2015 Annual Report John J. Hoffman, Acting Attorney General of This page was intentionally left blank OAG Annual Report Overview

Dear Governor Christie, members of the State Legislature and Citizens of New Jersey: Greetings. At the Office of the Attorney General, we have a unique role as both New Jersey’s lead law enforcement agency and its chief provider of legal representation to state government. That is, we are a multi-faceted crime-fighting agency and the State’s largest law firm rolled into one. Our essential mission includes making neighborhoods safer by combating violent crime, narcotics dealing, gang activity, sexual predators and other criminal threats. It includes prosecuting financial fraud and public corruption. It includes preserving civil rights and protecting consumers and investors. But the mission does not end there. We work to ensure the safety of drivers, passengers and pedestrians on our streets and roads. We ensure the integrity of New Jersey’s legalized gaming and industries. We license and regulate the alcoholic beverage industry, and are responsible for the custody, care and post-custodial supervision of juvenile offenders. We also handle – literally -- tens of thousands of litigation matters each year in the service of protecting New Jersey’s precious environmental resources, safeguarding our children, preserving the State’s financial assets, ensuring the integrity of elections and defending the actions of state government. We assist crime victims, provide emergency management services, work to protect New Jersey citizens from the threat of terror, and handle many other responsibilities as well. New Jersey is a state of more than 8 million people and a hub of national and international commerce, air travel and shipping. It is a center for manufacturing, education, health care, sports and entertainment, and a global vacation destination. Against this backdrop, it is not hyperbole to suggest the work of our office is essential, and touches the lives of millions of people daily. At the Office of the Attorney General, we have an incredibly skilled, knowledgeable and dedicated work force made up of civilian personnel and sworn law enforcement members. Each day we work to improve the quality of life throughout our state, and each day we achieve results that make a difference. For a fuller view of our office and its work, I invite you to explore the pages that follow, and to visit the individual Web sites of our various Divisions and Commissions. At the Office of the Attorney General, we are proud of our people and proud of our achievements. However, we also recognize that the office’s mission is a continuum, that there is always more to learn, and that there is always more to be accomplished. We work every day not only to address traditional law and public safety concerns, but to anticipate new crime trends and effectively address emerging threats. It is our privilege to serve the citizens of New Jersey.

John J. Hoffman Acting Attorney General

I New Jersey Office of The Attorney General • Department of Law & Public Safety

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Division of Law...... 2 Division of Criminal Justice...... 8 Division of State Police...... 20 Division on Civil Rights ...... 28 Division of Consumer Affairs ...... 36 Division of Highway Traffic Safety ...... 44 Division of Alcoholic Beverage Control...... 48 Division of Gaming Enforcement ...... 52 Juvenile Justice Commission ...... 60 Racing Commission...... 66

1 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Law Division of Law

The Division of Law provides legal counsel by other ExxonMobil facilities and service and representation to agencies of state stations throughout the state. The landmark government on many issues vital to the agreement, which resolved a decade of quality of life of New Jersey residents. These litigation between the State and ExxonMobil, issues include protecting children from abuse represents the single largest environmental and neglect, preserving the environment, settlement with a corporate defendant in ensuring the delivery of quality health care, New Jersey history. It also represents the protecting consumers and safeguarding civil second largest Natural Resource Damages rights. The Attorney General has a statutory payout by a single company in U.S. history. duty to serve as both legal adviser to all The settlement was approved by a New “officers, departments, boards, bodies, Jersey Superior Court Judge in August 2015. commissions and instrumentalities” of state MTBE Litigation: The State entered into government, and to defend state laws. It is two separate settlements worth a total of through the work of Division attorneys that $15.5 million that resolved litigation against this mission is accomplished. In 2015, the two defendants alleged to have caused Division handled approximately 39,000 groundwater contamination with the gasoline pending legal matters and resolved or closed additive MTBE (Methyl Tertiary Butyl Ether). 20,000 matters. Division attorneys also Acting on behalf of the Department of provided valuable legal advice to “client Environmental Protection, Division attorneys agencies” to assist them in avoiding potential previously had filed suit against multiple oil and legal issues. Through their actions on behalf chemical companies for causing damage to of the State and through legal defense work, New Jersey’s groundwater by manufacturing, Division lawyers also protected New Jersey’s blending and distributing MTBE. In 2015 State Treasury in such areas as employment one defendant, Lyondell Chemical Company, litigation, tort litigation, tax litigation and settled with the State for $13.4 million. A bankruptcy. To learn more about the Division second defendant, the global energy company of Law visit www.nj.gov/oag/law. Vitol, also settled with the State – for $2.15 million. Remaining defendants in the ongoing litigation include major petroleum refiners, Recoveries distributors and sellers of gasoline in New Jersey, as well as independent chemical and Judgments manufacturers of MTBE. Through the efforts of Division of Law attorneys, the State obtained more than Tidelands Cases: In 2015, Division $451 million in recoveries and judgments attorneys successfully defended the State’s in 2015. Monies obtained by the Division claim in the consolidated appeals in the on behalf of the State included settlements Lisowski and Delanco cases. At issue in those and judgments resulting from environmental cases was whether the State had perfected litigation, debt recovery, and lawsuits alleging its claims to certain tideland property within consumer, securities and other fraud, as well the time restriction established by the 1981 as other types of affirmative litigation. amendment to the New Jersey Constitution. The amendment applies to “lands that were formerly tidal flowed, but which have not Environmental been tidal flowed at any time for a period of 40 years.,” and precluded the State from Protection claiming such lands as riparian unless the ExxonMobil Settlement: Division State has “specifically defined and asserted attorneys, working closely with outside such a claim pursuant to law within the 40- counsel, negotiated a historic $225 year period.” Both the Lisowski and Delanco million settlement with ExxonMobil in cases challenged the sufficiency of the 2015 that resolved the company’s liability State’s proofs that it provided timely notice for environmental damage and injury to of its claim. The court found in both cases natural resources caused by contamination that the State had, in fact, complied with from ExxonMobil refinery operations in the 1981 amendment’s requirements. Bayonne and Linden. The settlement also addressed environmental harm caused

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times into its tracking system, thereby Pensions Litigation creating the appearance that packages were Burgos v. State: Division lawyers delivered by their guaranteed times when, successfully argued before the New Jersey in fact, they were not. A global package Supreme Court in 2015 that while the delivery company with its headquarters Legislature definitely wanted the State to in Georgia, UPS allegedly engaged in the pay billions of dollars into the pension fund unlawful conduct between 2008 and 2013 each year when it passed the 2011 law by inaccurately logging in delivery times on known as Chapter 78, the law would be premium-rate Next Day Air (NDA) packages unconstitutional if the State was forced to charged to State of New Jersey accounts. make this yearly payment. The Court held The result was that NDA packages appeared that a part of the Constitution known as in UPS’ tracking system to have been the Debt Limitation Clause prevents the delivered on schedule when, in fact, they Legislature from forcing the State to pay such were late. UPS employees also allegedly huge amounts year after year. The State used inapplicable or inappropriate “exception must be free each year to spend its money codes” to excuse the overdue deliveries. for its most pressing needs such as hospitals, Among the false reasons for delay cited schools and police protection. were security-related procedures, and that customers had requested late delivery. Chase Bank USA and Chase Bankcard Consumer, Securities Services: New Jersey received approximately $7 million as a result of its participation in a and other Fraud multi-state and federal settlement with Chase Standard & Poor’s: The Division reached Bank, USA and Chase Bankcard Services, a $21.5 million settlement with Standard Inc. that resolved allegations that Chase used & Poor’s on behalf of New Jersey as part false affidavits to support debt collection of a global settlement resolving allegations lawsuits and engaged in other deceptive, that the company violated the State’s collection-related business practices. Among Consumer Fraud Act and Advertising other unfair and misleading practices, Chase Regulations by misleading consumers about was accused of employing “robo-signed” debt its independence and objectivity in rating collection affidavits – affidavits from staffers structured finance securities. Under the who either had no direct knowledge of, or global settlement, Standard & Poor’s paid had not authenticated the information in, the New Jersey, 18 other states, the District affidavits – when creating case files against of Columbia and the U.S. Department of consumers it was suing over unpaid debt. Justice a total of $1.375 billion to resolve the lawsuits filed against it. The settlement Accutest Laboratories: Middlesex-county- resolves allegations that Standard & Poor’s based Accutest Laboratories agreed in harmed consumers by falsely claiming to 2015 to pay the State $2 million to resolve be an independent source of analysis on allegations that it deviated from both state complex investments known as structured and federal requirements for the extraction finance securities when, in fact, its ratings and testing of certain compounds while doing of the securities were driven by its own testing work for the New Jersey Department revenue goals, as well as favoritism toward of Environmental Protection. Allegations investment banking clients who issued central to the case flowed from a federal qui securities and paid the company related tam or “whistleblower” lawsuit filed in 2013 fees. In addition to its settlement payout, by a former Accutest employee. The federal Standard and Poor’s agreed to injunctive lawsuit alleged that Accutest violated both the relief against future violations of New federal and New Jersey False Claims Acts by Jersey’s consumer protection laws. contracting with government agencies to test certain semi-volatile organic compounds, but United Parcel Service: The Division not following U.S. Environmental Protection reached a $740,000 settlement with United Agency requirements for doing so. Specifically, Parcel Service (UPS) to resolve allegations the lawsuit alleged that some line-level it violated the New Jersey False Claims Act. technicians in Accutest’s extraction laboratories Specifically, UPS was accused of avoiding failed to comply with Standard Operating payment of contractually-promised refunds Procedures or prescribed testing methods. for late delivery by entering false delivery 4 Division of Law

Vincent P. Falci Judgment/Restitution: In September 2015, the Division obtained Third-Party Energy a judgment against former Middletown fire chief Vincent P. Falci related to his Supplier Litigation having fraudulently raised more than HIKO and Systrum: In 2015, the Division $5.4 million from the sale of unregistered of Law achieved significant settlements with securities to approximately 185 investors. two third-party suppliers of electricity and Falci misrepresented to those who bought gas – HIKO Energy, LLC and Keil & Sons, the securities that their money would be Inc. d/b/a Systrum Energy. The State’s invested primarily in tax liens. In reality, Falci original complaints against the two third-party transferred much of the money to other suppliers alleged violations of the Electric companies he owned and used a portion of Discount and Energy Competition Act, as well the money to buy residential property in his as violations of several other state energy own name. In addition, Falci and his son used and consumer protection statutes. Under some of the misallocated money to engage the HIKO settlement, HIKO agreed to a $2.1 in day trading. A Consent Order issued by million payout, including approximately $1.8 the court against Falci, his companies and million in consumer restitution. As part of his family included a judgment and promise the settlement, HIKO also was required to of full restitution to Falci’s investors totaling substantially change its business practices more than $6.7 million, and a civil monetary to provide for greater consumer protection. payment of $800,000. Under the Systrum settlement, Systrum agreed to an overall payout of $554,000 Amgen: The Division of Law obtained including $436,000 in restitution, $50,000 $1.57 million as a result of its participation in civil penalties and more than $68,000 in a multi-state settlement with pharma- in attorneys’ fees and costs. As part of the ceutical manufacturer Amgen that resolved settlement Systrum, like HIKO, was required allegations the company unlawfully to modify its business practices to provide for promoted two of its drugs – Aranesp and greater consumer protection. Enbrel – for uses not approved by the federal Food and Drug Administration. Among other things, Amgen was accused of promoting Aransep for off-label use in Internet Privacy treating patients with anemia caused by The Division of Law continued its vigorous cancer, despite clinical evidence that failed efforts to safeguard consumer privacy over to support such a use. Amgen also was the Internet in 2015, as evidenced by several accused of overstating the effectiveness of significant case settlements including: its drug Enbrel for treating certain types of DealerAppVantage Settlement: In psoriasis while understating the drug’s risks. September 2015, the Division entered into Stericycle, Inc.: Division of Law attorneys a settlement with DealerAppVantage LLC obtained approximately $589,000 as the that resolved allegations the company’s State’s portion of a multi-state settlement mobile applications transmitted personal that resolved allegations Stericycle, Inc., and other consumer information to the app an Illinois-based medical waste disposal developer without consumers’ knowledge company, committed federal and state or consent in violation of the New Jersey False Claims Act violations by imposing Consumer Fraud Act. In addition to injunctive unwarranted surcharges on government relief and reporting requirements, DealerApp customers. In New Jersey, Stericycle has agreed to a settlement payment of $48,000, provided medical waste disposal services which incorporated civil penalties and to government entities including colleges, reimbursement of attorneys’ fees and school districts, police departments, health investigative costs. Based upon DealerApp’s departments and correctional facilities. compliance with the investigation, the Division suspended approximately $26,000 of the total settlement payment.

5 New Jersey Office of The Attorney General • Department of Law & Public Safety

Equiliv Investments: In June 2015, the Civil Insurance Fraud Recovery: Division Division filed a joint complaint with the Federal of Law attorneys represent the Bureau of Trade Commission in the U.S. District Court Fraud Deterrence (within the Department of for the District of New Jersey alleging that Banking and Insurance) in prosecuting civil Equiliv Investments, LLC developed a mobile insurance fraud cases. In calendar year 2015, application called “Prized” that created a the Division obtained orders for fines, attorney botnet (a number of Internet-connected fees and costs totaling $2.69 million, and devices that have been set up to forward restitution of more than $329,000. In one transmissions – including spam and other notable case, chiropractor Scott Greenberg viruses – to other computers/devices on the settled allegations of civil insurance fraud Internet) of consumers’ mobile phones for related to his criminal conviction for using purposes of mining for cryptocurrency without “runners”to illegally recruit and treat 164 the consumers’ knowledge or consent, in patients at his chiropractic facility. Greenberg violation of the Consumer Fraud Act and the previously was convicted of various crimes by Credit Repair Organizations Act. In addition, the Office of the Insurance Fraud Prosecutor the Division simultaneously obtained a joint and, in 2015, paid a total of $500,000 to Stipulated Order for Permanent Injunction and resolve the State’s civil action to impose Monetary Judgment to resolve the action. monetary penalties. Greenberg paid a total Stipulated Order provides for substantial of $450,000 in civil penalties, an insurance injunctive relief and extensive reporting surcharge of $22,500 and attorney fees requirements, as well as a total penalty of of $27,500. The fines were paid via the $50,000. Out of the total penalty, $44,800 proceeds of the auction sale of Greenberg’s was suspended pending Equiliv’s compliance Princeton-area estate. with the Stipulated Order. Camden Waterfront Development: The Division of Law worked closely with the New Jersey Economic Development Authority Other Highlights (EDA) on transfer of the development Child Protection: In 2015, the Division of rights for the Camden Waterfront to a new Law’s Department of Children and Families developer. The right to develop a large (DCF) Practice Group continued to work closely portion of the waterfront had been granted to with the State’s Department of Children and a subsidiary of the Steiner Company in 2005. Families to protect children from abuse and The development agreement was for a period neglect, and to seek termination of parental of 12 years, and included monetary and rights when necessary. Through litigation, construction milestones. Although the Steiner Division attorneys also facilitated DCF’s ability subsidiary had met its milestones in the to find caring adoptive families for children early years of the agreement, it was on the when their biological parents were unable verge of defaulting in 2015. Liberty Property to safely care for them. As a result of these Trust, a successful Philadelphia developer, efforts, more than 1,000 children were adopted expressed interest in buying the development following successful termination of parental rights, but this was not permitted under the rights. For the year, Division lawyers filed more development agreement. The Division of Law than 6,000 child abuse and guardianship cases and EDA worked closely with the entities to in Superior Court to protect children, institute oversee Liberty Property Trust’s purchase of services for families or, if necessary, place the Steiner subsidiary, which allowed Liberty children in protective custody or guardianship. to step into Steiner’s shoes. Physician Licensure Actions: The Division Legal Challenge to the Horizon Blue Cross/ of Law litigated numerous medical licensing Blue Shield OMNIA Network: In a high-profile matters before the New Jersey Board case, the Division successfully defended a of Medical Examiners in 2015. Through determination by the state Department of those efforts, the Division obtained license Banking and Insurance to approve Horizon suspensions against four physicians found to Blue Cross/Blue Shield’s new OMNIA Network, have indiscriminately prescribed prescription which took effect during the 2016 calendar pain killers. In addition, Division attorneys year. The OMNIA Network is a tiered health obtained license suspensions against two insurance network which charges consumers other physicians for inappropriate sexual lower premiums and out-of-pocket costs relations/touching. when they seek care from a specified list of 6 Division of Law

“preferred” hospitals and doctors. In 2015, transfers of New Jersey non-profit hospital a total of 11 hospitals in the non-preferred assets pursuant to CHAPA, as well as the tier of the OMNIA Network filed an appeal common law. In 2015, the DOL reviewed and of the State’s approval, as well as a Motion completed several complex transactions, to Stay implementation of the new Network including the sale of St. Clare’s Health System pending the outcome of its legal opposition. to a subsidiary of Prime Healthcare Services, Acting on an expedited basis, the Appellate Inc., a for-profit, California-based corporation. Division denied the request for stay and Charities Review: The Attorney General, in upheld DOBI’s approval “in all respects.” his role as protector of the public interest in In doing so, the court ruled that the OMNIA charitable gifts, receives hundreds of notices Network was established under DOBI’s review annually of such gifts made by decedents. in “strict accordance with the current statutes The Division reviews related accountings to and regulations.” The court further observed ensure that these charitable gifts are not that the non-preferred tier hospitals held a reduced due to overstated fees, commissions view of how tiered benefit networks should be or other improper charges. In a notable implemented that can “only be addressed by 2015 case, after a year of litigation, the the Legislature.” In response to the Appellate DOL reached a favorable settlement in IMO ruling, the 11 non-preferred hospitals filed a Ogburn, resulting in most of the decedent’s petition for certification with the New Jersey estate being paid to charity. Plaintiffs Supreme Court. That petition was denied. (decedent’s longtime caregivers) attempted Banking, Insurance Industry Enforcement: to probate a handwritten document, seeking The Division handles cases involving the the majority of decedent’s estate as opposed Department of Banking and Insurance’s to decedent’s 2006 executed will, which disciplinary action against individuals and left her estate to charities to be named. corporations licensed by DOBI for violation Based on the Division’s discovery and the of New Jersey’s banking and insurance subsequent settlement, the decedent’s laws. During calendar year 2015, Division donative intent was met and the American attorneys obtained 40 license revocations Indian Educational Fund, League of Women and more than $4.6 million in fines, costs Voters, Sierra Club and American Cancer and restitution on behalf of the department. Society shared approximately $400,000. In one notable case, the Division obtained Debt Recovery and Protecting the State’s license revocations, $165,000 in civil Financial Assets: In 2015, the Division’s Debt penalties and more than $2.5 million in Recovery Section collected more than $12 restitution from Nancy Zeiring, Madison million through litigation efforts in both state Financial Aid Consultants, Alan Neafach and and federal court, as well as post-judgment Ameritas Insurance Co. Zeiring and Nefach collection actions brought on behalf of various had been encouraging the parents of high state agencies. The post-judgment collection school students to purchase Universal Life efforts included seizing assets, filing wage Insurance policies with the proceeds of execution applications and filing motions to refinanced mortgages and other investments secure funds. The majority of the Division’s as a means of paying for college expenses. debt recovery work is done on behalf of the In reality, the policies at issue were longer- Division of Taxation, the Department of Labor term investments and entirely unsuitable and New Jersey Transit. for financing college for high school students. Investors were forced to pay huge “surrender” penalties to liquidate the policies, resulting in millions of dollars in losses when they’d been led to believe their investment would help pay for college. Zeiring and Neafach agreed to license revocations and Ameritas Insurance agreed to pay restitution to those parents who suffered losses. Community Healthcare Asset Protection Act (CHAPA): On behalf of the Attorney General, the Division reviews many sales and other

7 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Criminal Justice Division of Criminal Justice

New Jersey’s unified, integrated system of law enforcement is unique in the Gangs & Organized nation. The Criminal Justice Act of 1970 designated the Attorney General as the Crime Bureau Chief Law Enforcement Officer of the Highlights State. Under the Act, the powers of the Attorney General relating to the detection, Drugs, Gangs and Weapons interdiction and prosecution of criminal Operation Next Day Air: Two activities are exercised through the Division men were sentenced to lengthy prison terms of Criminal Justice. In addition to its direct in 2015 for their roles in a coast-to-coast law enforcement operations, the Division narcotics smuggling ring that was revealed provides oversight and coordination through an investigation nicknamed within New Jersey’s vast law enforcement Operation Next Day Air. In all, the Division community. The Division’s mission is to obtained indictments against 15 defendants protect the residents of New Jersey by helping in connection with the ring, which employed to coordinate and enhance the operations the U.S. mail and other parcel services to and policies of law enforcement at all levels deliver dozens of kilograms of cocaine from – state, county and municipal. For more California to New Jersey. Sentenced in July information visit www.nj.gov/oag/dcj. 2015 were defendants Juan M. Cortez of Vineland and co-defendant Angel B. Rivera, Overview also of Vineland. Cortez received an eight- year prison term and Rivera was sentenced In 2015, the Division of Criminal Justice to 10 years in prison. Both men had pleaded cemented its standing as the state’s leading guilty to charges of first-degree cocaine law enforcement agency. The Division’s possession with intent to distribute. Other work on the streets and in the courtroom defendants in the case included brothers resonated forcefully throughout New Jersey Andrew and Kemar Davis, who were charged communities, and for the third year in a as leaders of the narcotics trafficking row, the Division charged more cases and conspiracy. Andrew Davis directed the ring more defendants than in the prior year. from Jamaica. In total, the Division seized Meanwhile, the Division’s groundbreaking 26 kilograms of cocaine – worth more than criminal justice policy work placed the State $750,000 – plus two handguns and more at the national forefront on such crucial than $500,000 cash. Kemar Davis pleaded law enforcement issues as accountability, guilty to first-degree charges of being a transparency and community relations. leader of a narcotics trafficking network Among other successes, the year 2015 and was sentenced to 20 years in state saw the Division prosecute sweeping prison, with 12 years of parole ineligibility. cases against violent street gangs, bring Andrew Davis was convicted of first-degree the architects of multi-million-dollar fraud drug distribution and second-degree money schemes to justice, convict dozens of laundering, and at this writing faces a state corrupt public officials, and unmask – and prison term of 30 years. prosecute – dozens of dangerous sexual predators. The Division also seized more State v. Dr. George Beecher, et al.: In than $4 million and more than 25 vehicles December 2015 the Division arrested seven from criminals, and obtained judgments defendants – including Somerset County forfeiting $2 million. physician Dr. George Beecher – in connection with a drug distribution ring that disbursed tens of thousands of high-dose pills of the addictive painkiller oxycodone. Beecher allegedly accepted payments to write fraudulent oxycodone prescriptions for people he had never met or examined, and the other ring members then acquired and sold the painkillers in bulk to street level dealers.

