Entries in John Eskilson (14)

Thursday
May122016

Gray-Gorman website praises solar scam

Yesterday we lauded the first mailer sent out by the Freeholder campaign of David Gray and Kathleen Gorman.  We sincerely thought that their first piece of mailed campaign literature was well done.

Within an hour of our post praising their mailer, the Gray-Gorman camp sent out an email blast in which they lied by claiming to be Watchdog.  And for perhaps the tenth time, they used a false Pennsylvania address in an attempt to place the blame for their attacks on the shoulders of Senator Steve Oroho, who employs a consultant from the same town and state.

David Gray is a lawyer.  Gray is an officer of the Court and a candidate for public office.  We asked if this kind of false misrepresentation was really allowed by the New Jersey Bar Association and it was suggested to us that we file an ethics complaint.  Actually, we feel kind of sorry for David Gray.  Why does he need to lie and claim to be someone else? 

The Gray-Gorman email attacks Gail Phoebus and George Graham for refusing to support the bailout of the solar scam last year.  You remember that scam, don't you?  In February of last year, the Sparta Independent reported on the solar scam and asked these questions:

How did a solar power company that had only been in business for two years get loan guarantees of nearly $90 million from Sussex, Morris and Somerset counties?

And why would Sussex County, with a budget of about $100 million, put at risk $27.7 million through bond guarantees for a private company?

Sussex County Administrator John Eskilson says Sussex County is potentially facing $26 million in losses after SunLight General Capital, a solarpower energy company, was unable to pay back most of the $27.7 million in bonds the county took out for them through debt issued by the Morris County Municipal Authority.

The solar bailout that Gail Phoebus and George Graham voted against took another $10 million -- all of the "rainy day" money the county had put aside from the sale of the county's nursing home plus $3 million more -- and threw it at the failed solar project.  The three Freeholders who voted for the bailout -- Richard Vohden, Phil Crabb, and Dennis Mudrick -- are big supporters of Gray-Gorman and held a big fundraising event to fund the Gray-Gorman effort.

Now you might be asking why are Gray-Gorman attacking Gail Phoebus, who was elected to the state Assembly and isn't even a Freeholder anymore.  Gail Phoebus isn't even on the ballot this year, so why would Gray-Gorman waste the effort? 

Well, it is very clear that the Gray-Gorman campaign is being directed by the solar lobby and the vendors and lawyers responsible for the scam in the first place.  They will never forgive Mrs. Phoebus for standing up to them.  In the words of one solar watcher:  "They want her dead." 

Remember the Solar Proposal Evaluation Team that wrote the 2011 document used to sell the solar deal to the Sussex County Freeholders?  The Gray-Gorman email praised the members of this corrupt or incompetent team and criticized those who held them accountable.

Birdsall Services Group was a big part of the Solar Proposal Evaluation Team and the Group pleaded guilty in 2013, was fined $1 million and its assets sold in bankruptcy proceedings.  Birdsall's top executive recently got a prison sentence of 4 years, while another executive pleaded guilty late last month.  The Asbury Park Press reported:

BIRDSALL GOES TO PRISON FOR CORRUPTION

Toms River - Howard Birdsall, the former head of one of New Jersey's oldest and most prestigious engineering firms, was sentenced to four years in prison Friday in the pay-to-play corruption case that brought about the demise of the company that bore his family's name.

...Birdsall and six other of the firm's executives, as well as the firm itself, were indicted in 2013 on charges that they masked corporate campaign contributions as individual political donations in order to skirt the state's pay-to-play laws and get contracts it otherwise would have been disqualified from.

The evaluation team was put together by then County Administrator John Eskilson.  In 2015, Freeholders Richard Vohden, Phil Crabb, and Dennis Mudrick supported the bailout of the failed solar scheme.  These same freeholders later rewarded Eskilson with a position as a Trustee with the Sussex County Community College. 

Why are Gray-Gorman plainly aligning themselves with the solar scammers who raped Sussex County taxpayers for upwards of $40 million?  It is all about killing the county's investigation to put together a lawsuit to get our money back.  If the scammers can keep the money and plea bargain their way into paying a fine to resolve the criminal investigations, then they will come out ahead.

