All Red Bank Democratic Government No More

Cindy Burnham was the top vote winner in this years 2-seat council race. She will replace Sharon Lee on council. It seems the voters are now seeing the problems you face when a town is run like a monopoly for many years. Click Here to see the video of Ed McKenna and Sharon Lee at their 1/2 victory celebration. Sharon Lee speaks of dirty politics, this after press releases were sent to all of the major NJ newspapers about Sean Di Somma’s out of state traffic ticket to question is character.

c3 Holdings website provider to Red Bank part of Investigation

The 2 election issues are that Ms. Lee is the chairperson for the Red Bank Borough Council related to affordable Housing. Ms. Horgan is the chairperson for the Red Bank Borough Council related to selecting website providers for the borough. Both are currently seeking re-election. The Borough of Red Bank according to Ms. Horgan is paying $2k per month for the C3 website. Here is a link that shows Old Tappan could have the same service for $1500 per month and they felt that was too much. Why is there a $500 monthly difference for the same product? Here is an article related to the C3 Holdings investigation related to the Joseph Ferriero September 2013 75 page indictment. It was originally published by The Record in Bergen County.

Any name seem familiar to readers? Hint: towards the end of the article…

Feds probe web firm’s dealings with Ferriero
Wednesday, October 15, 2008
Last updated: Wednesday October 15, 2008, EDT 10:04 PM
BY SERDAR TUMGOREN
STAFF WRITER
The Record

Federal officials have subpoenaed at least six North Jersey towns seeking records related to a Web developer with ties to indicted Bergen County Democratic leader Joseph Ferriero, according to documents and local officials.

The U.S. Attorney’s office also sent a subpoena to the Bergen County Improvement Authority, in addition to Clifton, Demarest, Dumont, Nutley, Saddle Brook and Teaneck.

Local officials said contracts, correspondence, and other records were requested for:

• Web and emergency notification services provided by John Carrino and his Nutley firms – C3/Citizen Communications and Xquizit Technologies.

• Carrino’s firm Braveside Capital LLC.

• Ferriero and S.J.C. Consulting LLC. The firm is registered in Ferriero’s name in Las Vegas, according to the Nevada Secretary of State office.

The county Democratic chairman was indicted last month on eight felony counts for his alleged involvement in a grants consulting scheme that authorities say defrauded Bergenfield taxpayers.

Ferriero, who has taken a leave of absence from his leadership role, was indicted with former Democratic Party counsel Dennis Oury. Both pleaded not guilty to the charges in September.

Calls to Ferriero’s attorney Joseph Hayden weren’t returned Wednesday.

Carrino, who denied having any financial relationship with Ferriero, said he also received a subpoena.

“We’re working with the U.S. Attorney’s office and cooperating fully,” Carrino said Wednesday.

The Ferriero-Carrino relationship dates back to at least 2007, when public records show that Carrino began developing websites for county Democrats.

Carrino’s firm, which set up the county Democratic Web site (votebergen.com), received $15,500 in December from Ferriero for County Chairman – the third biggest payout since 2004 from Ferriero’s leadership fund-raising committee, according to IRS records.

Carrino and his firms have secured $400,000 in government contracts since 2007, including a $150,000 deal to provide county emergency notification services.

Carrino’s ties to Ferriero and county Democrats is the focus of a bitter partisan fight in Dumont.

Republican council candidates have focused their attacks on Xquizit. The firm contributed $5,000 worth of in-kind Web services — listed as a loan on campaign finance reports — to the failed 2007 state Assembly bid of Democratic Councilman Carl Manna.

The councilman voted in January to award C3 a no-bid contract in Dumont worth $36,000. State officials said Manna and C3 did not violate state pay-to-play laws because the contribution went to a state-level committee, whereas the contract was awarded at the local level.

“I knew that they had done work for us,” said Manna, referring to his assembly campaign. “However, I didn’t see it as any kind of violation of laws. If I had seen it as such, I would have recused myself.”

In subsequent interviews, Carrino and Manna said the Web developer never did the work on the state Assembly Web site. Instead, the job was referred to an associate Angela Hayford, of Cornerstone Strategies LLC, in Bloomfield, Carrino said.

Hayford declined to comment, but is listed on state records as contributing $2,500 worth of unspecified in-kind services to Manna’s Assembly campaign. An invoice provided by Manna campaign treasurer Matthew McCarter, describes Hayford’s contribution as an “online website campaign for District 39.”

Manna blamed the controversy on a bookkeeping error.

Republican council candidate Matthew H. Kruger said Manna’s vote creates a “horrible perception.”

“It’s just another example of the culture of fast-and-loose, pay-to play politics that’s gone on in Bergen County under the direction of Joseph Ferriero,” Kruger said.

Other than the $5,000 for Manna’s state assembly race, a review of campaign finance records found no contributions by Carrino or his companies.

Carrino did not list the $5,000 on a state-required form that must be submitted to the municipality before the contract is awarded. The form is used for all no-bid contracts in excess of $17,500. Dumont officials did not obtain the document until Sept. 25, something Borough Attorney Gregg Paster labeled as an “oversight.”

In Teaneck, where Carrino received a $100,000 contract last December, he filed the form 10 days before receiving his deal.

“It all seems very cloak and dagger, but it’s really much ado about nothing,” Paster said.

Dumont Democrats accuse Republicans of a smear campaign sparked by a disgruntled contractor. The town’s former Web developer, Carmine DeMarco and his firm, VirtualTownPages.com, was fired in January with nearly a year remaining on its $399 per month contract.

DeMarco is now providing paid Web hosting services to Republican challengers. He claims that the town ignored his request to submit a counter-bid against C3. DeMarco is the brother of Jerry DeMarco, digital news editor at North Jersey Media Group, which publishes The Record.

In May, Carrino filed a police report in Nutley claiming that DeMarco threatened to kill him during a heated phone conversation about a “shared business interest.” The report asks for police not to take action and states that Carrino’s intent is to “get the incident on record.”

DeMarco called the report “a bunch of lies” and said that employees who overheard the conversation could refute the allegations. “I’m disgusted that they would stoop so low as to pull this kind of garbage,” DeMarco said.

Find this article at:
http://www.northjersey.com/news/EXCL…_Ferriero.html
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#2 Old 10-16-2008, 10:36 AM
kate’s Avatar kate kate is offline
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Re: Ferriero’s “web”…

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Hmmm. DeMarco, that sounds familiar…
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#3 Old 10-16-2008, 11:04 AM
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Re: Ferriero’s “web”…

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Bergen County residents need to rid themselves of the pervasive corruption that has permeated every town. In November I will be rejecting every candidate the Bergen County machine has bolstered into candidacy. Instead I will be writing in my choice of people who are honest and care more about residents than their own personal agenda.
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#4 Old 10-17-2008, 05:37 AM
AdirondackChair’s Avatar AdirondackChair AdirondackChair is offline
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Re: Ferriero’s “web”…

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For the record, John Carrino is no relation to my son or his father that we know of.
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#5 Old 10-17-2008, 02:15 PM
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Re: Ferriero’s “web”…

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Old Tappan next to receive subpoena in Ferriero case
Thursday, October 16, 2008
Last updated: Thursday October 16, 2008, EDT 6:50 PM
BY SERDAR TUMGOREN
STAFF WRITER
The Record

OLD TAPPAN – Federal authorities have subpoenaed Old Tappan for records related to a Nutley Web developer and indicted Bergen County Democratic Party leader Joseph Ferriero.

Old Tappan is the seventh municipality to receive a subpoena in the last week related to web developer John Carrino and three of his firms. The subpoenas have also requested information on Ferriero and a business entity registered under his name in Nevada. An eighth subpoena was sent to the Bergen County Improvement Authority.

Ferriero’s attorney Joseph Hayden has not returned calls for comment since Wednesday.

Carrino has denied having any financial relationship with Ferriero, and has said that he is “cooperating fully” with the U.S. Attorney’s Office.

The county Democratic chairman was indicted last month on eight felony counts for his alleged involvement in a grants consulting scheme that authorities say defrauded Bergenfield taxpayers. Ferriero, who has taken a leave of absence from his leadership role, was indicted with former Democratic Party counsel Dennis Oury. Both pleaded not guilty to the charges in September.

The Ferriero-Carrino relationship dates back to at least 2007, when public records show that Carrino began developing websites for county Democrats. Carrino’s firm, which set up the county Democratic Web site (votebergen.com), received $15,500 in December from Ferriero for County Chairman – the third biggest payout since 2004 from Ferriero’s leadership fund-raising committee, according to IRS records.

Carrino and his firms have secured $400,000 in government contracts since 2007, including a $150,000 deal to provide county emergency notification services. That figure also includes roughly $100,000 in potential earnings in Teaneck, where the town’s web site is financed on a yearly basis by a grant from Holy Name Hospital.

Staff Writer Michael Gartland contributed reporting to this story.

E-mail: tumgoren@northjersey.com

Find this article at:
http://www.northjersey.com/news/Old_…ceive_subpoena

As the article states c3 holdings is owned by John Carrino an attorney from Nutley NJ. Here is part of their website promoting commissions paid for those that can get their website accepted by a government entity.
Partners

Gov.I’s strategic partners are resellers with established relationships with various levels of government entities. Resellers help governments take advantage of the cost-saving, relationship-building features of Gov.I by facilitating introductions between our team and key government decision makers.

Governments gain the benefits of Gov.I’s technology. Communities reap the rewards of improved government services. And resellers receive a percentage of the final sales agreement.

To learn more about becoming a Gov.I partner, please contact us at ceo@govi.com.

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Here is an article related to the Ferriero indictment and the Red Bank website provider

Ferriero’s racketeering case has Nutley tie

Thursday, September 19, 2013

BY HASIME KUKAJ

STAFF WRITER

Nutley Sun

Pages: 1 2 > display on one page | Print | E-mail

The indictment against former Bergen County Democratic leader Joseph A. Ferriero includes his dealings with web development firm Xquizit Technologies and C3 Holdings LLC, a business that provided citizen notification services to municipalities, each owned and operated by a Nutley attorney.

Nutley attorney John Carrino owns Xquizit Technologies and C3 Holdings LLC, according to state records.
FILE PHOTO

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Nutley attorney John Carrino owns Xquizit Technologies and C3 Holdings LLC, according to state records.

The indictment does not name the attorney/software developer. However, a March 21, 2009, article in The Record and state business registration records name John Carrino as the owner of both companies, and the Xquizit Technologies’ website identifies Carrino as its president.

