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.

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
__________________
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

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

What Will Red Bank Affordable Housing do with the Profit?

According to the 2011 990 tax filing required by non-profit organizations, the Red Bank Affordable Housing Corporation has retained a profit of over $416,000 from phase 1 of the Cedar Crossing Development. Upon the completion of phase 2 the project should generate a total profit of approximately $800,000. The project was started with the purchase using “free” taxpayer money to aquire the land. Ed McKenna while Mayor of Red Bank pushed the Borough Council to approve this purchase using tax money from the State of NJ. Since non-profit organizations cannot make a profit, it would be a nice gesture on the part of Red Bank Affordable Housing Corporation to donate all profits on the project to the Borough of Red Bank and it would help reduce the property taxes for everyone in the town.

Lie with Dogs, Get Fleas

According to a post on the Monmouth County Republican blog, early in Ed McKenna’s career he was not a Democrat and was not happy to have John Curley  switch Parties as well.  

Ed McKenna, as Mayor, yelled at Jennifer Beck when she gave residents an opportunity to raise issues they had with the zoning board during the BLT hearings.

Here is an article from the Asbury Park Press covering the controversy of the Cedar Crossings development

Red Bank council holds off on $2.4 million land deal
Posted by the Asbury Park Press on 10/2/06
BY LARRY HIGGS
COASTAL MONMOUTH BUREAU

RED BANK — The borough’s proposal to explore buying a nearly 2-acre tract to use for affordable housing has been put off — for now — amid questions over its price, possible conflicts of interest and other issues.

Borough Attorney Kenneth Pringle is to examine the issues raised by residents and some council members after the Borough Council delayed a vote to authorize experts to begin the purchase process of the 1.93-acre Cedar Crossings site between Cedar and Catherine streets. The council was to have voted at its Sept. 25 meeting.

“I know it’s a tough time to make a decision with the politics in town,” said Ben Forest of Locust Avenue, referring to the upcoming mayoral election. “But it’s too important a decision to let that contaminate the process.”

Forest told the council last week that he favored waiting two weeks for Pringle’s advice on conflict of interest.

“Let’s make sure it’s done right, and it will turn out terrific,” said Forest, who also is a borough Board of Education member.

Questions about the site have focused on the cost, environmental issues, its viability and whether Councilman Robert J. Bifani has a conflict of interest on the project. Bifani abstained from last week’s vote to delay authorizing the land purchase.

“I’m not crazy about sticking affordable housing in a light-industrial area,” said Steven Fitzpatrick of Chestnut Street.

Fitzpatrick, who’s been dubbed “the ethics police” by some officials, regularly researches contributions make by developers, land owners and their professionals to local campaigns and political action committees. In researching the Cedar Crossings tract, he determined that Bifani, a vice president of Mid-State Solar Distributors, has a conflict because the company is next door to the tract and its value could rise if Cedar Crossings is built.

APPLICATION ON HOLD

The Cedar Crossings site lies behind three residential streets and has a railroad line and industrial and commercial properties nearby. The current owners’ application calls for a 36-unit townhouse development and is before the borough Zoning Board of Adjustment. However, it’s been put on hold by the applicant, Cedar Crossings at Red Bank LLC, pending negotiations to sell the site to the borough.

Borough officials have applied for a $2.4 million state grant to buy the property, and if that grant is approved, the land would be turned over to the Red Bank Housing Authority for construction. The purchase would include not only the land but the townhouse design work and blueprints.

Mayor Edward J. McKenna Jr. said the proposal represents a rare chance to buy one of the town’s few vacant pieces of land with state funds and build affordable housing, which could satisfy about half of the 74 units the state says the borough is obligated to provide.

“This is effectively a gift of $2.4 million to develop affordable housing,” McKenna said at last week’s council meeting. “It would be unwise to take a pass on this property.”

Bifani declined to comment on the conflict of interest and land ownership issue, on the advice of his attorney.

“My attorney said I shouldn’t talk about it,” Bifani said in an interview Tuesday. “I abstained from voting on it.”

The Cedar Crossings tract was assembled through the purchase of four pieces of vacant land, including one owned by Mid-State Solar. That parcel was bought for $52,500 in January 2002, according to an appraisal done for the borough by Gagliano Appraisal LLC of Shrewsbury in June.

