion
Anthony September 06, 2012 at 09:06 PM
Jaclynn stegemann the office manager for Jody enterprises might have known but oh wait I thinks that's William stegemann's wife so obviously a little extra spending $$$ kept her quiet. Just another crook working in that company.
Paul L. September 09, 2012 at 01:14 PM
In my opinion if there is fraud involved in the performance of the contract, that should make the contract null and void and allow the Town to drop them without paying another cent. Jody Enterprises had an obligation to monitor their own employees and if they didn't and the employees committed a crime, that's THEIR tough luck. Criminals don't get to enforce a contract.

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