Former Solicitor Faces Ethics Charges

WEST WILDWOOD — Former borough solicitor Ronald Stagliano has had ethics charges brought against him by the Supreme Court of New Jersey District Ethics Committee for allegedly benefiting from the sale of properties on North Drive.
According to the complaint, in December 1991 and October 1997, vacant and undeveloped properties were sold to the borough at a tax sale. In Dec. 1999 and April 2000, the borough instructed Stagliano to institute foreclosure proceedings on the properties.
In May 2001, the West Isle Development LLC was formed. The certificate of formation notes that the registered agent for the company was Stagliano. One of the members of the company is Stagliano’s brother, Robert.
The complaint continues that in August 2001, FDML, LLC was formed, noting that the registering agent was Ronald Stagliano. Pascal DiAntonio, a friend of Stagliano, is its lone member.
On Sept. 7, 2001, the borough adopted a resolution authorizing the assignment of tax sale certificates on the properties. The resolution further states that West Isle Development offered to purchase the tax liens. The borough received a cashier’s check in the amount of $50.726.61 for payment the same day. On Sept. 12, 2001, Stagliano sent a letter to attorney Stewart Kay in response to Kay’s request about the properties. Stagliano advised Kay that the tax sale certificates were assigned to the borough and that Stagliano had received two requests for transfer before Kay’s.
Portions of one property were quitclaimed to FDML on June 28, July 2, and July 23, 2002. An attorney in Stagliano’s law firm prepared the deeds. In 2004 FDML filed an appeal for the 2004 tax assessment.
The complaint further states that in 2005, West Isle Development filed two actions in the Cape May County Superior Court to foreclose the tax sale certificates on the properties. In one of those actions, FDML was a defendant.
According to the complaint, the “respondent’s (Stagliano) failure to notify or recuse himself constitutes a violation of RPC 1.7, conflict of interest.” It also notes Stagliano’s “failure to notify or recuse himself constitutes a violation of RPC 1.8 (a), conflict of interest: current clients.”
In his response to the committee, Stagliano has requested, “that the complaint, in its entirety, be dismissed.
In a statement of fact in defense of the allegations, Stagliano states that he was the solicitor for the Borough of West Wildwood “from 1996 to 2008 and was not reappointed as a result of partisan and contentious political issues.” It further states, “The grievance and its subject investigation, inquiry and evaluation is not a result of any public purpose but rather personal and/or political issues raised by current and new representatives of the grievant against the respondant.”
It further states that in 2001, the Borough Commission “knew and/or was made aware that the principal of West Isle was …DiAntonio and he was a long time client of the respondant’s law firm, and that Robert Stagliano was the respondant’s brother.”
According to Stagliano’s statement of defense, the goal of the borough was to have delinquent real estate taxes paid. “The real estate taxes at issue that were delinquent for several years have been remitted and paid. It further states, “There did not exist reasonable belief …that there would be any adverse effect to the Borough of West Wildwood.”
According to current county tax records, 12 of the 14 properties are owned by FDML, LLC. The total assessed value of those properties is over $1.1 million. FDML holds the tax lien on two other properties on North Drive. An individual not named in the complaint owns those properties. Their assessed value is $418,500.
Commissioner Gerry McNamara told the Herald, “This would have been a criminal matter, but the statute of limitations ran out.” He explained that when the current administration took office, “We went through the records and nothing was in order.
“The borough hired a real estate lawyer to look into things. This popped out at us when we started straightening out the records,” he said.
A hearing will be held on Aug. 24 at 10 a.m. in the law offices of Cooper, Levenson, April, Niedelman, and Wagenheim, 1415 Marlton Pike, Suite 600, in Cherry Hill. The meeting is open to the public.
“I think any professional person who doesn’t follow the rules should get the strictest penalty,” said McNamara. “Lawyers take an oath; they’re officers of the court.”
A call to Stagliano’s office for comment about this story was not returned.