Ritacco Sues Toms River School Board

Attorneys for former have filed a lawsuit demanding the school district pay him for unused sick days and his deferred compensation plan.

Each of the current members of the Toms River Regional School Board, as well as whose terms expired in 2011 and board attorney Thomas Monahan, are being sued in the federal lawsuit filed Oct. 25. That's four days after the one-year anniversary of Ritacco's federal arrest for bribery and fraud, the same day he resigned as superintendent.

Suing for Unused Sick, Vacation Time and Deferred Compensation

At issue is approximately $63,000 in unused sick and vacation time Ritacco accumulated. Business Administrator Bill Doering said in an interview with Toms River Patch on Oct. 20, before the lawsuit was filed, that there had been no action by the district to pay that money.

The lawsuit also demands the undisclosed amount of money in Ritacco's deferred compensation account, set up by the district as part of his contract.

The plans are called 457 plans, and allowed Ritacco to voluntarily defer some of his $234,000 annual salary into a fund to be used after retirement goes into effect. This allows the district to use that money to invest and earn interest, while it affords the plan-holder the advantages of a reduced taxable income.

The current contract, which would have lasted through 2012, is clear, said Ritacco’s lawyers. At issue are two things Ritacco is due, they said: all moneys put in deferred compensation and any unused sick and vacation time.

The lawsuit contends Ritacco is due:

• $15,000 in unused sick days.
• $23,750 for 25 unused vacation days from the 2008-09 school year.
• $24,062.50 for 25 unused vacation days from the 2009-10 school year.
• An undisclosed amount of money in a deferred compensation fund, in place since 2010. Ritacco is asking for the money as a lump sum, although his contract would also allow for regular payments.

Ritacco is suing for the money owed in sick and vacation days and in his deferred compensation fund. An he is also suing for compensatory damages, consequential damages, punitive damages, interest, attorneys' fees and the costs of the lawsuit.

Resigned Amid Scandal

Ritacco, who resigned the same day FBI arrested him on involving the Toms River Regional Schools insurance broker Francis X. Gartland, is entitled to the money in his 457 fund 60 days after his employment ended, said his lawyers, Jerome A. Ballarotto and William J. Hughes. That would have made the money due Feb. 19, 2011, according to the lawsuit.

Ritacco surrendered to authorities in Newark on Oct. 21; he resigned from his superintendent post that same day.

Ritacco's lawyers in March to publicly demand the money.

Requests for the Money

The issue had not come up since that meeting, said board attorney Thomas Monahan, who told Toms River Patch after last month's school board meeting that no action had been taken by the board on the money, nor had Ritacco's lawyers communicated with the district about it.

"There hasn't been a phone call, a letter, no discussion on it since that spring board meeting appearance — nothing," said Monahan.

But later that month, Ritacco's attorney, William J. Hughes Jr. filed the lawsuit on grounds Ritacco's civil rights are being denied, by the district failing to release the moneys due under his contract.

The lawsuit says Ritacco and his counsel first asked for a payout of the funds on Dec. 20, 2010, and have asked numerous times since then, and were denied after the board consulted with a tax attorney — unnamed in the lawsuit — but that the tax attorney was not one licensed to practice in New Jersey.

Denial for 'Political' Reasons

Current school board members were served with the summons of the lawsuit this week, sources said, with Ben Giovine, Loreeen Torrone, Alex Pavliv, Ed Gearity, Gus Kakavas, Jamie Jubert, Tom Baxter and Mike Jedziniiak each named as defendants. Former school board members Linda Garvey, Betty Vasil and Meera Malik, whose terms ended in April 2011, where also named as defendants, as is board attorney Monahan.

Ritacco served as superintendent for 20 years, and was employed for 40 years in the district. His most recent contract was approved by the board in 2007. The deferred compensation fun was created in 2000, according to the lawsuit.

The lawsuit states the district has not released the money due to a provision called "substantial risk of forfeiture" that it has misinterpreted based on the faulty advice of a third-party tax attorney the district consulted. The lawsuit also accuses the school board of not releasing the money due to solely political motivations.

""The true basis for the board's action is purely political, and has little or no basis in law or in fact," states the lawsuit. "...it is alleged that the board...denied Ritacco his 457(f) plan benefits and sick and vacation time as a result of a political motivation, finding that it would be 'political suicide' for the board to release these funds to Ritacco."

Ritacco has pled not guilty to all charges in the 27-count indictment and remains free after posting $1 million bail. He is awaiting trial April 3.

"Ritacco has pled NOT GUILTY, and has, and will continue to vigorously fight these charges," states the lawsuit.

The 27-count indictment against Ritacco contains two counts charging separate conspiracies to defraud the IRS and seven counts of making and subscribing to false federal personal income tax returns. The charges include the tax years of 2004 through 2006 for Ritacco and 2004 through 2007 for Gartland. More than $1 million in bribery payments are alleged to have been made to Ritacco or intermediaries in exchange for influencing contracts, according to the criminal indictment.

U.S. Superior Court Judge Joel A. Pisano is presiding over the civil case, and was also recently reassigned to hear the criminal case.

A .pdf file of the lawsuit is attached to this article.

For archived stories on the Ritacco case, visit the on Toms River Patch.