Carrino could not be reached for comment. According to the aforementioned news article, he had denied any improper relationship with Ferriero and had said he was cooperating fully with authorities. The indictment gives no indication that John Carrino or anyone affiliated with his companies has been charged with any wrongdoing.

“The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts,” according to a press release from Attorney General Paul J. Fishman’s office. The indictment describes those efforts as Ferriero providing favorable opinion of, and recommending, the software developer, Xquizit and C3, and the products and services provided by Xquizit and C3 to local government officials, without Ferriero disclosing that he would profit financially if the companies were retained.

Beginning about August 2007, Ferriero recommended C3 and Xquizit to several officials in Bergen County municipalities without disclosing his financial interest, according to the indictment. Dumont, Teaneck, Saddle Brook and Cliffside Park retained C3.

Ferriero’s financial interest in the public contracts was “hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer,” according to the attorney general’s press release.

The indictment states that the software developer used a third company which he owned, Braveside Capital LLC, to “secretly pay concealed bribes and kickbacks” to Ferriero in connection with contracts between C3 and various Bergen County municipalities. The indictment does not charge Braveside Capital LLC with any wrongdoing.

Meanwhile, Ferriero created SJC Consulting LLC to “secretly receive concealed bribes and kickbacks” from the software developer in connection to contracts between C3 and various Bergen County municipalities, the indictment states.

‘Personal gain’

On Sept. 11, a federal grand jury indicted Ferriero, the former chairman of the Bergen County Democratic Organization, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, Fishman announced.
– See more at: http://www.northjersey.com/news/224351181_Ferriero_s_racketeering_case_has_Nutley_tie.html#sthash.BAFDr9oN.dpuf

c3 holdings was chosen behind closed doors and did not include a Republican councilperson on the committee
CANGEMI BLASTS CLOSED-DOOR DECISIONS

CangemiGrace Cangemi at her final appearance as a council member last night.

Republican Grace Cangemi closed out her 21-month tenure on the Red Bank Council last night with pointed attacks on Democratics for “behind the curtain” decision-making.

In her final appearance before the council goes all-Democrat on January 1, Cangemi criticized the majority for pulling from the December 8 agenda an ordinance she wanted to introduce. The measure — which she did not describe in detail but said might have saved the town $36,000 — was yanked, she says she was told, because it had not been discussed in the “workshop” portion of any prior meeting.

The requirement that a bill be workshopped, or discussed informally, “apparently was not the case when our water rates were raised 10 percent” last March, she said. She added that an ordinance to increase the number of taxi licenses in the borough was also introduced without a word of mention in any workshop sessions.

In fact, no member of the governing body has publicly taken responsibility for sponsoring the taxi bill, which was withdrawn after an outcry by taxi owners. Officials claimed the bill had been drafted by borough Attorney Tom Hall at the request of borough Clerk Carol Vivona.

“I am greatly disturbed when an elected council person” can’t get a bill posted for vote “because they’re in the wrong party,” yet an unelected official can, Cangemi said.

“I’m sorry — it’s my last meeting — that I have anything negative to say here,” she said.

But her wrath was redoubled a short while later when Councilwoman Kathleen Horgan reported that the council’s education and technology committee was recommending a vendor to build the borough’s new website. Cangemi, a member of the committee, said she had neither been consulted about the choice nor told the of any committee meetings on the topic for the past year.

HorganCouncilwoman Kathleen Horgan.

“The tech side of the committee is thrilled to report we will have a new website beginning in January,” Horgan said. With a system that enables users to sign up for email and text alerts for everything from emergencies to community events, “this will encompass what we really need for Red Bank.”

She said the committee was recommending the council hire C3 Citizen Communication Center of Nutley to build the system and maintain it for $2,000 per month. The company also built the Fair Haven and Middletown websites.

Cangemi, though, appeared surprised by the announcement, and said she had not not been been included in any discussions leading up to it.

“I’m a member of this committee,” which also included Democrat Mike DuPont, she said. “I don’t know how it happened, where it happened. I can’t stand behind this because I don’t know a damn thing about it.”

“Well, Grace, i did tell you we were working on it,” Horgan replied, before apologizing for not bringing Cangemi into the process.

Cangemi, though, was not appeased. “Let the minutes reflect that it’s not a committee recommendation. It’s a recommendation of Councilwoman Horgan, whose opinion I greatly respect,” she said.

In response to inquiries about whether the choice should be put up for bid, Horgan and borough Administrator Stanley Sickels said that the state Division of Local Government Services deems website design as exempt from bidding requirements. Sickels noted also that C3 principal John Carrino has a patent on the system.

“The proprietary nature of this is something you can’t compare” for bidding purposes, said Mayor Pasquale Menna.

“It may be a patent, but there may be other ones out there, and we never had that discussion,” Cangemi said. “It’s a little behind-the-curtain. It just doesn’t smack of being open enough.”

The council’s other Republican, Jim Giannell, said he, too, would have preferred to know what competing technology exists and how it compares to C3′s.

“Although the methodology may have been flawed, we started this one-and-a-half to two years ago,” said DuPont. “The borough residents deserve a website.”

“It’s a little bit bigger than a flawed methodolgy,” Cangemi replied. “It was a year without a meeting. I was duly appointed by this mayor to serve on this committee. We deserve an open process, and this is not an open process.”

Cangemi lost her bid for re-election in November; Giannell was appointed in August to complete the term of John Curley, who moved out of town. They’ll be replaced next month by Democrats Juanita Lewis and Ed Zipprich.

Here’s the website resolution: Download 08-265.pdf

Ms. Lee is the chairperson for affordable housing of which I have written many articles about so feel free to review those. It seems that the New Directions through Responsible Leadership PAC which was co-run between Alfred DeCotiis and John Lynch are the keys to what transpired and why out of the area people are involved in Red Bank Affordable Housing Corp. Joseph Ferriero was the Chairman of the Bergen County Democratic Organization which has received 10’s of thousands of dollars from New Directions through Responsible Leadership. Here is a list of all who have received money from this PAC including Red Bank Democrats. new directions list of funds paid
Here is an article from the Hudson Reporter stating that John Lynch was working with Joseph Ferriero and George Norcross on decisions related to the NJ Government controlled by the State’s Democratic Party.
Lynch, a power broker from Middlesex, rose to the height of power in 2001 after he allied himself with South Jersey’s Norcross and Bergen County Democratic Chairman Joe Ferriero. While Norcross rallied his troops to support Lynch’s attempt to remove McGreevey last week, he apparently called back his attack when he saw the stiff resistance put up by the McGreevey camp.

Read more: Hudson Reporter – News, Events, Classifieds, and Businesses in Hudson County, New Jersey
http://bayonnecommunitynews.com/view/full_story/2400183/matchbin

Connecting the dots at Cedar Crossing Red Bank NJ

I never could quite understand all of the outside connections to the Cedar Crossing property nor the timing of it. It all began in 2006 when a group of investors were trying to get approvals on a former contaminated industrial site on the Westside of Red Bank. I had traced some of the investors to North Jersey and Woodbridge NJ even though they had been referred to as people from Shrewsbury. Some of the people had offices in Shrewsbury as did John Lynch at the time. This site is also located about a block away from another affordable housing site which was involved in the John Lynch investigation related to Pennrose which owns and developed the former River Street School property. While this investment group was in the process of obtaining approvals for 36 units, that even T and M Associates the borough engineer, felt was too intense for the site, Mayor McKenna began to say this was a great opportunity for the town to provide affordable housing. In August of 2006, Mayor Ed McKenna started to push for the town to purchase the property at above appraised value and without the final approvals using free state grant money. John Curley who is currently a Monmouth County Freeholder, was at the time a council person who opposed the purchase and even made statements that the FBI should investigate the situation. In 2007 the property was acquired by the town using the state grant money and around the same time a corporation known as Red Bank Affordable Housing Corporation was created. Again it was a strange mix of people. You had the Reverend of the Pilgrim Baptist Church in Red Bank, Ed McKenna former mayor of Red Bank, another Red Bank Attorney that had provided the Monmouth County Bar Association with a racist skit (when that was revealed he seemed to no longer be involved with the project), William Katchen from Bergen County, and Frank Borin from the DeCotiis Law Firm in Bergen County. For details and links related to the Cedar Crossings development you can read my other posts. This is basically a summary that has taken me several years to put together. I only recently discovered that the Lynch PAC New Directions for Responsible Leadership was co-run by Alfred DeCotiis of the the DeCotiis Law Firm. Now the Bergen County and Middlesex County connections to a small piece of land in Red Bank NJ all makes sense. It seems to have been orchestrated from the very beginning using more or less no-name people from out of the area to present the subdivision, have the mayor of the town push for the town to overpay for the land using free money and have several connected Democratic Party members profit by overseeing the construction and sale of the units. William Katchen, the CPA for Red Bank Affordable Housing Corporation has crossed paths with Joseph Ferriero and Dennis Oury who owned Government Grants Consulting and may very well have assisted in obtaining the NJ grants for this project because the DeCotiis Firm acknowledges that they worked with consultants to obtain the approvals and funding for this project. William Katchen along with Dennis Oury were involved in an investigation related to missing affordable housing funds in Paramus NJ. Again the timing also calls into question about what transpired. John Lynch pled guilty to various charges in September 2006 and would not have been able to have worked on this project. This was just one month after Mayor McKenna pushed for the town to acquire the property. John Lynch was also known to be friends with Ed McKenna and his PAC provided funds to the Red Bank Democratic Party and Ed McKenna’s Law Firm donated to Lynch’s PAC New Directions for Responsible Leadership. So if I were to connect the dots it would be Lynch to no-name developers to McKenna/Red Bank Borough to Baptist Church/Katchen/DeCotiis/McKenna with most likely consultants like Oury/Ferriero/Spatz helping to obtain 100% financing for the project that should yield several hundred thousand dollars in profit if and when they ever sell the remaining 14 units of the 36 unit development.
North South Brunswick Sentinel
October 5, 2006 Edition
GOP: Lynch funds should be returned
Corruption charges against ex-senator become campaign issue in N.B.
BY JENNIFER AMATO Staff Writer
BY JENNIFER AMATO
Staff Writer
The North Brunswick Republican Organization is calling on the Democratic Township Council candidates to return any contributions they received from former state Senate President John Lynch and a political action committee he founded.
Lynch pleaded guilty Sept. 15 to federal charges of tax evasion and mail fraud after investigators determined he accepted bribes to lobby for the approval of projects proposed by a South Brunswick sand mining company. Through Lynch’s political action committee New Directions for Responsible Leadership, over $20,000 has been given to the Democratic political and social organizations since 2002, with direct assistance given to the previous campaigns of Mayor Francis “Mac” Womack, Carlo Socio and Rhonda Lyles, according to state election records.
Although Womack does not deny that the money was received, he said, “Certainly at the time, John was neither under indictment or pled guilty to anything, and those contributions never came with any strings attached in any way.”
Socio, who is running for re-election in November, said that to the best of his knowledge, no money has been received from Lynch or his PAC for this year’s campaign.
“I wish I could say that I was surprised by [Republican Chairman] Pete Maimone once again attempting to turn the voters’ attention away from the issues which really matter, the residents’ quality of life in our township,” he said.

