Around the State
Feds: Money-launder probe snares officials who took bribes
By Martin C. Daks Among the politicians charged with accept- The investigation expanded into the public ernment relations at the New Jersey Chamber
anD anDrEW kitCHEnMan ing bribes were newly elected Hoboken Mayor corruption track in July 2007, when a cooperat- of Commerce, said the probe is “another black
A GRoUP oF PoLITICIANS — mostly from Hud- Peter Cammarano III; Assemblyman L. Har- ing witness, not named, posed as a developer and eye for New Jersey.” “At a time when we’re all do-
son County — were among 44 arrested by FBI vey Smith (D-Jersey City) and his aide, Richard owner of a tile business who wanted to build high- ing our best to improve the image of the state, to
agents last week as part of a federal investigation Greene; Assemblyman Daniel Van Pelt (R- rises and other projects, and get public contracts read about the actions of selfish elected officials
of public corruption and a “high-volume, inter- Forked River); Secaucus Mayor Dennis Elwell; in Hudson County schools. That witness was in- is extremely disappointing.”
national money-laundering” conspiracy, accord- and Anthony Suarez, Ridgefield attorney. troduced to a Jersey City inspector, who promised Philip Kirschner, president of the New
ing to Acting U.S. Attorney Ralph J. Marra Jr. Several rabbis also face charges of money laun- to smooth the way for construction approvals in Jersey Business & Industry Association, said, “If
The scheme moved “at least tens of millions dering, Marra said. In most cases, the rabbis used exchange for a $40,000 bribe, Marra said. businesses believe that New Jersey officials are
of dollars through charitable, nonprofit entities charitable, nonprofit entities connected to their syna- New Jersey’s business community reacted corrupt, they will look to do business in another
controlled by rabbis in New York and New Jer- gogues to “wash” money they knew came from crim- to the news with dismay. mid-Atlantic state.” u
sey,” Marra said. inal activity, according to the criminal complaints. Jim Leonard, senior vice president of gov- E-mail to mdaks@njbiz.com
Report questions value of million in federal low-income hous- environmental reviews and final
Deals around the state
development incentives ing tax credit funds, and $22.6 million
under the federal stimulus program,
review of the commission’s assess-
ment of the technical and adminis- n Supermarket operator The Great Atlantic & Pacific Tea Co. Inc.,
the American Recovery and Reinvest- trative sections of applications. No in Montvale, said it executed investment agreements totaling $175
A report by a Trenton nonprofit
ment Act, according to a press release. standards or requirements for per- million with The Yucaipa Cos. LLC and Tengelmann Warenhandels-
questions whether property tax
This funding will stimulate private in- mit compliance would change in the gesellschaft KG. Yucaipa will invest $115 million and Tengelmann
abatements are appropriate tools for
vestment by reviving the market for sharing of the permitting process, will invest $60 million for convertible preferred stock. A&P said it will
promoting development.
the tax credits; that market had de- the commission said. – Evelyn Lee use the funds to strengthen its balance sheet and increase liquidity.
New Jersey Policy Perspective
clined with the financial crisis.
released the report on July 15, fo-
Biopharmaceutical company Medarex Inc., in Princeton, said it
cusing on the history of tax abate-
The latest financing is for 642
homes in Delanco, Franklin, Wool-
KSS completes library n
signed an agreement to be acquired by Bristol-Myers Squibb Co. for
ments in Jersey City.
In the report, titled “All That
wich and Jackson townships; Jersey archive expansion $16 per share, for an aggregate $2.4 billion. BMS is expected to initi-
City; Long Branch; Newark; and Pa- ate a cash tender offer July 27 for outstanding shares of Medarex.
Glitters Isn’t Gold: Property Tax
terson. The latest funding is in addi- Princeton-based KSS Architects an-
Abatements in Jersey City,” the writ-
tion to a $40 million award for afford- nounced last week it completed an n Enterprise communications provider Avaya Inc., in the Basking Ridge
ers contend that while abatements
able housing announced in May. expansion project of the Research section of Bernards, signed agreements to buy Nortel Networks Corp.’s
may have spurred development
In all, such funding will help and Collections Preservation Con- enterprise solutions business for $475 million. Communications equip-
along Jersey City’s waterfront in the
build 1,500 new homes, the gover- sortium, a library archive located ment provider Nortel, in Toronto, filed for bankruptcy protection in Jan-
1970s and 1980s, they are likely no
nor’s office said. – Shankar P. on Princeton University’s Forrestal uary. The agreement is subject to competitive bids, and requires court
longer necessary.