Patch: Four-Year Gap In Middletown Republicans' Campaign Finance Reports

The Middletown Patch posted an article this morning about the Middletown Republicans not filing campaign finance reports for the past 4 years. This is a big issue and people shouldn't be looking the other way.

And before someone says something .... submitting ELEC reports 4 years after they are due doesn't negate the fact that they weren't filed when they needed to be.... This is still a very serious situation that is being investigated.

From the Patch:

MIDDLETOWN, NJ — There was a missing four-year period where the New Jersey Election Law Enforcement Commission (ELEC) did not have campaign finance reports from the Middletown Republican Committee. 

 The campaign finance reports were missing from the years 2016 through 2020. It was sixteen reports that were missing, from each four quarters of those four years. As of Oct. 21 of this year, all the missing reports have now been filed and are on record with ELEC. 

 Campaign finance reports are vital because they show who has donated to a political party and how the money is being spent. American political parties are required by law to submit them for public record, and to not submit them is a serious violation, as well as a breach of public trust. 

 The Middletown Republican Committee says they filed the reports accurately as required every year. They said they have no idea why ELEC did not have any record of the reports and chalked it up to a clerical error on ELEC's part. 

 "Every report for every quarter was sent by regular mail to P.O. Box 185 Trenton NJ 08625 (ELEC headquarters) as instructed," said a Middletown Republican Party spokesman. "We were informed by a Facebook inquiry that reports were missing. We contacted ELEC and inquired where these reports were placed. They could not find them quickly and asked us to resubmit the reports and they would once again place them in the appropriate quarter. The reports have been resubmitted and upon review are back on the site. We were surprised to learn about this clerical issue as all reports for candidates and the party have always been filed timely." 

It was the job of Alannah Perry, the Middletown Republican Party treasurer, to submit the campaign finance records to ELEC. Perry is the wife of current Middletown Mayor Tony Perry and her father is Gerry Scharfenberger, now a member of the New Jersey Assembly. Before he became an assemblyman, Scharfenberger sat on both the Middletown Township Committee and the Monmouth County Board of Chosen Freeholders since 2016.....

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Press Release: Middletown Republican Party fails to file campaign finance reports for 4 years

For Immediate Release 

10/26/2020 

 MIDDLETOWN – On October 22, 2020 -- in “Middletown GOP says they’ve filed campaign finance reports. NJ says they haven’t.” -- the Asbury Park Press reported an alleged serious violation of New Jersey campaign finance law by the Middletown Township Republican Organization, involving the Organization’s failure to file quarterly financial reports to the New Jersey Election Law Enforcement Commission (NJ ELEC) for the last four years. Even though the State sends written reminders to political organizations to file these reports, the Middletown Township Republican Organization has not filed a report since the 3rd quarter of 2016, when it reported $39,000 on hand.  State Assemblyman Gerard Scharfenberger’s daughter, Alannah, was listed as the Treasurer when the last report was filed in October 2016. She is married to Middletown’s Mayor, Tony Perry, who was appointed to the Township Committee in November 2017 to fill his father-in-law’s seat. Since 2016, the Organization has made contributions to other political campaigns and committees in the amount of $22,650, per the ELEC reports filed by those other entities. Those outflows and the initial collection of monies have gone unreported by the Middletown Republican Organization. The Asbury Park Press obtained copies of multiple violation notices mailed out by ELEC. 

These reporting requirements matter. New Jersey’s Pay-to-Play Law prohibits a local government from awarding a contract to a vendor who has made a political contribution unless a “fair and open process” has been used. For the last 4 years, the donors to the Republican Organization in Middletown are unknown. This hurts transparency and diminishes the ability of the citizenry to hold public officials accountable. The State’s Pay-to-Play laws are also intended to address “wheeling”, the practice of channeling money through different political committees to circumvent contribution limits. When political organizations ignore their reporting requirements, enforcing the law becomes difficult. 

The flagrant refusal to abide by the law is especially damaging in Middletown, where the Middletown Republican Organization oversees a network of appointments and contributions that can be financially rewarding for the professionals who participate. The all-Republican Township Committee laid the groundwork for pay-to-play when they abandoned a more rigid pay-to-play ordinance in 2012. https://patch.com/new-jersey/middletown-nj/new-pay-to-play ordinance-adopted-at-committee-meeting. Since then, Committee members Fiore, Settembrino, and Hibell have been depositing campaign checks from T&M Engineering; the firm has somehow always been appointed as Middletown’s Engineering firm under this “fair and open” process for over 30 years. This appointment can lead to revenue for the firm exceeding $1.0 Million in a single year. Campaign donations have also come from Maser Consulting, the engineering firm consistently hired by the Middletown Sewerage Authority year to year, and from the law firm of our Township Attorney (Archer & Greiner). 

