CANADIAN CEO EXTRADITED IN CASE INVOLVING NEW JERSEY SUPERFUND SITE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, November 17, 2014
Canadian Executive Extradited on Major Fraud Charges Involving a New Jersey Environmental Protection Agency Superfund Site

John Bennett, a Canadian national, was extradited Friday from Canada on a charge of participating in a conspiracy to pay kickbacks and commit fraud at the U.S. Environmental Protection Agency (EPA)-designated Superfund site Federal Creosote, located in Manville, New Jersey.  He was also charged with a related count for major fraud against the United States related to contracts obtained at the Federal Creosote site, the Department of Justice announced today.

Bennett was the former Chief Executive Officer with Bennett Environmental Inc., a Canadian-based company that treated and disposed of contaminated soil.  According to a felony indictment filed in the U.S. District Court for the District of New Jersey on Aug. 31, 2009 Bennett carried out the conspiracy by providing kickbacks to Gordon McDonald, the project manager at the Federal Creosote site, in order to influence the award of sub-contracts at the site and inflate the prices charged to the EPA by the prime contractor.  The kickbacks were in the form of money transferred by wire to a co-conspirator’s shell company, lavish cruises for senior officials of the prime contractor, and various entertainment tickets.  The department said the conspiracy began at least as early as December 2001 and continued until approximately August 2004.

The clean-up at Federal Creosote is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil as well as other operations at the Federal Creosote site.

Bennett arrived in the District of New Jersey, in Newark, on Nov. 14, 2014 and made his initial appearance today in the U.S. District Court for the District of New Jersey in Newark.

“The defendant is charged with thwarting the government’s competitive contracting practices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division.  “This extradition demonstrates our resolve to pursue those who undermine competition.  And it is yet another example of our longstanding cooperation with our enforcement colleagues in Canada’s Department of Justice, which helps ensure that those who subvert competition in the United States and elsewhere are brought to justice.”

The fraud conspiracy that Bennett is charged with carries a maximum penalty of five years in prison and a $250,000 fine.  The major fraud against the United States charge carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

As a result of the department’s investigation, three companies, including Bennett Environmental Inc., and eight individuals have pleaded guilty.  Bennett’s co-conspirator, Gordon McDonald, was convicted on Sept. 30, 2013, on 10 counts, including the two charges pending against Bennett.  McDonald was sentenced on March 4, 2014 to a 14-year term of imprisonment.

The investigation was conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation with assistance from the Antitrust Division’s Foreign Commerce Section and the Criminal Division’s Office of International Affairs.

TAX LIENS INVESTMENT COMPANY EXECUTIVE PLEADS GUILTY TO RIGGING MUNICIPAL TAX LIEN AUCTIONS IN NEW JERSEY

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 12, 2014

Former New York Tax Liens Investment Company Executive Pleads Guilty for Role in Bid Rigging Scheme at Municipal Tax Lien Auctions

Investigation Has Yielded 15 Guilty Pleas to Date

A former New York-based tax liens company executive pleaded guilty today for his role in a conspiracy to rig bids at auctions conducted by New Jersey municipalities for the sale of tax liens, the Department of Justice announced.

Vinaya K. Jessani, of New York City, entered a guilty plea in the U.S. District Court for the District of New Jersey in Newark to felony charges filed today.   Under the plea agreement, Jessani has agreed to cooperate with the department’s ongoing investigation.

According to the charge, from at least as early as 1994 until as late as February 2009, Jessani, a former senior vice president who supervised the purchasing of municipal tax liens at auctions in New Jersey for the company he worked for, participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to, and instructing others to, allocate among certain bidders which liens each would bid on.  The department said that Jessani and those under his supervision submitted bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
           
“Today’s guilty plea demonstrates the Antitrust Division’s continuing effort to prosecute those who manipulate the competitive process in order to harm home and property owners,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division will continue to be vigilant in rooting out conspiracies that harm already distressed property owners.”

The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates.  When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes.  If the taxes remain unpaid after a waiting period, the lien may be sold at auction.  New Jersey state law requires that investors bid on the interest rate delinquent property owners will pay upon redemption.  By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent.  If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.