A 2ND TOWNHOUSE PLAN

Fitzpatrick pointed out that the attorney representing Cedar Crossings, Martin A. McGann Jr. of Middletown, also represents another nearby development application by Matrix LLC on Bridge Avenue. In that application, Matrix proposes to buy the Mid-State building and build townhouses.

The zoning board put off the Matrix application last week to sort out a conflict-of-interest issue between McGann and Board Attorney Kevin Kennedy, who is McGann’s tenant.

“If they approve the affordable housing property, it will affect the value of Bifani’s property,” Fitzpatrick said.

At the council meeting, McKenna was dismissive of Fitzpatrick’s findings that contributions were made to county political action committees by principals of Cedar Crossings at Red Bank LLC. The principals are Robert L. Nicholson of Shrewsbury, Joseph A. Campanella Jr. of Little Falls, and Riverside Capital Management LLC, which is made up of Peter Shapiro, Kathleen Anderson and Ted A. Smith, all of Shrewsbury, according to zoning board files.

Fitzpatrick got the information, which he read at last week’s meeting, by researching reports filed with the state Election Law Enforcement Commission. A review of information on that Web site showed that Integrated Development Concepts LLC, which was later renamed Cedar Crossings, donated $250 to the Monmouth County Council of Democratic Leaders in 2003. It also showed a $500 donation from Robert Nicholson to the same group.

But Councilman Arthur Murphy III said during the meeting that there is no way to tell if that money was earmarked for Red Bank candidates or not.

“You think that because someone gave someone 500 bucks, that’s going to influence anyone up here?” McKenna asked Fitzpatrick at the meeting.

OTHER CONCERNS RAISED

The property’s environmental issues may be wrapped up pending one more soil and water test. Meanwhile, the borough engineer’s review of the plans raised design concerns.

Depending on what is found, the price could vary from the $2.45 million, which some officials said is too high.

“I’d like to see a delay so we can get more information, and we can see that this is a clean, honest deal benefiting those who need affordable housing and . . . not a rip-off of the taxpayers who provide money for the grants,” said Councilman John P. Curley, a Republican candidate for mayor.

If it passes muster, Curley said he might vote for the plan.

His Democratic opponent, council President Pasquale “Pat” Menna, supports the project and said it will anchor the area, the way converting the old River Street School into affordable housing helped 15 years ago. That was also accomplished with state funds

“That area does need continued stabilization. If we go forward, that (borough project) will be a second anchor and a boon to the community,” Menna said at the council meeting. “We should have that long-term perspective and be proactive.”

Fitzpatrick and Curley questioned the $2.4 million appraisal for the land. McKenna said the borough would also pay $50,000 for all of the developer’s engineering and design work.

“That’s a damn expensive set of blueprints,” Curley said in an interview. “We shouldn’t pay $2.45 million for a piece of ground.”

“There are a series of checks (and balances) in it (the process),” McKenna said. “The DCA has to accept the (appraisal) number. The appraiser is highly respected, and I feel confident on it.”

The property is one test away from being given a clean bill of health by the state Department of Environmental Protection. Those soil and monitoring well tests are scheduled to be done in a week, said Chris Dwyer, case manager for the state Department of Environmental Protection.

Site contamination includes metals, which had been buried on the property, and volatile organic chemicals, which leaked from a gasoline storage tank. Both the tank and contaminated soil have been removed, Dwyer said.

“They have one clean round of testing from the groundwater monitoring well by the gas tank (location),” Dwyer said. “We’re waiting for a report with post-excavation (test results) and another round of clean ground water (from a monitoring well).

If those tests are clean, the DEP will issue a “no future action required” letter, he said.

ENGINEER RAISES CONCERNS

Borough Engineer Richard Kosenski, in a report to the zoning board, questioned designs for the one-, two- and three- bedroom townhouses, noting the application would need seven variances because it doesn’t meet borough zoning standards.

Among his concerns were that the ground-floor units were smaller than the minimum 700 square feet of habitable floor area required, and that 88 percent of the units were three-bedroom units, while zoning says that number can’t exceed 50 percent.

Kosenski noted buffer areas provided between the proposed townhouses and the railroad and neighboring commercial and industrial properties are “not adequate for this site.” He pointed out the plans call for no buffer zone between industrial properties and the proposed townhouses.

The plans also call for allowing nearby industries, which use the site to gain access to loading zones, to continue that practice.

“Industrial traffic mixing with residential-use traffic is not acceptable inside the proposed development,” Kosenski wrote.

The developer would also need a density variance from the zoning board because the application calls for building more units than the 10 per acre permitted by zoning.

