New Jersey Man Wanted In Connection With Bus Company Fraud

Location: J.C. Watson Bus Company, Townsend, DE

 

Date of Occurrence: Sunday, August 15, 2010 (reported 9/6/11)

 

Victims: 

 

-J.C. Watson Bus Company, Townsend, DE

-Delaware Division of Motor Vehicles

 

Suspect:   

 

-Arthur (Art) V. Gallagher 2^nd, Highlands, NJ

 

Charges:

 

-Theft Where the Property Value is $100,000 or More (2 counts)

-Forgery 3^rd Degree (2 counts)

 

Resume: 

New Castle, DE- Delaware State Police Fraud Unit detectives have obtained warrants on a 53 year old New Jersey man after he defrauded a Delaware Bus Company.

 

The investigation into this incident began on September 6, 2011 after the 52 year old owner of the JC Watson Bus Company located in Townsend, DE, contacted the state police fraud unit. The victim advised that in August of 2005 she had leased to purchase several school buses from the Wolfington Bus Company located in Exton, PA. The victim advised that the lease was arranged by Arthur V.  Gallagher through his company, Gallco Enterprises, located in Belford, New Jersey.  Gallco Enterprises is a vehicle and equipment leasing company. The victim then advised investigators that in August of 2010 she had paid off all 11 of the buses that she had leased however; she never received the titles for them.

 

When the victim contacted Arthur Gallagher about the bus titles, he was uncooperative and then refused to return her phone calls. It was later learned that Gallagher had financed the school buses that the victim had obtained through two separate banks, New World Bank and Sovereign Bank. The total value of the 11 buses was over $776,000.00.

 

The victim then contacted New World Bank and Sovereign Bank who advised her that Gallco Enterprises was behind on the payments to them. It was learned from the victim that her company had been awarded a contract to transport students for the Appoquinimink School District and as such, the State of Delaware paid Gallco Enterprises directly from the bus company’s profits. A review of the State of Delaware checks written to Gallco Enterprises from September of 2005 until May of 2010 revealed that Arthur Gallagher had endorsed checks which totaled over $776,000.00.

 

The victim then advised investigators that in February of 2011, she had responded to her company’s bus yard where she observed that all of her buses were now missing. It was then learned that on May 15, 2011 Arthur Gallagher had responded to the Delaware Division of Motor Vehicles and presented two fictitious letters with forged bank employee signatures advising that the liens against the 11 buses that the victim had leased through his company had been satisfied. With these letters, Gallagher was then able to obtain the titles to the 11 buses even though he did not actually own them. It was also learned that Gallagher had subsequently sold several of the buses back to the Wolfington Bus Company. 

 

Detectives have obtained warrants on Arthur Gallagher charging him with two counts each of Theft Where the Property is Valued at $100,000.00 or More and two counts of Forgery 3^rd Degree.

 

Arthur Gallagher was arrested on a fugitive warrant by the Highlands Police Department. He was then committed to the Monmouth County Jail for lack of $250,000.00 bail pending his extradition to Delaware.