Showing posts with label double dipping. Show all posts
Showing posts with label double dipping. Show all posts

Wednesday, September 21, 2016

Double-Dippers Dominate NJ Sheriff Elections

Mark Lagerkvis:

Jim McDonald is weeks away from hitting a jackpot in New Jersey’s election sweepstakes as a new double-dipping county sheriff.

In January, he retired as Washington Township police chief at age 54 to draw a $94,000 a year state pension – and run for Warren County sheriff. He is unopposed on the November ballot after winning the GOP primary on a platform of “fiscal responsibility.”

McDonald is a sure bet to add a sheriff’s salary of $128,000 to his income next year, increasing his total annual take from public coffers to $222,000. He and his campaign did not respond to requests for comment.

“Public pensions are not really intended to be a way to change your lifestyle and double your income,” said Sen. Jennifer Beck, R-Red Bank, a longtime opponent of double-dipping. “It was created to support you when you are no longer working.”

Currently, three-fourths of the state’s sheriffs – 16 out of 21 – take advantage of existing loopholes to draw county salaries while receiving pensions as law enforcement “retirees,” according to a NJ Spotlight analysis. In an upcoming election packed with sheriff candidates who are double-dippers or would-be double-dippers, those numbers are unlikely to change much.

The full story on double-dippers running for sheriff is online at http://www.njspotlight.com/stories/16/09/18/double-dippers-dominate-sheriff-elections-across-new-jersey/

NJ Spotlight’s current list of double-dipping sheriffs is posted at http://www.njspotlight.com/stories/16/09/18/the-list-new-jersey-s-16-double-dipping-county-sheriffs/

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Mark Lagerkvist is a veteran investigative reporter who has worked for CNBC, News 12, Asbury Park Press, New Jersey Watchdog and other news outlets. His work has won more than 60 journalism awards, including honors from National Press Club, Scripps Howard Foundation, and Investigative Reporters & Editors (IRE). He can be reached at Mark@Lagerkvist.net.

Monday, August 31, 2015

NJ Watchdog: Three-fourths of NJ sheriffs double-dip




For the past quarter century, Armando Fontoura has been looting a New Jersey state pension fund. But it won’t do any good to call the cops.

Fontoura is sheriff of Essex County. A dean among double-dippers, he draws $207,289 a year from public coffers – $144,896 in salary plus $62,393 from pension as a retiree of his own office.

Today is the 25th anniversary of Fontoura’s faux retirement. So far, he has collected $1.35 million in retirement cash without ever giving up his full-time county paycheck.

On Friday, Aug. 31, 1990, Fontoura retired as county undersheriff at age 47. The following Monday, he returned to work at Essex County with the same salary and duties, but a different title – sheriff’s officer chief. One year later, he took charge as sheriff, a post he’s held ever since.

"Does it look bad? Yes," admitted Fontoura. "No question about it, it looks bad. Was it legal? Yes."
Worse for taxpayers, three-fourths of New Jersey’s county sheriffs – plus hundreds of other public officials – are taking advantage of pension loopholes to collect dual incomes.

A New Jersey Watchdog investigation found the sheriffs in 16 of the state’s 21 counties are double-dippers. In addition, the sheriffs also employ 37 undersheriffs who returned to work after retiring as local, county or state law enforcement officials at relatively young ages.

In total, the 53 officers collect nearly $10 million a year from public coffers – $5.7 million in salaries plus $4.1 million in retirement pay – according to payroll and pension records.

The complete story – along with New Jersey Watchdog’s list of double-dipping sheriffs and undersheriffs – is online at http://watchdog.org/235267/sheriffs-double-dip/.

Wednesday, March 25, 2015

NJ Watchdog: After 16 years as double-dipper, cop retires for 2nd pension





As New Jersey looks to fix a state pension system that's billions in debt, Patrick J. Higgins and other double-dippers find new ways to squeeze it for every dollar they can.

Higgins retired this month – for a second time. So the longtime law officer will begin collecting two state pensions, totaling nearly $100,000 a year, instead of one.

A New Jersey Watchdog examination of the underlying circumstances illustrates how public officials can legally exploit the state’s troubled retirement system, which is underfunded by $170 billion.

In 1999, Higgins retired as a state police detective. Since age 51, he has collected pension checks from the State Police Retirement System, which currently pays him $55,000 a year. SPRS rules allow members to retire after 25 years of service, regardless of age.

