patching...
Welcome back, Patch Blogger!

PORTASH: The Man Who Put Them Away

Two decades ago, a ring of Manchester officials - led by Joe Portash - looted more than $10 million from the township's treasury

 

In New Jersey, scandal has become a part of the political fabric. But what happened in Manchester two decades ago could have made even the worst mobster gasp.

Here is a piece on the man, former Ocean County Prosecutor James W. Holzapfel, who helped put them all in jail.

----

James W. Holzapfel will tell you that he was, perhaps, the first New Jersey prosecutor to take llegal dumping very seriously. But he never, ever expected to use this power to unearth the worst political scandal in the state's history.

One day, in 1990, he found it hiding in plain sight, at the landfill in Manchester.

On a warm June day, Holzapfel, now a state senator, got a report from the Manchester police about trucks headng to the landfill, each carrying filing cabinets.

"They said it was all government records and I said, 'What's the problem with that?' " Holzapfel said. "They said, 'They're all current.' "

Thus began the revelation of corruption that involved more than $10 million stolen from the Manchester treasury - a scandal that still reverberates today, one that's used as an example of the worst of government dishonesty and deception in America.

To this day, Manchester Mayor Michael Fressola keeps a chart of those who were charged and convicted in the scandal pinned to his office bulletin board. Users of Patch websites still make comparisons between then and now, saying they "don't want another Portash" engulfing their local governments.

Joseph Portash, the Manchester township administrator who died just before the scandal was revealed, was the mastermind, using the money to gamble and commit other misdeeds during his long tenure in government.

For Holzapfel, it was, perhaps, the biggest moment of his career. He's remembered as the man who was placed front and center in the scandal when he revealed to the unknowing world, during a July 1990 press conference, everything he knew about the deep level of deception and fraud.

"It was almost like a [Bernie] Madoff thing," said Holzapfel. "To the world, he [Portash] was a gregarious guy whom everybody liked. But he led this second life. He wasn’t stupid, but someday, he was going to get caught."

"As far as I was concerned, it was a clean sweep," he said. "This was a criminal case. We did everything by the book, period."

When his office got the tip about the dumping, Holzapfel and his staff took "physical possession" of the records. "Stuff" was found in the checkbooks, he said, that wasn't matching where they said it was going.

"It would say something like 'Paving for Route 9,' " he said. But there would be no job to match it.

Back in June and July 1990, just as he took possession of the records, Holzapfel called the state Attorney General's Office, under then-Gov. Jim Florio. Even though Holzapfel was a Republican, he said the Democratic administration worked well with him on the case.

"They loaned a couple people," he said. "I then went to the county freeholders and said it looked like a major investigation, and they supplied me with additional funds."

His office then sifted through records for "days and days," with the help of a new Manchester administration - one that was elected based on the corruption rumors and took office on July 1, 1990.

"We chased all kinds of leads down in Atlantic City," Holzapfel said. "We had men who talked to all the pit bosses."

When the new administration took office on July 1, 1990, officials found that they were broke, discovering only $2.80 in the township legal fund and $240 in an engineering fund.

State auditors, meanwhile, joined the detectives and began poring over the books, according to news reports. They found that more than $1 million from a bond fund to close an old landfill was gone.

They found check stubs with names different from those on the corresponding checks. They found checks made out to nonexistent companies. They found checks made out to township employees for no apparent reason, according to news reports.

Despite his death, Holzapfel even went after Portash, and even went so far as to make sure that the scandal kingpin, who died in the area of his Maine vacation home, was really dead.

"I went wherever we could go - [we] went to Maine to make sure he was dead," he said. "We went to the funeral home and talked to the funeral director. There was no sign that he was putting money in offshore accounts and living in the Bahamas."

By Sept. 19, 1990, detectives had arrested former Mayor Ralph Rizzolo, former treasurer Janice Gawales and deputy treasurer Beverly Ramsdell, charging them with official misconduct. They said Rizzolo had destroyed township records, Gawales had stolen more than $174,000 and Ramsdell had stolen more than $53,000, according to news reports.

Because of Portash's death, however, Holzapfel acknowledges that - 23 years later - Manchester and the rest of the world may still not know the complete depth of the scandal.

