Stumbling from Scandal to Scandal

Three years ago, Sussex County Freeholders were asked to agree to a settlement with the creditors of the AmeriPay corporation, another too-good-to-be-true idea that was sold to the Freeholder Board.  It turned out to be part of a Ponzi scheme that according to the FBI ripped-off 14 school districts, seven houses of worship, five schools, more than 300 other private and public entities, and one county -- Sussex County.  We got done for $2.3 million of the total $10.2 million defrauded.

That scandal was uncovered in 2009, through the efforts of the FBI, the United States Attorney's Office, and the U.S. Securities and Exchange Commission.  The guilty were sent to prison and  Sussex County's settlement was reduced to $38,464.  According to today's Herald editorial, the latest scandal to rock Sussex County isn't going to turn out so well. 

It deals with a solar energy scam that was sold to the Freeholder Board by a group, including representatives of the corrupt and convicted Birdsall Services Corporation, that was led by none other than Sussex County's Administrator, John Eskilson.  It leaves Sussex County taxpayers on the hook for between $6 million and $29 million or maybe more, because the public isn't allowed to know the details, so we have to take the word of the critters who screwed us in the first place.  It's like being raped and then finding out that your rapist is also your gynecologist.

Two details of the settlement that was discussed in "executive session" were leaked to the Herald by the same county officials who are ethically bound to keep them confidential.   Of course, these officials don't know the first thing about ethics, so while they bleat like sheep about the public not having the right to know what is in the settlement they will pay millions for, they go behind the public's backs and release bits and pieces smothered in their spin.  But at least the Herald was good enough to pass it along to its readers:

Of concern are provisions in the settlement that hold the principals and their agents, officers, etc., harmless from all claims, actions, suits, etc., stemming from the beginning of the solar program.

Additionally, the documentation includes the standard non-disparagement provision stopping any negative comments against any of the involved parties.

Those provisions should not preclude a full accounting of what happened, though if wrongdoing is discovered, they may prevent holding parties accountable.

And get a load at what happened at the Somerset County Freeholder Board last night.  Rob Jennings of the Herald probably couldn't believe his ears when he heard this exercise in democracy emanate from the bowels of that all-Republican board:

Full details of the settlement were not provided at the meeting. Instead, officials passed out a 13-paragraph press release offering some details and a history of the project.

In response to a question from Bill Eames, a resident of Hanover in Morris County, the county counsel said that while the settlement would preclude Somerset from initiating a legal action, it would not prevent the county from complying with any outside investigations.

That's right, the taxpayers don't get to know what they are paying for.  "And this is what we think of you," say the GOP Freeloaders.

In answer to a question from the Tea Party's Bill Eames, they told him that "yes, the guilty -- those who screwed the taxpayers -- we signed an agreement to let them off the hook and richer for it."  That's how bailouts work, right?

Poor Freeholder Director Phil Crabb, said that he wanted to let Sussex County taxpayers know about the settlement they'll be paying for -- but then some south Jersey Democrat hired as special counsel gave him a wedgie and now Phil is too scared to stand up for the people and do the right thing.    

Phil really is going to have to learn to kick those out-of-town lawyers in the balls once in a while.  Or just give up and let someone else do it.

Freeholders Gail Phoebus and George Graham are the only reliable voices on the Board for transparency and for guarding the taxpayers' interests.  Freeholder Rich Vohden is Dr. Doom, glumly accepting anything Eskilson flushes his way, while Freeholder Dennis Mudrick seems to be somewhere else, occasionally waking to vote with the pack. 

After the last scandal, John Eskilson asked everyone on the Freeholder Board to hold hands and join him in a chorus of "Always look on the bright side of life."  Now it's a few years later and a bigger scandal, so maybe this time try what they do in the military when something goes wrong -- have a debriefing.  Take a look at what you did to screw up so you don't do it again.

Or not. . . alright then, everybody hold hands, now follow me. . .

