Category Archives: Art Gallagher

Gallagher Update III

The following update on the Art Gallagher saga was left as a comment by Heraciltus on “Art Gallagher Turned a Dream Into A Nightmare For Betsy Penrose; Sweet deal on vending truck turned out to be a lemon” post earlier today.

According to Heraciltus, the MoreMonmouthMusings blogger had his bail hearing this morning in front of Judge Scully, where Gallagher and his lawyer were looking to have his $250,000 bail reduced with a 10% option applied.
According to the post Gallagher’s lawyer Michael Laffey only slightly succeeded in his plea to have Gallagher’s bail reduced. Heraciltus, who was present in the courtroom this morning, states that Judge Scully did reduce Art’s bail from $250,000 to $150,000. Unfortunately for Art however, Judge Scully would not consider allowing a 10% option and it looks as if Art will be staying behind bars for the foreseeable future.
Below is what Heraciltus wrote, i’ll be interested in reading what the Asbury Park Press has to say about this later:

Mike, Art Gallagher had a bail reduction hearing today before Judge Scully. I was at the hearing. This is what I saw and reported on Art’s blog …

Judge Scully lowered Art Gallagher’s bail to $150,000 without a 10% option. Art looked like someone punched him in the stomach when the judge issued his ruling. Art’s wife wept as the judge announced the lower bail. From the look on Art’ face, I don’t think Art or his family will be posting the new, lower bail.

The hearing was interesting to watch. Art was dressed in a green jump suit over a white thermal shirt. He was handcuffed and chained to to a fugitive from New York, some guy named Prisco. Art was very scared of the guy he was chained to. Art was required to stand in the jury box during the 10 minute proceeding.

Art’s lawyer, Michael Laffey, was out of his league. Despite the fact that the judge lowered the bail somewhat, Laffey was unable to answer some of the judge’s questions. The judge shook his head and seemed to laugh a little when Laffey suggested that repossessions often take place in the middle of the night and without going through the proper proceedures first. Laffey very much looked like the amatuer that he is. At one pointed Laffey started talking about a newspaper article that appeared in some Delaware newspaper while the judge rolled his eyes. I actually felt sorry for Michael Laffey. Laffey was literally trembling before and during the hearing. When the hearing was over, Laffey rushed out of the courtroom and stood in the hall. He did this without first consoling or even speaking with Art’s wife or supporters. Laffey looked liked he was going to throw up as he collected himself in that hallway. Art blew a kiss to his wife before being led out of the courtroom in chains. He looked like he was crying as they led him away.

I counted 5 people that looked like they were in the courtroom to support Art Gallagher. Art’s wife, Lori, sat next to an older man that I presume was Art’s father. Art’s wife also sat next to an older guy in a cheap suit. This guy was beyond creepy. He kept massaging Lori Gallagher’s neck and back. It was quite clear that Mrs. Gallagher was very uncomfortable with this guy touching her. There were a couple of older women that sat in the second row — an obese woman that read the paper the whole time and a skinny older lady who looked confused.

The prosecutor was a very professional black lady. She kicked Michael Laffey’s ass in that courtroom. The prosecutor pointed out that Art knew for about 30 days that he would be charged in Delaware. Art was invited by the cops in Delaware to turn himself in. Art refused to do so, forcing the Delaware cops to obtain the fugitive warrant. That fact that Art didn’t turn himself in when he had the chance to do so weighed heavily on the judge’s mind. The judge also pointed out that if Art were charged with these crimes in New Jersey, they would be Second Degree crimes. The judge pointed out that if convicted, Art Gallagher is facing many years in prison

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Filed under Art Gallagher, bail hearing, Delaware, forgery, fraud, Herraciltus, Monmouth County Jail, MoreMonmouthMusings, theft

Art Gallagher Turned a Dream Into A Nightmare For Betsy Penrose; Sweet deal on vending truck turned out to be a lemon

Most stories I’ve heard about nightmarish business dealings will at some point usually contain the observation, “If I had known then what I know now, I would have never done business with them.” Betsy Penrose’s account of her experiences with Art Gallagher, the blogger who currently resides in Monmouth County Jail, was no different. She included this remark when we sat down to discuss the lengthy and expensive turmoil she went through after entering a business agreement with Art. Unlike Art’s recent business activities in an unrelated fraud case in Delaware, Art’s treatment of Betsy has not been given any significant media attention. I thought more people should hear Betsy’s story, and I wanted this blog to provide her with a space to describe her ordeal.

