Politics & Government

Smithtown Strikes Settlement with Garbage Carting Firm

Jody Enterprises will pay town $400,000 balance on $1.09 million contract after recycling scheme; contract ends Dec. 31.

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. 

In August 2012, two Jody Enterprises employees - William Stegemann, 56, of Lindenhurst, and Michael Dalessandro, 44, of East Patchogue - were accused of diverting the town's paper recyclables to DeMatteo Salvage in West Babylon for personal gains. 

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.

Smithtown Town officials did approve legal action to be taken against Jody Enterprises in September 2012, but have instead opted to settle. The settlement agreement states it is "being entered into solely for the purpose of avoiding the costs of litigation and amicably resolving all matters in controversy."

Read more on Newsday [Subscription required] about the Town of Smithtown's settlement with Jody Enterprises. 


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