According to court documents, the conspiracy permitted the conspirators to purchase tax liens with limited competition and each conspirator was able to obtain liens which earned a higher interest rate.  Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.

Today’s plea is the 15th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions.  Including Jessani, 12 individuals and three companies have pleaded guilty.  Additionally, four individuals and two entities have been indicted for their roles in the conspiracy to rig bids at tax lien auctions.

Today’s case was done in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.

EPA PROPOSES LARGEST TOXIC CLEANUP IN EPA HISTORY

FROM:  ENVIRONMENTAL PROTECTION AGENCY 

2014 News Releases

 EPA Proposes Plan to Remove Toxic Sediment from the Passaic River; Largest Cleanup in EPA History Will Protect People’s Health and Create Jobs

Release Date: 04/11/2014

Contact Information: Elias Rodriguez, (212) 637-3664, rodriguez.elias@epa.gov
(New York, N.Y.) In an historic action that will protect people’s health and the environment, and benefit riverfront communities, the U.S. Environmental Protection Agency today proposed a plan to remove 4.3 million cubic yards of highly contaminated sediment from the lower eight miles of the Passaic River in New Jersey. The sediment in the Passaic River is severely contaminated with dioxin, polychlorinated biphenyls (PCBs), heavy metals, pesticides and other contaminants from more than a century of industrial activity. The lower eight miles of the Passaic is the most heavily contaminated section of the river. Ninety percent of the volume of contaminated sediments in the lower Passaic are in the lower eight miles of the river.

The EPA is proposing bank-to-bank dredging – one of the largest volumes ever to be dredged under the EPA’s Superfund program – followed by capping of the river bottom.

The proposed plan is based on an extensive seven-year study of the lower eight miles of the river, known as a focused feasibility study, and was developed in consultation with the New Jersey Department of Environmental Protection, the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service, and the National Oceanic and Atmospheric Administration and with outreach to representatives of the many communities along the lower Passaic River. The study examined the contamination and analyzed options for reducing the risks that the contaminants in this segment of the river pose to people’s health and the environment. The EPA will accept public comments on its proposed plan from April 21 to June 20.

The EPA will hold three public meetings to explain the proposal.
* May 7, 2014 at 7 p.m.
Portuguese Sports Club
55 Prospect Street
Newark, New Jersey, 07105

* May 2014 in Kearny, New Jersey
Specific date and location To Be Determined

* June 2014 in Belleville, New Jersey
Specific date and location To Be Determined

“High concentrations of dioxin, PCBs and other contaminants in the lower eight miles of the Passaic River are a serious threat to the people who eat fish and crabs from this river,” said Judith A. Enck, EPA Regional Administrator. “The EPA’s proposed cleanup plan will result in a cleaner river that protects people’s health and increases the productive use of one of New Jersey’s most important natural resources and creates jobs during the cleanup. Doing less is not good enough for this river or the people who live along it.”

A major source of dioxin in the river was pollution from the Diamond Alkali facility in Newark, New Jersey, where the production of Agent Orange and pesticides during the 1960s generated dioxin that contaminated the land and the river. In addition, approximately 100 companies are potentially responsible for generating and releasing dioxin, PCBs, heavy metals, pesticides and other contaminants into the river. Fish and shellfish in the lower Passaic, its tributaries and Newark Bay are highly contaminated with mercury, PCBs and dioxin. Fisheries along the river have long been closed due to the contamination. Catching crabs is prohibited and there are “Do Not Eat” advisories for all fish. Local plans for riverfront development have also been hindered because of sediment contamination. The site was added to the federal Superfund List in 1984.

The lower 17 miles of the Passaic River, which stretches from its mouth at Newark Bay to the Dundee Dam, are part of the Diamond Alkali Superfund site. From 1983 to 2001 extensive cleanup work was conducted on land at the Diamond Alkali facility and in the streets and homes near it. The proposed cleanup plan announced today addresses the lower eight miles of the river portion of the site.

