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Former Toms River Schools Insurance Broker Pleads Guilty to Fraud, Admits Payments to Ritacco

Francis X. Gartland admits to mail fraud, conspiracy to defraud the IRS, and perjury.

 

Francis X. Gartland admitted in federal court today that while he served as the insurance broker for Toms River Regional Schools he funneled bribes through a series of intermediaries to then-superintendent Michael J. Ritacco.

The payments were in excess of $1 million total from 2002-2010, announced the U.S. Attorney's office.

Gartland, 70, had plead not guilty previously and was awaiting trial, scheduled to begin in a week alongside Ritacco, in a 27-count federal indictment that alleged bribery, kickbacks, fraud and tax evasion.

The district's former insurance broker pleaded guilty today before U.S. District
Judge Joel A. Pisano in Trenton federal court to charges of mail fraud, conspiracy to defraud the IRS, and perjury.

U.S. Attorney Paul J. Fishman announced Gartland's plea. He said Gartland, while insurance broker for the Toms River Regional School District, admitted his role in a scheme to pay bribes and other benefits to the then-superintendent of schools to get and maintain a contract to provide insurance services for the district.

In the court documents and statements released this afternoon, Gartland admitted to his role with co-conspirators who paid $1 million to $2 million in bribes to Ritacco in exchange for inflated insurance contracts from 2002 to 2010, according to Fishman.

The co-conspirators named are Frank D’Alonzo, a former administrator at the Toms River Regional School District, Frank Cotroneo, 61, an insurance broker, and others.

"The payments were made to allow Gartland to obtain and keep the insurance contract with the district," according to a release from Fishman's office announcing the plea.

According to the U.S. Attorney's Office:

• Gartland admitted that in 2002, he, Ritacco, Cotroneo, and D’Alonzo agreed to have Ritacco approve a workers’ compensation insurance contract. That contract, between Gartland and the school district, had contract fees that would yield $500,000 to $600,000 per year in excess fees, which would be used to pay bribes and kickbacks to Ritacco.

• Gartland admitted his role in conspiring with Ritacco to defraud the IRS by hiding these bribes and other benefits that were paid to Ritacco, and to other individuals at Ritacco’s direction.

• Gartland admitted he and Ritacco, 65, used a series of shell companies and intermediaries to conceal the payments.

• Gartland admitted to filing fraudulent individual tax returns for tax years 2004 through 2007.

Gartland's sentencing is scheduled for July 9. In Ritacco's trial, jury selection is scheduled to begin April 9 in Trenton.

According to Fishman, the mail fraud to which Gartland pleaded guilty is punishable by up to 20 years in prison; on the conspiracy charges, up to five years in prison; and on the perjury charge, up to five years in prison. All the counts are also punishable by fines of $250,000.

In today's announcement, Gartland also admitted to his role in corruption charges elsewhere.

Calls placed to Toms River Regional School spokesperson Tammi Millar, Ritacco's Attorney William Hughes Jr., and U.S. Attorney spokesperson Rebekah Carmichael, were not immediately returned at this time.

Related Topics: Francis X. Gartland, brick nj news, and michael ritacco

Bob

4:12 pm on Monday, April 2, 2012

And now the truth will come out!!!!! Will Ritacco admit guilt too?

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Jail mike

4:20 pm on Monday, April 2, 2012

Yes he will and take everyone else down with him just like his scam partner did!!

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DennyD

4:25 pm on Monday, April 2, 2012

No one on the BOE had any inkling about the cost of the policy? Every one of the BOE members should be investigated too. Aren't BOEs responsible for all contracts? Who was the BA? There was a "pad" of $600,000 every year!! That was over and above the actual cost of the premium. WTF? No one smelled a rat??

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riverfest

4:31 pm on Monday, April 2, 2012

not a matter of ritacco admitting truth - a matter of who ritacco will be giving up as well. there were payments funnelled thru shadow companies and his construction company.
there will be more charges involving more people for other dealings - not just these insurance issues. engineering fees - entertainment complex - building houses for current and past administrators and don't forget current board attorney was ritacco's business and personal attorney as well and had mike build his home.
stay tuned - you'll find out real soon the far reaching tenacles of this case.

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BW

6:48 pm on Monday, April 2, 2012

Lets not forget that land flip deal with Juan Bellu

Chief Wahoo

4:33 pm on Monday, April 2, 2012

hey it was a good run Mikey......King of the schools, name on the arena, great ocean view house, mercedes , girlfriends all over, intimidation of taxpayers and a bunch of kool aid drinking followers......but all good things must come to an end......hope it was worth it......i always knew you were a fraud all these years , but now the question i need to find out, are you also a rat or do you take the punishment like a man......looking forward to finding out

