Wildwood Mayor Ernest Troiano Jr. and Deputy Mayor Steven Mikulski are heading back to court with an unusual defense: they say New Jersey prosecutors targeted them for political reasons when they were charged with fraudulently enrolling in state health insurance. Troiano returned to office and Mikulski won reelection in November 2023 even as the criminal case hung over their heads, and a state appellate panel has now cleared the way for a closer look at whether the prosecution was fair.
A Rare Legal Strategy Gets Its Day
According to NJ.com, the Appellate Division upheld a ruling from Superior Court Judge Christine Smith allowing a review of Troiano and Mikulski's selective-prosecution claims, and ordered the Attorney General's Office to disclose whether it investigated other towns and why their officials were not prosecuted for public corruption. Smith had found that the defendants deserved an opportunity to examine whether they were targeted for political reasons, even as she characterized their arguments as marginally sufficient. Such a defense is rarely used and faces steep hurdles, since authorities generally have wide latitude in decisions about whom to investigate and charge, per the same report.
The Attorney General's Office pushed back hard, asking the appeals court to overturn Smith's ruling and calling the request for investigative records a fishing expedition. Prosecutors said producing the documents would be onerous and fruitless, and that there was no evidence the Wildwood charges were pursued for improper reasons. A spokesperson for the Attorney General's Office declined to comment on the decision, the outlet reported.
Charges Tied to Health Insurance Enrollment
Troiano, Mikulski and former Wildwood Mayor Peter Byron were charged with health insurance fraud in 2022. As reported by NBC10 Philadelphia, none of the three were full-time employees of Wildwood, which is a requirement for enrollment, and all three faced second-degree theft by unlawful taking and third-degree tampering with public records charges. Troiano and Mikulski also face official misconduct and related counts, according to NJ.com's reporting.
Authorities alleged the three men held other jobs, had no set schedules and filed false timesheets certifying required work hours, and prosecutors said the defendants falsely represented their $30,000-a-year posts as full time in order to obtain benefits. The state alleges Wildwood and the State Health Benefits Program paid over $286,500 in premiums and claims on Troiano's behalf from July 2011 through December 2019, per NBC10. Troiano is accused of receiving benefits valued at more than $250,000, while Mikulski is accused of receiving benefits valued at more than $100,000, according to NJ.com. State Health Benefits Program plans can exceed $60,000 annually, the outlet noted.
A 2010 law requires elected officials seated after its effective date to work at least 35 hours a week to qualify for State Health Benefits Program insurance. The New Jersey Department of the Treasury states the requirement cannot be less than 35 hours per week for an appointed or elected official who becomes eligible after May 21, 2010. The 2010 and 2011 changes established work-hour requirements for eligibility.
Byron's Guilty Plea Left Others' Cases Pending
Byron, a Democrat, pleaded guilty in September 2024 to one count of second-degree theft by unlawful taking, along with fourth-degree falsifying or tampering with records and third-degree filing a fraudulent tax return, according to BreakingAC. Under the plea agreement, the state will recommend a three-year sentence on all charges, and the deal requires restitution and a lifetime ban from public office and employment, the outlet reported. Byron is awaiting sentencing. The state alleged Wildwood and the program paid over $608,900 in premiums and claims on his behalf from July 2011 through October 2021, per NBC10 Philadelphia.```
Byron's plea did not resolve the cases against Troiano, a Republican, and Mikulski, an independent. Their charges are still pending, BreakingAC reported. Troiano, who had been out of office since 2019, returned to office in November 2023, and Mikulski was reelected that same month as his running mate, leaving a majority of Wildwood's three-member governing board serving under indictment, according to NJ.com.
A Defense Built on Comparisons to Other Towns
Troiano and Mikulski argue they were selectively prosecuted while officials in other New Jersey towns also received the same kind of benefit, and their lawyers have cited NJ.com reporting that other governments had flouted the state health insurance rules since 2014. The outlet's own reporting identified 12 municipalities and three counties, including Old Bridge, Long Beach Township and Mercer County, that provided state benefits or payments for waiving benefits to officials covered by the 2010 law. More broadly, NJ.com's reporting found that more than a dozen New Jersey municipal and county governments granted potentially questionable benefits to elected officials over the prior decade, with Wildwood the only community where prosecutors pursued health insurance fraud charges. Officials in some towns and counties said confusing state rules led to the benefits and said they rescinded them after realizing the error, and several governments ended the perks for officials covered by full-time requirements after the newspaper's reporting.
The defense has also argued the charges were retaliation by former Democratic Gov. Phil Murphy's administration for a 2020 Wildwood political rally for Donald Trump, and claimed the case targeted local politicians who did not support the administration. Prosecutors have said Murphy had no involvement in the investigation and that the probe began before the Trump event, according to NJ.com. The defendants deny wrongdoing and maintain they were full-time workers. Troiano is represented by attorney Charles Nugent, while Mikulski is represented by attorney Christopher St. John, per the same report.
The case, formally captioned State of New Jersey v. Ernest V. Troiano Jr. and State of New Jersey v. Steven E. Mikulski, is pending in New Jersey Courts records in Cape May County. With the appellate ruling now in place, the closed-door review Smith ordered into whether authorities investigated other towns will determine how far the selective-prosecution argument can go — a rare test of a defense that, as NJ.com reported, faces steep legal hurdles even when judges allow it to proceed.
