Indictments For Payroll Fraud
Philip N. Burgess Jr., a Princeton resident who owns Bristol Investments (www.bristolinvestments.com), which has its headquarters at 100 Canal Pointe Boulevard, has been indicted for defrauding the government of more than $2 million in taxes. The indictment, brought by United States Attorney Christopher Christie, charges the entrepreneur and an employee, Stephen R. Parrish, with payroll fraud.
It also charges Burgess, who claims that he is no longer employed by his companies, with diverting some $1 million from the Burgess companies to fund a lavish lifestyle for himself and for his family, and for not reporting this money on his personal income tax returns. According to published reports, Burgess is out on bail and his movements are being monitored by an electronic device.
Burgess’ family of companies operates in New Jersey, Georgia, Massachusetts, the Cayman Islands, and in other locations under a variety of names. Seventeen of them fall under the umbrella of Bristol Investments. They include MicroBilt Financial Services, FIDATA, Integra Information, MergTech, Health Center, SecureLock, Business Matters, Pupil Soft, Health Center, gig.com, and icompete.net.
Among Burgess’ other companies are AFAB Employee Services. The government has charged Burgess with leasing employees from one entity to another and with not paying payroll taxes for these “leased” employees, and also with paying employees, including Stephen Parrish, “under the table.”
One of the charges in the indictment against Burgess is reminiscent of the famous $2.1 million 40th birthday party that former Tyco CEO Dennis Kozlowski threw for his wife in Sardinia with company funds. It is alleged that Burgess, not nearly as big a spender as Kozlowski, diverted $6,900 from his companies to renew his wedding vows at a catered beach party on a beach on the Caribbean island of St. John. He is also alleged to have used company money, in an unspecified amount, “to transport by boat hair and make-up stylists to and from the motor yacht Lysandra on the day of the party.”
For a more modest event, Burgess, it is alleged, diverted $5,200 to use for a catered first birthday party for one of his children.
The government charges Burgess and his wife with purchasing their Princeton home for $725,000 in 2000 with money from three of his companies, and with dipping into the company till to add a swimming pool. Burgess, however, in what the government is calling false and misleading statement, denies owning a house in Princeton, claiming that he stays with relatives when he is in the area.
Burgess’ history of failing to make required tax payments stretches back to 1986, according to the indictment. Penalties have been imposed many times, but the government claims that all of its attempts to collect have been fruitless.
Calls to Burgess, and to Bristol Investments’ general counsel, Franklin B. Levin, had not been returned at press time.
U.S. 1 reported incorrectly on October 31 that Coldwell Banker Mortgage had closed an office at 2 Centre Drive in Monroe Township. In fact Coldwell Banker closed a real estate sales office at that location.
Picks Up Albridge
Albridge Solutions/StatementOne, 1009 Lenox Drive, Suite 204, Lawrenceville 08648; 609-620-5800; fax, 609-620-5801. Gregory Pacholski, CEO. Home page: www.albridge.com.
Albridge Solutions, a 200-person provider of portfolio accounting and wealth management services to large financial institutions, has been acquired by the PNC Financial Services Group.
Terms of the acquisition will not be released, says Albridge spokesman Jason Beyersdorfer.
Greg Pacholski, the company’s CEO, will stay on, as will the rest of the senior management team, says Beyersdorfer. In addition, he says, “there will be no lay-offs. There will be no relocations.”
The company, which was founded in 1993 as Fundscape, and later changed its name to StatementOne, is in expansion mode. It has added some 90 employees within the past year to 18 months, and, says Beyersdorfer, plans to expand into larger offices at Lenox Drive in the first quarter of next year. Albridge’s employees breaks down just about 50/50, he says. Half are IT professionals and the others work in all phases of management.
In an interview two years ago (U.S. 1, November 16, 2005), Pacholski, a graduate of Illinois Benedictine College (Class of 1981), and Albridge’s fourth employee, recalled the company’s early days. The 1990s were spent in R&D mode and in making the rounds of financial institutions to promote the company’s services. It was a struggle. He recalled having that “hanging on by your fingernails feeling.”
