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Hudson County Politics Message Board |
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Posted by Jay Stevens, The Urban Times News on November 16, 2003 at 11:45:35:
The Urban Times News
THE HAT STRIKES AGAIN
Earl “The Hat” Morgan, aka “Ugly Duckling,” police informant, snitch, welfare cheat, business loan scammer, and who poses as a mild mannered reporter for the Hudson County Democratic Journal, wrote a “story” last week about Sue Mack’s departure from the Jersey City Redevelopment Agency. The Hat mentioned that the agency had at one point last year been taken over by The Don, Congressman Robert Menendez, the Boss of Organized Crime, but did not mention The Don’s Consigliere, the real brains of this crime family, attorney Donald Scarinci.
Earl, if you are going to tell the story, you should tell the whole story, all of it. We just don’t see how you can consistently omit the mention of a character as important as The Donald. The Donald is consigliere and Chancellor of the Exchequer of Organized Crime. If we did not know any better we would be tempted to conclude that Earl is motivated by paychecks other than those he gets from the Jersey Journal. This is Hudson County, so we are not quick to jump to conclusions about payoffs and cover ups, but, hey, why do you leave the main guy out of the story? It just does not seem right.
LINE A
Jerry McCann, Carl Czaplicki, and Anthony Cruz lost to HCDO’s Radames Velazquez, a virtual unknown. Velazquez won because he had all of our money behind him. Organized Crime takes our taxpayers’ money and by various means, patronage, no-bid contracts, and outright bribes, funnels it back into election campaigns. They have a lot of money, almost all of ours, and so a complete unknown won because of their massive backing.
Now Gerry McCann got more votes than Czaplicki and Cruz put together, and they all fought hard to get on the ballot in the first place. What they should have fought for was to get on line A on the ballot. That is what really did them in and they should have fought to get on line A and get whatshisname off.
HE’S BAAACK…
Former Mayor Bret Schundler has been popping up here and there all over town talking about running for Mayor in 2005. What he is not telling anybody is that the State and National Republican party have told him is that he cannot run for governor again, even with McGreevey setting new lows in the polls all the time. A right wing Republican as Schundler has shown himself to be would make a virtually automatic winner of McGreevey again, as dismal as his approval ratings are.
Not that anybody has been talking about, but, not for nothing, Congressman Bob has been talking about “ running” Schundler for Mayor against Jersey City Mayor Glenn Cunningham. Menendez and Schundler have even had secret meetings about the possibility of Schundler running against Cunningham in 2005 for Jersey City Mayor.
But we happen to know that before it ever comes to that Congressman Bob will have bigger problems of his own to deal with like facing a major challenge when he runs for reelection next June. We suggest that you keep a close eye on both of these scoundrels. We sure will.
MAYOR MAN AND MAVERICK
Newspapers around the state—not the Jersey Journal, of course, we are talking about newspapers here—are calling our own Mayor Man, Glenn Cunningham, the new State Senator from Hudson County the maverick of the New Senate with the first Democratic majority in years. Cunningham has picked up on the theme for his party and reception in Atlantic City, which will be a Country Western theme, urban cowboy type. Wear your ten-gallon hat, boots an
HEY BOB MENENDEZ, YOUR SLIP IS SHOWING
It is probably just a coincidence, purely by chance that Jersey City Council Member Junior Maldonado has scheduled a dessert reception in Atlantic City at the League of Municipalities at the same time as the dessert reception being sponsored by his Mayor, Glenn Cunningham, at the same convention. Cunningham also planned a dessert reception at the same time and place. Junior’s reception will honor Hispanic Mayors plus Newark Council member Louis Quintanilla. What do you know about that? Small world, yada, yada, ya. If we were suspicious, paranoid type people, mistrustful of those around us, we might be tempted to say somebody put Junior up to this. Nah.
Menendez must think that nobody is watching and nobody will know and that we are all stupid. The Congressman would do well and remember the coming primary next June when he is on the ballot. We just thought that we would mention that your slip is showing. Nice play, Shakespeare.