“Just look at the accomplishments, which we have instituted since taking office, like pursuing and winning $6.7 million in business tax appeals, conducting a complete reconstruction of our pocket parks, banning trucks on Adams Lane, fighting to open government by televising planning and zoning meetings, securing over $1 million in new grant money, and topping all of that passing a pay-to-play ordinance and the first limits ever on campaign contributions in North Brunswick,” Socio said.

The Democrats countered by citing the receipt of funds by the Republican Organization from various developers, specifically Halpern, the largest developer in the township, which completed the Renaissance development on Route 130.

“It is an important point in my mind, simply, that we were reformers in North Brunswick and we worked hard to make that change, and we do not take any money from developers, which is a sharp contrast to the Republicans,” Womack said.

Yet Maimone said that the difference in their receipt of $8,000 in contributions is that “developers received no benefits and received no promises of return.”

In addition, the Republicans claim that over $35,000 came from Lynch’s partner in founding New Directions, Alfred DeCotiis, a chief counsel to former Gov. James McGreevey, and that his law firm of DeCotiis, Fitzpatrick, Cole and Wisler was subsequently hired to handle all North Brunswick Township legal business. Also, CME Engineering, another longtime Lynch ally, serves as the primary engineer within the township.

Although 2006 Republican candidates Tom O’Neill and Matthew “Skip” House acknowledge that award of no-bid professional service contracts is legal, they question whether the contributions are “dirty money.”

“As an organization, the NBRO looks forward to returning integrity, honesty, and balance to our local government,” Maimone said.

However, Socio said that DeCotiis was hired after a member of the council used the firm for a personal issue and respected their work, and that CME was in place before the 2003 election.

The Republicans are suggesting that any contributions received should be returned either as contributions to charities or to nonpartisan government watchdog groups. The Republicans say that if the Democrats are serious about “doing the right thing,” they “wouldn’t think twice about acting on this call.”

Womack said that because Lynch is now considered a guilty party, he would reconsider accepting any funds from the PAC next year.

“I would have to look into it,” he said.
This is from the Hudson Reporter showing that John Lynch and Joseph Ferriero were friendly and working together as Democratic Party Power Brokers.
Lynch, a power broker from Middlesex, rose to the height of power in 2001 after he allied himself with South Jersey’s Norcross and Bergen County Democratic Chairman Joe Ferriero.
http://bayonnecommunitynews.com/view/full_story/2400183/matchbin
Don’t discount the golf connection to the original investors. Here is an article related to John Lynch golfing with a Bergen County Political person named Alan Marcus. Golf has always been know for connecting people and business.
Republican lobbyist Alan Marcus recalled the day in 2000 when he played golf with Lynch and Lynch told him he would not run for re-election, at the same time McGreevey appeared on the verge of being elected governor.

“He said it was time to go. He wanted to spend more time with Matthew. I told him, “You will rue the day and so will McGreevey.’ The minute you’re out, you’re out,” Marcus said. Click Here for the full article from the Asbury Park Press.

For one thing, Marcus said, it removed Lynch’s label. Rather than call him senator, the handy way to describe him became “boss.”
Kathleen Anderson and her husband donated to Rider University’s golf program. Kathleen Anderson also originally had her company in Woodbridge a strong hold for Lynch in Middlesex County.
Click Here for an article from Rider about their donation to the golf center.
Anderson, who has been elected to join the Rider Board of Trustees beginning on July 1, has proven to be a passionate member of the University family. He and his wife, Kathy, donated the lead gift for the golf facility in the Maurer Center, and together, are the lead donor for the Athletics Strength and Conditioning Center. The Andersons have also opened their home in Florida to Rider’s golf team during its spring break trips and served as host for an Athletics Campaign Preview event at the Rainbow Room in New York.
Click Here for the full interview of Ed McKenna speaking about his 5 golf club memberships
I hear you’re a golfer.
Oh, yeah. Big. It’s my passion. I started when I was 36, I think. I actually belong to five golf clubs, three in Ireland. I go to Ireland three times a year to play golf. Click Here to see Ed McKenna donating a round of Golf at Due Process Golf Course in Colts Neck NJ>

And Finally to bring this full circle. We have Ed McKenna who was friends with John Lynch. John Lynch was friends with Joseph Ferriero which now explains the Middlesex County and Bergen County connection to a small development of affordable housing in Red Bank as well as possibly the use of C3 holdings the Borough of Red Bank’s website provider and accused of paying kickback’s to Joseph Ferriero as per the Federal Indictment filed against Ferriero in September 2013.

Station Place Development formerly known as the Courtyards

The Station Place Development formerly known as the Courtyards@Monmouth Project was sold to Brenda McIntyre of Station Place LLC. The property was sold for 4 Million according to tax records and they received 9.6 million in loans from the seller, Amboy Bank. for the 45 market units. The building according to the application is 60,556 sq ft. Roger Mumford went before the Red Bank Zoning Board at a special meeting on December 13, 2012 to revise previously agreed to plans. He received those approvals at this meeting and then Brenda McIntyre signed the deeds on December 19, 2012.
From the Borough of Red Bank Agenda list for a Special Zoning Board Hearing held on Dec 13, 2012.

Station Place @Red Bank, LLC, Monmouth and West Streets, Block 42, Lots
1,2,2.01,3,4,19,20,21 Z 10411
Seeking relief from conditions of a prior Zoning Board approval and amendment to the
application including revised elevations, elimination of solar canopies and roof –top
easement, elimination of on-site car share use, and changes to the parking and grading
plans to permit the construction of a 60,556 square foot multi –family building consisting
of 45 units and a 12,822 square foot building consisting of 12 units. BR-1 Zone and BR-2
Zone.From the Asbury Park Press dated 12/28/12
What had been hailed as a forward thinking condominium project, with solar panels, car-share parking and a rain garden has given way to economic reality.
Revised plans for the former Courtyards at Monmouth project, now dubbed Station Place, were approved by Red Bank’s Zoning Board of Adjustment on Dec. 13, by a 7-0 vote.
The site has seen several previous plans, none of which ever were constructed.
Developer Roger Mumford said the changes were necessary so Station Place will not just be a pipe dream on paper.
The design calls for building a 45-unit, four-story upscale rental building on Monmouth and West streets and a smaller building of 12 affordable units at West and Oakland streets.
The original development proposed by GS Realty Corp., which is part of Amboy Bank, proposed a car canopy over the 67 spaces in a parking lot, to be covered with solar panels, a rain garden to filter rain water and proposals to include parking for car-sharing companies, such as Zipcar, which could eliminate the need some residents have for a first or second car.
The revisions scuttled some of those features, which some said gave the project a visionary aspect. Even the buildings’ appearance with faux brownstone individual entrances and stairs, has given way to a traditional single entrance and lobby.
“I didn’t think they were very appealing. The spirit of the (new) building (facade) is captured from the Count Basie theater,” Mumford said during a hearing on the application. “I wanted more classic architecture that would look great 20 years from now.”
The overall size of the buildings are the same with aesthetic changes and reconfiguring the internal lay-outs.
While he proposed to eliminate the solar, Mumford cited his environmental credibility for building other energy efficient developments, including a group of new homes at Bridge Avenue and Bergen Place.
“Our environmental policy recognizes energy efficiency, conserves natural resources and indoor air quality,” Mumford said. “It may not be technically LEED (Leadership in Energy and Environmental Design) certified, but it will be one of the greenest buildings in Red Bank.”
The solar aspect of the original plans would only provide 10 to 15 percent of the buildings’ electricity, Mumford said.
Gary Weisman, president of the New Jersey Solar Coalition, said the market has dropped out of the solar energy market, since the original approval. He said the solar component of the project was “made for a project, that if your look at it on an economic basis, is no longer viable,” considering the current health of the solar energy market.
“There is no way I could find an investor for the solar component of this project,” Weisman said, adding it would take at least 15 years under the current economic climate to recoup that investment.
Mumford called solar “one spoke on the environmental wheel” and ticked off a list of environmentally friendly features such as cabinetry certified not to contain formaldehyde, “engineered” lumber made of recycled wood chips, recycled concrete chips in the parking lot, a white plastic “cool” roof covering to reflect energy and energy efficient insulation.
The “L” shaped corner property has a tortured history of proposals, which never saw reality.
Prior to interest by Amboy Bank and its real estate arm, G.S. Realty, the last development approved on that site in May 2008 was never built, and borough officials said the bank took possession of the property.
Those plans, proposed by RB Monmouth LLC, would have built three, four-story buildings with stores on the first floor and apartments on the upper floors for a total of 20 units.
RB Monmouth bought the property and different plans from Building Land Technology, which filed an application in 2003 and got approval to build a total of 35 condo and townhouse units in three buildings on the site.
That approval was challenged in 2004, by seven borough residents who sued, contending there was a conflict of interest between a board member and a law firm, which previously represented the land owner.
In 2006, three state Appellate Division judges ruled that board member shouldn’t have heard the BLT application and reversed the approval.

