By John Soltes
Editor-in-Chief

CARLSTADT (May 29, 2009, 9:35 a.m.) — Carlstadt Mayor William Roseman and his former spouse, Lori Lewin, are accused of stealing medical and prescription plan benefits from the borough over the last several years, according to the Bergen County Prosecutor’s Office.

A grand jury indicted the two on charges of third-degree conspiracy to commit theft by deception, third-degree theft by deception and second-degree official misconduct Friday, May 29.

If convicted, the two each face up to 10 years in prison for the official misconduct charge.

The Confidential Investigations Unit, a branch of the prosecutor’s office, began its investigation in January 2008, stated Bergen County Prosecutor John Molinelli. The investigation determined that Roseman and Lewin were divorced in July 2000, but the mayor failed to notify the borough’s benefit administrator, Insurance Design Administrators, within 60 days of the divorce, according to authorities. The state alleges that Roseman notified IDA in January 2008, more than seven years after his divorce.

Roseman is accused of keeping his ex-wife on the borough’s benefits plan during this time, while Lewin is accused of obtaining prescription benefits in excess of $7,000 from July 2000 to January 2008. She also apparently received medical benefits through 2003, the prosecutor’s office added.

Roseman is also accused of not notifying IDA of his change of address in 2001.

The state further alleges that as mayor of Carlstadt, Roseman presided over council meetings where funding for the borough’s medical and prescription plans was approved, while at the same time, Lewin was allowed to remain on the benefits plan.

The hot potato

In the immediate hours following the mayor’s indictment, Carlstadt officials went off the radar, choosing not to comment to the press without first learning of the accusations.
Immediate calls to Roseman were unanswered.

A conversation with Carlstadt Borough Administrator Jane Fontana on her cell phone continued until a reporter with The Leader mentioned the allegations. Then the line went dead.

Following this, repeated calls to Fontana’s office and cell phone numbers were left unanswered. A reporter with The Leader stopped by Fontana’s office and found the door closed Friday, May 29, in the late morning hours.

Carlstadt Borough Attorney John Jay Fahy did talk, saying he was surprised to hear of the indictment. “Mayor Roseman is a dear friend of mine and has been for over 15 years,” he said. “I do not believe he did anything illegal. ... My experience is that he is very honest and straightforward. I just don’t understand this.”

Fahy added that he knew Roseman and his wife were divorced, and that he believed most of her medical benefits were paid by her own medical insurance company. “Mayor Roseman has a child and his benefits are paid by the borough,” he added. “I think that’s where the confusion was.”

Fahy said that roughly one year ago, Carlstadt officials became aware of three other borough employees who were also receiving benefits for their ex-spouses. “They were getting complete benefits for their exs and dependents,” he said. “These people were not investigated and not charged. Some of them work in the police department. It’s very unfair the mayor was charged and they were not. ... Either they charge them all or none of them. All or none.”

The borough attorney added that there was a “glitch” in the audit procedure for health insurance, and the borough didn’t know that ex-spouses were continuing to receive health benefits. The insurance manager has since put in a new policy, he added.

‘An honest public servant’

Roseman’s attorney Ed Cillick also responded to queries from The Leader. “I am very disappointed that they decided to indict Willy,” he said. “He’s nothing but an honest public servant. He’s absolutely innocent. This involved a claim that his wife accepted medical benefits. ... He had no knowledge of.”

Cillick added that once Roseman found out about the benefits given to his wife, the mayor demanded an audit.

After looking into the matter, the audit found “many borough employees’ ex-spouses were still active. Two are police and one is a DPW worker. Their dependents were also receiving full benefits. Clearly this is nothing but a mistake. It’s disappointing.”

Cillick said Roseman would fight the charges “all the way.”

Roseman, a Republican and lifelong resident of Carlstadt, was re-elected in 2007. He has served for several years as Carlstadt’s mayor. Additionally, Roseman has served on the Carlstadt Volunteer Ambulance Corps and is a charter member of the Carlstadt Historical Society. He is also an honorary member of the Carlstadt

Fire Department. Roseman is the co-founder, vice president of finance and director of Xandros, Inc., according to the most recent information available to The Leader.

According to Carlstadt’s code of ethics, “No elected or appointed official, officer or employee of the borough shall improperly use his/her official position in order to obtain a personal discount or other benefit from any person whatsoever.”

Roseman and Lewin are expected to be arraigned at the end of the month.

Click here to read the indictment.