Former Middlesex Borough fire inspector pleads guilty to extortion

NEWARK – A former Middlesex Borough fire inspector admitted to conspiring with another person to commit strongarm extortion, U.S. Attorney for the District of New Jersey Craig Carpenito announced Tuesday.

Billy Donnerstag, 49, of Hackettstown, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment returned against him charging him with conspiring to commit extortion using threats of force, violence and fear, Carpenito said.

According to the documents filed in this case and statements made in court, from December 2016 through June 2017, Donnerstag conspired with Joseph Martinelli, of Kenvil, to extort the owner and operator of a real estate development and construction company by using threats of physical harm if the individual did not pay Donnerstag and Martinelli thousands of dollars.

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In a series of telephone and in-person conversations, Donnerstag and Martinelli told the company's owner that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Donnerstag and Martinelli wanted the business owner to pay Martinelli.

During the course of the conspiracy, both Donnerstag and Martinelli made a series of threatening statements to Individual 1 that the consequences of failing to pay Donnerstag and Martinelli would involve physical harm to Individual 1.

Donnerstag was hired as the borough's part-time fire inspector in April 2016 at a rate of $40 per hour for six hours a week. Donnerstag also was employed as a fire inspector in other municipalities, including Watchung, Mine Hill and Jefferson Township. 

Watchung suspended Donnerstag without pay, Borough Administrator Thomas Aikens said last June.

"We are very, very concerned," he said.

While threatening the real estate development company owner, Donnerstag said "if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk — I don’t get talked to like that. You don’t know who I am.” 

Ultimately, over two separate meetings, both of which were lawfully recorded, according to the release, Donnerstag and Martinelli obtained $15,000 in cash from the business owner. The cash had been provided by the FBI.

The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss.

Martinelli previously pleaded guilty before Arleo on March 2 to conspiring with Donnerstag to commit extortion. Sentencing for Donnerstag is scheduled for Sept. 25. Martinelli’s sentencing is scheduled for June 12.

Staff Writer Nick Muscavage: 908-243-6615; ngmuscavage@gannettnj.com