N.J. mayor pocketed money from auctions of borough property, authorities allege

An Ocean County mayor was charged Friday with stealing money gained from government auctions and selling borough office furniture on social media, authorities said.

Ocean Gate Mayor Paul Kennedy, 66, was released from custody on a summons after being charged with official misconduct and theft, according to Ocean County Prosecutor Bradley D. Billhimer.

“The investigation revealed that Kennedy, in his capacity as Mayor of the Borough of Ocean Gate, failed to turn over proceeds from the sale of borough assets – sold by way of the government auction website GovDeals.com – and instead took possession of those proceeds for his own personal benefit,” the prosecutor said in a statement.

The mayor was also accused of failing to deposit borough parking meter funds in the borough’s bank account and selling borough office furniture through a private Facebook Marketplace account while trying to keep the money for himself, according to Billhimer.

Kennedy did not immediately return a call and text message to his cell phone. It was unclear if he had retained an attorney who could comment on the allegations.

“Where as most of us just heard the news today and are not privy to the details of the investigation I must decline to comment. As more information becomes available it will be shared,” Ocean Gate Council President David Kendrick wrote in an email late Friday.

Ocean Gate is a borough of approximately 2,000 people along the Toms River, near Seaside Heights.

The mayor also worked as a carpenter with the Ocean County Buildings and Grounds Department, according to Assistant County Administrator Michael Fiure, who said Kennedy was immediately suspended without pay ahead of a hearing. Records show he earned a $47,170 salary for that position.

Kennedy, a Republican, was sued in 2015 by a member of a local Democratic party group over a claim that he refused to step down from four borough jobs despite being fined by a government watchdog and failing to disclose the jobs on financial disclosure statements. The outcome of that suit was unclear.

Noah Cohen may be reached at [email protected].

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