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State v. Dr. Eugene Evans, et al.: The Organized Crime Division arrested and convicted Dr. Eugene Operation Fistful: In 2015, the Division Evans, a Union County physician, in 2015 continued to investigate and prosecute on charges of conspiring with a drug dealer Operation Fistful, a major organized crime to illegally distribute thousands of high-dose takedown. In all, 11 defendants were charged pills of the addictive painkiller oxycodone by in a racketeering case that began with writing phony prescriptions for people the multiple arrests carried out in late 2014. doctor had never examined or treated. Evans Those arrested included high-ranking “made” was arrested in January, pleaded guilty in members and associates of the Genovese April, and was sentenced in July to five years Organized Crime Family, and they were in state prison. David Roth, a drug dealer charged with numerous indictable offenses who conspired with Evans, pleaded guilty including racketeering and conspiracy. to second-degree charges of conspiracy Among those arrested were Genovese Crime and distribution of controlled dangerous Family “capo” Charles “Chuckie” Tuzzo, and substances. He was sentenced to seven Vito Alberti, a Genovese soldier. The Division years in state prison. alleges that Tuzzo, Alberti and the other nine State v. Jorge Avalos, et al.: Defendant Jorge defendants used a network of licensed and Avalos, of Edinburg, Tx., was sentenced to unlicensed check cashing businesses to 10 years in State Prison in January 2015 conduct a massive criminal enterprise that in connection with a narcotics trafficking included loansharking, , forgery and investigation carried out by the Division in money laundering. connection with . These various criminal enterprises Avalos was arrested after law enforcement allegedly generated more than $10 million in officers seized 21 kilograms of cocaine from proceeds for the mafia. The 11 defendants a Winnebago recreation vehicle in Jersey face multiple charges including first-degree City. The intercepted shipment of cocaine racketeering, which carries a sentence of had a street value of more than $600,000. between 10 and 20 years in state prison. A second defendant in the case, Luis Indictments were anticipated in 2016. Hernandez of Hidalgo, Tx., was sentenced on the same day as Avalos, and also received Operation Heat: Six members of the New- a 10-year prison term. Both defendants York-based Lucchese Organized Crime Family pleaded guilty to a charge of unlawful pleaded guilty in June 2015 to racketeering narcotics trafficking, and both were handed a charges. The six men were charged in three-year term of parole ineligibility as part Operation Heat, an investigation by the of their sentences. Division into an illegal, mob-run gambling enterprise that handled billions of dollars State v. Paul Cano, et al: The Division in wagers – primarily on sporting events charged eight defendants with narcotics – and relied on extortion and violence to offenses in 2015 for their respective roles in collect debts. The same investigation also a drug distribution network. Numerous search uncovered a scheme in which a former New warrants were issued in connection with the Jersey corrections officer and a high-ranking case, and subsequent searches resulted member of the Nine Trey Gangsters set of in the seizure of a kilogram of cocaine and the Bloods street gang had entered into an a handgun. Lead defendant Paul Cano, of alliance with the Lucchese family to smuggle New Brunswick, pleaded guilty to first-degree drugs and pre-paid cell phones into East narcotics distribution charges and faces a 10- Jersey State Prison. Among the defendants year prison sentence as of this writing. who pleaded guilty, ruling Lucchese family member Matthew Madonna pleaded guilty to second-degree racketeering and was sentenced to five years in state prison. Defendant Ralph Perna, a Lucchese capo, pleaded guilty to first-degree racketeering and was sentenced to eight years in state prison. A third defendant – Martin Taccetta, a former Lucchese family underboss in New Jersey

10 Division of Criminal Justice

– pleaded guilty to first-degree racketeering State v. Denise Nagrodski: Accused murder- and was sentenced to eight years in state for-money schemer Denise Nagrodski prison. Taccetta was already serving a life pleaded guilty in June 2015 to first-degree prison sentence at the time of his guilty plea. attempted murder and murder conspiracy, Under his plea deal, his eight-year sentence and was sentenced to 10 years in prison. for racketeering will run concurrent. Nagrodski admitted to hiring someone she Operation Terminal: A former top thought was a hit man – the “hit man” was International Longshoreman’s Association actually an undercover detective – to kill official – one of three defendants indicted as her daughter’s ex-boyfriend and two other the result of an extensive Division investigation individuals. Nagrodski met twice with the into criminal activities at the Port of New York undercover officer who she thought was a and New Jersey – was sentenced to six years killer-for-hire. During those meetings she in state prison in April 2015. Nunzio LaGrasso, gave the officer $1,000, as well as photos of of Florham Park, had pleaded guilty in January the intended victims and a hand-drawn map 2015 to a second-degree charge of conspiracy of their homes. Nagrodski’s 10-year prison to commit commercial bribery and money sentence includes an eight-and-a-half-year laundering. LaGrasso was indicted along term of parole ineligibility. with Alan Marfia ,of Kenilworth – a former Human Trafficking Newark Police officer – and Rocco Ferrandino, of Lakewood, a timekeeper at Port Newark/ State v. Glen Bowman, et al.: In 2015, the Port Elizabeth. The three men were charged Division indicted five defendants accused of with running a scheme to extort money from operating a human trafficking ring based in dockworkers by demanding “tribute” payments Bergen and Passaic counties. The defendants in return for better jobs and wages. Ferrandino trafficked underage girls as part of a sex-for- pleaded guilty to charges of second-degree sale ring they advertised on Backpage.com. conspiracy to commit commercial bribery The defendants allegedly lured the underage and money laundering, and was sentenced girls into lives of prostitution, coercing them in March 2015 to three years in state prison. into having sex with multiple customers Marfia pleaded guilty to third-degree computer at motels and elsewhere, and threatening theft for using police databases to inform others violence if the girls resisted. The defendants about undercover police operations. He was were charged with first-degree human sentenced to probation and barred from future trafficking and other crimes. law enforcement or other public employment. State v. Michael McLeod, et al.: The Division indicted four defendants on first- Murder and Murder-for-Hire degree human trafficking charges in 2015 State v. Yusuf Ibrahim, et al.: Yusuf for trafficking numerous young women Ibrahim of Jersey City was indicted in April – including a 14-year-old girl – as part of 2014 on two counts of first-degree murder a prostitution ring they operated in and and other charges in connection with his around Hudson County. The defendants having fatally shot two men in the chest were charged with using violence and at point-blank range, cut off their heads threats of violence – including holding a and hands, and buried their remains in gun to the head of one woman – to control a remote area of Atlantic County a year their victims and compel their involvement earlier. In December 2015, a Superior in the sex-for-sale ring. Court Judge ruled that Ibrahim’s confession to State Police investigators was admissible as evidence in his future murder trial. (Ibrahim faced a sentence of 30 years to life in state prison if convicted at trial.) His statement to State Police investigators, which he had unsuccessfully sought to suppress, was that he killed the two men during an argument that took place inside a car in Jersey City in February 2013.

11 New Jersey Office of The Attorney General • Department of Law & Public Safety

Corruption Bureau Highlights State v. Lawrence Durr: In 2015, the Division continued its corruption prosecution State v. Birdsall Services Group: The of Lawrence Durr, a longtime mayor, township Division continued its prosecution in 2015 committeeman and planning board member of Birdsall Services Group, its CEO and six in Chesterfield Township, Burlington County. other top executives for conspiring to subvert Durr was accused of entering into an New Jersey’s Pay-to-Play Act by disguising undisclosed deal to sell the transferrable illegal corporate political contributions as the development rights on a large farm to a personal contributions of Birdsall employees. developer, then using his official positions to Under the scheme, Birdsall and its executives advance the developer’s plan to build a major utilized firm employees to make political residential and commercial project. Durr contributions to candidates in amounts received hundreds of thousands of dollars in under the $300 reportable threshold. illicit benefits through the arrangement. The firm and its executives then illegally reimbursed the employees through purported State v. Elias Chalet: The Division charged bonus payments and other means. Through Elias Chalet, a Bloomfield Township this process, Birdsall made hundreds of councilman, with soliciting and accepting thousands of dollars in illegal contributions two bribes totaling $15,000 from a business to dozens of officials and candidates. Beyond owner. In exchange for the money, Chalet the seven charged executives who were allegedly promised to use his position indicted, two former Birdsall employees on the township council to ensure that pleaded guilty to participating in the unlawful the municipality proceeded with its pay-to-play scheme. In addition Birdsall, as planned purchase of the business owners’ a corporate entity, pleaded guilty to a first- commercial property. degree money laundering charge, and to State v. Gaudner Metellus, et al.: The a second-degree charge of making false Division obtained a public corruption guilty representations in government contracting. plea in 2015 from one of the State’s own, Birdsall also forfeited $3.6 million to the as Department of Transportation senior State in criminal and civil forfeitures and engineer Gaudner Metellus admitted to penalties, and was debarred from holding charges related to a kickback scheme. public contracts for 10 years. At one time, Metellus and an accomplice, New York the Birdsall firm held millions of dollars in attorney Ernest DuBose, devised and carried contracts with the State for engineering out the scam. It involved seeking to profit by services. It filed for bankruptcy under Chapter fraudulently inflating the cost of the Eagle 11 in 2013 and was subsequently sold. Rock Railroad Bridge repair in Roseland – a State v. Robert Schroeder: The Division State-funded project – and seeking hundreds continued its prosecution in 2015 of former of thousands of dollars in kickbacks from the State Assemblyman Robert Schroeder on company hired to handle the job. Metellus charges of stealing more than $5 million pleaded guilty in January 2015 to charges by defrauding investors and writing bad of second-degree official misconduct, and checks to business associates and service was sentenced to three years in state prison providers. Assemblyman Schroeder was (including two years without parole.) He also indicted on multiple charges including forfeited his DOT job and state pension, and misconduct by a corporate official and was permanently barred from future public theft by deception. Division prosecutors employment. Dubose went to trial in April were prepared to try the case in September 2015 and was convicted by a jury of second- 2015, but a Superior Court judge agreed degree bribery, official misconduct and other to a request from Schroeder’s attorney charges. He was subsequently sentenced to to postpone the trial until 2016 after a six years in state prison. discovery-related issue arose.

12 Division of Criminal Justice

State v. Timothy Grossi, James Wiley, commercial bribery, respectively, and were Troy Bunero and Francis Longo: The each sentenced to 90 days of county jail Division tried and convicted two North time. Former Hudson County sheriff’s Bergen Department of Public Works (DPW) officer William Chadwick was sentenced to supervisors – Troy Bunero and Francis five years in prison as a result of his guilty Longo – on corruption-related charges plea to second-degree official misconduct. in 2015. Supervisors Bunero and Longo Another former Hudson County sheriff’s both were found guilty by a Hudson County officer, Alberto Vasquez, was sentenced to jury of official misconduct, theft and other 90 days of county jail time as a condition offenses for having public works personnel of four years’ probation. Vasquez had carry out personal and political tasks for earlier pleaded guilty to a third-degree them on municipal time. Specifically, Bunero official misconduct charge. Two additional and Longo assigned subordinate public defendants – former insurance company employees to work on election campaigns, executive John Sullivan and George and to complete personal chores or Formoe, a third employee of Mikhaeil’s projects for them or their boss, former DPW fugitive recovery business – pleaded guilty Superintendent James Wiley. Bunero and to pre-indictment charges that included Longo were convicted on all counts at trial, commercial bribery, money laundering and and each was subsequently sentenced to tampering with witnesses or informants. five years in state prison with no eligibility State v. Laquanda Tate: Former state for parole. Defendant Timothy Grossi, the Department of Human services senior former Deputy Director of North Bergen payroll clerk Laquanda Tate pleaded guilty DPW, was scheduled to face similar charges in 2015 to using a state-issued computer at trial in 2016. Former DPW Superintendent to generate false insurance cards for Wiley has pleaded guilty to a charge of herself and three others. Tate also stole conspiracy to commit official misconduct public assistance benefits by creating false and, at this writing, is awaiting sentencing. documents to claim childcare expenses. State v. Adel Mikhaeil, et al.: The Division Tate pleaded guilty to third-degree theft convicted former bounty hunter Adel Mikhaeil by deception and a third-degree charge and five other defendants – including two of unlawfully simulating a motor vehicle Hudson County Sheriff’s Officers – on card. Among other acts, Tate created fake criminal charges related to their involvement notarized letters from child care providers in a scheme to defraud bail sureties into which she used to apply for upwards of paying Mikhaeil higher fees for capturing $4,000 in public assistance benefits. As of fugitives than he was legally due. Mikhaeil, this writing, Tate is awaiting sentencing. of Stroudsberg, Pa., conspired with the two State v. Anthony Christaldi: The Division Hudson sheriff’s officers to have them sign tried and convicted Anthony Christaldi of fake “body receipts” indicating that Mikhaeil Cape May Courthouse in 2015 on charges had captured and turned in fugitives who, in related to his attempted $10,000 bribe reality, had already been apprehended by law of a Casino Reinvestment Development enforcement and were in custody. Authority (CRDA) employee. Christaldi Based on these fraudulent body receipts, delivered cash to the CRDA employee as an companies that insured the fugitives’ bail intended bribe to ensure the CRDA would bonds paid Mikhaeil fees to which he was pay him his requested purchase price for a not entitled. On the eve of trial in January property he sought to sell to the agency’s 2015, Mikhaeil pleaded guilty to multiple land bank program. (The agency had advised second-degree charges, including official Christaldi his asking price was too high.) misconduct, conspiracy and commercial Upon Christaldi’s delivery of an attempted bribery. He was sentenced to six years in cash bribe, the CRDA employee contacted state prison for his crimes. Trevor Williams, law enforcement. Christaldi was subsequently an employee of Mikhaeil’s fugitive recovery convicted of second-degree bribery at a jury business, and James Irizarry, a former trial in October 2015, and was sentenced to insurance company employee, pleaded five years in state prison. guilty to hindering apprehension and

13 New Jersey Office of The Attorney General • Department of Law & Public Safety

multiple thefts. Among other examples, the Specialized Crimes thieves followed a jewelry dealer from a trade show in Mount Laurel and later broke into her Bureau Highlights car when she stopped at a service area along Auto and Cargo Theft the New Jersey Turnpike in Salem County. Operation 17 Corridor: In 2015, the Division In other cases, the thieves stole jewelry broke up a massive international carjacking by distracting a retail clerk or by simply and car theft ring that had been stealing reaching over the counter. Each of the seven luxury vehicles from New Jersey and New defendants faces second-degree racketeering York for resale overseas. In all, the Division charges, as well as charges of second-degree charged 23 defendants, including leaders of shoplifting and third-degree burglary. the organization, shippers, fences, carjackers, Casino Crimes car thieves and wheel men. The defendants, who worked together in teams to identify and State v. Barbara Lieberman, et al.: In March then steal high-end luxury vehicles, face a 2015 Barbara Lieberman, an Atlantic County multitude of criminal charges. Those charges attorney specializing in senior law, was include first-degree racketeering, first-degree sentenced to 10 years in prison for her role as carjacking and first-degree money laundering. mastermind of a scheme in which Lieberman While the theft ring’s method for stealing cars and several accomplices stole money from varied, a Division investigation found that unwitting elderly victims. Lieberman and her violence was often employed – including the co-defendants, who purported to run an elder theft of some vehicles at gunpoint. On other care business, obtained powers of attorney occasions, the ring committed “soft steals,” from senior citizens and then drained including the theft of running vehicles at their bank and retirement accounts. The airports, carwashes, stores and valet stands. defendants used their ill-gotten gains to fund The defendants then shipped the stolen cars personal expenses – including the purchase from ports in New Jersey and New York to of luxury autos and homes. Charged in countries in West Africa, where such vehicles addition to Lieberman were two county command premium prices. In all, the Division services caseworkers, Jan Van Holt and recovered approximately 90 cars worth a William Price. They were accused of using total of more than $4 million as a result of their positions to identify and refer potential Operation 17 Corridor. victims to the conspirators. Other defendants included a physician, Maria Daclan, who Operation Midnight Run: In June 2015, the made false statements to police during the Division indicted 12 persons in connection investigation. Altogether, Lieberman and her with the theft of at least nine tractor-trailers co-defendants stole more than $3 million carrying more than $1.5 million worth of from at least 10 victims, many of whom cargo. The theft ring stole cargo that included died in substandard housing after losing clothing, auto parts, perfume, beer and other their life savings. Lieberman pleaded guilty items. The merchandise was subsequently to first-degree money laundering, and her fenced by the thieves for profit. Those 10-year prison sentence includes a three- indicted were charged with first-degree and-a-half-year parole exclusion. Lieberman money laundering, second-degree theft and also permanently forfeited her law license, third-degree burglary. At this writing, four and forfeited $3 million, which will be of the defendants have pleaded guilty to used to repay her victims or their surviving charges of second-degree receiving stolen family members. Defendant William Price property. Disposition of the other eight pleaded guilty to second-degree theft by defendants remains pending. deception and was sentenced to five years Operation Pandora: In July 2015, the in state prison. At this writing, the remaining Division indicted seven defendants who ran defendants are awaiting trial. an organized retail theft ring that stole more than $800,000 worth of jewelry in New Jersey and five other states. The defendants allegedly used various means to commit

14 Division of Criminal Justice

State v. Izyiah Plummer, et al.: In August Atlantic City Task Force 2015, the Division indicted five persons in connection with the armed robbery of a kiosk State v. Saleem Hamilton, et al.: As the at Caesar’s Atlantic City Casino that yielded result of an eight-month investigation by more than $180,000. The armed robbery plot the Division’s Atlantic City Task Force, a total was led by Izyiah Plummer, a former security of 20 defendants were charged in connection guard at Caesar’s whose employment had with a major heroin ring – based in Paterson been terminated prior to the July 2014 crime. – that was responsible for dealing Plummer, of Atlantic City, and an accomplice approximately 30,000 doses of heroin allegedly robbed a Caesar’s security officer at per month to buyers in Ocean and Atlantic gunpoint. The security officer was changing Counties. Members employed at least one out cash boxes at a voucher redemption juvenile to sell the ring’s heroin – which was machine on the casino floor. Plummer and often cut with the deadly drug fentanyl. They the other defendants were indicted on also made heroin deals in front of young charges of first-degree robbery, second- children and accepted public assistance degree aggravated assault and second- subsidies as payment for the drug. During degree weapons offenses. the April 2015 arrests of ring members, investigators seized more than 16,000 bags State v. Christian Lusardi: In October 2015, of heroin and more than $52,000 cash. a Superior Court Judge sentenced Christian The defendants are charged with first-degree Lusardi to five years in state prison for using possession with intent to distribute heroin, millions of dollars in counterfeit poker chips second-degree conspiracy, second-degree in a poker tournament at the Hotel unlawful possession of a firearm, and other Casino in Atlantic City in 2014. The scheme narcotics and firearms charges. was discovered when Lusardi clogged a pipe at the casino by flushing hundreds of chips State v. Eduardo Colon-Lopez: An down the toilet in his room. Lusardi pleaded Atlantic City Task Force investigation into guilty to second-degree counterfeiting drug trafficking in Atlantic City led to the charges brought by the Division in August sentencing of a Philadelphia man to 10 years 2015. In addition to the five-year prison term, in prison. Eduardo Colon-Lopez was indicted Lusardi was ordered to pay restitution in the in March 2015 for trying to sell a kilogram amount of $463,540. As a result of Lusardi’s of cocaine (worth approximately $40,000) actions, the poker tournament – the Borgata to an undercover investigator in the parking Winter Poker Open – was canceled, and lot of the Deptford Mall. He subsequently Borgata refunded all player entry fees. pleaded guilty to a charge of first-degree cocaine possession with intent to distribute, State v. Lena Guralnik: The Division indicted and was sentenced in September 2015 to 12 people in January 2015 on charges a decade in prison. Under his sentencing they pocketed more than $290,000 by terms, Colon was to have no parole eligibility using stolen credit cards at five Atlantic City for 30 months. Colon’s arrest was part of an to conduct a cash advance scheme. investigation by the Atlantic City Task Force The scheme operators – allegedly led by into a conspiracy to distribute cocaine in defendants Lena Guralnik of the Bronx, and Atlantic City. Until his arrest, Colon-Lopez was Intiaz Khan of New Windsor, N.Y. – entered known to investigators only as “Papito.” To the casinos and made cash withdrawals catch him, Task Force members organized using legitimate identification, but fraudulent an undercover operation in which a member credit cards that contained magnetic strips of the New Jersey State Police arranged to taken from stolen credit cards. Guralnik and buy a kilogram of cocaine from Colon-Lopez Khan allegedly spearheaded the scheme for $40,000. Colon-Lopez agreed to make by transporting operatives to Atlantic City, the sale at a location in Atlantic City, but the providing them with a total of 52 stolen credit location was changed to the Deptford Mall at cards and supervising the transactions. the eleventh hour. The two also allegedly kept the bulk of the $293,600 stolen. The five casinos targeted in the cash advance scam were the Showboat, Tropicana, Caesar’s, Harrah’s and Bally’s.