From a letter to the editor on the Hub Newspaper dated 9/28/06
Pay-to-play changing landscape
Now that former state Sen. John Lynch and his business partner John Westlake have pleaded guilty to corruption charges and tax evasion, it is important for my fellow residents of the Jersey Shore to understand the nexus between John Lynch and our local politicians, developers and their professionals. Just as importantly, we need to understand the impact of these relationships and how it has affected the quality of life in our shore communities.
In the movie, “All the President’s Men,” actor Hal Holbrook portrays the Washington insider Deep Throat who continually states “follow the money.” If we follow that lead, it takes us to two political action committees which have had a tremendous influence over our politicians, some who are already guilty of corruption. “New Directions Through Responsible Leadership,” a Lynch PAC – co-chaired by Westlake and John Hoffman of the Wilentz, Goldman, and Spitzer law firm – has raised millions of dollars since 2000. The bulk of those dollars have come from people or companies doing redevelopment projects throughout the state and in our hometowns.
Developers like K Hovnanian, the Gale Co., Mack-Cali, PRC, Jack Morris, Applied Development, Matzel and Mumford, and others have contributed significantly to this PAC, and it is no coincidence they are all doing major development projects in towns like Long Branch, Matawan, Asbury Park, Keyport, West Long Branch, Belmar and my hometown of Red Bank.
In addition, engineering firms such as Maser Consulting, Birdsall Engineering, Schoor DePalma, T&M Associates, and Najarian Associates are among the local firms who have been major contributors for years. Again, it is of no surprise these firms are either employed by our towns or are working on behalf of the developers.
The other PAC called the Monmouth County Council of Democratic Leaders – formed in 1999 and co-chaired by the respective law partners of Mayor Ed McKenna of Red Bank and Mayor Ken Pringle of Belmar – has been in sync with the Lynch PAC for many years. Not only has this PAC received contributions from the same developers and professionals, but it has also received direct monies from New Directions by way of “wheeling.” Also, the McKenna/Pringle PAC has wheeled money upwards to the Lynch PAC for many years.
Where has the money flowed to? In Monmouth County, the biggest recipient of campaign contributions from New Directions has been the Red Bank Democrats and their campaign accounts, each year chaired by Mayor McKenna. In fact, Mayor McKenna received $5,000 in 2000 in his unsuccessful bid for the Democratic county chairmanship. Again, it is of no coincidence that currently there are 19 development projects proposed or under construction in Red Bank.
Another major recipient of campaign monies was Mayor Adam Schneider in Long Branch, who in addition received campaign staff help from John Lynch in his re-election campaign this past May. These staffers were formerly on the payroll of Lynch’s New Directions.
Mayor Schneider and his use of eminent domain on good citizens has been fueled by these developers and professionals. Is it again a coincidence Joseph Barry of Applied Development, Charles Kushner of Westminster Properties, and Phil Konvitz – all guilty of corruption – were doing waterfront development? Mayor Schneider also represented developer Jack Morris in the Walgreens project in West Long Branch, where a bribe was passed to a Democratic councilman.
I could certainly continue to write about how far and how deep this goes, but then it would become a book. I only wish to inspire those of you out there who are not happy with the overdevelopment of your hometowns. There is a direct link as to why it is happening, and it’s not called smart growth. It is pay-to-play and corruption, and it has changed the Jersey Shore landscape.
For those facing eminent domain this holiday season, my heart goes out to all of you, for it truly is the “Lynch” who stole Christmas.

Stephen M. Fitzpatrick

Red Bank
Ed McKenna who endorsed the GS Realty/Amboy Bank approvals that were acquired by Brenda McIntyre also became a member of the Red Bank Rivercenter just prior to Amboy Bank/GS Realty making application for the approvals and numerous variances. This project failed to meet the guidelines on the Rivercenter organization. In addition the township rezoned the property for greater density on the parcels that were identified as in foreclosure from the former Coffenberg approval after the town argued that the Coffenberg approval was creating a much higher density than permitted in the zone which was never true and proven during the Coffenberg approval process.
Here is the deed for Station Place’s Purchase from GS Realty which is Amboy Bank.
deed station place
Here is the tax record for the Station Place purchase and mortgage from Amboy Bank.

The data within this report is compiled by CoreLogic from public and private sources.
Generated on 11/06/2013
153 Monmouth St, Red Bank, NJ 07701, Monmouth County
Beds
N/A
MLS Sq Ft
60,000
Lot Sq Ft
15,002
Sale Price
$4,000,000
Baths
N/A
Yr Built
N/A
Type
N/A
Sale Date
12/19/2012
Expired Listing
Owner Information
Owner Name: Station Place At Red Bank LLC Tax Billing Zip: 07739
Tax Billing Address: 52 Paag Cir Tax Billing Zip+4: 1739
Tax Billing City & State: Little Silver, NJ Owner Occupied: No
Location Information
Township: Red Bank Boro Carrier Route: C004
Zoning: MU-08 Block #: 42
Census Tract: 8036.00 Lot #: 1
Tax Information
Tax ID: 39-00042-0000-00001 Lot Number: 1
Tax Appraisal Area: 39 Block ID: 42
Legal Description: ALSO LOT 2 NIT 1A
Assessment & Tax
Assessment Year 2012 2011 2010
Assessed Value – Total $737,000 $914,400 $914,400
Assessed Value – Land $737,000 $737,000 $737,000
Assessed Value – Improved $177,400 $177,400
YOY Assessed Change (%) -19.4% 0%
YOY Assessed Change ($) -$177,400 $0
Tax Year Total Tax YOY Tax Change ($) YOY Tax Change (%)
2010 $16,221
2011 $16,523 $302 1.86%
2012 $13,657 -$2,867 -17.35%
Characteristics
Estimated Lots Acres: 0.3444 Estimated Building Square
Feet:
Tax: 1,862 MLS: 60,000
Estimated Lot Area: 15,002 Exterior: Concrete Block

Property Detail
Page 2 of 3
The data within this report is compiled by CoreLogic from public and private sources.
Generated on 11/06/2013
Last Market Sale & Sales History
Recording Date: 12/28/2012 Deed Type: Bargain & Sale Deed
Settle Date: 12/19/2012 Owner Name: Station Place At Red Bank LLC
Sale Price: $4,000,000 Seller: Gs Realty Corp
Document Number: 8988-5283
Recording Date 12/28/2012 09/13/2012 05/21/2009 12/06/2006 07/09/2004
Sale Price $4,000,000 $955,000
Nominal Y Y Y
Buyer Name Station Place At Red Bank LLC
Balacco Property Mgmt
LLC Gs Realty Corp R B Monmouth LLC Palatial Homes At Red
Bank LLC
Seller Name Gs Realty Corp Gs Realty Corp Rb Monmouth LLC R B Monmouth LLC Torra Frank M &
Alexandra
Document Number 8988-5283 8970-6379 8774-6828 8613-680 8379-7961
Document Type Bargain & Sale Deed Deed (Reg) Rerecorded Deed Deed (Reg) Deed (Reg)
Recording Date
Sale Price $40,000
Nominal
Buyer Name Torra Frank
Seller Name Methot June
Document Number 4161-84
Document Type Deed (Reg)
Mortgage History
Mortgage Date 12/28/2012 07/27/2007 05/11/2007 07/09/2004
Mortgage Amount $9,600,000 $500,000 $4,500,000 $1,886,880
Mortgage Lender Amboy Bk Amboy Nat’l Bk Amboy Nat’l Bk Amboy Nat’l Bk
Mortgage Type Resale Construction Construction Resale
Foreclosure History
Document Type Release Of Lis Pendens/Notice Lis Pendens
Foreclosure Filing Date 09/22/2008
Recording Date 01/20/2012 10/07/2008
Document Number 6806 107013
Original Doc Date 03/31/2010 05/11/2007
Original Document Number 27909
Original Book Page 8825009634 8651001071

Legal Problems for Law Firm Involved with Red Bank Affordable Housing Corp.

Part of the indictment related to Joseph Ferriero involves the DeCotiis Law Firm that is involved with the Red Bank Affordable Housing Corporation where former Red Bank Mayor Ed McKenna serves as the Corporations Vice President. This is from NorthJersey.com And, in a statement, Kerrie Campbell, a lawyer representing the DeCotiis firm, said: “The DeCotiis, FitzPatrick & Cole firm assisted the government’s investigation at the request of the U.S. Attorney’s Office. Because the matter is pending in the federal court, we will not be providing further comment at this time.” The indictment puts the three men and Ferriero together at a restaurant in 2002 for a meeting called ostensibly to “settle certain differences” among them. Instead, Ferriero and Scarinci and Hollenbeck — identified in the indictment as Attorneys 1 and 2 — made a pitch to DeCotiis that would ultimately earn their consulting firm about $1.7 million. According to the indictment, the three informed DeCotiis that they had been asked to represent a competitor who intended to use “scorched earth” tactics to defeat Mills’ bid to be named the Meadowlands project developer. For $35,000 a month, though, they said they’d work for his client instead. DeCotiis then agreed to discuss the proposal with his client, who, fearing it could lose out on a substantial investment, agreed to make the payments, the indictment indicates. According to the indictment, DeCotiis recommended to his client that it pay, both to keep Ferriero and those under his sway from opposing Mills’ bid and to secure Ferriero’s help in winning public and official support. The indictment also indicates the DeCotiis law firm, referred to as the “Teaneck law firm,” then made the payments to the consulting company and billed the expenditure to Mills. From 2002 to 2006, the indictment states, about $1.7 million in “consulting service” payments from the Virginia developer were sent to Concept Realization LLC, the company that state records show was created by Ferriero, Scarinci and Hollenbeck. At one point, according to the indictment, Ferriero sent a batch of predated invoices to the DeCotiis law firm. When those invoices ran out in March 2004, DeCotiis had a member of his firm get additional invoices from Ferriero, the indictment indicates. The monthly payments continued until September 2006.
The Red Bank Affordable Housing Corporation also has William Katchen from Bergen County involved in its operations. William Katchen’s path has crossed many times with people who have questionable or criminal activities. The following is an article from northjersey.com showing the connections between Katchen and Ferriero/Oury owners of Government Grants Consulting LLC. Affordable housing funds shifted

Monday, October 6, 2008
Last updated: Monday October 6, 2008, EDT 6:43 AM

BY MICHAEL GARTLAND

STAFF WRITER

Paramus Mayor James Tedesco authorized the transfer of nearly $4 million in affordable housing funds without obtaining the Borough Council’s approval, an apparent violation of affordable housing rules, public records show.

Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.

Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.

Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough’s spokesman.

“If the borough did not adopt any specific resolutions, this was an oversight,” Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.

The U.S. Attorney’s Office has served at least two subpoenas related to the borough’s affordable housing program. The non-profit received one in August and the borough received one in July.

It is unclear what specifically drew federal attention.

Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.

The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.

A significant portion of the project’s funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.

“The town council authorizes expenditures,” he said. “The CFO would ultimately execute them.”
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.

$3.6M mystery
Council members who served in 2004 also did not recall voting to release the $3.6 million. Former council members Sandra Gunderson, Joe D’Ambrozio and Connie Wagner, who is now an assemblywoman, said they did not remember allowing that sum for affordable housing.
“When it came to affordable housing, I saw virtually nothing,” Gunderson said.

The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.

In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account “as per the agreement approved by Dennis J. Oury LLC.”

Oury was Paramus’ borough attorney in 2004. State records also list him as the registered agent for PAHC.

State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.

Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
“All the contributions should be shown,” she said. “It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up.”

Oury involvement
Oury resigned as counsel for the Bergen County Democratic Organization last month after he and BCDO Chairman Joseph Ferriero were indicted by a federal grand jury on eight counts of fraud conspiracy not related to Paramus.

