
JULY 4, 2015, 10:59 PM LAST UPDATED: SATURDAY, JULY 4, 2015, 11:25 PM
BY SHAWN BOBURG
STAFF WRITER |
THE RECORD
At the Port Authority, even the lawyers are getting lawyers.
More than 15 officials — including three in-house attorneys — have lawyered up amid an escalating investigation into the Port Authority’s decision to redirect $1.8 billion in toll money from its Hudson River crossings to fix roads in New Jersey.
The development signals that the 15-month-old joint investigation by the Manhattan District Attorney’s Office and the U.S. Securities and Exchange Commission has entered a more serious phase. And the focus on at least three of the agency’s top staff attorneys suggests prosecutors and federal regulators are closely examining the legal justification for shifting toll dollars to New Jersey-owned roads.
The investigation is focused on whether the Port Authority misled investors and bondholders in 2011 when it agreed to use toll money to rebuild the 3.5-mile Pulaski Skyway and three other major New Jersey state roads at the behest of the Christie administration. Laws limit the bi-state agency’s spending to projects associated with its own facilities.
The Port Authority quietly justified the spending by labeling the highways as access roads to the agency’s Lincoln Tunnel — even though they are miles from the tunnel, do not connect to it directly and do not generate any revenues for the Port Authority. Agency lawyers described the repairs in bond documents as “access infrastructure improvements” to the Lincoln Tunnel.
https://www.northjersey.com/news/port-authority-road-funds-probe-intensifies-1.1368743