The company reeled in its first client, ING, in 2000. AIG and Pacific Life soon followed.
Well on his way by 2005, Pacholski nevertheless said: “I never want to lose the edge that we had when we were trying to survive day by day.” While the terms of his deal with PNC Financial Services have not been disclosed, it appears that it is now safe for him to exhale.
Jones Lang LaSalle, 111 Wood Avenue South, Suite 100, Iselin 08830; 732-590-3300. Todd Elfand.
Jones Lang LaSalle Incorporated (JLL) has agreed to buy out Charles Klatskin’s commercial real estate firm, currently known as Lee & Klatskin Associates.
In 2001 Klatskin’s company had three offices, including one on Cranbury South River Road. Now it is known as Lee & Klatskin, and it has a headquarters in Hasbrouck Heights and another office in Edison.
Klatskin’s Hasbrouck Heights headquarters will be the third New Jersey location for Jones Lang. Klatskin’s Edison office will move to Metro Park. Jones Lang also has an office in Parsippany. By adding on 25 employees from Klatskin, JLS will grow to more than 300 people in New Jersey. Klatskin will be an advisor.
Jones Lang has approximately 160 offices worldwide and operates in more than 450 cities in over 50 countries. Last year it had $2 billion in revenue (www.joneslanglasalle.com).
“New Jersey is the fourth largest industrial market in the United States and, as home to many Fortune 500 companies and the key port of entry for the East Coast, the premier industrial market in the Northeast region,” said Craig Meyer, director of Jones Lang LaSalle’s national industrial practice. “Bringing on the best team in the market is a perfect way for our firm to expand its industrial presence in this important market.”
Excel Insurance Services, 100 American Metro Boulevard, American Metro Center, Suite 104, Hamilton; 609-530-0111. Dennis Pellegrino, president. Home page: www.excelins.com.
Excel Insurance Services has moved from 2099 Pennington Road in Ewing to larger offices in the American Metro Center. The company, headed by Dennis Pellegrino Sr., specializes in commercial property and casualty insurance. Its new products include insurance for day care centers, artisan contractors, alarm installers, and homeowners associations.
Holt-Morgan-Russell Architects PA, 821 Alexander Road, Suite 115, Princeton 08540; 609-924-1358; fax, 609-924-5985. Robert W. Russell AIA, principal. www.hmr-architects.com.
Holt-Morgan-Russell Architects has made a move from one side of Alexander, 350 Alexander Street in Princeton Township, to the other side, 821 in West Windsor. The firm, founded in 1965, is headed by Robert Russell. It specializes in custom homes, academic projects, libraries, and historic preservation.
Distinctive Design and Supply, 87 East Broad Street, Hopewell 08525; 609-743-4394. Rick Scarlatella, owner. www.tsgllc.org.
Rick Scarlatella moved his building supply firm from Lawrenceville to a 1,000 foot space on East Broad Street in Hopewell. He has changed the firm’s name from the Scarlatella Group to Distinctive Design and Supply.
Pentad Staffing Solutions, 621 Executive Drive, Princeton 08540; 609-924-9060; fax, 609-924-9069. Frank Vucolo, president. Home page: www.pentadinc.com.
Pentad Staffing moved from 111 Commons Way to 621 Executive Drive in the same office complex.
Phoenix Environmental Management Inc., 3525 Quaker Bridge Road, Ibis Plaza, Suite 907, Hamilton 08619; 609-584-9001; fax, 609-584-9011. Julian Antebi, president.
Phoenix Environmental Management moved from 1150 Newton Street in North Brunswick to Hamilton. The company had been in its former space since 1987. Increasing congestion on Route 1 was a prime reason for the change. Another was the desire of the company’s president, Julian Antebi, to be closer to home.
The company does environmental consulting and has a specialty in dealing with contaminated sites, and in characterizing, developing, and managing cleanup strategies for contaminated properties. Antebi says that his is an exciting field. No two situations are alike, but procedures tend to revolve around the same protocol — investigation, collecting samples, and determining the nature and extent of the contamination.
