O'Grady is first to begin 'Bid Rig' trial
Tapes of ex-county, Middletown official detail favors for sale
BY KAREN E. BOWES
Staff Writer

Ray O'Grady

The man who once swore he "could smell a cop a mile away" began trial in a Newark federal court last week, accused of accepting cash bribes from undercover FBI agents he often met at Chili's, in Freehold.

Raymond O'Grady, former Middletown mayor and Township Committee member, is the first member of Operation Bid Rig to challenge his charges in court. Arrested in February 2005 along with 10 other Monmouth County-area officials, O'Grady was later indicted on five counts of corruption, including extortion and charges he took $8,000 in bribes.

In dialogue that reads like a "Sopranos" episode - complete with a reference to a woman named Carmela - new transcripts were made available of conversations between O'Grady and undercover agents.

The undercover agents, known to O'Grady as "Joel" and "Vinny," posed as employees of a corrupt demolition company with dealings in loan sharking, money laundering and trafficking of stolen alcohol and cigarettes. FBI informant Robert "Duke" Steffer posed as the company's owner. In reality, the company never existed.

Employed as the director of the Monmouth County motor pool, O'Grady told the men about his job. On one recording, made on Oct. 15, 2004, at the Chili's in Freehold, O'Grady agreed to cooperate with the company in exchange for cash.

"Before fall, [Steffer is] gonna cut a lot of money loose and he wants us to start buying up property," said one undercover agent. "And he knows that what, in January, you're gonna become the mayor. ... So you're gonna know a lot of people. Know a lot of deals. Have a lot of influence. And he knows you're gonna look out for our best interest. Ya know."

"I could possibly help you out," O'Grady responded.

The men made plans to meet at Steffer's Neptune office in a week, to give O'Grady "an early Christmas gift or whatever," said one agent. That meeting, also monitored by the FBI, resulted in O'Grady allegedly accepting a $1,000 cash bribe.

Also during the Oct. 15 lunch meeting, O'Grady made his famous "I could smell a cop a mile a way" comment.

"Look. There ain't no such thing as having a cop as a friend," O'Grady told the undercover agents. "Everyone of them would screw you in a heartbeat if they had to."

Later, O'Grady talked about an article concerning a criminal who "copped a plea," given to him by his friend Anthony Palughi. Unknown to O'Grady at the time, Palughi had copped a plea of his own, wearing a wire for the FBI as part of the deal.

"So Tony [Palughi] tells me to read this article, he says, if this was f***ing me, I wouldn't care if I was standing over the body with the gun in my hand. I'd be saying, what body? What gun?"

When asked if his office staff would inquire about the lunch outing, O'Grady said they would not.

"No. I'm a party operative," O'Grady said. "I'm out meeting with business people. I'm out picking up checks. I'm out doing this. I'm out doing that. Ya know. I mean, I run a lot of money for the county. You know, I've chaired the Lincoln Day dinner, which is one the largest fundraisers they've had for umpteen million years. ... I fund-raised the finance for the party, the Republican Party. So, I mean everybody knows what I do, and they know I do it well. Ya know. They leave me alone."

In relation to finding work for Steffer, O'Grady talked about former Assemblyman Joseph Azzolina's family's Middletown town center plan on Feb. 9, 2005.

"Let me say this, whatever is done over at the Azzolinas', I can get him that site work, that's a major project, whether it's a planned adult community on 180 acres or their ... [the rest is deleted by the judge]."

A day after testifying against his old pal, Palughi was taken by ambulance to the hospital Friday, leaving him unable to complete his testimony in O'Grady's trial. On Monday, U.S. District Court Judge William Martini adjourned the trial until Tuesday, due to Palughi's poor health.

O'Grady's trial is scheduled to resume this week.

become the mayor. ... So you're gonna know a lot of people. Know a lot of deals. Have a lot of influence. And he knows you're gonna look out for our best interest. Ya know."

"I could possibly help you out," O'Grady responded.

The men made plans to meet at Steffer's Neptune office in a week, to give O'Grady "an early Christmas gift or whatever," said one agent. That meeting, also monitored by the FBI, resulted in O'Grady allegedly accepting a $1,000 cash bribe.

Also during the Oct. 15 lunch meeting, O'Grady made his famous "I could smell a cop a mile a way" comment.

"Look. There ain't no such thing as having a cop as a friend," O'Grady told the undercover agents. "Every one of them would screw you in a heartbeat if they had to."

Later, O'Grady talked about an article concerning a criminal who "copped a plea," given to him by his friend Anthony Palughi. Unknown to O'Grady at the time, Palughi had copped a plea of his own, wearing a wire for the FBI as part of the deal.

"So Tony [Palughi] tells me to read this article, he says, if this was f***ing me, I wouldn't care if I was standing over the body with the gun in my hand. I'd be saying, what body? What gun?"

When asked if his office staff would inquire about the lunch outing, O'Grady said they would not.

"No. I'm a party operative," O'Grady said. "I'm out meeting with business people. I'm out picking up checks. I'm out doing this. I'm out doing that. Ya know. I mean, I run a lot of money for the county. You know, I've chaired the Lincoln Day dinner, which is one the largest fundraisers they've had for umpteen million years. ... I fundraised the finance for the party, the Republican Party. So, I mean everybody knows what I do, and they know I do it well. Ya know. They leave me alone."

In relation to finding work for Steffer, O'Grady talked about former Assemblyman Joseph Azzolina's family's Middletown town center plan on Feb. 9, 2005.

"Let me say this, whatever is done over at the Azzolinas', I can get him that site work, that's a major project, whether it's a planned adult community on 180 acres or their ... [the rest is deleted by the judge]."

A day after testifying against his old pal, Palughi was taken by ambulance to the hospital Friday, leaving him unable to complete his testimony in O'Grady's trial. On Monday, U.S. District Court Judge William Martini adjourned the trial until Tuesday, due to Palughi's poor health.

O'Grady's trial is scheduled to resume this week.