Administrator Flotsam is named after the maritime term "flotsam and jetsam". Flotsam is the cargo and parts of a ship that float in the sea after a wreck, while jetsam is anything thrown overboard during distress that either sinks or washes ashore.
Flotsam is also the name of a character in the Disney movie The Little Mermaid, an eel minion who works for the sea witch Ursula along with another eel minion named Jetsam.
It's possible he is a criminal, as he drove Mr. Krabs on the sidewalk, and he could've been killed. It's not confirmed, however.