 More disturbing, Gibbons PC, the law firm of the Republican Party Chairman, Peter Carton, has been appointed as bond counsel to Middletown for decades. (Mr. Carton is quoted in the APP article and claims the required ELEC reports were filed but somehow went missing, and that he, a partner at one of the largest law firms in the State, has no copies.) Middletown is also an important cog in the County Republican sphere of influence, and it is there that he makes his biggest score, where every year his law firm, Gibbons, is appointed Bond Counsel for the County of Monmouth, earning $495/hour for this work. So much for competitive bidding. Remarkably, when Middletown receives financing from the Monmouth County Improvement Authority, Carton’s firm represents both the County and Middletown.

The “fair and open process” exception in the State’s Local Unit Pay-to-Play Law is intended to drive down contract costs through competition, but is a joke when Middletown appoints the same professionals every year. The Township has had the same engineering firm for approximately 40 years. The Middletown Committee members vote together on almost every single matter put before them, because, we believe, they have no choice.

Since 2016, numerous republican candidates have been elected or appointed to the five-member Middletown Township Committee, including Patricia Snell, who is currently running for re election on the 2020 ballot. The gravy train of donations is no secret. Public records between 2016 and 2020 tell a familiar story. In 2018, Tony Perry received two donations from T&M Engineering of $1600 and $1200. (We also should not be surprised that More Monmouth Musings blogger Art Gallagher was actively blogging in support of the republican team, since his company, Gallco Media, https://www.linkedin.com/in/artgallagher/, is getting paid by them. Mr. Perry’s campaign made payments of $1360 to Mr. Gallagher’s company (Gallco) for “Social Media Consulting”.) Committeeman Rick Hibell is no stranger to the benefits of the township’s amended pay-to-play ordinance, having received in 2018 $600 from T&M and $1,000 from Archer & Greiner, the law firm of Middletown Township Attorney Brian Nelson. Newcomer Ryan Clarke has joined in this professional largesse in 2020, receiving $1,000 from the law firm of the Township Attorney, $1,750 from Maser Consulting, the engineering firm of Middletown’s Sewerage Authority, and $1,450 from the ever-reliable T&M Engineering.

But when it comes to collecting professional donations, Committeeman Tony Fiore reigns supreme. In his campaign in 2017, our Township Engineers (T&M), whom Mr. Fiore voted to reappoint every year since then, made donations of $2,600 and $600 to his campaign. Maser Consulting, our perennial Sewerage Authority Engineers, made donations of $2,600 and $1,200. Not to be outdone, Archer & Greiner, the law firm of our Township Attorney, Brian Nelson, donated $2,000. That’s $9,000 in donations for Mr. Fiore from outside professionals working for Middletown. Committeeman Settembrino was right behind him with the following donations from T&M for his 2016 campaign: $2600 on 5/10/2016, $900 on 7/21/2016 and $600 on 9/13/2016. In 2019, Settembrino raked in $1,600 from T&M, $1,000 from our Township Attorney, and $1,200 from Maser.

“This is a serious matter,” said Middletown’s Democratic Chairman, Michael Morris. “We should question not only the ethics of Republican officials, but whether taxpayers have been overcharged for contracts that were awarded without competitive bidding when the law required it,” Morris continued. “That is not putting taxpayers first,” he said.

For supporting documentation .... Click Here

 

Statement: Middletown Republicans Failed to File 4 Years’ Worth OF NJ ELEC Campaign Finance Reports

For Immediate Release: 

10/24/20

 A Statement from Middletown Democratic Chairman Michael Morris concerning the failure of the Middletown Township Republican Executive Committee to file 4 years’ worth of campaign finance reports.

 Middletown –In response to the recent Asbury Park Press article, “Middletown GOP says they’ve filed campaign finance reports. NJ says they haven’t”, which uncovered a serious violation of NJ campaign finance law by the Middletown Township Republican Organization. The Organization has failed to disclose campaign financial records to the New Jersey Election Law Enforcement Commission (NJ ELEC) for the last four years. 

