Published on NorthJersey.com, Tuesday, April 28,2009
[HUMC, Coniglio, Sanzari, Bergen Dems, PMK, more]
Sanzari got years to pay his dumping bill
Tuesday, April 28, 2009
Last updated: Tuesday April 28, 2009, 10:07 AM
BY JEFF PILLETS
NorthJersey.com
STAFF WRITER
Firms owned by Joseph Sanzari, the prominent contractor with deep ties to Bergen County's ruling Democratic Party, dumped fill and construction debris at the Overpeck Park site for two years without being charged, while other haulers paid by the truckload.
The firms dumped well over 100,000 cubic yards of debris at the county-owned site before Bergen County officials even sent a bill, in October 2007.
Sanzari's trucks by that time had been coming to Overpeck since the spring of 2005 and had run up a $609,000 tab, delivering thousands of loads from publicly financed road and redevelopment jobs across North Jersey.
Scores of other haulers, by contrast, paid tipping fees as often as 10 times a month, records show, with most paying two or three times a month.
Even after Sanzari began to make payments, records show he maintained a significant balance. In fact, his companies still owed $320,000 in tipping fees when The Record first started to ask questions about the matter earlier this month. County officials said that Joseph M. Sanzari Inc. made payments of $150,000 and $18,000 the week of April 13. A second firm, Creamer-Sanzari, A Joint Venture, paid $152,000 last Friday.
Bergen County's failure to collect from Sanzari's companies came at a time when officials were struggling to finance skyrocketing expenses associated with the Overpeck project. More than $100 million in bond offerings and open-space tax reserves have already been dedicated to the project site in Leonia, Teaneck and Ridgefield Park, where a former garbage dump is being converted into what officials promise will be "Bergen County's Central Park."
Those officials are now declining to discuss details of their dealings with Sanzari, a leading Democratic contributor who is also the employer of state Sen. Paul A. Sarlo of Wood-Ridge.
The Bergen County Improvement Authority, which has responsibility for the project, said it was not equipped to keep tabs on such a large undertaking. The quasi-governmental agency outsourced oversight for the project to PMK Group, a politically connected project-management firm.
"There's basically a staff of three people over there," Keith Furlong, a BCIA spokesman, said last week. "They rely on hired professionals to do the oversight."
Furlong, in a prepared statement, said Overpeck truckers "occasionally" make late tipping-fee payments. "This is typical during such a large construction project," he said.
He added that the agency has full faith in the work of PMK of Cranford, which has received $6.7 million since being hired as project manager in 2005.
In a brief interview before issuing the statement, Furlong said he could not explain why the agency had waited more than two years to collect payments from one of Overpeck's major fill suppliers. He did not respond to further questions this week.
PMK officials also did not respond to requests for interviews last week. Discussing the issue earlier this month, PMK executive Bashar Assadi said the county, not PMK, made all decisions about the haulers who dumped at Overpeck.
"We aren't bill collectors," said Assadi, PMK's lead man at the Overpeck site. "We tell the county if someone owes, and after that it is up to them."
BCIA records show that all Overpeck documents, including billing invoices, are signed by Executive Director Edward Hynes. In addition to its $140,000-a-year chief, the BCIA has a board of directors that has approved a range of expensive add-ons that have pushed the project's price tag past $70 million, from a $45 million cost estimate just two years ago.
Neither Hynes nor BCIA Chairman Ronald O'Malley returned phone calls for this story.
Sanzari's office also declined to discuss their record at Overpeck. But in a statement released last Friday, a company official said the county sent Sanzari's firms only two tipping-fee bills in the past four years.
"As of today Joseph M. Sanzari Inc. and its affiliated companies does not owe any money to the BCIA," said Jo Ann M. Dellechiaie, the company's vice president. "At all times during the project, [Sanzari companies] followed all protocols regarding testing, sampling and invoicing as established by PMK Engineering."
She said that the Sanzari firms — which have supplied about 15 percent of all Overpeck fill — have paid as much per cubic yard as other haulers who dumped at Overpeck, and sometimes more.
Sanzari, of Ho-Ho-Kus, and his construction firms enjoy a reputation for timely completion of complex public projects, including the successful reconstruction of the once-snarled intersection of Routes 4 and 17.
He also is known as one of New Jersey's most visible pay-to-play contractors, one with deep ties to officials who set state policy and make key spending decisions. State records attribute more than $100,000 in contributions to New Jersey candidates and committees since 2006 to Joseph M. Sanzari Inc. and those associated with the firm.
Between 2006 and 2008, his companies were awarded more than $380 million in public contracts.
As the chief operating officer of Sanzari's construction firm, Sarlo has a direct role overseeing the firm's multimillion-dollar dealings with state and local public agencies. His work includes the endorsement of bid documents and the review of expenses in public projects.
Sarlo also had his Trenton aide, Chris Eilert, sign some Sanzari company documents as a witness. Eilert said he is a notary public and any signature for Sarlo's company was probably done "over dinner" with Sarlo, off government property.
Sarlo says his employment by Sanzari does not conflict with his part-time job in Trenton, where he sits as a majority member of key committees that control state spending on construction projects. He declined to speak about Sanzari's record at Overpeck.
"I'm not really allowed to say anything," Sarlo said.
Sarlo declined to respond when informed of data that show J. Fletcher Creamer of Hackensack, Sanzari's partner in the Joint Venture, made frequent and regular payments to the county for material trucked in by a firm he owns separate from Sanzari.
Overpeck project records show that in the fall of 2007, Sarlo stepped in to stop the county from an attempt to collect some of the money owed by Sanzari's companies.
In a letter to the BCIA, PMK had recommended that the county withhold $200,000 it owed to another Sanzari-related firm, North Bergen Rock Products, for clean rocks used at the Overpeck site.
But in conversations with PMK, the records show, Sarlo successfully argued that the county could not withhold payment because North Bergen Rock, legally, is a separate company.
Asked if the county challenged Sarlo's interpretation or sought any further negotiation on the debt, a PMK official said he was uncertain what happened next, if anything.
"Sarlo told us we couldn't deduct the payment and, as far as I know, that was the end of the matter," said Assadi, the project manager.
North Bergen Rock Products lists its business address as 90 W. Franklin St., Hackensack. It is the same address as Joseph M. Sanzari Inc., and at least two other Sanzari companies.
Overpeck project invoices show that the county does not have records detailing how much material Sanzari's crews trucked in from the Carlstadt project. An Oct. 31, 2007, letter shows that the Overpeck project manager instead estimated the amount once it was already in place, noting that it was spread over 6 acres to a depth of about 4 feet.
E-mail: pillets@northjersey.com
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or CLIPS endorsed or sponsored by the originator.)
Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts
Sunday, May 10, 2009
Hackensack UMC - Record - Deep Dem Connections
Published on NorthJersey.com, Sunday, April 26,2009
Tangled web of power: Hospital's influence reaches far
Sunday, April 26, 2009
Last updated: Sunday April 26, 2009, 11:43 AM
BY MARY JO LAYTON
NorthJersey.com
STAFF WRITER
The trial of former state Sen. Joseph Coniglio, convicted in a bribery scandal involving Hackensack University Medical Center, exposed the hospital’s reach into the State House — and put a spotlight on the wealthy, influential men who serve as the hospital’s power brokers.
Hackensack’s board members have connections and political muscle that extend far beyond the hospital. At black-tie fund-raisers and dinners at board member Joseph Sanzari’s Stony Hill Inn, business — hospital and otherwise — is on the agenda.
Various board members help to underwrite Bergen County’s Democratic machine and powerful lawmakers in Trenton. They’re awarded many of the region’s public construction contracts. They have the network — and the money — to smooth over zoning issues for the hospital. Testimony at the trial this month showed they supported the hiring of Coniglio, who was convicted of steering millions in grants to Hackensack while on the hospital’s payroll.
"A political machine" is how Assistant U.S. Attorney Thomas R. Calcagni described the hospital as he told jurors about Hackensack’s relationships with former acting governor and Senate President Richard Codey, state Sen. Paul Sarlo, Coniglio and others during the trial.
"There are board members who could pick up the phone and call the governor and say, ‘I need help on this,’ " Coniglio’s defense lawyer, Gerald Krovatin, said at the trial.
The hospital’s most powerful board members include major contractors Sanzari and J. Fletcher Creamer Jr., whose political roots run as deep as their wallets. Joseph Simunovich, who rose up through the Hudson County political arena to become chairman of the New Jersey Turnpike Authority and a fund-raiser for Sen. Bob Menendez, is also a key member of the hospital’s inner circle of decision makers. With their help, John P. Ferguson, the hospital’s president and CEO, has taken what was once a community hospital and built it into a $1 billion enterprise — the busiest and, in many ways, the best hospital in the state.
But while Hackensack’s board members are generous donors — and prolific fund-raisers — some are also making money off the hospital. It’s a practice that is frowned upon by health care experts and outright banned at some hospitals in North Jersey, where officials say it crosses an ethical line.
A few examples from the hospital’s federal tax filings for 2007, the latest available:
* Companies owned by Sanzari and Creamer are building a 975-car garage as part of the $135 million cancer center now under construction. Creamer was paid more than $475,000 by the hospital for construction services.
* The hospital paid more than $2 million to Progenitor Cell Therapy, a private stem cell research company owned in part by Ferguson; Dr. Andrew Pecora, director of the cancer center; board members Peter C. Gerhard, George T. Croonquist and Samuel Toscano Jr.; and the hospital’s chief operating officer, Robert C. Garrett.
* The hospital paid $2.5 million to lease space from Sanzari 2001, where board member David Sanzari — Joseph’s cousin — is a managing member with an ownership stake. It also spent $68,000 at the Marriott at Glenpointe hotel, which is owned by David Sanzari’s family.
* The DeCotiis law firm, one of the most influential in the state, made more than $1 million from the hospital. It is representing the hospital in the Coniglio case and guiding its campaign to reopen Pascack Valley Hospital in Westwood. During that time, Frank Huttle III, a partner, served on the board. He said Friday that he resigned recently.
* Universal Health, which operates a retail pharmacy at the hospital, received $200,000. At the time, Toscano was the company’s chief executive officer.
‘Squeaky clean’ is the goal
These types of arrangements trouble expert Jamie Orlikoff, who said hospitals nationally are moving away from allowing trustees to serve if they do business with their hospital.
"It doesn’t pass the smell test," said Orlikoff, a national adviser on governance and leadership to the American Hospital Association.
"When you govern a hospital, you’re governing the most important asset in the community," he said. "You should be squeaky clean."
Englewood Hospital and Medical Center had its general counsel step down from the board to avoid any conflict, said Douglas Duchek, the hospital’s president. Other than doctors, no other board members are being paid by the institution, he said.
State Sen. Loretta Weinberg, D-Teaneck, is so concerned about the potential for abuse that she introduced a bill in October that requires boards to disclose any potential or perceived conflict of interest. The bill also would require hospitals to solicit bids in awarding any contract for more than $25,000.
"If board members themselves are also making a profit from their association, that information should be fully divulged,’’ she said. "We can actually look at what’s grown up to be cozy relationships and decide whether they’re appropriate."
Assemblywoman Valerie Huttle, D-Englewood, sponsored the bill in the Legislature. Her husband is Frank Huttle, who said he resigned from the board because of time constraints.
Screen of privacy
Despite all the public money that goes to the hospital, it’s considered a private institution. Board meetings are closed and contracts are not disclosed. That makes it difficult to paint a full picture of the business of running the hospital.
The hospital has offered little in the way of comment since the Coniglio trial began. On Friday afternoon, however, it released this statement:
"Community-based institutions throughout the nation rely on the support of local civic and business leaders who serve on their governing boards. Members of the Hackensack University Medical Center board of governors are generous with their time and their financial support, but more importantly have gained the skills to govern a complex institution such as ours. An independent, nationally recognized authority on not-for-profit governance has counseled HUMC for more than five years. The HUMC board’s best practices model includes a rigorous annual disclosure statement and ongoing education. This conflicts of interest policy is enforced by a dedicated committee of the board of governors."
The Record called Creamer, Sanzari, Ferguson, Toscano and other board members for this article, but only one, Simunovich, would speak.
Simunovich said he was "saddened" by the Coniglio verdict, but said board members were not involved in hiring the senator.