But Higgins never really retired. The month before that “retirement” took effect, he was hired by the Sussex County sheriff as an investigator. He quickly enrolled in another state pension plan, the Public Employees Retirement System. Higgins remained in PERS when he left the sheriff’s office in 2003 to join the county prosecutor’s staff in a similar position.

For 16 years, Higgins has collected a Sussex County salary – $101,696 in 2014 – plus his SPRS pension. Last year, his two streams of income from public coffers added up to $156,746.

At age 67, Higgins has decided to retire again – this time as a detective sergeant in the county prosecutor's office. But it’s not a garden-variety retirement based on his length of service.

Instead, it’s a disability retirement – a type of pension that will pay him more than he would have otherwise received. It was approved by the PERS board of trustees in closed session last month.

The full story is online at http://watchdog.org/207540/new-jersey-double-dipper/.

Wednesday, November 12, 2014

NJ Watchdog: New Jersey double-dippers scoop New Yorkers at the public trough




Start spreading the news: New Jersey is a paradise for double-dippers compared to neighboring New York.

New York law requires its state and local government agencies to formally certify an “urgent need” for rehiring the retired workers. officials must declare there are “no available, qualified non-retirees” who can fill the open positions, which must be publicly advertised.

New Jersey governmental units can generally hire back retirees without any justification or legal restrictions. Special paperwork and approvals are not needed – and in some instances, workers can return to the public payrolls the day after they retire.

In New York, 665 retirees are currently working at public jobs with waivers, according to the Empire Center report.

Meanwhile, New Jersey officials do not track the hundreds – and likely thousands – of working retirees who receive both governmental pensions and salaries.

New York State’s efforts to control double-dipping – by “retired” public officials who collect pensions while continuing to work in government jobs – are highlighted in a study released this week by the Empire Center, a non-profit think tank based in Albany.

While the Garden State is not mentioned in the report, an analysis by New Jersey Watchdog reveals significant differences in how the two states approach the double-dipping dilemma.

The story is now online at http://watchdog.org/182661/nj-ny-double-dippers/.

Saturday, October 4, 2014

NJ WATCHDOG: Christie's biggest double-dipper quits




For immediate release

Christie’s biggest double-dipper quits on cusp of NJ pension debate

As the pension reform issue heats up in New Jersey, the most prominent double-dipper in Gov. Chris Christie’s administration is stepping down today.

Lou Goetting has collected $140,000 a year as the governor’s deputy chief of staff in addition to an $88,860 pension as a retired state employee – a fact that repeatedly embarrassed Christie as he calls for changes in a state retirement system that faces a deficit in excess of $100 billion.

Ironically, Christie hired Goetting – pronounced “getting” – in 2010 as a top adviser on cutting the cost of government.

In addition to his expertise on fiscal issues, Goetting displayed skill in guiding more than $1 million in pension and severance pay from public coffers into his pockets.

The full story is now online at http://watchdog.org/175032/christie-doubledipper-pension/.

Monday, September 29, 2014

NJ Watchdog fights for Guadagno pension probe records in appeals court





For immediate release:


The mystery of what happened in a criminal investigation of an alleged $245,000 pension fraud implicating Lt. Gov. Kim Guadagno may finally be solved in a New Jersey appeals court.

A New Jersey Watchdog reporter is appealing a lower court’s decision not to release three key documents that include the findings of a probe by the attorney general’s Division of Criminal Justice.

“In spite of what appears to be a clear case of high-ranking government officials aiding or participating in a pension double-dip scheme, the DCJ closed the investigation without any charges being filed,” the reporter’s attorney, Donald M. Doherty Jr., argued in a brief submitted last week in Superior Court Appellate Division.

“The lieutenant governor was the Monmouth County sheriff during the questionable activities; she is also a former deputy director of DCJ, the investigating agency,” continued Doherty. “The public should be able to learn how DCJ came to its decision and whether it even considered the culpability of the lieutenant governor.”

Guadagno would become governor if Chris Christie steps down to run for president in the 2016 election. Release of the DCJ files could lead to greater scrutiny of why Christie did not use his constitutional authority to appoint a special prosecutor or investigator and avoid the inherent conflict-of-interest.

DCJ lawyers contend that disclosing the records would undermine the agency’s ability to conduct investigations of public corruption.

“How ironic is it to have public officials making secret deals and then contending that revealing the investigation needs to be secret to preserve public confidence?” Doherty asked the court. “Sunshine is the best disinfectant.”