McKenna said the borough would build fewer than 36 townhouses on the property.

The property also would have to be examined by experts from Red Bank and the state Department of Community Affairs before a deal is finalized.

“We know the site has issues, and the contract will have contingencies. It must be environmentally clean,” McKenna said. “We will have our own engineer look it over to make sure it is fit for what we want to do.”

Red Bank’s application is under review by the Council on Affordable Housing, and the site has not been evaluated yet, said Chris Donnelly, Department of Community Affairs spokesman.

COAH doesn’t have minimum size standards for affordable units but defers to municipal building codes, Donnelly said. There are no regulations about the proximity of affordable housing sites to railroad or industrial property, but the distance and compatibility will be evaluated as part of the overall site suitability study, he said.

At another Council Meeting regarding the Cedar Crossing Project, Ed McKenna got into an argument with Councilman John Curley when questions were raised about the town overpaying for a development property in Red Bank. The people John Curley refers to as “middlemen” are affiliated with Progress Realty Advisors in Shrewsbury. They are involved in funding large development projects through out NJ and beyond. One of the people involved in the beginning is involved in municipal bonds. Another person now works at a company involved with government financing as well. It seems most of the people in the original cedar crossing llc company had involvement in government work. The company was originally known as Allied Commercial Capital based in Woodbridge, NJ. BLUE BELL, Pa., Oct. 17 /PRNewswire/ — Progress Financial Corporation (Nasdaq: PFNC) through its commercial mortgage banking subsidiary, Progress Realty Advisors, Inc., announced today that it has acquired Allied Commercial Capital, L.L.C. and Allied Asset Management, Inc. Both companies, which are based in Woodbridge, New Jersey, specialize in originating, underwriting and closing real estate financing for multi-family and commercial properties, as well as residential development financing in New Jersey and New York. Kathleen M. Anderson and Peter M. Shapiro, the principals of Allied, will be responsible for managing Progress Realty Advisors Northern Division, based in Allied’s former offices in Woodbridge Another company based out of the same office as Progress Realty Advisors is Riverside Capital Management. One of the clients of Progress Realty Advisors is River Developers who was named the redeveloper of Pleasantville. The cedar crossing property would eventually be purchased for 2.4 million using grant money for affordable housing from the State of NJ. While Mayor of the town McKenna pushed for the zoning change and purchase only to create the Red Bank Affordable Housing Corporation in early 2007 which developed the property. When it was discussed that the town should buy the property it was revealed that the Red Bank Housing Authority would develop the property which turned out not to be true. The Red Bank Housing Authority will manage the association upon completion. McKenna’s Red Bank Affordable Housing Corporation was given the property from the Borough of Red Bank for $1. Another property owned by the town, 51 Monmouth Street which is the former police station, was sold to Ed McKenna’s Kids Bridge charity for $1 and is now being sold for over 1 million dollars.  After allowing the former Mayor to create Non-Profits to acquire township land, they are now complaining there are too many non-profits not paying real estate taxes.

The Red Bank Affordable Housing Corporation has some interesting partners. William Katchen, a CPA from North Jersey had been suspended 1990 by the Federal Government regarding working with housing authorities. In 2008, he was also involved with the Paramus Affordable Housing Corporation which was subject to an FBI investigation. In 2006, Katchen held the follow public jobs and the income generated 

WILLIAM KATCHEN $175,479 Secaucus Bergen Vocational Schools internal auditor / Cliffside Park Housing Authority accountant / Edgewater Borough MUA director / Edgewater Housing Authority fee accountant / Englewood Housing Authority accountant / Garfield Housing Authority accountant

William Katchen is also involved in the Affordable Housing of Metropolitan Edgwater Inc located at 300 Undercliff Avenue in Cliffside Park, NJ He is also involved in the Neighborhood Friendship Affordable Housing Corp in Cliffside Park and appears to have charged nearly $9,000 for accounting work.

Frank Borin of the Decotiis Law Firm in North Jersey is also a member of the Red Bank Affordable Housing Corporation. Why would the headquarters of Red Bank Affordable Housing Corporation be in Cliffside Park NJ and why would these people be involved in the project? rb 10-101resolution[1]

Ed McKenna’s law firm has worked for many towns including Tinton Falls. According to an Asbury Park Press story regarding the CECOM Development  Ansell said the borough’s top administrators — including former Borough Attorney Edward J. McKenna Jr., who also is the mayor of Red Bank — knew about Abrams’ involvement with Leser.
McKenna denied it.
“Absolutely not. I knew nothing about that. I was the borough attorney, not redevelopment counsel. That was separate,” McKenna said. “I had no knowledge of his (Abrams) involvement.”
McKenna added if he’d known about Abrams’ involvement, “I would have told him to step down.” Ultimately it resulted in a lengthy legal case.

