Smithtown Town officials have reached a legal settlement agreement with the garbage carting firm whose employees were accused of stealing more than $200,000 in a recycling scheme last August.
Smithtown Town Board will release $674,032 in funds withheld from Jody Enterprises since May, who has continued to to collect household garbage and recyclables from 15,000 Smithtown homes, Newsday reports.
Under the agreement, Jody Enterprises will pay the town $400,000 of the $1.07 million contract for committing a breach of contract.
Suffolk County District Attorney Thomas Spota initially estimated the Town of Smithtown had been robbed of at least $200,000 in recyclable revenue, possibly more, during the initial arrests.
Joseph DeMatteo, 72, the owner and operator of DeMatteo Salvage in West Babylon has pled not guilty to grand larceny.
Giustino Gallone, owner of Jody Enterprises, pleaded not guilty to offering a false instrument to filing. Stegemann, 57, and Dallessandro, 44, stand charged with grand larceny and a due in court on Friday.
Jody Enterprises' garbage carting contract with the Town of Smithtown expires Dec. 31, and the company did not re-bid for next years.