Because of the nature and complexity of the Passaic River contamination, the EPA divided the investigation and consideration of cleanup options into two studies – one of the entire 17-mile stretch of the Lower Passaic from its mouth to the Dundee Dam and the other focused on just the lower eight miles. The study of the lower eight miles was conducted by the EPA. A long-term study of contaminated sediment in the 17-mile stretch is ongoing. It is being conducted by a group of approximately 70 parties potentially responsible for the pollution, with the EPA oversight. Information gained from the 17-mile study was integrated into EPA’s proposal for the cleanup of the lower eight miles. A portion of Newark Bay is also being studied by one of the parties potentially responsible for the contamination.

In the lower Passaic River, there is an approximately 10-to-15-foot deep reservoir of contaminated fine-grained sediment in the lower eight miles of the river. Under this plan, about 4.3 million cubic yards of contaminated sediment will be dredged and removed from the Passaic River. Once the top layer of contaminated sediment is removed from the river, a protective cap will be placed over the area that was dredged. The cap will consist of two feet of sand except along the shore where it will be one foot of sand and one foot of materials to support habitat for fish and plants. The cap will be monitored and maintained to ensure that the cleanup remains protective.

The proposed plan includes several options for managing the contaminated sediment after dredging. Air and water quality will be monitored during the work.

After receiving and considering comments from the public, the EPA will finalize a cleanup plan by early next year. Once a plan is finalized, engineering and design work necessary to carry out the plan will be done in the following years.

The proposed plan builds on dredging that has already occurred in two smaller areas with high concentrations of contaminants. In 2012, the EPA oversaw dredging in the Passaic near the Diamond Alkali facility in Newark. About 40,000 cubic yards of the most highly dioxin contaminated sediment were removed, treated and then transported by rail to licensed disposal facilities. In 2013, the EPA oversaw dredging of approximately 16,000 cubic yards of highly contaminated sediment from a half-mile stretch of the Passaic River that runs by Riverside County Park North in Lyndhurst, New Jersey. This area is located about 11 miles north of the river mouth and outside of the lower eight miles addressed in today’s proposed plan. The work, which is ongoing, was necessary because the EPA identified particularly high levels of contamination in the sediment in this portion of the river.

The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. The EPA searches for parties legally responsible for the contamination at sites that are placed on the Superfund list and seeks to hold those parties accountable for the costs of investigations and cleanups. Most of the work to-date to clean up the Passaic has been performed by parties responsible for the contamination. The EPA will similarly pursue agreements to ensure that the cleanup work proposed today be carried out and paid for by those responsible for the contamination at the site.

HURRICANE SANDY FEDERAL ASSISTANCE AT $5.3 BILLION

FROM:  FEDERAL EMERGENCY MANAGEMENT AGENCY
New Jersey Recovery From Superstorm Sandy: By The Numbers
Release date: 
July 9, 2013 
Release Number: 
4086-181 

TRENTON, N.J. -- Disaster assistance to New Jersey survivors of Superstorm Sandy by the numbers as of July 8:

Total Federal Assistance: $5.3 billion

$3.5 billion in total National Flood Insurance Program payments made on claims to date

$403.3 million in FEMA grants approved for individuals and households

$351 million for housing assistance

$56.6 million for other needs

$802 in SBA disaster loans approved for homeowners, renters and businesses

$650.5 million approved in FEMA Public Assistance grants to state agencies,
local communities and certain private nonprofit organizations that serve the public

261,817 people registered with FEMA for assistance

126,797 housing inspections completed

FEMA RELEASES NUMBERS OF SANDY DISASTER ASSISTANCE TO NEW JERSEY

 

April 30, 2013 -- Keyport, N.J., April 30, 2013- A construction worker oversees the demolition of a Keyport marina restaurant devastated by Hurricane Sandy. Rosanna Arias/FEMA

FROM: U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY 
New Jersey Recovers From Superstorm Sandy: By The Numbers
Release date:
May 6, 2013
Release Number:
4086-154

