Tag: George E. Norcross III

  • N.J. attorney general is dropping racketeering charges against George Norcross following court ruling

    N.J. attorney general is dropping racketeering charges against George Norcross following court ruling

    New Jersey prosecutors are dropping racketeering charges against Democratic power broker George E. Norcross III, ending a high-profile case that law enforcement officials had framed as a reckoning on the state’s culture of corruption.

    Acting Attorney General Jennifer Davenport, an appointee of Democratic Gov. Mikie Sherrill, will not appeal a January appellate court ruling that upheld a judge’s decision to dismiss charges against Norcross and five codefendants, the attorney general’s office said Tuesday.

    Davenport could have asked the state Supreme Court to review the Appellate Division’s decision, but prosecutors concluded that their resources “would be best spent on other matters,” Sharon Lauchaire, a spokesperson for the New Jersey Attorney General’s Office, said in a statement.

    A three-judge panel said in a Jan. 30 decision that several of the racketeering conspiracy and extortion charges were time-barred under the statute of limitations. Other counts failed to state a crime, were untimely, or both, the panel said.

    Norcross, 69, is a former longtime member of the Democratic National Committee, founder of insurance brokerage Conner Strong & Buckelew, and chair of Cooper University Health Care. He was accused of using threats of economic and reputational harm — and his purported control of Camden’s government — to obtain valuable property on Camden’s waterfront from a developer and a nonprofit.

    His spokesperson on Tuesday portrayed the case against Norcross — announced in June 2024 by then-Attorney General Matthew J. Platkin — as a politicized abuse of the law similar to the Trump Justice Department’s targeting of perceived enemies.

    “We always knew that Matt Platkin brought this case for reasons other than its legal merits — and now multiple judges and Platkin’s successor as AG agree the allegations simply weren’t true,” Norcross spokesperson Dan Fee said in a statement.

    “The question now is whether Platkin’s supporters who cheered him on will take a serious look at what he did and whether other authorities will do the same,” he said. “We will certainly be making the case that he and anyone else who used lawfare against George should be held to account, no differently than Pam Bondi and her DOJ should.”

    Platkin, who was appointed to the post by Democratic Gov. Phil Murphy, has denied pursuing the case for political reasons. He noted on Tuesday that the case “was presented to a grand jury by career prosecutors over several months.”

    “Out of respect for the men and women who do brave work holding corruption to account, I won’t comment further — other than to say I remain proud to have supported their efforts at a time when trust in government is at an all-time low and I will never apologize for believing that everyone should be held to the same standards, no matter how powerful they may be,” Platkin said in a statement.

    Notwithstanding the decision to drop charges, Lauchaire said the attorney general’s office “remains committed to prioritizing public corruption prosecutions in this time of deepening mistrust in government.”

    “Wrongdoing by public officials undermines faith in our institutions, and the public rightfully demands and deserves that officials perform their duties with integrity and in accordance with the law,” she said. “We will never shy away from holding public officials accountable when they betray the public’s trust and behave unlawfully.”

    The prosecution faced an earlier setback last February, when a Superior Court judge found that the charges were not timely and said that even if the allegations in the indictment were proven true, they amounted to hard bargaining in real estate deals and did not cross the line into unlawful threats.

    Prosecutors appealed that ruling, arguing that the judge should review evidence presented to the grand jury before deciding whether the indictment was valid.

    The appeals court affirmed the trial judge’s order, though the panel focused on the statute of limitations violations and largely sidestepped the question of whether the threats underpinning the indictment met the legal requirements for alleging conspiracy to commit extortion.

    In addition to Norcross, prosecutors are dropping charges against his brother Philip Norcross, CEO of the law firm Parker McCay; attorney William Tambussi; former Camden Mayor Dana L. Redd; Sidney R. Brown, CEO of logistics firm NFI; and John J. O’Donnell, an executive at residential developer the Michaels Organization.

    “We are pleased and gratified that this misguided, baseless prosecution has been finally laid to rest,” said Kevin H. Marino, a lawyer for Philip Norcross.

