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September 29,2017
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Trenton NJ, Attorney General Christopher S. Porrino announced that the Attorney General’s Office and its state and federal partners have charged 100 criminal defendants in their unprecedented collaborative efforts to root out fraud in disaster relief programs following Superstorm Sandy. Four new defendants were charged yesterday with filing fraudulent applications for federal relief funds related to Sandy, bringing the total charged by the Attorney General’s Office with this type of fraud to 100.
“Charging 100 defendants in these relief-fraud cases is a sad milestone in that it highlights how many people are willing, in the face of a historic disaster, to dishonestly exploit an offer of aid meant for those who were hardest hit,” said Attorney General Porrino. “At the same time, we’re proud of our collaborative efforts, which have recovered millions of dollars and sent an unmistakable message that those who commit this fraud will face serious criminal charges, now and during any future disasters. The 100 defendants we have charged were responsible for diverting nearly $6 million in relief funds.”
The Attorney General’s Office is continuing its aggressive efforts to investigate fraud in Sandy relief programs, working jointly with the New Jersey Department of Community Affairs (DCA), and the Offices of Inspector General of the U.S. Department of Homeland Security, the U.S. Department of Housing and Urban Development (HUD), the U.S. Small Business Administration (SBA), and the U.S. Department of Health and Human Services (HHS). Also assisting the taskforce is the New Jersey Division of Consumer Affairs, the New Jersey Motor Vehicle Commission, New Jersey Office of the State Comptroller, New Jersey Department of the Treasury Office of Criminal Investigation, U.S. Postal Inspection Service, and the non-profit National Insurance Crime Bureau (NICB).
The defendants are alleged, in most cases, to have filed fraudulent applications for relief funds offered by the Federal Emergency Management Agency (FEMA). In many cases, they also applied for funds from a Sandy relief program funded by HUD, low-interest disaster loans from the SBA, or funds from HHS. The HUD funds are administered in New Jersey by the New Jersey Department of Community Affairs and the HHS funds are administered by the New Jersey Department of Human Services.
The following defendants were charged yesterday by complaint-summons:
Michael A. Avena, 65, of Wyckoff, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP), the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, and the Sandy Homeowner and Renter Assistance Program (SHRAP). As a result, he allegedly received approximately $201,861 in relief funds to which he was not entitled. Avena allegedly falsely claimed in his applications that a home he owns on 5th Avenue in Ortley Beach, N.J., which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. It is alleged that, in fact, his primary residence at the time of the storm was in Wyckoff and the home in Ortley Beach was a vacation home. As a result of the alleged fraudulent applications, Avena received $31,900 from FEMA, a $10,000 RSP grant, RREM grant funds totaling $150,000, and $9,961 in SHRAP funds. Avena is charged with second-degree theft by deception and fourth-degree unsworn falsification.
Charles Tuohy, 55, and his wife, Joanne Benzoni, 64, of Tenafly, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. As a result, the couple allegedly received $162,270 in relief funds to which they were not entitled. Tuohy and Benzoni allegedly falsely claimed in their applications that a home Benzoni owns on Lynn Ann Lane in Manahawkin, N.J., which was damaged by Superstorm Sandy, was their primary residence when Sandy struck. It is alleged that, in fact, their primary residence at the time of the storm was in Tenafly and the home in Manahawkin was a seasonal/weekend home. As a result of the alleged fraudulent applications, Tuohy and Benzoni received $2,270 from FEMA, a $10,000 RSP grant, and $150,000 in RREM grant funds. Tuohy and Benzoni are charged with second-degree theft by deception and fourth-degree unsworn falsification.
Paula Belotta, 56, of Colonia, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). As a result, she allegedly received $12,270 in relief funds to which she was not entitled. Belotta allegedly falsely claimed in her applications that a home she owns on Fielder Avenue in Ortley Beach, N.J., which was damaged by Superstorm Sandy, was her primary residence when Sandy struck. It is alleged that, in fact, her primary residence at the time of the storm was in Colonia and the home in Ortley Beach was a seasonal/weekend home. As a result of the alleged false applications, Belotta received $2,270 from FEMA and a $10,000 RSP grant. Belotta is charged with third-degree theft by deception and fourth-degree unsworn falsification.
