Jersey City NJ, the Gateway Project is a monumental initiative designed to enhance rail travel between New York and New Jersey. This ambitious $16 billion plan includes constructing a new two-track rail tunnel under the Hudson River and repairing the existing North River tunnel, which was damaged by Superstorm Sandy.
Trenton NJ, Attorney General Gurbir S. Grewal announced that a former police officer was sentenced to prison today after being convicted in October at trial of stealing $187,000 by filing fraudulent applications for federal relief funds related to Superstorm Sandy. His wife, who was convicted with him, was sentenced to probation and community service.
Nikola Lulaj, 45, of Seaside Heights, N.J., (formerly of Dumont, N.J.) – who forfeited his job as an officer with the Hoboken Police Department as a result of his conviction – was sentenced today to five years in state prison by Superior Court Judge James M. Blaney in Ocean County. His wife, Majlinda Lulaj, 32, was sentenced today to three years of probation, conditioned upon completion of 50 hours of community service. Both defendants were ordered to pay full restitution. The husband and wife were found guilty on Oct. 25 by an Ocean County jury of charges of second-degree conspiracy, second-degree theft by deception, and six counts of fourth-degree unsworn falsification.
Deputy Attorneys General Thomas Clark and Jamie Picard tried the case and handled the sentencing for the Division of Criminal Justice Financial & Computer Crimes Bureau. They were assisted at trial by Detective Mark Byrnes, Detective Franco Cignarella and Analyst Rita Gillis.
The state presented testimony and evidence at trial that Nikola and Majlinda Lulaj filed fraudulent applications following Superstorm Sandy for FEMA assistance, a low-interest SBA disaster-relief loan, 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) funded by the New Jersey Department of Human Services. As a result, they received a total of approximately $187,074 in relief funds.
The couple falsely claimed in their applications that a home they own on Webster Avenue in Seaside Heights, which was damaged by Superstorm Sandy, was their primary residence at the time Sandy struck. In fact, their primary residence was in Dumont, N.J. They have since moved to the house in Seaside Heights, but at the time of the storm, it was a vacation/rental property. As a result of the alleged fraudulent applications, Nikola and Majlinda Lulaj received $2,820 from FEMA, $90,200 in SBA loan proceeds, a $69,054 RREM grant, a $10,000 RSP grant, and a $15,000 SHRAP grant.
“For a police officer to commit this type of fraud is particularly egregious, because officers take an oath to uphold the law and we rightly hold them to the highest standards,” said Attorney General Grewal. “When disaster strikes, we cannot allow dishonest applicants to divert disaster relief funds from the intended recipients – namely, those victims whose primary homes were destroyed or damaged.”
“We have recovered well over $2 million through these prosecutions and have delivered a strong message that should deter this type of fraud during future disaster recovery efforts,” said Director Veronica Allende of the Division of Criminal Justice. “I commend our trial team for securing the verdict and these sentences, and I thank all of our law enforcement partners for their excellent work in these historic anti-fraud efforts.”
The case was investigated for the Division of Criminal Justice Financial & Computer Crimes Bureau by Deputy Attorney General Thomas Clark and Detective Mark Byrnes. They conducted the investigation with special agents of the U.S. Department of Homeland Security Office of Inspector General, HUD Office of Inspector General and SBA Office of Inspector General. The case was investigated and prosecuted under the supervision of Lt. Vincent Gaeta, Lt. David Nolan, Sgt. Fred Weidman, Deputy Bureau Chief Mark Kurzawa and Bureau Chief Julia S. Glass of the Division of Criminal Justice Financial & Computer Crimes Bureau.
The Attorney General’s Office has charged over 120 defendants with fraud related to Sandy relief programs. Most of the cases involve “primary residence fraud” of the type committed by Nikola and Majlinda Lulaj. The 120-plus defendants allegedly were responsible for diverting more than $8 million in relief funds. The 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).
Trenton NJ, Today, the New Jersey Board of Public Utilities (NJBPU) voted unanimously to accept the findings of an investigative report conducted in direct response to the March 2018 nor’easters that left hundreds of thousands of New Jersey residents without power. As a result, NJBPU added more than 30 required actions by the state’s four electric distribution companies (EDCs). This is in addition to the more than 100 requirements put in place after Hurricane Irene and Superstorm Sandy.
