Insurance Brokers Charged With Stealing Over $2.5 Million From Perth Amboy Schools

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TRENTON – Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that Maryland insurance broker Francis X. Gartland, two of his companies, and a second broker from Summit were indicted today on charges that they conspired to steal more than $2.5 million from the Perth Amboy Board of Education by submitting fraudulent bills.

The Division of Criminal Justice obtained a prior indictment in June charging Gartland, his son-in-law and a business partner from Maryland, and their companies with stealing $216,495 from the City of Perth Amboy by collecting payments for a non-existent “wellness program” for city employees.

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According to Taylor, today’s indictment, returned by a state grand jury, charges Francis X. Gartland, 69, of Baltimore, Md.; Brian Foley, 36, of Summit, and Gartland’s companies Gartland and Company Inc. (“GAC”) and E-Administrative Systems Inc. (“EAS”) with conspiracy (1st degree) , money laundering (1st degree), money laundering (structuring) (2nd degree), theft by deception (2nd degree), making false representations for a government contract (2nd degree), falsifying or tampering with records (4th degree), and forgery (4th degree). Gartland is also charged with misconduct by a corporate official (2nd degree).

The indictment stems from an ongoing investigation by the Division of Criminal Justice Corruption Bureau.

“We allege that these insurance brokers systematically stole more than $2.5 million from the Perth Amboy School District through a fraudulent scheme in which the district was billed for services for employees that were never provided or authorized,” said Dow. “Those are dollars stolen from taxpayers and from the school children of the City of Perth Amboy.”

“This is the second indictment we have obtained charging Gartland with exploiting his position as an insurance broker for public entities to steal very large sums of money,” said Taylor. “We will diligently pursue the evidence wherever it leads us in this ongoing investigation.”

GAC was the broker of record for health benefits insurance for the Perth Amboy Board of Education (“PABOE”), and was authorized to act on the PABOE’s behalf with its medical insurance carrier. The indictment alleges that between November 2003 and July 2009, the defendants and an unnamed co-conspirator conspired to fraudulently obtain $2,593,400 from the PABOE by charging it for nonexistent or unauthorized healthcare related programs and services, including wellness programs and employee assistance programs.


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