The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury’s attorney, Gerald Krovatin, did not return calls for comment.

The accountant who handled PAHC’s 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.

46-unit project
The U.S. Department of Housing and Urban Development slapped Katchen with a one-year suspension from federal housing work in 1990 after the Passaic Housing Authority misspent $1.7 million in taxpayer money. He was the authority’s accountant.

After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.

The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.

Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:

* Penwal Affordable Housing Corp. (non-profit): Walsh and Laury Pensa, directors.
* Canyon Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Summit Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Steamboat Corp. (for profit): Walsh, president; Pensa, agent and incorporator.

Steamboat received a $976,500 development fee from Paramus Affordable Development for a project with an $8.1 million budget, according to records provided by the state. Canyon received at least $44,000, and Summit took in at least $5,000.

Development fee
In a financial disclosure form filed with the state’s Housing Mortgage and Finance Agency, Walsh wrote that Penwal — which, according to its tax form, has “implemented and developed low-income housing projects in Dumont, Garfield, Jersey City and Paramus” — would get the development fee. He did not mention his interest in Steamboat on the form.

Other records obtained from the state mortgage agency show that the development fee went to Steamboat.

A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa’s interest in Penwal or Paramus Affordable Development LP. Pensa’s signature appears on that financial disclosure statement.

In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.

Bergen County’s United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.

“HMFA has to bless it each step of the way,” he said. “Otherwise, the money wouldn’t flow.”

E-mail: gartland@northjersey.com

Find this article at:
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html
The Decotiis Law Firm Press Release related to Red Bank Affordable Housing Corporation is below. Wonder who the consultants were who secured the Government financing for the project?
DeCotiis’ helps create Red Bank Affordable Housing Corporation

Thirty-six units of affordable housing already in development

DeCotiis, FitzPatrick & Cole, LLP, in its role as Counsel to the Red Bank Affordable Housing Corp., recently helped lead the successful development of Cedar Crossing at Red Bank, a 36-unit, for sale, affordable housing project in the Borough of Red Bank, New Jersey.

This project is being constructed on a site that was acquired by the Borough using Municipal Land Acquisition Funds obtained from the New Jersey Department of Community Affairs. As part of this project, DeCotiis worked with other project consultants to secure necessary state, county and local funding and approvals. DeCotiis attorneys also worked to organize and incorporate the Red Bank Affordable Housing Corp., the nonprofit developer created exclusively for the charitable purpose of promoting, developing, constructing, operating and selling affordable housing in the Borough.

“We are proud to have played a role in the development of this very important project,” said Frank Borin, a Partner at DeCotiis and a member of the firm’s Executive Committee. “I hope we can replicate this project elsewhere in order to bring new affordable housing options to the State’s residents. The leadership of the Borough and of the Red Bank Affordable Housing Corp. should be commended for their commitment to this project and their tireless efforts to see the project through.”

The project consists entirely of two and three bedroom units to be constructed in two phases. All of the units will be owner-occupied by affordable households, as defined by the Fair Housing Act and the COAH regulations. The first phase of the project should be ready for occupancy in the Spring of 2011, with the second phase being completed shortly thereafter.

Please join DeCotiis, FitzPatrick & Cole in congratulating Frank Borin, Maurice Stone and Amy Shotmeyer for their exemplary work with the Red Bank Affordable Housing Corporation.

Government Grants Consulting owner indicted for Racketeering

Joseph Ferriero an owner with Dennis Oury in Government Grants Consulting LLC has been indicted for Racketeering related to political corruption and extortion in Bergen County NJ. Here is the full indictment. Here is the article in the Star Ledger Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization and once a major Democratic powerbroker in New Jersey, was indicted today by a federal grand jury with running a racketeering scheme in which he allegedly paid kickbacks to a public official, solicited and accepted bribes and extorted companies wanting to do business in Bergen County, authorities said.

The sweeping 74-page indictment charges Ferriero, 56, with conspiring to promote bribery, distributing bribery proceeds, and committing mail and wire fraud. He also is accused of violating the federal Travel Act and mail and wire fraud statutes, authorities said. Dennis Oury agreed to a deal for a lighter sentence and then testified against Joseph Ferriero related to hidden interests in Government Grant Consulting. Here is an article from the Bergen Record. Former Bergen County Democratic Chairman Joseph Ferriero faces a federal corruption trial Thursday without his longtime political ally and codefendant after Dennis Oury pleaded guilty Tuesday and implicated Ferriero in a scheme to secretly profit from a grant-writing business. The surprise plea, coming two days before opening statements were scheduled, shifts the dynamics of the trial and raises the prospect that Oury, the former chief counsel for the BCDO, may have traded his seat at the defense table for a spotlight in the witness box. Lawyers in the case would not comment on whether Oury, 59, a veteran municipal and land use attorney, has agreed to testify for the government. That inference, however, appeared likely from the lengthy and detailed questions Oury answered in acknowledging his and Ferriero’s roles in the scheme. “Did you and Joseph Ferriero deliberately set up and structure this company so that your involvement would not be publicly known to others, including the potential clients that you intended to solicit for business?” asked U.S. District Judge Stanley R. Chesler. “Yes, your honor,” Oury replied. “To help keep your involvement and Joseph Ferriero’s involvement from being known to the public, did Joseph Ferriero prepare a shareholders agreement and other documents … that assigned officer roles in the company to ‘front people’ rather than yourself and Joseph Ferriero?” the judge continued. “Yes,” Oury said. David Spatz was the president of Government Grants Consulting and was also the consultant to the Union City Agency for Community Development that was raided by the FBI a few months ago.
Sun Jun 15, 2008 at 07:57:07 PM EDT

Michael Gartland of the Bergen Record is now telling us that an illegal partnership may be the undoing of the Boss of Bergen County and his Lackluster Lackey-in-Chief:
A consulting firm at the center of a federal investigation did not incorporate in New Jersey or file an affirmative action report, as required by law, according to state officials.
Governmental Grants Consulting also doesn’t show up in a database covering corporate documents from all 50 states.

The only paper trail left behind by the firm is the contracts it had with at least five Bergen County municipalities, along with records showing payments for those contracts.

Hmmm. Let’s see – if they opened a bank account under an illegal business name, then that would be bank fraud. If they mailed a bill to their clients, then that would be mail fraud. Looks like it’s pretty bad for Ferriero and Oury. Oury, in particular, seems to have “forgotten” to file disclosure reports for some of his conflicted interests.

The best excuse for those handing out contracts? Take a lesson from James Guida, former mayor of Lyndhurst:

Former Lyndhurst Mayor James Guida, said he thought Spatz showed him the proper credentials for a limited liability company, but was not entirely certain.
“I met the fellow, I think, once,” he said. “Governmental Grants – it sounded professional. David Spatz – he sounded very professional.”

Ineptitude and stupidity, it seems, will be the defense The following is related to testimony given by David Spatz explaining how Government Grants Consulting operated. Thursday, October 08, 2009

Spatz: Ferriero gave list of towns to solicit business from

David Spatz testified that Joseph Ferriero and Dennis Oury provided him with a list of municipalities and contacts in those towns to use when soliciting business for Governmental Grants Consulting.

Spatz testified that he met with Bergenfield officials Feb. 7, 2002, and introduced himself. Borough Administrator Joseph Hess and Mayor Robert Rivas asked Spatz about his experience with grant work and told him about the types of projects in which Bergenfield was interested.

The meeting fell one day after Spatz had breakfast with Ferriero.

After the meeting, Spatz sent Ferriero an e-mail, telling him what was discussed — primarily that Bergenfield was interested in a Green Acres grant, and that the borough’s engineer wrote Department of Transportation grants.

Ferriero responded that Spatz should “convince them” that GGC did DOT grants.

“Indicate that we have influence to get a better result,” Ferriero wrote.

“When you met with Bergenfield, were you aware they were already a GGC client?” Honig asked Spatz.

“No,” he replied.

“Was the company up and running,” Honig asked.

“No,” Spatz said.

A shareholders agreement was signed by the parties of GGC on March 15, 2002.

Spatz also said he sent monthly invoices for his $3,500 salary to Ferriero.

On April 26, 2009, Spatz sent
“It was my understanding that [Barrett] was still president, and Mr. Mottola was still secretary,” Spatz said.

Mottola and Barrett testified earlier this week that they withdrew from GGC about a week after the March 15 shareholders agreement was signed.

Spatz began signing contracts as president in May, and Maria Fagliarone, Ferriero’s personal secretary, began signing as corporate secretary for GGC.

“As president, what duties did you have other than signing contracts?” Honig asked.

“None,” Spatz replied.a letter to Thomas Barrett and Anthony Mottola, early participants in GGC — and copied Ferriero — asking Barrett and Mottola to sign a contract.
Part of this on-going investigation involves the Paramus Affordable Housing Corporation which dealt with David Spatz of Government Grants Consulting and William Katchen the accountant for the Paramus Affordable Housing Corporation. William Katchen is also involved with the Red Bank Affordable Housing Corporation with former Red Bank Mayor Ed McKenna.
Another subpoena for mayor’s non-profit

Friday, August 22, 2008
Last updated: Friday August 22, 2008, EDT 10:41 PM
BY MICHAEL GARTLAND
The Record
Staff Writer

PARAMUS – A borough affordable housing corporation has received a subpoena from federal agents, municipal spokesman Keith Furlong confirmed today.

The subpoena, which was served Thursday, is the second in two months regarding the Paramus Affordable Housing Corp., a non-profit for which Mayor James Tedesco serves as president.

Dennis Oury, who served as the borough attorney from 2001 to 2007, is listed as the non-profit’s agent, according to state records. He also serves as counsel for the Bergen County Democratic Organization.

Federal agents served search warrants at his law offices Thursday, along with those of Joseph Ferriero, the BCDO chief. The agents seized at least 18 boxes of documents and computer hard drives.

Attorneys for both men confirmed that agents searched the offices for information about Governmental Grants Consulting, a firm in which Ferriero and Oury were partners with two other men – David Spatz, its president, and Leonard Kaiser, who also serves as Bergen County Utilities Authority Chairman.

Sean Quinn, a spokesman for the FBI, would not confirm today whether the subpoena and the search warrants were connected.

The U.S. Attorney’s Office served the borough with a subpoena in July, seeking records about Paramus Affordable Housing Corp.

According to 2007 tax records, Paramus Affordable Housing Corp. has assets worth about $2.4 million, although property tax records put the total at $3 million.