15 New Jersey Office of The Attorney General • Department of Law & Public Safety

State v. Deshon DeWitt and Kameron State V. Stephen Pirrone, et al.: In April Watts: The Atlantic City Task Force arrested 2015, Division prosecutors obtained a suspects Deshon DeWitt and Kameron Watts seven-year state prison sentence against on charges of carjacking and robbing take-out Stephen Pirrone, ringleader of a scam in deliverymen on three separate occasions. In which multiple defendants stole more than all three incidents, the victims were robbed $180,000 from the State by filing false at gunpoint and their cash was taken, along claims for unemployment insurance. The with their cars. Both men were indicted investigation revealed that Pirrone originated by the Division on charges of first-degree the fraudulent scheme and enlisted three carjacking, first-degree armed robbery and other defendants. other offenses. Each man faces a sentence From November 2006 through March of 30 years in state prison, with 25.5 years of 2013, the defendants collected a total of parole ineligibility for the carjacking offenses. $183,433 in unemployment benefits on Labor Crimes seven fraudulent unemployment insurance claims. To facilitate the scam, the defendants Prisoner Unemployment Insurance Fraud submitted fraudulent employer quarterly Cases: In 2015, the Division tried and wage statements in the names of two defunct convicted Bruce Garrett, one of 15 defendants businesses. Pirrone pleaded guilty to a accused of stealing more than $200,000 in charge of second-degree theft by deception unemployment benefits from the State while and, in addition to seven years in state prison, they were serving time in county jails and was ordered to pay $54,623 in restitution ineligible to receive such benefits. In each to the State Department of Labor. Another case, the defendants fraudulently certified defendant, Wilfredo Sanchez, pleaded guilty via the Internet or phone – on a weekly basis to third-degree theft by deception and was –that they were “physically able to do work” sentenced to five years in state prison, as and “available to go to work immediately.” well as payment of restitution. The remaining Barrett individually stole more than $15,000 two defendants pleaded guilty to third- through such fraud while incarcerated. He degree charges in return for a recommended was tried and convicted of third-degree theft sentence of probation, with 364 days of by deception. As of this writing, five additional count jail time as a condition. defendants other than Barrett have been convicted in the case. Environmental Crimes State v. Ivory Downey, et al.: The Division State v. Edward O’Rourke: In 2015 the indicted nine current and former U.S. Postal Division charged and convicted (by guilty Service employees in November 2015 on plea) Edward O’Rourke, the former licensed charges related to their alleged theft of nearly operator of the New Brunswick and Milltown $50,000 in unemployment benefits. The public drinking water system. O’Rourke failed defendants, who allegedly collected between to conduct required testing of drinking water $2,000 and $9,000 each in unauthorized and then submitted falsified testing data unemployment benefits, were all charged to the State Department of Environmental with third-degree theft by deception. The nine Protection. In December 2015, O’Rourke cases were referred by the U.S. Postal Service pleaded guilty to second-degree corruption of and the U.S. Department of Labor. The two public resources and third-degree violations agencies audited State Department of Labor of New Jersey’s Safe Drinking Water Act. unemployment insurance claim records against As part of a plea bargain with the State, payroll records for the Postal Service in order O’Rourke was expected to be sentenced to to identify postal workers who appeared to three years in state prison on each violation, have been fraudulently collecting benefits in with the terms expected to run concurrently. New Jersey. Allegedly, the nine defendants State v. Frank Rizzo and Michael Kouvaras: misrepresented their employment status – or Demolition company owner Frank Rizzo was their hours worked and income earned – to the sentenced to three years in State Prison in State Department of Labor in order to obtain June 2015 for unlawfully removing asbestos unemployment insurance benefits. Between from the demolition site of the former 2010 and 2015, the nine defendants allegedly Zurbrugg Memorial Hospital in Riverside. received a total of approximately $49,564 in His co-defendant, Michael Kouvaras, was benefits to which they were not entitled. 16 Division of Criminal Justice sentenced to a year of county jail time and State v. Christopher Alcantara, et al.: three years of probation in connection The Division arrested and indicted four defen- with the same case. The two were charged dants who operated a private auto inspection with removing asbestos from the Zurbrugg business in Paterson for fraudulently using demolition job site without a license and data simulators to generate false results using workers who were not trained or for motor vehicle inspections. The charged equipped to do the work safely (and in defendants operated Five Star Auto Inspec- compliance with the law). tions in Paterson, and took illicit payments State v. John Caldwell: John Caldwell, of of between $80 and $150 in return for using Washington Township, Gloucester County, the devices to generate passing results for was sentenced to five years’ probation vehicles that had failed emissions inspec- in September 2015 as a result of his tions. Three of the defendants pleaded guilty guilty plea to criminal charges related to tampering with public records and viola- to a major oil spill into Spring Lake and tions of the Air Pollution Control Act, and each Mantua Creek in Washington Township a was sentenced to 364 days in county jail and year earlier. Caldwell used a vacuum tank three years of probation. At this writing, one truck filled with an industrial solvent to defendant remains a fugitive. empty the swimming pool at his home. He subsequently dumped the truck’s contents into a storm drain despite a posted “No Financial & Cyber Dumping” sign. The storm drain feeds into both Spring Lake and Mantua Creek. Crimes Bureau Caldwell pleaded guilty in May 2015 to third- Highlights degree charges of violating the New Jersey Water Pollution Control Act and causing or Financial Fraud risking widespread injury or damage. State v. Irving Fryar, et al.: Former NFL football player Irving Fryar, of Springfield He told investigators he thought the Township, was sentenced to five years in vacuum truck he’d used was empty. In fact, prison in October 2015 for his role in a it had been used to transport a petroleum mortgage fraud scheme that also involved his distillate called “cutting oil.” Investigators mother. Fryar, a five-time NFL Pro Bowler who identified Caldwell as the source of the played professional football for 17 years, was spill after tracing it to the storm drain in convicted by the Division at trial on theft by front of his house. About 3,000 gallons of deception charges. He and his mother, Allene oil were recovered from Spring Lake and McGhee, fraudulently obtained five home Mantua Creek. The State Department of equity loans totaling more than $900,000 Environmental Protection, which oversaw over a six-day period. Each of the five loans the cleanup, collected nearly $230,000 in was obtained using the same Willingboro restitution from Caldwell to fund cleanup property as collateral, and without any costs and other expenses. disclosure by Fryar or his mother of the other Motor Vehicle Commission Crimes loans. The defendants used the fraudulently- obtained funds for personal expenses. Operation Facial Scrub: From 2013 to 2015, the Division charged a total of 179 McGhee, of Willingboro, also was found defendants with identity theft, forgery and guilty and sentenced to probation for her document fraud as part of Operation Facial role in the scheme. Two other defendants Scrub. Using high-tech facial recognition pleaded guilty as well. As of this writing, software, the Division, together with the New one of those defendants had received a Jersey Motor Vehicle Commission and State three-year prison sentence, while the other’s Police, identified individuals who had applied sentence was still pending. for and obtained driver’s licenses under false State v. Manoj Patharkar, et al.: In 2015, the names. Numerous defendants had extensive Division indicted physician Manoj Patharkar criminal records – including sex offender on charges of first-degree money laundering and DUI convictions. Several defendants in connection with a sophisticated scheme to possessed valid commercial driver’s licenses hide more than $3.6 million in income from under the fraudulent names.

17 New Jersey Office of The Attorney General • Department of Law & Public Safety

Patharkar’s medical practice. As a result of State v. Bronthie Charles, et al.: Acting on Patharkar’s alleged criminal conduct, the a referral from TD Bank Corporate Security, Division charged, he underpaid taxes owed to the Division indicted TD Bank teller Bronthie the State by more than $320,000. Patharkar, Charles and seven other defendants on owner of Pain Management Associates charges of second-degree conspiracy, theft by of , carried out the scheme deception and identity theft. Charles and his by fabricating employee payroll and wage co-conspirators were charged with operating expenses, and by depositing checks into his a theft ring that used account information personal rather than business accounts. In from customers of TD Bank to steal more addition to money laundering, Patharkar and than $150,000 from several bank locations. a co-conspirator, Mohammed Shamshair At this writing, all defendants in the case have of Sayerville, were indicted on charges of pleaded guilty and are awaiting sentencing. conspiracy, theft by deception, tax fraud and records tampering. Cyber Crime State v. Robert Sebia: Title company owner Operation Predator Alert I and II: A Hamilton Robert Sebia was sentenced to 11 years man was sentenced to five years in State in state prison in December 2015 as the Prison in February 2015 after he pleaded result of a Division investigation that found guilty to distributing child pornography. Sebia stole $7.7 million entrusted to him as Clealletti “Steve” Koc was one of 28 payment to satisfy mortgage loans related to defendants charged as part of Operation real estate closings he’d handled. In pleading Predator Alert, a joint operation between guilty, Sebia admitted to misusing funds the Division of Criminal Justice and ICE entrusted to him – as a settlement agent – Homeland Security Investigations that to pay off at least 28 outstanding mortgage involved two major sweeps. The operation loans on various properties. Sebia pleaded targeted New Jersey offenders using an guilty to second-degree theft and corporate online file sharing network to download and misconduct charges. distribute child porn videos and images. The Operation Predator Alert cases marked the State v. Joseph Talafous: The Division first major utilization of New Jersey’s new, indicted Joseph Talafous, a Jersey City tougher child pornography laws, which went attorney, on charges related to the alleged into effect in August 2013. As of December theft of $96,000 from a client and the 2015, a total of 13 defendants had entered client’s estate. Talafous used a power of guilty pleas as part of the ongoing Operation attorney to make numerous unauthorized Predator Alert prosecution. withdrawals from the client’s investment account. In doing so, he falsely represented State v. Abraham Baruchov: The Division that the payments were for legal services. In arrested Abraham Baruchov as a result of his fact, Talafous had rendered no such services, receipt of more than 1,000 coffee makers and had used the client’s money for his own and other retail items that were originally personal expenses. purchased on-line from JC Penney with stolen credit cards. Baruchov pleaded guilty to State v. Thomas Muza: Thomas Muza, second-degree receiving stolen property and former accountant for the Triangle Club, was sentenced to three years in state prison a theater troupe at , in February 2015. Baruchov, of Clifton, was pleaded guilty to second-degree theft required to pay full restitution in the amount charges for embezzling $240,000 from the of more than $220,000. club’s bank account. Muza was sentenced in October 2015 to three years in state prison and ordered to make full restitution to the Triangle Club.

18 Division of Criminal Justice

State v. Justin Bozinta: The Division arrested The VCCO also developed a training series and charged Justin Bozinta, a teacher and on domestic violence to educate and re- coach in the East Orange public school educate staff on trauma and the challenges system, with possession of child pornography, confronted by domestic violence claimants. operating a marijuana facility and firearms Experts in domestic violence advocacy and offenses in February 2015. While executing prosecution were invited to serve as trainers. a search warrant for child pornography In July 2015, at the request of the federal at Bozinta’s home in Roselle, detectives Department of Justice, VCCO welcomed a discovered that Bozinta also was operating a delegation of Kosovo judges, prosecutors marijuana grow house, and that he illegally and victim advocates to visit the VCCO possessed various firearms. offices in Newark. VCCO provided a training State v. John Terruso – In June 2015, the presentation during that visit covering the Division arrested John Terruso, Chief of the entire victim compensation process – from Audubon Park Volunteer Fire Company, for the initial application to payment of claims – using a computer at the fire station to share and including the related fiscal and treasury child pornography on-line using a peer-to- steps. As a result of that presentation, the peer file sharing network. In total, Terruso VCCO’s executive staff has been asked possessed more than 1,000 files of child to visit Kosovo in the future to assist in pornography on his computer. Terruso faces developing a plan to create a victim’s charges of second-degree distribution of child compensation office in that country. pornography and third-degree possession of Also in 2015, the VCCO’s attorneys (Deputy child pornography. Attorney General Marsetta Lee and Assistant Attorney General John Holl) continued to provide Continuing Legal Education (CLE) Victims of Crime training by providing presentations for various groups including legislative staff, legal Compensation Office services personnel and prosecutors. The Victims of Crime Compensation Office (VCCO) provides compensation and The 2015 Crime Victims’ Rights Week services to crime victims for expenses ceremony, was held on April 21 at the incurred as a result of personal injury or Hughes Justice Complex. The event brought death. In FY 2015, the VCCO awarded $9.6 together advocates and victims of crime million to the victims of crime. During this from throughout the state, and honored period, the office received nearly 3,600 posthumously James O’Brien, a pioneer in applications and processed more than victim’s advocacy, as well as Deidre’s House of 4,000 claims. The VCCO averages 300 Morristown, which carries on O’Brien’s legacy. new applications per month, with the leading areas of compensation claim being medical/dental, loss of earnings, economic support and burials. In 2015, the VCCO reduced the average turnaround time on claims from approximately four-and-a-half months to approximately two- and-a-half months. Emergency claims were filled in an average of 29 days.

19 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of State Police Division of State Police

Members of the State Police work to protect Operation China White: Operation China the general public by providing statewide White was conducted by the State Police police services – including highway and in collaboration with the federal Drug marine patrols, criminal investigation and Enforcement Administration and Division enforcement, intelligence gathering, disaster of Criminal Justice. The operation led to the management, homeland-security-related arrest and indictment of six Camden-based initiatives, emergency medical transport, defendants on first-degree drug and money forensic science, laboratory services and laundering charges. In all, the investigative the maintenance of criminal records and team seized approximately nine kilograms of crime data. The State Police is organized heroin and cocaine, approximately $600,000 geographically into various “Troop” areas that cash and multiple weapons. are further delineated into sections, units and The drug traffickers arrested as a result bureaus that provide for intensified focus on of Operation China White have substantial such issues as drug trafficking, violent street ties to Mexican drug cartels, and the lead gang activity and other forms of organized defendants face substantial prison terms – crime, disaster response, cyber-crime, casino 10 years or more – as they’re charged crime and homeland protection. The State with both conspiracy and first-degree Police employs traditional law enforcement heroin distribution. strategies in conjunction with new approaches and cutting-edge technology to most Operation Bogged Down: This 2015 action effectively deal with crime and other threats by State Police and the Division of Criminal to public safety. More information about the Justice resulted in the arrest and subsequent State Police is available at www.njsp.org. indictment of 18 suspects who allegedly ran a major weapons trafficking ring based in Newark. Members of the ring illegally sold dozens of guns – including assault firearms Combating and military-style launchers. Several of the Drug Traffic guns were stolen, and one was linked to a Raid Yields 4 Arrests, Nets 52 Heroin prior murder. Newark resident Louis Boggs, Bricks, Stolen Guns, Illegal Ammo: Troopers leader of the ring, pleaded guilty to first- arrested four suspects, confiscated multiple degree firearms trafficking charges and, at firearms and seized 52 bricks of heroin in a this writing, faces an 18-year prison sentence house raid in Lakewood, Ocean County, in with a nine-year period of parole ineligibility. March 2015. The raid culminated a three- Ten of the 17 remaining defendants have month investigation led by the State Police entered guilty pleas to first-degree and/or Gangs and Organized Crimes Central Unit. second-degree offenses. State Police Troop C T.E.A.M.S. and the State Operation Tidal Wave Cracks Two Drug Police Canine Unit were also involved in the Networks: In June 2015, State Police arrested effort. In addition to the bricks of heroin, 32 suspects – including a police officer and Troopers seized 20 ounces of cocaine, two a public works employee – in connection pounds of marijuana, and scales and drug with the break-up of two independent packaging materials. Also seized from the drug trafficking networks operating out of house were $3,000 in cash, three handguns Monmouth and Ocean counties. In taking – two of them reported stolen in Georgia down the two organizations, detectives and a third equipped with an “extended” seized a total of more than four kilograms magazine – and 190 rounds of illegal hollow- of cocaine, more than three ounces of point ammunition. Further investigation led heroin, 16 pounds of marijuana, 1,000 Troopers to search a motel room in Brick Xanax tablets, and quantities of Oxycontin Township that had been rented by one of and ecstasy. Also confiscated were an array the four suspects. During a search of that of steroids, a handgun, seven vehicles room, detectives seized an AK-47 assault and more than $125,000 cash. Dubbed rifle, a 100-round ammunition drum, a 9 mm Operation Tidal Wave, the investigation handgun, additional ammunition and began the previous year and targeted approximately $10,000 cash. The four drug trafficking organizations operating in suspects were jailed on a multitude of Middletown Township, Monmouth County, drug and firearms charges. and Beachwood Township, Ocean County.