Betsy’s experience with Art took place after she had been unemployed and searching for work, when she eventually decided that she wanted to start her own business. It was a business that she had long dreamed about but never gave much thought to, until it was evident that she was not going to find a job by the time her unemployment insurance ran out. After much discussion with her husband, Betsy decided that she would follow through on her long time dream of operating a food truck.

She started to research her dream by searching on Craig’s List, seeking information on what a food vending truck might cost. Those searches lead her to stumble upon an advertisement seeking individuals that would be interested in partnering up on the operation of one or more vending trucks. This potential opportunity peaked Betsy’s interest and it led her to Gallco Enterprises in Middletown and Art Gallagher, a meeting that turned her dream into a nearly two year long nightmare.

After a few months of back and forth communication and meetings between the two, Betsy thought it better if she just purchased the used vending truck from Art Gallagher and Gallco Enterprises, rather than entering into a further business relationship with him. She placed a $5000 deposit down on a vending truck and had to wait until February 2010, when she refinanced her home before she could give Gallagher another $5000 deposit to take the truck home.

On the day that she went to pick up the vending truck, Betsy was happy and excited to sign paperwork that appeared to be on the up and up, and get started on her new business of selling hotdogs and soup roadside.

It didn’t take long though for that happiness to wear off.

After starting up the truck and then pulling out onto the highway, Betsy noticed that none of the gauges on the dashboard were working. As a precaution, she stopped off to fill the gas tank at the nearest gas station before heading back to her home in Middlesex County. She was flabbergasted when the bill for the tank full of gas cost her $89; she had thought that Gallagher would have filled the tank as a courtesy.

Betsy was forced to stop several times on the way home because the truck was not running properly. The truck had difficulty climbing the incline of the Edison Bridge which spans the Raritan River. As she neared home, Betsy found herself stuck across 4 lanes of traffic after attempting to pull onto her street. The truck lost its steering before she got it home. She immediately called Gallagher to inform him of her situation. Gallagher told her to keep him posted and paid to have the steering fixed. During the course of the next few months however, the vending truck spent more time in the shop than on the road. Betsy Penrose, not even once, was ever able to serve a single hotdog or bowl of soup from the truck.

After giving Gallagher $10,000 and making 3 – payments on the truck, Betsy never gained possession of it. However, she had enough with the lemon that was sold to her, and requested that Gallagher refund her the monies that she had given him.

After several attempts at reclaiming her deposit, Gallagher repeatedly told her that she signed a valid contract and she would not receive any refunds.

Art’s obstructionism was not the only problem Betsy encountered. She contacted the Northern Monmouth County Chamber of Commerce (NMCC), but was told that they could not help her. Betsy’s feelings of frustration and helplessness from not having an operational vending truck and no source of income led her to an unconventional idea for possibly getting her deposits refunded on the vending truck. Betsy turned to the news media; she contacted Howard Thompson of WPIX Channel 11 News.

For those unfamiliar with Howard Thompson’s work, he produces a weekly segment titled “Help Me Howard”, where he helps those who feel they have suffered injustices or have been wronged in someway by unscrupulous, shady business owners or others that provide services, by confronting them on camera and demanding that they live up to the promises that were made to customers or clients.

After speaking with producers, it was decided that Howard Thompson, along with his “Help Me Howard” crew and Betsy, would confront Gallagher in his Middletown office one morning in April of 2010.