Despite serving as prosecutor from 1987 to 1993, he said he, too, had no inkling of what was going on, until he got the tip from police.

He noted that Manchester was probably the last place where people thought this could occur, noting that when he started practicing law, "Manchester had two cops."

"At the end of the day, nobody really knew how much was taken," he said. "[For years], very few people came to a town hall meeting. You had people who would routinely come to the town hall and they were tracking what was going on."

About this column: A look back to one of the biggest political scandals in New Jersey's history. Related Topics: joe portash

Ron Hamilton

9:41 am on Thursday, March 14, 2013

I can't believe its been 20 years. I'm so glad Holzapfel put away those bums.

Reply
Patch_comments_icon

Tom Davis

10:43 am on Thursday, March 14, 2013

Next week, we have an interview with Portash's widow

Reply

Vera Fozman

12:26 pm on Thursday, March 14, 2013

And they all fell down. Interesting read.

Reply

Makes sense

12:28 pm on Thursday, March 14, 2013

They just talked to the funeral director? What if he was paid off.

Reply
Comment_arrow

Mac

5:39 pm on Thursday, March 14, 2013

Do you think an obscure Maine local in the early 90s would mislead a rather rural newbie NJ county prosecutor in a deal where at least an unaccountable $10M was involved? Do you believe that $10M of public money could disappear from a small bedroom community without a number of heavy hitters knowing at least some details about it? You know: county auditors, bankers, county and state tax agents to name a few who had to have known that something was amiss, along with the normal political parasites who feed off the public and always make sure they are getting their full cuts. Apparently, not being able to account for millions of stolen dollars kept in the public trust and sending three nickel and dime bit players to jail was good enough to impress the county gop into helping a local county prosecutor become a state senator.

ChiefWahoo

12:35 pm on Thursday, March 14, 2013

This is what happens when you are forced to give your money to others.

Reply

Stephen

2:28 pm on Thursday, March 14, 2013

I lived in Manchester during this scandal. So glad those guys got what they deserved.

Reply

Nancy Diasco

4:53 pm on Thursday, March 14, 2013

Portash = Gilmore
Gilmore = Ritacco

Reply
Comment_arrow

Mac

5:48 pm on Thursday, March 14, 2013

If the mayor of Perth Amboy hadn't of been busted, Ritacco would still be with us.

Comment_arrow

ChiefWahoo

8:33 pm on Thursday, March 14, 2013

History does not repeat , but it rhymes.

charlotte

9:44 pm on Thursday, March 14, 2013

This would be an interesting part of history to revisit.

Reply

John E

4:12 pm on Saturday, March 16, 2013

There was only 'ONE' truck not trucks, and only one dump load not dumps, and no filing cabinets were dumped (documents and checks just a few weeks old yes)! The load was suppose to go to the townships annex building in Whiting (corner of Manchester Blvd and Rt 530) like all the three other loads that was taken there that same day ( those loads did have filing cabinets and not dumped though)..the basement there was called the "VAULT" in the Whiting annex building.
Also all township employees ( not police) were given a hour or two (depending of department worked in) off early that day, reason why..outgoing TEMP mayor Rizzolo said so and they can all attend his outgoing party at townhall that very day of the dumping. Only two non-police employees were still on duty..those two in the truck that dumped>...and one refused to do it (dump the load) but he wasn't the senior employee... the driver (was senior employee) who was related to a newspaper company in Manchester at the time and that paper company was very connected to Portash for years.

What you read then and now in news print isn't all the TRUTH!!!
I know the truth and what really happen!

Reply

John E

4:37 pm on Saturday, March 16, 2013

I laugh at this:
"To this day, Manchester Mayor Michael Fressola keeps a chart of those who were charged and convicted in the scandal pinned to his office bulletin board."

But the employee who refused to dump that load of (updated documents and checks) and reported it to his supervisors which started the case rolling...was 'fired' 14 months later for a non-related employment reason!

I laugh to this day what the mayor did to that honest employee!!

Reply

John E

6:23 pm on Saturday, March 16, 2013

Really, Mr. Holzapfel started this case but didn't finish it. Mr. Holzapfel left being the OC prosecutor in 1992, case started in 1990..over in 1994 (when most were sentence to prison) when Dan Carluccio was OC prosecutor.

Reply

Leave a comment