Amid the news coverage of hurricanes and all things President Trump, one could be forgiven for barely noticing that a corruption trial involving a sitting US senator began in New Jersey this week. In a few months, however, it might be the biggest thing we’re talking about — at least when it comes to politics.
That’s because the implications of the bribery case facing Democratic US Senator Bob Menendez could extend far beyond New Jersey. Why, you ask? Because it could ultimately affect the balance of power in Washington. Even stranger, it could lay the groundwork for New Jersey Governor Chris Christie — the least popular governor in America — to appoint himself to the Senate.
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Of course, many things could affect the balance of power in the Senate. The difference is this one could happen in a matter of weeks.
By Dr. Sean Stein Smith, September 8, 2017 at 8:14 AM
Dr. Sean Stein Smith.
As Labor Day recedes into our collective memory, and the warm glow of summer fades away, the collective New Jersey business community is faced with the following reality.
The current administration in Washington appears to have focused on comprehensive tax reform as a pillar for reform, and with Congress returning from recess, there is a real possibility this plan will become reality. Although many people from the NJ/NY area commute on Amtrak/Acela to Washington on an ongoing basis, the implications for small business may be overlooked in the hustle and bustle of everyday life. Regardless of whether or not the current political environment is perceived as favorable, or what other issues are continually ongoing, the reality of the situation is that tax reform is a real possibility.
Washington machinations are more than just fodder for Happy Hour conversation – these are issues and topics that can have a definite impact on your bottom line. As a CPA who lives in, has worked in, and who has advised entrepreneurs in New Jersey, but now works in New York, this is an issue I hear about and think about on a daily basis.
Corruption: A sitting U.S. Senator is currently on trial for bribery, and if he’s found guilty it could have major political ramifications. Haven’t heard about this case? That’s because the Senator in question is a Democrat.
A CNN story this week about the opening of the trial against New Jersey Sen. Robert Menendez noted that “Democrats are eager to avoid the subject of Menendez’s bribery trial.”
That headline would have been just as accurate if it said “Reporters” instead of “Democrats.”
Menendez in on trial for allegedly having sold his office in exchange for luxury vacations, private flights, and piles of campaign cash. In his opening remarks, Assistant U.S. Attorney Peter Koski said “this case is about a corrupt politician who sold his Senate office for a life of luxury he couldn’t afford and a greedy doctor who put that senator on his payroll. … The defendants didn’t just trade money for power, they also tried to cover it up.”
It’s the first time in 36 years that a sitting U.S. senator has been on trial for bribery, which you’d think would make it front page news.
New York NY, Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that CRAIG CARTON and MICHAEL WRIGHT were arrested this morning and charged with securities fraud, wire fraud, and conspiracy to commit those offenses.
As alleged, CARTON, WRIGHT, and another individual (“CC-1”) worked together to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts, which would then be re-sold on the secondary market. CARTON and CC-1 purportedly had access to those blocks of tickets based on agreements that CC-1 had with a company that promotes live music and entertainment events (the “Concert Promotion Company”) and that CARTON had with a company that operates two arenas in the New York metropolitan area (the “Sports and Entertainment Company”). In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with CARTON, WRIGHT, or CC-1, or any entity associated with them. After receiving the investor funds, CARTON, WRIGHT, and CC-1 misappropriated those funds, using them to, among other things, pay personal debts and repay prior investors as part of a Ponzi-like scheme.
CARTON and WRIGHT will be presented later today in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Craig Carton and Michael Wright deceived investors and raised millions of dollars through misrepresentation and outright lies. Their schemes were allegedly propped up by phony contracts with two companies to purchase blocks of concert tickets, when in fact, Carton and Wright had no deals to purchase any tickets at all. As alleged, behind all the talk, the Wright and Carson show was just a sham, designed to fleece investors out of millions ultimately to be spent on payments to casinos and to pay off other personal debt.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Carton and Wright thought they could get off easy by allegedly paying off their debts with other people’s money. They then attempted to pay off investors with money that would eventually become future debt, as alleged. We see this time and time again, the rise and fall of a Ponzi scheme destined for failure. The truth is, the time will come when your luck runs out. Unfortunately for those arrested today, that time is now.”