“Our unprecedented collaborative efforts to target Sandy relief fraud have been highly productive, as evidenced by the 100 defendants we’ve charged,” said Director Elie Honig of the Division of Criminal Justice. “The payoff from this anti-fraud program is not only the millions of dollars we are recovering, but also the deterrent message we hammer home each time new charges are filed. Thanks to these efforts, relief administrators in future disasters may be able to spend less time policing fraud, which is a drain on resources and a distraction from the vital task of aiding those in need.”
“The State’s continued vigilance against Sandy fraud demonstrates that we won’t stand for this reprehensible behavior,” said DCA Commissioner Charles A. Richman. “As such, my Department remains as committed as ever to working with our law enforcement partners to catch anyone who misuses our Sandy recovery programs.”
The new cases were investigated by detectives of the New Jersey Division of Criminal Justice and special agents and inspectors of the U.S. Department of Homeland Security Office of Inspector General, HUD Office of Inspector General, SBA Office of Inspector General, HHS Office of Inspector General and U.S. Postal Inspection Service. The National Insurance Crime Bureau assisted. Deputy Attorneys General Peter Gallagher, Valerie Noto, and Denise Grugan are prosecuting the new defendants under the supervision of Deputy Attorney General Michael A. Monahan, Chief of the Financial & Computer Crimes Bureau, and Deputy Attorney General Mark Kurzawa, Deputy Bureau Chief. Lt. David Nolan and Sgt. Fred Weidman conducted and coordinated the investigations for the Division of Criminal Justice, with others, including Special Civil Investigators Rita Binn and James Parolski.
Second-degree charges carry a sentence of five to 10 years in state prison and a fine of up to$150,000. Third-degree charges carry a sentence of three to five years in prison and a fine of up to $15,000, while fourth-degree charges carry a sentence of up to 18 months in prison and a fine of $10,000. The charges are merely accusations and the defendants are presumed innocent until proven guilty.
On Oct. 29, 2012, Superstorm Sandy hit New Jersey, resulting in an unprecedented level of damage. Almost immediately, the affected areas were declared federal disaster areas, making residents eligible for FEMA relief. FEMA grants are provided to repair damaged homes and replace personal property. In addition, rental assistance grants are available for impacted homeowners. FEMA allocates up to $31,900 per applicant for federal disasters. To qualify for FEMA relief, applicants must affirm that the damaged property was their primary residence at the time of the storm.
In addition to the FEMA relief funds, HUD allocated $16 billion in Community Development Block Grant (CDBG) funds for storm victims on the East Coast. New Jersey received $2.3 billion in CDBG funds for housing-related programs, including $215 million that was allocated for the Homeowner Resettlement Program (RSP) and $1.1 billion that was allocated for the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. Under RSP, the New Jersey Department of Community Affairs is disbursing grants of $10,000 to encourage homeowners affected by Sandy to remain in the nine counties most seriously impacted by the storm: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union counties. The RREM Program, which is the state’s largest housing recovery program, provides grants to Sandy-impacted homeowners to cover rebuilding costs up to $150,000 that are not funded by insurance, FEMA, SBA loans, or other sources.
The Small Business Administration provides low-interest disaster loans to homeowners, renters, businesses of all sizes, and most private nonprofit organizations. SBA disaster loans can be used to repair or replace real estate, personal property, machinery and equipment, and inventory and business assets damaged or destroyed in a declared disaster. Renters and homeowners may borrow up to $40,000 to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster. Homeowners may apply for a loan of up to $200,000 to replace or repair their primary residence to its pre-disaster condition. Secondary homes or vacation properties are not eligible for these loans, but qualified rental properties may be eligible for assistance under the business loan program.
The Disaster Relief Act provided HHS approximately $760 million in funding for Sandy victims. The Administration for Children and Families (ACF) received approximately $577 million in Sandy funding through three grant programs, including the Social Services Block Grant (SSBG) program, which received nearly $475 million to help five states (New York, New Jersey, Connecticut, Rhode Island, and Maryland). New Jersey received over $226 million for a wide range of social services directly related to the disaster. New Jersey used SSBG funds to develop the Sandy Homeowner/Renter Assistance Program (SHRAP) to assist individuals/families with expenses for housing and other related needs.
By Spencer Kent | NJ Advance Media for NJ.com
on April 27, 2017 at 11:00 AM, updated April 27, 2017 at 11:04 AM
New Jersey could become the last state in the nation to ban the sale of homemade baked goods.
