Toms River schools chief indicted
Michael Ritacco resigned after he was charged with taking bribes in an insurance scheme.
TOMS RIVER, N.J. - The superintendent of New Jersey's fourth-largest school district surrendered to the FBI on Thursday and was charged with fraud and bribery in an alleged insurance-kickback scheme that federal officials called "staggering" in its scope.
Toms River Schools Superintendent Michael Ritacco, whose salary is $234,000, was implicated this week when a district supervisor and a Morris County insurance broker said in court that they had been part of a scheme to inflate school insurance charges and kick back part of the money to Ritacco as bribes.
He announced his retirement Thursday night in a letter to the Board of Education.
Officials from the FBI and the U.S. Attorney's Office announced an 18-count indictment Thursday against Ritacco and insurance broker Francis Gartland, who did business with the district.
Officials say Ritacco, 62, of Seaside Park, and Gartland, 69, of Baltimore, concealed more than $1 million in bribes between 2002 and 2010 from insurance brokers and other service providers. Court documents say the men spent money on home renovations, watches that cost tens of thousands of dollars, and other personal expenses. Ritacco also allegedly bought a girlfriend - also on the district payroll - a car and other gifts, according to court papers.
U.S. Attorney Paul Fishman called the alleged scheme "staggering in its magnitude and scope."
"No matter what one's position or title, every corrupt public official has real victims," Fishman said. "Every time they line their own pockets, they strike at the core of the people's trust in their government."
Ritacco made a five-minute court appearance Thursday afternoon, speaking only to say he understood the charges and had counsel.
He did not enter a plea. Federal Magistrate Judge Michael Shipp directed that Ritacco be released on a $1 million bond secured by his Seaside Park home.
Defense attorney Jerome Ballarotto, who did not appear with him in court, said earlier that Ritacco was not a party to any criminal activity.
"The statements by those two guys on Monday will clearly be proven not to involve Mike," Ballarotto said. "If they committed offenses, they did it without Mike. Mike Ritacco has cooperated with this investigation from day one.
"There's such a thing in America as presumed innocent until proven guilty," the lawyer said. "We should all keep that in mind."