21 New Jersey Office of The Attorney General • Department of Law & Public Safety

The first organization – nicknamed the with the operation of a drug manufacturing “Scattaglia Network” – was allegedly run facility. Value of drugs seized in the Elizabeth by Edward Scattaglia, Jr. of Middletown. search was placed at more than $75,000. Detectives identified Scattaglia as the As a result of Operation Tidal Wave, two ringleader of a sophisticated drug trafficking public employees were arrested and charged. network that distributed primarily cocaine in Matthew Van Houten, a Pennsauken resident Monmouth and Ocean counties. Scattaglia and former Camden County Police Officer, allegedly used his home as the focal point of was charged with possession of cocaine the distribution network, meeting with various while employed as a police officer. In addition persons there and supplying them with Albert Logan, an employee of the Ocean cocaine for redistribution. County Road Department, was charged with Over the investigation’s course, State hindering and loitering to purchase a Police detectives also learned that Francisco controlled dangerous substance. Romero, of Englewood, allegedly was supplying Scattaglia with multiple kilograms of cocaine. Romero allegedly used his own Other Enforcement home in Englewood to store bulk quantities of the drug for distribution purposes. In Highlights Retail Theft Probe Yields Arrests, New June 2014, State Police and the Englewood Investigative Tool: During calendar year 2015, Police Department executed a search detectives assigned to the Troop A Strategic warrant at Romero’s home and seized, Investigations Unit (SIU) conducted an eight- among other things, a pound of cocaine. In month organized retail theft investigation that a separate warrant execution the same day, resulted in the arrest of 13 criminal suspects detectives seized drug paraphernalia and a – each of them accused of stealing from quantity of marijuana at Scattaglia’s home TJ Maxx and Marshalls stores throughout in Middletown. The second drug trafficking southern New Jersey. The investigation’s organization pierced through Operation Tidal direct outcome was significant, but it also had Wave was dubbed the “Beachwood Network” broader implications for law enforcement, and operated in Beachwood Township, as as it pointed the way to use of an important well as the surrounding area. new cyber tool for criminal investigation. The Beachwood Network was responsible Suspects arrested in the case were accused for distribution of cocaine, heroin and marijuana, of shoplifting more than $100,000 worth as well as a variety of pharmaceutical pills. of clothing and other merchandise from TJ Through investigation, detectives pinpointed Maxx and Marshalls stores in seven counties, the network’s heroin manufacturing facility making “no receipt” returns in exchange and stash house in Seaside Heights and, on for gift cards, then selling the gift cards to April 9, 2015, arrested suspect Barry “Buzzy” pawn shops throughout the region. The SIU McCombs at that location. In doing so, they investigation involved, among other things, seized more than 15 grams of raw heroin, painstaking review by detectives of in-store more than 275 decks of packaged heroin, surveillance footage, real time surveillance of more than an ounce of cocaine and other store properties and the execution of cellular paraphernalia consistent with the packaging telephone warrants. An asset to State Police and preparation of heroin. Total value of during the probe was a new system known drugs seized at the Seaside Heights location as RAPID – the Regional Automated Property was estimated at $10,000. Information Database – which many pawn Subsequently, detectives were able to shops and “cash for gold” stores now use locate and dismantle a second drug mill to catalogue and track merchandise sold to associated with the Beachwood Network. them by the public. On April 20, 2015 investigators searched A major break for investigators came a home in Elizabeth, Union County, and when one suspect – Alicia Blackburne – was determined it to be the source of the arrested for shoplifting in Middle Township, network’s cocaine supply. Detectives Cape May County in July 2015. Information arrested suspects Andres Genao and Jose on her arrest was contained in a Daily Arrest Limardo at the Elizabeth home, and also Report broadcast by the State Police Regional seized 1.5 kilograms of cocaine, a kilogram Operational Intelligence Center (ROIC). press machine and paraphernalia consistent Investigators cross-referenced Blackburne’s 22 Division of State Police name with the RAPID data base and learned the auto, they seized burglary tools, stolen that she had pawned approximately $16,000 property, heroin and Xanax. Investigators worth of gift cards from the TJX Corporation – also linked Lukic to auto burglaries reported parent company for TJ Maxx, Marshalls and in Bloomingdale and Butler townships. He Home Goods stores. Ultimately, Blackburne was charged with receiving stolen property, was charged with being the leader of an possession of burglar’s tools, possession of Organized Retail Theft Enterprise – a second- heroin, possession of prescription legend degree criminal offense. Twelve other drugs, criminal use of CDS and possession of suspects connected to Blackburne through hypodermic needles. the investigation were charged with various Troopers Find Eight Types of Illicit Drugs degrees of shoplifting, and a subsequent in Crashed Car: What began as a reported search of a car used by one of Blackburne’s verbal dispute along a Cape May County co-conspirators revealed, in addition to stolen roadside ended with a police chase and the retail merchandise, a Sensormatic detacher arrest by State Police of a New York man gun used to remove security devices from new on multiple drug charges in April 2015. clothing. Successful use of the RAPID system Samuel Bompane of Brooklyn was first by Troop A detectives in the TJX case sparked hospitalized, then jailed after an incident in regular review of statewide arrest reports and which he engaged in a roadside argument regular cross-referencing of those arrested with another motorist, led investigating with the RAPID data base. This process, in Troopers on a brief chase and then – after turn, has led to other investigations in which the Troopers cut off their pursuit – crashed criminal suspects have been identified, his car into another vehicle on the Garden tracked and arrested after being flagged State Parkway, causing it to overturn. through a system review as “top pawners.” Bompane was charged with driving while Child Porn Distribution Bust: Aided by intoxicated, aggravated assault with a a telephone tip to the National Center vehicle and possession of numerous drugs for Missing and Exploited Children’s with intent to distribute including marijuana, Cyber Tipline, State Police arrested a cocaine, psilocybin (mushrooms), hashish Weehawkin man in January 2015 on and Ecstasy. Bompane’s car contained charges of distributing and possessing 10 pounds of marijuana, 80 pounds of child pornography. Michael Prinzo, 24, was marijuana candy, hashish oil, prescription charged after detectives acted on a search drugs and smoking pipes. Bompane also had warrant at his home and recovered a USB approximately $35,000 in cash in the car. storage device – concealed in a container Persistent Troopers Catch Man Who Fled designed to look like an ordinary toiletry DUI Arrest, Brandished Gun: Two Troopers product – that contained hundreds of images teamed up in 2015 to apprehend and arrest and videos of child pornography. a fugitive who was first involved in a car The State Police Digital Technology crash in Teaneck, fled on foot after being Investigations Unit and the State Police advised he would be charged with drunken Internet Crimes Against Children Task Force driving, then pointed a gun at one of the worked the investigation in collaboration with Troopers. Heric Malave, of Prospect Park, the state Division of Criminal Justice and was arrested in June 2015 and charged with Weehawkin Police. driving while intoxicated, resisting arrest, Troopers Investigate DWI Crash, Catch cocaine possession, aggravated assault Alleged Burglar: State Police investigating a (with a firearm) on a law enforcement officer, single-car crash on Interstate 80 in Totowa and three weapons offenses. Troopers Eric in February 2015 ended up arresting the Chaves and Paul Volpe were investigating driver for driving while intoxicated, as a car fire on Interstate 80 in Teaneck well as for a number of unsolved property when a two-car collision occurred nearby. crimes. Ivan Lukic, of Butler, crashed his The Troopers performed field sobriety car while driving eastbound on Interstate tests on one of the drivers – Malave -- and 80 the afternoon of February 12, 2015. he failed. Upon being told he was under Troopers arrested Lukic at the scene for arrest for driving while intoxicated, Malave drunken driving. Subsequently, detectives ran across all lanes of I-80 traffic toward learned Lukic’s vehicle had been reported the New Jersey Turnpike, then fled into stolen out of Paterson. During a search of a wooded area. Chaves caught up with 23 New Jersey Office of The Attorney General • Department of Law & Public Safety

Malave, and the suspect responded by obstructed, obtained a manual suction unit pointing a loaded handgun at the Trooper. from his first-aid bag and cleared the baby’s Trooper Volpe arrived and the two Troopers airway. A University of Medicine and Dentistry disarmed Malave, but he was able to flee ambulance then arrived and transported both again, running back across I-80 into another mother and child to University Hospital in section of woods. There, the two Troopers Newark for further evaluation. again caught up with Malave, subdued and Emergency Trooper Deployment to arrested him. The Troopers were credited Maryland: Approximately 150 Troopers and with exhibiting extreme courage in dealing other State Police personnel were deployed with a life-threatening encounter. to the Baltimore area through the State Police Office of Emergency Management (OEM) to aid local law enforcement in protecting Troopers Making a Maryland citizens. The April 29, 2015 deployment was in keeping with a mutual Difference aid agreement known as the Emergency Troop B Troopers Rescue Woman Trapped Management Assistance Compact (EMAC). in Burning House: On April 28, 2015, Troop It came as Maryland authorities responded B Troopers Adam Gonzalez and Justin Storie to civic unrest prompted by the death of a rushed into a burning house in Mount Olive suspect while in the custody of Baltimore Township and rescued a woman who was Police. The OEM deployment, which involved trapped inside. both a law enforcement and community The two off-duty troopers had just relations function, lasted through May 5, completed their shifts and were on their 2015. In addition to personnel, State Police way home from work when they passed resources deployed included marked police a residence on Route 206 that was on vehicles, riot gear, specialized vehicles for fire and emitting thick black smoke. Upon arson/bomb personnel, a command post bus entering the home, the troopers announced and housing resources for sustainability. themselves and heard a call for help. Prior out-of-state deployments by State Navigating through near-blackout Police have included assistance missions in conditions, the troopers managed to locate New Orleans after Hurricanes Katrina and the homeowner and get her out of the Gustav, and in Pennsylvania to aid with the building just before it became fully engulfed. successful manhunt for Eric Frein, who had Troopers Gonzalez and Storie were shot a Pennsylvania State Trooper to death. treated at Morristown Memorial Hospital Massachusetts Snow Emergency for cuts, abrasions and smoke inhalation. Deployment: State Police OEM fulfilled The homeowner was hospitalized in stable an EMAC request from the State of condition. Massachusetts for snow removal aid after Troop D Troopers Team Up to Aid Roadside massive snow accumulations struck the Birth: Four Troop D State Troopers combined New England region in February 2015. efforts on the eve of Thanksgiving in State Police subsequently worked with the November 2015 to deliver a baby along New Jersey Department of Transportation the New Jersey Turnpike. On November 23, to coordinate the mission. Thirty-four three troopers – Detective Jason Kazan, pieces of equipment, including front end Trooper Robert Ciecwisz and Detective loaders, trucks and backhoes, as well as 36 Robert Kilmurray – responded to a call for personnel, made the trip to Massachusetts medical assistance along the Turnpike at for an eight-day deployment. milepost 106.9 in Newark. Upon arriving, the Troop C Tactical Unit Efforts Helped Make three Troopers found the mother – seated Trenton Safer: For calendar year 2015, in the passenger seat – obviously excited the Troop C Tactical Patrol Unit made a and experiencing painful contractions. The discernible difference by providing service baby’s head began crowning and, in short beyond its customary responsibilities in order, the child was born with assistance the City of Trenton, as part of the Trenton from the Troopers. Trooper Robert Ravotto Initiative. The purpose of the Trenton then arrived on the scene and, noting that the newborn baby girl’s airway was

24 Division of State Police

Initiative is to provide a supplemental, high- Bureau conducted nearly 13,000 critical visibility police presence in the Capitol City infrastructure checks including bridges, to discourage crime – particularly street tunnels and high-value assets along the New crime, gun violence, and drug dealing, etc. Jersey waterfront. – in specific high-crime areas. Throughout In addition, the Bureau completed more 2015, the Troop C “Tac Pac” Unit exceeded than 400 ferry escorts, 21 U.S. Navy expectations by operating deployments twice warship escorts and one U.S. Coast Guard weekly in support of the Initiative, frequently cutter escort under the Transportation working in partnership with the Trenton Sector Enhanced Security Initiative. The Police Department and various other law Bureau also continued its relationship with enforcement entities. According to a State U.S. Customs and Border Patrol efforts, Police statistical analysis of designated crime participating in 22 Immigration and Customs and violence “hot spots” in which the Troop Enforcement Patrols. C Tac Pac members patrolled, shooting murders were down in those locations by Also in 2015, the Bureau was awarded more than 50 percent in 2015, and the approximately $2.3 million in Recreational overall number of arrests in those areas Boating Safety Grant Program funds to increased, overall, by more than 170. carry out New Jersey’s Boating Safety Program, including marine law enforcement, statewide boating education, a vessel numbering system and maintenance of New Bureau and Unit Jersey’s Memorandum of Agreement with Activity the U.S. Coast Guard. Aviation Bureau Technical Response Bureau The Aviation Bureau conducted more The Technical Response Bureau’s Arson than 10,000 missions in 2015, transported Bomb Unit conducted more than 100 nearly 1,100 passengers and logged explosive-related investigations in 2015, as more than 2,000 hours of flight time. The well as 18 fire investigations and 162 bomb Bureau also implemented a Maritime sweeps of critical infrastructure. Patrol Initiative that enhanced the State’s Notable assignments included support of security presence on and around New Jersey such large-scale public events as the Boston waterways and ports. The Bureau conducted Marathon, Miss America Pageant and World flight operations in support of the historic Meeting of Families Papal visit, as well as Papal visit to the United States, and also deployment – as part of a New Jersey mutual provided air support for the U.S. Secret aid contingent – to assist with civil unrest in Service during multiple Presidential visits. In the City of Baltimore after a man died while addition, the Bureau conducted operations in Baltimore police custody. The Bureau also in support of urban initiatives, the provided assistance in a terroristic threat/ homeland-security-related Transportation hoax device investigation and provided Sector Enhanced Security Patrol, and the robotics assistance in the case of a suspect Miss America Pageant in Atlantic City. vehicle investigation. Marine Services Bureau The T.E.A.M.S. Unit (Technical Emergency Through proactive boating patrols, the and Mission Specialists) carried out many Marine Services Bureau assisted nearly vital tactical operations in 2015 that 600 persons and more than 300 vessels protected New Jersey citizens and brought in 2015. The Bureau also investigated 128 violent criminal offenders to justice. The unit boating accidents – nine of them fatal. The conducted more than 300 high-risk tactical Bureau also leveraged its partnership with entries, 86 other tactical deployments, seven the U.S. Coast Guard to conduct joint patrols barricaded-subject operations and 35 SCUBA targeting Boating While Intoxicated violators. deployments. As a result, more than 400 This successful joint initiative resulted in individuals were arrested, upwards of 100 10 Boating While Intoxicated arrests and firearms were recovered and approximately six arrests on criminal charges. The Bureau $457,000 was seized. also was heavily integrated into the State’s homeland protection mission in 2015. The

25 New Jersey Office of The Attorney General • Department of Law & Public Safety

Among T.E.A.M.S. deployments in 2015 were the Miss America Pageant, the World Recruiting & Meeting of Families deployment, the Baltimore civic unrest deployment and a Development civil disturbance at Metlife Stadium in East SP Launches New Bureau to Help Chart Rutherford during the HOT 97 Concert. Future Growth: With an eye to the future, New Jersey State Police launched a new The T.E.A.M.S. Unit also assisted the Essex Recruiting and Employee Development County Prosecutors Office and the Atlantic Bureau in November 2015 to conduct a City Task Force with broad-based narcotics robust Trooper candidate recruiting and investigations that were carried out within selection effort. Creation of the new Bureau their respective jurisdictions. allowed for all aspects of the pre-Academy The Canine Unit responded to 1,175 process to be handled under one roof – requests for service in 2015 from federal, including recruiting, outreach, the candidate state and local agencies. State Police selection process, applicant investigations, Explosive Detection canine teams assisted in etc. Personnel assigned to the Bureau the homeland security mission by conducting were tasked with carrying out State Police more than 2,500 explosives “sniffs” and recruiting and hiring efforts geared toward more than 1,100 explosive sweeps. developing – and maintaining – a State Canine Narcotic Detection teams Police organization that reflects the diverse conducted 330 drug-related sniffs, communities it serves. Other high priorities seized controlled dangerous substances of the Bureau for 2015 – and beyond – valued at $10.9 million, confiscated more included building working relationships with than $817,000 in currency, and seized community leaders throughout the state, eight weapons. Among the Unit’s many and establishing youth programs to help deployments, canine teams tracked and generate interest among young people in law apprehended armed robbery suspects, enforcement as a career. suspects fleeing from residential search FLEET Program: Among the keynote youth warrant executions, and helped to locate initiatives launched in 2015 was the FLEET suicidal and lost persons. Program (Future Law Enforcement Education and Training), a long-term recruiting effort Transportation Safety Bureau done in partnership with local communities In 2015, the Transportation Safety and their schools. Bureau’s Mobile Safe Freight Training Unit seized more than 875 pounds of marijuana, two kilograms of powder heroin, eight ounces of powder ecstasy and 15 doses of prescription legend drugs. The Unit also confiscated approximately $1.1 million in cash and seized $174,000 worth of property. The Unit’s interdiction activity resulted in a total of 66 arrests.

26 Division of State Police

The goal of FLEET is to offer guidance and education to youth from areas that have little experience or knowledge of the State Police, or the field of law enforcement in a broader sense. Under the FLEET program, Troopers meet one-on-one with a student mentee assigned to them, develop a relationship with them through time spent together talking and participating in activities, and along the way introduce them to the elements of a law enforcement career. Trooper mentors are carefully selected, with an emphasis on choosing not only the most qualified individuals, but those who have the greatest interest in sharing their time and experiences to help young people learn, grow and also have fun. Recruiting Unit Efforts: Guided by a newly-developed Strategic Plan which it shared with community leaders, the State Police Recruiting Unit forged grass roots partnerships in 2015 designed to strengthen ties with the public and enhance recruiting efforts – particularly in diverse communities. Included in the effort was a targeted State Police career ad campaign featuring a social media component, as well as messaging via bus placards, posters and brochures. Recruiting Unit members attended numerous career fairs and community events in 2015, and also attended events sponsored by NAACP chapters at academic institutions, churches and other venues. In addition, the Recruiting Unit hosted monthly Career Nights in the northern, central and southern regions of the state and, as a means of increasing the recruit retention rate, began to develop a new Applicant Mentoring Program designed to support candidates going through their academy training.

27 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division on Civil Rights Division on Civil Rights

Consistent with its statutory mandate, the sessions in 2015. Training for employers Division on Civil Rights accepts, investigates, typically centered on the requirements of the and prosecutes complaints of unlawful Law Against Discrimination and the Family discrimination, and responds to inquiries Leave Act, and on how to ensure compliance from the general public regarding anti- with those laws. discrimination and family leave laws. The The Division also conducted a variety of Division has regional offices in Atlantic City, “know your rights” seminars, as well as Cherry Hill, Newark, and Trenton. More civil rights awareness training for business information about the DCR is available at operators, landlords, real estate industry www.NJCivilRights.gov. personnel and others. Overview Case Resolutions The Division on Civil Rights is responsible Private Academy Pays $58,000 to Settle for enforcing the New Jersey Law Against Complaint Over Expulsion of Learning Discrimination (LAD) and the New Jersey Disabled Student: The private Waldorf Family Leave Act (FLA). The LAD makes School of Princeton agreed in 2015 to pay it illegal to discriminate in employment, a learning-disabled student and her parents contracting, housing and places of public $58,000 to resolve allegations that it accommodation. The FLA requires covered unlawfully discriminated when it expelled the employers to grant time off from work to girl – without prior notice – after seven years employees for the birth or adoption of a child, as a student due to her mother’s aggressive or the serious illness of a family member. advocacy on her behalf. In addition to paying In 2015, the Division obtained the student and her parents, Waldorf agreed approximately $1.7 million in settlement under the settlement to review and revise payouts on behalf of New Jersey residents. its non-discrimination policy, provide training In addition to payments to the alleged for all employees on addressing reasonable victims of discrimination and the State, accommodation requests, and modify the settlements negotiated by the Division school’s records to remove any indication the typically required training on the LAD and/or girl was expelled. As part of the settlement, FLA, required the creation and meaningful Waldorf also agreed to welcome the student dissemination of new or updated anti- back to participate in alumni events with discrimination policies and procedures, the classmates who learned alongside and imposed reporting and monitoring her, and who would have comprised her requirements to ensure compliance with the eighth-grade graduating class had she law. Over the course of the year, Division remained at Waldorf. A Division investigation staff processed thousands of inquiries found that the education professionals at regarding civil rights from the public. The Waldorf chafed at what they viewed as an most common basis for new discrimination overstepping of boundaries by the girl’s complaints was disability, followed closely mother, as well as what they perceived as by race, gender and age. The most common an occasionally disrespectful – even abusive issues raised by complainants were unlawful – tone of communication. The mother, discharge from employment, retaliation, and meanwhile, indicated disappointment denial of reasonable accommodation. with what she perceived as a reduction in During calendar year 2015, the Division communications by Waldorf staff compared launched 619 new unlawful discrimination to prior years, a lessening of regard for investigations, issued 23 Findings of Probable her concerns, and a diminished degree of Cause and resolved/closed 594 cases. attention focused on her daughter’s needs. Matters handled by the Division affected Then in May 2012 – despite providing re- individuals from all walks of life and covered enrollment paperwork and a financial aid a broad range of discrimination allegations. package to fill out – the school wrote to In addition to investigating and litigating civil the girl’s parents explaining that she would rights matters, the Division continued to not be invited back for eighth grade. The conduct a variety of outreach and training stated reason was that Waldorf was “not

