Housing Director Spent Literacy Grant On Spa Treatments, Gentlemen's Clubs, Prosecutor Says

FREEHOLD, NJ -- The former executive director of the Asbury Park Housing Authority is accused in a 42-count indictment of stealing more than $75,000 in state grant funds intended for literacy training by spending it on stretch limousines, spa treatments and gentlemen’s clubs and padding his salary, Acting Monmouth County Prosecutor Christopher J. Gramiccioni announced.

Mark W. Holmes, Sr., 54, of Lawrence Township in Mercer County, is charged with 22 counts of second-degree official misconduct, 16 counts of third-degree official misconduct, one count of second-degree pattern of official misconduct, two counts of third-degree fraudulent use of a credit card, and one count of second degree theft by deception, according to the indictment by a Monmouth County grand jury that was released Monday night.

Holmes, a former Lawrence Township mayor and town councilman, was executive director of the Asbury Park Housing Authority from December 2008 to June 2011, and served as its deputy director before that. Just months before assuming the role as executive director, Holmes applied for and received a $99,897 grant award from the state Department of Labor and Workforce Development. This Literacy Skills Training Grant was intended to provide training in computers and other marketable skills for Asbury Park public housing residents.

Between November 2008 and August 2009, with Holmes serving as executive director, the APHA received more than $75,000 from the state as part of the training grant. Holmes transferred more than $58,000 of the funds to the APHA Community Development Corporation, an organization he created, and, rather than use the money for training purposes, Holmes used the money to fund a $50,000 salary increase for himself without APHA Board approval.

Additionally, Holmes opened up credit cards in the name of the “APHA” and “APHA Community Development Corporation” and used the cards for personal expenses. He changed the mailing addresses for the bills to go directly to his personal residence and racked up more than $30,000 in debt.

While serving as executive director for 2-1/2 years, Holmes went on more than 30 business trips across the country. Prior to traveling, Holmes received up front per diem payments from the APHA, totaling more than $22,000 during his tenure, which were intended to cover meal expenses. Upon his return, even though he had already received these monies, Holmes sought and received duplicate reimbursements from the APHA for meals for which he had already received the up-front per diem payments. Holmes also used APHA funds for personal expenditures while on these trips, including spa treatments, hotel in-room movies, and gentlemen’s clubs. On at least three occasions, he used APHA funds to pay for stretch limousine service to transport him and his family to and from the airport.

Holmes also used more than $13,000 of APHA funds for unauthorized meal expenses in the Asbury Park and Lawrenceville areas.

Holmes is currently free after posting $70,000 bail, as set by then-Monmouth County Presiding Criminal Judge Francis J. Vernoia, who was recently elevated to the Appellate Division.

If convicted of any of the second-degree official misconduct charges, Holmes faces up to 10 years in prison; the third-degree charges carry up a sentence of up to 5 years in prison. The official misconduct charges are also subject to a mandatory period of parole ineligibility, forfeiture of any state pension benefits and a lifetime ban on public employment in New Jersey, as required by law.

If convicted of the charge of pattern of official misconduct, Holmes faces up to 10 years in a state prison.

The fraudulent use of a credit card charge carries a three- to five-year prison sentence, if convicted, and if Holmes is convicted of theft by deception, he faces five to 10 years in state prison.

The case is assigned to Monmouth County Assistant Prosecutor Lawrence Nelsen of the Office’s Financial Crimes and Public Corruption Bureau. Holmes is represented by Mark G. Davis of Trenton.