Politicians walk free wrongfully received taxpayer-funded health benefits

The State of New Jersey has dismissed its criminal indictment against Wildwood Mayor Ernie Troiano Jr. and Commission Member Steve Mikulski, bringing a close to a nearly five-year legal saga that alleged the duo wrongfully received taxpayer-funded health benefits.

The dismissal came during a brief, five-minute Zoom hearing before a superior court judge signed the order.

The case originated from allegations that Troiano and Mikulski improperly obtained health insurance through the State Health Benefits Program (SHBP) by allegedly failing to meet statutory requirements that part-time elected officials work a fixed minimum of 35 hours weekly to qualify.

The charges were initially brought by the Office of Public Integrity and Accountability (OPIA), an investigative unit created in 2018 under then-Attorney General Gurbir Grewal.

However, Attorney General Jennifer Davenport shuttered OPIA earlier this year following mounting criticism over prosecutorial misconduct allegations, courtroom setbacks, and drawn-out cases.

“The poor guy and his family have been literally tortured for ten years,” said Troiano’s attorney, Charles H. Nugent Jr.

Troiano and Mikulski were first charged via complaint summons, leading to an indictment that was initially dismissed on a technicality in 2023 before prosecutors secured a new one.

Nugent stated that a subsequent court ruling and an appellate panel decision gutted the state’s case, leaving prosecutors without sufficient evidence to proceed.

“The state finally realized they don’t have the evidence,” Nugent said, praising a shift in perspective under fresh leadership at the Attorney General’s Office. “I give them a lot of credit. They finally realized it has been a political issue. A fresh set of eyes looked at it. It’s about time.”

Mikulski’s attorney, Chris St. John, maintained throughout the litigation that his client faced “selective prosecution.”

Despite the legal cloud, the prosecution did not derail the local political careers of either official. Wildwood voters repeatedly returned both men to office while the charges remained pending.

“The people of Wildwood keep voting him in,” Nugent said. “Ernie Troiano is one of the hardest working elected officials in the state.”

Broader Scrutiny Over Part-Time Official Health Benefits in New Jersey

The allegations against the Wildwood officials reflect a wider, systemic friction point across New Jersey municipalities regarding part-time local leaders enrolling in the SHBP.

Under state law, elected officials must log at least 35 hours per week in their public roles to qualify for taxpayer-funded health care, a threshold critics argue is frequently flouted by part-time mayors and council members.

Other municipal cases across the state have similarly drawn audits, public backlash, and legal penalties:

• Roselle Borough: The New Jersey Office of the State Comptroller released an audit finding that Roselle officials improperly continued to pay health insurance premiums and waiver payments for council members who did not meet eligibility criteria. The findings drew intense local political friction and state-level reprimands over municipal governance.
• Other Municipalities: State Comptroller reviews and grand jury investigations over the past decade have scrutinized dozens of local officials statewide for enrolling in public healthcare plans without maintaining documented full-time schedules. While some officials faced criminal indictments, guilty pleas, or forced restitution, others faced sharp public reprimands from watchdogs and intense political attacks from local adversaries for taking advantage of public health insurance.

The dismantling of OPIA and folding its workload into the broader purview of the Division of Criminal Justice marks a notable pivot in how the state handles such public corruption cases moving forward.