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A Monmouth County grand jury returned a 42-count indictment Monday against former Asbury Park Housing Authority Executive Director Mark W. Holmes, Acting Monmouth County Prosecutor Christopher J. Gramiccioni said in a written news release.

Holmes, 54, of Lawrence Township [Mercer County] is charged with 38 counts of official misconduct, 22 of them are second degree crimes and the remaining 16 are third degree offenses, Gramiccioni said.

He is also charged with the second degree offense of having a pattern of official misconduct, two counts of the fraudulent use of a credit card – a third degree crime, and theft by deception – a second degree offense.

All charges stem from Holmes’ tenure as the Asbury Park Housing Authority [APHA] top executive from December 2008 to June 2011.

For a two and a half year period, Holmes is alleged to have used per diem monies for 30 trips across the country to fund personal expenditures like spa treatments, hotel in-room movies, gentlemen’s clubs visits and on at least three occasions, stretch limousine rides to and from the airport.

The Monmouth County Prosecutor’s Office investigation found Holmes stole in excess of $75,000 by diverting state grant funds, collecting reimbursements for unauthorized meals, and double-dipping on per diem payments when traveling.

A former Lawrence Township mayor and town councilman, Holmes began his tenure at the APHA as the Deputy Director of then city-run agency.

Months before assuming the role as Executive Director, he applied for and received a $99,897 grant award from the state Department of Labor and Workforce Development. A Literacy Skills Training Grant, the money was intended to provide training in computers and other marketable skills for Asbury Park public housing residents. Then between November 2008 and August 2009, the APHA under Holmes’ direction received over $75,000 from the state as part of the training grant, according to the news release.

But Holmes transferred over $58,000 of the funds to the APHA Community Development Corporation, an organization he created. Rather than use the funds for training purposes, Holmes allegedly gave himself an unauthorized $50,000 pay raise.

He then opened up APHA and APHA Community Development Corporation credit cards but used the cards for personal expenses, Gramiccioni said. Holmes allegedly changed the billing mailing addresses to his personal residence and racked up over $30,000 in debt.

The Prosecutor’s Office investigation found that prior to the more than 30 business trips across the country Holmes received up front per diem payments from the APHA. While the over $22,000, given during his tenure, was intended to cover meal expenses, Holmes allegedly sought and received duplicate reimbursements from the APHA for meals.

Holmes also allegedly used over $13,000 of unauthorized meal expenses in the Asbury Park and Lawrenceville areas.

Holmes is free on $70,000 bail, set by then-Monmouth County Presiding Criminal Judge Francis J. Vernoia, who was recently promoted to the Appellate Division.

If convicted, Holmes faces up to 10 years for each of the second degree official misconduct and up to 5 years for the third degree official misconduct charges.  The Official Misconduct charges are also subject to a mandatory period of parole ineligibility, forfeiture of any state pension benefits and a lifetime ban on public employment in New Jersey, as required by law, Prosecutor’s Office spokesman Charles Webster said.

The pattern of official misconduct and theft by deception charges also carry an up to a 10 years sentence each, but the fraudulent use of a credit card charge carries a three to five-year prison sentence.

The case is assigned to Monmouth County Assistant Prosecutor Lawrence Nelsen of the Office’s Financial Crimes and Public Corruption Bureau. Holmes is represented by Mark G. Davis of Trenton.

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