Tedesco, who has been mayor since 2003, and the non-profit’s accountant, William Katchen, have not responded to repeated requests for comment since the first subpoena was received.

Katchen, who once served as director of the Edgewater Municipal Utility Authority, also has worked for the housing authorities of Garfield, Cliffside Park, Edgewater, Englewood and the city of Passaic.

In 1990, the U.S. Department of Housing and Urban Development slapped him with a one-year suspension after the Passaic Housing Authority misspent $1.7 million in taxpayer money. Katchen was the housing authority’s accountant.
Tedesco and Katchen’s aren’t the only names that appear on the non-profit’s tax forms.

Former Paramus Councilman Richard Lambert was listed as the non-profit’s secretary on its 2004 tax form, but Lambert said he ended his ties with the group after stepping down as a councilman in 2000.

“That’s crazy,” he said. “My name shouldn’t be there. I didn’t go to any meetings after I left.”

John Tashjian was listed as a trustee in 2004, but said he never attended any of the non-profit’s meetings.

Louis Romano appears on the form next to the designation of vice president. Romano, who has served on the borough’s Planning Board and Board of Adjustment, said he, too, was surprised his name appeared on the 2004 tax document.

“The mayor appointed me in ’05,” he said. “I was there a couple of months, and I resigned. It just wasn’t my bag.”

U.S. Attorney Christopher J. Christie has executed more than 30 subpoenas in North Jersey since May. Many of those have sought information related to Oury and Governmental Grants Consulting.

Federal authorities appear to be looking into how that firm’s principals used their political influence to obtain business for it.

Oury, who also is counsel for the Bergen County Improvement Authority, has held jobs in several towns, including Ridgefield and Bergenfield, both of which employed Governmental Grants Consulting.

In Bergen County, his public work generated $760,000 to $1.1 million in annual income for his law firm in each of the three previous calendar years. Oury has given at least $105,000 to Democratic candidates since 1999, most of it going to the BCDO.

Bergenfield fired Oury as its borough attorney in January, and Paramus reassigned him to a labor attorney position.

E-mail: gartland@northjersey.com

Find this article at:
http://www.northjersey.com/news/Anot…on-profit.html
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It is interesting how William Katchen’s paths cross those with legal issues. David Spatz was not only involved with Government Grants Consulting but also in Union City where the FBI recently raided the office of the Agency for Community Development in which David Spatz was a consultant. Dennis Oury who was the borough attorney for Paramus as well as the agent for Paramus Affordable Housing Corporation has now become a cooperating witness for the case against Joseph Ferriero and Government Grants Consulting. Len Kaiser of Government Grants Consulting was arrested by the FBI for illegal use of campaign funds. The FBI investigation of the Paramus Affordable Housing Corporation was related to its dealings with Government Grants Consulting. Len Kaiser also worked with William Katchen on the merger of the Bergen County Utility Authority and the Edgewater Utility Authority.
Another part of the indictment deals with the C3 Emergency Website System that is used by the Borough of Red Bank. C3 Holdings of Nutley NJ is the company and is accused of providing kickbacks to Ferriero in order to secure contracts with various municipalities. Here is an article from the Two River Times when the contract was first announced. Joseph Ferriero was also involved in the failed Encap project along with the DeCotiis Law Firm. The DeCotiis Law Firm is involved in the Red Bank Affordable Housing Corporation. Federal investigators also have issued subpoenas in the collapse of the EnCap golf and housing project. They are working with the New Jersey Attorney General’s Office in a probe of the massive project’s failure. State Inspector General Mary Jane Cooper reported in February that EnCap and members of the powerful DeCotiis law firm in Teaneck, misled state officials about their resources and ability to manage the reclamation of four landfills in Lyndhurst and Rutherford and the installation of complex environmental safeguards. The officials said the joint state and federal team is zeroing in on a handful of controversial figures and issues connected to EnCap. – See more at: http://www.northjersey.com/news/environment/specialreports/Ferriero_probe_grows_deeper.html?page=all#sthash.s0Ass1kQ.dpuf Here is a full article related to the Encap Scandal From the very beginning, the fortunes of EnCap and the other Cherokee New Jersey projects were in the hands of the DeCotiis law firm — in particular, Wisler, a marquee partner whom witnesses described as a driving force and top day-to-day decision maker. Wisler was indicted as Bryant’s co-defendant but died of cancer before the trial began. He had pleaded not guilty. The firm — which boasts many ex-government officials among its members — is widely known as one of the state’s most effective. It is also known for making political donations and receiving millions in contracts from government agencies. Both firm founder M. Robert DeCotiis and his son, Michael DeCotiis, served as chief legal counsel to Democratic governors. Alfred DeCotiis, M. Robert DeCotiis’ brother, is one of the state’s leading political fund-raisers. Former Cherokee executives who testified during the Bryant trial said the developers chose the DeCotiis firm to shepherd their projects because it wanted a guide who could navigate the New Jersey’s political landscape. The law firm’s office in Teaneck became ground zero for the developers as they began to court state officials in Trenton and the Meadowlands in 1999, some five years before groundbreaking on the EnCap golf project took place. Former Cherokee executive Anselm Fusco testified that when he was hired in 2002, he reported to work at the DeCotiis firm’s Teaneck office because the North Carolina-based developers did not yet have a New Jersey office of their own. The former president of Encap was arrested by the FBI for extortion related to a redevelopment project in Asbury Park, NJ

T&M Engineering Questionable Donations in Hamilton NJ

The Star Ledger as part of an on-going investigation into the Birdsall Engineering illegal campaign donations has discovered that two other engineering firms who did business in Hamilton, NJ may have violated pay to play laws in that town. If a company donates more than $300 they must declare that and are barred from doing business in the town for the next 12 months. T & M paid the Hamilton Republican Party $600 for an ad journal that was never reported. This money then made it’s may to the Mayor of Hamilton’s Campaign Fund. The following year T & M received nearly $75,000 in business from the town. Here is part of the article: Like Birdsall, the two firms — T&M Associates and Remington, Vernick & Arango — made contributions in the form of advertisements in the programs handed out to attendees of former Mayor John Bencivengo’s annual Mayor’s Ball galas. They went on to receive tens of thousands of dollars in township contracts soon after, in apparent violation of Hamilton’s rules.

The money went to the Hamilton Township Republican Committee and was transferred to Bencivengo’s own campaign accounts, committee chairman Michael Chianese said.

Under the township’s pay-to-play rules, first adopted in 2003, if a company makes more than $300 in donations to the campaign of any elected official, candidate municipal party or committee, the firm is barred from receiving contracts for 12 months.

Business Administrator John Ricci said neither firm reported any donations on their disclosure forms, as required when applying for a township contract, and passed pay-to-play examinations by the legal and purchasing departments. He said he did not know why the contributions were not reported. T&M Engineering has always been one of the largest donors to politicians in New Jersey. This is from an Asbury Park Press article and the full article can be read at Red Bank Green. The biggest donor, as it has been in all five years the reports have been compiled, was the Middletown-based engineering firm T&M Associates. It made 184 political contributions totaling $435,110 last year, and was paid $30.3 million from government contracts, up 2.3 percent from a year earlier.

Company spokesman Tom Wilson said the firm doesn’t feel pressure from politicians to make campaign donations, and receives contracts after going through competitive processes that show it’s often the best candidate for the work.

“The reality is it’s one of, if not the, largest professional engineering firms in the state,” Wilson said. “They do work all over the state. They have lots of folks who solicit them for support, charitable, political and otherwise. I don’t think it should be terribly surprising their being at the top of the list.”

T&M Associates did work last year for 17 of the state’s 21 counties or their authorities, including contracts totaling more than $1 million each from Gloucester, Middlesex and Monmouth. It also held local contracts in more than 100 municipalities, including nearly $1.4 million in Union Township in Union County, and $1 million each in Middletown and Red Bank.
T&M Engineering had questionable donations made in Jersey City a few years ago. Here is an article from the Jersey Journal/Star Ledger on how it was resolved Here was an earlier article where T & M Engineering denied making the donation and ultimately the Councilman was told to change the form dates to reflect receiving donations prior to the pay to play laws taking effect. QUESTIONS VEGA REPORT
Firm with city contract denies giving him $$$
Friday, November 13, 2009
By MELISSA HAYES
JOURNAL STAFF WRITER

Jersey City Councilman Mariano Vega’s campaign finance reports have come under fire.

Resident John Seborowski Sr. cited the reports during Tuesday’s City Council meeting, saying an engineering firm may have broken the city’s pay-to-play law. But the firm contends the reports are erroneous.

This is not the only issue with Vega’s reports.

As The Jersey Journal reported yesterday, Vega last month updated his ELEC filings to include $10,000 that was previously not reported. The funds are linked to $30,000 Vega allegedly took from a federal informant cooperating in a federal corruption sting. Vega was one of 44 people the U.S. attorney charged in July.

According to Vega’s May Election Law Enforcement Commission reports, T&M Associates contributed $600 to Vega’s re-election campaign and Dominic Carrino, the vice president of the Middletown-based firm, donated $400. There was no date for the contributions on the report.

Those contributions would appear to violate the city’s pay-to-play law, adopted last year, which prohibits donations over $300 from people and firms doing business with the city.

But T&M spokesman Pete McDonough, a partner at Winning Strategies Pubic Relations, said the donations were never made and noted that the company’s address on the contribution attributed to Carrino is incorrect.

“They checked with the employee and they checked the bank records, and no donations were made,” he said.

Reached by telephone yesterday, Vega said the money had to come from someone.

“If I put it in there, I must have gotten something from somebody,” said Vega, who serves as the treasurer for his account. “I’ll probably look into it.”

T&M is vying for a $125,000 contract for design and construction of Marion Greenway Park at the former PJP Landfill in Jersey City. The council was set to vote on the contract, but the resolution was tabled.

According to the city’s pay-to-play law, a business or individual employee cannot donate more than $300 to any candidate, $500 to any joint candidate committee or $300 to a political committee or political party in Jersey City within one year of receiving a contract with the city.

T&M has an ongoing contract with the city for work it has already done at the PJP tract.

The law also places a $500 cap on donations to Hudson County political committees and political party committees and to any political action committees (PACs) that “regularly” donate to local candidates.

Companies found in violation of the law can be banned from city work for four years.

Jeffrey Brindle, executive director of the Election Law Enforcement Commission, said he couldn’t comment on a specific case, but spoke generally.

“It could possibly be something that is accidental or a mistake. In that case we would work with the filer of the report to amend the report and correct the mistake,” he said.

