White Collar Crime News

New Charges for Michael Ritacco and Francis Gartland December 7, 2010

A superseding indictment was filed against Michael Ritacco and Francis Garland today.  The first indictment, returned on October 19, contained 18 counts of mail and wire fraud, travel and use of facilities in interstate commerce to promote bribery, and bribery in connection with a local government agency receiving federal funds.  The now 27-count indictment, adds nine counts to the previous indictment: two counts charging separate conspiracies to defraud the IRS, and seven counts of making and subscribing to false federal personal income tax returns – for tax years 2004 to 2006 for Ritacco and 2004 to 2007 for Gartland, according to the U.S. Attorney’s Office.

While I doubt this will really change anything, it does give the Government some insurance of securing a conviction.  Even if they can’t show the bribery and fraud counts, as long as they can show that Ritacco received income and that he did not include that on his tax returns, the Government can still get him on something.  I assume Ritacco’s attorneys were expecting that this could be an issue at some point.  One of the first things I do with my clients is to pull all of the records and see what was reported and what was not.  Once all that is in hand, it shouldn’t take long to figure out if tax evasion charges may be filed sooner or later.

FBI attempts to arrest Michael J. Ritacco but come up empty; has surrendered with his attorney October 21, 2010

***10:00 update:  Out of nowhere, Ritacco has retired: http://www.nj.com/news/index.ssf/2010/10/toms_river_superintendent_anno.html

***4:30 update:  You can read the indictment here: http://www.app.com/assets/pdf/B31657891021.PDF

***3:00 update: A District Court Judge set Ritacco’s bail at $1 million.  He should be able to post his Seaside Park home and be out shortly.  A news conference is scheduled for 3:30.  It appears that the only other person named in the indictment is Gartland.  That, of course, makes you wonder who else flipped on him.  There is also the question as to whether any other indictments are coming down or if this is it.  Regardless, it appears as if Ritacco is headed to trial with this case. 

***1:40 update:  Toms River Regional Superintendent Michael J. Ritacco has been named in an 18-count federal indictment that claims he took part in a massive fraud and bribery scheme involving the district’s health insurance broker.  (App.com)

The FBI went to Ritacco’s house this morning at 6am (a favorite time for them) to arrest him but he gave them the slip.  Although his attorney claims he didn’t know he was going to be arrested today, most people (including myself) knew he would be arrested this week.  He drove to his attorney’s office (who is in Florida) and an associate attorney has helped Ritacco turn himself in just minutes ago in Newark. 

Still no word on if anyone has or will be arrested.  There have been rumors flying around Toms River about who else will be arrested.  However, as we saw in Operation Bid Rig 3, many people were implicated but only a few were actually charged.

Michael Ritacco could be days away from being arrested as two “flip” on him as part of plea deal October 18, 2010

Frank D’Alonzo, a former administrator for the Toms River Regional School District, and Frank Cotroneo, an insurance broker, pleaded guilty Monday in federal court to participating in a scheme to pay hundreds of thousands of dollars in bribes to an unnamed “executive employee” of the school district.  According to the Asbury Park Press, sources indicated the obvious: this unnamed executive is Michael Ritacco. 

Ritacco’s lawyer, Jerome A. Ballarotto, said there “is not a shred of evidence,” to support D’Alonzo’s and Cotroneo’s statements, but really, what else is he going to say.   As a former US attorney, he knows what he is doing and it seems like this case is headed right to trial.  And again, why not?  Ritacco is the big fish (along with Gartland) and he is not a young man.  Any conviction will keep him in prison for many years to come. 

According to the APP story, it seems like this was a large and long-lasting conspiracy.  Thus, it will be interesting to see who else is involved in this case and whether or not they will also flip on Ritacco.  If you wanted to place your bet, odds are great that Ritacco will be in prison at some point in the future.  The only real question now is when and how he gets there, plea or trial?  The time for a fall on the sword type of plea and to bring down the whole ship with you has more or less passed.  As a result, my second bet is for trial. 

Story is here. 

Ocean County Criminal Defense Lawyers

Toms River Regional school district Superintendent Michael J. Ritacco may be indicted soon October 12, 2010

According to the Asbury Park Press, sources indicate that Toms River Regional school district Superintendent Michael J. Ritacco has been notified that he is the target of a Grand Jury investigation.  Hopefully, this is not news to Ritacco and his legal team.  In the Spring, his car was seized and his house was raided.  That can only occur if a judge has found probable cause that criminal activity occurred and/or evidence of criminal activity was located at his house.  Thus, it was only a matter of time before Ritacco was indicted.  The fact that he has been informed that he is a target, and not a witness or a subject also indicates that there is a 95% that he will be indicted very soon.  If you are labeled as a witness, you have no criminal liability.  If you are labeled as a subject, the Government is on the fence about your status.  If you are a target, they are coming after you.

While the scope of the investigation is unknown, what is known is that is involves Federal Hill Risk Management.  The attorney for the former owner of the company indicated that his client will be indicted in Federal Court next week.  Thus, it would seem likely that everyone associated with the Federal case would be indicted at the same time.  Until that happens, we may not learn much.  However, the fact that he has received a target letter leads me to believe that Ritacco is not cooperating.  While his attorneys may have had meetings with the Government, it seems like a plea deal could not be reached.  While Ritacco could certainly plea out after indictment, the best deal would likely come before indictment.  Thus, if Ritacco does get indicted, there is a good chance that the case could go to trial.

Story is here.