Jersey Shore charter school managers indicted after steering $115k to founder’s side business

Charlie Dwyer
A gavel and a block is pictured at the George

EGG HARBOR CITY, NJ – The owner of an Egg Harbor charter school has been indicted after allegedly diverting funds to his own private business.

According to Attorney General Matthew J. Platkin, a founder of Egg Harbor Township charter school and its business administrator have been indicted after allegedly structuring an over $100,000 contract in such a way that it would be awarded to the school’s outdoor furniture-making business, which did not fulfill the contract’s terms.

An indictment has been issued by a grand jury against Peter Caporilli, 59, of Absecon, and Michael Falkowski, 48, of Point Pleasant. Caporilli, founder and former president of Principle Academy Charter School, faces eight charges. Falkowski, the school’s business administrator, faces five charges. Caporilli’s furniture company, Pleasantville-based Modern Boat Works, also known as Tidewater Workshop, was charged with six counts.

As a result of an investigation by the Attorney General’s Office of Public Integrity and Accountability, the defendants were originally charged on January 11, 2022.


“These defendants used their positions of power over the spending of this charter school to fix the contract-awarding process to enrich the school board president and his business,” said Attorney General Platkin. “The misuse of taxpayer dollars for personal gain should not – and will not – be tolerated.”


In accordance with the OPIA investigation, the crimes allegedly occurred between August 2018 and January 2019. As a result of the State Department of Education’s suspicion that Caporilli, who was both the school board’s president and the CEO of Modern Boat Works, steered contracts for outdoor furniture and an outdoor learning center to his company, the Attorney General’s Office was notified in July 2019.

A contract totaling $115,000 was awarded to that company by Principle Academy for the construction of an outdoor learning center at the back of the school.

According to the prosecution, the alleged co-conspirators broke up the project into two smaller contracts valued at $40,000.00 and $75,000.00 to avoid public bidding requirements and prevent competing contractors from bidding on the first phase.

“Other contractors were never given a fair shot at winning this job, as they should have been,” said Thomas Eicher, Executive Director of the Office of Public Integrity and Accountability. “And the company that did win the contract not only had a conflict of interest but also never followed through, preventing this school from getting what it paid for. This was a shameless swindle of public funds that also did a disservice to children.”

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The second, $75,000 phase was put out to bid in a newspaper public notice published on November 5, 2018. Nine businesses expressed an interest in submitting proposals. Investigators allege Falkowski failed to send the necessary paperwork to submit bids until November 13, 2018. The proposals were due November 16, 2018, leaving competing bidders less than three days to complete and physically deliver their bids. Ultimately, Modern Boat Works submitted the only bid:

According to investigators, the school also made payments to the furniture company before the school board approved the expenditure.

As a result of OPIA’s investigation, Modern Boat Works failed to complete the project according to contract. Even though Caporilli approved a change order reducing the scope of the project without increasing the price, the contractor allegedly failed to meet the less-demanding terms of the contract, despite the reduced scope of the project being reduced.

On October 6, 2022, the New Jersey State Police executed a search warrant at the charter school’s premises. In the course of their search, police discovered a haphazard collection of wooden furniture in poor condition rather than a completed “outdoor learning center” approved by the board.

In addition to conspiracy, theft by unlawful taking, official misconduct, false representation for a government contract, and misuse of entrusted property, all three defendants were charged with five second-degree counts. In addition to five to ten years behind bars, each defendant faces a $150,000 fine.

In addition, Caporilli and Tidewater are charged with fourth-degree unlawful official business transactions, which can result in up to 18 months of incarceration and a year of parole ineligibility, as well as a $150,000 fine.

As well as second-degree misconduct by a corporate official, Caporilli is charged with tampering with physical evidence, punishable by up to 18 months of imprisonment and a fine of $10,000.

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