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: Corruption case undermines Christe claims as prosecutor

On the presidential campaign trail, Chris Christie boasts that he was a no-nonsense prosecutor above politics.

“The fact is that this Justice Department under this president has been a political Justice Department,” said Christie during last month’s debate on CNBC. If elected, he promised to nominate “an attorney general who will enforce the law and make justice more than just a word.”

But back in New Jersey, the Christie administration appears to be burying a corruption case involving Lt. Gov. Kim Guadagno, his second-in-command. An alleged $245,000 pension fraud occurred when Guadagno was Monmouth County sheriff in 2008, the year before she first ran for lieutenant governor as Christie’s running mate.

On Thursday, a New Jersey appeals court ruled the state attorney general’s Division of Criminal Justice must release two confidential documents to New Jersey Watchdog. Justices George S. Leone and Carol E. Higbee rejected a lower court’s decision to block release of the records as an “abuse of discretion.”

“We cannot agree that the fact the investigation concerned possible sensitive issues of public corruption weighs against disclosure,” the ruling stated. “In cases involving allegations of public corruption, transparency and the public’s right to know are particularly important.”

Guadagno made false and conflicting statements that enabled her sheriff’s 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.

In 2011, DCJ began an investigation at the request of the Police and Firemen’s Retirement System board of trustees. From the start, the probe was riddled with conflicts of interest.

Guadagno is a former deputy director of DCJ who had supervised or worked with many of its investigators. Yet Christie did not use his authority to appoint a special prosecutor or independent investigator under the State Constitution.

What happened to that investigation is a mystery slowly being revealed through years of public records battles between New Jersey Watchdog and the Christie administration.

The complete story is online at http://watchdog.org/246981/nj-corruption-undermines-christie/.

NJ Watchdog: Appeals court orders release of corruption probe records

A New Jersey appeals court has ruled the state must release two confidential state records from a corruption probe involving Lt. Gov. Kim Guadagno to New Jersey Watchdog.

The opinion released Thursday by the Appellate Division reverses a trial court decision by Superior Court Judge Mary C. Jacobson last year not to release those records from a state Division of Criminal Justice investigation of alleged pension fraud.

In a 14-page opinion, Justices George S. Leone and Carol E. Higbee rejected Jacobson’s reasons for blocking release of the documents to the investigative news site as an “abuse of discretion.”

“We cannot agree that the fact the investigation concerned possible sensitive issues of public corruption weighs against disclosure,” the ruling stated. “In cases involving allegations of public corruption, transparency and the public’s right to know are particularly important.”

As New Jersey’s second-in-command, 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 earlier if Christie steps down before his term expires.

The alleged $245,000 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 smoking-gun documents, including an internal memo initialed by Guadagno.

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

The story is online at http://watchdog.org/246882/nj-corruption-probe-records/.

Letter: FD/EMS Pension Fraud In Middletown & Wall

The expressed opinions or views of this letter does not necessarily represent the opinion of the MiddletownMike blog:




Dear Editor,

The New Jersey Attorney General's office should launch a criminal investigation to the recently released findings by Acting State Comptroller and licensed lawyer, Marc D. Larkins that Monmouth County's Middletown Township and Wall Township Fire and First Aid Squads have been committing fraud to allow members to receive state public pension benefits they did not qualify for.

Middletown Township and Wall Township are both Republican strongholds that are well-known for their nepotism and corruption. Everyone involved should be indicted.



Eric Hafner
Toms River

NJ Watchdog: Christie promises to 'tell it like it is,' but hides truths in NJ

Chris Christie declared his candidacy for president Tuesday, promising America that he would “tell it like it is.” But his track record in New Jersey shows the governor has often gone to great lengths to hide the truth from taxpayers.

“We are going to tell it like it is,” Christie proclaimed in a gymnasium packed with supporters at Livingston High School. “The truth will set us free.”

In contrast, New Jersey Watchdog and other news outlets have gone to court on numerous occasions to try to win release of public records the governor and his administration have refused to disclose.

