NJ WATCHDOG: Lt Gov Debate - Snooze or Big News?

For Immediate Release:


The upcoming debate between New Jersey Lt. Gov. Kim Guadagno and challenger Milly Silva could be one of the most boring political occasions of this election year.

Or it could be one of the most revealing events yet. It all depends on what questions are asked Friday evening at Kean University in Union.

For three years, the GOP lieutenant governor has dodged inquiries about her involvement in a pension scandal, first reported by New Jersey Watchdog.

False statements by Guadagno as Monmouth County sheriff enabled a top aide to improperly collect $85,000 a year in retirement pay in addition to an $87,500 salary.

The controversy is the focus of a hush-hush state criminal investigation that began in 2011. Guadagno, Gov. Chris Christie and the attorney general have all declined comment through their spokespeople.

Despite an abundance of public appearances and photo opportunities, Guadagno has never held a press conference, as noted by the Philadelphia Inquirer's Matt Katz. The debate could put her on the spot for the first time.

Democrat Silva may be reluctant to tackle Guadagno on pension issues.

A newcomer to the political stage, Silva is executive vice president of 1199SEIU – a labor union that represents nearly 400,000 workers in government and the private sector.

The other person who could bring up the pension issue during the debate is the moderator, Luke Margolis of News 12 New Jersey.

As a public service, New Jersey Watchdog offers a step-by-step primer on the Guadagno pension affair, along with documentation. Click on the links to see the supporting records:

1) In 2008, then-Sheriff Guadagno hired Michael W. Donovan Jr. as “chief of law enforcement division” at a salary of $87,500 a year. She announced the appointment in a memo to her staff. The sheriff's official website identified Donovan as "sheriff's officer chief," supervising 115 subordinate officers and 30 civilian employees.

2) Donovan was already collecting an $85,000 a year state pension as a retired investigator for the county prosecutor. While double-dipping is often legal in New Jersey, this case was different.

3) Since the position of sheriff's officer chief is covered by the pension system, Donovan should have been required to stop receiving benefits, re-enroll in the retirement plan and resume contributions to the pension fund.

4) Instead, county payroll records, the oath of office and a news release by Guadagno identified Donovan as the sheriff's "chief warrant officer" – a similar sounding, but low-ranking position that's not in the pension system. A chief warrant officer is responsible for serving warrants and other legal documents.

5) Yet on Guadagno’s organizational chart, Donovan was listed as chief of law enforcement. The position of chief warrant officer was not on the chart.

6) While sheriff's chief, Donovan pocketed $227,000 in checks from PFRS. Since he did not re-enroll in the pension plan, he avoided another $18,000 in contributions. If the state decides Donovan violated pension law, he could be forced to repay $245,000.

7) Guadagno is also at risk. Under state statute, "Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this retirement system...shall be guilty of a misdemeanor."

8) The attorney general's Division of Criminal Justice began an investigation in May 2011 at the behest of a pension board, according to a sworn statement by a state official.

9) Rather than use his constitutional authority to appoint an independent investigator, Christie allowed DCJ to run the case – an apparent conflict-of-interest. Guadagno is a former DCJ deputy director and now Christie's second-in-command. She sits in the governor's cabinet alongside the attorney general, who is in charge of DCJ.

10) Unless there are criminal charges – an extreme unlikelihood given the political circumstances – DCJ will not comment or release records of the investigation, according to a sworn statement by Deputy Attorney General Anthony A. Picione.

11) If Guadagno and Christie get their way, the case will be swept under the rug.

Any questions?

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The story is now online at http://newjersey.watchdog.org. For media inquiries, contact Mark Lagerkvist at Mark@Lagerkvist.net.

NJ WATCHDOG: NJ Seeks to Argue Pension Probe Secrecy in Secret

For Immediate Release:

RECORDS OF PENSION PROBE IMPLICATING LT. GOV. GUADAGNO ARE SO SECRET NEW JERSEY SEEKS TO ARGUE THE SECRECY IN SECRET

Records of a pension scandal involving Lt. Gov. Kim Guadagno are so secret that New Jersey authorities are seeking to argue their reasons for secrecy in secret.

Under order, the state Treasury has turned over 26 documents for an in camera review by the Office of Administrative Law. After review, a judge will rule on which, if any, documents must be released to a New Jersey Watchdog reporter.

The attorney general also submitted two briefs arguing why the documents should be kept confidential. One brief was submitted only to the judge – and not the reporter's attorney.

The main brief disclosed the existence of the secret filing: "The custodian (Treasury) is submitting additional briefing on these documents for review by Your Honor in camera."

The secret brief – a rare legal tactic designed to ensure a one-sided argument – is the latest twist in a lengthy public records battle that began after a New Jersey Watchdog investigative report three years ago.

The contested records focus on false statements by Guadagno that enabled her chief officer, Michael W. Donovan Jr. to improperly collect nearly $85,000 a year in state retirement pay in addition to his $87,500 annual salary.

The complete story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2013/10/07/9078/. Please direct media inquiries to Mark@Lagerkvist.net.

NJ Watchdog: 41 TOP NJ COUNTY COPS DO THE BIG DOUBLE-DIP: HOW 16 SHERIFFS & 25 UNDERSHERIFFS POCKET MILLIONS IN PENSIONS PLUS SALARIES

Very good investigative report by Mark Lagerkvist posted over at NJ WatchDog that chronicles the double dipping(those that receive a state salary while also collecting a state pension) of many county cops around the state.

Of particular interest to those who live in Monmouth County is the excerpt below that pertains the Lt. Gov. Kim Guadagno, who went out of her way to provide a double-dipping job opportunity to Michael W. Donovan in 2008 while Monmouth County Sheriff.

Current Monmouth County Sheriff, Shaun Golden has been complacent on the issue and has given Donovan a pay raise while promoting to the position of Undersheriff.

The double-dipping of Michael W. Donovan Jr. – revealed by a New Jersey Watchdog investigative report last year – provides an inside look at how powerful politicians can conspire to cheat pension funds.

As Monmouth County sheriff in 2008, Lt. Gov. Kim Guadagno hired Donovan as chief in charge of law enforcement. There was an obstacle: Donovan had retired as a county investigator three years earlier. Since a sheriff’s chief officer is a position subject to the rules of the Police and Firemen’s Retirement System (PFRS), Donovan faced the prospect of giving up pension checks by going back to work.

To help Donovan double-dip, Guadagno informed payroll officials Donovan was her chief warrant officer – a similar sounding but completely different position not subject to PFRS rules. In contrast, Guadagno’s own memo and organizational chart identified Donovan as her chief in charge of law enforcement.

With Guadagno’s help, Donovan pocketed $85,000 a year in retirement pay along with his new salary of $87,000. He scammed $245,000 from PFRS – $227,000 in pension pay, plus $18,000 he should have contributed to the pension fund after being re-hired.

Faced with controversy, Sheriff Shaun Golden – Guadagno’s successor – found a way to protect his office and Donovan. In February, Golden gave Donovan a raise and promoted him to undersheriff, a position not subject to PFRS rules. So Donovan continues his double-dipping ways, more lucrative than ever...

Some schemes are enabled by superiors who have already gamed the system for themselves...