New Jersey Governor Chris Christie was already in hot water over his aides’ involvement in the politically-motivated closure of lanes on the George Washington Bridge, as well as allegations that his administration strong-armed Hoboken mayor Dawn Zimmer into backing a real-estate project if she wanted to get more Hurricane Sandy relief money. Now comes word that investigators with the Securities and Exchange Commission and the Manhattan district attorney’s office into the funding of repairs to another major Tri-State Area bridge.
The investigation centers around the Pulaski Skyway, an 82-year-old span connecting Newark and Jersey City. One of the most notoriously unreliable roads in the nation, its eastbound lanes are currently closed for a two-year renovation project. It was funded by $1.8 billion of money from the Port Authority of New York and New Jersey. The problem? The Skyway is maintained by New Jersey, not the Port Authority, so New Jersey should have paid for the repairs. The state’s budget for transportation repairs was somewhat tight at the time, and Christie was unwilling to raise the gas tax to get more money. He turned to the Port Authority for help. However, Port Authority lawyers told Christie in no uncertain terms that due to covenants with the Port Authority’s bondholders and numerous court decisions, the Port Authority could not legally pay for the repairs.
However, Christie, true to his nature, announced in January 2011 that he intended to use money originally earmarked for a rail tunnel across the Hudson River in order to pay for repairs to the Skyway. Ultimately, Port Authority lawyers threw up their hands and cleared the use of the money, justifying it by claiming the Skyway was an access road to the Lincoln Tunnel. Never mind that the Lincoln Tunnel is almost 20 minutes (half an hour in typical commuter traffic) and nine miles from the Skyway.
Bond documents bill the repairs as “Lincoln Tunnel Access Infrastructure Improvements.” That characterization is what may potentially get Christie and the Port Authority in serious trouble. Manhattan district attorney Cyrus Vance, Jr. is reviewing whether that characterization violated New York state’s Martin Act, one of the most sweeping laws against financial fraud at any level in the nation. The law allows prosecutors in New York state to bring criminal charges if they find evidence that someone either lied about or left out material information in the sale of securities. Notably, prosecutors do not have to prove that there was any intent to defraud or that fraud even occurred–a very low bar to clear. New York courts have held that the law is aimed at acts and practices, not intent. Eliot Spitzer rose to fame by using this law to prosecute Wall Street executives. Vance’s office is involved because lawyers on both sides of the Hudson signed off on the justification, and also because the Port Authority was created by an interstate compact between New York and New Jersey. The SEC is conducting its own inquiry into the matter, though the two agencies are working together.
Christie used the money to plug a hole in New Jersey’s budget. According to a source close to the investigation, Vance and the SEC want to know whether this was an act of creative accounting or fraud. In an indication of how close the investigation is moving to Christie, one of the people who has been subpoenaed is former state attorney general Jeffrey Chiesa, best known for keeping Frank Lautenberg’s former Senate seat warm for Cory Booker. Chiesa was Christie’s chief counsel when the legal justification for using Port Authority money was drafted. While Chiesa himself is not a target of the investigation, if he’s already been subpoenaed it’s not a good sign for Christie.
I have long believed that Christie should resign for fostering the environment that made Bridgegate possible. After all, there is no other way that his staffers would have even attempted such a dangerous and outrageously criminal stunt. From the looks of it, this is yet more proof that Christie has little regard for the law. While Bridgegate has all but ended any realistic chance of Christie becoming president, this affair only proves that he is morally unfit to be a leader of any sort. After all, from the looks of it we’re talking about a man who essentially forced the Port Authority to make something legal that was clearly illegal. Not exactly the kind of person I’d want in the White House.
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Darrell Lucus is a radical-lefty Jesus-lover who has been blogging for change for a decade. Follow him on Twitter @DarrellLucus or connect with him on Facebook.
edited by tw
