Trio indicted for $2M theft in Union St. project

FREEHOLD — A Monmouth County grand jury returned an eight-count indictment Dec. 8 charging Timothy Hurst, 53, of Middletown, Laurie Quinn, 50, of Middletown, and Kelly Rowe, 32, of Edison, with seconddegree conspiracy to commit theft by deception.

The three are also charged with the thirddegree crimes of forgery and uttering a forged instrument, as well as with other related second and third-degree crimes, according to a press release from the Monmouth County Prosecutor's Office.

The indictment follows a 14-month investigation conducted by Prosecutor's Office in conjunction with the Red Bank Police Department.

The investigation revealed that in 2005 Hurst and Quinn entered into a business agreement to redevelop a parcel of land owned by Neil and Patricia Malloy located at 11-13 Wharf Ave., in a commercial area of Red Bank. The Malloys owned and operated the Olde Union House, a popular pub and eatery, at that location.

Hurst, a frequent patron at the pub, was a general contractor by trade, the release states. In this capacity, he proposed that he and his fiancée, Quinn, along with the Malloys, form a limited liability company to be called Union Street Village Developers LLC in order to commercially redevelop the property. The plan included a large underground parking garage, street-level retail store space and eight condominiums to be situated above the stores.

Union Street Village Developers obtained $6.8 million in funding for the project from Amboy National Bank. The loan was secured through a mortgage on the project property owned by the Malloys, as well as by the liquor license they owned for the Olde Union House.

The project commenced with the demolition of the Olde Union House building. Work on the project continued through the winter of 2006.

According to the Prosecutor's Office, in late 2006, questions arose concerning the finances and how Hurst was managing them after he told the Malloys that the project had incurred unanticipated cost overruns.

As the inquiry proceeded, it was determined that at the time of the alleged overruns, Hurst and Quinn were building a new house for themselves on property Quinn owned in Middletown with money which had been improperly diverted from the Union Street Village project, the release states.

Further inquiry and investigation of the financial records controlled by Hurst, showed that money from the company was being diverted for private use by Hurst, Quinn and to a lesser extent, Rowe.

After Neil Malloy reviewed the financial records, he brought his concerns to law enforcement authorities. A financial analysis of documents related to the business revealed that hundreds of forged checks had been issued by the defendants, according to the press release.

Further investigation also revealed the following:

• Approximately $730,000 in checks paid to vendors for goods and/or services for worksites other than 11-13 Wharf Ave. for which the Union Street Developers account was established.

• Most of the $730,000 was spent on Hurst's and Quinn's new house at 216 Pine Place.

• Approximately $277,000 in charges were accrued on the Hurst/Union Street DevelopersAmerican Express credit card which were unrelated to the 11-13 Wharf Ave. project.

•Approximately $63,000 in unauthorized checks, which originated from the Union Street Developers account with Amboy National Bank were paid to Quinn.

• Approximately $230,000 in checks made payable to Hurst over and above his salary from the Union Street Developers of $100,000 per year.

Investigators involved in the case have determined that the total theft perpetrated by Hurst and Quinn, aided by Kelly Rowe, exceeds $2 million, the press release states.

Hurst surrendered to detectives from the Prosecutor's Office on Dec. 8 and Quinn surrendered on Dec. 9. Bail was set by Superior Court Judge Francis P. De Stefano at $100,000 for Hurst and $25,000 for Quinn. Each has posted bail. Rowe surrendered to detectives on Dec. 11 and was released on her own recognizance. As a condition of bail, each of the defendants must surrender their passport.

If convicted of a second-degree crime, each defendant faces a maximum sentence of 10 years in New Jersey State prison. If convicted of a third-degree crime, each defendant faces a maximum sentence of five years in prison.

Monmouth County Prosecutor Luis A. Valentin stated, "The charges alleged in the indictment involve serious allegations that these defendants systematically looted a potentially profitable business venture. In so doing they also adversely affected a substantial property in Red Bank and caused tremendous financial harm to other investors."

Despite these charges, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and State law.

Redevelopment of the Olde Union House was somewhat controversial. In February 2005, the Red Bank Planning Board voted to approve a development application for Union Street Village, a 28,000-square-foot, fourstory retail and residential development. The approval included demolition of the Olde Union House to clear the way for new development.

Members of the borough's historic preservation community, who lobbied to save the vintage building, were opposed to demolition of the landmark and advocated instead for the construction to take place around the Olde Union House, which is located in the borough's Historic District. Preservation Red Bank hired an attorney and experts to support their point of view, but the option to develop the old building into the new design was not feasible according to the developer's architect.