“On the other hand if it’s an intentional misrepresentation of the source of the contribution we would probably turn it over to the attorney general.”

http://www.nj.com/hudson/index.ssf/20 … l_front_and_back_609.html

West New York Affordable Housing

The Mayor of West New York Felix Roque has had some legal issues after a Hudson County Freeholder was working for the FBI as an informant and now it is learned that the Freeholder has been cooperating on other matters since 2011. William Katchen who is part of the Red Bank Affordable Housing Corporation is also the accountant for the West New York Housing Corporation With $8.14 million in assets as of year-end 2011, West New York Housing Corporation A New Jersey Nonprofit Corporation is one of the larger nonprofits. The 2011 reported income for West New York Housing Corporation A New Jersey Nonprofit Corporation was $8,000, making it one of the lowest-earning organizations.West New York Housing Authority Executive Director denies FBI visiting West New York just days before it is announced that Jose Munoz was an informant for the FBI. Bob DiVincent, the West New York Housing Authority Executive Director is also the CEO of West New York Housing Corporation. Frank Borin, William Katchen and Robert “Bob” DiVincent are all members of the New Jersey Chapter of the National Association of Housing and Redevelopment Officials. William Katchen and Frank Borin are involved in the Red Bank Affordable Housing Corporation along with former Red Bank Mayor Ed McKenna. Robert Divincent and William Katchen are also involved in the West New York Housing Authority. It seems that William Katchen is always surrounded with scandals yet nothing ever seems to happen to him but it is interesting that his friend denies that the FBI has visited West New York and then within 2 weeks it is discovered that the FBI had an informant targeting the town. Here is another Affordable Housing investigation involving William Katchen:
Published in the Bergen Record, Monday, October 6, 2008

[Funds transferred without Council approval; Christie subpoenas]

Affordable housing funds shifted

Monday, October 6, 2008
Last updated: Monday October 6, 2008, EDT 6:43 AM

BY MICHAEL GARTLAND

STAFF WRITER

Paramus Mayor James Tedesco authorized the transfer of nearly $4 million in affordable housing funds without obtaining the Borough Council’s approval, an apparent violation of affordable housing rules, public records show.

Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.

Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.

Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough’s spokesman.

“If the borough did not adopt any specific resolutions, this was an oversight,” Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.

The U.S. Attorney’s Office has served at least two subpoenas related to the borough’s affordable housing program. The non-profit received one in August and the borough received one in July.

It is unclear what specifically drew federal attention.

Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.

The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.

A significant portion of the project’s funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.

“The town council authorizes expenditures,” he said. “The CFO would ultimately execute them.”
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.

$3.6M mystery
Council members who served in 2004 also did not recall voting to release the $3.6 million. Former council members Sandra Gunderson, Joe D’Ambrozio and Connie Wagner, who is now an assemblywoman, said they did not remember allowing that sum for affordable housing.
“When it came to affordable housing, I saw virtually nothing,” Gunderson said.

The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.

In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account “as per the agreement approved by Dennis J. Oury LLC.”

Oury was Paramus’ borough attorney in 2004. State records also list him as the registered agent for PAHC.

State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.

Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
“All the contributions should be shown,” she said. “It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up.”

Oury involvement
Oury resigned as counsel for the Bergen County Democratic Organization last month after he and BCDO Chairman Joseph Ferriero were indicted by a federal grand jury on eight counts of fraud conspiracy not related to Paramus.

The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury’s attorney, Gerald Krovatin, did not return calls for comment.

The accountant who handled PAHC’s 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.

46-unit project
The U.S. Department of Housing and Urban Development slapped Katchen with a one-year suspension from federal housing work in 1990 after the Passaic Housing Authority misspent $1.7 million in taxpayer money. He was the authority’s accountant.

After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.

The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.

Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:

* Penwal Affordable Housing Corp. (non-profit): Walsh and Laury Pensa, directors.
* Canyon Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Summit Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Steamboat Corp. (for profit): Walsh, president; Pensa, agent and incorporator.

Steamboat received a $976,500 development fee from Paramus Affordable Development for a project with an $8.1 million budget, according to records provided by the state. Canyon received at least $44,000, and Summit took in at least $5,000.

Development fee
In a financial disclosure form filed with the state’s Housing Mortgage and Finance Agency, Walsh wrote that Penwal — which, according to its tax form, has “implemented and developed low-income housing projects in Dumont, Garfield, Jersey City and Paramus” — would get the development fee. He did not mention his interest in Steamboat on the form.

Other records obtained from the state mortgage agency show that the development fee went to Steamboat.

A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa’s interest in Penwal or Paramus Affordable Development LP. Pensa’s signature appears on that financial disclosure statement.

In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.

Bergen County’s United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.

“HMFA has to bless it each step of the way,” he said. “Otherwise, the money wouldn’t flow.”

E-mail: gartland@northjersey.com

Find this article at:
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html

Public Trust the story of 51 Monmouth St & Cedar Crossing Red Bank NJ

Here is an article related to government officials and the NJ Criminal Code.

By Edward J. Kologi. Esq. League Associate Counsel

Many individuals seek public office with the genuine intent  of trying to effectuate positive change. Although only a small percentage of  elected officials ever engage in actual criminal behavior, it is imperative  that all officials remain aware of precisely what constitutes criminal conduct  to ensure that they never cross over the line.

The New Jersey Criminal Code (N.J.S.A 2C:1-1 et seq.)  contains a number of offenses which are specifically directed at public  officials and/or employees. Although this article is not intended as an  exhaustive treatment of all state law on this subject, it will hopefully  provide a working knowledge of the major acts or omissions which may give rise  to criminal culpability.

Official Misconduct (N.J.S.A. 2C:30-2) A public servant commits official misconduct if with a purpose to obtain  a benefit for himself or herself or another (or to injure or deprive another of  a benefit) he or she knowingly commits an act relating to his or her office  constituting an unauthorized exercise of official functions: or knowingly  refrains from performing a duty which is imposed by law and is clearly inherent  in the nature of the office. The “benefit” obtained may be of minimal value.  Investigation Into Hamilton  T.P. Board of Education 205 N.J. Super. 248 (App. Div.1985). This also includes  benefits not received by the public official but rather by a third party. State  v. Schenkolewski 301 N.J.Super.115 (App. Div.), cert. den.151 N.J. Super.  (1977). To violate this section, the individual must be a public servant and  the act must relate to the office. State v. Bullock 136 N.J. 149 (1994). Unlawful Business Transaction Where Interest Is Involved  (N.J.S.A. 2C:27-9) A public servant violates this law if, while  performing his or her official functions on behalf of a governmental entity, he  or she knowingly transacts any business with him or herself, a member of his or  her immediate family, or a business organization in which the public servant or  an immediate family member has an interest. The term “business organization”  shall not include aggregate familial ownership or control of one percent or  less of an interest in the capital or equity of the business organization.  Further, it is not a violation if the public servant’s performance of official  functions would not affect him or her, his or her family or business  organization differently than such performance would affect the public  generally.

Acceptance or Receipt of Unlawful Benefit by Public Servant  for Official Behavior (N.J.S.A . 2C:27-10) If under color of office and  in connection with any official act performed or to be performed, a public  servant directly or indirectly knowingly solicits, accepts or agrees to accept  any benefit for himself or another person to influence the performance of any  official duty, a violation occurs. Further, the term “benefit” includes any  benefit from or by reason of a contract or agreement for goods, property or  services awarded by the public entity employing the public servant. There are  three exceptions in the statute as to conduct not constituting a violation: (1)  fees or any other benefit prescribed by law to be received by the public  servant to which he or she is otherwise legally entitled and if said fees or  benefits are received in the manner legally prescribed and not bartered for  another benefit to influence his or her official duties; (2) gifts or other  benefits conferred on account of kinship or other personal, professional or  business relationship independent of the official status of the recipient if  same are not bartered for another benefit to influence the performance of an  official duty; (3) trivial benefits which involve no risk that the public  servant would perform official duties in a biased or partial manner. For  grading purposes, this section is a crime of the second degree unless the  benefit solicited or accepted is of a value of $200 or less, in which case it  is a crime of the third degree. Hence, an occasional lunch or even perhaps a  round of golf may not be problematic; however, using a vendor’s condo in Florida on a regular  basis may certainly raise problematic issues under this section

In  sum, there is little room for error in terms of conduct which falls within any  of the above categories. While the official may not be aware that such acts may  constitute a criminal act, ignorance of the law continues to be no excuse, nor  should it be. If an official has the slightest question as to whether a  proposed action or course of conduct is illegal, appropriate advice from either  the local public entity attorney or in appropriate cases, the County Prosecutor  should be sought prior to acting. The career you save may be your own.

Edward J. Kologi, Esq. has represented public entities for 25  years and currently serves as Linden’s  Municipal Attorney and as Associate Counsel to the New Jersey State League of  Municipalities.

After reading the above report you start to question whether the 51 Monmouth St (Old Red Bank Police Station) and the Cedar Crossings development were handled properly. The 51 Monmouth St property was gifted to Mayor Ed McKenna’s Kid’s Bridge Charity which then borrowed over 1 million dollars from Amboy Bank for possible renovations. Kid’s Bridge Charity was taken over by the Red Bank YMCA about a year after the town gifted the property. Eventually the property was sold for over 1 million dollars while the Borough of Red Bank received no money thus costing the taxpayers of Red Bank over 1 million dollars. A judge as noted by the plaintiff pre-wrote her decision which also happened to me involving the Courtyards at Monmouth project and led me to create this site. The decision appears to allow the sale to go through between the YMCA and Red Bank Catholic but does not address an allegation that it was not disclosed that Ed McKenna’s charity would be the organization that received the property for $1. This transfer occurred while Ed McKenna was Mayor of Red Bank.  Another situation involving Mayor Ed McKenna was that in August 2006 he pushed for the Red Bank Council to acquired land at above the appraised value using State Grant Money designated for the creation of affordable housing.  At the time Ed McKenna never indicated that he would be creating a non-profit development corporation known as Red Bank Affordable Housing Corp in which he was designated Vice President. This corporation was created in the Spring of 2007 just months after Ed McKenna stepped down as Mayor of Red Bank. Here is information from the Decotiis lawfirm on the creation of Red Bank Affordable Housing Corp.

DeCotiis’ helps create Red Bank Affordable Housing Corporation  

Thirty-six units of affordable housing already in development

DeCotiis, FitzPatrick & Cole, LLP, in its role as Counsel to the Red Bank Affordable Housing Corp., recently helped lead the successful development of Cedar Crossing at Red Bank, a 36-unit, for sale, affordable housing project in the Borough of Red Bank, New Jersey.