Attracting talented professionals is a key challenge. “There are a lot of businesses like mine,” he says. “So finding good people is an important thing. We’re now looking now for environmental scientists and engineers.”
E.H. Stier, 176 Tamarack Circle, Skillman 08558; 609-497-6466; fax, 609-497-2909. Edwin Stier. Home page: www.stier.com.
Stier Anderson LLC has changed its name to E.H. Stier LLC, in the process of separating from Howard T. Anderson, who now practices in Washington, D.C. (202-659-0303).
The Skillman firm also moved, from 30 Vreeland Drive to 176 Tamarack Circle. The firm practices corporate integrity law counseling and assurance services, including compliance programs, independent investigations, and organizational monitoring.
Moore Business Forms & Systems Division, 5 Broadway Road, Cranbury 08512; 609-395-8833; fax, 609-395-0296. Ray Brown, manager.
Moore Business Forms and Systems, a division of R.R. Donnelly, is in the final stages of completing a move to Allentown, Pennsylvania. The reason for the move, says a spokesman, is to consolidate the operation in a larger space.
At one time Moore Business Forms had some 76 employees at this location. All of the employees were offered an opportunity to move to Allentown, according to the spokesman, who said that many have already moved, and that others have left the company.
Sum-Tech Inc., 110 West Franklin Avenue, Straube Center, Suite I-D, Pennington 08534; 201-694-2237. Home page: www.sum-techinc.com.
Sum-Tech Inc., a software development company headquartered in Monmouth Junction, has opened a software development center in Pennington.
BioNJ Inc., 1 AAA Drive, Suite 102, Trenton 08691; 609-890-3185; fax, 609-581-8244. Debbie Hart, president. Home page: www.biotechnj.org.
When Michael Becker came to the Biotechnology Council of New Jersey as its new chair on January 1, he felt strongly that the organization needed to rebrand, changing its name and logo.
The goals of the effort were threefold: first, to more concisely convey the organization’s mission; to position the company so that everyone was clear it is all about bio, and to align the New Jersey organization to the national biotechnology industry organization, which people refer to as Bio.
After 13 years as BCNJ, the staff was not initially enthusiastic about the rebranding effort and also concerned at the amount of work it would take. But the new name, BioNJ Inc., appears to be a winner.
Debbie Hart, BioNJ’s president says about the new name and logo: “The impact has been huge, the feedback tremendous, and the reception warm. It accomplishes each and every one of our goals in making the change.”
Working with Gil Roessner, the creative director of Roessner & Co. Graphic Design in Basking Ridge, they created a logo design that superimposes the double helix on the state of New Jersey, and Hart observes, “The state of New Jersey looks just like a helix.” The tagline for the logo is “advancing the state of biotechnology.”
The biotechnology industry is rapid growth is reflected by the organization’s membership, which Hart says is growing by leaps and bounds, from 80 biotechs in 1998 to 250 members in 2006.
Feeding the growth is a combination of companies coming into New Jersey from out of the state and international locations and biotechs, pharmaceuticals, and university laboratories in New Jersey spinning off biotechs. The newly branded BioNJ, not just an easy name to remember but one that describes its organization in five easy letters, is one of the first places that companies call when thinking about moving to New Jersey. As a quick illustration, Hart notes, “I got my sixth call in four weeks from a company that wanted to move into New Jersey.”
Joel Gove, 47. He was the founder of Trenton-based environmental consulting company Habitat Management and Design, and a member of the board of Kidsbridge Children’s Museum of Tolerance. He was last seen on December 27, 2006, while on a hiking trip on the Caribbean Island of Saba, where his body was recently found.
Peter Prichard, 79, on October 21. He worked on an Apollo mission for Taft Electrosystems, and later co-founded Clantech, a Montgomery company.
David S. Thompson, 90, on October 30. A Princeton University administrator, he had held positions as director of development and as recording secretary.
Angelo Omega, 46, on November 2. He was a cook at Princeton University.
Frances J. Chrzanowski, 61, on November 2. She was an assistant administrator for the Mercer County Board of Social Services.
Mark William Dettmar, 50, on November 4. He was president of Delaware River Outfitters in Pennington