"We didn’t sign off on him," he said Thursday. "Board members don’t hire or fire."
He said he had been in Florida and hadn’t paid attention to the trial. "All I got was a phone call that he was found guilty," he said.
There are "no politicians that I know of [on the board]," Simunovich said. "You certainly do have corporate representation, and of course you have people we count on for their advice and guidance."
He did not respond to a question about the possible ethical tightrope walked by board members who do business with the hospital.
Big winners in grant race
The Coniglio trial served as a primer on the backroom politics of New Jersey, where certain grants, known as "Christmas tree items," were doled out based on who has "the juice." By all accounts, Hackensack mastered the game and loomed large in Trenton. From 2004 to 2006, the hospital received $17.4 million for its cancer center, an extra $9 million in charity care above the millions it was already getting and $250,000 for the Joseph M. Sanzari Children’s Hospital. A $900,000 research grant was awarded to the private stem cell firm at the hospital and $70,000 went for a seat belt study.
Those awards dwarf the grants given to Hackensack’s competitors. The Valley Hospital in Ridgewood, for instance, took in less than $1 million a year in both state and federal grants during that time, according to the hospital’s tax filings.
Robert L. Torre, a hospital vice president who was given immunity to serve as the government’s star witness, testified that Ferguson authorized Coniglio’s hiring. Torre, who testified that he didn’t need Coniglio, said that after a conference call with Simunovich, Joseph Sanzari and Ferguson, it was clear Coniglio would be hired.
Coniglio, a former plumber, was paid $103,900 between May 2004 and February 2006 for a low-show "community relations" job at Hackensack. "Hackensack’s personal senator," as he was called at the trial, got a $500-a-month raise after the hospital received checks for state grants, prosecutors said.
But the trial showed the hospital’s reach went further than one legislator. Coniglio’s defense attorney said that Torre had "played Joe Coniglio like a fiddle" to get to Codey. A Dec. 13, 2005, report from Torre to his board of trustees credited Codey, in his role as acting governor, for a $9 million award for the cancer center, and noted $3 million of that grant would be earmarked for The Maureen Fund, established in honor of Codey’s aide, to fight ovarian cancer.
Weight to throw around
The power Hackensack wields comes as no surprise to other hospital executives.
"The trial hasn’t showed us anything we didn’t know. It’s not a level playing field," Duchek said. Englewood and Valley are battling Hackensack’s plan — and its considerable P.R. machine — to open a 128-bed hospital in Westwood, which they say could significantly harm the finances of other hospitals in the region.
Besides its board and its members’ connections, Hackensack has weight to throw around because it is Bergen County’s biggest business and one of the state’s top 10 employers. It boasts marquee physicians providing care that rivals that of the nation’s best hospitals.
Hackensack University Medical Center ranks high in nearly every national and state assessment of patient care. Founded in 1888 with 12 beds and as Bergen County’s first hospital, it now has 775 beds and 7,200 employees.
Its fund raising is the envy of the other hospitals in the region. Benefactors include Don Imus and his wife, Deirdre. Even in these tough times, the Hackensack University Medical Foundation reported a staggering $25.3 million in donations last year.
Hackensack’s president, Ferguson, is ranked 12th — just behind House Speaker Nancy Pelosi — in Modern Healthcare’s list of the most influential health care leaders in the nation.
The 60-year-old Park Ridge resident’s name came up often at the trial as the omnipotent boss involved in every decision. He was never charged or called to testify.
But the case may not be over for the hospital. When asked why hospital executives weren’t charged, Executive Assistant U.S. Attorney Michelle Brown said the investigation is continuing. "I think heads at HUMC should roll," jury foreman Walter Palkocki said. "Their culpability is significant."
Influential roles
At Hackensack, a few names — Simunovich, Ferguson, Sanzari, Creamer — keep showing up in influential roles on key boards. They serve as trustees of the Hackensack University Medical Center Foundation, the hospital’s fund-raising arm, as well as the hospital’s board of governors and Hillcrest Health Service System, the hospital’s parent corporation. Leading contractors and developers — Sanzari, Creamer and John C. Fowler — are on the building committee.
During the trial, a large photo of Simunovich seated next to Codey at a hospital fund-raiser was shown to jurors as an example of his access and influence.
In his closing statement, Coniglio’s attorney credited Simunovich and Sanzari with snaring a $500,000 state grant for the hospital without the help of lobbyists or legislators.
Simunovich is the former chairman of the board of governors and current chairman of the board of trustees for the Hackensack University Medical Center Foundation, the hospital’s fund-raising arm.
Simunovich, the former president of United Water Management and Services, was a Hudson County freeholder for 12 years, three as chairman. He served under three governors on the New Jersey Economic Development Authority and is the former chairman of the Bergen County Economic Development Corp., serving along with Ferguson and Creamer. The corporation was later part of a movement to create a bio-tech development area near the hospital.
Governor Corzine did not reappoint Simunovich to the Turnpike Authority in 2007 after he was investigated by the State Ethics Commission; as chairman, he had voted on millions in public contracts that were awarded to Sanzari while he accepted free rides on the contractor’s private jet. Simunovich paid a $50,000 fine, which was not an admission of guilt.
"Mr. Simunovich’s actions do not reflect the standards demanded by the governor for those who serve in his administration," Corzine’s then-spokesman Anthony Coley said.
During that probe, critics pointed out that a company run by Simunovich’s son-in-law landed a contract in 2005 to renovate a thrift shop run by the auxiliary of the hospital’s foundation. Torre said at the time that Simunovich had nothing to do with that decision.
Big contributor
Joseph Sanzari serves as first vice chairman, the No. 2 position on the hospital’s board of governors.
He’s a generous hospital contributor: He and his wife gave $10 million to the children’s and women’s hospital that bears their names. Just days before the trial began, Sanzari contributed an additional $1 million to Hackensack.
Sanzari, who started his business with two trucks and a backhoe, is a leader in highway construction. His companies have taken in more than $380 million in three years through contracts with public agencies, including the Turnpike Authority, Xanadu, and other entities, according to the pay-to-play databank prepared by the New Jersey Election Law Enforcement Commission. The Ho-Ho-Kus resident is such a prominent contractor that he was once serenaded by Luciano Pavarotti at a builders’ event in his honor.
Sanzari is part owner of both the Stony Hill Inn in Hackensack and the New Bridge Inn in New Milford, popular hangouts for Bergen County’s political elite. Sanzari, his companies and employees have contributed more than $100,000 to political campaigns and political action committees in the past three years, according to data the company provided to state elections regulators.
Among his top employees is state Sen. Paul Sarlo, also the mayor of Wood-Ridge. Sarlo oversees billions in public spending as a lead member of the Senate Budget and Appropriations Committee. As chairman of the Senate Judiciary Committee, he also controls key appointments to state agencies that have awarded millions in contracts to Sanzari’s firms.
Sarlo, chief operating officer for Sanzari’s construction company, testified at the trial that he was largely responsible for getting the $900,000 grant for the hospital’s cancer center. He said he also lobbied Codey for the $9 million cancer center grant and played a role in the $900,000 grant for stem cell research at the hospital.
Deep connections
J. Fletcher Creamer Jr., the chairman of the hospital’s board of governors and vice chairman of the foundation board, also has deep connections in Bergen County.
J. Fletcher Creamer & Son Inc. received more than $84 million in public contracts in Bergen County and elsewhere in New Jersey from 2006 to 2008. The company contributed $152,185 to candidates or committees last year, according to ELEC’s pay-to-play Web site.
Like the Sanzaris, Creamer family members are significant contributors to the hospital: Hackensack’s trauma center bears the name of Jeffrey M. Creamer, the late brother of the current board chairman.
Frank Huttle — who is running for mayor in Englewood — is a partner in the Teaneck-based DeCotiis law firm, whose senior management includes chief counsels to two former governors and has a client roster that ranges from EnCap Golf and Xanadu to scores of public entities. Two partners in the firm attended the Coniglio trial virtually every day to represent the hospital.
Federal tax filings for 2007 identify several other board members who work for companies that do business with the hospital. For instance, the hospital paid North Jersey Media Group, The Record’s parent company, $371,255 for advertising in 2007. Jennifer Borg, vice president and general counsel, serves on the hospital’s boards.
In tax filings, the hospital notes: "Any goods purchased or services performed are done so at fair market value rates pursuant to arms length negotiations." The hospital’s bylaws require members of the board to tell the hospital of potential conflicts of interest and to abstain from voting on such issues, but that information — and even the votes — are not public.
Power over local decisions
Hackensack’s power, its money and its vast web of connections isn’t just in Trenton. It also reaches into the local level and into Washington:
* When the hospital wanted to build a new cancer center over the objections of residents, it turned to Scarinci & Hollenbeck, the influential firm where then-Bergen County Democratic Chairman Joseph Ferriero was a partner. Two of the city’s five council members at the time were members of the county Democratic committee, a third was once a member, and a fourth had a job with the county. A political action committee run by the medical center had once donated thousands to this political team. In addition to those connections, the hospital paid the city $1 million and promised to take over its daytime ambulance services. Ferriero, who is now under federal indictment for conspiracy to commit fraud, notarized the deal, which was witnessed by Sanzari.
* Less than a week after the Bergen freeholders pledged not to take sides in the battle over whether Hackensack should be allowed to reopen Pascack Valley Hospital, they passed a unanimous resolution supporting Hackensack. That meeting was jammed with construction workers led by Richard "Buzzy" Dressel — a board member of Hackensack’s foundation who also is a leader of the county Democratic Party, the business manager of a local union itching for renovation work at Pascack and a partner in Sanzari’s New Bridge Inn. They grabbed all the seats before the session began, so that employees bused in from opposing hospitals were stuck in an overflow room.
* In Washington, Michael Hutton, a lobbyist who had done work for the hospital’s foundation, hosted a swanky reception to celebrate Menendez’s swearing in at the Senate in 2007. Hackensack hospital was among a handful of groups — including Verizon and AT&T — that funded the private celebration, where Simunovich and other partygoers feasted on shrimp and lobster pasta. When questioned later, Torre conceded that non-profit firms are barred from political activity. But this was not a political event, he said. "It was hosted by a third party," Torre said.
Union leader Ann Twomey said the trial "makes it clear there wasn’t enough oversight’’ at Hackensack.
"It’s a matter of making sure the scarce patient-care dollars are going to where they belong and that it’s not being influenced by those who are in the greatest position of power — the board of trustees," said Twomey, president of the Health Professional & Allied Employees, a union that represents employees at several area hospitals.
Twomey said Weinberg’s proposed legislation should outright ban trustees from doing any business with their hospital.
At The Valley Hospital, just one board member — its chairman, the president of a hospital supply company — does business with the hospital, said hospital President Audrey Meyers.
The chairman, Vincent Forlenza, who works at Becton, Dickinson and Co., does not participate in any decisions about purchasing supplies, she said.
The hospital directly bought $83,000 worth of supplies from the company and paid an additional $1.6 million as part of a group purchasing program, Meyers said.
"The Valley Hospital does not allow trustees to do business with the hospital unless a trustee works for a company where the value of our business is insignificant to that company," she said.
Others agree that hospitals need to stay away from mixing business with service on the board.
In the public’s mind, if a contractor who serves on the board is the successful bidder, there may be a perception of insider dealing, Orlikoff said.
"It’s exactly this sticky, one-hand-washes-the-other-hand mess you’re trying to avoid," he said.
Staff Writers Peter J. Sampson, Lindy Washburn, Mike Kelly, Jeff Pillets, Bob Groves and James M. O’Neill contributed to this article. E-mail: layton@northjersey.com
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or CLIPS endorsed or sponsored by the originator.)
Tangled web of power: Hospital's influence reaches far
Sunday, April 26, 2009
Last updated: Sunday April 26, 2009, 11:43 AM
BY MARY JO LAYTON
NorthJersey.com
STAFF WRITER
The trial of former state Sen. Joseph Coniglio, convicted in a bribery scandal involving Hackensack University Medical Center, exposed the hospital’s reach into the State House — and put a spotlight on the wealthy, influential men who serve as the hospital’s power brokers.
Hackensack’s board members have connections and political muscle that extend far beyond the hospital. At black-tie fund-raisers and dinners at board member Joseph Sanzari’s Stony Hill Inn, business — hospital and otherwise — is on the agenda.