JOE DORIA ALL OVER AGAIN
Only this time it is going on in Hoboken. Former Mayor and Council Member Anthony Russo’s son Michael ran for and won a council seat, handily beating his opponents in Hoboken’s third ward.
The elder Russo was Mayor from 1993 until 2000 and, here’s the key to this, he is not a drinker of the Kool Aide. That means that he is not a member in good standing of Organized Crime, the Hudson County Democratic Organization. Russo the elder has, however, been indicted for committing other alleged crimes all on his own, having nothing to do with the pervasive ongoing scheme of corruption that US Attorney Christopher Christie rails about when he talks about systemic corruption in Hudson County. Christie is referring to HCDO when he says those things. You know, Organized Crime.
Russo is definitely not allied with HCDO, nor is his son Michael. In one famous incident, Russo allegedly attempted to run over Senator Bernie Kenny Jr. with his car. Kenny swears Russo did. Russo says this never happened. Point is there is no love lost between the Russo camp and the drinkers of the Kool Aide. Hoboken’s Mayor, Dave Roberts, his business administrator, Robert Drasheff, and a majority of the eight members of Hoboken’s council are HCDO guys. Young Michael Russo, just married a week ago, threatens to change all that by swinging the council majority away from HCDO. This threatens the massive gravy train that drinkers of the Kool Aide have enjoyed in the Mile Square City, home of Baseball, Frank Sinatra, and stronghold and bedroom of Organized Crime. The mile square is home to Bob Menendez, Bernie Kenny Jr. and Kay LiCausi, to name just a few.
Russo came up with enough votes to convincingly beat his nearest opponent, Mayor Dave Roberts’ choice, Vincent Addeo. But, here we go again. Though Russo won on the machine vote, his absentee ballots, some 130 of them, are being challenged by Addeo. Even if every one of his impounded absentee ballots were worthless, Russo won. What do you know about that? This prevents Russo from taking his seat now and not be able to take his seat now keeps him from voting on the budget. Had Russo been able to vote on the budget, he would surely have voted it down as it contained all sorts of goodies for HCDO patronage. That includes a Bond Sale that Russo and his council faction have challenged in court. The bond sale would provide the cash that Russo says would fund the shenanigans that are running the city into the red.
Needless to say, Russo is as welcome as ants at a picnic to Roberts and his crowd and the Organized Crime “consultants” and “providers of professional services” to the city. To start with there is Dennis Enright, formerly Bobby J’s top fundraiser.
DENNIS ENRIGHT, FINANCIAL ADVISOR TO ORGANIZED CRIME
The way he got to be Bobby J’s top fundraiser will, no doubt, be the subject of a coming trial. But we can tell you that, though Mr. Enright is not licensed to sell securities, that during the 13 years from 1989 and up to 2002, that did not stop him or even slow him down. During that time, and with Bobby J in office, Dennis sold just a little less than $1 Billion worth of Bonds for the Hudson County Improvement Authority.
Freeholder Bill O’Dea openly laughs and calls it the Hudson Consultants’ Improvement Authority. A gadfly at a Freeholder meeting asked, “What does this HCIA do? What do they improve?” O’Dea’s answer—mind, you on the record in a public forum of an opening meeting of the Freeholders’ board—“Mostly they improve the standard of living of the Consultants to the Authority.” For years, insiders laughingly called the HCIA, “Dennis’ Playground.”
Even though Federal law enforcement officials have taken Bobby J out of circulation, Dennis continues to conduct business as usual. You would think that after investigators from the US Attorney’s office came and cleaned out his office in connection with the Pollack Hospital transaction, Dennis would have learned to exercise a little discretion. Such is not the case.
Enright is not licensed to sell securities, nor has he ever been licensed. At least he wasn’t the last time we looked. We frankly haven’t bothered to look again because he has acted as underwriter without proper documentation so many times in the past. It is like saying I used to commit crimes but I stopped.
