Questions remain on Guadagno pension-fraud probe after State shuts door on probe

From NOT NJ Watchdog:

The shadow of a pension fraud probe continues to hang over Lt. Governor Kim Guadagno, who acted as titular head of New Jersey government for most of last year and is widely expected to run for governor in 2017.

With a recent appellate court ruling that released some records but withheld the findings of the investigation, it is unlikely the public will ever learn why the case was quietly dropped by the attorney general’s Division of Criminal Justice, where Guadagno once served as deputy director.

As Monmouth County sheriff, Guadagno made false and conflicting statements that enabled her chief officer, Michael Donovan, to collect an $85,000 a year pension in addition to his $87,500 salary. It was one of three cases the Police and Firemen’s Retirement System board of trustees referred to DCJ for investigation.

“The concerns raised are that the taxpayers of New Jersey are being defrauded,” wrote PFRS board secretary Wendy Jamison to then-Attorney General Paula Dow in June 2011. “Please provide this office with the outcome of this investigation.”

Instead, the DCJ refused to share the findings with PFRS, leaving its board without the guidance it sought on how to handle double-dipping abuses.

“Upon a thorough investigation of this matter, it is being returned to you for whatever administrative action you deem appropriate,” DCJ Corruption Bureau Chief Christine Hoffman informed PFRS in a June 2012 letter that reported the case closed, but little else.

The Appellate Division ordered the release of those two communications after a lengthy public records battle. Yet the judges allowed DCJ to keep secret a five-page memo that contains the findings of the investigation.

While the probe ended without prosecution, the underlying facts of the case continue to challenge Guadagno’s credibility.

The full story by investigative reporter Mark Lagerkvist is now online at NJ Spotlight - http://www.njspotlight.com/stories/16/01/05/state-shuts-door-on-guadagno-pension-fraud-probe-but-questions-remain/.

NJ Watchdog: Criminal probe secrets center on Christie's second-in-command

The public’s right to know the outcome of a criminal probe of an alleged $245,000 pension fraud involving New Jersey Lt. Gov. Kim Guadagno will be debated next week in state appellate court.

New Jersey Watchdog is appealing a lower court’s decision not to release the findings of an investigation by the state attorney general’s Division of Criminal Justice. Oral arguments are scheduled to be heard next Wednesday at Rutgers Law School in Camden.

Guadagno frequently serves as acting governor when Chris Christie travels outside the state on presidential campaign trips. She is mentioned as a likely Republican candidate for governor in 2017 – and could take the reins even earlier if Christie steps down before his term expires.

The alleged fraud occurred when Guadagno was Monmouth County sheriff in 2008, the year before she first ran for lieutenant governor as Christie’s running mate.

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 story included links to several smoking-gun documents, including an internal memo initialed by Guadagno.

In May 2011, DCJ began a criminal investigation at the request of a state pension board. But the probe was riddled by a major conflict of interest because Guadagno is a former DCJ deputy director. Christie did not use his constitutional power to appoint a special investigator or independent prosecutor.

Stonewalled by DCJ and the governor’s office for nearly two years, New Jersey Watchdog sued the state in 2013 for records of the investigation.

The investigative news site won a partial victory in the trial court last year when Superior Court Judge Mary C. Jacobson ordered DCJ to reveal some of the documents it sought.

However, Jacobson also ruled DCJ was allowed to keep the findings of the investigation secret. After reviewing the documents in private, the judge determined the state’s interest in keeping the records confidential outweighed the public’s right to know.

In September 2014, New Jersey Watchdog appealed Jacobson’s decision to the State Appellate Division.

Lawyers for the state contend disclosure would undermine DCJ’s future ability to conduct corruption investigations. The investigative news site is arguing that the public has an overriding interest in knowing whether or not the probe itself may have been corrupted.

Appellate Division Judges George S. Leone and Carol E. Higbee will preside at the hearing. Judge Michael A. Guadagno, the lieutenant governor’s husband, is not assigned to the case.

The story is online at http://watchdog.org/235567/christie-criminal-probe-secrets/.

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: Double trouble for Christie

For immediate release:

BRIDGEGATE AND DOUBLEGATE SPELL DOUBLE TROUBLE FOR CHRISTIE

Long before Bridgegate, Gov. Chris Christie and his administration have quietly tried to escape Doublegate – an alleged $245,000 pension fraud involving Lt. Gov. Kim Guadagno.

New Jersey Watchdog revealed last week that an investigation by the attorney general’s Division of Criminal Justice was virtually non-existent, producing only a secret five-page report following a 13-month probe.

Today, NJ Spotlight followed up with a comprehensive report by Mark Magyar.