 The last report on file with NJ ELEC on behalf of the Middletown Republican organization is from the 3rd quarter of 2016 and showed over $39,000 on hand. Since that time the Middletown Republican organization has made contributions to others in the amount of $22,650, all of which has gone unreported and there is now no way to tell who campaign contributions came from, to whom the Middletown Republicans donated funds to or what amount of money changed hands during this period.

New Jersey pay-to-play laws are very specific and are designed to end the practice of “wheeling”, which is when an entity channels money through different political committees to avoid contribution limits.

 Chairman Morris states:

 “It’s said that if you want to uncover the facts all you need to do is “follow the money”. Unfortunately, that isn’t possible here. There is no way for the public to know who campaign contributions came from, to who the Organization directed funds to or what it spent money on over the past four years. Apparently, the Middletown Republicans must think they’re above the law.

 “In addition, we find out the Treasurer responsible for filing these reports is none other than the Mayor’s wife, Alannah Perry who also happens to be the daughter of former mayor, now NJ State Assemblyman, Gerry Scharfenberger. You would think she’d know better."

 “When you combine this with the release of thousands of private email addresses from the township’s emergency alert database, that Tony Perry’s 2018 campaign used to make false and misleading accusations against a Democratic rival in 2018, you have to wonder about the ethics of not just the Perry family but the entire Middletown Republican Organization”.

Did Middletown Committeeman Violate State Campaign Pay to Play Laws By Contributing To Christie Campaign?

That's a question which should be answered by Tony Fiore, the Middletown Committeeman in question.

An article published online last week over at the International Business Times, "Chris Christie Maintained State Pension Investments In Prudential After Top Official Gave Contributions", is an eye opening examples of one reason as to why NJ's state pension system is in such disarray and financial trouble.  It seems that Governor Christie likes to reward those that lavish him with cash in the form of campaign contributions.

Over the past 5 years NJ has paid Prudential Financial to manage New Jersey pension funds, even after company officials made substantial contributions to Christie's 2009 gubernatorial campaign, according to International Business Times.

The IBTimes article names 2 senior Prudential officials, Jon Hanson and John Strangfeld who donated to Gov. Christie's campaign and/or nonprofits favored by Christie and who each served on various Christie transition teams and have been personal advisers to the governor.

The article also mentions one other senior Prudential executive that donated to Chris Christie's campaign for governor in 2009, Middletown's very own township committeeman, Tony Fiore:

"Campaign finance records show that at least one other Prudential executive donated to Christie’s 2009 campaign. Anthony Fiore, then a vice president with Prudential Investments, gave $2,000 to the governor’s campaign. Currently a Republican committeeman in Middletown and a senior vice president at Prudential, Fiore’s bio describes him as “a certified retirement and pension specialist.” Still, Prudential's spokesperson asserted that "Fiore did not meet the definition of an investment management professional" under New Jersey rules, though he provided no further explanation. Fiore did not respond to a request for comment about his contributions to Christie."

The article states that, New Jersey’s pay-to-play rules very are clear and restricts contributions from firms managing state pension money. The rules "explicitly define a covered “investment management professional” as “any person associated with an investment management firm, its parent company, or any other entity that controls the investment management firm, who is a member of the executive or management committee of such firm or controlling entity, or similarly situated officials.”, IBTimes stated.

You can read the full article ... Here 

If He Runs For President Will Christie Be Forced To Quit As Governor?

Why hasn't anyone talked about before?

On his show this past Sunday, Steve Kornacki, host of MSNBC's UP w/ Steve Kornacki, outlined Chris Christie’s potential predicament he will find himself in if he plans to run for President in 2016. If Christie declares his candidacy for President after being reelected as NJ Governor this fall, it is extremely likely he would have to resign as governor so that he could raise campaign funds from Wall Street firms.

As a "result of two federal rules, one from the Municipal Securities Rulemaking Board dating back nearly two decades and the other from the SEC in 2011, that drastically curb the ability of employees of Wall Street firms to donate to governors seeking federal office and of the uniquely broad appointment powers that come with the New Jersey governorship. Put together, they have the potential to prevent Christie from raising millions of dollars from a cash-rich sector – the financial services industry – that has been particularly enthusiastic about him."

According to a new book written by Dan Balz,“Collision 2012”, Mitt Romney was very concerned about this issue last year when he courted Christie to be his vice-presidential running mate. When Romney asked Christie if he would resign as governor to be on his ticket, Christie laughed not realizing that Romney was serious - when Christie refused Romney turned to Paul Ryan.