When that inconvenient fact became public knowledge, the HCIA was considering a new contract for Enright that would have appointed him underwriter—that means someone who sells securities—and changed the contract to make him “financial advisor,” instead. After the contract was approved, paying Enright an annual fee of $88,000 ($88,000? Why 88?) plus $1 per bond sold, if any, Enright turned around and acted as underwriter for an issue of HCIA munis, as bonds are called in the bond biz. Of course, acting as underwriter entitles Enright to an underwriter’s fee, which is generally not less than one point, or $10,000 per million of bonds sold. It is also illegal as sin. But that is another story. By acting as underwriter, Dennis Enright made all the personnel of the HCIA, the Chair, John Shinnick, and Executive Director Norman Guerra, and everybody else who approve and condoned the transaction, party to a white collar felony: securities fraud.
Now let’s take the bond sale in Hoboken, for example. If, let’s say, if Dennis were to act as underwriter, and we are not saying that he did, though we are told that he did, then, you do the math. There are $42 Million worth of bonds to be sold in that sale, soooo….let’s see now, hmmm, 42 times $10,000 is $420,000, plus expenses, of course. Now boys and girls, lets divide $420,000 by Dennis Enright, plus all the members of Organized Crime Dennis will “take care of” if it goes down this way. How much will each crook get? List them all and identify their respective “cut.” Send your answers to the Urban Times News by email to jstevens@urbantimesnews.com and we will announce the winner next time. The winner gets absolutely nothing, by the way.
As you will plainly understand if you complete the exercise, all the goodies will have been glommed by these guys, so there will be none left for anybody else. There will also be noticeably fewer governmental services provided and a few less notches in the morale of the remaining government employees of conscience who do not participate in the budget grab bag. This is the way that the business is done here in Hudson County. We have a fundamental problem with this and it is simply this: Why does nobody do something? Why do we have elected officials flagrantly breaking and flouting the law and acting like it is OK? How can this possibly be?
Dennis in fact did just make half a million bucks for himself in the Hoboken bond sale and for him to have done so is hideously illegal. It is a violation of Federal Securities Law, in fact it is securities fraud and you have an entire municipal government from Mayor David Roberts on down, with the exception of a handful of dissenting votes on the city council going along with all of this as if it were hunky-doria. It is not even remotely OK. Does anybody NOT understand that? If Mayor David Roberts did not know that it was against the law, he is every bit as implicated and complicit in securities fraud as if he did knowingly go along with the transaction. You know what they say: “Ignorance of the law is no excuse.” If Roberts and the other city officials who went along with this crime, punishable, by the way under RICO statutes, then they are all complicit. If they did not know they are just as implicated and even more reprehensible for being stupid.
Here’s an interesting little point. You cannot have a legal and binding contract if, in performing the contract you break the law. Hoboken taxpayers should demand their money back and redo the transaction on terms more to their liking and in compliance with all applicable law, local, state, and federal. But that’s just us, and what do we know? We are just some dopey newspaper persons. Why does the Jersey Journal never write anything about this? Why does the Hoboken Reporter not do more about this kind of stuff? It is all over the place. You have to be careful not to step in it around the Hudson Republic the Banana County.
Now, in return for the appointment as advisor and underwriter to Hoboken, and one very chubby little pay day, Dennis now turns around and expresses his gratitude and appreciation to all those who put him in a position to do so well. That means he “takes care of” the dominant political organization, strengthening their financial position. We are talking about HCDO all the way up the line. Don’t forget the buck stops there, up at the top. That way they have plenty of ammunition to fuel campaigns to steamroll opposition candidates when they pop up, and perpetuate the reign of sleaze.
This is galling. Chris Christie US Attorney, said of Hoboken developer Joe Barry, that his payoffs were particularly galling because of all the work done by honest developers who did not rely on bribes to get government grants and the like. Well, Big Boy, how much more galling is this. The more these clowns get away with, the more they can get away with. It is almost like the people, the voters, the taxpayers; the Joe and Jane Schmoes are paying the crooks of Organized Crime to steal from them. Now that is reeeealllly galling.