Judge Mary C. Jacobson is deciding whether to order Christie to turn over nearly $1 million in American Express bills racked up the governor’s state police security team. Christie’s office is arguing that records of those past expenses would reveal secrets that could put the governor at risk in the future.

“I’m not convinced it is essential to the governor’s security to withhold details,” said Jacobson during a hearing last month in Mercer County Superior Court.

Christie is also fighting the judge’s order to turn over a copy of a high-tech media list that his office assembled at taxpayers’ expense. The list is an integral cog in a publicly-funded publicity machine that launched him into the national spotlight and towards a probable run for the White House in 2016.

The Christie’s administration’s biggest secret may be its failure to fully investigate or pursue allegations of a $245,000 pension fraud that implicated Lt. Gov. Kim Guadagno. The controversy 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 allegedly 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.

In May 2011, the attorney general’s Division of Criminal Justice began a criminal investigation at the request of a state pension board. But the probe was riddled by a major conflict of interest. Though Guadagno is a former deputy director of DCJ, 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 and its outcome.

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

The disclosures showed that DCJ only generated six pages of investigative records before closing the case in June 2012. The probe appeared to be virtually non-existent; there were no records of interviews or statements from Guadagno or witnesses.

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.

New Jersey Watchdog appealed Jacobson’s decision to the State Appellate Division. A date for oral arguments has yet to be scheduled.

Other news organizations have had court battles over public records with the Christie administration. At one point last year, Christie’s administration was a defendant in roughly two dozen public records lawsuits in Mercer County Superior Court.

Meanwhile, after announcing his White House run on Tuesday, Christie travelled to New Hampshire for five days of campaign events. His schedule includes a “Telling it Like it Is” town hall meeting.

“I mean what I say and I say what I mean – and that’s what America needs right now,” said Christie.

The story is online at http://watchdog.org/226723/christie-hides-truths/

State Comptroller Names Towns That Enrolled Professionals In PERS

Middletown's on the list. No shock there. The municipal judge, prosecutor, and public defender are all feeding at the trough. - hat tip Linda Baum

From NJFOG:

October 26, 2014 by Tom Wyka

As mentioned in a previous news post, the Office of the State Comptroller revealed in a 2012 report that 332 municipal professionals were enrolled in the state pension system at that time in spite of a 2008 law intended to curb this kind of abuse. The state comptroller will not say who they are but recently released the names of the 228 municipalities that enrolled them. County is generally not listed, so where the report lists a town for which there is another New Jersey town with the same name, it is not always clear which town it is.

The New Jersey Pension Fraud and Abuse Unit is now sending out letters to at least some municipalities requiring them to remove their professionals from the pension rolls. That is welcome news for taxpayers, who have a right to know not only which municipalities have been ignoring the spirit of the law, but which professionals may be improperly receiving benefits.

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/.

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/.

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.

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?

# # #

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

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

For Immediate Release:

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

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

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

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

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

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

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

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

Will Gov. Christie's Fraud Squad Investigate Lt. Gov. Guadagno?

For Immediate Release:


New Jersey Gov. Chris Christie's new pension fraud squad won't need to look far to find their first case.

They could start by examining a $245,000 pension abuse involving Lt. Gov. Kim Guadagno, Christie's running mate and second-in-command. If not, the governor and the unit he created by executive order may be guilty of first-degree hypocrisy.

As Monmouth County sheriff, Guadagno made false statements that enabled her chief aide to collect both a pension and salary, totaling $172,500 a year.

While double-dipping is often legal, this case is different. New Jersey Watchdog found Guadagno lied to help her aide get two checks instead of one.

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."

The full story is now online at http://newjersey.watchdog.org. The direct link to the article is http://newjersey.watchdog.org/2013/08/08/8821/. Please direct media inquires to Mark Lagerkvist at mark@NJwatchdog.org.