    Henry Klingeman, an attorney for Redd, said his client “is relieved that this unjust and unnecessary ordeal is over.” The former mayor has “continued her unswerving commitment to bettering Camden,” Klingeman said.

    Brown said he was “innocent of these baseless charges” and added that Tuesday’s decision showed “justice was carried out based on the facts.”

    “Since its inception, this case was unfounded and attacked those of us who believed in the future of a thriving Camden,” the NFI CEO said in a statement.

    Tambussi’s lawyers, Jeff Chiesa and Lee Vartan, said their client “engaged in the routine practice of law.” They said Platkin’s attempted prosecution “did damage to the profession” and “was rightly rejected by both courts.”

  • Camden’s planned 25-story Beacon Building could get a boost from new N.J. tax credit bill

    Camden’s planned 25-story Beacon Building could get a boost from new N.J. tax credit bill

    New Jersey lawmakers on Monday approved a bill that would make it easier for development projects in Camden to qualify for hundreds of millions of dollars in tax credits.

    That could be a boon to the Beacon Building — a planned 25-story office tower downtown whose backers have said they intend to seek state incentives — among other projects, according to the bill’s supporters.

    Under current law, most commercial real estate developers must show their projects would generate more dollars in economic activity than they would receive in subsidies in order to qualify for tax credits under New Jersey’s gap-financing program, known as Aspire.

    The new legislation — which was introduced late last month and approved by the Democratic-led Legislature days before Democratic Gov. Phil Murphy is to leave office — would exempt certain projects from the program’s so-called net benefit test.

    Lawmakers on Monday also passed a bill increasing the cap on the size of the Aspire tax-credit program from $11.5 billion to $14 billion and authorized $300 million in tax breaks to renovate the Prudential Center in Newark, home of the New Jersey Devils hockey franchise. The team is owned by Harris Blitzer Sports & Entertainment, which also owns the Philadelphia 76ers.

    ‘Competitive market’

    Supporters of the Camden bill, A6298/S5025, said it would make South Jersey more competitive in the Philadelphia market, while critics contended it would weaken a provision of a 2020 economic development law signed by Murphy that was intended to ensure fiscal prudence.

    The test has impeded big projects in South Jersey, said Assembly Majority Leader Louis Greenwald (D., Camden), a sponsor of the bill. Since the law was signed, the region hasn’t attracted a single “transformative project” — a designation in the Aspire program for developments that have a total cost of $150 million and are eligible for up to $400 million in incentives over 10 years, Greenwald said.

    “We started to ask people, what’s the barrier?” he said. “And when you look at the competitive market of what [developers] can get in Philadelphia or Pennsylvania compared to other areas in the state that don’t have to compete with that, that net operating loss test, that net benefits test, is a barrier.”

    The legislation was not drafted with a specific project in mind, Greenwald said, but he acknowledged that one that might benefit is Beacon, which would feature 500,000 square feet of office space.

    Developer Gilbane is leading the project with the Camden County Improvement Authority at a vacant site on the northwest corner of Broadway and Martin Luther King Boulevard across the street from the Walter Rand Transportation Center and Cooper University Hospital.

    Map of the planned Beacon Building in Camden.

    “The goal is to attract projects, maybe like Beacon Tower, to capitalize off of the growth that we’ve seen in Camden city,” Greenwald said.

    Any project seeking Aspire subsidies must apply to the Economic Development Authority.

    Camden County officials have said they expect tenants to include Cooper University Health Care, which has said it needs additional office space to accommodate its $3 billion expansion. They also hope to entice civil courts to relocate there.

    County Commissioner Jeff Nash said last year that tenants had yet to commit, in part because the development team was still working on an application for Aspire tax credits.

    The incentives will help determine rent, he told the Cherry Hill Sun. The land is owned by the Camden Parking Authority, and Nash has said officials are still trying to determine who will own the site and the building going forward, according to Real Estate NJ.

    County spokesperson Dan Keashen said that those talks remain ongoing and that the improvement authority may issue a request for proposals for a new developer. Gilbane, the current master developer, didn’t respond to a request for comment.

    Wendy Marano, a spokesperson for Cooper University Health Care, said she didn’t have an immediate answer to a question about whether the hospital network planned to obtain an equity stake in the development.

