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”.

Failure To File NJ ELEC Paper Work Puts Middletown Republican Organization In Financial Jeopardy: Should Tony Perry Resign?

It came to light yesterday that the Middletown Township Republican Executive Committee (Middletown GOP) has failed to file required New Jersey Election Law Enforcement Commission (NJ ELEC) paperwork for the past 16 quarters, going back to October 2016. The last report on file with the NJ ELEC is for the 3rd quarter of 2016. 

This is bad on so many levels and furthers the argument that myself and others have been making over the years, Middletown Republicans are corrupt to the core. Where are they getting their money from? Who are they giving money to? Pay-to-Play comes to mind as well as the wheeling of campaign donations and expenses and potentially money laundering isn't out if the question.

As for the last report on record with NJ ELEC all the way back in 2016, the Middletown Republicans had $39,439.11 on hand after reporting. How much money did they have on hand afterwards to end the year? We don't know because a 4th quarter, year end report was never filed, neither were subsequent reports thereafter for the next 15 quarters leading up to October 2020.

We know the Middletown Republican Executive Committee has been active during this time because expenditures of $19,650 have been reported by outside candidates and committees in their NJ ELEC filings, the most recent being a $650 donation to Sheriff Shaun Golden for his reelection campaign, made in February of 2020.

Maximum fines associated with this non-compliance can be as large as $8,600 per incident. 16 quarters  of failing to file reports with NJ ELEC could cost the local Republicans upwards of $138,000. Interestingly however, the organization is not responsible to pay these fines. As punishment, it's the organizational Treasurer and potentially the Organizational Chairman who are on the hook for payment.

What's so interesting and intriguing about that little fact is that the organizational Treasurer for the last report filed back in October 2016, was the wife of current Middletown Mayor, Tony Perry. Mrs. Perry also happens to be the daughter of former mayor, now LD 13 Assemblyman Gerry Scharfenberger.

There is a major conflict here and it just might behoove  Perry to resign from the mayorship of the Township as well as step down from the Township Committee itself.  Since Scharfenberger appointed his son-in-law to the Township Committee back in 2017 and his daughter failed to file the proper paperwork with NJ ELEC, he has some explaining to do himself .... Stay tuned for further developments. 

 

Another letdown for Citizens United critics? Why the High Court is unlikely to reconsider its landmark decision.

I can across the following article while reading the ELEC-TRONIC Newsletter from the NJ Election Commission. The article appears on line at the Campaigns & Elections website and paints a rather bleak picture for those (myself included) wishing that the U.S. Supreme Court will rethink or overturn it's landmark Citizens United decision.

by Jeff Brindle / May 31 2012

A full court press is on to overturn Citizens United. But opponents of the landmark ruling are likely to be disappointed by the outcome.

Citizens United v. FEC was decided by the U.S. Supreme Court in January, 2010. The controversial decision lifted the ban on independent spending by corporations and unions and found the electioneering communication blackout period to be unconstitutional. However, the Court left in place the ban on direct monetary contributions to candidates and parties and strongly endorsed disclosure.

The attempt to have the Supreme Court reconsider Citizens United stems from a conservative group’s challenge of a Montana law that bans corporate spending in Montana elections.

In American Tradition Partnership, Inc., (ATP) and Western Tradition Partnership, Inc. v. Steve Bullock, Attorney General of Montana, the Petitioners seek to overturn the Montana Corrupt Practices Act, which dates to 1912.

After being clarified by the Legislature in 1979, the law requires that corporations “make campaign contributions and expenditures by accounting for and disclosing them through a separate, segregated fund of voluntarily solicited contributions from shareholders, employees, and members.”

In other words, if corporations want to participate in Montana elections, they have to do so through political action committees that disclose their fundraising activities.

The challenge to the law was first taken up by the Montana District Court which found the law to be unconstitutional. Subsequently, the Montana Supreme Court reversed the District Court’s ruling and upheld the Corrupt Practices Act. American Tradition Partnership, et seq. is now petitioning the U.S. Supreme Court to hear the case on appeal.

Recently, it was announced that the Campaign Legal Center and several other groups, including representatives of 22 states and the District of Columbia, have filed Amici Briefs supporting Montana’s law. The briefs ask the Court to either deny the appeal or reconsider its decision in Citizens United.

Arizona Senator John McCain, a long-time champion of more disclosure by independent campaign committees since one once hurt his presidential primary ambitions, is also filing an Amicus Brief supporting Montana’s law.

While the intent of these groups may well be good, it is doubtful the High Court will take either course of action. If the Court refuses to review the Montana case by denying certiorari, it will be undermining its own precedent in Citizens United and add confusion at a time when campaign finance law already is topsy-turvy. It is even more unlikely that the Court will opt to reconsider and reverse its two-year-old decision in Citizens United.

Attention is being focused on Justice Kennedy as the swing vote. But this may be a fool’s errand. Justice Kennedy has long been a foe of restrictions on campaign spending by corporations, having written the dissent in Austin v. Chamber of Commerce in 1990. That high court ruling refused to let the Michigan Chamber pay for a political ad directly from its corporate treasury and instead required the use of its PAC funds. Kennedy’s early dissent became law when he wrote the majority opinion in Citizens United, which discarded the precedent set in Austin.

In his brief in opposition to the challenge to the Montana statute, Attorney General and candidate for Governor Steve Bullock suggests that the separate, segregated fund—a PAC—is indistinguishable from the corporation. Secondly, he argues that independent spending can corrupt through the influence that money can bring to bear on the outcome of an election.


Read more...... Here