29 New Jersey Office of The Attorney General • Department of Law & Public Safety

the appropriate environment” based on questions about his treatment. The Division assessments by certain “outside evaluators.” investigated Snyder’s allegations and, based However, there also was a reference to a on the results, issued a Finding of Probable “history of an unproductive relationship” with Cause against Park Crescent in November the mother, and a “lack of consciousness 2014. In that finding, the Division held that, about appropriate boundaries” on the while Snyder appeared able enough to mother’s part. communicate with rehab center staff about Public School District Pays $45,000 routine matters, his ability to effectively to Settle Ex-Employee’s Complaint: The communicate – and be communicated with Burlington City public school district agreed in – regarding the critical issue of his medical 2015 to pay a former employee $45,000 to treatment was in question. resolve allegations that it wrongly terminated Planet Fitness Settles Wrongful Firing her for absences that included 39 days Case: In April 2015, Planet Fitness Ewing of approved, unpaid leave to care for her paid a former employee $25,000 to husband, who was recovering from open- resolve allegations that the health club heart surgery. In addition to paying former discriminated against her – first by denying educational assistant Helyna Nikulicz in two her a promotion, then by dismissing her installments of $22,500 each, the Burlington for an infraction other employees had City school district also was required to committed without being fired. In addition implement several reforms. to paying former employee Rachel Bronner The reforms included ensuring that the $25,000, Planet Fitness Ewing also was district’s family leave policy states plainly required under a settlement agreement that “serious health condition of a family to provide the Division with evidence of a member” is an acceptable reason to current anti-harassment/anti-discrimination take unpaid family leave without fear of policy, and to arrange training on the termination or other negative employment policy for all management and supervisory consequences. The school district also staff at the health club. Bronner, who is was required to provide training for all African-American, filed a charge with the supervisors, managers and human resources federal Equal Employment Opportunity personnel with respect to the provisions of Commission in May 2013 alleging that she both the New Jersey Family Leave Act and the was wrongly passed over for a promotion federal Family and Medical Leave Act. and subsequently terminated because of her race and gender. EEOC investigated her Rehab Center Pays $35,000 to Resolve complaint and determined that Bonner had ASL Interpreter Case: An Essex County been discriminated against on the basis of rehabilitation center paid a former patient race and gender, but transferred the matter $35,000 in 2015 to resolve allegations to the Division on Civil Rights under a work the man, who is deaf and communicates sharing agreement. primarily through American Sign Language (ASL), was unlawfully denied the services of The Division subsequently reviewed the an ASL interpreter during an extended stay at case and issued a Finding of Probable the facility. Thomas Snyder, of Newark, was Cause that Bronner had been the victim of admitted to the Park Crescent Healthcare discrimination, with age and marital status & Rehabilitation Center in East Orange in added to the EEOC findings. As a front- March 2014. Throughout his 39-day stay at desk employee of Planet Fitness Ewing , the facility, Snyder and his sister repeatedly Bronner performed a variety of managerial asked for the services of an ASL interpreter, functions, but alleged that she was passed but did not receive them. The center over in favor of a less-qualified male co- acknowledged that it did not accommodate worker when an assistant manager position the requests, because Snyder appeared became available. Planet Fitness told able to effectively convey his questions and Division investigators the male worker who comments using a pen and paper. Snyder received the promotion was “more mature, filed a formal discrimination complaint with married and has real bills” as opposed to the Division in June 2014. In his complaint, Bronner, who was single and “a young girl.” Snyder alleged that he saw a doctor once In addition to not promoting Bronner, Planet a week during his five-and-a-half weeks Fitness Ewing was accused of terminating her at Park Crescent, but was unable to ask 30 Division on Civil Rights employment for certain conduct – leaving the Spooner told Division investigators that, facility mid-day for a trip to Edison and not during their telephone conversation, the two specifying what time she would return – that women agreed they would meet the next other employees had engaged in previously day and Spooner could tour the available without being fired. An EEOC investigation rental unit. As they were wrapping up the report described as “quite dubious” the conversation, Spooner alleged, Ferraro circumstances surrounding Bronner’s mentioned that she was being “very dismissal, and characterized the assertion selective” in renting the apartment, and did by Planet Fitness that it had a strict policy of not intend to rent to anyone African-American termination for such conduct as “simply not or Hispanic. Spooner said it was evident worthy of belief.” from their phone conversation that Ferraro Vantage Pays Ex-Worker $20,000 to believed Spooner to be white. Ferraro denied Settle Age Discrimination Claim: Vantage making discriminatory statements, told the Communications agreed in 2015 to pay Division on Civil Rights she had a history of a former employee $20,000 to resolve renting to Hispanic tenants, and told them allegations it unlawfully dismissed the she had no memory of ever speaking with worker soon after he requested disability Spooner. However, Spooner provided the leave to undergo surgery. Vantage, which Division with telephone records from her sells telephones and other communications employer documenting a nearly-13-minute products and services, at one time call to Ferraro’s number on March 15, 2011. operated a facility in Ewing, Mercer County. Complainant Michael O’Shea worked out of the company’s Ewing office for approximately Superior Court 16 months before being terminated. An amended Complaint filed by both O’Shea Actions, Favorable and the Division on Civil Rights accused Rulings Vantage of violating New Jersey’s Law Against DCR Files Superior Court Complaint Discrimination (LAD) by firing O’Shea one Alleging Race, Age Discrimination: In day after he requested leave to undergo a October 2015, the Division filed a Director’s hip replacement operation. Vantage denied complaint in state Superior Court alleging engaging in unlawful discrimination and that Newark-based Continental Auto Parts contended that O’Shea’s dismissal was unlawfully discriminated on the basis of performance related. In its investigation, age and race. Specifically, the complaint the Division found no performance reviews alleged that Continental had discriminated or other evidence that O’Shea had been by not hiring a qualified African-American formally notified his job was in jeopardy. man in his 50s for a delivery driver position Landlord Required to Pay $8,000 to Settle it advertised, then hiring two significantly Housing Bias Complaint: Under a settlement younger, non-African-American applicants for negotiated by the Division on Civil Rights the same work. The three-count complaint in 2015, a Hudson County landlord paid alleged multiple violations of the New Jersey $8,000 to an African-American woman to Law Against Discrimination (LAD), including resolve allegations the landlord unlawfully age-based discrimination, race-based discriminated by telling the woman, who discrimination, and making unlawful pre- had called her about renting an apartment, employment inquiries. that she would not rent to African-Americans According to the complaint, Anthony or Hispanics. In addition to the settlement Sturgis of Lindenwold, Camden County, payout, Bayonne landlord Donna Ferraro also responded to a “driver wanted” ad placed was required to submit to State monitoring on Craigslist by Continental Auto Parts. of her rental practices – including reporting In addition to its Newark headquarters, to the Division on all vacancies filled and Continental had a facility in Mount Laurel, all reasons for accepting/rejecting rental Burlington County, at the time Sturgis applicants. Complainant Aja Spooner saw an applied for employment, as well as facilities apartment-for-rent ad placed by Ferraro in a in Pennsylvania and New York. The Craigslist Hudson County newspaper and followed up by ad encouraged applicants to respond to calling Ferraro from her place of employment.

31 New Jersey Office of The Attorney General • Department of Law & Public Safety

Continental’s Mount Laurel facility, and but offered to accommodate her in other Sturgis did so immediately, submitting his ways. For example, the MVC offered to pre- resume on-line. The resume indicated that schedule an appointment for Wojtkowiak at Sturgis had obtained his Associate’s Degree the nearest MVC office – in Cherry Hill, 11 in Criminal Justice, and had worked for miles from her home – and arrange for her to many years as a delivery driver and in the be the first customer of the day. Wojtkowiak security industry. Within an hour, Sturgis responded by filing a complaint with the received a telephone call from Continental’s Division on Civil Rights, arguing that given Mount Laurel branch manager. The branch her condition, MVC should have come within manager appeared “enthusiastic,” according her safe zone to take her photo, or allowed to the Division complaint, and Sturgis was her to submit a photo, or waived the photo invited to visit the Mount Laurel facility for requirement altogether. After interviewing a face-to-face meeting the next day. Sturgis Wojtkowiak, MVC officials, and conducting a alleged that, although the branch manager site inspection of the MVC and the equipment sounded interested in hiring him when at issue, the Division issued a Finding of they spoke by phone, his demeanor was No Probable Cause, which Wojtkowiak then markedly different in person. appealed. In upholding the Division’s finding, Sturgis also told Division investigators the Appellate panel found that, despite the that the branch manager asked him his doctor’s letter submitted by Wojtkowiak, age and about his state of health. (Both there was a “lack of sufficient expert medical questions are prohibited in such a context evidence” that she was incapable of driving, by the LAD.) Although Sturgis was told he’d or being driven to, the nearest MVC agency receive a follow-up call to arrange a second – even if it was located more than five miles interview, no such interview materialized. away from her home – on a single occasion. Sturgis made several subsequent Finding Affirmed in Hostile Work telephone calls to Continental, but was Environment Case: In March 2015, an never again contacted by the company. Appellate panel upheld a finding by the Appellate Panel Affirms DCR in Case of Division on Civil Rights that New-Brunswick- Driver with Agoraphobia: In February 2015, based Dane Construction had unlawfully a Superior Court Appellate panel upheld a subjected one of its employees to racial Division finding that the New Jersey Motor slurs and sexually harassing remarks in Vehicle Commission (MVC) did not unlawfully the workplace, and had to pay the woman discriminate when it refused to waive its in- $25,000 for pain and humiliation. person, digital photographic driver’s license In addition to upholding the Division’s renewal requirement for a woman afflicted order that Dane Construction and its owner, with agoraphobia, an anxiety disorder she Pat Buckley, pay ex-employee Shi-Juan Lin, claimed limited her ability to travel. Robin the Appellate panel also upheld a $5,000 B. Wojtkowiak, of Voorhees Township, statutory penalty imposed by the Division. Camden County, wrote the MVC in August The Appellate panel also upheld an order 2012, requesting that the agency waive its that Dane Construction reimburse the State in-person renewal requirement because of her disability, and offering to supply a recent digital photograph of herself to meet the State’s requirements. To support her request, Wojtkowiak provided a doctor’s letter verifying that she “has a long standing history” of agoraphobia and indicating that, while Wojtkowiak is capable of driving, her ability to do so without anxiety is limited to a “safety zone of five miles from her home.” The MVC denied Wojtkowiak’s request,

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$31,000 in legal fees and costs. Complainant n A deaf woman who was in danger of Lin, of Carteret, worked as a bookkeeper and being stranded without transportation in secretary at Dane Construction. Her employer a blizzard alleged discrimination after a was aware of her Chinese heritage, knew Passaic County taxi company repeatedly that Lin’s fiancé was black and of Jamaican refused to accept telephone calls from a descent, and was aware that the couple relay service that was calling on her behalf. had a five-year-old son together. Despite n A Burlington County tenant alleged that awareness, State investigators found disability-based discrimination after the sufficient evidence that Lin was subjected apartment complex where she lived -– typically by company owner Buckley – to refused to allow her to keep an emotional unlawful workplace discrimination in the form support animal despite a note from her of slurs aimed at African-Americans and, on doctor – a physician who is certified in at least one occasion, a remark directed at psychiatry and neurology – stating that the Lin that was both racially discriminatory and animal was necessary to assist her. sexually harassing. n A Monmouth County landlord, who is also a lawyer, was accused of housing discrimination after refusing to consider Findings of would-be tenants planning to pay their rent Probable Cause using federal Section 8 housing assistance. In 2015, Division investigations resulted in n A Mercer County employer was accused Findings of Probable Cause that addressed of race-based discrimination after two alleged discrimination in many different African-American factory workers were settings and affected persons from all walks fired for committing the same offense as of life including: tenants, employers and three non-African-American co-workers employees, would-be renters, individuals (who were not terminated.) with a disability, and many others. A Finding n A Bergen County woman complained of of Probable Cause is not an adjudication being subjected to severe or pervasive on the merits of a discrimination complaint. sexual harassment by her employer who, Rather, it means the Division has concluded among other things, was alleged to have its preliminary investigation and determined surreptitiously monitored her via the there is sufficient evidence to move the business’s video system. case forward on the basis of a reasonable suspicion the law has been violated. Some examples of 2015 discrimination complaints that, after investigation, yielded Findings of Probable Cause include: n An openly lesbian Hudson County woman alleged repeated harassment by her supervisor and co-workers because of her sexual orientation. n An elderly widower alleged disability-based discrimination after an Ocean County homeowner’s association refused to provide reasonable accommodations for his significant physical disabilities.

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Other topics included development of Miscellaneous accessible public and common-use areas in housing construction, and the creation Highlights of accessible routes. Featured speaker Division Relocates Southern Regional for the event was John H. “Jack” Catlin, a Office: Effective March 2, 2015, the Division partner at Chicago-based LCM Architects. officially relocated its Southern Regional Catlin has been a key figure in development Office from the Delaware River waterfront of the “universal design” concept, which in Camden to 5 Executive Campus in incorporates both standard housing and Cherry Hill. Principal rationale for the move accessible housing design. Catlin also was cost savings. The projected annual has been integral to the development of savings on rent alone through relocation accessibility codes and standards for state was approximately $103,000. Annual and local building codes. He co-chaired savings on other costs – for example, the committee that developed the City of outside maintenance, snow removal, Chicago’s first comprehensive accessibility utilities, etc. – was expected to increase rules as part of revisions to the city’s building the savings further. The Division’s Southern code. He remains actively involved in the Regional Office serves residents of Camden, training of professional groups, corporations, Burlington, and Gloucester counties, and universities and government agencies in both is open Monday through Friday from 8:30 universal and accessible housing design. The a.m. to 5 p.m., with walk-in hours from seminar offered attendees a comprehensive 9 a.m. to 4:30 p.m. Another significant look at technical standards and specifications reason for relocating from the Camden required by state and federal fair housing Waterfront to Cherry Hill was accessibility laws. It was geared toward construction and convenience for residents seeking professionals such as contractors, architects, information, or to file a formal complaint. designers, civil engineers and landscape The Executive Campus site in Cherry Hill is architects. The event’s working ethos was familiar to many residents of the tri-county that, while it’s important to ensure that area because it already houses such well- landlords avoid discriminating against known entities as the New Jersey Motor persons with disabilities, it’s also vital that Vehicle Commission, the federal Social designers and builders be encouraged to Security Administration offices, and Camden construct buildings that incorporate the County’s Child Support Probation Division, needs of the disabled. as well as many private employers. The location is convenient by car, and NJ Transit bus service stops next to the building. The site is also within walking distance of a NJ Transit train station. DCR Co-Hosted Accessibility Design/ Construction Seminar: The Division on Civil Rights, U.S. Department of Housing and Urban Development (HUD) and the Fair Housing Council of Northern New Jersey co-sponsored a free, one-day fair housing accessibility seminar in June 2015. Held at Gateway Center in Newark, the seminar focused on building design and construction requirements under federal and state fair housing laws.

34 Division on Civil Rights

DCR Helps Develop Anti-Bullying Video Message for Educators: In March 2015, the New Jersey State Board of Education viewed a video message from New Jersey’s Acting Attorney General focused on the issue of harassment, intimidation and bullying in schools. The video emphasized a proactive, not reactive, approach to the problem, and urged school leaders to make the issue a top priority. The video also emphasized the importance of vigilance by education leaders with regard to incidents of harassment, intimidation and bullying, as well as ensuring a positive culture and climate in all school buildings. The video message was developed with input from the Division on Civil Rights, and was distributed to all Executive County superintendents. It was shown at county “roundtable” meetings with school district Superintendents from throughout the state, and was posted on the websites of both the New Jersey Attorney General’s Office and the state Department of Education.

35 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Consumer Affairs Division of Consumer Affairs

The mission of the Division of Consumer Cyber Fraud Case Settlements Affairs is to protect the public from fraud, deceit, misrepresentation and professional “Prized” Mobile App – The Division joined misconduct in the sale of goods and services with the Federal Trade Commission (FTC) in through education, advocacy, regulation settling with the makers of “Prized,” a mobile and enforcement. In addition to reviewing app that allegedly hacked Android smartphones thousands of consumer complaints each and/or tablets with harmful malware. year, the Division uses its website and public Under the settlement, Ohio-based app outreach programs to promote awareness developer Equiliv Investments and Ryan of consumer protection laws and educate Ramminger, principal of the company, are members of the public on how to protect banned from marketing or selling products themselves in the marketplace. The Division that function as malware, and from using also protects consumers by ensuring that misrepresentations in the sale or advertise- the state’s licensed professions and trades ment of software products. In addition the observe applicable standards of conduct. defendants must, for the next 20 years, The Division keeps a vigilant watch for regularly provide the Division and the FTC emerging consumer threats and takes with financial, personnel, and other records immediate steps to address them. More intended to help ensure their full compli- information on the Division is available at ance with the settlement terms, as well as www.njconsumeraffairs.gov. with applicable federal and state laws. “Tidbit” Software – The Division found that despite initial assertions to the contrary 2015 Highlights by the developer of the Bitcoin mining Combating Cyber Fraud software Tidbit, the software was being used to gain access to computers owned by Countering the Cyber Fraud Menace: persons in New Jersey without the computer In 2015, cyber fraud and identify theft owners’ knowledge or consent. Under a emerged as leading threats to consumers settlement agreement, Tidbit’s developer in New Jersey and across the nation. The is prohibited from accessing or attempting Division responded to this rising menace to access New Jerseyans’ computers by improving its cyber fraud investigative without clearly and conspicuously notifying capabilities and taking aggressive action the owners and obtaining their verifiable against on-line con artists operating in New consent. The settlement also includes a Jersey. For example, the Division completed $25,000 suspended monetary payment. If installation of a cyber-lab to assist its the software developer fails to comply with Cyber Fraud Unit with cyber fraud and data the terms of settlement over the next two breach investigations. Working with the years, the suspended $25,000 payment can Division of Law and a newly-retained privacy be reinstated. consultant, the Cyber Fraud Unit continued to expand the Division’s reputation as an DealerApp Vantage, LLC – To resolve State innovator in the field of privacy and data allegations that its customized car dealer security protection. The Unit also stepped apps collected and disseminated users’ up investigation and enforcement efforts personal information without their knowledge against entities that promised to safeguard or permission, Dealer App agreed to revise customers’ personal information but failed its business practices to comply with the to do so, or that interfered with customers’ law and pay $48,724 to the State in civil control over personal privacy settings. The penalties and costs. Under the settlement, Division can civilly prosecute such conduct $26,224 of the payment amount will be under the Consumer Fraud Act, the New vacated if Dealer App commits no violations Jersey Computer Related Offenses Act, of the settlement terms within two years. and other statutes.