The controversy known as “Doublegate” began when Guadagno was Monmouth County sheriff in 2008 – the year before she first ran for lieutenant governor as Christie's running mate.

As sheriff, Guadagno made false and conflicting statements that enabled her chief officer, Michael Donovan, to improperly collect an $85,000 a year pension in addition to his $87,500 salary, as first reported by New Jersey Watchdog in 2010.

The full story is now online at http://watchdog.org/173842/guadagno-pension-probe-2/. The brief can be viewed or downloaded at http://watchdog.org/wp-content/blogs.dir/1/files/2014/09/ML-v-DCJ-appeal.pdf.

NJ WATCHDOG: Report bears bad news; fails to bare abuses



New Jersey taxpayers will find plenty of bad news in the first report of the special commission Gov. Chris Christie appointed to study the $90 billion deficit in the state’s retirement system.

“This problem is dire and will only become much worse if meaningful steps are not taken quickly,” concluded the New Jersey Pension and Health Benefit Study Commission paper released yesterday.

Yet the findings ignored many of the weaknesses and abuses that have heavily contributed to the dilemma threatening New Jersey’s fiscal health. It did not mention of the sham retirements, double-dipping, disability cheats, part-timers collecting full benefits or generous six-figure pensions that have drained state funds.

The governor’s hand-picked, blue ribbon panel overlooked those abuses – including most of the “seven deadly sins” detailed in a New Jersey Watchdog investigative report earlier this week.

The story is online at http://watchdog.org/173560/nj-pension-report/.

Wednesday, May 21, 2014

NJ WATCHDOG: Christie dumps pension promises to plug budget



For immediate release:


Add Chris Christie’s name to the list of New Jersey governors who reneged on state pension promises.

Faced with an $800 million budget deficit and falling revenue projections, Christie slashed $900 million from a $1.6 billion pension contribution the state is required to make by June 30 under state statute.

“Our problem is we’ve made promises to people that we cannot keep,” Christie admitted in a press conference Tuesday.

In addition, Christie plans to chop nearly $1.6 billion off next year’s scheduled pension payment of $2.25 billion.

“I’ve made the decision we’re not going to blindside our students, blindside our seniors, higher education or those who rely on the safety net the state provides in order to balance the budget,” said the governor.

Instead, Christie is diverting the funds away from a public pension system that already faces a shortfall of $51 billion, according to state Treasury figures.

Christie’s override of state statute with an executive order is a conflict likely to wind up in court. Meanwhile, the governor intends to get his way.

Christie acknowledged his vaunted pension reform of 2011 – which he once called his “biggest governmental victory” – is “not making a significant enough dent.”

Within the next month, Christie said he would propose a new round of cuts to pension and health benefits received by public workers and retirees.

During the press conference, the governor tried to absolve himself of any blame for the crisis.

“I am not going to pay for the sins of my predecessors,” declared Christie, still eyeing a run for the presidency in 2016.

To be fair, pension funds were shortchanged by a succession of previous New Jersey governors – including Jim Florio, Christine Todd Whitman, James McGreevey, Richard Codey and Jon Corzine.

Yet Christie, a self-proclaimed reformer, has done little to curb pension abuses within his office and administration. New Jersey Watchdog investigations have found:

  • Louis Goetting, Christie's deputy chief of staff, rakes in $228,860 a year – $140,000 in salary plus $88,860 in pension as a retired state employee.
  • Of 60 double-dippers in the executive branch, 19 were hired under Christie, New Jersey Watchdog reported in 2012.
  • A subsequent New Jersey Watchdog investigation last year identified 80 State Police retirees who returned to the state payroll full-time as double-dippers.
  • Adam Heck, the governor's associate legal counsel, gets a $44,818 a year state disability pension in addition to his $110,000 salary.
  • Heck is one of 18 "disabled" state employees who collect salaries for working plus disability pensions because they supposedly can no longer work, New Jersey Watchdog discovered.

Perhaps the most notable pension indiscretion involves Christie’s running mate, Lt. Gov. Kim Guadagno.

Guadagno, as Monmouth County sheriff in 2008, made false and misleading statements that enabled her top aide to improperly collect an $85,000 a year pension in addition to his $87,500 salary. The story was first reported by New Jersey Watchdog in October 2010.

The story is online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/05/20/christie-pension-promises/.

Tuesday, May 6, 2014

NJ WATCHDOG: Christie tries to solve budget crisis with 'problem'



For immediate release:


The irony of New Jersey’s latest budget crisis is getting thick in Trenton as Gov. Chris Christie turns to Lou Goetting for help.