NJ WATCHDOG: Guadagno Secrecy Cracks Open

Is Gov. Chris Christie's #2 in Deep Doo-Doo? NJ RECORDS COUNCIL ORDERS

TREASURY TO PRODUCE DOCUMENTS ON LT. GOV. GUADAGNO'S $245K PENSION SCHEME

The wall of secrecy surrounding Lt. Gov. Kim Guadagno and a $245,000 pension scam is starting to crack open.

Acting on a complaint by New Jersey Watchdog, the state Government Records Council ordered the Treasury to turn over 26 documents. Treasury officials gathered the records while reviewing allegations that Monmouth County sheriff's officer Michael Donovan improperly collected nearly $85,000 a year in state retirement pay in addition to his $87,500 annual salary.

After a private, in-camera inspection, GRC will decide whether the documents must be released — and whether state Treasury officials "knowingly and willfully violated" the Open Public Records Act.

GRC approved the order Tuesday by a 4-0 vote. The council also instructed Treasury officials to certify under oath "why disclosure of the responsive records would be inimical to the public interest." The Treasury's Division of Pensions & Benefits will have five business days to comply after it receives the order.

The controversy centers on false statements made by Guadagno when she was Monmouth County sheriff. The scheme was first reported by New Jersey Watchdog in 2010.For the full story, check out http://newjersey.watchdog.org.

Cop's Connection to Christie Compromises Criminal Probe

New Jersey may be investigating him for an alleged $245,000 pension scam, but Monmouth County sheriff's officer Mickey Donovan has a political ace up his sleeve.

Donovan campaigned for Gov. Chris Christie and Lt. Kim Guadagno as Monmouth County chairman of the "Law Enforcement for Christie-Guadagno" team in the 2009 gubernatorial election.  (The story is now online at http://newjersey.watchdog.org/2012/06/07/donovans-ace/)

One year earlier, false statements by Guadagno, as Monmouth sheriff, had enabled Donovan to dodge pension rules — and collect retirement pay in addition to an $87,500 salary as her sheriff's officer chief.

The connection between Donovan and the Christie-Guadagno campaign adds another obstacle to a year-long inquiry by the Attorney General's Division of Criminal Justice. The conflicts of interest include:

·    DCJ is probing allegations that may implicate Guadagno, its former deputy director. She held that post from 1998 to 2001.

·    Nearly two dozen DCJ investigators and supervisors are "double-dippers" who collect state paychecks and pensions under controversial circumstances.

·    Attorney General Jeffrey Chiesa, Christie's former chief counsel, is in charge of the DCJ. Chiesa is 

Guadagno's fellow cabinet member — and a Christie appointee who serves at the governor's pleasure.

Despite the conflicts, Christie has not named a special prosecutor or authorized an independent investigation.

Donovan was one of 24 LECG chairs campaigning for Christie and Guadagno. Half of the LECG team — including a state assemblyman and six county sheriffs — were double-dippers who simultaneously collected governmental salaries and state pension checks.  (New Jersey Watchdog's story on LECG's 12 double-dippers is online at http://newjersey.watchdog.org/2012/06/07/law-enforcement-for-christie-guadagno/)

For full coverage, go to http://newjersey.watchdog.org.

Conflicts Plague Criminal Probe of Lt. Gov. Guadagno & Pension Scam

by Mark Lagerkvist

Tick. Tick. Tick. Tick.

Is it the sound of time passing on a conflicted, year-old criminal investigation of an alleged $245,000 pension fraud involving New Jersey Lt. Gov. Kim Guadagno?

Or is it the countdown to an embarrassing scandal for her boss, Gov. Chris Christie — a rising political star who declared pension reform as his "biggest governmental victory?"

The state's investigation is assigned to the Attorney's General's Division of Criminal Justice, a unit where Guadagno once served as deputy director. Despite the apparent conflict, Christie has not appointed a special prosecutor.

