Former Wildwood, NJ, mayor pleads to healthcare fraud charges

A former mayor of Wildwood, New Jersey, pleaded guilty, last week, to several charges involved in a healthcare scam that, the state's attorney general, Matthew Platkin said, "saddled New Jersey residents with a six figure bill."

According to a statement from Platkin's office, former Wildwood, NJ, mayor Peter Byron, 68, of Wildwood, pleaded guilty to fraudulently participating in the State Health Benefits Program.

Byron, the statement noted, further pleaded guilty to failing to identify, in mandatory disclosure forms, his outside employment and failing to report income from that outside job on state tax returns.

Platkin's office said that the scam allowed Byron and others to access healthcare benefits that they were not entitled to, costing taxpayers thousands in fraudulent charges.

“Illegally obtaining benefits is not what holding public office should be about. Rather, it should be about honorably serving the people you represent,” said Platkin in a statement. “This was a self-serving, nearly decade-long betrayal of the public’s trust that saddled New Jersey residents with a six-figure bill for the defendant’s personal gain.”

Byron, who resigned from his municipal office in September of 2023, admitted to the crimes during a hearing on Sept. 27, 2024, before New Jersey Superior Court Judge Bernard DeLury, Jr., presiding in Cape May County.

Platkin's office noted that Byron pleaded guilty to one count of theft by unlawful taking in connection with the health-benefits fraud case.

With respect to another case, involving the undisclosed job, Byron further pleaded guilty to falsifying or tampering with records and filing a fraudulent tax return, Platkin's office said.

In exchange for his guilty pleas, prosecutors have agreed to recommend that the court impose an aggregate sentence of three years in New Jersey state prison, according to Platkin's office.

Byron also must pay restitution and enter a consent order with a lifetime ban on public office and employment, Platkin's office said.

Court documents note that, in July of 2023, a state grand jury in Trenton returned a 12-count indictment against Byron, Ernest Troiano Jr., -- another former mayor of Wildwood, NJ, -- and City Commissioner Steve Mikulski on charges of official misconduct, theft by unlawful taking, and other offenses, in connection with the alleged health-benefits fraud.

None of them were eligible to participate in this health benefits program as, officials noted, the men were never full-time employees.

Still, court documents note all three enrolled in the State Health Benefits Program and received benefits illegally.

"As a result, Wildwood and the SHBP paid nearly $609,000 in premiums and health-benefits claims on behalf of Byron from July 2011 through October 2021," Platkin's office said.

Platkin's office further said that, in April, a state grand jury returned another seven-count indictment against Byron.

In this second indictment, Platkin's office said, Byron was accused of abusing his official position to unlawfully pursue and obtain a job from an attorney who worked for the Wildwood city government.

In this case, which he also pleaded guilty to charges, claimed Byron failed to disclose the job in mandatory financial disclosure forms, and failed to pay state taxes on his earnings from that position.

Platkin's office said that, as he was elected as a city commissioner before serving as mayor, Byron "used his commissioner’s position to unlawfully pursue and obtain employment from that attorney, who had a contract with the City of Wildwood and who held official appointed positions with the City."

Byron then submitted required annual financial disclosure statements to the New Jersey Department of Community Affairs in which, Platkin's office said, he failed to properly identify the job with the attorney as a source of income in 2017 and 2018.

Additionally, the investigation revealed that Byron failed to pay required state income tax on income earned from New Jersey sources during those years, according to Platkin's office.

Platkin's office said that Byron's state income tax return falsely omitted required New Jersey-sourced income earned during that time period.

The case against defendants Troiano and Mikulski is ongoing, officials said.