According to the Complaint unsealed today Manhattan federal court[1]:
In the fall of 2016, CARTON, WRIGHT, and CC-1 exchanged emails and text messages regarding their existing debts. On September 5, 2016, for example, WRIGHT emailed CARTON and CC-1, “for the sake of our conversation tomorrow,” and outlined “the debt past due and due next week.” WRIGHT listed several apparent creditors, to whom he, CC-1, and/or CARTON were personally indebted for over a million dollars. WRIGHT listed eight possible options for repaying the debt, including “Run to Costa Rica, change name, and start life all over again – may not be an option.” CARTON responded to WRIGHT and CC-1, stating “don’t forget I have $1m coming tomorrow from ticket investor[.] will need to be discussed how to handle.” On September 7, 2016, CARTON emailed WRIGHT and CC-1, referenced a potential investor (“Investor-1”) in an upcoming holiday concert tour, and suggested “borrow[ing] against projected profits” on that investment.
Later in the fall of 2016, CARTON began negotiating with a hedge fund (the “Hedge Fund”) regarding a transaction in which the Hedge Fund would extend CARTON capital to finance CARTON’s purchase of event tickets, which CARTON would then re-sell at a profit. In early December 2016, CC-1 texted CARTON and WRIGHT and discussed using the Hedge Fund’s capital “to repay debts,” and not for the purchase of tickets.
The next day, December 7, 2016, CARTON emailed the Hedge Fund five agreements between (i) CC-1 and a company controlled by CC-1 (the “CC-1 Entity”) and (ii) the Concert Promotion Company. In each of the purported agreements, the Concert Promotion Company agreed to sell the CC-1 Entity up $10 million worth of tickets to different concert tours. However, as alleged, these agreements were fraudulent and had not, in fact been entered into by the Concert Promotion Company.
The following day, the Hedge Fund and CARTON executed the revolving loan agreement (the “Revolving Loan Agreement”), under which the Hedge Fund agreed to provide CARTON with up to $10 million, for the purpose of funding investments in the purchase of tickets for events. The Revolving Loan Agreement provided, in sum and substance, that the proceeds of the loan would be used only to purchase tickets pursuant to agreements for the acquisition of tickets, including the agreements with the Concert Promotion Company and for limited business expenses. The Hedge Fund would receive a share of the profits from the resale of the tickets.
The Hedge Fund then sent $700,000 to the CC-1 Entity to finance the purchase of tickets pursuant to the agreements between the CC-1 Entity and the Concert Promotion Company. CC-1, however, then sent this money to a bank account controlled by WRIGHT, who then, on December 12, sent $200,000 to CARTON’s personal bank account (the “CARTON Bank Account”), which CARTON then wired to a casino. Also on December 12, WRIGHT sent another $500,000 to an individual who had previously lent CARTON $500,000, which was due to be repaid that day.
Later in December 2016, the Hedge Fund sent an additional $1.9 million to the CC-1 Entity, to finance the purchase of tickets pursuant to agreements between the CC-1 Entity and the Concert Promotion Company. Once again, the Concert Promotion Company had not entered into any such agreements. CC-1, WRIGHT, and CARTON engaged in text messages regarding the disposition of these funds. Some of the money was used by CC-1 to repay two individuals who had previously invested with CC-1 in a related scheme involving the purported investment in the resale of tickets, and by CARTON to pay casinos and to pay Investor-1 a purported return on an earlier investment in a ticket-related venture.