37 New Jersey Office of The Attorney General • Department of Law & Public Safety

Protecting Consumers, Development of Extreme Weather Emergency Action Plan: When severe Strengthening Services weather leads to storm damage and “Fighting Fraud” Public Outreach declaration of a State of Emergency, most Campaign: In 2015, the Division received New Jersey residents band together and information suggesting that imposter frauds help each other through the hard times. and other criminal scams were on the rise in However, in any given disaster situation, an New Jersey. Ruses like the IRS phone scam, unscrupulous few typically seek to exploit lottery and sweepstakes cons, and the so- the misery of others for profit. To ensure called “grandparent scam” were being played consumers are protected from price gouging out across the state, particularly against during emergencies, the Division developed senior citizens. To combat this rising threat, an emergency protocol for application during the Division created and launched a program a declared State of Emergency. The Division’s called “Fighting Fraud,” an aggressive Extreme Weather Emergency Action Plan public outreach campaign to educate ensures that consumers are quickly alerted consumers on how to spot scams and avoid to the threat of price gouging, educated them. The “Fighting Fraud” presentations, on how to avoid it, and informed on where which included guest speakers and law to report it. Through a designated set of enforcement footage of real-life scammers protocols, when a State of Emergency is at work, outlined the various ways in which declared, members of the Emergency Action con artists use phone calls, emails, and other Plan team mobilize to activate a consumer means to trick their victims into sending hotline specifically designated for price- money or personal information. gouging complaints. Among other useful information, the Investigators from the Division’s Office of presentations provided basic steps that Consumer Protection monitor the hotline every New Jerseyan should take when around-the-clock and respond promptly someone offers money for a fee, demands to complaints. The Division’s Office of money, or asks for personal information. Communications immediately issues a news Over the course of 2015, the Division visited release reminding consumers of the State’s senior centers in all 21 counties to deliver price gouging laws and urging them to call the Fighting Fraud message, and helped the hotline if they suspect fraud. Members hundreds of potentially vulnerable senior of the Division’s Web Team update the citizens prepare to fight back against fraud. Division’s website to ensure that consumers Improved Public Accessibility to Division receive the latest storm-related information Services: From investigating consumer on the Division’s Extreme Weather Consumer fraud complaints to registering and licensing Resources page. 750,000 businesses and professionals, The page also includes information on the Division is an invaluable source of fraudulent charity warnings, disaster-related services to the public. In 2015, the Division scams and other relevant topics. enhanced public access to those services through technological upgrades and the Discipline for Doctors Who creation of an entirely updated website. Commit Sexual Misconduct The Division’s retooled website is more In 2015, the Division set forth aggressive user friendly and permits consumers to file and comprehensive reforms aimed at complaints online. New features include strengthening discipline by the Board of a redesigned layout for ease of use, a Medical Examiners (BME) relative to doctors more appealing appearance and improved who commit sexual misconduct. These search engine functionality across the reforms have led to more effective discipline various units of the Division. The website by the BME and an emphasis on improved also features a more intuitive layout for process, appropriate penalties, and better better online access to services – such cooperation between the Division and as the filing of complaints, applying for law enforcement authorities. In 2015, the licensure or license renewal, and verifying a Division filed charges seeking to revoke the license or registration. The improved layout licenses of six doctors accused of sexual is also more conducive to formatting for misconduct with patients. The Division use on various mobile devices, including obtained temporary license suspensions smartphones and tablets. 38 Division of Consumer Affairs against all six as the charges against them made easier when the Division launched continue to be litigated. The Division also the nation’s first mobile app allowing revoked the licenses of five additional doctors registrants to access the PMP database from for sexual misconduct with patients, resolving smartphones and handheld devices. The charges brought prior to 2015. Division continues to encourage use and understanding of the PMP through outreach Fighting Prescription Drug presentations at New Jersey hospitals and Diversion and Abuse at other venues. In an effort to enhance the In 2015, New Jersey was hit hard by technological capabilities of the PMP, the the same opioid addiction crisis that was Division competed for and won a $500,000 claiming lives across the United States. The federal grant to purchase software that will Division of Consumer Affairs responded allow prescribers to electronically report lost to this mounting threat by launching new or stolen prescriptions. That information, in initiatives and expanding existing programs to turn, will be automatically captured by the curb the abuse of prescription drugs known system and disseminated to appropriate to pave the way to addiction. agencies. The grant also provided funding to equip the PMP with enhanced data analytics, Expansion of PMP Database: The Division which can be used to better identify patterns continued to expand and improve access to its of prescription drug diversion or abuse. The Prescription Monitoring Program (PMP), a vital Division also increased the PMP’s interstate tool in New Jersey’s efforts to curb prescription data-sharing capabilities by connecting with drug misuse. Launched in 2012, the PMP’s four additional states – Rhode Island, Virginia, searchable data-tracking system keeps Minnesota, and South Carolina – over the records of prescriptions filled in New Jersey for course of 2015, increasing to a total of six controlled dangerous substances (CDS) – the the number of states now interconnected category of drugs that includes highly addictive with New Jersey. The interstate hub enabled opiate painkillers. Accessible to State-licensed 165,716 prescriber data requests by year’s pharmacists and CDS prescribers, the system end, the majority of those requests generated logs details of prescription CDS transactions, by New Jersey users. including the name, quantity and strength of the medication, the name of the patient, Expansion of Project Medicine Drop: With and the identity of the prescriber and the statistics showing a clear nexus between dispensing pharmacist. The information abuse of the prescription painkillers can be used by prescribers to spot patterns found in many home medicine chests and of prescription drug diversion or misuse by experimentation with harder drugs, including their patients, including “doctor shopping” heroin, the Division continued to expand – obtaining multiple CDS prescriptions by and promote its Project Medicine Drop hop-scotching from physician to physician, (PMD) program in 2015. Project Medicine typically without disclosing prior prescriptions. Drop provides New Jersey residents with a The Division also provides case-specific PMP convenient disposal method for prescription information to law enforcement agencies drugs that otherwise can be abused, stolen (pursuant to grand jury subpoenas or court or resold. The Program places lockable orders) for investigative purposes, including metal containers inside select New Jersey the investigation of “pill mill” doctors that police departments, sheriff’s offices, State indiscriminately prescribe CDS. Police barracks, and other secure locations. The boxes are available throughout the By the close of 2015, the PMP contained year – 24 hours a day – to discard expired data on more than 55 million prescriptions or unused medications safely and securely. written since 2011. Throughout the year the Drop Boxes accept solid pharmaceuticals Division continued efforts to boost enrollment such as pills, capsules, patches, inhalers in the PMP by automatically registering and pet medications. practitioners who successfully applied for the renewal of their State-granted authority to In 2015, the Division installed 40 new prescribe CDS. As of year’s end, approximately drop boxes throughout the state, bringing the 97.5 percent of doctors and 77 percent of all total number to 153. Boxes are now located eligible prescribers were enrolled in PMP, and in all 21 counties, including a college police the system had been accessed 2.1 million times. department and two military installations. To encourage use of the system, access was 39 New Jersey Office of The Attorney General • Department of Law & Public Safety

To reach more consumers, the Division Office of Consumer Protection began in 2015 to automatically distribute transportable drop boxes to every agency The Office of Consumer Protection (OCP) is that requested a stationary box. The the primary unit responsible for investigating mobile boxes can be driven by authorized citizen complaints received by the Division of law enforcement personnel to senior Consumer Affairs. OCP addresses thousands communities, drug awareness events, of complaints annually by investigating, educational outreach events and other mediating and issuing enforcement notices locations to make it easier for residents to when appropriate. discard unwanted medications. The Division During 2015, OCP handled more than distributed 13 additional mobile drop boxes 67,000 phone calls and 9,430 consumer in 2015, bringing the total to 113. More complaints. OCP also opened 95 formal than 45,000 pounds of unwanted medicine investigations, closed 134 investigations, was collected and safely destroyed (through issued 267 Notices of Violation, assessed incineration) in 2015. $2.8 million in restitution, and issued and Pain Management Council’s Draft assessed $19,331 in penalties and costs. Guidelines: The Division’s Pain Management OCP also initiated enforcement actions to Council is an advisory body whose members ensure compliance with the following two represent regulatory agencies, healthcare newly-enacted laws: professional organizations, medical Angelie’s Law: Angelie’s Law was named consultants, and hospitals. In 2015, the for eight-month-old Angelie Paredes, who was Pain Management Council undertook a killed in an accident caused by an autobus comprehensive review of the standards driver who was using his cell phone while and regulations that apply to all healthcare driving. The law requires certain autobuses to professionals who prescribe or dispense post public notices outside and inside telling prescription drugs – including physicians, passengers how to report complaints and advance practice nurses, pharmacists, concerns to the Division of Consumer Affairs. and others. The panel then drafted a OCP conducted unannounced inspections of comprehensive set of voluntary guidelines commercial autobuses in 2015 and issued that will enable healthcare professionals to dozens of Notices of Violation (NOVs) to provide pain management while maintaining owners for failing to display the public notices effective controls to prevent the diversion required under “Angelie’s Law.” Autobus and abuse of prescription drugs. The owners who failed to post the required signs guidelines are expected to be formally were assessed civil penalties and other costs. issued in 2016. Pet Purchase Protection Act – OCP Continued Disciplinary Actions for CDS inspected pet shops throughout New Jersey Violations: With prescription drugs serving in 2015 to ensure compliance with new as a gateway to opioid addiction, the Division provisions of the Pet Purchase Protection sought to ensure that physicians and other Act aimed at safeguarding consumers from prescribers were not contributing to the purchasing unhealthy pets. The inspections problem through indiscriminate prescribing resulted in dozens of shops receiving Notices of CDS. Through its Enforcement Bureau and of Violation for allegedly failing to label the in cooperation with law enforcement, the cases of dogs and cats with each animal’s Division continued to bring aggressive action breeding history, medical background, and against medical professionals and others other information required under the law. for indiscriminate prescribing and other In all, a total of more than $400,000 in drug-related offenses. In 2015, the Division penalties was assessed against violators succeeded in revoking, suspending, or through the OCP pet shop inspections. otherwise restricting the practicing authority of dozens of prescribers, pharmacists, or pharmacies accused of CDS-related offenses.

40 Division of Consumer Affairs

Broad Scope of charged in civil enforcement actions with deceptive advertising practices and failure OCP Investigations to make mandatory disclosures, among In 2015, OCP also initiated and concluded other violations. For example, in a scheme a significant number of investigative efforts commonly known as “bait and switch,” Route that reflected the Division’s wide range of 22 Auto Sales advertised a vehicle at a very consumer protection efforts provided for under low price, but when consumers attempted the Consumer Fraud Act (CFA) including: to purchase the advertised vehicle, the Utility Services Fraud: Continuing its dealership said it had been sold, and offered strong collaboration with the Board of the consumer much higher priced vehicles. Public Utilities (BPU), OCP settled two of Route 22 Auto Sales settled for $1.8 million three major lawsuits filed against third- and 21st Century Auto Group settled for party energy suppliers and reached a $130,000. Bergen Auto Group, LLC settled for settlement in principle with a third supplier. a civil penalty of $109,600 plus other costs. The lawsuits, filed in 2014 by both OCP and Internet Sales Fraud: In 2015, the BPU, alleged the three companies violated Division saw an uptick in complaints New Jersey’s Electric Discount and Energy related to online retail sales. The Division Competition Act and the Consumer Fraud responded by cracking down on some of Act by failing to deliver promised monthly the biggest generators of Internet sales savings to consumers. In January 2015, complaints. Including: New York based HIKO Energy agreed to pay Stanley Safe Club: The Division filed a $2.1 million – including $1.85 million in Complaint against Stanley Warranty LLC, consumer restitution – to resolve the State’s which does business as “Stanley Safe allegations. In August, Keil & Sons, Inc. d/b/a Club,” and its owner for allegedly defrauding Systrum Energy agreed to pay $554,698, consumers to whom it sold contracts for the including more than $436,000 in consumer repair and replacement of motor vehicles, as restitution. Both companies also agreed to well as home systems and appliances. amend their business practices to comply with the law. The third company, Palmco Direct Buy Auto Warranty: Direct Buy Energy of NJ, entered into a settlement in Associates Inc., d/b/a “Direct Buy Auto principle that was finalized in 2016. Warranty,” agreed to revise its business practices and pay the State $779,914 – Home Improvement and Financial including consumer restitution – to resolve Fraud: OCP’s Home Improvement and allegations of false advertising and failing to Financial Fraud Unit continued to use pay for promised covered repairs. Notices of Violation as an effective and cost-conscious enforcement tool to address Choice Home Warranty: CHW Group, Inc., the high volume of complaints against d/b/a “Choice Home Warranty,” agreed to home improvement contractors. In 2015, stop doing business in New Jersey and pay OCP issued a total of 223 violation notices as much as $200,000 in restitution – as including failure to register with the Division, well as other penalties and costs – to resolve failure to provide insurance documentation allegations of false advertising and failing to and various contract violations. In total, the pay for promised covered repairs. Notices of Violation sought more than $2.56 Telebrands Corp.: This online retailer, million in penalties and consumer restitution known for its “As Seen on TV” products, from contractors. settled fraud allegations by agreeing to Commercial Fraud: OCP’s Commercial pay $550,000 to the State and change Fraud Unit was responsible for investigating its business practices. matters involving three major New Jersey auto dealerships: Route 22 Auto Sales, 21st Century Auto Group, and Bergen Auto Group, d/b/a “Wayne Mazda” and “Wayne Hyundai.” The dealerships were

41 New Jersey Office of The Attorney General • Department of Law & Public Safety

Professional Boards In 2015, the Office of Weights and Measures participated in a joint auto parts The Division’s Professional Boards Unit store initiative with the Office of Consumer provides staff to support 47 professional/ Protection designed to ensure compliance occupational licensing boards that license with consumer laws regarding price scanning, more than 750,000 professionals and disclosure of merchandise pricing, and businesses throughout New Jersey. notices as to the right to a written estimate Throughout 2015, the boards and for automotive repairs, among other things. committees issued a total of 67,707 licenses The initiative included more than 20 store to individuals and businesses. A total of inspections at Pep Boys, Advance Auto, 321,835 licenses were renewed during the AutoZone, and NAPA Auto Parts locations. same period. The inspections resulted in civil actions in To improve the licensing process, the Essex County Superior Court against Advance Division continued to work toward identifying Auto and Pep Boys. issues that may cause delays. Specifically, The Office of Weights and Measures also the Division worked to streamline the conducted an initiative in conjunction with processes used by its contract vendor to the Newark Police Department to register help ensure that required documentation and inspect all of the city’s taxi meter is received by board staff more quickly. In devices. Weights and Measures certified the addition, the reallocation of staff resources distance courses to be used for inspections during peak times – and continued roll-out of to formally bring these taxi meters into the Division’s new document management regulatory compliance. To date, the Office and work flow management systems – are has conducted approximately 500 combined helping to improve overall processing times. inspections and re-inspections of these Currently, all applications for license renewals meters, ensuring accuracy of the devices and can be submitted online, while initial equitable fares being charged to consumers. applications for licensure are in the process As 2015 drew to a close, initial of being transitioned to an online system. The implementation of WimWam software Division has been tremendously successful was completed giving Weights and in reducing licensing and certification times Measures enforcement inspectors the for nurse applicants who have passed the ability to complete inspection reports for nursing exam, and for certified homemaker- the first time electronically. The software home health aide applicants, from multiple will allow for inspection report record months to 3-4 days (nursing) and 10-14 days keeping, historical tracking and aggregate (CHHAs), respectively. reporting. The software will also be Office of Weights and Measures available for purchase and distribution to individual counties, allowing for easier The Office of Weights and Measures is implementation for tracking of reports, responsible for the testing, certification enhanced inspection report record keeping, and registration of all commercial improved aggregate reporting capabilities, and law enforcement weighing and and more efficient tracking of the status of measuring devices, unit pricing, inspecting court filed complaints. commodities in package form, ensuring all weights and measures are traceable back to the federal standards and other related activities. In 2015, the Office of Weights and Measures reimbursed approximately $1.4 million to 26 county and municipal weights and measures offices. During 2015, the Office of Weights and Measures registered 210,484 weighing and measuring devices, which were operated by nearly 28,000 businesses and collected approximately $3,7 million in registration fees.

42 Division of Consumer Affairs

Bureau of Securities For example,, significant amendments were made to regulations governing the The Bureau of Securities administers conduct of broker-dealers and their agents, and enforces the Uniform Securities Law as well as their investment advisers and and related regulations. Bureau employees representatives. The amendments both register stockbrokers, investment advisers, modernized the Bureau’s rules and provided broker-dealers and investment adviser new guidance to investment advisers on such representatives. The Bureau also investigates issues as the maintenance of books and and prosecutes individuals and entities who records and proper supervision. violate the New Jersey Uniform Securities Law and related regulations. In addition, the In addition, legislation was signed into Bureau conducts examinations of broker- law in late 2015 that provided a securities dealers and investment advisers, and exemption for “crowdfunding” offerings. educates investors and the securities industry. The law contained emergency rulemaking authority, and BOS created a regulatory In 2015, the Bureau of Securities: scheme for the “crowdfunding” offerings, n Collected approximately $19.6 million in as well as for the platforms on which the revenue from registration filing fees securities offerings would be solicited. n Collected more than $200,000 dollars in civil monetary penalties n Obtained settlements or judgments of more than $29.4 million dollars in restitution or disgorgement for investors n Responded to approximately 22,000 inquiries and investigated 215 complaints n Reviewed and processed more than 43,000 registration applications n Reviewed and declared effective 38 securities offerings n Conducted more than 900 examinations During 2015, the Bureau drafted and implemented a number of regulatory changes that impacted on the securities industry in New Jersey.

43 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Highway Traffic Safety Division of Highway Traffic Safety

The Division of Highway Traffic Safety is responsible for developing and implementing Keeping Alcohol & a comprehensive plan to reduce fatalities, injuries and property damage resulting from Drugs off the Road motor vehicle crashes. Chief priorities of the Drive Sober or Get Pulled Over: Grant agency include driver and passenger safety, funding from the Division supported two pedestrian safety, and discouraging such enforcement campaigns in 2015 related threats to the motoring public as speeding, to the national anti-drunk-driving campaign aggressive driving, impaired driving and “Drive Sober or Get Pulled Over.” The distracted driving. For more information about first campaign actually launched in late the Division visit www.njsaferoads.com. 2014 and ran through January 2, 2015. Three-hundred-eighty New Jersey policing agencies participated in the campaign, Overview making a total of 2,093 arrests for driving The Division of Highway Traffic Safety while intoxicated, giving out 6,410 speeding worked around the clock in 2015 to make tickets and issuing 3,923 summonses for driving safer for New Jersey residents failure to wear a seat belt. and visitors, both through its own efforts and through grant funding to local The second campaign, which ran from agencies. Throughout the course of the August 21, 2015 through September year, the Division undertook an array of 7, 2015, involved a total of 361 police safety programs relating to education, agencies. In that campaign, participating enforcement and engineering. As is the agencies made 1,786 arrests for driving case annually, the bulk of the Division’s while intoxicated, issued 5,964 speeding funding in 2015 came from the federal tickets and issued 3,361 summonses for government via the National Highway Traffic failing to wear a seat belt. Safety Administration. Funding received by Overall, the two “Drive Sober or Get Pulled the Division was used in the development, Over” enforcement campaigns in 2015 implementation and maintenance of a resulted in nearly 4,000 arrests for driving comprehensive statewide traffic safety while intoxicated, more than 12,000 speeding plan, and also distributed among local, tickets issued by police, and more than 7,000 county and state agencies in the form of summonses for failure to wear a seatbelt. traffic safety grants. In 2015, there were a total of 562 traffic fatalities in New Jersey – a one percent increase. Going forward, the Division will continue to work with its partners at every level to reduce the number of annual traffic fatalities by promoting safe driving habits and discouraging dangerous driving practices.

45 New Jersey Office of The Attorney General • Department of Law & Public Safety

New Jersey State Police participated in The 2015 “Click It or Ticket” effort ran from both enforcement campaigns. Overtime May 18 through May 31, with approximately enforcement grants helped subsidize the 75 percent of the state’s nearly-500 police “Drive Sober or Get Pulled Over” effort for agencies participating, including New Jersey many police departments involved in the effort, State Police. Overall, police issued 26,308 but more than half used their own resources. seat belt summonses during the two-week Cops in Shops: A collaborative effort, Cops campaign, and issued 633 citations for in Shops is funded each year by the Division improper child restraint. In addition, police of Highway Traffic Safety and overseen by the issued 4,969 speeding tickets and made Division of Alcoholic Beverage Control. In the 833 arrests for driving while intoxicated. summer of 2015, DHTS distributed a total of Seat Belt Usage Survey: New Jersey $81,000 in grants to shore-area towns that motorists showed an encouraging increase used the money to pay local police to work in front seat belt usage in 2015. According undercover in participating retail locations. to an annual statewide seat belt usage As part of the operation, police either posed survey conducted by the New Jersey Institute as liquor store employees or were positioned of Technology, the front seat belt usage outside of stores to catch individuals trying to rate increased to 91.3 percent in 2015 buy alcohol for underage drinkers. In summer compared with a rate of 87.5 percent the 2015, a record 39 shore towns from Atlantic prior year. Rear-seat usage of seat belts Highlands to Wildwood participated in the also increased in New Jersey in 2015 – to initiative, which ran from May 23 through 81 percent (contrasted with 80 percent September 15. The result was 252 arrests. the prior year.) Based on data guidelines Prior to the summer initiative, a Cops in developed by the National Highway Traffic Shops effort aimed at underage drinking Safety Administration, more seat belt usage in New Jersey’s college towns had run translates into fewer fatalities and serious from December 1, 2014 through June 15, injuries, and a savings of millions of dollars 2015. Dubbed the College Fall Initiative, the in crash-related economic costs. New Jersey program allotted $65,000 to 20 towns and experienced a steady increase in front resulted in 164 arrests. seat belt usage between 1996 and 2011, peaking at 94.5 percent in 2011. Since then Occupant Protection it has fluctuated on an annual basis, with Click-It or Ticket: In May 2015, local a decline in 2012, an increase in 2013, and state law enforcement agencies in and another decline in 2014. The Division New Jersey joined peers in 15 other states continues to engage in vigorous public in a coordinated, border-to-border seat awareness initiatives, and to support seat belt enforcement effort that kicked off the belt enforcement efforts by local police, in annual “Click It or Ticket” campaign. Law an effort to equal or exceed the peak usage enforcement officers from more than 50 levels attained in 2011. departments in New Jersey joined with colleagues from New York, Maine, Vermont, Connecticut, New Hampshire, Rhode island, Massachusetts, Pennsylvania, Delaware, Tennessee, West Virginia, Maryland, Virginia, Georgia and Florida to set up checkpoints and roving patrols near border crossings to enforce seat belt usage.

