Probe led to Konvitz’s exit from bank board
Long Branch
businessman was among founders of Monmouth Community Bank
By Carolyn o’connell
Staff Writer

After it was reported that his phone was tapped as part of a federal corruption investigation in January, Phil Konvitz was asked to step down from his position as a director of Monmouth Community Bank.

James Vaccaro, chief executive officer and chairman of the board of the bank, said, "Phil (Konvitz) was a director when the investigations first came out. We had a conversation and he resigned from the board as a director. It was in the best interest of the organization."

Konvitz, 91, of Ocean Avenue in Long Branch was among the founding directors of the bank.

While his name does not appear in the U.S. attorney general’s court filings in the recent extortion conviction of Ocean Township Mayor Terrance Weldon, information in those filings strongly suggests that Konvitz is the "associate" who is in discussions with Weldon about the matters for which Weldon pleaded guilty.

No charges have been filed against Konvitz relating to Weldon’s crimes.

Konvitz, despite his resignation, remains a major shareholder in the bank which has headquarters in the city.

Recent U.S. Securities and Exchange Commission filings show he beneficially owns 54,862 common shares, or slightly more than 5 percent of the outstanding common shares of the company.

Konvitz, who could not be reached for comment, has substantial holdings beyond the bank, including real estate and a large interest in International Fidelity Insurance Co., Newark, an A.M. Best A rated provider of surety bonds, including contract and performance bonds for the construction industry, license and permit bonds guaranteeing the performance of small and medium-size businesses and bail bonds.

Vaccaro said he does have a general concern about the investigations by the FBI and the U.S. Attorney’s Office as a citizen, a CEO and for the local institution (the Monmouth Community Bank).

However, "none of the things we have seen thus far have any affiliation with our organization, nor will they," Vaccaro said.

Anthony Giordano III, a Long Branch city councilman, who is the chief financial officer for the bank and treasurer of its holding company, Monmouth Community Bank Corp., declined to comment about the situation regarding Konvitz and his role at the bank, but he did comment on Weldon.

"What Terry Weldon did in Ocean Township is disgraceful," said Giordano. "Unfortunately, it causes a bad reflection of the 99.9 percent of local elected officials who work very hard for their respective communities each and every day."

Regarding Long Branch specifically, Giordano said, "I am 110 percent confident that what happened in Ocean Township did not happen in Long Branch or any of the other local municipalities as well."

Regarding the bank, Vaccaro said, "Our only concern is for the well-being of this organization; nothing that I know of would impair that."

Vaccaro noted that he is not aware of any investigations into his bank regarding Konvitz.

While Konvitz is the only bank director to have stepped down as a result of the corruption probe, he is not the only director with ties to Weldon.

James Aaron of Muncy Drive, West Long Branch, also is one of the founding directors of the bank. He is a partner in the Ocean Township law firm of Ansell Zaro Grimm & Aaron and served as both the city and redevelopment attorney for Asbury Park during Weldon’s tenure as city manager there. Peter Falvo, another partner in Aaron’s firm now serves as city attorney in Asbury Park.

Falvo also was the attorney representing Rolling Meadows and Mark Place, two of the Ocean Township development projects that Weldon pleaded guilty to extorting.

As with Konvitz, Aaron retains a significant proprietary interest in the bank, beneficially owning 53,862 common shares.

In addition to his professional relationship with Weldon, Aaron was named as a contributor to a legal defense fund created on behalf of the now former mayor and city manager.

He said his involvement in the fund did not extend beyond making a contribution and declined to say how much he contributed.

"That is between me and Mr. Weldon," Aaron said. "It is a personal matter."

Regarding Konvitz’s role at the bank and how that affects the institution, Aaron said, "He (Konvitz) did sit on the board of directors but he resigned immediately upon the investigation a year ago. He (Konvitz) had no decision-making power and was not involved in day-to-day operations of the bank.

He said his own relationship with Weldon should not be a concern for the bank or Long Branch, where he serves as city attorney. "Weldon and I dealt only in a professional capacity," Aaron said. "He gave me projects and I did them. What I did for him did not involve anything inappropriate at any time. My association with him was to provide professional advice to the council (Asbury Park) which Weldon did not have a vote in. I also assisted in redevelopment strategies approved by the mayor and council (in Asbury Park).

John Brockriede, another founder and director of the bank, said he is not concerned for himself or the bank regarding Konvitz.

Brockriede beneficially owns 66,613 shares of common stock in Monmouth Community Bank, which equates to 6.2 percent ownership. Brockriede said his only business dealings with Konvitz was the purchase of a lot behind the bank’s offices at 6 West End Court.

According to Brockriede, Konvitz originally intended to build a garage with an apartment upstairs on the lot.

Approximately two years ago, according to Brockriede, he and the bank’s other directors, not the bank, purchased the property from Konvitz for $60,000. According to Brockriede, Konvitz holds the mortgage on the property and owns approximately 6.7 percent of it.

"We wanted to give him 8 percent interest," said Brockriede, "but he would only take 6 percent."

As with the other directors, Brockriede has significant holdings beyond the bank. He is a principal owner of Monmouth Enterprises, a real estate management and investment business, which includes ownership of the Infiniti dealership in West Long Branch and several KFC franchises as well as sizable real estate holdings.

The other directors of the bank are: Mark R. Aikens, North Ward Avenue, Rumson; Richard O. Lindsey, Hutchinson Avenue, Burlington; Nicholas A. Alexander, West River Road, Rumson; Solomon Dwek, Crosby Avenue, Deal; John F. McCann, Bingham Avenue, Rumson; Harold M. Miller Jr., Rick Road, Milford; Carmen M. Penta, DeCamp Court, West Long Branch; and Mark G. Solow, Page Drive, Red Bank.

Vaccaro noted that the bank has strictly limited its dealings with directors and their other business interests.

"Our policy at the bank for the first two years of operation," said Vaccaro, "made it clear not to lend to any of the directors for the first two years."

As an example, he noted that the bank has no financing relationships with Dwek, who is a substantial developer of real estate.

County property tax records show that Deal Yeshiva, a business owned by Dwek, sold a parcel of property along West Park Avenue to Apple Farms Development, LLC, for $700,000 on Sept. 9, 1999. The developer is one of the three Weldon admitted extorting money from.