When they arrived at Gallco Enterprises, Thompson and his film crew were told that Gallagher was at the diner next store having coffee. As they walked through the entrance of the diner with cameras on, the crew had arrived in time to catch Art Gallagher attempting to flee the diner through the kitchen only to be turned back by employees and return to the booth at which he was sitting. When confronted by Howard Thompson and Betsy Penrose with repeated requests to return her money and make right on the vending truck, Gallagher stated that he had done nothing wrong and that the contract which Penrose had signed was valid. He then called police to get him out of the awkward situation he found himself in.

Before heading back to the studio, Howard Thompson assured Betsy in the parking lot that they had all the video they needed for his report and that his producers would be calling her about an airdate for the segment. When Betsy received the phone call from the producers later that day, she was told that her story would air the following day.

In her excitement to get the word out and expose Art Gallagher as a business person who was not to be trusted, Betsy Penrose made, what in hindsight, turned out to be a big mistake. Betsy called everyone that she could think of.

She called the Northern Monmouth County Chamber of Commerce (NMCC), the online newspaper The Atlantic Highlands Herald, the Two Rivers Times and any other local media or business group that she could think of. She even called the offices of the Monmouth County Democrats. Thompson himself was also promoting the segment on his “Help me Howard” facebook page.

The following day, word leaked back to Art Gallagher through his many friends at the NMCC and Atlantic Highlands Herald, that Betsy was contacting everyone to tune into that evening news. He went into defense mode and called the producers of the Howard Thompson’s “Help Me Howard” segment and WPIX to threaten legal action.

That night when Betsy turned on the news, looking to watch Thompson, Gallagher, and herself, she was dumbfounded and confused as to why the segment wasn’t aired. She called the producers the following day.

The producers assured her that the WPIX legal department signed off on the airing of the program segment but someone at the station had decided not to air it. When she pushed the matter further and questioned why someone would have pulled the segment after being approved by legal, she was told, “Let’s just say, Mr. Gallagher used all the right buzz words”.

Upset and disappointed, and feeling that Gallagher had robbed her once again, she decided that her final recourse was through the courts. Betsy cashed in her small pension that she had earned while working for the U.S. Postal Service, hired a lawyer and filed a civil suit against Gallco Enterprises to recoup her deposit and the 3 loan payments she had made on the vending truck.

Over the course of the next year, Gallagher drew out the court proceedings, requesting several postponements. It wasn’t until this past September 24th, that Betsy Penrose finally made it into a courtroom to face her adversary. However, Gallagher never showed up. The judge ruled in Betsy’s favor and awarded her triple damages, which equated to a judgment of more than $40,000 against Gallco Enterprises and Art Gallagher.

Betsy’s feelings of relief after the judgment were short lived. She quickly found out that, more than likely, she would never collect the money owed her. Gallagher had filed for Chapter 7-bankruptcy protection on July 14th, which seems to explain why he didn’t show up in court that day.

Penrose is not the only person that has gone to court with Gallagher this year. A quick Google search of court proceedings showed that Gallagher had been in court concerning other civil matters related to his business on 3 earlier occasions this year. He is also scheduled to be in court on Oct. 24th in yet another civil matter, but as he is currently awaiting extradition, it seems unlikely that case will proceed as scheduled.

Needless to say, Betsy deeply regrets getting involved with Gallagher and not checking him out fully before doing business with him. She has always considered herself a trusting person, who has always looked for the good in people as opposed to the bad. Never in her wildest dreams could she have thought that someone would take advantage of her in such a way as Art Gallagher had. It is a mistake that she learned the hard way, but it is a mistake she has vowed never to repeat.

What makes Betsy most upset about her experience is that she was ready to start her business when she bought the truck from him but the long fight over it killed her financially and affected her health. Her unemployment ran out, she amassed a large credit card debt and needed to refinance her mortgage while trying to recover from the setbacks that were caused by Gallagher. And due to the stress that she was under, Betsy spent two weeks hospitalized.

Walking back to her car, Betsy seemed to have resided herself to the fact that she may never recoup the money that she had given Gallagher. She has no money at this time available to hire an attorney in order to pursue a personal civil case against Art Gallagher, but hasn’t ruled out the possibility of doing so in the future. She wants people to know that her motivation for telling her story isn’t to be vindictive. She wants others to learn from her mistakes, so that they can learn from her unfortunate experience and be wary of, in her opinion, unscrupulous business people like Art Gallagher.

