TRENTON, N.J. (June 24, 2003) — John Tredy, the former controller of Bergen Tire, pled guilty this month to cheating New Jersey out of more than $1.2 million as well as stealing more than $300,000 from customers in a credit card scheme, the state's acting attorney general said.
Mr. Tredy, 56, pled guilty to second-degree charges of theft by deception and misapplication of entrusted property. With the plea agreement, the state is recommending Mr. Tredy get three to five years in state prison at his sentencing hearing Sept. 4. The agreement does not resolve tax debt, liability or restitution owed to the New Jersey Division of Taxation, the attorney general said. The division will pursue any tax liabilities through separate civil proceedings.
The state charged that between June 1994 and August 2000, Mr. Tredy collected but failed to turn over to the state $1.06 million in sales taxes and $101,000 in employee withholding taxes while he worked as controller for T&S Tire Service Corp., which does business as Bergen Tire. Also, a grand jury indictment charged Mr. Tredy with other acts of theft from December 1999 to August 2000, including a scheme of double-billing Bergen Tire customers' credit cards that netted more than $300,000.
The state said Mr. Tredy also employed the help of a tax investigator, Kevin Dolan, to avoid detection. Mr. Dolan was charged with receiving nearly $10,000 in gifts from Mr. Tredy. Last year, Mr. Dolan pled guilty in Bergen County Superior Court to a third-degree charge. His sentence is pending.
T&S Tire , which has administrative offices in Saddle Brook, N.J., is a retail tire sales and auto repair company with retail shops in Carlstadt and Wayne, N.J. The state said its investigation determined the owners gave Mr. Tredy complete financial control of the company, and they had no knowledge of the alleged theft. The owners discharged Mr. Tredy when the allegations came to light, the attorney general said.