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forthekids

5:01 pm on Monday, April 2, 2012

Barnegat was not the only school district federal officials subpoenaed in their investigation into Federal Hill. Documents were subpoenaed from Toms River, Brick and Perth Amboy school districts last year. The RAT is going to start spilling his guts in order to get a lighter sentence, the PIGS will soon be running, pointing their fingers at each other, this is gonna be fun!!!!!! Watch out!!! The FEDS will be here very, very soon and the RAT'S gonna take everyone down with him. Bye Bye,

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Rick Ricky

6:55 pm on Monday, April 2, 2012

Do not stop at Toms River, keep going. All the schools should be checked. I am glad my kids are done with school. I feel bad for all the Kids, Parents and Tax payers in all these towns. They are not doing right by the kids, never did and never will. The Governor should send a survey out to all the Parents on what they think of their schools and the problems and what they have to deal with. The lack of integrity, build and only see their own and the heck with everyone else's kids. On top of that all the corruption going on with money and shell games they play. Stop the insanity. I recommend Brick to be fully investigated and do not forget Long Branch too. He was a scammer to, I think he learned from Rittacco and I think they are related.

forthekids

5:04 pm on Monday, April 2, 2012

Wonder if the Brick BOE, MUA, or Housing Authority has done any business with Federal Hill Risk Management??? Could this be why it was to expensive to cover our athletic teams for both high schools??? And the BOE mysteriously dropped their coverage two years ago, makes you wonder????

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Ryan Meyers

5:33 pm on Monday, April 2, 2012

It gets even better.....ask the Mayor or any of the "R" Council members present & unelected, if they ever got campaign money from Federal Hill Risk. Then look at the dates and see what came first, the donations or the contracts.

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Monty Pyt-thon

10:39 pm on Monday, April 2, 2012

Glad none of you ever worked for the FBI. You don't think those questions have already been looked at and or anwered during the last few years since he was arrested?

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DennyD

10:53 am on Tuesday, April 3, 2012

Hmmm,
Who, in Brick, contacted Federal Hill Risk to pitch a deal? It began somewhere. Who was the contact? Then, who made the move to drop them? Anyone???

none of yobusiness

6:05 pm on Monday, April 2, 2012

You dirty rat! Im pretty confident that Ritacco is not happy to hear this news.

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brick strong

11:00 am on Tuesday, April 3, 2012

YOU DIRTY RAT ..YOU KILLED OUR TOWN ...!!! JAIL HOUSE ROCK STARTS SOON...

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brick strong

11:02 am on Tuesday, April 3, 2012

I'LL TAKE SNAKES FOR A DOLLAR PER YEAR...ALEX ..

BW

6:57 pm on Monday, April 2, 2012

This is bigger then just Mikie. Dont forget Mike and George raised lots of money for Christie and in exchange they both got spots on his transition team.

And now that Mike is being ratted out, he in turn, like any corrupt politician, will throw others under the bus, just like Gartland did to him.

This is gonna be better then a soap opera!

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Joe

7:06 pm on Monday, April 2, 2012

I think Mikey now has a pucker factor of 9.9

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Mickey

9:17 am on Tuesday, April 3, 2012

steve's must be just above "tsunami warning !"

Rick Ricky

7:47 pm on Monday, April 2, 2012

Don't forget to go after all the BOE members who pretend they did not know what or anything that was going on. Everyone claims ignorance when their boss gets caught. BOE members are puppets to all the superintendents in the districts. You do this for me and I will look the other way. Make my son a football star or baseball star and I will look the other way when you need a favor. They all exchange favors for their own benefits.

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KC

12:37 am on Tuesday, April 3, 2012

And ya know what really sticks in my craw Rick? They mostly all are the church going type and pretend to be such upstanding citizens. One would think they all pee perfume.

JohnnyT

8:34 pm on Monday, April 2, 2012

Schools, Schools are Fraud and Fake everywhere. They are run by a bunch of crooks who lie, cheat and cover up that is passed down to the teachers too. To bad our children have to deal with these educators that do not set an example that our children can learn from.

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BW

8:36 pm on Monday, April 2, 2012

Unfortunately Johnny, they do set an example our kids can learn from, a bad one.

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Retired teacher

10:38 pm on Monday, April 2, 2012

Johnny T
Not only are you ignorant, but attacking the teachers who work very hard for the children in Toms River is unforgivable! Also, that's "TOO" bad our children

BW

8:38 pm on Monday, April 2, 2012

BTW anyone notice the cars outside GOP HQ tonight? Oh to be a fly on the wall at that meeting!

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KC

12:46 am on Tuesday, April 3, 2012

That is something, It is pathetic too though. All this while they gouge the people who are struggling. ALL INCUMBENTS OUT! THE SCHOOLS SHOULD BE TAKEN OVER BY THE STATE AND ALL HIRES FROM SECRETARIES TO SUPERINTENDENTS AND TEACHERS AND JANITORS ALL REPLACED. The unfettered nepotism perpetrated by these gangsters is tautamant to unfair hiring and retenttion processes. It is time to clean the stench of the schools. Repaint them using these convicts for the labor source. Then fill the schools with employees who were deprived jobs thanks to the Ritacco clan and others of these scum;who collectively called all the shots for so many years.

