Jody Enterprises continues to collect recycles for the Town of Smithtown nearly four months after being accused of stealing more than $200,000 in town revenue.
Smithtown Supervisor, Patrick Vecchio, said the Medford-based garbage collector's contract with the town has not been terminated or rescinded despite two of its employees being arrested for operating a recycling scheme on Aug. 23.
"That’s still under investigation and we are not doing anything. There’s not any progress here," Vecchio said.
Smithtown town officials were forced to t who collects garbage and recyclables in four of the town's 12 solid waste districts, after the scheme came to light this summer.
The Suffolk County District Attorney's office arrested Jody Enterprises employees William A. Stegemann, 55, of Lindenhurst, and Michael Dalessandro, 43, of East Patchogue,on felony charges of second-degree grand larceny in August for allegedly operating a recycling scheme in cooperation with West Babylon-based DeMatteo Salvage for a personal profit.
Suffolk investigators said Dalessandaro would drive a truck, picking up curbside recyclable cardboard and paper from Smithtown homeowners. He would then take the truck to DeMatteo Salvage in West Babylon - instead of delivering the truck to Town of Smithtown's municipal recycling facility off Old Northport Road in Kings Park - for a cash payout of $400 to $450.The Town of Smithtown would have been able to sell the same recyclables for $1,000 to $1,200 a load, depending on weight.
It is unclear how long this alleged scheme went on, according to the DA's office, and there is an open investigation into the matter.
Smithtown officials sprung into action by opening a bidding process for a those interested in providing residential solid waste collection and disposal services to waste districts 5, 6, 8, and 9 - those districts serviced by Jody Enterprises.
On Sept. 4, the town board voted to pursue legal action against Jody Enterprises in form of a lawsuit.
Yet, in the weeks following Hurricane Sandy, Jody Enterprises were seen through out the town collecting garbage, debris and recyclables from local homeowners.
Vecchio said "they are still investigating the circumstances" and the town must follow legal procedures.
However other Towns working with Jody Enterprises were able to get out of their contracts with the dubious garbage collector.
In the Town of Babylon, Supervisor Rich Schaffer held a public hearing Sept. 4 to ask Jody Enterprises why Babylon should move ahead with a 10-year contract with the carting firm after the arrests. Babylon officials rescinded the contract with Jody to hire