By Deion Johnson
nj.com
Toms River says Silverton First Aid Squad used 24,000 gallons of township-owned gasoline without reimbursing the municipality, violating a shared services agreement, according to a lawsuit filed in Ocean County Superior Court.
The value of the gasoline used is estimated to be $72,000, according to the suit, and may have been used for personal vehicles in addition to ambulances.
Under the agreement, the township had agreed to continue providing emergency medical dispatch services to Silverton provided that the squad paid for its own fuel and ambulance maintenance, according to the lawsuit.
The township claims that squad president Kevin Geoghegan , a township councilman from 2020 to 2023, engaged in “official misconduct” by allowing Silverton to improperly use the gasoline.
Geoghegan, when reached by NJ Advance Media, described the lawsuit as political retaliation. “No agency has found any illegal activity on our end,” he said. “So the next step is to drag us into court. The claim that we used fuel for personal use is absolutely false.”
Earlier this year, Toms River Mayor Daniel Rodrick directed fire and police dispatchers to stop routing calls to Silverton, alleging at the time possible criminal financial irregularities within the organization. The township has been providing EMS services in Silverton’s absence, it was previously reported. Rodrick did not respond to a request for comment on the lawsuit.
Rodrick said at the time the township had passed its claims on to the Ocean County Prosecutor’s Office for further investigation. The prosecutor’s office said the investigation is ongoing.
Silverton responded to the allegations at the time, stating it “remains compliant with all IRS reporting, including a complete audit of our books which was conducted last year.”
In the lawsuit, the township says Silverton failed to pay approximately $750,000 in load fees — the cost of ambulance trips and medical services — since 2021, adding this amount could increase when accounting for 2023 and 2024 load fees.
Under the agreement between the township and Silverton, the township bills insurance companies for these fees, with Silverton receiving 80% and the township the remaining 20%. In mid-2021, according to the lawsuit, Silverton began collecting the fees directly from insurance providers and did not provide the township with its 20% share, according to the lawsuit.
The township’s lawsuit also references a 2018 letter from former Mayor Thomas Kelaher, which stated that the township had stopped dispatching to Silverton because the squad had refused to sign an agreement with the township. Kelaher stated in the letter that Silverton’s shift away from a volunteer-based squad and its decision to charge for services created legal and financial risks for the township.
In January 2019, the township renewed its relationship with Silverton under a shared services agreement, which was set to be renewed annually unless either party chose to terminate it, according to court documents. The lawsuit seeks funds the township says it is owed by the squad and requests the squad’s tax-exempt status be revoked.
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