TRENTON, N.J. -- Disaster assistance to New Jersey survivors of Superstorm Sandy by the numbers as of May 6:
$393.6 million in FEMA grants approved for individuals and households
$339.3million for housing assistance
$54.3 million for other needs $755.8 million in SBA disaster loans approved for homeowners, renters and businesses
$307.3 million approved in FEMA Public Assistance grants to communities and some nonprofit organizations that serve the public
$3.4 billion in total National Flood Insurance Program payments made on claims to date
261,442 people contacted FEMA for help or information
182,226 housing inspections completed
123,416 visits to Disaster Recovery Centers made

EPA TO SPEND OVER HALF BILLION TO FUND HURRICANE SANDY IMPACTED AREAS IN NEW YORK, NEW JERSEY

Bottled Water Releif For Sandy Victims.  Cr:  FEMA

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA to Award Over a Half Billion in Funding to Areas Impacted by Hurricane Sandy in New Jersey and New York 
Funding will Help Upgrade Wastewater and Drinking Water Facilities Damaged by Sandy

WASHINGTON - The U.S. Environmental Protection Agency (EPA) today announced that it will provide grants of $340 million to the state of New York and $229 million to the state of New Jersey for improvements to wastewater and drinking water treatment facilities impacted by Hurricane Sandy. The funding announced today will help storm-damaged communities in both states as they continue to recover from the damage caused by the storm on Oct. 29, 2012.

In the aftermath of Hurricane Sandy, wastewater and drinking water treatment systems in New York and New Jersey were so severely damaged that some could not provide safe drinking water or treat raw sewage. The funding announced today will give states the capacity to further reduce risks of flood damage and increase the resiliency of wastewater and drinking water facilities to withstand the effects of severe storms similar to Sandy.

"As communities continue to recover following Hurricane Sandy’s devastation, it’s important that their efforts to rebuild our infrastructure such as wastewater and drinking water facilities are approached in a sustainable way," said EPA Acting Administrator Bob Perciasepe. "These funds are another critical step in the administration’s ongoing effort to help New York and New Jersey recover and move forward in a way that ensures local communities are stronger than ever before."

"With extreme weather conditions increasingly becoming the norm, Congress wisely provided funding to make sure our wastewater and drinking water facilities can withstand Hurricane Sandy-sized storms," said EPA Regional Administrator Judith A. Enck. "This funding will help vulnerable communities in New Jersey and New York become more resilient to the effects of climate change."

These funds, which will be provided to the New York State Department of Environmental Conservation and the New Jersey Department of Environmental Protection, were authorized by the Disaster Relief Appropriations Act of 2013 and signed into law by President Obama on Jan. 29, 2013. In addition to protecting drinking water systems and maintaining water quality, the funding will provide for 6,000 short-term construction jobs.

The funds will be awarded as grants to the states and most will be given out to local communities as low or no interest loans that will be paid back to the states. Up to 30 percent of the money can be awarded as grants to communities rather than as loans.

Almost 60 percent of the funds will go to New York and about 40 percent of the funds will go to New Jersey for both the Clean Water and Drinking Water State Revolving Fund programs. The determination of how the funds should be allotted to New Jersey and New York was based on the percentage of the population living in impacted counties that FEMA designated for disaster assistance.

Projects will be selected by the states of New Jersey and New York using project priority ranking systems that are based on elements of the Clean Water Act, the Safe Drinking Water Act, the Disaster Relief Appropriations Act and state regulations. The highest rankings will be given to proposed projects that will most ensure water quality or provide the most protection to drinking water systems. Applicants may submit projects that incorporate green infrastructure, such as wetlands and detention basins to collect stormwater or natural features like sand dunes that are capable of mitigating storm water impacts; raise equipment from basements; and provide backup sources of energy that are renewable.

The states will review the proposed projects from impacted communities and then submit Intended use plans that include the recommended projects to EPA for review. The Intended use plans will be subject to public comment periods (30 days in New Jersey and 45 days in New York). Following these comment periods, EPA will evaluate the intended use plans and award the grants to the states.