Various board members help to underwrite Bergen County’s Democratic machine and powerful lawmakers in Trenton. They’re awarded many of the region’s public construction contracts. They have the network — and the money — to smooth over zoning issues for the hospital. Testimony at the trial this month showed they supported the hiring of Coniglio, who was convicted of steering millions in grants to Hackensack while on the hospital’s payroll.
"A political machine" is how Assistant U.S. Attorney Thomas R. Calcagni described the hospital as he told jurors about Hackensack’s relationships with former acting governor and Senate President Richard Codey, state Sen. Paul Sarlo, Coniglio and others during the trial.
"There are board members who could pick up the phone and call the governor and say, ‘I need help on this,’ " Coniglio’s defense lawyer, Gerald Krovatin, said at the trial.
The hospital’s most powerful board members include major contractors Sanzari and J. Fletcher Creamer Jr., whose political roots run as deep as their wallets. Joseph Simunovich, who rose up through the Hudson County political arena to become chairman of the New Jersey Turnpike Authority and a fund-raiser for Sen. Bob Menendez, is also a key member of the hospital’s inner circle of decision makers. With their help, John P. Ferguson, the hospital’s president and CEO, has taken what was once a community hospital and built it into a $1 billion enterprise — the busiest and, in many ways, the best hospital in the state.
But while Hackensack’s board members are generous donors — and prolific fund-raisers — some are also making money off the hospital. It’s a practice that is frowned upon by health care experts and outright banned at some hospitals in North Jersey, where officials say it crosses an ethical line.
A few examples from the hospital’s federal tax filings for 2007, the latest available:
* Companies owned by Sanzari and Creamer are building a 975-car garage as part of the $135 million cancer center now under construction. Creamer was paid more than $475,000 by the hospital for construction services.
* The hospital paid more than $2 million to Progenitor Cell Therapy, a private stem cell research company owned in part by Ferguson; Dr. Andrew Pecora, director of the cancer center; board members Peter C. Gerhard, George T. Croonquist and Samuel Toscano Jr.; and the hospital’s chief operating officer, Robert C. Garrett.
* The hospital paid $2.5 million to lease space from Sanzari 2001, where board member David Sanzari — Joseph’s cousin — is a managing member with an ownership stake. It also spent $68,000 at the Marriott at Glenpointe hotel, which is owned by David Sanzari’s family.
* The DeCotiis law firm, one of the most influential in the state, made more than $1 million from the hospital. It is representing the hospital in the Coniglio case and guiding its campaign to reopen Pascack Valley Hospital in Westwood. During that time, Frank Huttle III, a partner, served on the board. He said Friday that he resigned recently.
* Universal Health, which operates a retail pharmacy at the hospital, received $200,000. At the time, Toscano was the company’s chief executive officer.
‘Squeaky clean’ is the goal
These types of arrangements trouble expert Jamie Orlikoff, who said hospitals nationally are moving away from allowing trustees to serve if they do business with their hospital.
"It doesn’t pass the smell test," said Orlikoff, a national adviser on governance and leadership to the American Hospital Association.
"When you govern a hospital, you’re governing the most important asset in the community," he said. "You should be squeaky clean."
Englewood Hospital and Medical Center had its general counsel step down from the board to avoid any conflict, said Douglas Duchek, the hospital’s president. Other than doctors, no other board members are being paid by the institution, he said.
State Sen. Loretta Weinberg, D-Teaneck, is so concerned about the potential for abuse that she introduced a bill in October that requires boards to disclose any potential or perceived conflict of interest. The bill also would require hospitals to solicit bids in awarding any contract for more than $25,000.
"If board members themselves are also making a profit from their association, that information should be fully divulged,’’ she said. "We can actually look at what’s grown up to be cozy relationships and decide whether they’re appropriate."
Assemblywoman Valerie Huttle, D-Englewood, sponsored the bill in the Legislature. Her husband is Frank Huttle, who said he resigned from the board because of time constraints.
Screen of privacy
Despite all the public money that goes to the hospital, it’s considered a private institution. Board meetings are closed and contracts are not disclosed. That makes it difficult to paint a full picture of the business of running the hospital.
The hospital has offered little in the way of comment since the Coniglio trial began. On Friday afternoon, however, it released this statement:
"Community-based institutions throughout the nation rely on the support of local civic and business leaders who serve on their governing boards. Members of the Hackensack University Medical Center board of governors are generous with their time and their financial support, but more importantly have gained the skills to govern a complex institution such as ours. An independent, nationally recognized authority on not-for-profit governance has counseled HUMC for more than five years. The HUMC board’s best practices model includes a rigorous annual disclosure statement and ongoing education. This conflicts of interest policy is enforced by a dedicated committee of the board of governors."
The Record called Creamer, Sanzari, Ferguson, Toscano and other board members for this article, but only one, Simunovich, would speak.
Simunovich said he was "saddened" by the Coniglio verdict, but said board members were not involved in hiring the senator.
"We didn’t sign off on him," he said Thursday. "Board members don’t hire or fire."
He said he had been in Florida and hadn’t paid attention to the trial. "All I got was a phone call that he was found guilty," he said.
There are "no politicians that I know of [on the board]," Simunovich said. "You certainly do have corporate representation, and of course you have people we count on for their advice and guidance."
He did not respond to a question about the possible ethical tightrope walked by board members who do business with the hospital.
Big winners in grant race
The Coniglio trial served as a primer on the backroom politics of New Jersey, where certain grants, known as "Christmas tree items," were doled out based on who has "the juice." By all accounts, Hackensack mastered the game and loomed large in Trenton. From 2004 to 2006, the hospital received $17.4 million for its cancer center, an extra $9 million in charity care above the millions it was already getting and $250,000 for the Joseph M. Sanzari Children’s Hospital. A $900,000 research grant was awarded to the private stem cell firm at the hospital and $70,000 went for a seat belt study.
Those awards dwarf the grants given to Hackensack’s competitors. The Valley Hospital in Ridgewood, for instance, took in less than $1 million a year in both state and federal grants during that time, according to the hospital’s tax filings.
Robert L. Torre, a hospital vice president who was given immunity to serve as the government’s star witness, testified that Ferguson authorized Coniglio’s hiring. Torre, who testified that he didn’t need Coniglio, said that after a conference call with Simunovich, Joseph Sanzari and Ferguson, it was clear Coniglio would be hired.
Coniglio, a former plumber, was paid $103,900 between May 2004 and February 2006 for a low-show "community relations" job at Hackensack. "Hackensack’s personal senator," as he was called at the trial, got a $500-a-month raise after the hospital received checks for state grants, prosecutors said.
But the trial showed the hospital’s reach went further than one legislator. Coniglio’s defense attorney said that Torre had "played Joe Coniglio like a fiddle" to get to Codey. A Dec. 13, 2005, report from Torre to his board of trustees credited Codey, in his role as acting governor, for a $9 million award for the cancer center, and noted $3 million of that grant would be earmarked for The Maureen Fund, established in honor of Codey’s aide, to fight ovarian cancer.
Weight to throw around
The power Hackensack wields comes as no surprise to other hospital executives.
"The trial hasn’t showed us anything we didn’t know. It’s not a level playing field," Duchek said. Englewood and Valley are battling Hackensack’s plan — and its considerable P.R. machine — to open a 128-bed hospital in Westwood, which they say could significantly harm the finances of other hospitals in the region.
Besides its board and its members’ connections, Hackensack has weight to throw around because it is Bergen County’s biggest business and one of the state’s top 10 employers. It boasts marquee physicians providing care that rivals that of the nation’s best hospitals.
Hackensack University Medical Center ranks high in nearly every national and state assessment of patient care. Founded in 1888 with 12 beds and as Bergen County’s first hospital, it now has 775 beds and 7,200 employees.
Its fund raising is the envy of the other hospitals in the region. Benefactors include Don Imus and his wife, Deirdre. Even in these tough times, the Hackensack University Medical Foundation reported a staggering $25.3 million in donations last year.
Hackensack’s president, Ferguson, is ranked 12th — just behind House Speaker Nancy Pelosi — in Modern Healthcare’s list of the most influential health care leaders in the nation.
The 60-year-old Park Ridge resident’s name came up often at the trial as the omnipotent boss involved in every decision. He was never charged or called to testify.
But the case may not be over for the hospital. When asked why hospital executives weren’t charged, Executive Assistant U.S. Attorney Michelle Brown said the investigation is continuing. "I think heads at HUMC should roll," jury foreman Walter Palkocki said. "Their culpability is significant."
Influential roles
At Hackensack, a few names — Simunovich, Ferguson, Sanzari, Creamer — keep showing up in influential roles on key boards. They serve as trustees of the Hackensack University Medical Center Foundation, the hospital’s fund-raising arm, as well as the hospital’s board of governors and Hillcrest Health Service System, the hospital’s parent corporation. Leading contractors and developers — Sanzari, Creamer and John C. Fowler — are on the building committee.
During the trial, a large photo of Simunovich seated next to Codey at a hospital fund-raiser was shown to jurors as an example of his access and influence.
In his closing statement, Coniglio’s attorney credited Simunovich and Sanzari with snaring a $500,000 state grant for the hospital without the help of lobbyists or legislators.
Simunovich is the former chairman of the board of governors and current chairman of the board of trustees for the Hackensack University Medical Center Foundation, the hospital’s fund-raising arm.
Simunovich, the former president of United Water Management and Services, was a Hudson County freeholder for 12 years, three as chairman. He served under three governors on the New Jersey Economic Development Authority and is the former chairman of the Bergen County Economic Development Corp., serving along with Ferguson and Creamer. The corporation was later part of a movement to create a bio-tech development area near the hospital.
Governor Corzine did not reappoint Simunovich to the Turnpike Authority in 2007 after he was investigated by the State Ethics Commission; as chairman, he had voted on millions in public contracts that were awarded to Sanzari while he accepted free rides on the contractor’s private jet. Simunovich paid a $50,000 fine, which was not an admission of guilt.
"Mr. Simunovich’s actions do not reflect the standards demanded by the governor for those who serve in his administration," Corzine’s then-spokesman Anthony Coley said.
During that probe, critics pointed out that a company run by Simunovich’s son-in-law landed a contract in 2005 to renovate a thrift shop run by the auxiliary of the hospital’s foundation. Torre said at the time that Simunovich had nothing to do with that decision.
Big contributor
Joseph Sanzari serves as first vice chairman, the No. 2 position on the hospital’s board of governors.
He’s a generous hospital contributor: He and his wife gave $10 million to the children’s and women’s hospital that bears their names. Just days before the trial began, Sanzari contributed an additional $1 million to Hackensack.
Sanzari, who started his business with two trucks and a backhoe, is a leader in highway construction. His companies have taken in more than $380 million in three years through contracts with public agencies, including the Turnpike Authority, Xanadu, and other entities, according to the pay-to-play databank prepared by the New Jersey Election Law Enforcement Commission. The Ho-Ho-Kus resident is such a prominent contractor that he was once serenaded by Luciano Pavarotti at a builders’ event in his honor.
Sanzari is part owner of both the Stony Hill Inn in Hackensack and the New Bridge Inn in New Milford, popular hangouts for Bergen County’s political elite. Sanzari, his companies and employees have contributed more than $100,000 to political campaigns and political action committees in the past three years, according to data the company provided to state elections regulators.
Among his top employees is state Sen. Paul Sarlo, also the mayor of Wood-Ridge. Sarlo oversees billions in public spending as a lead member of the Senate Budget and Appropriations Committee. As chairman of the Senate Judiciary Committee, he also controls key appointments to state agencies that have awarded millions in contracts to Sanzari’s firms.
Sarlo, chief operating officer for Sanzari’s construction company, testified at the trial that he was largely responsible for getting the $900,000 grant for the hospital’s cancer center. He said he also lobbied Codey for the $9 million cancer center grant and played a role in the $900,000 grant for stem cell research at the hospital.
Deep connections
J. Fletcher Creamer Jr., the chairman of the hospital’s board of governors and vice chairman of the foundation board, also has deep connections in Bergen County.
