The Millstone-based head of a firm embroiled in a running battle over a Morris County landfill is accused by state investigators of misrepresenting his company's plans to close and redevelop the site into a 10-megawatt solar farm to New Jersey environmental regulators and the former owner.

Richard W. Bernardi Sr., 61, and Strategic Environmental Partners (SEP), are charged with theft by deception and money laundering, in an indictment revealed today by the office of acting state Attorney General John J. Hoffman. His initial court appearance takes place today in Morristown.

Additional charges include false representations for a government contract, theft of services and misconduct by a corporate official. All but one of the six counts in the indictment are second-degree. The first-degree money laundering charge carries a possible prison term of 10 to 20 years on conviction.

Investigators allege that Bernardi lied to obtain a contract with the New Jersey Department of Environmental Protection (DEP) to operate the Fenimore Landfill in Roxbury and to acquire a mortgage loan from the former owner, and diverted more than $5,000,000 in tipping fees for personal and unauthoized purposes.

Authorities said that the redirecting tipping fees, paid to SEP to deposit material at the site, violated a requirement to hold most of the funds in escrow to ensure correct closure of the landfill.

The misconduct and theft of services charges concern what investigators said was Bernardi's failure to pay an engineering firm more than $1,500,000 in project-connected fees.

SEP's involvement with the landfill dates back to a 2011 agrreement with DEP to properly close the landfill and convert it for solar energy. Investigators contend that Bernardi's misstatements and the company's debt load in the millions left no finanical solid ground to implement all the components needed to close the site.

The landfill needed regrading, side slope stabilization, and installation of a leachate collection system and a methane gas collection system that would be required to function for 32 years, in addition to the final cap.

SEP had DEP authorization to take in about 1,200,000 cubic yards of material in order to generate tipping fees. State authorities claim that the company collected about $5,500,000 and deposited $250 to the escrow account that was designed to hold all but $650,000 of the revenue, eventually withdrawing $150 without DEP consent.

Bernardi allegedly placed about $1,600,000 into personal accounts belonging to himself, family members and a friend, investigators said.

Roxbury residents argued strenuously over the odor of "rotten eggs," stemming from hydrogen sulfide gas, that arose when SEP began taking fill material, investigators said.

DEP terminated the agreement in May 2012 and took over landfill operations in June 2013 to address the pollution and odor problems. SEP challenged DEP's actions in court, claiming that they were aimed at accomodating a builder with plans to develop near the site despite the capping issues, and that state legislation enacted in June 2013 gave DEP the authority it needed.

The solar project stalled, authorities said, because DEP contracted no one to install the equipment and no one to buy the energy that would be generated. Engineers determined that a 10-megawatt solar farm was unfeasible on the site, which discredited Bernardi's revenue projections, investigators said.

Bernardi and SEP allegedly presented false information to DEP by claiming no more than $700,000 of debt when the actual figure was about $3,400,000, claiming to have a solar panel installation firm contracted, and projecting $2,300,000 from a solar power developer, including $300,000 in 2011.

Investigators said that Bernardi reached a purchase price of $1,000,000 for the landfill and paid $50,000 up front, with the balance to be covered in a mortgage loan from the seller.

He is accused of misleading the owner about SEP's ability to close the landfill, place solar panels on the site, and attract a broker to sell the energy to a power supplier.

Authorities contend that the defendants transferred more than $500,000 of tipping fees into numerous banks and accounts to obscure the origin, leading to the money-laundering charge.

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