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Bank Alleges Schroeder Committed Fraud in Lawsuit

Atlantic Stewardship Bank filed a complaint against State Assemblyman Robert Schroeder for $2.5 million in loans.

State Assemblyman Robert Schroeder allegedly failed to disclose millions of dollars worth of loans to Atlantic Stewardship Bank when applying for loans there, according to a complaint filed last Thursday.

The bank alleges it loaned $2 million to Schroeder in September of 2010 and later extended the loan to $2.5 million. When Schroeder borrowed the money, he did not disclose loans from other lenders totalling more than $5.6 million — lent between April of 2007 and March of this year — according to the complaint.

"The borrowers commited fraud on the bank," according to the complaint.

Schroeder was due to pay back the first $1 million plus interest last month, along with another $500,000 and interest in September, October and November. The complaint lists Schroeder and his two Hillsdale-based companies — and Hercules Global Logistics — as defendants.

The undisclosed loans ranged from $250,000 from JCB Realty, $275,000 from John Baldino and up to $1,356,000 from Frank Grasso and $1,385,000 from Philip LaBossiere, according to the complaint. More than 10 loans were allegedly not disclosed.

In the suit, the bank requested money due to Schroeder from the federal government. Both API and Hercules contracted with government agencies, including the military.

Schroeder has been sued by many people who say he owes them money over the past few weeks, and state officials .

Most recently, the Washington Township-based for more than $3.5 million in loans he allegedly missed payments on.

Attorneys for Schroeder and Atlantic Stewardship Bank did not respond to requests for comment Tuesday.

Have a question or news tip? Contact editor Jim Leggate at Jim.Leggate@patch.com, or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.

scruffy September 05, 2012 at 12:47 PM
What about collateral. Did Atlantic Stewardship have him post collateral like Average Joe would have had too? Many more questions are to be raised with the conituning articles about money being loaned. How many people loaned this man money on his fast talking and implication of his being "honest" since was/is an Assemblyman?
Michael September 05, 2012 at 02:30 PM
Why does this crook stay in office?
resident September 05, 2012 at 07:00 PM
I have three words for the banks and everybody that loaned money...U C C
Walnut September 05, 2012 at 07:46 PM
Were any of the loans between Schroeder and Durso and Schepisi (all elected officials within the 39th district) made public on any of their financial disclosure forms upon taking office? Did they all donate money to each other's respective campaigns while at the same time conducting personal business and/or making personal loans to Schroeder in amounts of thousands or hundreds of thousands of dollars? Do these financial relationships between elected officials at least raise the question of whether they constitute conflicts of interest or perhaps involve campaign finance law? The answer is, speaking to fellow republicans, the citizens of the Township of Washington and the 39th District MUST get involved, mobilize, and demand a clean slate of candidates (dare I say Republicans not beholden to the whims of the BCRO or Independents) to replace each and every member of the mayor and council in the township in addition to Schroeder and Schepisi. Write letters to the governors office, letters to the editor of local media and, most of all, engage your Township of washington friends and neighbors and urge them to go to council meetings and the polls and seek a new start. Otherwise, we will just get more of the same.
William Lang September 05, 2012 at 07:58 PM
yikes, the hole gets deeper and the mountain higher - BS's has no future and I am sure he will be leaving the Assembly soon enough....not for himself or his constituents or even because his party has asked him to leave, but because his family needs him to leave his elected office, so he can concentrate on getting some sort of life back after the dust settles and he deals with ever growing criminal and civil issues.
scruffy September 05, 2012 at 08:28 PM
Oh he is well past doing the right thing by the family. He is still in denial as to how bad this is if he is staying in office at this point. I guess he is still looking for that huge contract that will make him solvent again. NOT He is making mockery of the Reoublican Party and they are letting him take the rest of them down with him. As for cleaning house in Twp., then you need people to step up to the plate and actually get invloved and run. There has been no opposition to the leadership in years. The ones who did run against the status quo (Durso and Goetz) actually turned out to be wolves in sheeps clothing. You could start a recall vote but it is costly on the ones calling for it. Otherwise you have to wait for their seats to be up for election. You are correct that they should have declared these loans on the Financial Discolsure Forms and good luck with getting someone to do something , it could take years before legal actions catch up to this whole sordid mess.
B@B September 05, 2012 at 08:39 PM
Walnut: Why do you think it is so hard to get people to run against the entrenched power structure? Is it apathy? A sense that there's no point in "fighting the power"? Are people afraid of something? The Township government has been so cronied for so long, is there some kind of corruption that they don't want people to find out about and anyone who dares to cross them gets their kneecaps broken? What do you think it could be?
Walnut September 05, 2012 at 11:29 PM
B@B: it's part apathy, part ignorance, and the rest is entrenched interests that have gripped the town over the past 20 years. Schroeder's (or as it turns out other peoples money) literally bought him influence with all the key members of the BCRO despite his relative lack ( my opinion) of ability and charisma ( ever hear him give a speech?) I believe it was much easier for him to build this influence in our town given its modest socio-economic level. Do we ever really get worthy, able, and honest candidates? Given some of the nonsense one has to deal with as a mayor or councilman it doesn't surprise that most of those who run tend to have egos and personalities out of proportion to true ability to lead. The fact remains that we have a serious problem in town that may only be remedied by a clean slate of candidates.@
thumudog September 06, 2012 at 12:58 AM
Maybe that's what we need, clean house from top to bottom, from the mayor to all the departments heads etc, lately it's like they ALL have the attitude that we are here for them not them for us. Have you tried to get anything accomplished? The shopping center has no problem getting their wishes past, Seasons will have no problem building the strip mall they want, Five Star on Pascack and Washington are getting what they want, I still haven't heard any commitment to the clean-up that should have been completed years ago when they bought the property, see what happens it you sold a house with an in ground oil tank. I've lived in this town for over 40 years and it just gets worse and worse. Recall ALL the elected, fire all the appointed and start fresh, I'll cast that first vote. I am fed up with all their attitudes that they can do as they please and we have to accept it from Washington to WT.
Falcon Fan September 06, 2012 at 02:09 AM
Oh don't worry, when the Grand Jury finishes with their investigation there will be a lot of rats going down with this ship of fools. All the hires and all the appointments are in pocket of the Honorable Assemblyman.
Jeffrey Tammen September 08, 2012 at 04:04 PM
How true !!! This town needs a governing body that is here for the residents and not for the fat cats . And yes there attitudes are terrible,but thank goodness angus smith is no longer our administrator.most of the problems we are dealing with are issues she let go and never solved when in office.
Russ September 11, 2012 at 12:46 AM
Bob BS Schroeder should resign now. Wash Twp has a circus for Mayor and Council - remember this at your next election - and should really consider a merger with Westwood. After all, who need all this nonsense for a town of a little over 10,000 people. That's like one block in NYC. BS got to where he is just like Jon Corzine, using and mishandling other peoples money while living big. But BS is probably waiting for the Republicans to tell him when to leave so they can keep his useless assembly seat. Stop the BS Bob and resign now.

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