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Filed under Art Gallagher, Betsy Penrose, chapter 7 bankruptcy, Gallco Enterprises, help me howard, vending truck, WPIX News

Gallagher Update II

Somewhere around 8:30 pm last night Art Gallagher’s website was back online and issued a statement pertaining to his extradition hearing and his request to have his bail reduced.

The Asbury Park Press has also posted about Art’s day in court yesterday. You can read all about it if you are interested……Here

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Filed under Art Gallagher, Asbury Park Press, check fraud, extradition, forgery, Monmouth County Jail, MoreMonmouthMusings, theft

MoreMonmouthMusings Blog Taken Down

It would appear that sometime this morning that Art Gallagher’s blog has been taken down and is, at this time not operational.

The last posting to the blog made by a mysterious administrator was at 11:16 last night and was an awkward attempt to discuss a few local issues in 12th LD as reported by Eatontown Patch.
The post also attacks local republican Jim Sage, who has made it his mission in life to see that State Senator Jennifer Beck who is now seeking reelection in the newly created 11th LD, does not return to Trenton. Sage has a facebook page titled Dump State Senator Jennifer Beck that is a thorn in the side to Beck and disdained by many Republicans in Monmouth County.
No word on why the blog was shut down or when, if ever, it will return.

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Filed under arrested, Art Gallagher, Facebook, forgery, fraud, Jennifer Beck, Jim Sage, MoreMonmouthMusings, theft

Details Of MoreMonmouthMusings Blogger’s Arrest Beginning To Surface

A special hat tip goes out to comment poster Heraclitus for the heads up on the NewsRadio WGMD 92.7’s story on the arrest of MoreMonmouthMusings blogger Art Gallagher.

If the charges in this case stick I have to agree with Heraclitus, I think Art will be doing some serious jail time.

Below are the details of Gallagher’s arrest as posted online at NewsRadio WGMD:

DSP News Release: 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)


-J.C. Watson Bus Company, Townsend, DE
-Delaware Division of Motor Vehicles


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


-Theft Where the Property Value is $100,000 or More (2 counts)
-Forgery 3rd Degree (2 counts)

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 3rd 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.

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Filed under Art Gallagher, extradition, forgery, fraud, Gallco Enterprises, JC Watson Bus Company, Monmouth County Jail, NewsRadio WGMD, theft, Townsend DE.

APP Gallagher Update

The Asbury Park Press last night issues an update on the case against moremonmouthmusings blogger Art Gallagher.

As of last night he has not yet been extradited to Delaware and charges against him are beginning to be leaked:

…Delaware State Police Sgt. Paul Shavack said Gallagher, of Linden Avenue, will face two felony counts of theft (over $100,000 each) and two counts of forgery upon his arrival. He declined to discuss details until the 53-year-old is formally charged.

Detective Nicholas Terranova said on Monday that he was unsure when Gallagher would be brought to Delaware, but said the extradition is “in the works.”…

Good follow-up by Press reporter Dustin Racioppi

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Filed under Art Gallagher, Asbury Park Press, bloggers, check fraud, MoreMonmouthMusings, theft

Gallagher Issues Statement From Jail

Gee, I hope he didn’t have to waste his one phone call from jail on this post left on his blog a short while ago.

“As I am sure all my readers are now aware I was arrested late Friday evening on a warrant issued out of the State of Delaware. On the advice of my attorney I can not discuss the charges against me at this time other then to say that they are vigorously contested and that I did not commit theft.

Right now I am concentrating on securing my release from jail so that I can properly address these charges through my attorneys.

When I am released I intend to write about my experiences of the last few days.

I thank all of you who have expressed concern for me and my family and I assure you that we are doing fine given these difficult circumstances.”

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Filed under Art Gallagher, Delaware, fraud, jail, MoreMonmouthMusings, theft