NJ TREASURY BOTCHES MONMOUTH PROBE; STATE IGNORES $245K PENSION SCAM IMPLICATING LT. GOV. GUADAGNO

Back on October 19th of last year the website New Jersey Watchdog broke the story about how Lt. Gov. Kim Guadagno, while acting as Monmouh County Sheriff in 2008, allowed and participated in a scheme allowing a high-ranking Monmouth County Sheriff's employee to blatantly violate pension laws giving him a full pension and a full County paycheck at the same time.

Now New Jersey Watchdog is reporting that after an investigation into the allegations, the NJ Treasury botched it's investigation into this troubling story, by ignoring evidence that clearly shows that Michael W. Donovan Jr. was employed as Chief Warrant Officer, which has allowed him to collect $85,000 a year in pension benefits while collecting a county salary of $87,500. To date New Jersey Watchdog says that Donovan owes the County in excess of $245,000 for pension payments that he was not entitled to:

Here is what NJ Watchdog is reporting:

A botched investigation by the New Jersey Treasury is allowing a Monmouth County sheriff's executive – and Lt. Gov. Kim Guadagno, his former boss – to get away with a double-dipping scam that has cheated a state pension fund out of nearly a quarter-million dollars.

Ignoring evidence to the contrary, state officials concluded Michael W. Donovan Jr. was employed as "chief warrant officer," according to a letter from Florence J. Shepherd, acting director of the Treasury's Division of Pension and Benefits.

Records obtained by New Jersey Watchdog clearly show that Donovan was actually the Sheriff's Chief Officer in charge of law enforcement. That evidence includes:

• An Aug. 21, 2008 memo written and initialed by then-Sheriff Guadagno, introducing Donovan as the "new Chief of the Law Enforcement Division."
• Organization charts for the Monmouth County Sheriff's Office, covering the period of Sept. 22, 2008 through Feb. 13, 2011. Each identifies Donovan as the "Chief" in charge of law enforcement.
• A Sheriff's Office web page describing Donovan's duties as "Sheriff's Chief," including the department's day-to-day activities.

While the job titles of sheriff's chief officer and chief warrant officer sound similar, the difference is defined in state statute. Another difference is the money this charade has cost the state pension system, as first exposed by a New Jersey Watchdog investigation in October 2010.

Listed as chief warrant officer in payroll records, Donovan has been able to collect $85,000 a year in benefits as a retired county investigator, plus an $87,500 annual salary for his job with the sheriff.

Chief warrant officer is considered a temporary position exempt from the Police and Firemen's Retirement System (PFRS). In contrast, a sheriff's chief officer is covered by the PFRS. Under state pension rules, Donovan should have been required to re-enroll in the plan, which would have stopped his retirement checks.

To date, Donovan has improperly received $227,000 in pension payments. In addition, he should have paid $18,000 in contributions to the plan since returning to work in 2008.

On behalf of the PFRS, the Treasury could sue to recover $245,000 from Donovan. But first, the agency would have to face facts that implicate Guadagno – and would likely embarrass the Christie Administration.

The Feb. 11 letter from Acting Director Shepherd was sent in response to an inquiry from Anthony Wieners, president of the New Jersey State Policeman's Benevolent Association. Wieners could not be reached for comment.

Three days later, Donovan was given a new job title - plus a raise. As Monmouth County's new undersheriff in charge of law enforcement with essentially the same responsibilites, he now receives a $90,125 annual salary – plus nearly $86,000 a year in state pension checks.

With all that is going on today about how public employees are bankrupting states with their generous health and pension benefits, it's nice to know that Governor Christie can look the other way when it involves one of his own from the Monmouth County "Good ol' Boy" network.

Based on what NJ Watchdog has uncovered, I think it is time for Christie to intervene by firing Michael Donovan as Chief Warrant Officer for Monmouth County and asking his Lt. Governorr for some straight answers before asking for Guadagno's resignation.