J. Fletcher Creamer & Son Inc. received more than $84 million in public contracts in Bergen County and elsewhere in New Jersey from 2006 to 2008. The company contributed $152,185 to candidates or committees last year, according to ELEC’s pay-to-play Web site.
Like the Sanzaris, Creamer family members are significant contributors to the hospital: Hackensack’s trauma center bears the name of Jeffrey M. Creamer, the late brother of the current board chairman.
Frank Huttle — who is running for mayor in Englewood — is a partner in the Teaneck-based DeCotiis law firm, whose senior management includes chief counsels to two former governors and has a client roster that ranges from EnCap Golf and Xanadu to scores of public entities. Two partners in the firm attended the Coniglio trial virtually every day to represent the hospital.
Federal tax filings for 2007 identify several other board members who work for companies that do business with the hospital. For instance, the hospital paid North Jersey Media Group, The Record’s parent company, $371,255 for advertising in 2007. Jennifer Borg, vice president and general counsel, serves on the hospital’s boards.
In tax filings, the hospital notes: "Any goods purchased or services performed are done so at fair market value rates pursuant to arms length negotiations." The hospital’s bylaws require members of the board to tell the hospital of potential conflicts of interest and to abstain from voting on such issues, but that information — and even the votes — are not public.
Power over local decisions
Hackensack’s power, its money and its vast web of connections isn’t just in Trenton. It also reaches into the local level and into Washington:
* When the hospital wanted to build a new cancer center over the objections of residents, it turned to Scarinci & Hollenbeck, the influential firm where then-Bergen County Democratic Chairman Joseph Ferriero was a partner. Two of the city’s five council members at the time were members of the county Democratic committee, a third was once a member, and a fourth had a job with the county. A political action committee run by the medical center had once donated thousands to this political team. In addition to those connections, the hospital paid the city $1 million and promised to take over its daytime ambulance services. Ferriero, who is now under federal indictment for conspiracy to commit fraud, notarized the deal, which was witnessed by Sanzari.
* Less than a week after the Bergen freeholders pledged not to take sides in the battle over whether Hackensack should be allowed to reopen Pascack Valley Hospital, they passed a unanimous resolution supporting Hackensack. That meeting was jammed with construction workers led by Richard "Buzzy" Dressel — a board member of Hackensack’s foundation who also is a leader of the county Democratic Party, the business manager of a local union itching for renovation work at Pascack and a partner in Sanzari’s New Bridge Inn. They grabbed all the seats before the session began, so that employees bused in from opposing hospitals were stuck in an overflow room.
* In Washington, Michael Hutton, a lobbyist who had done work for the hospital’s foundation, hosted a swanky reception to celebrate Menendez’s swearing in at the Senate in 2007. Hackensack hospital was among a handful of groups — including Verizon and AT&T — that funded the private celebration, where Simunovich and other partygoers feasted on shrimp and lobster pasta. When questioned later, Torre conceded that non-profit firms are barred from political activity. But this was not a political event, he said. "It was hosted by a third party," Torre said.
Union leader Ann Twomey said the trial "makes it clear there wasn’t enough oversight’’ at Hackensack.
"It’s a matter of making sure the scarce patient-care dollars are going to where they belong and that it’s not being influenced by those who are in the greatest position of power — the board of trustees," said Twomey, president of the Health Professional & Allied Employees, a union that represents employees at several area hospitals.
Twomey said Weinberg’s proposed legislation should outright ban trustees from doing any business with their hospital.
At The Valley Hospital, just one board member — its chairman, the president of a hospital supply company — does business with the hospital, said hospital President Audrey Meyers.
The chairman, Vincent Forlenza, who works at Becton, Dickinson and Co., does not participate in any decisions about purchasing supplies, she said.
The hospital directly bought $83,000 worth of supplies from the company and paid an additional $1.6 million as part of a group purchasing program, Meyers said.
"The Valley Hospital does not allow trustees to do business with the hospital unless a trustee works for a company where the value of our business is insignificant to that company," she said.
Others agree that hospitals need to stay away from mixing business with service on the board.
In the public’s mind, if a contractor who serves on the board is the successful bidder, there may be a perception of insider dealing, Orlikoff said.
"It’s exactly this sticky, one-hand-washes-the-other-hand mess you’re trying to avoid," he said.
Staff Writers Peter J. Sampson, Lindy Washburn, Mike Kelly, Jeff Pillets, Bob Groves and James M. O’Neill contributed to this article. E-mail: layton@northjersey.com
Online story here. Archived here.
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(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or CLIPS endorsed or sponsored by the originator.)
Thursday, October 09, 2008
Unauthorized municipal expenditures - Record - Christie subpoenas Paramus records
Published in the Bergen Record, Monday, October 6, 2008
[Funds transferred without Council approval; Christie subpoenas]
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html
Online story here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
[Funds transferred without Council approval; Christie subpoenas]
Affordable housing funds shifted
Monday, October 6, 2008
Last updated: Monday October 6, 2008, EDT 6:43 AM
Last updated: Monday October 6, 2008, EDT 6:43 AM
STAFF WRITER
Paramus Mayor James Tedesco authorized the transfer of nearly $4 million in affordable housing funds without obtaining the Borough Council's approval, an apparent violation of affordable housing rules, public records show.
Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.
Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.
Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough's spokesman.
"If the borough did not adopt any specific resolutions, this was an oversight," Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.
The U.S. Attorney's Office has served at least two subpoenas related to the borough's affordable housing program. The non-profit received one in August and the borough received one in July.
It is unclear what specifically drew federal attention.
Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.
The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.
A significant portion of the project's funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.
"The town council authorizes expenditures," he said. "The CFO would ultimately execute them."
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.
"When it came to affordable housing, I saw virtually nothing," Gunderson said.
The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.
In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account "as per the agreement approved by Dennis J. Oury LLC."
Oury was Paramus' borough attorney in 2004. State records also list him as the registered agent for PAHC.
State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.
Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
"All the contributions should be shown," she said. "It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up."
The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury's attorney, Gerald Krovatin, did not return calls for comment.
The accountant who handled PAHC's 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.
After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.
The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.
Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:
Other records obtained from the state mortgage agency show that the development fee went to Steamboat.
A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa's interest in Penwal or Paramus Affordable Development LP. Pensa's signature appears on that financial disclosure statement.
In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.
Bergen County's United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.
"HMFA has to bless it each step of the way," he said. "Otherwise, the money wouldn't flow."
E-mail: gartland@northjersey.com
Find this article at: Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.
Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.
Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough's spokesman.
"If the borough did not adopt any specific resolutions, this was an oversight," Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.
The U.S. Attorney's Office has served at least two subpoenas related to the borough's affordable housing program. The non-profit received one in August and the borough received one in July.
It is unclear what specifically drew federal attention.
Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.
The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.
A significant portion of the project's funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.
"The town council authorizes expenditures," he said. "The CFO would ultimately execute them."
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.
$3.6M mystery
Council members who served in 2004 also did not recall voting to release the $3.6 million. Former council members Sandra Gunderson, Joe D'Ambrozio and Connie Wagner, who is now an assemblywoman, said they did not remember allowing that sum for affordable housing."When it came to affordable housing, I saw virtually nothing," Gunderson said.
The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.
In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account "as per the agreement approved by Dennis J. Oury LLC."
Oury was Paramus' borough attorney in 2004. State records also list him as the registered agent for PAHC.
State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.
Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
"All the contributions should be shown," she said. "It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up."
Oury involvement
Oury resigned as counsel for the Bergen County Democratic Organization last month after he and BCDO Chairman Joseph Ferriero were indicted by a federal grand jury on eight counts of fraud conspiracy not related to Paramus.The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury's attorney, Gerald Krovatin, did not return calls for comment.
The accountant who handled PAHC's 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.
46-unit project
The U.S. Department of Housing and Urban Development slapped Katchen with a one-year suspension from federal housing work in 1990 after the Passaic Housing Authority misspent $1.7 million in taxpayer money. He was the authority's accountant.After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.
The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.
Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:
* Penwal Affordable Housing Corp. (non-profit): Walsh and Laury Pensa, directors.Steamboat received a $976,500 development fee from Paramus Affordable Development for a project with an $8.1 million budget, according to records provided by the state. Canyon received at least $44,000, and Summit took in at least $5,000.
* Canyon Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Summit Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Steamboat Corp. (for profit): Walsh, president; Pensa, agent and incorporator.
Development fee
In a financial disclosure form filed with the state's Housing Mortgage and Finance Agency, Walsh wrote that Penwal — which, according to its tax form, has "implemented and developed low-income housing projects in Dumont, Garfield, Jersey City and Paramus" — would get the development fee. He did not mention his interest in Steamboat on the form.Other records obtained from the state mortgage agency show that the development fee went to Steamboat.
A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa's interest in Penwal or Paramus Affordable Development LP. Pensa's signature appears on that financial disclosure statement.
In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.
Bergen County's United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.
"HMFA has to bless it each step of the way," he said. "Otherwise, the money wouldn't flow."
E-mail: gartland@northjersey.com
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html
Online story here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
Friday, March 07, 2008
Contracts - Trenton Times - Padding contracts without approval
Published in the Trenton Times, Thursday, March 06, 2008
State A.G. probes Hamilton contracts
Gilmore administration's practices questioned
BY DARRYL R. ISHERWOOD
HAMILTON -- Investigators from the state Attorney General's Office are examining the way the previous township administration handled construction contracts amid allegations that projects were expanded without proper approvals, township officials revealed this week.
The revelation came after township Public Works Inspector Mitch Kirkuff told the council at a meeting Tuesday that "at least tens of thousands of dollars and possibly hundreds of thousands" had been added to local paving and road projects in past years for additional work without documentation or council approval.
If true, the practice would violate public contract laws, Business Administrator Bill Guhl said.
The inspector told council members the township's files are riddled with inspection reports that show the additional construction, along with comments from various inspectors who refused to sign off on the added work.
In response to the allegations, Guhl reminded Kirkuff and the council members of the ongoing state Attorney General's investigation under way since January, saying the add-ons to construction projects were being looked at.
"Mitch and I have spoken about this already and I can tell you that this consideration is part of the investigation," said Guhl.
The state Attorney General's Office has not confirmed the investigation.
Reached yesterday, Lloyd Jacobs, who formerly headed the planning, engineering and inspections department, acknowledged that change orders were used but said there was nothing wrong with the way the contracts were handled.
He said the change orders were often used to accommodate requests from the public.
"The last administration, I know, made some significant improvements in contract administration," he said. "Those improvements resulted in significant efficiencies, cost savings and more work being done for the public for a given amount of money."
Change orders were put together at the end of a project and were given to the council once the project was complete, Jacobs said.
"From my vantage point I believe what we did was very much in the public interest and I do know we had some major efficiencies that we put in place," he said.
Jacobs also defended the administration, saying that in 1999, the year before Mayor Glen D. Gilmore took office, there were more than $1 million in change orders on public projects.
Jacobs said change orders dropped significantly under the Gilmore administration.
Overall, he said, his department had saved money on contracts during the eight years of the Gilmore administration.
Kirkuff said he had no intention of being a whistleblower, but said he didn't feel he had a choice once council began asking questions.
"I really just wanted to bring to council's attention that sidewalk repairs had been done and paid for by the township and that it wasn't part of the township's responsibilities to take care of that, it's the homeowners' responsibility," he said. "But they asked questions and I'm not going to lie to them."
Although the state Attorney General's Office has not confirmed the investigation sources have told The Times that investigators have been in the municipal building since January. FBI agents have also been in the building, sources have confirmed.
Information on what investigators have been probing for has been scarce, but several employees have been interviewed, officials have said, and the questions have focused, in part, on the financial practices of Gilmore's administration.
This is the first indication that the engineering department is also part of the scope, but Council President Dennis Pone said while he has not been informed specifically about the investigation, he is not surprised.
"I'm not surprised at any of it," Pone said. "I'm not surprised that anyone would be included in any investigation considering what we now know about how the past administration conducted business."
Pone said the council had requested investigations by county, state and federal officials at various times over the past year.
"Apparently it is finally being done by somebody," he said. "We asked for it and we welcome it."
Contact Darryl Isherwood at Disherwood@njtimes.com or (609) 989-5708.