The Disaster Relief Appropriations Act provided EPA with $500 million for the Clean Water State Revolving Fund and $100 million for the Drinking Water State Revolving Fund. The funding provided by the act is subject to sequestration, which has reduced the money available by $25 million for wastewater improvements and $5 million for drinking water. It also includes funding for EPA to administer the program.

Today’s funding complements the efforts of the Hurricane Sandy Rebuilding Task Force created by President Obama. The Task Force works closely with federal, state and local officials to help communities address rebuilding challenges, use funding as effectively as possible and provide oversight to ensure it is used as it was intended. Other federal support includes:

- The Federal Emergency Management Agency has obligated more than $1 billion to support state and local rebuilding efforts. It has also disbursed more the $1.3 billion directly to impacted families, covering eligible repair costs and meeting temporary housing needs.

- The U.S. Department of Housing and Urban Development has approved disaster recovery plans for New York and New Jersey, which means $3.5 billion in funding will be available for home and small business owners.

- The U.S. Small Business Administration has also provided more than $2 billion in disaster loans to homeowners and small businesses.

- The Federal Transit Administration’s Emergency Relief Program has allocated $2 billion in funding and the Federal Highway Administration’s Emergency Relief Program has allocated $584 million to repair and rebuild damaged infrastructure.

- The U.S. Department of Health and Human Services has allocated $474 million in Social Services Block Grants to help provide services to survivors and rebuild damaged health care facilities.

FIVE MONTHS AFTER HURRICANE SANDY

 

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY

N.J., March 28, 2013 -- Damaged to homes along the beach in Mantoloking; New Jersey left by Hurricane Sandy five months after the storm. Taken from a miniature Quadcopter along the coast of Mantoloking, New Jersey. Photo by Wendell A. Davis Jr.-FEMA

Mantoloking, N.J., March 28, 2013 -- Damaged homes along the beach in Mantoloking; New Jersey left by Hurricane Sandy fiver months after the storm. Taken from a miniature Quadcopter along the coast of Mantoloking, New Jersey. Photo by Wendell A. Davis Jr./FEMA'
 

EPA ANNOUNCES IMPORTANT STEP TOWARD CLEANING UP QUANTA RESOURCES SUPERFUND SITE

Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, November 19, 2012
Agreement Furthers Cleanup of the Quanta Resources Superfund Site in Edgewater, New Jersey

Another important step toward cleaning up the Quanta Resources Superfund site in Edgewater, N.J., was announced today by the Department of Justice and the U.S. Environmental Protection Agency (EPA). The agreement with Honeywell International Inc. and 23 other parties, embodied in a consent decree lodged today in federal court, requires the performance of pre-construction project design work and requires Honeywell to carry out the actual cleanup work under the EPA’s oversight. The cleanup of the Quanta Site is expected to result in its redevelopment.

After the design is completed and approved by EPA, the cleanup will proceed at the Quanta Site, which is located adjacent to the Hudson River. The work is expected to take approximately two to three years and cost $78 million.

Currently, soil and ground water at the site are contaminated with arsenic, lead, polycyclic aromatic hydrocarbons and volatile organic compounds resulting from over 100 years of industrial activities in the area. Exposure to these pollutants can have serious health effects, and in some cases, increase the risk of cancer.

"This agreement marks a major milestone toward finally cleaning up the industrial pollution legacy at the Quanta Site," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The settlement holds those responsible for the pollution accountable for the cleanup, and brings us closer to the future redevelopment of this site for the benefit of the people of New Jersey."

"The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers," said EPA Regional Administrator Judith A. Enck. "The EPA searches for parties responsible for the contamination and holds them accountable. This agreement is an important part of that process and a step in the right direction."

The Quanta site, located on River Road at the intersection of Gorge Road in Edgewater, was built as a coal tar facility beginning in the 1880s. In the 1970s, the site’s "tank farm" was used to store waste oil prior to reprocessing. The state of New Jersey closed the facility in 1981 when some storage tanks were found to contain waste oil contaminated with polychlorinated biphenyls. The EPA supervised a series of emergency actions at the site that included safely removing and disposing of millions of gallons of waste oil, sludge and contaminated water from the tanks, and cleaning and dismantling the emptied tanks and piping.