“New Jersey had one of the worst winters on record, but my administration has taken the stance that the prolonged service interruptions were, in many cases, preventable,” said Governor Phil Murphy, who directed the NJBPU to investigate the actions of the EDCs following March nor’easters Riley, Quinn, and Toby to determine lessons learned and to develop best practices moving forward.
“Our processes leading up to, during, and following major weather events must be under constant evaluation to ensure that our residents are safe,” the Governor added.
The NJBPU conducted five public hearings throughout the state and obtained testimony from the public and elected officials. NJBPU staff also analyzed the EDCs’ actions, both individually and collaboratively, to determine whether they complied with the 100 requirements adopted after Hurricane Irene and Superstorm Sandy.
The investigation resulted in an extensive report which summarized staff’s findings and recommended a series of actions, specific to each EDC, in the following areas: Pre-Storm Preparations; Restoration of Service; Communications and Outreach: Winter Storms Riley and Quinn; The EDC’s Response to Winter Storm Toby; and Compliance with Board Orders.
The Board’s vote encompasses all actions that must be taken by utilities to better prepare for any event that may result in widespread periods of service interruption.
“These directives are the result of a thorough investigation and illustrate what actions the EDCs need to take to make sure our residents never have to go through anything like this again,” said NJBPU President Joseph L. Fiordaliso. “I would like to thank Governor Murphy for his leadership on this matter as we move forward to ensure the implementation of the Board’s orders.”
The NJBPU’s vote to accept the staff’s report turned staff’s recommendations into Board requirements. The additional 30 newly ordered requirements, when combined with those previously ordered during Irene and Sandy, will serve to further utility best practices, particularly when faced with issues regarding service interruption.
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.
FEMA agrees to reopen all Superstorm Sandy homeowner claims
MARCH 11, 2015, 9:21 PM LAST UPDATED: WEDNESDAY, MARCH 11, 2015, 9:34 PM
BY ABBOTT KOLOFF
STAFF WRITER |
THE RECORD
In the face of allegations of fraudulent practices by some private insurance companies, the Federal Emergency Management Agency will reopen every claim made by homeowners who suffered damage during Superstorm Sandy and has let go one of its top administrators, New Jersey’s U.S. senators announced Wednesday.
Senators Robert Menendez and Cory Booker said during a press conference in Washington that FEMA has agreed to review all 144,000 claims filed by Sandy victims, and not just the 2,200 claimants currently involved in a lawsuit over allegations that some claims were denied because of fraudulent engineering reports made by insurance subcontractors.
All Sandy victims across the region who believe that they didn’t receive enough insurance money for flood damages are eligible to resubmit their claims, including those who live in North Jersey’s hardest hit areas in Little Ferry and Moonachie. The mayors of those municipalities did not immediately respond to messages seeking a response to the announcement.
Menendez and Booker also said that the FEMA executive who has been overseeing the National Flood Insurance Program, David Miller, has tendered his resignation. The agency’s top administrator, Craig Fugate, plans to have a process in place within “several weeks” for Sandy victims to seek a review of their claims, they said.
Learning From Superstorm Sandy: PSE&G Improves Infrastructure, Communications and Logistics October 28, 2014
(Newark, N.J. – Oct. 28, 2014) Superstorm Sandy was the most powerful and destructive storm in Public Service Electric and Gas Company’s 111-year history, causing more than 2 million PSE&G customers to lose power. In the two years since the storm, PSE&G, which serves nearly three-quarters of New Jersey’s population, continues to make significant improvements to its infrastructure, communications and logistics that will keep more customers in service during a storm, and restore service faster in the aftermath.
”During the two-week period following Sandy, we made more than 2 million electric service restorations — a record for any utility in the country,” said Ralph LaRossa, president and chief operating officer of PSE&G. “Nearly half of our outages were caused by switching and substations that flooded due to the storm surge. Water ranging from 4 to 8 feet inundated our facilities — including some that had never been submerged in all their years of operation.”
Before Sandy, PSE&G began rewiring its system, adding 69-kV lines for added capacity and reliability. That work continues. The new lines are being installed on stronger poles with better lightning protection, and fiber optic wires that improve communication between substations.
Improving Infrastructure
The transmission improvements are only the beginning. During the next three years, PSE&G’s $1.22 billion Energy Strong program will help the utility significantly strengthen and protect its electric and gas systems against severe weather damage.