CARTON also induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based purportedly on an agreement he had with the Sports and Entertainment Company (the “Sports and Entertainment Company Agreement”). The Sports and Entertainment Company Agreement purportedly gave an entity controlled by CARTON (the “CARTON Entity”) the right to purchase $2 million of tickets to concerts at one of the venues operated by the Sports and Entertainment Company. CARTON, among other things, sent the Hedge Fund a copy of the Sports and Entertainment Company Agreement that purportedly had been signed by the chief executive officer of the Sports and Entertainment Company. However, this agreement was fraudulent and had never been entered into by the Sports and Entertainment Company or signed by the chief executive officer.
On December 20, 2016, when the Hedge Fund wired the $2 million to the Sports and Entertainment Company, CARTON contacted the Sports and Entertainment Company and told them, in sum and substance, that the wire had been sent in error and should be sent to the bank account for an entity operated by CARTON and WRIGHT, for which WRIGHT is the signatory. After the money was rewired to that account, WRIGHT wired $966,000 to WRIGHT’s personal bank account and $700,000 to the CARTON Bank Account. CARTON then wired approximately $188,000 from the CARTON Bank Account, including at least $133,000 in wires to several casinos.
* * *
CARTON, 48, of New York, New York, and WRIGHT, 41, of Upper Saddle River, New Jersey, are each charged with one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud, and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the Boston Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against CARTON and CC-1 in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brendan F. Quigley and Elisha J. Kobre are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Ridgewood NJ, perhaps they forgot , but suddenly the New York Times omits party affiliation in article of ethically challenged New Jersey Democratic Senator Bob Menendez. The Times wrote a story that was 30 paragraphs and 1288 words yet amazingly the one word the was missing was DEMOCRAT.
Menendez 63, faces 12 charges stemming from accusations that he traded political influence for lavish gifts from Florida ophthalmologist Dr. Salomon Melgen. Menendez initially didn’t report the gifts included private flights and vacations. Melgen also donated $750,000 directly and indirectly to Menendez political campaigns. Dr. Salomon Melgen, a Florida eye doctor was found guilty of Medicare fraud.
Paramus NJ, Paramus Fire department, Paramus Rescue Squad, Parmaus EMS, Paramus Police, and Paramus OEM units responded to a working house fire in the 800 block of Alden Road on Monday morning, 09/04. No injuries were reported in the blaze but the structure sustained heavy fire and water damage. Initial reports were that the home was vacant and under renovation at the time of the fire.
Tomorrow begins the hard core campaign season in New Jersey. People oftentimes ask me, particularly in this current climate, why did I agree to run for office? I am an accomplished businesswoman, attorney, wife and mom. I have survived a bout of melanoma and a recent brain aneurysm. I have worked at the local truck stop flipping burgers and at a premier NYC law firm handling multi billion dollar transactions. I made more money prior to running for office than I do now. …I ran for office six years ago because I care. I grew up here and I chose, as an adult, to return. I am not a career politician. I became involved because I am passionate about trying to save our state from the bad fiscal policies enacted by mostly one party control over the past 15 years. I have watched my property taxes almost double, my take home pay shrink, our insurance premiums skyrocket but yet I stay because I love the state I grew up in. I have been the loud voice on difficult topics (and have subjected myself to horrible name calling as a result) because we must address a better way to govern this state. I am certain you will hear nasty, mostly untrue, things about me over the next 60 days but please remember leadership takes a spine of steel. Real leadership involves discussing and listening to all sides on the most sensitive topics. Leadership is voting no on bad legislation regardless of how much a special interest group may want it. If you ever have a question on why I voted a certain way or what my position is on a particular topic please reach out and ask. I also will be going door to door in all 23 of the towns I represent. I’m taking all volunteers for the journey.
Let me know if you’d like to help out.
Holly Schepisi New Jersey State Assemblywoman for District 39
Glen Rock NJ, like Ridgewood Glen Rock will be undergoing major street milling and repaving the next couple of weeks .
The first leg will begin on Thursday September 7th and 8th and the second leg will begin Thursday September 14th .
