Hillsborough School Official Admits Paying Kickbacks In Illegal Overtime Scheme

HILLSBOROUGH, NJ — The former Director of Buildings and Grounds for the Hillsborough Township School District admitted to getting $137,000 in illegal overtime payments and paying kickbacks in return to another school district employee, U.S. Attorney Philip R. Sellinger announced Thursday.

Anthony DeLuca, 61, of Raritan, pleaded guilty before Senior U.S. District Judge Peter G. Sheridan to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to the Hillsborough Township School District.

DeLuca, who had worked in the district since 1993, was promoted to the position of Director of Buildings and Grounds in July 2019. This new position was a salaried position that did not entitle him to overtime pay, according to the documents filed in this case. Read More: Hillsborough Severs Ties With Aramark, Hires From Within

DeLuca said that a school district employee referred to as "Individual 1" began directing him to claim overtime payments, including saying he worked hours that substantially exceeded those that DeLuca actually worked, according to the report.

DeLuca said he would submit the overtime to "Individual 1" who then authorized the payments for DeLuca in return for cash kickbacks, according to the report.

After getting the payments, DeLuca said he would withdraw cash from his bank account to pay kickbacks to "Individual 1," according to the report.

DeLuca said "Individual 1" would tell him to deliver the envelopes containing the cash kickbacks, to "Individual 1"’s vehicle and a drawer in "Individual 1"’s office desk.

DeLuca admitted that through this scheme he received in excess of $137,000 in overtime payments and that he paid "Individual 1" with at least $39,800 in kickbacks between July 2019 and January 2022, according to the report.

DeLuca faces a maximum penalty of 10 years in prison and a maximum fine of 250,000. Sentencing is scheduled for June 1, 2023.

The Somerset County Prosecutor's Office is also conducting a criminal investigation that was launched in December 2021 which triggered a number of resignations in the district including Business Administrator Aiman Mahmoud, Assistant Business Administrator Luisa Rodriguez, and most recently Superintendent Dr. Lisa Antunes.

An audit into the Hillsborough Township School District's finances found "multiple instances of concern," said Board of Education President Paul Marini at a previous meeting.

That investigation remains ongoing with no charges filed yet.

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