Christie is scrambling to plug an $800 million gap before the state fiscal year ends in less than two months.

“I’m going to use every tool at my disposal to get a balanced budget,” Christie declared at a press conference last week. “There’s nothing off the table.”

One of those “tools” is Goetting, Christie’s deputy chief of staff and budget guru, sources told NJ Spotlight. However, Goetting personifies a problem that helped cause the mess.

Goetting – pronounced “getting” – gets $228,860 a year from state coffers – $140,000 in salary plus $88,860 from pension. New Jersey Watchdog investigations have found he is one of many double-dippers who collect two sets of checks despite Christie’s pension reforms.

Such excesses have contributed to a $51 billion shortfall in New Jersey’s public retirement system. Trying to keep pension funds solvent for the future, Christie and the Legislature agreed to mandate increases in the state’s long-neglected annual payments.

The next installment of $1.55 billion is due before the fiscal year ends, as required by state statute. That is also the state’s deadline to come up with $800 million to balance its budget, as required by the State Constitution.

If anyone knows how to manipulate the system, it’s Goetting. In addition to his double-dipping, he has received $370,000 in golden parachute payouts from public institutions.

The story is online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/05/05/christie-budget-crisis/.


Monday, April 21, 2014

NJ WATCHDOG: Ex-lawmaker doubles his NJ pension




For immediate release:

GOV. CHRISTIE'S CREW HELPS EX-LEGISLATOR DOUBLE HIS PENSION

Larry Chatzidakis needed a favor from Gov. Chris Christie’s administration.

Nearing his 62nd birthday, the former New Jersey assemblyman had never held a full-time public job. Based on his 11 years as a legislator plus other part-time government posts, Chatzidakis might qualify for a modest state pension of roughly $19,000 a year.

Then a new executive position was created at the Motor Vehicle Commission – in the face of Christie’s vow to cut the state’s work force.

Chatzidakis was hired by MVC in May 2011 at a salary of $95,000 a year. It was also an opportunity to double his annual pension to $38,630 by the time he retired this year.

“It’s a fact I was hired and I retired,” Chatzidakis told New Jersey Watchdog. “The motivation? People can think anything they want.”

The month after he retired, the longtime GOP leader from Burlington County’s Mount Laurel Township returned to the public spotlight to defend Christie’s role in the Bridgegate scandal.

Quid pro or no, the Chatzidakis case illustrates how questionable pension practices continue under the nose of a governor who championed reforms of the state retirement system.

The story is online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/04/21/christie-pension-abuse/.

Wednesday, March 5, 2014

NJ Watchdog: Pension hypocrisy blocks Christie's comeback




For Immediate Release:

An embattled Gov. Chris Christie is trying to regain his political mojo with a new campaign to reform New Jersey's pension system and its $52 billion debt.

But unless Christie fixes his own administration's pension abuses, the governor risks charges of hypocrisy. According to New Jersey Watchdog investigations:

  • Louis Goetting, Christie's deputy chief of staff, rakes in $228,860 a year – $140,000 in salary plus $88,860 in pension as a retired state employee.
  • Of 60 double-dippers in the executive branch, 19 were hired under Christie, New Jersey Watchdog reported in 2012.
  • A subsequent New Jersey Watchdog investigation last year identified 80 State Police retirees who returned to the state payroll full-time as double-dippers.
  • Adam Heck, the governor's associate legal counsel, gets a $44,818 a year state disability pension in addition to his $110,000 salary.
  • Heck is one of 18 "disabled" state employees who collect salaries for working plus disability pensions because they supposedly can no longer work, New Jersey Watchdog discovered.


The story is now online at New Jersey Watchdog. The direct link is Here 

Thursday, February 6, 2014

NJ Watchdog: Judge orders release of Guadagno pension probe records




For Immediate Release:


A New Jersey Watchdog reporter has won the latest round in a three-year battle for public records surrounding the state's hush-hush investigation of an alleged pension scheme implicating Lt. Gov. Kim Guadagno.

Administrative Law Judge Linda M. Kassekert ordered the state Treasury to release 25 of 26 documents the Christie Administration has fought hard to keep secret. The parties have a Feb. 11 deadline to appeal the decision.

Guadagno would become acting governor of New Jersey if an embattled Gov. Chris Christie does not serve his full term.

The controversy focuses on an alleged pension scheme and false statements by Guadagno when she was Monmouth County sheriff.

