the staff of the Ridgewood blog
Palisades Park NJ, the borough has filed a lawsuit against its former administrator, David Lorenzo, to recover nearly $300,000 in allegedly unauthorized payouts for unused sick and vacation time between 2015 and 2024.
According to the lawsuit, Lorenzo, who served as the borough’s business administrator from 2008 until his termination in 2024, improperly claimed and received $276,334.85 in compensation, which included $81,226.65 for unused sick time and $195,108.20 for unused vacation days.
Allegations of Misconduct
Officials claim Lorenzo used his position to authorize these payments in violation of state laws. A borough spokesperson, Sara Rossi, stated:
“David Lorenzo had a fiduciary duty to act in the best interest of taxpayers. Instead, he violated that trust by accepting funds he was not statutorily entitled to. This legal action aims to ensure these funds are returned to the borough and its residents.”
The lawsuit also accuses Lorenzo of crafting employment contracts for himself that were rubber-stamped by the borough’s governing body but violated state laws limiting municipal employee compensation.
Legal and Political Backlash
Lorenzo’s attorney, Richard Malagiere, called the lawsuit “frivolous,” alleging it was retaliation for Lorenzo’s own legal actions against the borough. He argues that the payouts in question were approved by the borough’s chief financial officer and governing body, including Mayor Chong “Paul” Kim.
Lorenzo is also pursuing two lawsuits against the borough: one for retaliation over political activities and another related to Open Public Records Act (OPRA) requests.
Findings from the 2021 Comptroller Report
The lawsuit is partly based on a 2021 state comptroller investigation, which criticized Palisades Park for improperly paying employees for unused sick and vacation time, violating a 2010 New Jersey law.
Key findings from the report include:
- $109,000 paid in 2018 to 27 employees for unused sick time.
- $95,000 paid in 2019 to 22 employees.
- Lorenzo’s contracts lacked limitations on sick leave payouts, allowing him to receive annual payments of $9,200 in 2018 and $9,500 in 2019.
- Lorenzo was entitled to a $160,000 terminal payout, which the comptroller deemed unlawful.
Borough’s Legal Stance
The borough seeks to recover the full amount, along with interest and legal fees, arguing Lorenzo’s actions violated his duties of good faith, fair dealing, and loyalty.
“While Lorenzo is the focus of this lawsuit, the borough continues to investigate other employees who may have received similar improper payments,” Rossi added.
What’s Next?
As this legal battle unfolds, residents are left questioning the oversight of municipal finances and how these issues went undetected for so long.
Stay tuned for updates on this developing story.
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this is the most f’ed up town in Bergen County
Hey, look how much police officers get for their sick time pay out in Ridgewood and what about their comp time,
I hope you’re not slandering the thin blue line in Ridgewood that’s keeping you safe.
Use them, or lose them is how it should be.
I don’t know I know Ridgewood very well and I must say Ridgewood is pretty screwed up.
Lorenzo is currently retaliating against other departments including the zoning board in the Boro and causing suffering to innocent property owners whose projects were already approved.