The Mercer County Prosecutor's Office has passed the investigation onto the FBI
TRENTON -- The FBI is taking over an investigation into Trenton's payroll problems.
The Mercer County Prosecutor's Office had launched a criminal investigation Friday following concerns the city had about its payroll company, Innovative Payroll Services, and payroll taxes that were withheld from employees' paychecks but never paid to the government.
But the county has now passed the investigation onto the FBI, spokeswoman Casey DeBlasio said.
"We cannot confirm or deny the existence or non-existence of an investigation," said Special Agent Michael Whitaker, a spokesman in the FBI's Newark office.
Trenton first contracted with the West Berlin-based company in May 2009 and, most recently, approved six-month extensions in June and December of last year.
The company's CEO, John Scholtz, has since retained white-collar crime defense attorney Lisa Mathewson.
The city has refused to give any details about the payroll troubles it is facing and on Wednesday, city spokesman Michael Walker again declined to comment.
City Council met in executive session Tuesday night to discuss contractual matters regarding IPS and a prospective vendor, Mount Holly-based Primepoint, LLC. A vote on whether to award an emergency contract to Primepoint is scheduled for Thursday.
Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find The Times of Trenton on Facebook.