46 Division of Highway Traffic Safety

(infant) or forward facing (toddler) seats. Other Highlights The “Staying Safe in the Car” booster seat Distracted Driving Crackdown: In 2015, and seat belt program, designed to reach a total of 313 police agencies across New the 5-to-9-year-old age group, continued Jersey participated in the distracted driving in 2015 as well. The interactive program enforcement campaign known as “U Drive. highlights proper use of booster seats for U Text. U Pay.” Conducted during the children who have outgrown child safety three-week period from April 1 through 21, seats, but are still too small to be properly the crackdown resulted in police issuing protected by vehicle lap and shoulder belts. 8,318 summonses for unlawful cell phone The Division also continued in 2015 to use/texting, and another 5,286 tickets for be the statewide training contact for child careless driving. In addition, participating passenger safety training and information. police agencies issued 7,179 speeding There were seven child passenger safety tickets and 4,513 tickets for failure to technician training courses held, which wear a seatbelt. Approximately 5,000 law trained 132 new technicians. To date, enforcement man-hours were spent during approximately 1,000 individuals representing the “U Drive. U Text. U Pay” campaign, public safety, health and injury prevention which included 42 fixed distracted driver programs have been trained as certified checkpoints. In addition to the campaign’s technicians. Also in 2015, Safe Kids NJ and enforcement effort, the program featured its statewide network of coalitions conducted an awareness component in which New 222 child highway safety education programs Jersey radio stations aired recorded for nearly 27,000 participants and inspected messages urging drivers to put down their 4,850 car seats during the year. phones and just drive. Child Passenger Safety Week: Grants were provided directly to agencies for child passenger safety programs, technician training, re-training and program development. The grant program focused on two major areas – Parent Education and Student Programs. Parent (or caregiver) education programs were typically conducted at community events, where parents or caregivers worked in a one-to-one situation with trained technicians, and were instructed on how to properly install child safety seats. Most drivers who attended these events were individuals with children ages 4 and under, with either rear facing

47 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Alcoholic Beverage Control Division of Alcoholic Beverage Control

The primary mission of the Division of Alcoholic Beverage Control is to regulate 2015 Enforcement how alcoholic beverages are manufactured, distributed, sold and transported within New Highlights Jersey. The Division is the official repository n Miracle Bar — One of several intoxicated for alcoholic beverage license ownership patron cases settled by the Division in information. The Division also issues special 2015, this matter involved the over-serving permits to enable the sale of alcoholic of alcohol to an individual at the Miracle beverages in conjunction with charitable Bar in Toms River. The patron, who was on and business-related events. The Division is foot, left Miracle Bar and was subsequently a revenue-generating agency. It receives no killed while crossing Route 37. State appropriation, but returned in excess The pedestrian had a BAC of .24 – three of $4 million to the State Treasury in 2015, times the legal limit. Because the incident along with fringe benefits and other excess resulted in a fatality, ABC’s Enforcement revenue beyond operating costs. Among Bureau is seeking revocation of the Miracle other functions, the Division: Bar license. n Investigates applicants and issues licenses The Bureau has filed a motion for summary and permits to manufacturers, wholesalers, decision, which at this writing is pending transporters and warehouses. before the Office of Administrative Law. n Supervises municipal control over retail n Panther Valley Pub – This case involved liquor licensing. the over-serving of a patron with a BAC of n Enforces the Alcoholic Beverage Control Act .18 at Panther Valley Pub in Allamuchy. The and regulations promulgated under the Act, patron left the pub and was subsequently including appeals brought to the Division involved in a two-vehicle crash, which Director from local municipal action. resulted in one person in the other car being killed and six others suffering n Promulgates rules and regulations injuries. Because of the fatality, and the necessary for the fair, impartial and injuries suffered by others – some of them comprehensive administration of law. serious – the Enforcement Bureau is If a licensee violates any law or regulation, seeking revocation. the ABC Director may suspend or revoke n Wild Bull – The Division filed charges in the license or impose a fine and/or other 2015 against the Wild Bull in Paterson appropriate condition. The Division also for serving alcohol to 18 persons under is charged with preserving the “beneficial the legal drinking age of 21. The bar aspects of competition and fostering was previously prosecuted for the same moderation and responsibility in the violation, so the current violations are consumption of alcoholic beverages.” For further information about the Division visit www.nj.gov/oag/abc.

49 New Jersey Office of The Attorney General • Department of Law & Public Safety

charged by ABC as second offenses. As of participating retail locations, either posing this writing, the case is before the Office of as store employees or maintaining positions Administrative Law, and the Enforcement outside of stores, where they could catch Bureau is seeking a 540-day license individuals purchasing alcohol on behalf of suspension. underage drinkers. Earlier in 2015, a Cops in n Twins Plus Lounge: Located in South Shops campaign aimed at underage drinking Hackensack, the Twins Plus Lounge in New Jersey’s college towns resulted in 164 was charged in 2015 with failing to arrests. Dubbed the College Fall Initiative, disclose ownership interests held by two the earlier Cops in Shops effort actually was former U.S. Drug Enforcement Agency launched in December 2014. The program (DEA) employees. Both of these ex-DEA allotted $65,000 to 20 college towns across employees were convicted in a separate New Jersey. federal prosecution of not disclosing n Technology Initiatives: The Division their ownership interest (e.g., a crime continued to move forward on its of moral turpitude), which is a statutory technology initiatives in 2015, including disqualification. The Division’s Enforcement launching POSSE, ABC’s online licensing Bureau is seeking revocation of the Twins system. POSSE makes it possible for Plus Lounge license. electronic filing of applications, such as state-issued licenses, social affair and catering permits, brand registration and Other Highlights extension of premises. Cops in Shops: In 2015, shore towns from In addition, the Division’s Licensing Bureau Atlantic Highlands to Wildwood participated is working closely with Counsel to the in the summer initiative of Cops in Shops, an Director’s Office and the Enforcement enforcement effort that employs undercover Bureau on the transition to electronic police to crack down on underage drinkers Current Price List filing. Electronic CPL and those who buy alcohol for them. The filings will provide the Division with the summer initiative ran from May 23 through ability to perform searches of prices to September 15, and resulted in 252 arrests. ensure that wholesalers are selling to Cops in Shops is funded each year by the alcoholic beverage store retailers on a Division of Highway Traffic Safety. In the non-discriminatory basis. Upon completion 2015 summer version, $81,000 in grants of the testing phase, the Division intends was distributed among a record 39 shore to roll out mandatory electronic filing by all towns. Those towns used the money to wholesalers in the near future. pay local police to work undercover in

50 Division of Alcoholic Beverage Control n License Renewals: The Division continued Under the law, the holder of a sporting to annually renew more than 9,000 retail facility license can sell and serve alcoholic licenses, 1,300 wholesale licenses, 23,000 beverages as the owner, operator, lessee, permits, and 75,000 brand registrations. or concessionaire of a sporting facility The Licensing Bureau continues to see – by the glass or other receptacle, or in an increase in transfer applications and original containers on the premises. The inactive licenses due to economic factors. license holder can also share control of the n Fort Monmouth Revitalization: In 2015, premises and the proceeds from alcoholic the Division worked in conjunction with beverage sales with the owner, operator, the Office of Legislative Services (OLS) concessionaire, or lessee of the facility. and the Deputy Attorney General for the Specifically, the Division has identified current Fort Monmouth Economic Revitalization facilities that qualify for this license (e.g., Met Authority to create recommendations Life Stadium in East Rutherford, the Prudential regarding a proposed bill to increase Center in Newark, and Red Bull Arena in the number of liquor licenses in certain Harrison), and has finalized the electronic municipalities within Fort Monmouth, application form to be used by applicants. notwithstanding the population cap set forth in N.J.S.A. 33:1-12.14. n Sports Facility Licensure: The Division continued working in 2015 to implement an amendment to Title 33 that adds a separate consumption license known as a “sports facility license,” N.J.S.A. 33:1-12(6). At this writing, the Division remains in the process of implementing related regulations.

51 New Jersey Office of The Attorney General • Department of Law & Public Safety

Division of Gaming Enforcement Division of Gaming Enforcement

The Division of Gaming Enforcement In 2015, State Police protected the casinos is a law enforcement agency and the and their patrons by initiating upwards of investigative arm of the casino regulatory 1,400 criminal investigations and completing system, which has as its mission the more than 1,100 Operations Reports. As enforcement of the Casino Control Act. The a result of these efforts, State Police – in Division’s multi-disciplinary and specialized many instances working cooperatively with workforce consists of attorneys, investigators, local, county, state and federal partners – accountants, members of the State Police arrested approximately 750 persons in the and the Division of Criminal Justice, and casinos. They also issued upwards of 800 support personnel. The Division investigates, hand summonses within the casino district. issues reports and, when necessary, Of note, State Police detectives assigned challenges the qualifications of individual and to the Financial Crimes Squad investigated corporate applicants for casino and casino- 175 criminal complaints related to Internet related licenses. The Division also reviews gaming. In addition, approximately $160,000 and audits casino-hotel operations, tests in U.S. currency was seized by State Police all casino slot machines and systems prior Casino Gaming Bureau personnel as a result to use on the casino floor, and investigates of criminal investigations. and prosecutes all casino-related crimes. The Division is well recognized around the United States and around the world as a Casino Entity premier casino regulatory agency. On an annual basis, a variety of casino regulatory Licensing Bureau agencies, both domestic and foreign, consult The Casino Entity Licensing Bureau ensures with the Division in order to emulate New that each applicant for, and holder of, a Jersey’s gaming laws, systems and practices. casino license meets the State’s standards For more information about the Division of for financial responsibility, honesty, integrity Gaming Enforcement visit www.njdge.org. and good character, and that such licensees are not in any way disqualified under the law. As part of its mission, the Bureau investigates Keeping Casino and monitors the business transactions of applicants, licensees and related companies Patrons, and and conducts investigations of all principal directors, officers and employees. It also Employees Safe investigates and monitors the business Atlantic City’s casinos, casino patrons transactions of investors, security holders and employees are protected by the New and financial backers, and examines the Jersey State Police, a full-service criminal background of casino companies and enforcement and investigative agency their affiliates. The Bureau’s legal unit dedicated to maintaining a safe environment reports information to the Casino Control for the gaming industry and its surrounding Commission on investigations related to environs. A contingent of State Police – casino licenses, makes recommendations to collectively forming the State Police Casino the Division Director regarding qualification, Gaming Bureau – is assigned to the Division waiver and financial stability determinations, of Gaming Enforcement. Its role is to enforce and litigates violations of the State’s casino the State’s criminal laws, including the laws and regulations. The Bureau’s Office criminal provisions of the Casino Control of Financial Investigations (OFI) works to Act. State Troopers assigned to the casinos ensure the financial stability and integrity of report directly to the DGE Director, and to all casino applicants and licensees, as well the Superintendent of the State Police. as their respective holding companies. On a Troopers operate out of each of the casinos, continuing basis, OFI monitors the financial and from the DGE offices in Atlantic City. stability of casinos to ensure that the public There are four units within the State Police interest is protected and that each casino Casino Gaming Bureau including: the Casino company is meeting its ongoing tax, wage Operations Unit, the Special Investigations and other fiscal obligations. Unit, the Intelligence Management Unit and the Casino Services Unit.

53 New Jersey Office of The Attorney General • Department of Law & Public Safety

Trump Entertainment: On March 30, scheduled for trial in November 2016. In 2015, Trump Entertainment filed a petition June 2015, the Revel Entities and the State seeking certain declaratory relief needed entered into a settlement agreement through to consummate a restructuring plan that which the State received certain payment would convert a loan held by companies as satisfaction of an administrative priority affiliated with Carl Icahn into equity, and claim filed in Bankruptcy Court by the Division provide Trump Entertainment with a new of Taxation, and Revel released all claims to $42.5 million term loan, as well as $40 certain funds held by various state agencies. million revolving credit facility. In May 2015, In August 2015, the Bankruptcy Court issued the Division completed its investigation of a final decree closing the Chapter 11 cases the entities and persons affiliated with Icahn. for the Revel Entities, with the exception of The Division recommended that the Casino Revel AC, which at this writing remains open Control Commission find all entities and and pending. By order dated December 21, persons qualified and grant the requested 2015, Revel surrendered its casino and relief subject to certain conditions. On casino hotel alcoholic beverage licenses. June 10, 2015, the Commission issued MGM – Upon receiving approval for a a resolution implementing the Division’s statement of compliance in September 2014, recommendations. The restructuring MGM Resorts International was requalified as plan did not become effective for several a 50 percent joint venture owner and holding months owing to the delayed satisfaction of company of Borgata Hotel Casino & Spa. certain conditions – including that a certain After those determinations, which included bankruptcy court order regarding a collective qualification of Dubai World and its Infinity bargaining agreement become a Final World subsidiaries as over 5 percent equity Order. The collective bargaining agreement shareholders, a stock redemption process Order relieved Trump Taj Mahal of certain in 2015 diluted Dubai World’s holdings to obligations under an expired collective 4.6 percent. Following a petition request for bargaining agreement with Local 54. The waiver, the Director, on August 14, 2015, union subsequently filed an appeal which did issued an Order waiving Dubai World, the not succeed, clearing a path legally for Icahn Infinity World entities and the associated to become owner of the Taj Mahal property individual qualifiers from having to qualify and the former Trump Plaza. under the Act subject to certain conditions – Revel: During June 2014, Revel and its including a future increase in Dubai related entities (Revel Entities) filed a second World’s holdings. voluntary Chapter 11 bankruptcy proceeding In June 2015, Kirk Kerkorian, majority within a two-year period in the U.S. District shareholder of MGM stock through his Court for the District of New Jersey in Camden. Tracinda Corporation, passed away. His The focus of the proceeding was to conduct will directs that his MGM stock holdings a sale process through an investment be liquidated in an orderly manner. At this firm. On April 7, 2015, Revel sold its real writing, no liquidation of the shares has property and certain assets to Polo North occurred, although a notice of proposed sale Country Club, Inc., owned by Glenn Straub, of securities was recently filed documenting a for $82 million. Polo North was a party to call option for UBS to purchase a percentage several lawsuits regarding the property, of Tracinda’s MGM shares. which involved the power plant, sewerage and third-party restaurant and nightclub operators. With the exception of a federal case involving the Revel tenants – IDEA Boardwalk v. Polo North Country Club, Inc. – these lawsuits have now settled. At this writing, the IDEA Boardwalk case is

54 Division of Gaming Enforcement

Caesar’s Entertainment: Caesar’s The Regulatory Enforcement Bureau is Entertainment Operating Company – an responsible for certification of Internet affiliate of Caesar’s Entertainment Corp. gaming revenues, monitoring the financial – filed for Chapter 11 bankruptcy in stability of the patrons’ deposit funds and January 2015, and has continued in the investigation of patron complaints related to reorganization process since then. Disputes the Internet gaming sites. regarding transfer of valuable Caesars’ In 2015, the Bureau conducted 3,352 Entertainment Operating Company assets underage gambling/drinking investigations, to Caesar’s Entertainment Corp., allegedly 3,429 regulatory and information technology at below fair market value, are the primary investigations, 144 CHAB control issues to be resolved in order to achieve a investigations, responded to 217 casino consensual reorganization plan with senior patron inquiries, issued 268 underage lenders and note holders. A comprehensive gambling/drinking summonses and Examiner’s Report, detailing the results of conducted 219 revenue certification audits. the Examiner’s investigation of the asset transfers, estimated that damages could be asserted by creditors against Caesar’s Regulatory Entertainment for up to $5 billion. At this writing, Caesar’s Entertainment Prosecutions Bureau Operating Company remains in ongoing The Regulatory Prosecutions Bureau negotiations with its various creditor classes. (RPB), located in Atlantic City, oversees the operational aspects of the casino industry – including game operations, Casino Hotel Regulatory Alcoholic Beverage (CHAB) matters, data processing, new game approvals and, in Enforcement Bureau particular, the financial and/or accounting The Regulatory Enforcement Bureau activity of casino licenses. is located in Atlantic City. While some The Bureau works in conjunction with the investigative staff members work out of Division’s Regulatory Enforcement Bureau the Division’s Atlantic City headquarters, to accomplish these tasks. The Bureau also the majority are assigned to the eight is responsible for responding to petitions casinos where the Division also has offices. filed by casino licensees and outside The Bureau’s primary investigative entities seeking determinations related to responsibilities include such areas as: casino operations. This includes petitions regulatory compliance assessment and seeking approval for floor configuration enforcement; revenue certification; approvals alterations and CHAB approvals. With of casino petitions for operational changes regard to the Casino Control Act and its including new gaming equipment, new underlying regulations, the Regulatory games and revised floor plans; review Prosecutions Bureau is responsible for and approval of security and surveillance prosecuting violations. Violations of the submissions and approval of locations for Act and the regulations are pursued licensed Casino Hotel Alcoholic Beverage either by administrative complaint or by (CHAB) establishments. The Bureau also correspondence to licensees – known conducts security assessments of casino as “warning letters” – advising them of a properties and related infrastructure violation and requiring corrective action. with respect to homeland security and The Division also has initiated the use of preparedness. Such assessments are part a formal Notice of Violation, a process of the Bureau’s ongoing responsibilities whereby civil penalties are imposed for in the wake of September 11, and the regulatory violations with the consent of the resulting commitment by state government casino licensee. During 2015, the Bureau to intensify efforts to protect the gaming brought 12 administrative complaints to industry from acts of terror. conclusion, two of which alleged violations In calendar year 2013, Internet gaming of Internet gaming regulations. In total, went “live” in New Jersey. At this writing the administrative complaints resulted in there are five authorized permit holders operating 19 Internet gaming sites.

55 New Jersey Office of The Attorney General • Department of Law & Public Safety

more than $80,000 in civil penalties. Three administrative actions alleging regulatory Technical Services violations are currently pending. The Division also issued 130 warning letters in 2015. Bureau (Slot Lab) The letters addressed non-compliance flagged by the Division through individual Ensuring the Integrity of investigations. In addition, two Notices of Electronic Games and Systems Violation were issued. Through the Technical Services Bureau (TSB), the Division ensures the integrity of Exclusions, Forfeitures the electronic gaming equipment used in The Bureau continues to operate an Atlantic City casinos and on the Internet. aggressive program of exclusion to keep out In 2015, the casinos generated more than individuals who repeatedly disrupt casino $2.4 billion in revenue from “brick-and- operations or repeatedly, and negatively, mortar” and table game win. affect the quality of life of casino patrons Of that $2.4 billion, the bulk of it – about 72 and employees. In pursuing this effort, the percent – was generated by slot machines. Division is working with the municipal courts, The casinos also generated more than $148 agencies of Atlantic City government, the million from Internet gaming. Of that $148 Casino Reinvestment Development Authority, million, approximately 84 percent came from the Tourism District and, significantly, Internet-based slot machine games, while the the individual casinos. Collectively, this remaining amount was generated from peer- partnership is making a strong, sustained to-peer games such as poker. Combining effort to identify persons who repeatedly have both “brick-and-mortar” gaming revenue been engaged in disruptive or criminal acts on and Internet gaming revenue, the casinos or around the casino premises. These persons generated more than $2.5 billion in 2015. have been convicted in state Superior Court In order to ensure the integrity of the or in a municipal court, and they are persons electronic gaming equipment used in New who have multiple convictions for conduct Jersey, all hardware and software must be detrimental to casino operations and/or approved by the Division’s slot lab and then casino patrons. A listing of those persons who undergo an inspection on the casino floor have been excluded appears on the Division’s prior to use. website. Through the exclusion process, the Division achieves industry-wide exclusion of For the year ending 2015, the undesirables in Atlantic City, rather than the engineering staff of the Technical casino-by-casino ban that occurs through Services Bureau approved 1,437 product the court system. In 2015, the Division submissions and found regulatory issues excluded more than 50 persons by virtue of which resulted in rejection or vendor an Exclusion Petition and, subsequently, the withdrawal of 195 submissions. Of the issuance of a Final Exclusion Order. 1,437 product submissions that were approved, 478 of them were Internet-based The Division also obtained $98,000 in submissions. The remaining 959 approvals 2015 through forfeiture actions aimed at were for hardware/software to be used on individuals who won money in the casinos, the casino floor. but were prohibited from gaming because they were underage, subject to an Exclusion Unique Products Tested Order, or had previously signed up for the and Approved Division’s self-exclusion list. Roulette Wheels: Two companies sought permission in 2015 to allow a “patron dealer” option at the game of Roulette, in which patrons could press a button to commence the launch of the roulette ball. The Division made the necessary rule changes to allow the product without any compromise of the integrity of game results.