Ed McKenna ran for the Chairman of the Monmouth County Democrats in 2000 but lost to Victor Scudiery. From Congressman Pallone’s wiki page in 2000, Pallone endorsed and strongly supported incumbent Monmouth County Democratic Chairman Victor V. Scudiery over then Red Bank Mayor Edward McKenna, who had the support of Middlesex County Powerbroker/Pallone enemy John Lynch and South Jersey Powerbroker George Norcross. Scudiery was re-elected county chairman by a 2 to 1 margin.  John Lynch plead guilty to fraud in 2006 due to an FBI investigation which involved Red Bank. The investigation also involved River Street Commons an adult affordable housing project located just down the street from the Cedar Crossings Project.  John Lynch and Alfred Decotiis of the Decotiis Law Firm created a political action committee known as New Directions for Responsible Leadership. John Lynch and Jack Westlake a business partner from Red Bank were helping Cherokee in a development project as well as other developers. OENJ Cherokee is a related corporation to the Encap project that the Decotiis Law Firm represented at the meadowlands. Frank Borin of the Decotiis Law Firm would become a member of Red Bank Affordable Housing Corporation and charge fees to the non-profit organization. John Lynch had created a web of corporations in the City of New Brunswick where he was once mayor (1979-1990) and then his cousin James Cahill became mayor of the town for at least 6 terms. A lot of people came together as a result of Governor McGreevey. McGreevey was from Woodbridge and was endorsed originally by John Lynch for Governor. Michael Decotiis was chief counsel in his administration and George Norcross also endorsed McGreevey. Lynch and Norcross then wanted McGreevey out during his scandal. The Decotiis and Lynch friendship goes back decades.  It has also led to additional employment in Middlesex County for the Decotiis firm.  Their paths along with Lynch’s friend Jack Morris would cross again in Edison where a questionable appraisal resulted in milions of dollars in profit for Morris. Robert Decotiis was the head of Lynch’s New Directions in Leadership PAC at the time Lynch was under investigation. Red Bank Borough officials have also crossed paths with the Decotiis firm at the NJ Turnpike Authority. In a rather odd event in Sayreville, the Decotiis Law firm was being replaced by the McKenna firm while mayor Menna’s firm was also bidding on the job. Sayreville’s Mayor called Michael Dupont’s appointment politically motivated. Click Here to understand the various connections made during the McGreevey administration to understand how complicated the NJ political system is including John Lynch and George Norcross involvement with Commerce Bank and the Decotiis law firm. George Norcross is involved in the NJ Democratic Party in South Jersey. and was recorded making various threats.

Amboy Bank subdivides Courtyards might have Red Bank Housing Authority Manage

After having a closed door session with the Red Bank Borough Council last week to discuss a developers agreement, Amboy Bank obtained an approval to subdivide the property into 2 lots. One lot for the 12 unit affordable housing building and the other building for the 45 unit market priced building. The approval of the subdivision was voted on 7-0 by the Red Bank Zoning Board. Amboy Bank officials were asked about whether there would be 2 associations and originally they responded that they had not given it too much thought. A few minutes later they were asked  if the Red Bank Housing Authority might be one of the management companies and they said yes. Amboy Bank also acknowledged that they are no longer going to build the site which last week they claimed they would be the builder. It is now being sold to a well known county builder to be named later. As for the closed meeting last week, in NJ you can only have a closed door meeting to discuss 9 different issues. One of the issues that is covered is when the borough is using public funds to purchase private property. During the original approval process former mayor and current Rivercenter member Ed McKenna endorsed the development plans. In the past Red Bank purchased property known as the Cedar Crossings from a developer using State of NJ affordable housing grant money for 2.4 million dollars. The town then sold the property to Red Bank Affordable Housing Corporation for $1 of which Former Mayor Ed McKenna is the Vice President of the Non-Profit Corporation. Originally borough officials stated this property would be developed by the Red Bank Housing Authority. Former Red Bank Councilman and current Monmouth County Freeholder John Curley had indicated he contacted the FBI to investigate the Cedar Crossings situation.  The Cedar Crossings project upon completion will be managed by the Red Bank Housing Authority which Stan Koryva of Amboy Bank could possibly happen with the Courtyards At Monmouth project.

