JERSEY CITY — The Federal Bureau of Investigation conducted a raid on the athletic departments of the five Jersey City public high schools early Friday morning, confiscating desktop and laptop computers, records, receipts, files, and documents at all of the school locations.
According to two reliable sources, the FBI investigation is part of a probe involving an equipment reconditioning firm based in Easton, Pa. that handled all of Jersey City’s athletic equipment reconditioning, especially football, for the last 25 years.
In January of 2008, David Drill, the former president of Circle System from 1982 through 2007, pleaded guilty in federal court to a charge of conspiracy to commit mail fraud. His charge was related to allegedly overcharging several New Jersey high schools for the reconditioning of athletic equipment.
At the time of his guilty plea, the 60-year-old Drill, a resident of Pennsylvania but a very familiar face in local athletic circles, did not receive any sentence. U.S. District Judge Dickinson Debevoise reserved sentencing, which could have included a five-year jail term and fines of $500,000.
It was believed at the time that Drill’s sentencing was delayed because he had agreed to turn state’s evidence and implicate that others were involved in his scheme.
At the time of Drill’s guilty plea almost two years ago, then U.S. Attorney Ralph Marra said that there were others involved in the fraud and “school officials who contracted with Circle who knew or should have known something of the fraud and often participated in it by assisting Drill and others.”
The state’s information stated that Circle System had submitted fake price quotes to schools, supplied schools with phony paperwork if work could not completed in a certain fiscal budget year, gave gifts and donations to schools and school purchasing officials, only to later bill for them and kept money when schools paid more than once for the same service.
In admitting his guilt, Drill said he was aware that other Circle System employees had provided school officials with false bids and estimates for reconditioning work that were made to appear coming from contractors that were competitors of Circle System.
Drill also admitted that Circle System misrepresented helmet testing data, not following the national safety guidelines that were put in place to prevent head-related injuries.
Jersey City did hundreds of thousands of dollars in business with Circle during Drill’s term of employment. Circle System handled the equipment reconditioning for all four Jersey City public high school football teams.
In November, it was learned that the FBI had begun to investigate several different northern New Jersey school districts, when Lyndhurst and Ramapo in Bergen County both received subpoenas to turn over documents and information regarding Circle System.
Now, the probe has apparently turned its focus on the Jersey City public schools.
Michael Venutolo, the director of health, physical education and athletics for the public schools, did not return phone calls. His secretary said that he was taking a vacation day on Friday.
A member of the Law Department for the Jersey City Board of Education said that they were going to further investigate the situation, reserving comment for the time being. — Jim Hague