That's how these things often work out.  The fine is just a cost of doing business.  United States Senator Elizabeth Warren complained bitterly when HSBC Bank was caught laundering nearly a billion dollars in drug cartel money and ended up paying a fine with no prosecution.  Here is the Senator at a hearing discussing this subject:

Tuesday
May032016

Another vendor linked to solar pleads guilty

The Star-Ledger reported yesterday that another one-time executive from the now defunct Birdsall Services Group admitted his role in funneling more than a million dollars to politicians in exchange for contracts and favors -- all this in direct violation of the state's ban on pay-to-play schemes.  Reporter S.P. Sullivan wrote:

A top executive of the politically connected engineering firm toppled by an investigation into illegal campaign contributions admitted Monday to his role in the scheme, authorities said.

Former Birdsall Services Group senior vice president William Birdsall, 67, pleaded guilty to a single charge of third-degree misconduct by a corporate official in front of Superior Court Judge James Den Uyl in Ocean County.

Birdsall, of Manchester, is the brother of the firm's former CEO Howard Birdsall, who received a four-year sentence for the scheme last month.

The Monmouth County firm folded in 2013 after investigators found the Birdsalls and their employees were reimbursed by the company for donations they made individually to New Jersey politicians, in violation of the state's pay-to-play laws.

The Star-Ledger has obtained documents that meticulously outline how one politically connected firm parlayed campaign donations into millions of dollars in government contracts. It's the ultimate pay-to-play handbook — and we're naming names.

Under a plea deal, William Birdsall is banned from bidding on public contracts in the state and prosecutors will recommend he serve a 270-day sentence in county jail. He also paid the state the $129,115 he illegally donated on behalf of the firm, along with a $75,000 public corruption profiteering penalty, according to the state Attorney General's Office.

William Birdsall is scheduled to be sentenced on July 11.

The Birdsall Services Group was at the center of the Sussex solar scam that has cost county taxpayers upwards of $38 million.  Two of its members were part of the Solar Proposal Evaluation Team that wrote the 2011 document used to sell the solar deal to the Sussex County Freeholders. The evaluation team was put together by John Eskilson.  In 2015, Freeholders Richard Vohden, Phil Crabb, and Dennis Mudrick supported the bailout of the failed solar scheme.  These same freeholders later rewarded Eskilson with a position as a trustee with the Sussex County Community College.

Friday
Apr222016

Solar scam's Birdsall sentenced to 4 years

The 2011 document used to sell the solar deal to the Sussex County Freeholders was called the Solar Proposal Evaluation Report. It was the work of a committee that was formed to sell the solar scheme -- the Sussex County Evaluation Team Here are the members of the team:

- John Eskilson Sussex County Administrator

- Dennis McConnell, Sussex County Attorney

- Bernard Re, Sussex County Treasurer

- Steve Pearlman, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Deb Verderame, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Gerry Genna, Birdsall Services Group

- Tom Brys, Birdsall Services Group

- Douglas Bacher, NW Financial Group

- Heather Litzebauer, NW Financial Group

- Steven Gabel, Gabel Associates

- Richard Preiss, Gabel Associates

- Cadence Bowden, Gabel Associates

The evaluation team was put together by John Eskilson.  Two Birdsall cronies were on the team.  Freeholder Richard Vohden, Phil Crabb, and Dennis Mudrick supported the bailout of the failed solar scheme.  These same freeholders later rewarded Eskilson with a position as a trustee with the Sussex County Community College. 

The Asbury Park Press reported today:

BIRDSALL GOES TO PRISON FOR CORRUPTION

Toms River - Howard Birdsall, the former head of one of New Jersey's oldest and most prestigious engineering firms, was sentenced to four years in prison Friday in the pay-to-play corruption case that brought about the demise of the company that bore his family's name.

...Birdsall and six other of the firm's executives, as well as the firm itself, were indicted in 2013 on charges that they masked corporate campaign contributions as individual political donations in order to skirt the state's pay-to-play laws and get contracts it otherwise would have been disqualified from.

...Eatontown-based Birdsall Services Group pleaded guilty in the case in 2013, was fined $1 million and its assets sold in bankruptcy proceedings.

In other news from today...

Be careful with filling out those ethics disclosures. 