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
State A.G. probes Hamilton contracts
Gilmore administration's practices questioned
BY DARRYL R. ISHERWOOD
HAMILTON -- Investigators from the state Attorney General's Office are examining the way the previous township administration handled construction contracts amid allegations that projects were expanded without proper approvals, township officials revealed this week.
The revelation came after township Public Works Inspector Mitch Kirkuff told the council at a meeting Tuesday that "at least tens of thousands of dollars and possibly hundreds of thousands" had been added to local paving and road projects in past years for additional work without documentation or council approval.
If true, the practice would violate public contract laws, Business Administrator Bill Guhl said.
The inspector told council members the township's files are riddled with inspection reports that show the additional construction, along with comments from various inspectors who refused to sign off on the added work.
In response to the allegations, Guhl reminded Kirkuff and the council members of the ongoing state Attorney General's investigation under way since January, saying the add-ons to construction projects were being looked at.
"Mitch and I have spoken about this already and I can tell you that this consideration is part of the investigation," said Guhl.
The state Attorney General's Office has not confirmed the investigation.
Reached yesterday, Lloyd Jacobs, who formerly headed the planning, engineering and inspections department, acknowledged that change orders were used but said there was nothing wrong with the way the contracts were handled.
He said the change orders were often used to accommodate requests from the public.
"The last administration, I know, made some significant improvements in contract administration," he said. "Those improvements resulted in significant efficiencies, cost savings and more work being done for the public for a given amount of money."
Change orders were put together at the end of a project and were given to the council once the project was complete, Jacobs said.
"From my vantage point I believe what we did was very much in the public interest and I do know we had some major efficiencies that we put in place," he said.
Jacobs also defended the administration, saying that in 1999, the year before Mayor Glen D. Gilmore took office, there were more than $1 million in change orders on public projects.
Jacobs said change orders dropped significantly under the Gilmore administration.
Overall, he said, his department had saved money on contracts during the eight years of the Gilmore administration.
Kirkuff said he had no intention of being a whistleblower, but said he didn't feel he had a choice once council began asking questions.
"I really just wanted to bring to council's attention that sidewalk repairs had been done and paid for by the township and that it wasn't part of the township's responsibilities to take care of that, it's the homeowners' responsibility," he said. "But they asked questions and I'm not going to lie to them."
Although the state Attorney General's Office has not confirmed the investigation sources have told The Times that investigators have been in the municipal building since January. FBI agents have also been in the building, sources have confirmed.
Information on what investigators have been probing for has been scarce, but several employees have been interviewed, officials have said, and the questions have focused, in part, on the financial practices of Gilmore's administration.
This is the first indication that the engineering department is also part of the scope, but Council President Dennis Pone said while he has not been informed specifically about the investigation, he is not surprised.
"I'm not surprised at any of it," Pone said. "I'm not surprised that anyone would be included in any investigation considering what we now know about how the past administration conducted business."
Pone said the council had requested investigations by county, state and federal officials at various times over the past year.
"Apparently it is finally being done by somebody," he said. "We asked for it and we welcome it."
Contact Darryl Isherwood at Disherwood@njtimes.com or (609) 989-5708.
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
Sunday, December 30, 2007
EnCap - Bergen Record - Wisler-Robinson connections laid out
Published in the Bergen Record, Sunday, December 23, 2007
How EnCap pair played winning hand
By JEFF PILLETS
STAFF WRITERS
State officials investigating the EnCap Golf debacle are probing the close personal and professional relationship between EnCap's lead attorney and a major dirt vendor who won a $14 million contract at the troubled landfill project.
The lawyer is Eric D. Wisler, a senior partner in the powerful DeCotiis firm of Teaneck.
The contractor is Leroy I. Robinson, a part-time political operative from Essex County who managed to win millions in government contracts while working as a maintenance foreman for the Garden State Parkway.
He is also the unindicted co-conspirator mentioned in federal documents from a corruption investigation in Monmouth County, according to one of the disgraced officials involved in the scandal.
The 10-year relationship between Wisler and Robinson has been beneficial to both.
Robinson, as a commissioner of the Essex County Utilities Authority, approved millions of dollars in no-bid legal work the authority gave to Wisler as general counsel.
And Robinson gave Wisler's wife, Merry, a job working for yet another of his ventures, a title-insurance company with offices on the 15th floor of Newark's landmark One Washington Square.
For his part, Wisler helped Robinson set up a private fill-supply partnership with the chairman of the utilities authority. And it was Wisler who led Robinson to the EnCap contract.
"I was out with Eric and they were looking for a fill provider,'' Robinson said last week in an interview at his attorney's office. "That's how it all got started.''
Robinson and his attorney, Patrick Collins of Franzblau Dratch in Livingston, said they have been questioned extensively by investigators working for state Inspector General Mary Jane Cooper, who for the last 10 months has been probing how EnCap secured $300 million in public financing.
Robinson acknowledged that Cooper has forwarded information about his dealings with Wisler to the state Attorney General's Office, which is evaluating Cooper's findings for possible criminal prosecution. Both Cooper's office and the Attorney General's Office declined comment for this article.
In a statement Friday, Eric Wisler denied that there was anything improper in his relationship with Robinson:
"EnCap urgently needed to bring in a contractor who could provide immediate fill that met state standards. [Robinson's company] was a qualified fill and transfer operator who EnCap believed would get the job done. They were brought on after others had failed, and any suggestion that my wife's brief time there in a clerical position was a factor is an absolute lie."
A separate statement from EnCap itself echoed Wisler's.
Many of the cost overruns and construction delays that hobbled the project stemmed from EnCap's inability to obtain and manage the 8 million cubic yards of fill material needed to cover the old Meadowlands landfills at the heart of the golf village venture.
While Robinson's 2004 contract with EnCap obliged him to supply clean fill at a price of $2.85 a cubic yard, he was largely unable to deliver material at that price, and later submitted estimates as high as $20 a cubic yard.
Robinson's company has sued EnCap, saying it still is owed $1.3 million for the dirt it delivered before the project collapsed earlier this year. Robinson said the company received $5.7 million.
Robinson blamed fill problems on EnCap's incompetence and "complete failure" to manage daily operations at the 795-acre site in Lyndhurst and Rutherford. The developer, he said, also reneged on promises to furnish a processing center onsite.
"They're trying to lay all the blame for EnCap at my feet, and that isn't fair,'' Robinson said. "This project was messed up beyond belief.''
Robinson and his attorney also downplayed his 10-year business and social relationship with Wisler, and dismissed the suggestion that their mutual success in collecting taxpayer money through public contracts was at all related. He said he employed Wisler's wife for only two to 2½ years, and claimed she was paid nothing at first and just $20,000 to $30,000 total, doing secretarial tasks.
"Leroy Robinson is a qualified fill contractor and Eric Wisler is his friend, that's the end of the story," said Collins, Robinson's attorney. "Leroy gave Merry Wisler a job because she was a friend, a bored housewife looking for something to do. The idea that there is any quid pro quo is ridiculous.''
Collins did, however, concede that Merry Wisler's employment with Robinson was "a serious lapse of judgment on Wisler's part.''
"I'm sure he regrets it, because now he's answering questions about it from the state,'' Collins said.
Tied to scandal
Court documents filed in September by U.S. Attorney Christopher Christie in the ongoing Monmouth County scandal describe a kickback and money-laundering scheme involving someone identified only as "C-1," a "co-conspirator not named as a defendant."
Former Keyport Mayor John Merla, the brother of the defendant in that case, told The Record last week that Leroy Robinson was "C-1."
The former mayor was one of 11 officials arrested in 2005 in Christie's "Operation Bid Rig" investigation of public-contract awards. He has pleaded guilty to bribery in the scheme and has been sentenced to a 22-month prison term.
Robinson and Collins declined to answer any questions about the federal investigation.
Michael Drewniak, a spokesman for Christie, declined to answer questions about Robinson.
The court papers describe how undercover federal agents wearing concealed wires recorded a series of meetings in 2004 between Keyport businessman Joseph "JoJo" Merla and "C-1."
Federal prosecutors say "C-1" greased the conspiracy's wheels by writing money-laundering checks for consulting work that never happened. On one check, "C-1" wrote: "Consulting Services Fill Protocol.''
In state documents concerning the EnCap project, Robinson is described as a fill-protocol consultant. One of Robinson's companies, LIR-Consulting, was set up by Wisler, who is listed as the partnership's registered agent.
State records also list the DeCotiis firm as registered agent of the Uptown Keyport Bar and Grill LLC. According to John Merla, Robinson and his mother were once partners in the business; another brother, Charles Merla, owns it now.
Joseph Merla pleaded guilty to conspiracy in September of this year; federal authorities have requested that his sentencing be postponed until March, pending his "continued cooperation in an ongoing investigation."
Won dubious loans
In recent months, The Record has reported extensively how Wisler and another DeCotiis attorney won a series of lucrative concessions for the EnCap projects from state regulators overseeing the project.
State documents and interviews with top regulators showed that the firm was instrumental in engineering an unprecedented series of low-interest state loans that made the project possible. Former Department of Environmental Protection Chief Bradley Campbell and Treasurer John McCormac both said they opposed a loan but were told by the Governor's Office to make it anyway.
With the loan now in default and EnCap verging on extinction, state officials admit taxpayers may be stuck with a $51 million bill for part of the loan proceeds that cannot be recovered.
Terms of the loan and a series of environmental breaks -- including permission to bring millions of tons of contaminated materials to the EnCap site -- were largely negotiated by Wisler during the McGreevey administration.
At the time, Wisler's law partner, Al DeCotiis, was James McGreevey's chief fund-raiser, while another Wisler partner, Michael DeCotiis, was McGreevey's chief counsel.
Documents recently obtained by The Record show that McGreevey's first attorney general, David Samson, scolded Wisler for holding inappropriate private meetings about EnCap with McGreevey Cabinet officers. "This is not the first time you have been warned,'' Samson wrote in a 2002 letter to Wisler.
"This project was clearly one that the Governor's Office wanted, and there was little chance that anyone could stop it,'' Campbell, the former DEP commissioner, said in a recent interview. "Eric Wisler and the DeCotiis firm clearly had a lot of influence.''
Checkered past
It is unclear if the state ever looked into Robinson's checkered employment record with the state before approving his exclusive contract to supply 2.5 million cubic yards to be placed near the surface, above the landfill caps that were to be installed at the EnCap site.
In 1999, Robinson was suspended from his $92,000-a-year job for allegedly stealing paint from the New Jersey Highway Authority. Investigators said he gave the paint to a friend in South Jersey who owned a chicken farm and was seeking poultry contracts in Atlantic City -- where Robinson served on the convention center board.
Three years later, Robinson was placed on leave again after a private detective hired by the authority videotaped him routinely cutting hours from work to run errands or relax at home.
Robinson denies any wrongdoing on his parkway job, from which he retired in July 2005 with a pension of $3,200 a month. He said he was easily able to manage all his part-time ventures, including political fund raising, fill work and affirmative-action consulting, while working for the parkway.
Robinson's success in winning major public contracts while working as full-time highway foreman for the state underscores how closely private and public interests can intersect in New Jersey.
Consider Robinson's record with the Essex County Utilities Authority, an agency where he served as one of nine commissioners -- including periods as vice chairman and a steering-board member -- from August 1997 to February 2003.
Robinson won his appointment to the authority after volunteering as a fund-raiser and minority-outreach worker for Gov. Christie Whitman's 1997 reelection campaign. He was officially nominated to the board by then-Essex County Executive James Treffinger, another Republican, who was sentenced in 2003 to a 13-month prison term on a federal corruption conviction.
As a board member, Robinson voted on millions in spending, including legal fees paid to the authority's general counsel -- Wisler -- with whom Robinson was forging close ties as a friend and legal adviser.
Robinson also formed a business partnership with another board member, Nutley Township Commissioner Mauro Tucci. In 2001, Wisler filed papers with the state declaring himself the registered agent for G & I Associates, a fill-supply company that had Robinson's suburban Maplewood home as its address.
Under Tucci's chairmanship of the authority, the agency board approved millions in fees to Wisler and the DeCotiis firm. In Bloomfield, where Tucci worked as township administrator and Robinson was awarded a lucrative "affirmative-action" consulting contract, the DeCotiis firm was paid $350,000 for legal work between 2001 and 2003.
