As the news was broken here on FAA News, back in April 2024, Kevin Geoghegan, a former at-large Toms River Township Councilman and Council President who was seeking a reelection come back - and a staunch opponent of Toms River Mayor Daniel Rodrick - filed a lawsuit attempting to prevent Rodrick's handpicked candidate William Byrne from gaining a seat on the council. The lawsuit was unsuccessful.
In response, back in July 2024, Rodrick put a stop on fire and police dispatchers routing calls to Silverton First Aid Squad / EMS, which is run by Geoghegan.
At the time Rodrick cited potential criminal financial irregularities within the organization, stating, “we’ve been advised by legal counsel that financial irregularities associated with Silverton EMS are potentially criminal, and the matter is being referred to the Ocean County Prosecutor’s Office. Given what we have learned, I had no choice but to take swift action."
The Silverton Emergency Medical Services responded to these allegations in a Facebook post welcoming the investigation – stating Silverton EMS is a non-profit organization and “remains compliant with all IRS reporting, including a complete audit of our books which was conducted last year.”
Rodrick has just now slammed the squad and Geoghegan with a lawsuit alleging they deprived the Township of load fees and accessed public fuel facilities contrary to the terms of their agreement with the Township.
According to the complaint just filed in New Jersey Superior Court in Ocean County by Brick Attorney Donald F. Burke Esq.:
Silverton holds itself out as a 501(c)(3) “volunteer” organization, however, in or around 2014, its volunteer status changed as it began compensating its members.
On March 27, 2019 former Mayor Kelaher entered into a Shared Services Agreement with Silverton which provided that Silverton would receive 80% of the load fee – more than all of the other first aid squads in Toms River - however, Silverton was required to “be responsible for its own fuel, repair, and equipment supply costs.”
The “Shared Services Agreement” further provided that “The Township shall use its designated third-party billing and collection service to directly bill patients serviced by [Silverton EMS] for reasonable and customary costs of emergency medical treatment and transportation, as established under Chapter 68 of the Township Code.” The Township would reimburse Silverton EMS 80% of the load fee which would be “deducted from the funds billed and collected” by the Township.
Contrary to this agreement, and without approval of the governing body, Silverton began using its own third-party billing and collection service to bill for its services.
Beginning in mid-2021, when Geoghegan served as both President of the Township Council and Business Administrator of Silverton, the squad kept 100% of the load fees collected.
Throughout this entire time, the Township continued dispatching calls to Silverton despite the fact that they were in violation of their 2019 agreement with the Township.
Further, despite the fact that Silverton was responsible for its own fuel costs, Silverton used key fobs provided by Geoghegan to obtain fuel from Township fuel pumps and from Township Municipal Utilities Authority fuel pumps. Silverton took in excess of 24,000 gallons of Township fuel from the Municipal Utilities Authority’s pumps, using the key fobs obtained by Geoghegan for the period from at least 2021 to present.
Consequently, even assuming gas was, on average, $3.00 per gallon during this time period, that would mean Silverton took at least $72,000.00 worth of gasoline from the Township.
Moreover, Silverton and its management took fuel, not only for ambulances, but also for their personal vehicles, including for the vehicle used by Geoghegan for his personal use.
On June 19, 2023 - prior to Rodrick taking the mayoral position - the Township’s CFO raised concerns about Silverton's use of the Township's fuel. The prior Administration ignored these concerns and failed to take any action.
Township officials also noticed a drop in revenue in 2021 when the Township stopped receiving its share of the load fees from Silverton. Notably, this was one year after Mr. Geoghegan was elected and served as the Township’s Council President.
Public tax filings reveal that from 2020 to 2022 Silverton's revenue increased from $462,423 in 2020, to $643,133 in 2021, and nearly double in 2022 to $1,134,815. Further, salaries paid by Silverton increased from $275,241 in 2020 to $499,912 in 2022 according to IRS Form 990s for 2020, 2021 and 2022.
To put it into perspective, 20% of Silverton's revenue for years 2021 and 2022 that the Township would be owed amounts to approximately $355,589.60. These calculations are without accounting for 2023 and 2024. However, assuming Silverton's revenue for 2023 and the first half of 2024 is consistent with its revenue for CY 2022, 20% would be an additional $350,000, potentially bringing the amount the Township is owed, pursuant to the terms of the Shared Services Agreement, to in excess of $750,000.
Additionally, while taking fuel from public fuel pumps without paying for it using the key fobs obtained by Geoghegan, Silverton – a 501(c)(3) organization – simultaneously solicited donations due to rising fuel costs. In a recent fundraising solicitation Silverton EMS complained about “rising costs especially fuel that has had a significant impact on us as well.” Further, despite this misappropriation of gasoline and failure to pay the Township in accordance with the Shared Services Agreement, Silverton has claimed “Silverton EMS receives no funding from the Township to operate.”
In July of 2024, shortly after the Township stopped dispatching Silverton after a confidential internal investigation revealed these alarming financial improprieties, Geoghegan was quoted in the Patch as stating Silverton First Aid Squad, Inc. receives fuel from the Township “as we have for 30 years.” No Township official had publicly or privately made any accusation about Silverton's misappropriation of fuel at that time. This assertion was contrary to the Shared Services Agreement that Geoghegan signed with the Township in 2019 which requires Silverton to pay for its own fuel costs.
The suit asserts 10 causes of action:
i) Conversion
ii) New Jersey Statute: 2C:20-20 – Treble Damages and Attorneys’ Fees
iii) Unjust Enrichment
iv) Breach of the Shared Services Agreement
v) Intentional Interference with Contract
vi) Breach of the Covenant of Good Faith and Fair Dealing
vii) Civil Conspiracy
viii) Official Misconduct and Violating The Public Trust
ix) Tortious Interference with Prospective Economic Advantage
x) Tortious Interference with Contract
The lawsuit - which seeks a trial by Jury - demands judgment for the following relief:
a. Compensatory damages to make plaintiff whole for all damages which plaintiff has suffered or may suffer as a result of defendants’ improper and unlawful conduct;
b. Consequential damages;
c. Equitable and injunctive relief, including stripping defendant Silverton First Aid Squad, Inc. of its tax exempt status as a result of its unlawful conduct;
d. Pre-judgment and post-judgment interest;
e. Punitive damages (pecuniary and nonpecuniary) to punish defendants for their wrongful conduct and to deter future misconduct;
f. Counsel fees and expenses;
g. Other and further relief to which plaintiff may be justly entitled as this Court may deem just, proper, or equitable.
Silverton First Aid Squad and Kevin Geoghegan have 35 days to answer the complaint.
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