ROAD CONSTRUCTION NOTICE: Gordon Pl, Gibson Pl, Godfrey Terr, Garret Pl, Garvey Pl, Grove St, Amherst Ct, Broad ST, Lowell Rd:
The following roads will be milled on Thursday September 7th and Friday September 8th, and paved on Monday September 11th and Tuesday September 12th:
• Gordon Place
• Gibson Place
• Godfrey Terrace
• Garret Place
• Garvey Place
• Grove Street
• Amherst Court
• Broad Street
• Lowell Road
All work will be done weather permitting.
Please observe the “No Parking” signs – they will be enforced. Any vehicle left within the work zone will be TOWED AT THE OWNER’S EXPENSE. Please have all vehicles removed from the street by 7:30am on each day. Per the contractor, all vehicles that are to be used should be removed from the driveway each day by 7:30am and again, there can be no on street parking. Residents are responsible for making their own arrangements for alternate parking.
If necessary, the DPW will work with homeowners for access during paving and can be reached at 201-670-3980 until 3:30PM on any weekday.
ROAD CONSTRUCTION: Glen Blvd, Cornelia Pl, Mortlock Pl, William Pl, Serafin Pl, Valley Rd, Sterling Pl, 1 Glen Ave Senior Lot
The following roads will be milled on Thursday September 14th and Friday September 15th, and paved on Monday September 18th and Tuesday September 19th:
• Glen Boulevard
• Cornelia Place
• Mortlock Place
• William Place
• Serafin Place
• Valley Road
• Sterling Place
• 1 Glen Ave Senior Lot
All work will be done weather permitting.
Please observe the “No Parking” signs – they will be enforced. Any vehicle left within the work zone will be TOWED AT THE OWNER’S EXPENSE. Please have all vehicles removed from the street by 7:30am on each day. Per the contractor, all vehicles that are to be used should be removed from the driveway each day by 7:30am and again, there can be no on street parking. Residents are responsible for making their own arrangements for alternate parking.
If necessary, the DPW will work with homeowners for access during paving and can be reached at 201-670-3980 until 3:30PM on any weekday.
Midland Park NJ, A downed tree blocked a section of North Monroe Street in Midland Park and Ridgewood on Sunday morning, 09/03. Midland Park Police and Ridgewood Police responded to the incident along with Ridgewood Emergency Services. The tree was removed by an employee of the Village of Ridgewood’s Shade Tree Division. No injuries, property damage, nor utility outages were reported,
Updated on September 3, 2017 at 8:02 AM Posted on September 3, 2017 at 6:30 AM
With an election coming up, we’re hearing a lot about consolidating towns and school districts as a means of solving our property-tax problem.
Before this goes any further, let me warn all involved about the nature of such transactions.
Consolidations are like weddings. There are two types: weddings of attraction, into which both partners enter willingly; and shotgun weddings, in which one party takes part only because of compulsion.
The latter describes one Monmouth County town that I covered in the waning days of the Corzine administration, Loch Arbour.
The elected officials of this charming little town by the sea entered into a mutually beneficial pact with nearby Ocean Township when they set up a shared-services agreement. They would send their kids to Ocean schools in return for a per-pupil payment of about $15,000 per year.
Ridgewood NJ, Hope you are all enjoying your summer. I wanted to let you know about the Racefaster 5K and Half Marathon coming up on Sunday, September 10. This is going to be a great event — bringing residents from all over Bergen County together. The 5K is a walk or run hosted at Garden State Plaza and the Half Marathon will begin and end at Garden State Plaza but will primarily be hosted in the Saddle River County Park up to the Glen Rock Duck Pond.
Also, we still have opportunity for you to sponsor the event and promote your business! There are many different ways that we can get you in front of all of the participants. Please let me know if you are interested and we can go over the different opportunities available. You can always email me at [email protected] or call 201-727-3135.
The Justice Department alleged this week that Sen. Bob Menendez, D-N.J., pushed his colleagues and the Obama administration to change federal policy in order to help a man that authorities charge lavished him with gifts.