Robinson resigned from the utilities authority in June 2003 as it was preparing to get bids on a five-year, $9 million contract to dispose of ash from the county incinerator. Although five firms submitted bids for the exclusive contract, the winner and low bidder turned out to be a business partner of Leroy Robinson.
Robinson and Newark demolition contractor Ted Fiore formed a company called LIR-Fiore registered to the address of Robinson's consulting and insurance office.
Tom Barrett, a spokesman for the utilities authority, said that after winning the contract in February 2004, Fiore directed the authority's financial officer to send all paperwork, including bimonthly payments and invoices, to LIR-Fiore's office in Newark.
"We had no way of knowing Robinson was involved,'' Barrett said.
Robinson denied being partners with Fiore at the time the ash contract was awarded to Fiore, and said he didn't join the partnership until several days later, when, he claimed, Fiore approached him to help finance a bond needed in connection with the contract.
Robinson disclosed his financial interest in the contract on a 2005 state ethics form.
Competitor removed
For Robinson and Fiore, who did not respond to requests for an interview, the Essex County contract tied in nicely with their developing plans for EnCap. Robinson said he planned to mix some of the highly contaminated incinerator ash with sewage sludge and dump the mixture at EnCap.
EnCap demurred on the ash, but Robinson and Fiore moved ahead with their plans to supply other fill.
The Robinson and Fiore team was the third in a succession of haulers who had at one time been tabbed by EnCap as a main fill provider for material above the cap.
One of the spurned companies, owned by prominent New Jersey hauler Nicholas Mazzochi, lost out to Robinson after obtaining a DEP permit to do the EnCap work and building a $5 million facility for the work.
Mazzochi said Wisler engineered his removal from the site so EnCap could gain control of a huge amount of clean material he already had placed there.
"They forced me off the site, ordered me to remove my fill, but then a year later take control of it themselves and plow it under,'' said Mazzochi. "I was screwed beyond being screwed, and it was all engineered by Eric Wisler to make money in that rats' nest they created in the Meadowlands."
Robinson's contract gave him huge influence over the environmental health of the future EnCap development, a site where 5,000 people were to live eventually. As a "fill broker" for the project, Robinson was charged with finding clean material and policing hundreds of haulers who arrived there every day.
He was, in essence, a watchdog for the largest redevelopment project in New Jersey history.
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
How EnCap pair played winning hand
By JEFF PILLETS
STAFF WRITERS
State officials investigating the EnCap Golf debacle are probing the close personal and professional relationship between EnCap's lead attorney and a major dirt vendor who won a $14 million contract at the troubled landfill project.
The lawyer is Eric D. Wisler, a senior partner in the powerful DeCotiis firm of Teaneck.
The contractor is Leroy I. Robinson, a part-time political operative from Essex County who managed to win millions in government contracts while working as a maintenance foreman for the Garden State Parkway.
He is also the unindicted co-conspirator mentioned in federal documents from a corruption investigation in Monmouth County, according to one of the disgraced officials involved in the scandal.
The 10-year relationship between Wisler and Robinson has been beneficial to both.
Robinson, as a commissioner of the Essex County Utilities Authority, approved millions of dollars in no-bid legal work the authority gave to Wisler as general counsel.
And Robinson gave Wisler's wife, Merry, a job working for yet another of his ventures, a title-insurance company with offices on the 15th floor of Newark's landmark One Washington Square.
For his part, Wisler helped Robinson set up a private fill-supply partnership with the chairman of the utilities authority. And it was Wisler who led Robinson to the EnCap contract.
"I was out with Eric and they were looking for a fill provider,'' Robinson said last week in an interview at his attorney's office. "That's how it all got started.''
Robinson and his attorney, Patrick Collins of Franzblau Dratch in Livingston, said they have been questioned extensively by investigators working for state Inspector General Mary Jane Cooper, who for the last 10 months has been probing how EnCap secured $300 million in public financing.
Robinson acknowledged that Cooper has forwarded information about his dealings with Wisler to the state Attorney General's Office, which is evaluating Cooper's findings for possible criminal prosecution. Both Cooper's office and the Attorney General's Office declined comment for this article.
In a statement Friday, Eric Wisler denied that there was anything improper in his relationship with Robinson:
"EnCap urgently needed to bring in a contractor who could provide immediate fill that met state standards. [Robinson's company] was a qualified fill and transfer operator who EnCap believed would get the job done. They were brought on after others had failed, and any suggestion that my wife's brief time there in a clerical position was a factor is an absolute lie."
A separate statement from EnCap itself echoed Wisler's.
Many of the cost overruns and construction delays that hobbled the project stemmed from EnCap's inability to obtain and manage the 8 million cubic yards of fill material needed to cover the old Meadowlands landfills at the heart of the golf village venture.
While Robinson's 2004 contract with EnCap obliged him to supply clean fill at a price of $2.85 a cubic yard, he was largely unable to deliver material at that price, and later submitted estimates as high as $20 a cubic yard.
Robinson's company has sued EnCap, saying it still is owed $1.3 million for the dirt it delivered before the project collapsed earlier this year. Robinson said the company received $5.7 million.
Robinson blamed fill problems on EnCap's incompetence and "complete failure" to manage daily operations at the 795-acre site in Lyndhurst and Rutherford. The developer, he said, also reneged on promises to furnish a processing center onsite.
"They're trying to lay all the blame for EnCap at my feet, and that isn't fair,'' Robinson said. "This project was messed up beyond belief.''
Robinson and his attorney also downplayed his 10-year business and social relationship with Wisler, and dismissed the suggestion that their mutual success in collecting taxpayer money through public contracts was at all related. He said he employed Wisler's wife for only two to 2½ years, and claimed she was paid nothing at first and just $20,000 to $30,000 total, doing secretarial tasks.
"Leroy Robinson is a qualified fill contractor and Eric Wisler is his friend, that's the end of the story," said Collins, Robinson's attorney. "Leroy gave Merry Wisler a job because she was a friend, a bored housewife looking for something to do. The idea that there is any quid pro quo is ridiculous.''
Collins did, however, concede that Merry Wisler's employment with Robinson was "a serious lapse of judgment on Wisler's part.''
"I'm sure he regrets it, because now he's answering questions about it from the state,'' Collins said.
Tied to scandal
Court documents filed in September by U.S. Attorney Christopher Christie in the ongoing Monmouth County scandal describe a kickback and money-laundering scheme involving someone identified only as "C-1," a "co-conspirator not named as a defendant."
Former Keyport Mayor John Merla, the brother of the defendant in that case, told The Record last week that Leroy Robinson was "C-1."
The former mayor was one of 11 officials arrested in 2005 in Christie's "Operation Bid Rig" investigation of public-contract awards. He has pleaded guilty to bribery in the scheme and has been sentenced to a 22-month prison term.
Robinson and Collins declined to answer any questions about the federal investigation.
Michael Drewniak, a spokesman for Christie, declined to answer questions about Robinson.
The court papers describe how undercover federal agents wearing concealed wires recorded a series of meetings in 2004 between Keyport businessman Joseph "JoJo" Merla and "C-1."
Federal prosecutors say "C-1" greased the conspiracy's wheels by writing money-laundering checks for consulting work that never happened. On one check, "C-1" wrote: "Consulting Services Fill Protocol.''
In state documents concerning the EnCap project, Robinson is described as a fill-protocol consultant. One of Robinson's companies, LIR-Consulting, was set up by Wisler, who is listed as the partnership's registered agent.
State records also list the DeCotiis firm as registered agent of the Uptown Keyport Bar and Grill LLC. According to John Merla, Robinson and his mother were once partners in the business; another brother, Charles Merla, owns it now.
Joseph Merla pleaded guilty to conspiracy in September of this year; federal authorities have requested that his sentencing be postponed until March, pending his "continued cooperation in an ongoing investigation."
Won dubious loans
In recent months, The Record has reported extensively how Wisler and another DeCotiis attorney won a series of lucrative concessions for the EnCap projects from state regulators overseeing the project.
State documents and interviews with top regulators showed that the firm was instrumental in engineering an unprecedented series of low-interest state loans that made the project possible. Former Department of Environmental Protection Chief Bradley Campbell and Treasurer John McCormac both said they opposed a loan but were told by the Governor's Office to make it anyway.
With the loan now in default and EnCap verging on extinction, state officials admit taxpayers may be stuck with a $51 million bill for part of the loan proceeds that cannot be recovered.
Terms of the loan and a series of environmental breaks -- including permission to bring millions of tons of contaminated materials to the EnCap site -- were largely negotiated by Wisler during the McGreevey administration.
At the time, Wisler's law partner, Al DeCotiis, was James McGreevey's chief fund-raiser, while another Wisler partner, Michael DeCotiis, was McGreevey's chief counsel.
Documents recently obtained by The Record show that McGreevey's first attorney general, David Samson, scolded Wisler for holding inappropriate private meetings about EnCap with McGreevey Cabinet officers. "This is not the first time you have been warned,'' Samson wrote in a 2002 letter to Wisler.
"This project was clearly one that the Governor's Office wanted, and there was little chance that anyone could stop it,'' Campbell, the former DEP commissioner, said in a recent interview. "Eric Wisler and the DeCotiis firm clearly had a lot of influence.''
Checkered past
It is unclear if the state ever looked into Robinson's checkered employment record with the state before approving his exclusive contract to supply 2.5 million cubic yards to be placed near the surface, above the landfill caps that were to be installed at the EnCap site.
In 1999, Robinson was suspended from his $92,000-a-year job for allegedly stealing paint from the New Jersey Highway Authority. Investigators said he gave the paint to a friend in South Jersey who owned a chicken farm and was seeking poultry contracts in Atlantic City -- where Robinson served on the convention center board.
Three years later, Robinson was placed on leave again after a private detective hired by the authority videotaped him routinely cutting hours from work to run errands or relax at home.
Robinson denies any wrongdoing on his parkway job, from which he retired in July 2005 with a pension of $3,200 a month. He said he was easily able to manage all his part-time ventures, including political fund raising, fill work and affirmative-action consulting, while working for the parkway.
Robinson's success in winning major public contracts while working as full-time highway foreman for the state underscores how closely private and public interests can intersect in New Jersey.
Consider Robinson's record with the Essex County Utilities Authority, an agency where he served as one of nine commissioners -- including periods as vice chairman and a steering-board member -- from August 1997 to February 2003.
Robinson won his appointment to the authority after volunteering as a fund-raiser and minority-outreach worker for Gov. Christie Whitman's 1997 reelection campaign. He was officially nominated to the board by then-Essex County Executive James Treffinger, another Republican, who was sentenced in 2003 to a 13-month prison term on a federal corruption conviction.
As a board member, Robinson voted on millions in spending, including legal fees paid to the authority's general counsel -- Wisler -- with whom Robinson was forging close ties as a friend and legal adviser.
Robinson also formed a business partnership with another board member, Nutley Township Commissioner Mauro Tucci. In 2001, Wisler filed papers with the state declaring himself the registered agent for G & I Associates, a fill-supply company that had Robinson's suburban Maplewood home as its address.
Under Tucci's chairmanship of the authority, the agency board approved millions in fees to Wisler and the DeCotiis firm. In Bloomfield, where Tucci worked as township administrator and Robinson was awarded a lucrative "affirmative-action" consulting contract, the DeCotiis firm was paid $350,000 for legal work between 2001 and 2003.
Robinson resigned from the utilities authority in June 2003 as it was preparing to get bids on a five-year, $9 million contract to dispose of ash from the county incinerator. Although five firms submitted bids for the exclusive contract, the winner and low bidder turned out to be a business partner of Leroy Robinson.
Robinson and Newark demolition contractor Ted Fiore formed a company called LIR-Fiore registered to the address of Robinson's consulting and insurance office.
Tom Barrett, a spokesman for the utilities authority, said that after winning the contract in February 2004, Fiore directed the authority's financial officer to send all paperwork, including bimonthly payments and invoices, to LIR-Fiore's office in Newark.
"We had no way of knowing Robinson was involved,'' Barrett said.
Robinson denied being partners with Fiore at the time the ash contract was awarded to Fiore, and said he didn't join the partnership until several days later, when, he claimed, Fiore approached him to help finance a bond needed in connection with the contract.
Robinson disclosed his financial interest in the contract on a 2005 state ethics form.