It takes a politician to get a contract in Sussex County

In Sunday's New Jersey Herald, reporter Rob Jennings gives us another example of the network that controls how the taxpayer-financed public pie gets cut up in Sussex County.  The network is made up of politicians and former politicians, professional vendors and their PACs, corporations and business owners and it has made it almost impossible to secure anything in the way of a public contract without the say-so of the network.

Jenning's story deals with Sussex Borough's water and sewer utility and the corporation that wants to purchase it.   The corporation hired a former Republican State Senator from Southern New Jersey to be its deal maker.   According to the Herald, the former Senator, Nick Asselta, has a local face in Debra Nicholson -- a Republican lawyer and one-time candidate for selection as County Prosecutor.  The one bright spot is that whether or not Sussex Borough sells to Aqua New Jersey will be impacted by a referendum this November.

It seems like a company just can't be judged anymore based on the work it does or the product it provides.  These days companies must hire a politician to make its pitch for government to be interested.  How did we get here?  We saw it over the summer when it came out that an engineering firm had hired a Trustee of Sussex County Community College (SCCC) who later violated ethics rules by voting on a contract that involved the firm that hired him.

This past summer also saw municipalities jumping at the promise of lower energy rates offered by a third-party energy provider called the Passaic County Energy Pricing Cooperative System (PCEPCS).  PCEPCS is managed by Concord Energy Services, a division of Concord Engineering and its local face is local Republican big-wig Wendy Molner, who ran Freeholder Phil Crabb's primary effort.  While some officials in Passaic County have expressed reservations, Sussex County hasn't hesitated to sign up.  Is this why companies hire county lobbyists?

Unlike those who lobby the state government, county lobbyists are not regulated in New Jersey.  They don't fill out disclosure forms, so there is no transparency about what they earn or spend in order to sway county and local governments.

Look at the situation in Newton to see what happens when government can't think clearly for the conflicts of interest.  A large for-profit corporation had a cozy relationship with the council, hired a now former Freeholder's wife, and had a posse of county lobbyists in its corner.  It got a great tax abatement deal that wipes away its school property tax bill for decades.  Now the town is so broke it is asking non-profit organizations to pay property taxes that they are not legally obliged to pay.  So if you make money you don't have to pay, but if you are non-profit profit you do?

Ultimately, taxpayers pay twice.  First, they pay for the bad decisions made when governments are influenced by "it's who you know" county lobbyists.  Second, the actual cost of hiring the county lobbyist and what he or she spends to influence government gets passed on to property taxpayers once the contract is signed.

Why can't businesses be allowed to play it straight?  Why can't they let examples of their work speak for itself?  County and local governments should refuse to meet with county lobbyists, many of whom have no experience in or academic knowledge of the products or services they are trying to sell.  They are not experts, they act more like "goodfellas".

The Changing Alliances in the Sussex County Freeholder race

In his April 5th column in the New Jersey Herald, Rob Jennings noted that Freeholder Phil Crabb's onetime campaign manager was now working for Ron Bassani, who is challenging Crabb in the June 3rd Republican primary: 

One other detail in Bassani’s opening statement drew notice last week. Listed as his campaign contact was Kelly Ann Hart.

“Kelly is helping me design a website and helping me with fundraising,” Bassani explained.

Hart, president of K Hart Consulting since 2004, is a former executive director of the Sussex County Republicans with contacts beyond the region.

She is campaign manager for Murray Sabrin, a Ramapo College professor seeking the Republican nomination against U.S. Sen. Cory Booker.

Locally, she provided consulting in 2013 to the “Hometown Conservative Team,” a Republican ticket of six incumbents seeking re-election headed by state Sen. Steve Oroho, R-24th Dist., and including Vohden.

Much more intriguing, though, is her prior role with Crabb.

Crabb acknowledged that Hart was his campaign manager against Mudrick in 2011. Now she’s working for Crabb’s opponent.

Bassani, of Hart, said, “I’m glad I was able to track her down.”

Perhaps an understatement there.