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JohnnyT

7:18 am on Tuesday, April 3, 2012

KC, You are dead on! It does need be done. You forgot the most important and is truly affected by theses SC--BAGS. Our kids, do not think they are not doing for all the kids. They are doing for who they want to. They will support those who they want. They will cheat for them in what ever they can. Adjust grades, give them spots on sports teams. They will literally make up a bunch of bull donkey up on some of these students leaving the true talent in both academics and spots sitting on the side to make room for these undeserving kids. It is sickening. That alone they should get rid of these deceitful SC--BAGS.

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KC

3:57 pm on Tuesday, April 3, 2012

Yes, but let's face it the teachers had to see how year after year the monies did NOT go into the classrooms! The taxes are raised to line the pockets of the elite administrators. Teachers are educated people, so why hide the head in the sand?

JohnnyT

8:54 pm on Monday, April 2, 2012

BW, You are right and I would love to be a fly on the wall at all these meetings or behind close door as they would say.

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LikesTea2012

10:20 pm on Monday, April 2, 2012

Focus People. This story is about the people who are willing to use their position as public servants to enrich themselves. Look around. You can't miss them. And they are aided and abetted by their lawyers, accountants, board members...the list goes on. Let's face it. Our county is corrupt. Plain and simple. It starts at the top and trickles right down to the bottom. I don't want Rittaco to go. I want him to stay around long enough to tell us who got the houses that were paid for by the taxpayers. I want to know who paid what to who to get the concessions at the Rittaco Center. I want to know who thought it would be a good idea to let the school superintendent operate a cash festival. I want to know where the money went. Don't let there crooks get off easy. Bring on the witnesses. Bring on the testimony. Oh sure, we're going to hear that there's no sense in spending money on a trial. BULL!!! We must demand full disclosure by this crook. This will be the best money the taxpayers have ever spent on this group of creeps.

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Gore T

10:35 pm on Monday, April 2, 2012

Unfortunatly or not all of the singing has already gone on. It has been over 2 years since the indictment. Those that are or may have been implicated have all been visited and so on. The trial is a week away thats it. There are no new players, not sure what some of you posters think has been going on for the last 24 months.

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BW

10:39 pm on Monday, April 2, 2012

We all know the feds never show their hand till the time is right. We also know that now that Gartland turn RAT, there will be more "friends" thrown under the bus. I can almost say with 100% certainty, the trial will again be pushed back at least a month, due to todays revelations.

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Jignoshi

8:53 pm on Tuesday, April 3, 2012

I like you and I like what, and how you said it. Open the flood gates on these corrupt SOB's. It;s funny how their all high and mighty until they get caught. All of them ! Bunch of sneaky no good for nothings. At leats this guy is facing the music for his role. What an embarassment to his upstanding fourth right family. My condolenances !

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KC

10:36 pm on Tuesday, April 3, 2012

IMO you make so many valid points LikesTea..... some of that I never thought out... and I thought I saw and heard it all. Good thinking. Yes, we want testimony and disclosure.

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Rick Ricky

11:49 pm on Tuesday, April 3, 2012

That is pretty much some' s it up to everyone. All the local towns, schools are corrupted. They are all in it together.

KC

12:34 am on Tuesday, April 3, 2012

These ba$tards literally make me want to puke.

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forthekids

7:57 am on Tuesday, April 3, 2012

It seems very convenient that Gov Christie is in Israel when this news broke. Big Mike the Rat was on Christie's educational transitional team, and him and King George helped Christie get elected. I thought one of the Tubby Toolkit's campaign platform's was to root out corruption in NJ, wonder why he hasn't made a statement? The RATS out of the bag and is singing like a canary, is he still gong to plead not guilty??

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Mickey

9:20 am on Tuesday, April 3, 2012

this latest songbird, just might have changed the playing field. as another already posted, I wouldn't be surprised to see a "delay" in the trial.

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KC

10:38 pm on Tuesday, April 3, 2012

And when it snowed he was in Florida..... He is a let me get out of town and do a buffet governor. Typical.

Crazed

9:55 am on Tuesday, April 3, 2012

Do not forget the year that Christie got elected, the teachers of Toms River had the enitre week off for "Teacher's Convention!" That never happened before, and it has not happened after!

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knarfie

11:36 am on Tuesday, April 3, 2012

Where are all the " loyal" RATtacco supporters now?

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10% Tax Cut NOW

2:04 pm on Tuesday, April 3, 2012

How about a Forensic Audit into the Toms RIver Fest Program - What was covered up there ?

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10% Tax Cut NOW

2:07 pm on Tuesday, April 3, 2012

Check the Parkway, Rt 9 & Rt.35 Bridge's for jumpers.

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knarfie

6:40 pm on Wednesday, April 4, 2012

Gee, it's funny, Gartland doesn't look guilty in the picture.

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