As part of the Energy Strong program, PSE&G will protect, raise or relocate 29 switching and substations; replace and modernize 250 miles of gas mains in or near flood areas; create redundancy in the system; protect five natural gas metering stations and a liquefied natural gas station affected by Sandy or located in flood zones; and deploy smart grid technologies to better monitor system operations.
Work is currently under way in 28 municipalities to replace low-pressure cast iron gas mains, with high-pressure plastic pipes. “The new pipes and higher pressure will keep the water out and customers in service when it floods,” said LaRossa. “We expect to complete 88 miles of this work by the end of the year. On the electric side, extensive planning, engineering and procurement are under way to begin work on our switching and substations early next year.”
Smart grid projects underway include installing advanced technologies in PSE&G substations to facilitate full remote monitoring and control; and contingency restoration work that adds smart switches and fuses, and multiple sections on circuits. These upgrades ensure that when there is an outage, service will be restored faster and the outage will affect fewer customers.
Changing Communications Channels
In addition to improving infrastructure, PSE&G has made significant changes to better communicate with customers before, during and after storms. “We’ve ramped up our messaging across all channels, including Twitter and Facebook,” LaRossa said. “Our goal is to help customers understand what to expect from an event, how they can prepare and stay safe, and how they can best communicate with PSE&G.”
New communication tools include MyAlerts, which allows customers to opt in for text messages, as well as email notifications about outages in their area and service restoration; and an enhanced Outage Map that provides customers with detailed information about power outages in their neighborhood and across PSE&G’s service territory. Customers can access these PSE&G communications tools in the company’s “Storm Center” at www.PSEG.com.
More Training, Better Logistics
Internal communications, emergency training and logistics are critical to storm preparedness. Located at the company’s headquarters in Newark is its Delivery Emergency Response Center (DERC), which is activated to oversee multiple operations in the field when preparing for and responding to a major storm. People representing all functions across the company staff DERC 24/7 — getting the right people, to the right places, with the right equipment at the right time.
PSE&G conducts extensive storm outage planning, training and exercises throughout the year. So far this year, its employees have completed more than 1,700 emergency preparedness and response training sessions, logging nearly 4,000 hours of training. Training in safety and damage assessment equips PSE&G office employees to help in the field during emergencies.
Since Sandy, process improvement teams have studied more efficient ways to undertake restoration activities, and PSE&G has expanded its network of mutual aid from eight to 22 utilities. “The utility industry is somewhat unique in that we all help each other,” said LaRossa. “During Sandy, we brought in 4,500 contractors from 24 states and Canada to help restore service.”
To accommodate the massive influx of people and equipment during Sandy, PSE&G set up 12 staging areas across the state. Since then, the company has identified 22 staging areas and has specific site plans and role assignments for each of these “pop-up utility cities” where material and equipment is stored and trucks can be fueled.
“From 2010 to 2012, we experienced the four most destructive storms in our history. We learned a lot,” said LaRossa. “We hope to never see the likes of Sandy again, but feel confident that our infrastructure investments, comprehensive communications tools and emergency response training will ensure that our customers, employees and systems are better ready to weather severe storms in the future.”
NJ Senate Candidate Bell praises Christie for halting budget busting tunnel project to Macy’s Basement
October 9, 2014 Last updated: Thursday, October 9, 2014, 1:21 AM
By JOHN REITMEYER
STATE HO– USE BUREAU
The Record
Governor Christie’s decision to halt construction on new Hudson River commuter tunnels “looks pretty good in retrospect,” even as damage from Superstorm Sandy is now expected to cause more delays during upcoming repair work, the Republican candidate for U.S. Senate said Wednesday.
Jeffrey Bell, speaking to The Record’s editorial board, also said he considers Christie’s success with Latinos last year during his bid for reelection a model, adding he favors comprehensive immigration reform even if other Republicans nationally have taken a firmer position on the issue.
“It makes us seem — I mean the Republican Party — completely unwelcoming,” Bell said of the stances some other GOP candidates have taken.
Bell, a 70-year-old former aide to Ronald Reagan, is trying to upset incumbent U.S. Sen. Cory Booker, a Democrat who is ahead in the race, according to the most recent public opinion polls. Christie headlined a fundraiser for Bell on Tuesday and Bell, who lost bids for the Senate in 1978 and 1982, said the Republican governor “has been very helpful.”
Bell didn’t try to distance himself from Christie’s 2010 decision to stop work on the new tunnels, which the governor said would have exposed New Jersey to billions of dollars in potential cost overruns.