Jennings' column set-off a series of vitriolic personal attacks on former Crabb manager/ now Bassani manager Kelly Hart in the comments section on the newspaper's website.  Using aliases, Wantage residents Ann Smulewicz and Kathleen Gorman engaged in name-calling and character assassination designed to damage Hart's personal and professional reputation.    They were joined in this personal attack upon an unelected, private citizen, by other acknowledged supporters of Freeholder Crabb.

Smulewicz voiced her support for Freeholder Crabb in the comments section of Jennings' April 5th column and on Thursday evening at a Stillwater Taxpayers Association meeting, Gorman sat with Freeholder Crabb and gave him her support.  It is important to note that neither Smulewicz or Gorman in any way know Hart besides what they've been told by others about her.  In another word:  Rumors.

While it is clear that Crabb's supporters are angry with Hart for switching sides, what goes generally unacknowledged is why she switched sides. The reason for the switch is pretty obvious when you take a moment to look at Crabb's campaign filings filed with the New Jersey Election Law Enforcement Commission.

Crabb stiffed Hart.

Freeholder Crabb, whose habit of not paying to attend campaign events if he can help it is widely acknowledged, never paid Kelly Hart for her work on his successful 2011 re-election bid.  Crabb faced Dennis Mudrick, who was recruited to run against Crabb by former Freeholder and current Sussex County Community College Trustee Glen Vetrano.  Crabb won the primary against Mudrick by a vote of 2,803 to 2,396 (54% to 46%).  Mudrick went on to win the 2012 primary, coming in behind Gail Phoebus but ahead of Helen Wilson LeFrois.

A look at Crabb's 2011 campaign finance reports shows that Hart's mother was Crabb's biggest contributor, with the Skylands Victory PAC coming in second.  In fact, Kelly Hart's family has contributed over $100,000 to Sussex County Republicans, Republican candidates, and Republican causes.

Crabb likes getting paid.

Like most people -- Kelly Hart included -- politician Phil Crabb likes getting paid.  He takes his full salary as a Sussex County Freeholder and -- as the only Sussex County Freeholder who takes the health and benefits package -- is the most expensive Freeholder in terms of the cost to the taxpayers.  Crabb is doing nothing wrong in this, it is what he is entitled to as an elected Freeholder. 

The point is this:  If you like getting paid and if you take every penny coming your way, then you should have sympathy with others who also like to get paid for their work and you should pay them, especially when they are successful on your behalf.

What you should not do is to round up a posse of haters to trash a woman's reputation simply because she has found someone to work for who will pay her and not stiff her like you did.  Fair enough?

The Missing D-1: Is Morris ignoring Election Law?

Back on May 16th, candidate Robert F. Morris filed a Form A-1 with the New Jersey Election Law Enforcement Commission (NJELEC). By filing a Form A-1, candidate Morris asserted that “the total amount expended or to be expended on behalf of my candidacy by me or by any other candidate, person or committee shall be zero, or shall not, in the aggregate, exceed $4,500 for this election.”

Morris is running for Sussex County Surrogate as an independent. A Sparta resident who formerly served on the Lafayette School Board before being defeated for re-election in 2002, Morris is challenging incumbent Republican Gary Chiusano.

More than two weeks ago, the New Jersey Herald’s Rob Jennings reported the following: “Morris said Friday he has spent $6,000 on his campaign. About $2,200 went to the New Jersey State Fair, where Morris secured a prominent tent near the Sussex County Republicans.”

The Form A-1 that Morris filed with NJELEC also reads: “I am aware that I, as a candidate, am required to designate a campaign treasurer and campaign depository and that I am required to file with the Commission a ‘Certificate of Organization and Designation of Campaign Treasurer and Depository’, Form D-1, no later than 10 days after receipt of any contribution on behalf of my candidacy or 10 days after making any expenditure on behalf of my candidacy, whichever comes first.”

Candidate Robert Morris signed the Form A-1 he filed in mid-May and dated it April 20, 2013. Above his signature are these words: “I certify that the statements in this document are true. I am aware that if any of the statements are willfully false, I may be subject to punishment.”