This project is being constructed on a site that was acquired by the Borough using Municipal Land Acquisition Funds obtained from the New Jersey Department of Community Affairs. As part of this project, DeCotiis worked with other project consultants to secure necessary state, county and local funding and approvals. DeCotiis attorneys also worked to organize and incorporate the Red Bank Affordable Housing Corp., the nonprofit developer created exclusively for the charitable purpose of promoting, developing, constructing, operating and selling affordable housing in the Borough.

“We are proud to have played a role in the development of this very important project,” said Frank Borin, a Partner at DeCotiis and a member of the firm’s Executive Committee. “I hope we can replicate this project elsewhere in order to bring new affordable housing options to the State’s residents. The leadership of the Borough and of the Red Bank Affordable Housing Corp. should be commended for their commitment to this project and their tireless efforts to see the project through.”

The project consists entirely of two and three bedroom units to be constructed in two phases. All of the units will be owner-occupied by affordable households, as defined by the Fair Housing Act and the COAH regulations. The first phase of the project should be ready for occupancy in the Spring of 2011, with the second phase being completed shortly thereafter.

Please join DeCotiis, FitzPatrick & Cole in congratulating Frank Borin, Maurice Stone and Amy Shotmeyer for their exemplary work with the Red Bank Affordable Housing Corporation.

When the Decotiis law firm speaks of working with consultants to obtain government grant money you have to wonder who they worked with. What I do know is that the Decotiis firm has crossed paths with the people involved in the following article and that they had not been arrested at the time Red Bank Affordable Housing Corp was  established. This article also mentions an investigation into the Paramus Affordable Housing Corp in which William Katchen is involved as well as being involved in the Red Bank Affordable Housing  Corp. Chances are  that this explains why Bergen County Democrats were involved in the creation and operation of the Red Bank Affordable Housing  Corp.

Bergen County Democratic Organization Chairman Joseph Ferriero indicted

• Written By: News Media
• 9-9-2008
• Categorized in: Bribes, Payoffs, and Politics, Government, U.S. Attorney  District of New Jersey

Bergen County Democratic Organization Chairman Joseph Ferriero Feds say Ferriero bragged of influence

Tuesday, September 9, 2008

Federal authorities indicted Bergen County Democratic Organization Chairman Joseph Ferriero and the party’s chief counsel, Dennis Oury, today.

A federal grand jury returned an eight-count indictment accusing Ferriero and Oury, who was fired as the Bergenfield borough attorney in January, of conspiracy to commit fraud against the borough and mail fraud.

“I am done being surprised in this job,” U.S. Attorney Christopher J. Christie said. “We’ve had these conversations before about others we’ve prosecuted … for some reason, greed and power seem to corrupt them and overcome what otherwise might be good sense and good decision-making.”

The indictment charges that in December 2001, Ferriero and Oury conceived of a plan to form a company called Government Grants Consulting LLC that would be paid by Bergen County towns to assist them in obtaining state and local grant monies. According to the indictment, Ferriero indicated that Government Grants would be successful because he could use his “influence” to help the municipalities “get a better result.”

Federal investigators began issuing subpoenas for records related to Oury, Ferriero and Governmental Grants Consulting in May. Since then, they have executed more than 30 subpoenas in North Jersey, and in August, conducted searches of both Oury and Ferriero’s respective law offices.

Ferriero’s troubles were compounded last week following allegations of sexual misconduct. According to a law enforcement source close to the case, a formal charge has not been filed against Ferriero and he has not been taken into custody.

A clerk in the criminal records division of Bergen County Superior Court said that a docket number had been created and that “a sexual charge” was pending against Ferriero. The case has been transferred to the Hudson County Prosecutor’s Office from Bergen County.

Since the allegation became public last week, Ferriero has announced that he would be taking leaves of absence from three different posts: as chairman of the county’s Democratic Party, in his role as a lawyer at Scarinci Hollenbeck and as chief counsel for the Passaic Valley Sewerage Commissioners.

Ferriero and Oury both provided start-up money for Governmental Grants Consulting, according to David Spatz, the president of the now-defunct firm. Leonard Kaiser, the chairman of the Bergen County Utilities Authority, also had a financial interest in the firm.

According to the indictment, Oury was appointed to serve as the borough attorney at a January 1, 2002, Bergenfield borough council reorganization meeting. While GGC was still in the planning stages and had yet to be formally organized, Bergenfield retained it to serve as its grants consultant and agreed to pay a $6,000 retainer fee, plus an additional fee calculated as a percentage of any grants or loans received. Oury never disclosed his ownership interest in GGC, according to the indictment. Despite this, Oury went on to exercise his official power to further a grant-aided real estate purchase – all as Oury and Ferriero stood to gain personally from their ownership interests in GGC.

Ferriero is widely credited with injecting new life into the Bergen County Democratic Party and making it the dominant force it is today. He became the party chairman in 1998 after Oury dropped out of contention. Since then, his talent for fundraising has made him one of the state’s most powerful Democrats.

Oury also wields a great deal of power in North Jersey Democratic circles. He is counsel for the Bergen County Improvement Authority and has held jobs in several towns, including Ridgefield and Bergenfield, both of which employed Governmental Grants Consulting.

January 2003 billing records from Bergenfield show that Oury charged the borough $135 for a telephone conference involving Spatz. If accurate, Oury was billing the borough for dealing with a firm in which he had an undisclosed financial interest.

Oury’s financial disclosure forms submitted to Bergenfield, New Milford, Paramus, Edgewater, Fort Lee and the Fairview Board of Education never mentioned his financial stake in the firm. And officials from Garfield and Ridgefield said Oury never filed disclosure forms, despite working in those towns.

In Bergen County, Oury’s public work generated $760,000 to $1.1 million in annual income for his law firm in each of the three previous calendar years.

Oury has given at least $105,000 to Democratic candidates since 1999, most of it going to the Bergen County Democratic Organization.

Bergen County municipalities paid the firm 10 percent of the first $1 million in grant money it obtained for them, plus a retainer in some cases, according to contracts obtained by The Record.

Ferriero, Oury and GGC are not the only ones to attract interest at the U.S. Attorney’s Office. In recent months, Christie has also issued subpoenas seeking information about the Paramus Affordable Housing Corporation and SVC Consulting, a company established by Ferriero.

State Sen. Loretta Weinberg, D-Teaneck, has been one of Ferriero’s most vocal critics. She described news of the indictment as a hardship for the Democratic Party.

“This is not a happy day for the Bergen Democrats,” she said. “My goal is to make sure we remain united &hellip we can’t let this interfere with that.”

Bergenfield Mayor Timothy Driscoll was instrumental in having Oury ousted in January.

“It’s been a long time coming,” he said Driscoll.

Here is an article that explains that Red Bank Housing Authority would oversee the construction which was not true. The Red Bank Affordable Housing Corporation was the developer. Here is an article whereby Mayor Ed McKenna states that acquiring the Cedar Crossings property is a “Sterling Opportunity”. He never disclosed that he would create an affordable housing corporation only months after pushing to acquire the land. After the town received the NJ Grant money for acquiring the land, the town then gifted the land to Red Bank Affordable Housing Corp. The gift was in the neighborhood of 2.5 million. Red Bank Affordable Housing Corp will eventually earn hundred’s of thousands of dollars when the project is finished.

Here is a NJ Investigative Report related to land development in  Chesterfield NJ.

In New Jersey, public officials who exercise their official influence over matters in which they have a conflict of interest commit a crime when they do so with a purpose to benefit themselves or others.

The OSC investigation confirmed that Durr used his official influence and unique position as a government official to gain benefit from the land use program he helped implement in Chesterfield, known as a Transfer of Development Rights (TDR) program. That program, which balances farmland preservation with controlled development, won national recognition and paved the way for legislation authorizing TDR programs statewide. It is vital for the future credibility of TDR as a land use strategy that those responsible for its administration not use their privileged position for personal advantage.

Here are some regulations related to government officials in NJ as well as the code of ethics.

5 II. GENERAL STANDARDS OF CONDUCT

It is essential that the conduct of public officials and employees shall hold the respect and confidence of the people. Public officials must, therefore, avoid conduct that is in violation of their public trust or that creates a justifiable impression among the public that such trust is being violated. Accordingly, State officers and employees and special State officers and employees shall conform their conduct to the following standards.

1. No State officer or employee or special State officer or employee should have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity, which is in substantial conflict with the proper discharge of his/her duties in the public interest.

2. No State officer or employee or special State officer or employee should engage in any particular business, profession, trade or occupation which is subject to licensing or regulation by a specific agency of State Government without promptly filing notice of such activity with the Commission.

3. No State officer or employee or special State officer or employee should act in his/her official capacity in any matter wherein he/she has a direct or indirect personal financial interest that might reasonably be expected to impair his/her objectivity or independence of judgment.

4. No State officer or employee or special State officer or employee should knowingly act in any way that might reasonably be expected to create an impression or suspicion among the public having knowledge of his/her acts that he/she may be engaged in conduct violative of his trust as a State officer or employee or special State officer or employee.

It would seem to me that at the very least Mayor Ed McKenna should have disclosed his relationships to the non-profits receiving million dollar plus properties owned by the Borough of Red Bank. I would also think in all fairness to other charities and non-profits that other organizations should have had an opportunity to bid or demonstrate their ability to operate the projects. Both of Ed McKenna’s organizations were start ups and in the case of the Kid’s Bridge organization had to close shortly after being formed due to a lack of funding. Maybe one day someone will decide whether these transactions met the criteria of public trust or not.

Penalties for violating the public’s trust

No state officer, employee, or member of the Legislature shall:-Representation, appearance or negotiation, directly or indirectly, for acquisition or sale of property by state-Representation of state agency in transaction involving pecuniary interest-Disclosure or use for personal gain of information not available to public-Solicitation, receipt or agreement to receive thing of value for service related to official duties

(penalties found§52-13D-21(i))EC §52:13D-15EC §52:13D-20EC §52:13D-25EC §52:13D-24

$500 – $10,000; suspension from office for 1 year; if decided to be willful and continuous disregard of the code of ethics, may be removed from office and may further bar from holding any public office in the State for a 5 year period

Ed McKenna arrested after Parkway Crash

Ed McKenna, former Red Bank Mayor and current Cedar Crossings Developer,recently had his third publicized car accident. Unlike previous incidents, this one resulted in an arrest with a court date scheduled in June. Ironically, he was arrested by State Troopers from Holmdel who many years ago tried unsuccessfully to interview him regarding a possible hit and run accident that occurred on the Parkway. The recent accident accuses him of drunk driving as well as driving in the wrong direction on the Parkway.