Lawrence Durr – longtime committeeman, mayor and planning board member in Chesterfield Township – pleaded guilty to a criminal charge that he filed fraudulent ethics disclosure forms that failed to disclose his financial relationship to a developer.  A state investigation revealed that Durr used his official positions to advance the developer’s plan to build a major residential and commercial project at a site in the township.

PolitickerNJ wrote:  "Never go anywhere in New Jersey and assess that the place might be different from any other familiar underbelly. . . Underneath the slick veneer of social respectability they actually occupy just one more den of inequity, or if you prefer the words of Obi Wan Kenobi, another 'wretched hive of scum and villainy'."

And the beat goes on...

Thursday
Apr212016

This 2008 report warned against solar

The 2011 document used to sell the solar deal to the Sussex County Freeholders was called the Solar Proposal Evaluation Report. It was the work of a committee that was formed to sell the solar scheme -- the Sussex County Evaluation Team Here are the members of the team:

- John Eskilson Sussex County Administrator

- Dennis McConnell, Sussex County Attorney

- Bernard Re, Sussex County Treasurer

- Steve Pearlman, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Deb Verderame, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Gerry Genna, Birdsall Services Group

- Tom Brys, Birdsall Services Group

- Douglas Bacher, NW Financial Group

- Heather Litzebauer, NW Financial Group

- Steven Gabel, Gabel Associates

- Richard Preiss, Gabel Associates

- Cadence Bowden, Gabel Associates

The evaluation team was put together by John Eskilson.  At the time, the Birdsall Services Group was under scrutiny by state law enforcement authorities for circumventing pay-to-play laws in order to funnel a million dollars in campaign contributions to political players.  But this is a minor detail compared with the BIG deal missed by Eskilson when he was assembling the committee that sold solar to the Freeholder Board.

By simply searching the Internet -- a simple GOOGLE search would have done it -- Eskilson would have known that Inglesino, Pearlman, Wyciskala & Taylor attorney Steve Pearlman was a central figure in the Encap scandal a decade earlier.  Like the Sussex solar scandal, EnCap used government grant money to secure bond financing for private development.  It too was built around an under-funded, inexperienced private corporation that quickly went bust.  And, like solar, the lawyers, vendors, and consultants kept getting fat off the taxpayers throughout the process.

EnCap ended up costing taxpayers, several indictments were handed down, the lawyer who worked with Pearlman died before he could be brought to trial, and the founder of EnCap pleaded guilty in federal court.

The warning that the county professionals should have placed under the Sussex Freeholders' noses, and  that the Freeholders should have heeded, was contained in a detailed 277-page report which was the culmination of an investigation conducted by the state Inspector General.  It was published in February 2008 -- years before the Freeholders voted for solar in 2011.

The report can easily be found on the Internet, using a simple GOOGLE search:

http://nj.gov/comptroller/news/oig/pdf/Meadowlands%20Remediation%20and%20Redevelopment%20Project.pdf

The report discusses the mismanagement of the project by the private corporation, how assurances were given and government backing obtained, the creation of the "economic development authority" for the purposes of borrowing, problems with insufficient collateral, "material omission" by EnCap, corporate misfeasance, cost overruns, and requests for payment of ineligible expenses.  It tracks many of the allegations raised in the case of  MasTec v. SunLight that is at the heart of the Sussex solar debacle.  MasTec, the contractor for the project, sued SunLight, the project's private corporation, after SunLight could no longer pay MasTec.  Here are some of MasTec's allegations against SunLight:

- That the SunLight Entities "have drawn on the Public Bond Funds and diverted such funds for non-trust purposes in violation of the New Jersey Trust Fund Statute."

- That the SunLight Entities have admitted that "millions of dollars of Public Bond Funds" have been used to "make lease payments" and to "fund the SunLight Entities' required contributions under the Program Documents, and to pay the 'soft' costs (including attorneys' fees) of the Authorities and the SunLight Entities."

- That "the SunLight Entities owe Power Partners millions of dollars as a direct beneficiary under the New Jersey Trust Fund Statute and there are no longer sufficient funds in the Public Bond Funds to pay Power Partners and to complete the projects."