Because of the nature and complexity of the contamination, the EPA divided the investigation and cleanup into two phases – one addressing the contaminated soil and ground water, and the other focused on contamination in the river and sediment. The plan to address the contaminated soil and ground water was finalized in July 2010. The EPA took public comment for 60 days and considered public input before selecting a cleanup plan. This phase of the cleanup is addressed in the consent decree lodged today. A separate study of the Hudson River and sediment contamination will lead to a subsequent cleanup plan for the next phase.

The site contains an estimated 150,000 cubic yards of contaminated soil requiring treatment to protect people that may come into contact with it. Among other steps, the EPA will solidify and stabilize areas of soil contaminated with oily liquid and arsenic by turning them into leak-proof blocks underground. Throughout the cleanup, monitoring, testing and further studies will be conducted to ensure the effectiveness of the remedy.

Aside from Honeywell International Inc., the other parties that have agreed to the consent decree are, for the most part, waste oil generators whose wastes were disposed of at the Quanta site. They include: BASF Corporation; Beazer East Inc.; BFI Waste Systems of New Jersey Inc.; BorgWarner Inc.; Buckeye Pipe Line Co. LP; Chemical Leaman Tank Lines Inc. (now Quality Carriers); Colonial Pipeline Co.; Consolidated Rail Corp.; Exxon Mobil Corp; Ford Motor Company; General Dynamics Land Systems Inc.; Hess Corp.; Miller Brewing Co.; NEAPCO Inc.; Northrup Grumman Systems Corp.; Petroleum Tank Cleaners Inc.; Rome Strip Steel Co. Inc.; Quanta Resources Corp.; Stanley Black & Decker Inc.; Textron Inc.; and United Technologies Corp.

FEMA PHOTOS OF HURRICANE SANDY: THE DESTROYER OF WORLDS

FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
Staten Island, N.Y., Nov. 7, 2012 -- Boats are strewn on streets near the shore in areas impacted by Hurricane Sandy. FEMA is working with state and local officials to assist residents who were affected by Hurricane Sandy. Jocelyn Augustino/FEMA

Sea Bright, N.J., Nov. 6, 2012 -- A six foot deep pool at a seaside motel is filled up with sand dumped here by Hurricane Sandy. FEMA is working with state and local officials to assist residents who were affected by Hurricane Sandy. Photo by Liz Roll/FEMA

U.S. NAVY HARD AT WORK AFTER HURRICANE SANDY

FROM: U.S. NAVY
U.S. Navy Seabees works to repair pier facilities in Hobobken, N.J. The U.S. Navy has positioned forces in the area to assist U.S. Northern Command (NORTHCOM) in support of FEMA and local civil authorities following the destruction caused by Hurricane Sandy. U.S. Marine Corps photo by Cpl. Bryan Nygaard (Released) 121103-M-BS001-259

 

Chief Hull Maintenance Technician Micheal Binley from Scandinavia, Wis., assigned to the amphibious assault ship USS Wasp (LHD 1), cuts through a damaged ferry slip brace using an oxyacetylene torch, at Hoboken Transit Terminal, N.J. Wasp, USS San Antonio (LPD 17) and USS Carter Hall (LSD 50) are positioned in New York City harbor to provide relief support to areas affected by Hurricane Sandy. U.S. Navy photo by Mass Communication Specialist 1st Class James Stenberg (Released) 121103-N-KA456-220

FEMA SAYS INDIVIDUALS RECEIVED OVER $100 MILLION IN ASSISTANCE FOR HURRICANE SANDY DISASTER

FROM: FEMASoldiers from the 249th Engineer Battalion walk past their pumps in Battery Park in lower Manhattan, New York City, Nov. 2, 2012. The pumps are draining an underpass flooded by Hurricane Sandy. DOD photo by EJ Hersom