Treasury officials gathered the documents during an inquiry of whether Guadagno's chief officer, Michael W. Donovan Jr., improperly collected nearly $85,000 a year in state retirement pay in addition to his $87,500 annual salary.

The story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/02/06/guadagno-pension-probe/.

Tuesday, January 21, 2014

NJ WATCHDOG: Before Bridgegate & Hoboken, There Was 'DoubleGate'



For Immediate Release:



Long before the Bridgegate and Hoboken scandals, the Christie Administration has been ducking a $245,000 pension probe that implicates Lt. Gov. Kim Guadagno.

In its ongoing investigation of "Doublegate" that began in October 2010, New Jersey Watchdog has reported:

· As a county sheriff, Guadagno made false and contradictory statements that enabled her top aide to collect pension checks in addition to public salary. The subterfuge cost a state pension fund $245,000.
· Based on available evidence – including records showing Guadagno's involvement – a state pension board asked authorities in May 2011 to begin a criminal investigation.
· Christie failed to appoint a special prosecutor to conduct the probe. Instead, a conflict-riddled investigation fell to the attorney general's Division of Criminal Justice, where Guadagno had previously served as deputy director.
· Thirty-two months later, the results of the probe remain a state secret. The Christie entourage has stonewalled inquiries, even refusing to acknowledge whether the investigation is ongoing or completed.

A New Jersey Watchdog reporter is suing DCJ for records in Mercer County Superior Court. State lawyers are arguing to keep all information about the probe confidential indefinitely.

For the full story, links to all 20 New Jersey Watchdog reports on Doublegate are online at http://newjersey.watchdog.org/2014/01/21/before-bridgegate-and-hoboken-scandals-there-was-doublegate/

Wednesday, January 15, 2014

NJ WATCHDOG: 'Heck' of hypocrisy in Christie's call for reform




For Immediate Release:

There's a 'Heck' of hypocrisy in Chris Christie's call for disability pension reform during his State of the State address.

"Our pension system is burdened by some who collect disability retirement because they claim they are 'totally and permanently' disabled, but are now working full-time," said New Jersey's governor, ignoring the problem in his own office.

Adam J. Heck, one of Christie's state lawyers, has collected a $110,000 salary plus nearly $45,000 in tax-free disability retirement checks from the state.

At age 28, Heck retired as a Middletown Township police officer in 1993. He was struck on the hand with a hockey stick while responding to a domestic dispute, according to state pension records.

Heck is one of 18 'disabled' state employees who double-dip $2.2 million a year – $1 million in tax-free accidental disability pay plus $1.2 million in salaries – named in a New Jersey Watchdog investigative report last year.

It is only the tip of what happens in a police disability pension system that pays out $200 million a year. The New Jersey Watchdog report did not encompass pensioners who have returned to work for county or local governments – or the private sector – while collecting benefits for not being able to work.

The story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/01/15/heck-of-hypocrisy/.

Friday, January 3, 2014

NJ WATCHDOG: Double-Dipping; It's Deja Vu All Over Again





NJ LEADERS LACK APPETITE FOR DOUBLE-DIPPING REFORM

Double-dipping is so sweet that New Jersey public officials have little appetite for reform.

So despite the sour taste for taxpayers, the legacy of governmental retirees who collect a state pension – then return to public payrolls for a second check – will continue into 2014 and likely for years to come.

New Jersey Watchdog investigations in 2013 found:

·     Eighty State Police retirees were rehired by the state, but continued to receive their pensions. Collectively, they received $12.8 million a year – nearly $7 million a year in salaries, plus $5.8 million in retirement pay.
·     Seventeen county sheriffs and 29 undersheriffs also double-dip.  Together, the 46 top cops raked in $8.3 million a year – $3.4 million from pensions and $4.9 million in salaries.
·     Forty-five retired school superintendents returned to work as interim superintendents during the past school year. In addition to their executive pay, they used a loophole in state law to pocket more than $4 million from pensions.

Even though state pension funds face a $47 billion shortfallNew Jersey authorities have never tried to keep tabs on double-dipping or calculate how much it costs.


The full story is online at http://newjersey.watchdog.org.

Saturday, November 23, 2013

NJ's 'secret' public records




For Immediate Release:

CHRISTIE ADMINISTRATION CLAIMS RECORDS OF PUBLIC RECORDS ARE SECRET

Is a government's record of how it keeps public records a public record?