Amboy Bank to Subdivide Courtyard Affordable Housing

On February 16, 2012 Amboy Bank will seek approvals to subdivide their Courtyards Project on the corner of Monmouth/West/Oakland Streets. It was approved about 1 year ago for 57 condos. 45 of the condos would be market priced in one building and a second building would consist of 12 affordable units. On February 8th, 2012 Amboy Bank officials met with the Red Bank Borough Council in a closed session to discuss the development of the property and financing. Mayor Pat Menna was not present for this meeting.  According to NJ open meeting laws there are only 9 reasons that a government can have a closed meeting. One such reason would be to discuss using public funds to acquire property. According to Amboy Bank representatives they need to subdivide the property in order to obtain financing and they also plan to develop the 2 subdivided pieces  themselves.

Previously Red  Bank purchased private property know as the Cedar Crossings with 2.4 million dollars of state grant money. This property was then sold to Red Bank Affordable Housing Corporation to build 36 affordable housing units and seems to have generated several hundred thousand dollars in surplus funds. This Corporation has members that include former Mayor Ed McKenna, William Katchen a CPA who has been banned in the past by the Federal Government related to public housing funds, and Frank Borin a lawyer with the Decotiis law firm who has taken several thousand dollars in fees from Red Bank Affordable Housing Corportation for his law firm. Ed McKenna has been at several approval meetings supporting the Amboy approvals and is also a representative of the Red Bank Rivercenter. Amboy Bank was able to obtain approvals in contrast to the vision of Red Bank  Rivercenter’s plan to create street level retail along Monmouth Street between the train station and Broad Street.

Non-Profit Scam using public land for grant  money

Red Bank Affordable Housing Members

There is an interesting group of people involved with the Red Bank Affordable Housing. The members are Reverend Porter of the Pilgrim Baptist Church in Red Bank which would seem to make sense. A church located on Shrewsbury Avenue in Red Bank trying to create low-income housing and allow lower-income people to remain in the town. Other members are William Katchen from Cliffside Park in Bergen County NJ and Frank Borin of the Decotiis Law Firm in Bergen County NJ as well. There is also former Red Bank Mayor Ed McKenna as Vice President. William Katchen was suspended in the 1990 for 1 year by the Federal Government from participating in public housing due to the misappropriation of approximately 1.7 million dollars in public housing funds. The Decotiis Law Firm is a very politically connected law firm with direct access to many of New Jersey’s past governors. They also represented Encap, the largest waste of taxpayer dollars in the history of the state. Why would a local church group be involved with politically connected accountants and lawyers from North Jersey? If this was done solely for charity why would the Decotiis law firm charge the Red Bank Affordable Housing Corporation fees when they were also members of the corporation? Why did Ed McKenna as Mayor of Red Bank push for the town to acquire the property for more than fair market value as well as zoning changes only to become one of the developers? Why did Mayor Menna and Mayor McKenna claim that the Red Bank Housing Authority would develop the property when it was actually the Red Bank Affordable Housing Corporation that received the property for $1 and is a separate corporation from the town and the authority. The state taxpayers paid 2.45 million and the rationale was that the local taxpayers did not pay for it, so even if the property was over valued, it did not matter because this was “free money.” Here is an article outlining very similar parallels between Red Bank Affordable Housing Corporation and the Paramus Affordable Housing Corporation:

Another subpoena for mayor’s non-profit
Friday, August 22, 2008
Last updated: Friday August 22, 2008, EDT 10:41 PM
BY MICHAEL GARTLAND
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

It seems that William Katchen and the Decotiis Law Firm like to work on projects together:

The breakdown of sums paid to contractors for the Edgewater ferry/marina/park project through Jan. 16. In addition, the borough paid $6.1 million for the land, which was acquired through eminent domain.

Austin Helle, construction: $6,700,695

DeCotiis, Fitzpatrick, Cole & Wisler, attorneys: $450,296

Malcolm Pirnie, on-site construction manager: $439,451

Gruzen Samton, contract administrator: $207,330

Schoor DePalma, engineers: $196,045

Vollmer Associates, traffic study: $40,823

William Katchen, financial adviser: $32,381

Robert Regan, attorney: $24,142

Burgis Associates, planners: $1,498

Source: Borough of Edgewater