Hillsborough School Official Sentenced For $137K In Illegal Overtime Scheme

HILLSBOROUGH, NJ — A former Director of Buildings and Grounds for the Hillsborough Township School District must pay back $137,000 from an illegal overtime scheme to the district as part of his sentencing.

On Wednesday, Anthony DeLuca of Raritan was found guilty of embezzlement and theft from a government organization receiving federal funds, an offense occurring between July 2019 and January 2022.

"For several years, this federal investigation has been hanging over our heads," Hillsborough Township School Superintendent Mike Volpe stated. "We are happy that this sentencing has started to conclude this issue, although we do expect that there will be further news in the future. We look forward to working with the federal government to get restitution for the $137,000 owed to the school district."

DeLuca was sentenced to a one-year term of probation.

As a condition of this sentence, DeLuca is subject to strict oversight, including mandatory mental health treatment, alcohol testing, and full financial disclosure to the U.S. Probation Office.

"While this sentencing marks a significant step in concluding a process that has impacted the community for several years, the district anticipates further developments as the terms of the judgment are executed," according to the school district.

As part of the sentencing, DeLuca must pay $137,057.54 in restitution to the Department of the Treasury within 30 days of the sentencing date.

This amount is owed directly to the Hillsborough Township School District, and the district said it is prepared to work alongside federal authorities to ensure these funds are recovered and returned to the service of Hillsborough students and taxpayers.

"Like the community, we have been frustrated with how long this has taken, but we are appreciative that justice is finally being served and we have something to report to the Hillsborough community," stated Volpe. "We will keep you further informed in the future."

Embezzelment Scheme

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 pleaded guilty before Senior U.S. District Judge Peter G. Sheridan in January 2023 to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to the Hillsborough Township School District. Read More: Hillsborough School Official Admits Paying Kickbacks In Illegal Overtime Scheme

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