Latest Updates from the FEMA Blog: FEMA’s Assistance to Individuals Over $100 Million
Release date:
November 3, 2012
Release Number:
HQ-12-135
As many people across the Northeast and Mid-Atlantic continue to recover from Hurricane Sandy, members of the entire emergency management team, including the federal, state, tribal, and local governments, the faith based and non-profit communities, and the public, are working tirelessly to support those across the impacted area. As of this morning, more than 122,000 people have registered for disaster assistance and more than $107 million in assistance has already been approved. Here’s a breakdown of disaster assistance by state:
New York: over 69,000 registered; more than $75 million in assistance approved
New Jersey: over 49,000 registered; more than $31 million in assistance approved
Connecticut: over 2,400 registered; more than $368,000 in assistance approved
These numbers continue to increase as residential power is being restored and those affected are able to register for assistance with FEMA online, as well as through the 800 number. If you’ve live in an eligible county and have been affected by Hurricane Sandy, we encourage you to apply for assistance by calling 1-800-621-FEMA (3362) TTY 1-800-462-7585 or if you have access to the internet, applying online at www.disasterassistance.gov.

Additionally, as many people have been without power for several days, fuel continues to be a top priority for FEMA. Under direction of President Obama, the Defense Logistics Agency (DLA) purchased up to 12 million gallons of unleaded fuel and up to 10 million gallons of diesel fuel for distribution in areas impacted by the storm to supplement ongoing private sector efforts. Tanker trucks have distributed fuel throughout New York, New Jersey and other communities impacted by the storm. There are currently 10 fuel sites throughout New York and New Jersey where residents can refuel their cars and get gas for generators and other necessities. We are committed to continuing our support in Hurricane Sandy response and recovery efforts.

To read more and to view photos highlighting our ongoing response and recovery efforts as we work to assist those residents affected by Hurricane Sandy, see today’s FEMA Blog.

FORMER EXECUTIVE PLEADS GUILTY TO BID RIGGING MUNICIPAL TAX LIEN AUCTIONS IN NEW JERSEY

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, April 17, 2012
Former Executive of New York-Based Tax Liens Company Pleads Guilty to Bid Rigging at Municipal Tax Lien Auctions in New Jersey
WASHINGTON – A former executive of a New York-based tax liens company who supervised the purchasing of municipal tax liens at auctions in New Jersey pleaded guilty today for his role in a conspiracy to rig bids for the sale of tax liens auctioned by municipalities throughout the state, the Department of Justice announced.
A felony charge was filed today in the U.S. District Court for the District of New Jersey in Newark, N.J., against former Vice President Stephen E. Hruby, of Hainesport, N.J.  Under the plea agreement, which is subject to court approval, Hruby has agreed to cooperate with the department’s ongoing investigation.

According to the felony charge, from at least as early as December 2002 until approximately February 2009, Hruby participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to, and directing others to, allocate among certain bidders which liens each would bid on.  Hruby, and those under his supervision, proceeded to submit bids in accordance with their agreements and purchased tax liens at collusive and non-competitive interest rates.

“Today’s guilty plea demonstrates that the Antitrust Division will not tolerate illegal conduct that harms distressed homeowners,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The division will continue to prosecute the perpetrators of anticompetitive bid rigging schemes at municipal tax lien auctions in New Jersey and elsewhere.”

The department said that the primary purpose of the conspiracy was to suppress and restrain competition, in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates.  When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes.  If the taxes remain unpaid after a waiting period, the lien may be sold at auction.  State law requires that investors bid on the interest rate delinquent homeowners will pay upon redemption.  By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent.  If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.

According to the court documents, Hruby conspired with others not to bid against one another at municipal tax lien auctions in New Jersey.  Because the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate.  Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition.

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the statutory maximum.

Today’s plea is the seventh guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions.  On Aug. 24, 2011, Isadore H. May, Richard J. Pisciotta Jr. and William A. Collins each pleaded guilty to one count of bid rigging in connection with their participation in a conspiracy to allocate liens at New Jersey auctions.  On Feb. 23, 2012, Robert W. Stein and David M. Farber each pleaded guilty to one count of bid rigging.  On March 27, 2012, Robert E. Rothman pleaded guilty to one count of bid rigging in connection with his participation in this conspiracy.