Engineer for Tinton Falls Schools Project Charged by State with Bid Rigging and Accepting Kickbacks

The engineer overseeing a planned $10 million construction project on all three Tinton Falls' public schools has been charged by the state attorney general with taking thousands of dollars in kickbacks on contracts he recommended.

 Kenneth Disko, 47, allegedly orchestrated a series of bid-rigging and kickback schemes from 2001 and 2010 as the contracted engineer or engineer/architect on record for Tinton Falls, as well as Westfield and Scotch Plains-Fanwood school districts. He was charged with second-degree making false contract payment claims, according to a joint release on Wednesday  from the office of Attorney General Paula T. Dow and Director of the Division of Criminal Justice Stephen J. Taylor.

"We didn't know about any impropriety on Disko's part," said Tinton Falls School Superintendent John Russo on Wednesday. "Up until 3 p.m. today, he was the engineer on record working on several projects (for the district)."

The Tinton Falls Board of Education sent a formal letter to Disko today through the district's attorney to notify him that his services had been terminated, according to the superintendent.

Russo said he was surprised that the district hadn't been contacted by the attorney general's office regarding the accusations agains Disko. "The attorney general clearly has done an investigation," he said. "It's all a little bit strange they haven't contacted us."

A contractor who allegedly bid on the Tinton Falls project, John Sangiulian, 56, co-owner of Metropolitan Metal Window Company in Scotch Plains, was charged today with making false contract payment claims, according to the release.

"We allege that this engineer corrupted the contracting process in three school districts where he worked, taking more than $80,000 in kickbacks from contractors who overcharged the districts for school repairs and renovations," Dow said in the press release. "These defendants allegedly cheated the taxpayers who fund these districts, as well as the students who might have benefited from the thousands of dollars that were misappropriated."

In bidding on contracts for the Westfield and Tinton Falls school districts, Disko allegedly directed Sangiuliano to prepare fraudulent quotes bearing the names of other legitiamate contractors, making the quotes higher than his own, according to the release. Sangiuliano submitted quotes to Disko, who recommended the contracts be awarded to Sangiuliano's company.

It is also alleged that at the direction of Disko, Sangiuliano knowingly inflated Metropolitan's quotes and the cost of repairs for the contracts, according to the release. In exchange for the inflated contracts, Sangiuliano allegedly gave kickbacks to Disko is excess of $36,000 in 2009 and 2010. It is alleged that Disko also received more than $44,000 in kickbacks from a prior owner of Metropolitan who is now deceased for contracts awarded to Metropolitan from 2001 to 2004.

Russo, who said Disko had worked for the district for "several" years,  said that if charges against Disko prove true, the district would cooperate fully with the attorney general's office. "If contacted," he said.

The superintendent also said that he and the board of education would "vigorously pursue any wrongdoing on Disko's part."

Plans to begin construction at the end of the school year remain on schedule for now, according to Russo. As Disko's role in the project has been terminated, Russo said that a decision will have to be made as to whether the engineer position needs to be replaced or if construction could move forward under the increased supervision of the project's architect.

Russo said that the district has a postive relationship with the community and hopes they can quickly resolve the issue.

"We don't want to let this tarnish all the good work this district does," he said.