Bridgegate and Doublegate spell double trouble for the Christie and company. While Bridgegate has gained national fame, the details of Doublegate are still not widely known. Here is a summary comparing the two scandals:

Bridgegate is an investigation into whether the Christie Administration closed traffic lanes at the George Washington Bridge as retribution against the mayor of Fort Lee, who refused to endorse Christie in the 2013 election.

Doublegate began as an investigation into alleged pension fraud involving Lt. Gov. Kim Guadagno. It now focuses on whether the Christie Administration effectively sabotaged the investigation.

Bridgegate was investigated by an outside law firm hired by the governor. The inquiry was headed by attorney Randy Mastro.

Doublegate was investigated by the attorney general’s Division of Criminal Justice. Despite an apparent conflict of interest – Guadagno is a former deputy director of DCJ – Christie did not appoint a special investigator or prosecutor.

The Bridgegate report by Mastro is 360 pages. It was publicly released and posted on the Internet at http://gdcreport.com/.

The Doublegate report by DCJ is five pages. It remains a secret document, despite a public records lawsuit by a New Jersey Watchdog reporter.

During the Bridgegate probe, Mastro and his associates interviewed 75 witnesses during a two-month period

During the Doublegate probe, there is no record that DCJ contacted, interviewed or took statements from anyone during a 13-month investigation.

Christie held two press conferences to discuss Bridgegate – a two-hour marathon in January and another one in March after the Mastro report was released.

Christie and Guadagno have repeatedly refused to answer questions about Doublegate.

The Democrat-controlled State Legislature has aggressively pursued an investigation of Bridgegate that has dimmed Christie’s chances of pursuing the White House in 2016.

The State Legislature has essentially ignored Doublegate, which could bring the pension abuses of both Democrats and Republicans into the public spotlight.

New Jersey Watchdog’s latest update on Doublegate is online at http://newjersey.watchdog.org/2014/06/02/christie-guadagno-investigation-2/.

NJ WATCHDOG: Last chance for NJ to keep Doublegate secrets

For immediate release:


A judge is giving the state’s Division of Criminal Justice one final chance to argue why an index of records from a hush-hush criminal investigation involving Lt. Gov. Kim Guadagno should not be released to a New Jersey Watchdog reporter.

“I frankly don’t see why it should be kept confidential,” said Judge Mary C. Jacobson during a hearing in Mercer County Superior Court. “It’s highly unusual to keep a Vaughn index confidential.”

The 96-page Vaughn index lists 779 pages of documents gathered by DCJ during a probe requested in May 2011 by the Police and Firemen’s Retirement System board of trustees.

One allegation is 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 facts were first reported by New Jersey Watchdog in October 2010.

Two months ago, the PFRS board learned the investigation was closed. But DCJ has refused to disclose the result of the Doublegate probe or any details.

“What the state overlooks is that the investigation itself is highly suspect,” argued the reporter’s attorney, Donald M. Doherty Jr., in court briefs. “It smacks of a dirty deal and the use of the investigative exemption to avoid exposing a sordid situation.”

Guadagno is a former deputy director of DCJ. Faced with conflict-of-interest concerns, Gov. Chris Christie did not exercise his constitutional power to appoint an independent investigator or prosecutor for a case involving his second-in-command.

Spokespersons for Christie, Guadagno and DCJ have declined comment on the case.

The full story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/04/14/doublegate-secrets-guadagno/.

NJ WATCHDOG: Court orders NJ to reveal pension probe secrets

For Immediate Release:

COURT ORDERS CHRISTIE ADMIN TO REVEAL PENSION PROBE SECRETS

A New Jersey court may force Gov. Chris Christie's administration to reveal information about a hush-hush state pension probe involving Lt. Gov. Kim Guadagno and a quarter-million dollar double-dipping scheme.

Superior Court Judge Mary C. Jacobson ordered the attorney general's Division of Criminal Justice to submit an index of its investigatory records for release to a New Jersey Watchdog reporter.

The stakes are high for Christie, who eyes a 2016 campaign for the presidency, and Guadagno, who could become governor if her boss quits to run for the White House.

Jacobson's decision was a stunning setback for the state, which sought an order entirely dismissing the reporter's public records lawsuit.  The attorney general argued that all of its 770-plus pages of records should be exempt from disclosure.

Instead, the judge will require DCJ to argue its need for secrecy on a document-by-document basis.  Release of the index opens the door for specific arguments on whether 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 a certification filed with the court. 

DCJ began its criminal investigation in May 2011 at the behest of a pension board, according to a certification by a state pension official. Christie, Guadagno and DCJ officials have declined comment. In court papers, the state refused to acknowledge whether the case is open or closed.

The controversy began with an investigative report by New Jersey Watchdog in 2010 detailing how false statements by Guadagno enabled one of her top aides to improperly collect $227,000 in pension checks from the Police and Firemen's Retirement System.

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

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.