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For Immediate Release:  
For Further Information Contact:
April 13, 2005

Office of The Attorney General
- Peter C. Harvey, Attorney General
Division of Criminal Justice
- Vaughn L. McKoy, Director


John R. Hagerty


Attorney General’s Division of Criminal Justice Charges NJ Transit Employee with Stealing Inventory and Selling Replacement Bus Parts via the Internet
NJ TRANSIT Police & Criminal Justice Investigators Track $23,000 in Stolen Parts... Undercover Investigation Purchases Stolen Parts via E-Bay...

TRENTON - Attorney General Peter C. Harvey and NJ TRANSIT Executive Director George D. Warrington, announced that the Division of Criminal Justice has charged a NJ TRANSIT employee with stealing more than $23,000 in NJ TRANSIT inventory and replacement bus parts and then selling the stolen items via the Internet. The State Grand Jury indictment charged official misconduct and other corruption-related charges.

“This indictment charges an NJ TRANSIT employee with stealing inventory and then selling the stolen parts via an Internet auction site. It is also charged that the employee attempted to conceal the thefts and obstruct the investigation by returning stolen parts to inventory and by eliminating the E-Bay web page,” said Attorney General Harvey. “It should be noted that this investigation and prosecution targeted a substantial theft. The Division of Criminal Justice has established a specialized program to assist government agencies to identify and report procurement fraud. The Attorney General’s Office is continuing to target all forms of corruption, at all levels of government.”

“I want to commend NJ TRANSIT bus management and police department for uncovering and thoroughly investigating this incident. Together with the Attorney General, we want to make it clear that such behavior will not be tolerated.” said NJ TRANSIT Executive Director Warrington.

According to Criminal Justice Director Vaughn L. McKoy, a State Grand Jury indictment charged Douglas Deleeuw, 51, Church Road, Brick Township, Ocean County, with second degree official misconduct, theft by unlawful taking (3rd degree) and money laundering (3rd degree). Deleeuw is identified as a former stock clerk at the New Jersey Transit Garage located in Howell Township, Monmouth County. Deleeuw’s employment has been terminated. If convicted on all counts, Deleeuw faces up to 20 years in state prison, a fine of up to $130,000 and restitution.

Director McKoy noted that the State Grand Jury indictment resulted from an investigation initiated by the NJ TRANSIT Police which targeted the removal of excessive amounts of in-stock inventory of replacement bus parts from the Howell garage. The investigation, conducted by NJ TRANSIT detectives and State Investigators assigned to the Division of Criminal Justice - Special Prosecutions Bureau, tracked the activities of individuals scanning out inventory at the Howell garage and determined that the quantity of inventory scanned out by Deleeuw was in excess of needed bus repairs.

The indictment charges that from December, 2003 through December, 2004, Deleeuw, in his position as stock clerk, scanned out parts from the NJ TRANSIT Howell garage inventory and placed the parts for sale on eBay. Additionally, the indictment charged money laundering in that Deleeuw knowingly sold the stolen parts and then deposited cash proceeds from the sales into an account established in the name of an acquaintance. The investigation determined that the parts for sale on eBay included red and amber marker lamps, seals, sensors, silicone hoses, batteries, and at least one bus seat.

The investigation established an undercover web address, credit card and PayPal account in order to purchase items from Deleeuw’s eBay web page. On separate occasions in July, August, and September, 2004, undercover investigators purchased brake lights, turn signals, marker lights and silicone hoses via Deleeuw’s “Wackimac” and/or “Harradengarage” eBay web page. A comparison of serial numbers from the parts purchased via the eBay web page confirmed that the parts had been scanned out of the NJ TRANSIT Howell garage. It is charged that when Deleeuw learned that State and NJ TRANSIT investigators, armed with State Grand Jury subpoenas, were seeking various records and documents related to the alleged activity, he (Deleeuw) took steps to thwart the investigation by replacing stolen inventory and removing the stolen parts from the eBay web page.

Criminal Justice Director McKoy noted that the investigation by the Division of Criminal Justice Special Prosecutions Bureau and the NJ TRANSIT Police utilized undercover investigative techniques and other investigative procedures to document the alleged illegal activity. In the interest of investigative security and pursuant to established court requirements, the Division of Criminal Justice is limited in discussing specific details regarding the alleged illegal activity and investigative details.

“This type of corruption - the theft of government property - raises the cost of repair and maintenance of NJ TRANSIT vehicles,” said Director McKoy. “The Special Prosecutions Bureau targets fraud and corruption related to the procurement process by working with, and providing information to, New Jersey government officials so they can identify and report procurement fraud and theft.”

Det. Sgt. Ed Iandoli of the NJ TRANSIT Police Department aggressively pursued the investigation from beginning to end. Deputy Attorney General Susan Kase and State Investigator Daniel O’Keeffe of the Division of Criminal Justice - Special Prosecutions Bureau coordinated the investigation. DAG Kase presented the case to the State Grand Jury.

The indictment was handed-up to Mercer County Superior Court Judge Maria Marinari Sypek on April 12. The defendant will be issued a complaint summons requiring his appearance in Monmouth County Superior Court at a future date for arraignment and bail.

The defendant is presumed innocent of the charges unless and until proven guilty in a court of law.

A copy of the State Grand Jury indictment is available via the Division of Criminal Justice Web site at

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