Kornacki wrote about all this yesterday on Salon.com, it's an interesting read that New Jerseyan's should take a look at before deciding to vote for Chris Christie again in November,  it's a potential game changer. If Christie runs for President and resigns one year after reelection than essentially, voters will be voting for Lt. Governor Kim Guadagon to be NJ's next governor, not Christie!

Visit NBCNews.com for breaking news, world news, and news about the economy

Visit NBCNews.com for breaking news, world news, and news about the economy

Visit NBCNews.com for breaking news, world news, and news about the economy

Letter: Middletown Township Committee Moves to Abandon Strong Pay-to-Play Rules

This letter to the editor was written by Linda Baum, Candidate for Middletown Township Committee. It appears online at the Atlantic Highlands Herald:

On May 21st, the Middletown Township Committee introduced Ordinance 2012-3060, which loosens the Township’s pay-to-play rules and reinstates the weaker state regulations that were in place prior to January 1, 2008. A public hearing on the Ordinance is scheduled for June 18 at 8 p.m.

The Township’s move follows the footsteps of the Monmouth County Freeholders, who voted unanimously on January 26th to adopt the state’s “fair and open” process in place of stronger pay-to-play rules that were put in place in the county after 2008 Operation Bid Rig.

The Township Ordinance, if adopted, opens the door to rewarding politically connected persons and businesses with municipal contracts, weakens competition, and may have the direct effect of increasing property taxes in line with higher contract costs.

New Jersey State Comptroller Matthew Boxer released a 20-page report in September 2011 entitled “Weaknesses in the Pay-to-Play Law’s “Fair and Open” Contracting System”. It states, “Qualifying for the fair-and-open exception returns the local government entity to the traditional, unregulated system of contracting.” “In effect, no-bid contracts may be awarded to favored local vendors much as they had been prior to the passage of the pay-to-play law, and without regard to issues such as vendor cost.”

Further, in order to receive certain categories of state aid, a municipality is required to have a strong pay-to-play ordinance in place. The state Department of Community Affairs recommends a model pay-to-play ordinance that is similar to the one currently in effect in Middletown.

”The main problem with “fair and open” is that it’s so easy to qualify, that it pretty much allows for business as usual,” said Heather Taylor, Communications Director for public advocacy organization The Citizens Campaign. She said, ”When we are reading in the paper that stealth PACs are springing up in Middlesex County and other places, now is not the time to be relaxing the rules, but rather the time to make sure we have the strongest laws possible.”

Linda Baum

President Obama's Weekly Address: 1/23/10 This Week's Supreme Court Decision

In this week’s address, President Barack Obama addresses the Supreme Court decision to further empower corporations to use their financial clout to directly influence elections and vows that "as long as I'm your President, I'll never stop fighting to make sure that the most powerful voice in Washington belongs to you."

Hypocrite Handlin Took $3000 From NJEA

13th Legislative District Assemblywoman Amy Handlin(R-Monmouth) has to be one of the largest hypocrites in Trenton.

In a press release issued yesterday, before today's stunning US Supreme Court ruling that overturned decades worth of campaign finance reforms put in place by Congress, Handlin praised Governor Christie's executive order that "...created a more fair political system for taxpayers by applying pay-to-play restrictions to contributions made by labor unions or to legislative leadership committees... "

So why is Assemblywoman Handlin a hypocrite you ask? Handlin had no problems with the pay-to-play laws while taking a $3,000 campaign contribution from the New Jersey Education Association (NJEA) while seeking re-election last year!

That's right, Handlin took money from the largest labor union in the State and now says that it is wrong for unions to be politically active by making campaign donation to candidates who seek political office.

It seems that as long as Handlin got her money from the NJEA everyone else can now be damned.

Do you think she has the decency to return the money to the NJEA? I doubt it.

What a hypocrite!

McCain camp: Obama needs $200 million to ‘keep pace’

The hill.com is reporting that Republican presidential candidate John McCain’s campaign said in a memo Thursday that, in order to “keep pace” with the Arizona senator, Democratic rival Sen. Barack Obama (D-Ill.) would have to raise $200 million between now and Election Day.

McCain’s camp argued that, with help from the Republican National Committee (RNC), it has more resources than the Illinois senator.

I think that this maybe wishful thinking and an attempt by the McCain camp to get Obama to start spending money early inorder to level the playing field.

Click on the headline and read all about it yourself.