- That the SunLight Entities "participated in an additional scheme to draw down over $6.3 million in Public Bond Funds and misdirected more than $2.7 million of such funds for non-trust purposes."

- That SunLight General Capital and its subsidiaries were formed "with virtually no assets, such that they were undercapitalized at the time of formation."

- That those who controlled the SunLight Entities treated corporate assets as "their personal piggy banks, repeatedly transferring assets from one entity to the next for the purpose of ensuring that there would be insufficient assets in each entity to satisfy its obligations to Power Partners."

- That "the corporate form of the SunLight Entities was used to commit conversion, make fraudulent transfers, and other improper acts."

Why didn't  county professionals alert the Freeholder Board to this report?  Why wasn't it read?  And if the county professionals did read it, why did they include a central figure from the EnCap scandal as a member of the Sussex County Evaluation Team -- the very committee that wrote the Solar Proposal Evaluation Report that assured Freeholders the solar project was a safe investment?

We urge you to read the report, as well as these related documents:

http://nj.gov/comptroller/news/oig/pdf/Report%20on%20Meadowlands.pdf

http://nj.gov/comptroller/news/oig/pdf/OIG_2008_Annual_Report.pdf

Friday
Feb192016

Solar scam's Birdsall pleads GUILTY

The 2011 document used to sell the solar deal to the Sussex County Freeholders was called the Solar Proposal Evaluation Report. It was the work of a committee that was formed to sell the solar scheme -- the Sussex County Evaluation Team Here are the members of the team:

- John Eskilson Sussex County Administrator

- Dennis McConnell, Sussex County Attorney

- Bernard Re, Sussex County Treasurer

- Steve Pearlman, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Deb Verderame, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Gerry Genna, Birdsall Services Group

- Tom Brys, Birdsall Services Group

- Douglas Bacher, NW Financial Group

- Heather Litzebauer, NW Financial Group

- Steven Gabel, Gabel Associates

- Richard Preiss, Gabel Associates

- Cadence Bowden, Gabel Associates

The evaluation team was put together by John Eskilson.  Two Birdsall cronies were on the team.  Eskilson later got rewarded with a position as a trustee with the Sussex County Community College.  The Freeholders who voted for that were Phil Crabb, Richard Vohden, and Dennis Mudrick.

Yesterday, Birdsall's CEO pleaded guilty to criminal political corruption.  We'll let Star-Ledger reporter S. P. Sullivan take it from here:

Birdsall CEO pleads guilty in huge N.J. pay-to-play scheme

The former CEO of what was one of the state's most politically connected engineering firms is facing four years in state prison after admitting to his role in a $1 million scheme to circumvent New Jersey's pay-to-play laws.

Howard Birdsall, 72, pleaded guilty Thursday to corporate misconduct in Superior Court in Ocean County, according to the state Attorney General's Office.

Birdsall, of Brielle, was the top corporate officer and largest shareholder of Birdsall Services Group, the now-defunct Monmouth County firm that folded after investigators found executives and employees were reimbursed by the company for campaign donations to politicians. 

Under a plea deal, Howard Birdsall faces the prison time and will pay $49,808 — the total amount of political donations he personally made in the scheme. Acting Attorney General John Hoffman said in a statement Thursday that Birdsall's plea "should serve as a warning to any corporate officials who would engage in this type of criminal scheme."

Birdsall's attorney, John P. McDonald, declined to comment.

Birdsall exec pleads guilty in pay-to-play scheme

In 2013, the company pleaded guilty to first-degree money laundering and second-degree making false representations for government contracts, crimes for which it paid a $1 million fine. It was later sold to a California firm that pledged not to make political contributions in New Jersey.

Company records obtained by The Star-Ledger that year showed that hundreds of politicians, from mayors and freeholders to major state power brokers, received money from the firm. Those donations came in the form of personal checks from shareholders and firm employees, who were reimbursed through bonus payments and other means, authorities said. 

Three other former Birdsall employees — chief administrative officer Scott MacFadden, of Brick, marketing director Philip Angarone, of Hamilton, and Eileen Kufahl, of Bradley Beach, previously pleaded guilty to participating in the scheme and are awaiting sentencing, authorities said.

A former executive vice president at the firm, Thomas Rospos, of Belmar, is scheduled to go on trial on Feb. 22.