Public pension abuses are so rampant in New Jersey that even the agency investigating Guadagno has its own controversy.  Twenty-three supervisors and investigators with the Attorney General and DCJ are using legal loopholes to draw salaries and pension pay

For the full story, go to www.njwatchdog.org.  For further information, contact Mark Lagerkvist at mark@lagerkvist.net.

Also check out the MSNBC version of the New Jersey Watchdog story, now online at http://openchannel.msnbc.msn.com/_news/2012/05/14/11690662-gov-christies-pension-issue-nj-probe-looks-at-running-mate-double-dipping

NJ TREASURY BOTCHES MONMOUTH PROBE; STATE IGNORES $245K PENSION SCAM IMPLICATING LT. GOV. GUADAGNO

Back on October 19th of last year the website New Jersey Watchdog broke the story about how Lt. Gov. Kim Guadagno, while acting as Monmouh County Sheriff in 2008, allowed and participated in a scheme allowing a high-ranking Monmouth County Sheriff's employee to blatantly violate pension laws giving him a full pension and a full County paycheck at the same time.

Now New Jersey Watchdog is reporting that after an investigation into the allegations, the NJ Treasury botched it's investigation into this troubling story, by ignoring evidence that clearly shows that Michael W. Donovan Jr. was employed as Chief Warrant Officer, which has allowed him to collect $85,000 a year in pension benefits while collecting a county salary of $87,500. To date New Jersey Watchdog says that Donovan owes the County in excess of $245,000 for pension payments that he was not entitled to:

Here is what NJ Watchdog is reporting:

A botched investigation by the New Jersey Treasury is allowing a Monmouth County sheriff's executive – and Lt. Gov. Kim Guadagno, his former boss – to get away with a double-dipping scam that has cheated a state pension fund out of nearly a quarter-million dollars.

Ignoring evidence to the contrary, state officials concluded Michael W. Donovan Jr. was employed as "chief warrant officer," according to a letter from Florence J. Shepherd, acting director of the Treasury's Division of Pension and Benefits.

Records obtained by New Jersey Watchdog clearly show that Donovan was actually the Sheriff's Chief Officer in charge of law enforcement. That evidence includes:

• An Aug. 21, 2008 memo written and initialed by then-Sheriff Guadagno, introducing Donovan as the "new Chief of the Law Enforcement Division."
• Organization charts for the Monmouth County Sheriff's Office, covering the period of Sept. 22, 2008 through Feb. 13, 2011. Each identifies Donovan as the "Chief" in charge of law enforcement.
• A Sheriff's Office web page describing Donovan's duties as "Sheriff's Chief," including the department's day-to-day activities.

While the job titles of sheriff's chief officer and chief warrant officer sound similar, the difference is defined in state statute. Another difference is the money this charade has cost the state pension system, as first exposed by a New Jersey Watchdog investigation in October 2010.

Listed as chief warrant officer in payroll records, Donovan has been able to collect $85,000 a year in benefits as a retired county investigator, plus an $87,500 annual salary for his job with the sheriff.

Chief warrant officer is considered a temporary position exempt from the Police and Firemen's Retirement System (PFRS). In contrast, a sheriff's chief officer is covered by the PFRS. Under state pension rules, Donovan should have been required to re-enroll in the plan, which would have stopped his retirement checks.

To date, Donovan has improperly received $227,000 in pension payments. In addition, he should have paid $18,000 in contributions to the plan since returning to work in 2008.

On behalf of the PFRS, the Treasury could sue to recover $245,000 from Donovan. But first, the agency would have to face facts that implicate Guadagno – and would likely embarrass the Christie Administration.

The Feb. 11 letter from Acting Director Shepherd was sent in response to an inquiry from Anthony Wieners, president of the New Jersey State Policeman's Benevolent Association. Wieners could not be reached for comment.

Three days later, Donovan was given a new job title - plus a raise. As Monmouth County's new undersheriff in charge of law enforcement with essentially the same responsibilites, he now receives a $90,125 annual salary – plus nearly $86,000 a year in state pension checks.