Financial Advisors Rule
This is a great profession, if you are looking for something to do and if you run out of ideas. If Barber College does not appeal to you, or beautician academy, check this out. To render financial advice, you do not need an advanced degree, nor any professional certification, nor any governmental licensing. The only thing that you must
NOT do, the one cardinal NO-NO is you must NOT sell securities. Naturally, that is the way that Dennis makes most of his money. The advisory fees are not bad, typically one dollar per bond. In this case he would have made $42,000 just for telling city officials what to do, just on advisory fees.
Like any other profession, there are good competent, even stellar practitioners, not just the Dennis Enrights of the world. A good advisor can make all the difference and save you tons of money and lots of grief. A bad one can bring a city to grief.
Over in Jersey City right now there is a major flap brewing over a financial advisor’s appointment and one financial advisor’s firing. We have a ticking bomb. That would be the city’s finances. There is very little time to authorize a bond sale and raise money and avert a possible default by the city on its outstanding debt obligations. The quick and easy way to deal with the situation is to approve an ordinance already introduced and approved in “blank check” fashion for an amount up to $335 Million. It is a blank check in that it does not specify any of the details of the transaction that it authorizes nor a final amount. These details can be filled in-up to $335 Million. That ought to do it. That will definitely fill a lot of potholes.
If you introduce a new ordinance, it requires waiting for the next council meeting and then the required 20-day waiting period for the ordinance to take effect. Simple, isn’t it. Use the blank check “shelf” ordinance we just happen to have right here.
No, it is not simple at all. The ordinance was introduced during the defacto tenure of the Financial Advisor just terminated and council members are concerned that if they act on the ordinance it will obligate the city to pay the former advisor for the transaction even though she—That’s right, the advisor is a lady—is no longer with us. The advisor is preparing to take the city to court to collect fees of more than $90,250 owed for transactions already done, plus legal fees racked up by disclosure counsel who was terminated along with her. She is not going to be content to settle for the $90,250 she says represents transactions already done, but she will also sue for work done preparing the next transaction that the Council is now contemplating. That will push the combined total of fees up to a total of $190,000 or more.
The city has brought in a new financial advisor and she—that’s right, another lady financial advisor—charges less than the lady she replaces. This lady’s fee will be capped at $30,000 no matter how many bonds are sold, while the other lady’s maximum fee could have been as much as $100,000. While trying to dramatize these savings of $70,000 in advisory fees, Finance Director Serafina Sengco repeatedly told the council that the previous lady would have charged $335,000 for the transaction. Ms. Sengco along with everybody else in the city government, but with the possible exception of the guy who changes the deodorant pucks in the urinals in the men’s’ room, all know that her fee was capped at $100,000. But it does sound much more appealing to say you will now pay only $30,000 instead of $335,000. Now that’s what we call a savings. Serafina’s debut as a salesperson met with mixed reviews. Not everybody was thrilled with her performance.
In any event, since this little drama has been unfolding interest rates have risen so it will now cost the city much more to sell whatever amount of bonds. The amount of the claim in the first advisor lady’s suit against the city will almost certainly increase, and with some especially adroit fiddling by council members, the city could approach a default. You can almost hear the choruses chanting, “Default’s not mine.” If that were to trigger a downgrade of the credit rating of the city’s bonds, the rating would slip from BBB, which is the lowest acceptable “Investment Grade,” to Junk bond status. If that happens, we will get an up close and personal demonstration of the true meaning of the word “expensive.”
JONATHAN, UNCLE SENATOR, TAKE THE WEEK OFF
We like to say that no edition of our weekly rant is complete without some mention of two of our favorite topics, The Jersey City Medical Center, and Uncle Harvey Smith. To show you how overwhelmed we have been with financial concerns in the past week, we have given scant notice and attention to these two local heroes. Please do not think this means we do not love you any more. We do. It’s just that financial concerns have overwhelmed us for the time being. But do not fret and don’t you worry. We will be back, just like the governor of California. You bet we will.
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