Charter school founder seeks PTI after prosecutors reverse course in old Nicodemo case

Peter Caporilli, the founder of an Atlantic County charter school who was indicted in a case brought by disgraced former Deputy Attorney General John Nicodemo of the embattled Office of Public Integrity and Accountability, is seeking admission into New Jersey’s Pretrial Intervention (PTI) program after prosecutors agreed that diversion — rather than a criminal trial — is the appropriate resolution of the case.

In a 205-page court filing, Caporilli’s attorney, Louis M. Barbone, argues that three years of investigation and extensive discovery ultimately led the Attorney General’s Office to conclude that Caporilli should be admitted into PTI because the evidence does not support criminal intent.

The case was one of several prosecutions handled by Nicodemo that later drew allegations of prosecutorial misconduct.  In 2023, attorneys in the charter school case accused Nicodemo of misleading the grand jury by omitting portions of the School Ethics Act and withholding exculpatory evidence, allegations the Attorney General’s Office said it would review.

Caporilli was indicted in January 2023 on charges including conspiracy, theft, official misconduct, false representation for a government contract, misapplication of entrusted property, unlawful business transactions involving a conflict of interest, corporate misconduct and tampering.  The indictment centered on approximately $115,000 in contracts awarded to Modern Boat Works, Caporilli’s company, to construct an outdoor playground and learning center at Principal Academy Charter School.

According to the filing, the state now supports Caporilli’s admission into PTI while requiring Modern Boat Works to plead guilty and Caporilli to pay $85,000 in restitution by August 7.

The filing says the State’s original theory was wrong and that prosecutors now recognize “the compelling and extraordinary circumstances” warranting PTI.

“The concept of ‘theft’ by Tidewater is wholly unsupported,” Barbone wrote. “The State now recognizes the compelling and extraordinary circumstances mandating Caporilli’s admission into PTI.”

Barbone contends that the contracts were fully disclosed to and approved by the school’s Board of Trustees, that Caporilli abstained from voting on them, and that New Jersey’s School Ethics Act permitted the transactions under those circumstances.

Caporilli’s legal team is now disputing the state’s original theory that the school never received the contracted work.  It includes board minutes, architectural drawings, invoices, emails, and photographs that Barbone says show Modern Boat Works designed, built, and delivered playground improvements, outdoor furniture, walkways, benches, Adirondack chairs, and planters between August and October 2018.   The filing says later renovations, equipment relocation, and COVID-related storage led investigators to mistakenly conclude the materials were missing.

Barbone also highlights Caporilli’s background, noting that the 63-year-old businessman-turned-educator has no criminal record, founded the charter school, built Modern Boat Works into an outdoor furniture manufacturer, and separately donated approximately $35,000 in playground equipment to the school at his own expense.

During his prosecution – and presumably thereafter – the school will continue to accept state and municipal charter school aid.

Although maintaining his innocence, Modern Boat Works agreed to repay $85,000 without recovering any of the furniture or improvements his company provided.

“It is respectfully submitted that all of the foregoing circumstances are compelling and extraordinary, and that his PTI participation is required in the interest of justice,” Barbone wrote.

At least five former state and federal prosecutors have accused Nicodemo of misconduct, alleging that he withheld evidence from defense attorneys and lied to grand juries.  Nicodemo, a cartoonish failed dinner-theater actor, is no longer a line prosecutor and now holds a desk job at the Division of Highway Traffic Safety.  He now earns more money than he did as a prosecutor.