With all that is going on today about how public employees are bankrupting states with their generous health and pension benefits, it's nice to know that Governor Christie can look the other way when it involves one of his own from the Monmouth County "Good ol' Boy" network.

Based on what NJ Watchdog has uncovered, I think it is time for Christie to intervene by firing Michael Donovan as Chief Warrant Officer for Monmouth County and asking his Lt. Governorr for some straight answers before asking for Guadagno's resignation.

PENSION SCANDAL IN THE SHERIFF’S OFFICE: Acting Sheriff Golden Promotes Pension Fraud By Head Of Law Enforcement Division

FOR IMMIDIATE RELEASE
October 24, 2010
Press Contact: Jon Evans (732) 739 8888

Hazlet, NJ – This week, New Jersey Watchdog.org broke news casting another ominous cloud over the Monmouth County Sheriff’s Office. The information, which has been verified, shows that in 2008, the previous Republican Sheriff allowed and participated in a scheme allowing a high-ranking Monmouth County Sheriff’s employee to blatantly violate pension laws giving him a full pension and a full County paycheck at the same time. Despite his knowledge of this fraudulent act, acting-Sheriff Golden continues to employ this person under the same arrangement.

Specifically, Monmouth County acting-Sheriff Shaun Golden has authorized Sheriff’s Chief Mickey Donovan to sidestep pension rules allowing him to collect more than $85,000 a year in retirement pay while at the same time still making an annual County salary of $87,500 for a total in excess of $172,000.00 per year. This “double-dipping” scheme is in violation of the New Jersey Police and Firemen’s Retirement System rules and regulations.

In May 2005, Donovan retired as a detective lieutenant from the Monmouth County Prosecutor’s Office and began collecting his annual $85,000 pension. In an August 21, 2008, memo it was announced, by then-Sheriff Kim Guadagno, that Donovan would be hired as the “new Chief of the Law Enforcement Division”. However, in order to avoid having to give back a pension, his title was changed and Donovan was hired and sworn in as “Chief Warrant Officer” on September 22, 2008. Although Donovan was hired as “Chief Warrant Officer,” permitting circumvention of the pension rules, in actuality, the position of “Chief Warrant Officer” was eliminated on September 16, 2008- a week before Donovan was hired to the fictitious position- under Sheriff’s General Order 98-20 setting forth the organizational structure of the Sheriff’s Office. As a result, Donovan was hired and continues to occupy a position that does not exist in the Monmouth County Sheriff’s Office. Clearly, this scheme was concocted so that Donovan could continue to double dip at taxpayers’ expense. Donovan continues to be listed on the County’s web page as “Monmouth County Sheriff’s Chief” and is described as “the Chief of the Law Enforcement Division of the Monmouth County Sheriff’s Office” and not as “Chief Warrants Officer.” On July 6, 2010, acting-Sheriff Golden signed an amendment to the organizational structure of the Law Enforcement Division, yet did not include the position of “Chief Warrant Officer” and there is currently no such position within the organizational structure of the Sheriff’s Office.

Democratic Sheriff Candidate Eric Brophy responded to the ongoing situation, “This continuing fraud cast upon the taxpayers of Monmouth County by sworn officers of the law is the most egregious example yet of Golden’s complete and utter mismanagement of the Monmouth County Sheriff’s Office. His complete disregard for the taxpayers of Monmouth County or for the laws and rules of this State is appalling. Someone who is charged as the Chief Executive Officer of a 600 person police agency must know the status and job titles of his division heads. If he doesn’t, then he has no business running such an operation. If he does know but disregards these acts, he is complicit in perpetuating this fraud and can no longer be trusted to hold the position. Monmouth County needs a Sheriff who will be responsible with taxpayer dollars and who not only talks about pension reform, but who actually ends abuses of the system. ”

For more details as well as evidence of all facts cited herein, visit New Jersey Watchdog Online at http://newjersey.watchdog.org/2010/10/19/1286/