New Jersey School Official Sentenced After $137K Overtime Fraud Case
A federal court sentenced a former New Jersey school district executive to refund over $137,000 after admitting to a two-year overtime fraud scheme.
The former Hillsborough Township Public Schools director of buildings and grounds, Anthony DeLuca, 64, of Raritan, was sentenced in Trenton federal court. He was sentenced to one year of probation and ordered to reimburse $137,057.54 to the U.S. Treasury within 30 days of his March 11 sentencing.
Federal jurisdiction applied because Hillsborough Township Public Schools gets more than $10,000 in federal aid each year.
DeLuca pleaded guilty to federal embezzlement and theft from a government-funded group more than three years ago, according to court records. The case’s judicial process ends with his sentencing this week.
According to charging documents, DeLuca worked for the school system and was elevated to director of buildings and grounds in summer 2019. The elevation was purportedly recommended by an uncharged co-conspirator.
The district’s board of education accepted DeLuca’s employment contract after the promotion. The agreement fixed his yearly remuneration at $120,000 and indicated that he could not receive overtime as director.
Federal prosecutors said DeLuca made repeated overtime claims to the district despite the contract. The same co-conspirator who promoted him signed these assertions. Thus, DeLuca collected thousands of dollars in payments he was not entitled to under his employment agreement.
Investigators found that DeLuca got unlawful overtime from July 2019 until January 2022. He earned about $137,000 from bogus claims.
The plot included kickbacks, prosecutors said. Court filings show that DeLuca would withdraw cash from payments, put it in envelopes, and leave them in the co-conspirator’s workplace or vehicle. About $38,000 in kickbacks were estimated.
The federal court sentenced DeLuca to probation with various stipulations. He must undergo alcohol testing and treatment in addition to repaying the full reparation. Court ordered mental health counseling for him.
Probation will include financial monitoring. DeLuca cannot take on additional debt during probation and must produce financial disclosure statements to the USPO if requested.
The unsolved matter has dragged on the community, according to school district administration. Hillsborough Township Public Schools Superintendent Michael J. Volpe said the sentencing is a major step toward ending a long-standing issue.
After a long federal inquiry, Volpe said district officials are relieved to see the legal process conclude. After the lengthy case, the superintendent says the sentencing lets the school community move ahead.
After the court’s verdict, DeLuca’s defense attorney, Severiano Emile Lisboa, was unavailable for comment.
The case shows how federal authorities prosecute financial violations in federally funded groups. Federal oversight can apply to taxpayer-funded wrongdoing in local institutions like public schools.
With sentencing and restitution, the court closed a long-running overtime fraud case in Hillsborough Township Public Schools.
Sources
U.S. District Court records, Trenton, New Jersey
Hillsborough Township Public Schools official statement
Federal court charging documents and sentencing records