Competitor removed
For Robinson and Fiore, who did not respond to requests for an interview, the Essex County contract tied in nicely with their developing plans for EnCap. Robinson said he planned to mix some of the highly contaminated incinerator ash with sewage sludge and dump the mixture at EnCap.
EnCap demurred on the ash, but Robinson and Fiore moved ahead with their plans to supply other fill.
The Robinson and Fiore team was the third in a succession of haulers who had at one time been tabbed by EnCap as a main fill provider for material above the cap.
One of the spurned companies, owned by prominent New Jersey hauler Nicholas Mazzochi, lost out to Robinson after obtaining a DEP permit to do the EnCap work and building a $5 million facility for the work.
Mazzochi said Wisler engineered his removal from the site so EnCap could gain control of a huge amount of clean material he already had placed there.
"They forced me off the site, ordered me to remove my fill, but then a year later take control of it themselves and plow it under,'' said Mazzochi. "I was screwed beyond being screwed, and it was all engineered by Eric Wisler to make money in that rats' nest they created in the Meadowlands."
Robinson's contract gave him huge influence over the environmental health of the future EnCap development, a site where 5,000 people were to live eventually. As a "fill broker" for the project, Robinson was charged with finding clean material and policing hundreds of haulers who arrived there every day.
He was, in essence, a watchdog for the largest redevelopment project in New Jersey history.
RELATED LINKSStaff Writer James Quirk contributed to this article. E-mail: pillets@northjersey.com and brennan@northjersey.com.
Video: Trump tours EnCap
Video: Guided tour of the development site
Letter to Senate Pres. Codey from Inspecter General Cooper
DEP list of violations by EnCap
Meadowlands Commission Web site
More coverage on Encap
* * *
Some key figures in probe of EnCap deals
• Eric D. Wisler: Partner in DeCotiis, FitzPatrick, Cole & Wisler; lead attorney for EnCap; former attorney for the Essex County Utilities Authority.
• Merry Wisler: Wife of Eric Wisler; former employee of Leroy Robinson.
• Leroy Robinson: Partner in LIR-Fiore, a major fill provider for EnCap; former member of the Essex County Utilities Authority board.
• Ted Fiore: Partner with Leroy Robinson in LIR-Fiore; partner with Robinson in Essex County ash-disposal contract.
• John Merla: Former mayor of Keyport; pleaded guilty in January to a single federal bribery count and is due to begin a 22-month prison sentence next month.
• Joseph "Jo-Jo" Merla: Brother of John Merla; pleaded guilty in September to a single federal count of money laundering.
• Mary Jane Cooper: New Jersey inspector general; expected to release a report in coming weeks on her office's investigation into the EnCap project.
• Mauro Tucci: Former board chairman of the Essex County Utilities Authority; formed fill company with Leroy Robinson.
Online story here. Archived here.
(Note: Online stories may be taken down by their publisher after a period of time or made available for a fee. Links posted here is from the original online publication of this piece.)
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
Sunday, October 07, 2007
Corruption - Bergen Record - Chris Christie's Catches, 2002-2007
Chris Christie's catches - 2002-2007
http://northjersey.com/dngmedia/media_server/tr/2007/09/24hitlist/Cases are sorted by year, then name. Click any asterisk (*) for the press release on that development.
| Year Charged | Last Name, First Name | Office | Party | Municipality | County | Hometown | Guilty Plea | Convicted at Trial | Charges | Payoff ($) | Sentence (months) | Fine ($) | Restitution ($) |
| 2002 | Auriemma, Joseph | Township Administrator & Director of Operations for the Municipal Utilities Authority | North Bergen | Hudson | Bloomfield | Y | accepting contractor bribes | 33,792 | 36* | 7,500 | 33,792 | ||
| Barnes, Martin G | Mayor | D | Paterson | Passaic | Paterson | Y* | accepting vendor gifts | 200,000-350,000 | 37* | 1,000 | |||
| Bost, Sara B. | Mayor (freeholder) | D | Irvington | Essex | Irvington | Y* | witness tampering in kickback probe | 8,500 | 12 | 2,000 | |||
| Braker, William C. | Freeholder (former Deputy Director of the Jersey City Police Department) | D | Jersey City | Hudson | Jersey City | Y* | extorting county vendor | 3,000 | 41* | ||||
| Bridgeforth, Michael | information officer, Immigration & Naturalization Service | Newark | Essex | Yonkers, NY | Y* | embezzling checks | 4,300 | 1,500 | |||||
| Condos, James | Councilman | R | Asbury Park | Monmouth | Asbury Park | Y | accepting a liquor license from developer | 35,000 | 15* | ||||
| Davila-Colon, | Freeholder | D | Jersey City | Hudson | Jersey City | N | Y* | abetting extortion | 10,000 | 30 | |||
| Gibson, Robert E. | director of public utilities and superintendent of water and sewer for the City of Camden | Camden | Camden | Cherry Hill | Y* | extorting vendor | 20,800 | 13 | |||||
| Gomez, Miladys | assistant director Perth Amboy Housing Authority | Perth Amboy | Middlesex | Edison | Y | embezzling federal housing subsidies | 407,603 | 24 | $407,603 | ||||
| Hernandez, Joseph | purchasing agent, Municipal Utilities Authority | North Bergen | Hudson | Y | accepting gifts, rigging quotes | 30* | 18,500 | ||||||
| Janiszewski, Robert* | County Executive, Hudson and former assemblyman | D | Jersey City | Hudson | Y* | extortion, tax evasion | 100,000 | 41* | 40,000 | ||||
| Mangullo, Conway | director of public works | Paterson | Passaic | Y* | extorting contractor | 7,500 | 7,500 | ||||||
| Nixon, Kenneth E. | Executive Director of the Asbury Park Housing Authority | Asbury Park | Monmouth | Y* | bribing officials to reappoint him | ||||||||
| Perez, Peter | Board of Commissioners member | D | North Bergen | Hudson | North Bergen | Y* | accepting cash and gifts from vendor | 26,000 | 6 | 5,000 | 26,000 | ||
| Richardson, John F. | Superior Court Judge | Somerset | Y* | failed to maintain records for client | 2,500 | ||||||||
| Rodriguez, Ismael | sheriff's officer | Newark | Essex | Y* | defrauded federal housing program | 63,600 | |||||||
| Russo, Dominick | depurty U.S. Marshal | Newark | Essex | Ocean Township | N | Y* | conspiracy, mail fraud, embezzlement of public funds | ||||||
| Turner, Andrea | service representative, Social Security Administration | Elizabeth | Union | Linden | Y | conspiring to sell social secuirty cards | 30 | ||||||
| Vidal, Wilfredo | municipal code official & electrical inspector | Union City | Hudson | North Bergen | N* | Y | extortion, tax fraud | 41* | 2,750 | 980 | |||
| Weldon, Terrance D. | Mayor & city manager (Asbury Park) | D | Ocean Twp | Monmouth | Ocean Township | Y* | extorting bribes from developers | 60,000 | 58 | 20,000 | |||
| Zappulla, Vincent | mayoral aide | D | North Bergen | Hudson | North Bergen | Y* | insurance fraud with contractor | 20,000 | 12,264 | ||||
| 2003 | Colon, Cecilio | guard, Federal Correctional Insitution at Fort Dix | Burlington | Bronx, NY | Y* | accepting inmate bribes | 350 | 500 | |||||
| D'Agosta, Frank | detective, Jersey City Police Department | Jersey City | Hudson | Jersey City | Y* | extorting illegal gambling business | 13 | 15,000 | |||||
| DeMiro, Michael | aide to county executive | R | Verona | Essex | Verona | Y | conspiring to obstruct probe | * | |||||
| LaVilla, Peter | Mayor | Guttenberg | Hudson | North Bergen | Y* | false tax return, misappropriating campaign contributions | 5,000 | ||||||
| Lewis, Marcella | examination technician, New Jersey Motor Vehicles Commission | Elizabeth | Union | Plainfield | Y | selling driver's licenses | 12 | 6,000 | |||||
| Malloy, Patrick G. | Mayor | New Hanover Twp | Burlington | New Hanover Twp | Y | obstructing justice in bid-rig probe | 6* | 30,000 | |||||
| Mathes Jr., James R. | Council President | D | Camden | Camden | Camden | N* | Y | accepting gifts from mob | 27* | 3,000 | |||
| Murphy, Peter | Passaic County Republican Party Chairman | R | Passaic | Y | mail fraud | 11 | 20,000 | 72,800 | |||||
| Nash, James J. | Township Administrator & treasurer of school funds for Bd of Ed | New Hanover Twp | Burlington | New Hanover Twp | Y* | missapplying federal funds in a bid rig scheme | 3* | 25,000 | |||||
| Rackley, Otis L. | special operation inspector, US Customs & Border Protection | Newark | Essex | Blakeslee, Pa. / formerly Perth Amboy | Y* | accepting bribes to smuggle aliens | 90* | ||||||
| Rivera, Elizabeth | customer service representative, Social Security Administration | Trenton | Mercer | Camden | Y | conspiring to sell social security cards | 26 | 6,000 | |||||
| Rivera Asencio, Rebecca | clerk, Social Secuirty Administration | Trenton | Mercer | Trenton | Y* | selling social security cards to aliens | 15 | 500 | |||||
| Russo, Anthony J. | Mayor | D | Hoboken | Hudson | Hoboken | Y* | accepting bribes from accounting firm | 317,000 | 30* | 30,000 | 317,220 | ||
| Saunders Sr., Kenneth E. | Mayor | R | Asbury Park | Monmouth | Asbury Park | N* | Y | conspiracy to bribe a council member | 30 | ||||
| Spedaliere, Nicholas | deputy U.S. Marshal | Camden | Camden | Marlton | Y* | stole cash from a fugitive | 11,778 | 6* | 11,778 | ||||
| Thompson, Stephen W. | Superior Court Judge | R | Camden | Camden | Haddon Township and Avalon | N* | Y | traveling to Russia to have sex with a boy | 120 | 25,000 | |||
| Treffinger, James W. | County Executive (U.S. Senate candidate) | R | Essex | Verona | Y* | obstruction of justice, mail fraud | 13* | 5,000 | 29,471 | ||||
| 2004 | Anderson, Jean | deputy registrar of the Hudson County Office of Vital Statistics | Hudson | Jersey City | Y | conspiring to sell birth certificates | |||||||
| Awan, Lori | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | North Plainfield | Y* | selling driver's licenses | |||||||
| Bridges, Alfred W. | Mayor | D | Ewing Township | Mercer | Ewing Township | Y | possession of crack cocaine | * | 5,000 | ||||
| Carlo, Linda | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | Newark | Y* | selling driver's licenses | 12 | 1,200 | |||||
| Feathers, Anita | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | Sloatsburg, NY | Y* | selling driver's licenses | 1,500 | ||||||
| Harkins, Michael E. | Executive Director of the Delaware River & Bay Authority | R | Wilmington, Del. | Y | billing for personal expenses | 14 | 7,500 | 52,236 | |||||
| Haugabrook, Earl | acting chief financial officer and director of finance for Irvington Township | Irvington | Essex | Newark | Y | filing false tax returns | |||||||
| Horn, Tonya | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essesx | Easton, Pa, formerly Scotch Plains | Y* | selling driver's licenses | 12 | ||||||
| Joyce, Lauren | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | Union Township | Y* | selling driver's licenses | 12 | ||||||
| Kushner, Charles | Commissioner, Port Authority NY-NJ | D | Essex | Livingston | Y | tax evasion, witness tampering, illegal campaign contributions | 24 | 40,000 | |||||