A judge in Wisconsin — the only other state to have such a ban — will soon hear from attorneys on behalf of three women seeking to overturn Wisconsin’s law, according to the Journal Sentinel.
Both states currently ban the sale of home-baked cookies, muffins and other treats to the public citing health concerns and unfair competition against established businesses.
In New Jersey, home bakers need to either rent a commercial kitchen or install one in their homes, costing about $12,000. They are also subject to inspection by the state Department of Health and Senior Services.
Many home bakers in New Jersey have been lobbying to overturn the state’s ban for years. A few years ago, a measure passed New Jersey’s lower house, but state Sen. Joe Vitale ultimately refused to bring it up for a vote.
https://www.nj.com/news/index.ssf/2017/04/nj_could_become_only_state_to_ban_selling_homemade.html
Editorial: The last thing N.J. needs is another entitlement
April 2, 2017 at 3:00 AM
State Senate President Steve Sweeney, the sponsor of New Jersey’s 2009 paid family leave law, wants to expand the program. Giving workers paid leave from their jobs to care for a sick relative or a new baby — and paying for it with a small, capped payroll deduction — proved to be a sound idea.
Abuse has not been widespread, employers’ worst fears have not been realized and some studies have contended that companies benefit from the program.
But there is no compelling reason to expand this new entitlement, as Sweeney (D-West Deptford) is unfortunately proposing now.
Oh, wait. There is one compelling reason: To boost Sweeney’s and fellow Democrats’ chances in November, when the entire Legislature is up for election. The Democrats shouldn’t need that much help this year. But Jersey pols, Democrat and Republican, never forget what keeps them in office — giving gifts to prized constituencies.
Sweeney, in particular, is in a bit of a jam, with the powerful New Jersey Education Association, miffed by his pushback on teacher pensions, vowing to fight him. Hence, a renewed commitment by lawmakers to dangle popular proposals in front of voters — like, say, expanding the paid family leave program.
“We’re actually now over-performing the rest of the country, and I would suggest to you that the reason that there is that lag is because New Jersey is still a very expensive place to work and do business, and if the legislature had been willing to do other tax cuts and other measures that I put and recommended on property taxes and income taxes, perhaps we’d be in even better shape and it would’ve happened even faster. But, we’re certainly better off than we were from 2001 to 2009, when there was zero net private-sector job growth during a time” Governor Chris Christie
By KATHERINE LANDERGAN
03/13/17 03:08 PM EDT
Gov. Chris Christie on Monday heralded the state’s fiscal health as new figures showed New Jersey last year experienced the largest spike in private sector job growth since 2000.
The Bureau of Labor Statistics reported the state gained 60,800 private sector jobs last year, meaning New Jersey recovered all of the jobs it lost during the recession, and then added another 65,000 jobs.
“This didn’t happen by accident,” Christie, a Republican, said at a press conference in Englewood Cliffs. “The tax cuts we put in place, holding the line on other taxes, the 2 percent property tax cap — all of these things are bearing fruit.”
Christie also said the state has shown strong gains in construction, the tourism industry, and the number of new businesses filings, and has seen a decline in foreclosures.
“It’s great news for the state and we should stop the drumbeat that somehow New Jersey is underperforming from a jobs perspective,” he said.
By MaryAnn Spoto | NJ Advance Media for NJ.com
on January 18, 2017 at 1:50 PM, updated January 18, 2017 at 7:16 PM
TRENTON — New Jersey has to build thousands more units for its low-income residents to make up for the 16 years that the state didn’t address those needs, the state Supreme Court ruled Wednesday.
In a decision addressing New Jersey’s long-stalled regulations governing affordable housing, the state’s highest court said towns must take into consideration the need for housing that existed within their borders between 1999 and 2015. That’s the so-called gap period when the Council on Affordable Housing failed to adopt new rules.
The 6-0 decision, the latest in decades of Mount Laurel rulings governing affordable housing in New Jersey, rejects the assertion that only 37,000 units are needed and that the gap period calculations are not necessary because that need no longer exists.