    In 2014 the state awarded $40 million in tax credits to incentivize Cooper Health’s relocation of suburban office jobs to Camden, and Cooper later bought a stake in the development.

    The possible new state investment in Camden comes after Murphy’s administration separately allocated $250 million to renovate the state-owned Rand center — which serves two dozen NJ Transit bus lines and the River Line, and includes PATCO’s Broadway station.

    Construction on the transit center is expected to begin soon, according to county officials. While that renovation is underway, the Beacon site will serve as a temporary bus shelter, Keashen said, adding that possible construction on an office tower is still years away.

    Fast track

    Critics of the bill said that it was rushed through the Legislature with minimal public input and outside the normal budget process, and that it appeared to be designed to benefit specific projects. The bill passed the Assembly, 48-25, and the Senate, 24-14. It now heads to Murphy’s desk. The governor’s second term ends on Jan. 20, when he is to be succeeded by fellow Democrat Mikie Sherrill.

    The legislation applies to redevelopment projects located in a “government-restricted municipality” — language included in the Aspire program’s statute — “which municipality is also designated as the county seat of a county of the second class.” The project must also be located in “close proximity” to a “multimodal transportation hub,” an institution of higher education, and a licensed healthcare facility that “serves underrepresented populations.”

    “I say to you that there’s going to be one project that fits all those criteria,” Assemblyman Jay Webber (R., Morris) said on the floor of the chamber during debate Monday.

    “The net benefits test was put in as an accountability measure to make sure these projects were at least by some measure benefiting the taxpayer,” Webber added in an interview.

    “And now apparently one or more projects can’t meet that test,” he said. “And so rather than stick to the rules that they agreed to and pull the credits, they’re going to change the rules, lower the bar so that somebody can step over it. It’s wrong.”

    Greenwald said the legislation has “nothing to do with [Beacon] in particular,” adding that he hopes it is one of many projects that could benefit. Possible developments in Trenton and New Brunswick could also qualify for incentives under the bill, he said.

    Assembly Majority Leader Louis Greenwald in 2019.

    The net benefit test

    The test relies on economic modeling based on data such as projected jobs and wages. Under current law, most commercial projects seeking Aspire credits must demonstrate a minimum net benefit to New Jersey of 185% of the tax credit award — meaning, for instance, an applicant that receives $100 million in credits must generate $185 million in economic activity.

    The credits can be sold to the state Treasury Department for 85 cents on the dollar.

    Projects located in “government-restricted municipalities” — a half-dozen cities, including Camden, selected by the Legislature — already face a lower threshold of 150%, according to the state Economic Development Authority.

    Some projects, including residential and certain healthcare centers, are exempt from the net benefit test.

    The test was strengthened in the Economic Recovery Act of 2020, signed by Murphy, because “we saw in previous iterations of the tax credit program that if the guardrails weren’t strong enough … then companies could simply not meet the test, or, you know, not follow through on their promises, and nonetheless collect the funds,” said Peter Chen, senior policy analyst at New Jersey Policy Perspective, a liberal-leaning think tank.

    The 2020 law changed that, he said. “It’s one of the most important guardrails of the entire corporate tax credit program,” Chen said in an interview last week. “So exempting any project from the net benefit test requires a pretty large, pretty strong reason for doing so, and in this case, no reason was given.”

    Criminal case

    The renewed push for tax credits in South Jersey comes as a criminal case involving an earlier round of corporate subsidies continues to play out in court.

    Democratic power broker George E. Norcross III — founder of a Camden-based insurance brokerage and chairman of Cooper Health — and five codefendants were indicted in 2024 on racketeering charges related to development projects on the city’s waterfront.

    A judge dismissed the charges last year, and the state Attorney General’s Office is appealing the decision. Norcross has denied wrongdoing. He and his allies say state incentives have helped revitalize the city.

    During his floor speech on Monday, Webber alluded to “incredible allegations of corruption” in the earlier economic development program and noted that Murphy had previously championed reform of the system.

    The governor’s spokesperson, Tyler Jones, declined to comment on pending legislation.