Because of continued corruption investigations by U.S. Attorney Christopher Christie, the Hudson County Board of Freeholders will hold back on passing a resolution that would seek restitution from people recently convicted of crimes connected with county business.
“We were asked not to pursue this until the U.S. Attorney concluded his investigations,” said Freeholder Bill O’Dea last week.
The resolution would retain the legal firm of Schwartz, Simon, Edelstein, Celso & Kessler of Florham Park to seek legal recourse against certain former public officials and vendors doing business with the county, to recover funds that may have been ill-gotten as result of crimes committed.
The firm already has conducted a year-long investigation of possible targets. They were hired a year ago to do so after discussion about it in closed session.
“As a result of the events surrounding the criminal conduct engaged in by former County Executive Robert Janiszewski, the county has been damaged,” reads a resolution fact sheet, “pursuant to both state and federal law, remedies exist for the county to pursue claims against those who engaged in the criminality, and who profited from it.”
The U.S. Attorney’s office has been conducting an investigation into corruption and bribery involving former Hudson County Executive Robert Janiszewski and vendors doing business with him. In 2000, Janiszewski became an informant and helped investigators catch vendors allegedly doing corrupt business with him.
The report submitted to the county by the law firm went on to say that possibly unrelated federal investigations of the county’s records department has also caused damage to the county and that the legal firm would seek to explore ways to recover damages from those targeted from that investigation as well. In August, federal authorities began an investigation over possible identity theft, allegedly involving one or more employees at the County Clerk’s office.
The freeholder resolution is slated to be passed once the county gets the go-ahead from the U.S. Attorney’s office. The firm would seek out all possible remedies including possible recovery from bonds that might cover the performance of public officials. The firm would also seek to file individual lawsuits against individuals and entities that “participated in and benefited from criminal conduct and improper acts.” The resolution would also authorize the legal firm to pursue avenues that include disqualifying firms from county business that were involved with the criminal acts.
This new resolution was the result of an investigation conducted by the legal firm during a period covered under a prior contract.
The report
Attorney Stephen J. Edelstein wrote in the Aug. 4, 2004 report to the county that his firm’s investigation used materials compiled from a variety of sources included Janiszewski’s testimony from the criminal trial of Freeholder Nidia Davila Colon, information filed by the U.S. Attorney’s office against Janiszewski, Janiszewski’s plea agreement, and the Janiszewski plea application. He also consulted the legal documents of political consultant Paul J. Byrne and developer Joseph Barry, both of whom have pleaded guilty to crimes, as well as: various correspondence and subpoenas reflecting ongoing investigation by the State Commission of Investigation (SCI) of Janiszewski-related activities, and various news articles concerning Freeholder William Braker, Hoboken Accountant Gerald Lisa, and a Jersey City Reporter article detailing Janiszewski’s amassing of campaign contributions while operating as a federal informant.
In 2003, the Reporter unveiled election records that showed that Janiszewski had collected funds into a personal election account while acting as a cooperating agent to snare other possible corrupt officials. During the final days prior to his resignation as county executive, he apparently paid his wife, Beth Janiszewski, out of this account as well as out of the regular Democratic fundraising account. He also transferred a personal account to his wife’s control.
In detailing those the county may seek to sue, Edelstein named Lisa, Janiszewski, Barry, Braker, Byrne, and others as possible targets. This includes possible suits against former county psychiatrist Oscar Sandoval – who has admitted to illegal activity but was never charged, and Colon, who was convicted in 2003 of carrying bribes from Sandoval to Janiszewski.
Names we haven’t heard
The report also listed other possible targets of suits who, while not yet charged with crimes, had been named by Janiszewski in court as taking or giving bribes. The report also named people who were “alleged or suspected” of fraudulent conduct, although some were not identified by Janiszewski. Some of these are apparently still under investigation by the U.S. Attorney’s office. They include people involved with state agencies involved with Hudson County, consulting firms, and participants in the privatization of the county’s geriatric facilities in the 1990s.
Also named as possible targets for the county’s investigation are current and former state officials.
“We are in the process of simultaneously pursuing two separate courses of action on the county’s behalf,” Edelstein said in his confidential report to County Counsel Donato J. Battista. “We have recently submitted claims under known fidelity bonds securing Janiszewski’s faithful performance during the period of January 1988 through September 2001. We are contemplating and have discussed with you the filing of civil action against all county vendors, service providers and others doing business with the county that have benefited from or otherwise participated in the Janiszewski misconduct.”
Edelstein report stated that the county had “viable claims” under the office bonds in connection with Janiszewski’s service, and an additional bond issued in September 2000 which provided for Janiszewski’s “faithful performance of duties in office.”
“We believe that Janiszewski’s admitted acceptance of bribes is likely sufficient to satisfied the stated condition of the bond,” Edelstein said in the report.
In addition, the county has other legal options including civil suits filed under the New Jersey Racketeer Influence and Corrupt Organization (RICO) act.
Some people, Edelstein reported, may face liability a result of their roles in “aiding and abetting and/or conspiring with Janiszewski to commit the various acts.”