In a brief filed with the U.S. District Court for the District of New Jersey, the department said Menendez asked then-Senate Majority Leader Harry Reid, D-Nev., to pressure the Centers for Medicare and Medicaid Services to reverse a decision that hurt Florida ophthalmologist Salomon Melgen. Melgen is thought to have plied Menendez with lavish vacations, and authorities are trying to show those gifts influenced Menendez’s actions in the corruption case they are bringing against him.
Special Properties Lifestyle Magazine Now Part of a Partnership with North Jersey Media Group
September 12,2017
the staff of the Ridewood blog
Ridgewood NJ, Special Properties Real Estate Services, LLC, an exclusive affiliate of Christie’s International Real Estate and the fastest growing real estate brokerage in northern New Jersey, officially launched Special Properties Lifestyle Magazine at a debut event held on September 7 at its Mahwah offices. The magazine represents an expansion of the partnership between the growing real estate brokerage and North Jersey Media Group, publishers of The Record and (201) Magazine.
“We are pleased to be able to bring this extension of the Special Properties and Christie’s International Real Estate brand to an even larger North Jersey audience through our partnership with North Jersey Media Group,” said Ilija Pavlovic, President and CEO of Special Properties Real Estate Services. “Special Properties Lifestyle Magazine brings readers, throughout the northern New Jersey region, the latest lifestyle and real estate stories and information, while reinforcing the power of the Christie’s International Real Estate brand and the advantages it brings to those looking to buy or sell a home.”
This current issue features a collection of unique stories, including the expert opinion of Christie’s auction house on how to start a vintage jewelry and watch collection, a brief tour of 10 of the world’s most stunning beach destinations, an introduction to one of the Hudson Valley’s most charming resorts, and an in-depth look at the Pebble Beach Concours d’Elegance – the world’s top annual display of historic and beautiful automobiles.
The magazine also takes a detailed look into the latest interior decoration trends and includes stories on prominent agents that are making a difference in the lives of their clients and the community. Each issue will also feature property listings from Special Properties collection of homes, as well as select listings from across the country and around the world available through Christie’s International Real Estate Affiliate Network.
Special Properties Lifestyle Magazine represents the latest value-added service that Special Properties is bringing to the regional marketplace as it continues to expand and reach more areas of northern New Jersey and the surrounding region. Recently, the brokerage opened a new real estate office in Ridgewood and will open offices in both Hoboken and Montclair in the coming months.
Glen Rock NJ, according to Glen Rock Police a non profit organization called “Clean Water Action” an anti Trump , anti energy independence leftist activist group will be conducting neighborhood canvassing over the next few weeks. This organization is engaging in constitutionally protected political activity that neither the Police Department nor the Borough can prohibit. This is in no way an endorsement of the political views of this organization. Residents not wishing to speak with a representative of this organization must communicated that message with them directly. The organization has provided us with a list of individuals canvassing and will check in with us each day as to the area of town they will be in. Police will not respond to calls about unwanted soliciting regarding this group, however any unlawful activity or disputes should be directed to our attention.
Waldwick needs to take this problem much more seriously, for as great as this original infiltration was, it is highly likely that it will get much worse and infinitely more dangerous as the colder months force them to take even more residence in homes. Rats carry all kinds of disease and are notoriously rabid. Their urine and feces leave disease-borne microbes everywhere, including in air ducts, children play areas and other areas where it becomes an incessant threat to human health, young and old alike! Rats are very adaptable and are very opportunistic, not to mention, their prolifate reproductive rate. A female can breed at 5 weeks-old, gestation is only 21 days, liters can be as high as14, or more simply put, 2 rats can become as much as 15,000 in less than a year.
These rats being dislocated from there past community now probably means the threat they represent has grown 100-fold, as did the chance of ever reducing the threat to what was once manageable to the neighbor hoods in Waldwick. I wish these citizens my hopes and prayers in dealing with a potentially tragic problem for their beautiful community.