Not in New Jersey, state officials claim. Especially if that record might prove embarrassing to the administration of Gov. Chris Christie.

The Treasury denied a New Jersey Watchdog reporter's request for details on how its payroll and pension databases are kept. The indexes, known as record layouts, would show whether the agency collects data that would enable it to easily track state employees who collect both salaries and pensions – a widespread practice in New Jersey known as "double-dipping."

The reporter filed a lawsuit against Treasury with Mercer County Superior Court in Trenton. A hearing date has yet to be scheduled.

The reporter requested the record layouts in July under the Open Public Records Act, which requires governmental agencies to respond within seven business days. Instead, Treasury took 64 business days to decide, including six extensions for extra time.

Then after nearly three months of delays, Treasury declared its records of records were "not government records" under state law, denying the request in its entirety. 

Two years ago, Treasury informed the State Legislature it had "no estimate" of the extent or cost of double-dipping. The lingering question is whether Christie's bean counters were lazy, less than forthcoming, politically motivated or all of the above.

The story is now online at http://newjersey.watchdog.org.  The direct link is http://newjersey.watchdog.org/2013/11/18/9451/.  

Monday, November 4, 2013

Lt. Gov. Guadagno Breaks Silence on Double-Dipping




For Immediate Release:


New Jersey Lt. Gov. Kim Guadagno – as Monmouth County sheriff in 2008 – made conflicting and misleading statements to enable her top aide to collect an $85,000 a year pension plus an $87,500 salary.

Now in the heat of a political campaign, Guadagno has broken a long silence. She claims her maneuvers benefitted taxpayers.

"It saved the taxpayers of Monmouth County $50,000 for the year, put a uniformed officer on the street, put a well-qualified retired law enforcement officer in his place," Guadagno told Associated Press in a national wire story.

Her explanation overlooked several key facts:


  • The aide, Michael W. Donovan, collected $228,000 he otherwise would not have received from a state pension fund. He also avoided paying $17,000 in new contributions to the Police and Firemen's Retirement System.
  • The incident triggered an investigation in 2011 by the state Division of Criminal Justice. The probe was requested by the PFRS board of trustees.
  • Despite a glaring conflict of interest – Guadagno was DCJ's former deputy director – Gov. Chris Christie failed to appoint an independent investigator or prosecutor to handle the case.
  • DCJ has refused to reveal the results of its investigation. A New Jersey Watchdog reporter is suing the state in Mercer County Superior Court for records of the probe.
The Guadagno-Donovan pension controversy was first revealed by a New Jersey Watchdog investigation in 2010.

The full story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2013/11/01/9333/.

Monday, October 21, 2013

NJ WATCHDOG: Christie, Corruption Probe & Conflicts of Interest




For Immediate Release:

GUADAGNO PENSION PROBE: DOES PUBLIC HAVE A RIGHT TO KNOW?
OR WILL NJ AUTHORITIES KEEP LT. GOV'S SECRETS FOREVER?

Should New Jersey officials be allowed to keep forever secret a criminal investigation on alleged corruption involving a prominent elected official?

Or does the public have a right to know what the state found – and how authorities handled a probe rife with conflicts of interest?

Those questions are at the heart of a court battle between state Division of Criminal Justice and a New Jersey Watchdog reporter. At stake is the release of records likely to implicate Lt. Gov. Kim Guadagno in a scheme that cost a public pension fund nearly a quarter-million dollars.

A Mercer County Superior Court judge ruled on Oct 3 that DCJ's criminal investigatory files are exempt from disclosure under the Open Public Records Act. But the justice rejected the state's request to dismiss the reporter's common-law claim for the documents.

To prevail under common law, a requestor must show that the public interest in release of the records outweighs the state's interest in keeping the information confidential.

"The public has an indisputable and overriding interest in knowing about the integrity of government and the conduct of elected officials in their governance," stated the reporter in court documents filed last week. "The public's interest in this matter far outweighs the private interests of a few public pensioners or elected officials."

The story – and the reporter's full statement, subject to penalties for perjury – are now online at http://newjersey.watchdog.org.

The direct link to the story is http://newjersey.watchdog.org/2013/10/21/9182/. The direct link to the reporter's statement to the court is http://newjersey.watchdog.org/files/2013/10/ML-10-14-13-cert.pdf. For media inquiries, contact Mark Lagerkvist at mark@lagerkvist.net.


Friday, October 11, 2013

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.


Tuesday, October 8, 2013

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.