Middletown official indicted on tax fraud charges

Middletown's Director of Management Information Systems faces possible trial, accused of underreporting his income by more than a half-million dollars and concealing side jobs beyond the township position.

A Monmouth grand jury in Freehold indicted Todd W. Costello, 45, of Jackson, on 14 third-degree counts: five charges each of filing a false return and failure to pay taxes, and four of tampering with public records.

Costello has worked for Middletown since 2002. He was suspended without pay from his $109,180-per-year municipal post, pending the outcome of legal proceedings.

In a prepared statement, Township Administrator Anthony Mercantante said, "It is important to note that none of the charges against Mr. Costello involved in any way his work as a Township employee or Township finances in any way."

Each third-degree charge carries a possible prison term of three to five years on conviction.

Investigators from the county and the state Treasurer's Office reviewed Costello's returns from 2010 to 2014 and determined that there was a $535,000 gap between what he claimed and what he earned, and neglected to pay state taxes in excess of $22,000.

Costello has retained an attorney, authorities said.