“The decision says that the promise of the Mount Laurel decision is real for tens of thousands of families and people with disabilities and the New Jersey Supreme Court said our commitment to fight discrimination remains good law,” said Kevin Walsh, executive director of Fair Share Housing Center, the advocacy group that has taken the lead in enforcing Mount Laurel obligations.
https://www.nj.com/ocean/index.ssf/2017/01/nj_on_the_hook_for_200k_affordable_housing_units_s.html
By Susan K. Livio | NJ Advance Media for NJ.com
on November 30, 2016 at 1:18 PM, updated December 01, 2016 at 2:16 AM
TRENTON — A drug possession conviction is no longer a barrier to receiving welfare benefits in New Jersey under a compromise bill Gov. Chris Christie signed into law Wednesday.
Childless adults who undergo outpatient drug treatment may qualify for public assistance, despite a conviction for drug possession in their backgrounds. Previously, inpatient treatment was the requirement.
The bill’s sponsors say the old restrictions inhibited a person’s ability to become self-sufficient. The legislation is among others aimed at reducing poverty in the state, which has remained stubbornly high in the post-recession era.
“It can be tremendously hard to turn one’s life around after a drug conviction because of all the doors that close in their face due to legal constraints, especially for those who don’t have family or friends to rely on for assistance,” said state Assemblywoman Liz Muoio (D-Mercer), one of the bill’s prime sponsors. “Financial assistance, job training, and education — all of these things provide hope and a chance at a new start.”
https://www.nj.com/politics/index.ssf/2016/11/convicted_drug_users_who_get_treatment_may_get_wel.html?utm_campaign=Observer_NJ_Politics&utm_content=New%20Campaign&utm_source=Sailthru&utm_medium=email&utm_term=New%20Jersey%20Politics#incart_river_home
By Susan K. Livio | NJ Advance Media for NJ.com
on October 24, 2016 at 7:10 AM, updated October 24, 2016 at 8:35 AM
TRENTON — Eight state lawmakers ventured out to Colorado last week to see for themselves the impact legalized marijuana has had on the state’s economy, government and public safety.
The all returned impressed, and the state’s second most influential elected official, Senate President Stephen Sweeney (D-Gloucester) said he sees it being a “game-changer” for job creation.
“I was on board before we went, but I am absolutely sold that this industry can be regulated. It’s safe, it’s well managed. Colorado has done an amazing job,” Sweeney said.
Here is a look at what likely needs to happen for New Jersey to legalize recreational pot.
By Alex Napoliello and Stephen Stirling | NJ Advance Media for NJ.com
on October 13, 2016 at 7:03 AM, updated October 14, 2016 at 2:52 PM
In the fall of 2013, shoppers at the Garden State Plaza mall in Paramus fled in terror as a man with a rifle stalked the halls. Police officers, going through each store one by one, rescued dozens of people with no injuries.
But what if those in the mall could have given police an eye into the madness? What if they could have sent cell phone photos and videos, revealing their location and helping track the gunman’s whereabouts?
That life-saving technology exists. And for more than a decade, every person in New Jersey with a phone has paid a tax on their monthly bill to make it happen, handing over a whopping $1.37 billion to Trenton.
A new study cast doubts on whether New Jersey can withstand another economic downturn. Samantha Marcus, NJ.com Read more
As his mother wiped away tears, Dan Liebenthal told a panel of New Jersey lawmakers Monday that falling behind on his student loan payments robbed him of a future. Adam Clark, NJ.com Read more
Ignoring objections by Governor Christie and presidential nominee Donald Trump that refugees from Syria pose a security risk, the Obama administration has sharply increased resettlements, with New Jersey taking in almost as many people in the past month as it did in 2014 and 2015 combined. Herb Jackson, The Record Read more
Don’t be fooled by the idling heat of summer, New Jersey: A blizzard is coming. And it’s one that will bury the state in accumulating drifts of political campaign cash never seen before. Claude Brodesser-Akner, NJ.com Read more
New Jersey beats only Massachusetts, Connecticut and a hurting Puerto Rico in a new state-by-state comparison of fiscal solvency by the Mercatus Center at George Mason University. Samantha Marcus, NJ.com Read more
Two companies sanctioned by state officials to operate under their own rules have come to dominate a growing and lucrative industry in New Jersey, collecting nearly $1 million in fees last year after arranging online auctions for municipalities selling off their residents’ tax liens, according to a report released Tuesday. Salvador Rizzo, The Record Read more