| Lambert Sr., James R. | executive director of the Mercer County Improvement Authority | R | Trenton | Mercer | Hamilton Township | Y* | mail fraud, conspiracy to bribe mayor | 5 | 6,000 | ||||
| Love, Linda | examination technician, New Jersey Motor Vehicles Commission | Mount Holly | Burlington | Willingboro | Y | conspiring to sell 750 driver's licenses | 30* | 1,000 | |||||
| Moore, Shelina D. | customer service representative, New Jersey Motor Vehicles Commission | Mount Holly | Burlington | Clemington | Y | selling driver's licenses | 12* | ||||||
| Pablo, Lyliana | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | Newark | Y* | conspiring to produce bogus driver's licenses | 33 | ||||||
| Parkin, Harry G. | Chief of Staff to Mercer County Executive Robert Prunetti & member Delaware River Joint Toll Bridge Commission | Mercer | Robbinsville | N* | Y | mail fraud, attempted extortion | 90 | 26,000 | |||||
| Peterson, Rita | customer service representative, New Jersey Motor Vehicles Commission | Springfield | Essex | Newark | Y | selling driver's licenses | 12 | ||||||
| Turner, Zachary V. | Councilman | D | East Orange | Essex | East Orange | Y* | conspiracy, extortion, mail fraud | 90,000 | 30 | 84,800 | |||
| Van Berry, Clinton | Assistant Tax Collector | Atlantic City | Atlantic | Galloway Township | N* | Y | conspiring with wife to rob tax receipts | 46 | 5,000 | ||||
| Vuola, Richard | chairman Marlboro Township Municipal Utilities Authority | D | Marlboro Township | Monmouth | Marlboro | Y* | extortion, bribing official, false tax return | 35,000 | 50* | 25,000 | 15,000 | ||
| Walden, Terence | senior inspector, U.S. Customs & Border Protection | Newark | Essex | Piscataway | Y | accepting bribes to smuggle illegal aliens | 2,000 | 3,000 | |||||
| 2005 | Bethune, Peter K. | state trooper | Maple Shade | Y* | conspiracy to extort stock and money | 37 | 1000 | ||||||
| Broderick, Thomas | undersheriff, asst. supervisor Monmouth highway dept, ex councilman | R | Marlboro | Monmouth | Y | money laundering | 15,000 | 4 | |||||
| Coughlin, Paul | Mayor | R | Hazlet | Monmouth | Hazlet | Y | extorting contractor bribes | 3,000 | 24 | 5,000 | |||
| Cummings Jr., James M. | director of facilities Paterson school district | > | Paterson | Passaic | Sparta | Y | accepting contractor bribes | 50,000 cash, 28,000 in improvments | 43 | 750,000 | |||
| DeLisa, Joseph | Councilman | D | West Long Branch | Monmouth | West Long Branch | Y | extorting bribe | 1,500 | 15 | 5,000 | |||
| Desena, Robert | supervisor of emergency services, NJ Turnpike | D | Bayonne | Hudson | Bayonne | Y | accepting towing contractor bribes | 3,831 | 3,800 | ||||
| Greenwald, Thomas A. | Councilman | R | Far Hills | Somerset | Chatham | Y | conspiracy to launder illicit cash | 25,900 | |||||
| Hamilton Jr., John J. | Councilman | D | Asbury Park | Monmouth | Asbury Park | awaiting trial | accepting bribes | 6,000 | |||||
| Hyer, Robert L. | councilman | R | Keyport | Monmouth | Keyport | deceased | extorting contractor bribes | 5,000 | |||||
| Iadanza, Richard | Deputy Mayor | R | Neptune Twp | Monmouth | Neptune | Y | extorting bribes | ||||||
| Kessler, Stephen D. | chairman of the Ocean Township Sewerage Authority | Ocean Twp | Monmouth | Ocean Township | Y | accepting bribes | 15,000 | ||||||
| Larrison, Jr., Harry | Freeholder director, Monmouth County | Freehold | Monmouth | Ocean Grove | deceased | accepting bribes from developers | 8,500 | ||||||
| McCurnin, Joseph | Operations Manager, Monmouth Cty Div of Transportation | R | Monmouth | Y | extorting bribes | 1,000 | |||||||
| Merla, John J. | Mayor | R | Keyport | Monmouth | Keyport | Y | extorting bribes | 24,000 | |||||
| Milone, Louis | supervisor of maintenance and custodial services (schools) | R | Paterson | Passaic | Pompton Lakes | Y | accepting gifts | 10,000 | 3,000 | 10,000 | |||
| O'Grady, Raymond J. | Committeeman (former mayor) | R | Middletown | Monmouth | Middletown | N | Y | attempted extortion, accepting bribes, conspiracy | 10,000 | 43 | 5,000 | ||
| Palughi, Anthony | Superintendent of Bridges, Monmouth County (former Long Branch councilman) | R | Monmouth | Wall | Y | conspiracy to accept bribes | 12,500 | ||||||
| Scannapieco, Matthew V. | Mayor | R | Marlboro | Monmouth | Marlboro | Y | accepting bribes, tax evasion | 245,000 | |||||
| Senyszyn, Bohdan | revenue agent, Internal Revenue Service | Paterson | Passaic | Roxbury Twp | awaiting trial | preparing fraudulent returns, tax evasion | 336,000 | ||||||
| Townsend, Patsy R. | Monmouth fire marshal, emergency management & code enforcer | D | Neptune | Monmouth | Neptune | Y | attempted extortion of bribe | 1,000 | 6 | 2,000 | |||
| Young, Stanley | Planning Board member | D | Marlboro Township | Monmouth | Marlboro | Y | accepting bribes from developers | 7,700 | |||||
| Zambrano, Paul R. | Mayor | D | West Long Branch | Monmouth | West Long Branch | Y | extorting bribes from contractor | 15,000 | |||||
| 2006 | Abate, Frank G. | executive director Western Monmouth Utilities Authority | D | Marboro | Monmouth | Marlboro | N | Y | accepting contractor gifts | 4,800 home improv arch plans | 51 | 10,000 | |
| Callaway, Craig | council president | D | Atlantic City | Atlantic | Atlantic City | Y | accepting contractor bribes | 36,000 | 40 | $1,000 | |||
| Davidson, Connie | employee, General Services Administion, at Fort Monmouth | Monmouth | Red Bank | Y | arranging no-show jobs | 12 | waived | 395,710 | |||||
| Foy Sr., Joseph | mayor | Burlington Twp | Burlington | Burlington Township | Y* | tax evasion | 53,000 | 10,000 | |||||
| Hurt, Eric D. | accounting manager, Hoboken Housing Authority | Hoboken | Hudson | Jersey City | Y* | embezzlement | 111,083 | 41 | 268,168 | ||||
| Jones, Gibb | councilman | D | Atlantic City | Atlantic | Atlantic City | Y | extortion | 5,000 | |||||
| Lukowiak, Anthony | manager Newark Division of Sanitation | R | Newark | Essesx | Belleville | Y | accepting corrupt payments | 24,000 | 45 | waived | 97,231 | ||
| Lynch, John A. | Senator | D | New Brunswick | Middlesex | New Brunswick | Y | mail fraud, tax evasion | 120,000-200,000 | 39 | 50,000 | |||
| Peterson, Mary Ann | manager, Picatinny Arsenal | Morris | Lake Hopatcong | Y | conspiracy to embezzle | 50,231 | 21,475 | ||||||
| Rosario, Ramon | councilman | D | Atlantic City | Atlantic | Atlantic City | Y | accepting bribes | 14,000 | 10 | $1,000 | |||
| Rzeplinski, Michael | programs director, General Services Administration, Fort Monmouth, and former Army supervisory engineer | Monmouth | Red Bank | Y | conspiracy to defraud US, tax evasion | 46 | waived | 872,710 | |||||
| Sloan El, Ali | councilman | D | Camden | Camden | Camden | Y | extorting bribes from contractor | 36,000 | 20 | waived | |||
| 2007 | Adams, Jayson | school board president | Pleasantville | Atlantic | awaiting indictment | accepting bribes | |||||||
| Bryant, Wayne R. | Senator | D | Lawnside | Camden | awaiting trial | fraud, trading influence for no-show job | |||||||
| Callaway, Maurice "Pete" | school board member | Pleasantville | Atlantic | awaiting indictment | accepting bribes | ||||||||
| Cortez, Marisol | Paterson Housing Authority Sect. 8 caseworker | Paterson | Passaic | Y | bribery | 200 | |||||||
| Cruz, Flora | Paterson Housing Authority Sect. 8 caseworker | D | Paterson | Passaic | Y | bribery | 200 | ||||||
| Griffin, Elisa | Paterson Housing Authority Sect. 8 caseworker | D | Paterson | Passaic | Y | bribery | 1,900 | ||||||
| Hackett Jr., Mims | Assemblyman & Mayor | D | Orange | Essex | awaiting indictment | accepting bribes | |||||||
| Holland, Lee | Paterson Housing Authority Building Inspector | D | Paterson | Passaic | Y | accepting bribes | 600 | ||||||
| Hooks, Mark | Building Inspector | D | Passaic | Passaic | awaiting indictment | extortion | 500 | ||||||
| Jackson, Marcellus | Councilman | D | Passaic | Passaic | awaiting indictment | accepting bribes | |||||||
| James, Sharpe | Senator and Mayor | D | Newark | Essex | awaiting trial | abusing credit cards, fraudulent land sales | 58,000 credit | ||||||
| Kaplan, Richard | construction inspector / asst. zoning officer | New Brunswick | Middlesex | Y | accepting contractor bribes | 30,000 | 30 | 30,000 | |||||
| Lane, Yolanda | Lead Paint Inspector | Paterson | Passaic | Y | extortion | 300 | |||||||
| March, Louis | Court Clerk | Newark | Essex | awaiting indictment | extorting bribes to fix records | 4,000 | |||||||
| McCormick, James T. | school board member | Pleasantville | Atlantic | awaiting indictment | accepting bribes | ||||||||
| Morgan, George | Passaic Valley Water Commission employee | Clifton | Passaic | Y | conspiracy to extort | 200 | |||||||
| Nunez, Javier | Paterson Housing Authority employee | Paterson | Passaic | Y | conspiring to accept bribes | 500 | |||||||
| Ortiz, Victor | Building Inspector PHA | Paterson | Passaic | awaiting trial | conspiracy to extort | 4,750 | |||||||
| Pressley, James | school board trustee | Pleasantville | Atlantic | awaiting indictment | accepting bribes | ||||||||
| Ramos, Benny | Deputy Director Paterson Housing Authority | D | Paterson | Passaic | awaiting indictment | bribery | 3,000 | ||||||
| Reaves, Princess | Deputy Court Administrator | D | Paterson | Passaic | awaiting trial | bribery | 2,500 | ||||||
| Reid, Keith O. | chief of staff to City Council president | D | Newark | Essex | awaiting indictment | accepting bribes | |||||||
| Rivera, Samuel | Mayor | Passaic | Passaic | awaiting indictment | accepting bribes | ||||||||
| Roach, Linda | supervisory clerk typist Dept Community, Planning & Eco Dev | D | New Brunswick | Middlesex | Y | extorting bribes from contractors | 5,000 | ||||||
| Rosa, Maria | Paterson Housing Authority Sect. 8 caseworker | Paterson | Passaic | Y | conspiring to accept bribes | ||||||||
| Scarpelli, Joseph C. | Mayor | D | Brick Twp | Monmouth | Brick Township | Y* | extorting bribes from developers | 5,000 | |||||
| Schweidereick, Robert | Passaic Valley Water Com employee | Clifton | Passaic | Y | attempted extortion | 830 | |||||||
| Soto, Jonathan | Councilman | D | Passaic | Passaic | awaiting indictment | accepting bribes | |||||||
| Steele, Alfred E. | Assemblyman & Undersheriff | D | Paterson | Passaic | awaiting indictment | accepting bribes | 15,500 | ||||||
| Vacca, Joseph | assistant to the director of facilities, Paterson Board of Education | Paterson | Passaic | West Paterson | Y | accepted bribe from contractor | 3,000 | 5 years probation | 12,000 | ||||
| Valvano, Matthew P. | building inspector | D | Linden | Union | awaiting indictment | extorting bribes from contractor | 10,500 | ||||||
| Velez, Rafael | school board trustee | Pleasantville | Atlantic | awaiting indictment | accepting bribes | ||||||||
| Walker, William | director of housing rehabilitation | New Brunswick | Middlesex | awaiting trial | extorting bribes from contractors | 112,500 | |||||||
| Williams, Standley | Building Inspector | Paterson | Passaic | Y | conspiracy to accept bribes | 6,750 | |||||||
| Woods, Darrell | supervisor, Federal Aviation Administration | Galloway Twp | Atlantic | Winslow Township | Y* | accepting bribes in a procurement fraud | 159,000 |
Posted 10/7/2007
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