56 Division of Gaming Enforcement

Electronic Table Games: A new Roulette into operation on the casino floor within 14 electronic table game – made up of eight days. If the Division has not completed its individual player stations connected to a review of a New Jersey First gaming product roulette wheel – had the capability to be within 14 days of having received it – and configured with a camera positioned over it has not identified an issue that might the wheel in order to broadcast the outcome negatively impact on fairness or overall to additional player stations located in integrity – the Division issues a field trial other areas of the casino. Similarly, a new approval on or before the 14th day. Field blackjack electronic table game integrated trial approval allows the casinos to legally the traditional game of Blackjack with offer the New Jersey First product to the computer technology in order to produce public. In calendar year 2015, the Division a game with a “live” dealer. The individual reviewed and approved 27 New Jersey First player stations in the electronic table gaming submissions. In addition to the game allowed Blackjack patrons to view approvals, the Division identified regulatory the dealer’s live cards as they were dealt problems with six submissions. As a result, from the card shoe via a camera positioned those submissions were either rejected or above the dealer station. withdrawn from consideration voluntarily. Heads up Blackjack: An Internet-based Blackjack game allowed patrons to compete against each other in a heads up, Internet Gaming tournament-style event. The skill-based In February 2013, the State enacted game allowed two patrons to wager against legislation (A-2578 P.L. 2013. C27) a virtual dealer, and the patron who won authorizing Internet casino gaming. The the largest amount in five hands would be Technical Services Bureau tests Internet announced as the winner. gaming systems, as well as their associated Multi-State Wide Area Progressives: The games. Critical features of Internet systems TSB tested and approved slot machines in evaluated during the TSB testing phase 2015 that had the ability to communicate include responsible gaming, underage with other slot machines located in gambling, and detection of the patron’s jurisdictions outside of New Jersey in order physical location (also known as geo- to contribute to the same progressive location.). The TSB also evaluates fraud and jackpot. Testing of these machines included money laundering detection systems, and security controls, accounting controls works closely with the Division’s Regulatory and progressive reconciliation, as well as Enforcement Bureau to ensure proper tax revenue reporting to ensure appropriate and revenue reporting. controls existed in all areas. Investigations: The TSB’s Information Technology Investigations Unit (ITIU) conducts audits and investigations of casino licensees New Jersey First as well as Internet gaming platforms to In an effort to bring new and innovative ensure products approved by the TSB are gaming products to Atlantic City, the State performing as expected while in operation. enacted legislation designed to fast-track In addition, the ITIU will ensure adequate review and approval of gaming products controls are in place for casino systems to submitted for use in New Jersey before ensure their confidentiality and reliability, as any other jurisdiction. In keeping with the well as their integrity. legislation, the Division gives preference and In 2015, the ITIU conducted 326 audits priority to all gaming products submitted and investigations. for review here prior to, or simultaneous with, submission elsewhere. The goal of the approach is for any New Jersey First gaming submission to be tested and put

57 New Jersey Office of The Attorney General • Department of Law & Public Safety

Amaya, Inc.: On September 30, 2015, Service Industry the Division issued Amaya, Inc. and its subsidiaries a transactional waiver Licensing Bureau authorizing the company to enter into a Licensure of Casino Service Industry business relationship with Resorts Casino Enterprises: The Division’s Service Industry to offer the PokerStars and FullTilt online Licensing Bureau (SILB) is responsible for poker brands in New Jersey. The Division’s investigating those persons and enterprises decision in the Amaya matter was a case of who seek to provide goods and services to major importance – not just in Atlantic City the Atlantic City casinos. Through its legal but worldwide – as the outcome decided and investigative staff, the Bureau reviews whether PokerStars could “legally” return to hundreds of companies and individuals the United States after the U.S. Department annually to ensure that they satisfy the of Justice closed its business activities standards set forth in the Casino Control in April 2011. PokerStars subsequently Act. The Bureau’s primary mission is to entered into a settlement resolving all civil prevent organized crime and other unsuitable issues and most criminal charges against it, persons and entities from infiltrating the although criminal indictments against certain casino industry through ancillary businesses. individuals remained outstanding. Further, the Bureau is responsible for the licensing of entities involved with Internet The SILB conducted a comprehensive gambling, including gaming platform investigation of Amaya – memorialized in providers, game manufacturers, marketing a 120-page Special Report to the Attorney affiliates, geo-location and know your General –before issuing the transactional customer providers, as well as all other waiver enabling the company to enter into a non-gaming individuals and entities doing business relationship with Resorts to offer the business with casinos, including construction PokerStars and FullTilt online poker brands. companies, trash haulers and payment Bwin.party Entertainment NJ: Another processors. For the year 2015, the SILB major Internet gaming licensing conducted eight Casino Service Industry investigation conducted by SILB in 2015 Enterprise (CSIE) investigations looking involved the application of bwin.party at companies that are ancillary to the Entertainment NJ LLC and its affiliate Internet gaming industry, such as Know- company, bwin.party USA, Inc. The bwin Your-Customer providers and Internet entities form a large multi-national Internet marketing affiliates. These eight corporate gaming enterprise that operates an Internet investigations required the investigation gaming platform on behalf of Borgata Hotel, of 32 individuals. Major Internet ancillary Casino & Spa. Licensing of the bwin entities investigations included Aristotle, Inc., an was complex, and required SILB’s legal staff age and identity Know-Your-Customer to supervise creation of a divestiture trust provider, and Idology, Inc., another Know- located in Gibraltar. That occurred after two Your-Customer company. In addition to of bwin’s owners, who ordinarily would have investigating Internet gaming companies been qualifiers, decided they would rather and qualifiers, the SILB also completed nine sell their shares than file for qualification investigations of CSIE applications from in New Jersey. Under the rules of the land-based gaming companies. Investigating divestiture trust, they could not exercise the land-based companies involved a total control over their shares of the bwin entities of 96 individual qualifier investigations. while those shares were pending sale. These investigations included the licensing of The bwin investigation required several Margaritaville of Atlantic City, a themed chain investigative trips abroad by SILB staff, restaurant that also contains an area that hosts slot machines. The Margaritaville CSIE investigation encompassed a detailed review of 11 entities and 14 individuals.

58 Division of Gaming Enforcement as the bwin entities are headquartered in Information on the self-exclusion list is Gibraltar. Shortly after bwin was licensed protected from public disclosure, but is in 2015, but before the shares were sold, made known to the casinos. Upon notice, the Division discovered regulatory violations casino licensees must prohibit – to the extent against bwin and one of the owners subject possible – wagering by self-excluded persons, to divestiture trust. Administrative charges halt promotional mailings to such persons, were filed against both the company and the and withhold from these individuals credit individual, and fines totaling $40,000 were and complimentaries or “comps.” collected through Stiuplations of Settlement. As a disincentive to gambling by self- The shares were ultimately sold and the excluded persons, the statute contains a divestiture trust was closed. forfeiture component that allows the State Betfair Interactive US: In 2015, SILB to seize anything of value from a person on staff also handled the merger of the parent the self-exclusion list. In addition, the Division companies of two pending CSIE Internet can sanction casinos for failing to prevent gaming companies – Betfair Interactive self-excluded persons from gaming. US, LLC and Paddy Power North America, As of the end of 2015, a total of 3,619 Inc. Betfair had previously been issued persons were listed on Self-Exclusion lists a transactional waiver, and is currently associated with Internet and “property” operating the Internet gaming platform on gambling in New Jersey. Particularly behalf of Golden Nugget Atlantic City. Paddy noteworthy was that more than 2,000 Power had previously filed for CSIE licensure persons were signed up for self-exclusion (in 2013) and also had been preliminarily from Internet gambling only – an increase investigated and deemed eligible to petition of nearly 1,200 compared to 2014. The for a transactional waiver. At the time of the increase in self-exclusion by online players merger with Betfair, Paddy Power had not is consistent with the overall growth in entered into any contracts with any New popularity of Internet gaming. Jersey casino to provide Internet gaming. SILB conducted several meetings with representatives of both companies and supervised the review and amendment of the pending applications to reflect the changes in ownership and identity of any new qualifiers as a result of the merger. Gambling Self- Exclusion List Through its statutory authority to do so, the Division of Gaming Enforcement has created casino gaming Self-Exclusion Lists for problem gamblers and others who may choose to sign up as a means of prohibiting themselves from gambling in person and/ or on-line. Individuals can choose to exclude themselves for one year, five years or a lifetime, and can enroll by submitting an application in-person at various offices across the State. Those offices include DGE’s offices in Atlantic City or Trenton, and the offices of the New Jersey Racing Commission in Trenton, East Rutherford, Oceanport and Freehold. Persons who wish to exclude themselves from Internet gambling only can do so online.

59 New Jersey Office of The Attorney General • Department of Law & Public Safety

Juvenile Justice Commission Juvenile Justice Commission

The Juvenile Justice Commission was a national model for statewide detention established by statute in 1995 to lead reform reform by the Casey Foundation. As New of New Jersey’s juvenile justice system. The Jersey’s lead agency for JDAI implementation, JJC is the single agency of state government the JJC receives funding from the Foundation with centralized authority for planning, policy to support JDAI efforts, including the development and the provision of services in conducting of two-day working sessions with the juvenile justice system. delegations from other states interested in Its three primary responsibilities are: replicating New Jersey’s success. Delegations from various states have participated in New n the care, custody and rehabilitation of Jersey’s JDAI “Model Site” program, bringing juvenile offenders committed to the agency legislators, state supreme court justices and by the courts other high-level stakeholders to New Jersey n support of local efforts to provide services to learn about its system reform. to at-risk and court-involved youth A primary goal of JDAI is to make certain n supervision of young offenders on juvenile secure detention is used only to ensure that parole supervision serious and chronic juvenile offenders are Within the JJC’s mission is a responsibility detained, and that effective alternatives to maintain personal safety, promote are available for other young people who responsibility and build stronger communities. can be safely supervised in the community In order to achieve that goal, the agency has while awaiting final court disposition. The undertaken diverse measures to address initiative provides a framework of strategies the multi-faceted issue of juvenile justice. that help reduce the inappropriate use of The JJC emphasizes accountability and secure detention, while at the same time offers programs that afford young people maintaining public safety and ensuring an opportunity to become independent, court appearance rates. Through the efforts productive and law abiding citizens. In of the JJC in collaboration with the New 2015, the JJC served almost 20,000 youth, Jersey courts and other JDAI partners, reaching young people and their families in detention rates have declined significantly every area of the state. This included young while conditions of confinement for those people residing in the JJC’s secure care detained have improved. facilities, residential community homes, New Jersey was selected by the Casey serving terms of parole, and thousands Foundation to participate in its national JDAI reached through initiatives funded via the effort in 2004. With the addition of Salem JJC’s Office of Local Programs and Services. County in 2015, a total of 19 New Jersey For further information about the JJC visit counties (out of 21) are now participating in www.nj.gov/oag/jjc. JDAI including: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Mercer, Middlesex, JDAI Update Monmouth, Ocean, Passaic, Somerset, Overview Sussex, Union and Warren. In 2015, New Jersey’s success in the area Data Report of youth detention reform continued to bring On an annual basis, the JJC analyzes data the State significant recognition as a national from the previous year as it relates to the leader in the administration of juvenile justice. JDAI. Data analyzed in 2015 – collected Through its Juvenile Detention Alternatives from the prior year – details remarkable Initiative (JDAI), New Jersey continued to outcomes, demonstrating that the use of safely reduce its reliance on detention for alternatives to secure detention results in low-level juvenile offenders in 2015, and positive outcomes for youth, and a more continued to foster opportunities for positive efficient juvenile justice system. The data youth transformation. shows that, when comparing 2014 active While the Annie E. Casey Foundation’s JDAI site data with data from the year prior JDAI program operates in more than 300 local jurisdictions spanning 39 states, New Jersey is the only state to be designated as

61 New Jersey Office of The Attorney General • Department of Law & Public Safety

to JDAI implementation, the average daily juvenile detention population declined by 60 Annual Recidivism percent. On any given day in 2014, the data shows, there were nearly 500 fewer youth Analysis in secure detention, with youth of color Each year, the JJC conducts an analysis accounting for 89 percent of the decrease. of former residents who have been out of This annual figure translates into tens of the agency’s custody and care for three thousands of fewer youth removed from years. By tracking released juveniles over their homes and placed in secure detention time, the JJC can gather information on how since JDAI was implemented. many released residents end up having new involvement with the justice system and, In addition, juvenile arrests have continued ultimately, gauge rates of recidivism. to decline, and most young offenders given an alternative disposition through JDAI have The JJC recidivism report issued in 2015 completed that disposition without a new tracked juveniles released from the system delinquency charge. during the three-year period from 2009 through 2011. It found that recidivism rates “Deep End” Reform remained fairly stable contrasted with rates The Annie E. Casey Foundation has reported in the prior year. Nearly 85 percent expanded its reform efforts to include of released JJC residents had a new arrest, the “deep end” of juvenile justice – the while approximately 70 percent had a new dispositional or sentence-determining arrest that also resulted in a conviction. aspect – and has selected New Jersey A slight reduction was seen in the number to implement deep end reform on a pilot of young offenders released by JJC who basis. To assist with the effort, the Casey ended up being recommitted to JJC custody – Foundation has provided the JJC a $50,000 or to the custody of New Jersey’s adult prison grant. Camden County has volunteered system – for a new offense. For juveniles to serve as pilot county for New Jersey’s released in 2010, the percentage of those re- deep end reform, which aims to safely and incarcerated for a new offense was close to substantially reduce the post-dispositional 37 percent, compared with slightly more than confinement and out-of-home placement 32 percent in 2011. of young offenders. Other goals of the deep end reform effort include reducing racial and ethnic disparities in out-of-home placement, JJC Education improving youth outcomes, and increasing family and community involvement in juvenile Services/Graduation justice. As part of the pilot project, Camden The JJC provides a full academic program County stakeholders, staff from the JJC designed to afford each resident the and New Jersey’s Administrative Office of opportunity to earn a high school diploma the Courts (AOC), and representatives of and obtain other education and training the Casey Foundation have taken part in a that can launch a career. In the 2014-15 qualitative system assessment designed academic year, JJC’s Office of Education to gain an understanding of the juvenile provided services to 840 students. (Of justice landscape in Camden County. One those students, 46 percent required component of the assessment involves special education services.) In addition to analyzing data for all cases disposed of in academics, the Office of Education provides juvenile court in the Camden vicinage in career and technical programs of study that 2014. The assessment also involves such prepare students for high skill, high wage strategies as focus grouping, one-on-one and high demand occupations. For those meetings and large group discussions. students who have already earned their high Findings of the assessment are expected to school diplomas or high school equivalency inform and help direct the work plan for deep certificates, the JJC offers additional end reform in Camden County.

62 Juvenile Justice Commission opportunities. In 2015, approximately 140 students participated in college classes over JJC Supportive the course of the year through community colleges, a significant increase over the 55 Work Program students who participated in the prior year. Launched in 2014 and paid for through In addition, five JJC students took part in Social Services Block Grant funding, the JJC’s apprenticeship programs. Supportive Work Program continued to expand in 2015. The program offers JJC youth an In June 2015, 114 JJC students received opportunity to obtain real work experience their high school diplomas after successfully and, at the same time, learn about the completing graduation requirements set responsibilities that accompany employment. forth by the New Jersey Department of Education. During graduation ceremonies The Supportive Work Program enlists held at the New Jersey Training School in community partners to develop highly- Monroe Township on June 25, 2015, JJC structured work experiences for a Executive Director Kevin Brown presented population of youth who have historically diplomas to the 46 graduates who physically encountered barriers to employment. The took part in the ceremony. program provides young offenders with an opportunity to obtain employment skills, Those 46 graduates and 68 others who basic life skills, sound work habits and a completed their graduation requirements positive attitude within a work environment. received either diplomas from their home high JJC residents can spend up to 21 weeks in schools or a high school equivalency diploma. the program, and program activity involves Former tight an average of 20 hours per week. end Fred Baxter was keynote speaker for Participants work as part-time employees the graduation ceremony. Baxter played in and are entitled to all legal protection the NFL for a total of 12 years with the New afforded by state and federal employment York Jets, Chicago Bears and New England guidelines. The JJC reimburses participating Patriots. Among other achievements, he employers for the wages they pay enrollees was a member of the Patriots team that, in during the supportive work period. February 2004, won the NFL’s 38th Super Bowl game over the Carolina Panthers. The population targeted by the Supportive Baxter founded the Fred Baxter Foundation Work Program includes youth currently to support the academic and physical residing in JJC’s residential community development of disadvantaged youth and homes, as well as those under supervision of families through existing charities worldwide. the office of Juvenile Parole and Transitional The foundation targets educational programs Services. A total of 11 Memorandums of that support and empower adults, thereby Agreement (MOAs) have been executed increasing their ability to become self- with employers as part of the program, sufficient and improve their quality of life. providing 15 youth with employment, for a total of approximately 3,000 work hours in During the JJC graduation ceremony, such fields as landscaping, construction, eight graduates were recognized for food services, local store retail and national their improvement in the following areas: grocery chain retail. Mathematics, English, Social Studies, Science, Art, Career and Technical Education, World Language and High School Equivalency Score. Each recipient received a $25 credit to his or her resident account, and a certification of recognition awarded by the County Youth Services Administrator’s Association.

63 New Jersey Office of The Attorney General • Department of Law & Public Safety Family Engagement Prison Rape & Advocacy Initiative Elimination Act The goal of the JJC Family Advocacy and The Prison Rape Elimination Act (PREA) Engagement Initiative is to promote and was passed in 2003 with unanimous support family involvement and strengthen support from both parties in Congress. the role family members play in the agency’s Since that time, the JJC has implemented work. Most families of juvenile offenders a comprehensive PREA policy and has want to be a part of their loved ones’ lives, undertaken substantial training regarding and can be a positive influence on a young PREA, allowing the Governor’s Office to issue person’s rehabilitation. Empowering families certifications of New Jersey’s compliance with tools and resources allows them to with the Act. The JJC takes a zero-tolerance effectively advocate for and support their approach to sexual abuse and misconduct, children. To facilitate this effort the JJC which is reflected in its policies and contracted in 2015 with the Alliance of procedures. In the past two years, 10 JJC Family Support Organizations (Alliance). facilities were audited for compliance with In March 2015, the Family Engagement & PREA standards and all were found to be Advocacy Initiative was launched as a pilot fully compliant, thereby maintaining current program at JJC’s New Jersey Training School. federal funding levels. In 2015, JJC facilities As part of the effort, Alliance delivered audited for compliance – and found to be comprehensive family engagement training compliant – included: the Female Secure to more than 200 custody and civilian staff. Care and Intake Facility (Hayes), Juvenile The training is designed to enable JJC staff to Medium Security Facility (JMSF), Green, view families as a source of strength, and in Warren, Voorhees and D.O.V.E.S, Albert Elias, turn to work more effectively with families in Costello Prep and Pinelands Residential the delivery of services to JJC residents. Community Homes. In 2016, remaining JJC programs will be audited, completing the first Under the Initiative, a family advocate full, three-year cycle of PREA audit reviews. – provided by Alliance – attends all visits at the Training School and provides on- site consultation to family members. The advocate communicates directly with JJC social services staff and other appropriate agency personnel. At the program’s outset, Alliance was actively working with 40 Training School families on a regular basis. The on-going relationship between the family advocate and visiting family members garnered positive feedback from families and JJC staff alike, and many families reported an improvement in the overall quality of their visits. As of this writing, the Alliance is preparing a comprehensive assessment of JJC policy and practice regarding family engagement. By actively seeking feedback from families about their experiences, the JJC can determine whether JJC policies and procedures are family-friendly, and adjustments can be made as needed. Current plans call for an expansion of the Family Engagement & Advocacy Initiative into several JJC Residential Community Home locations in 2016.

64 Juvenile Justice Commission Juvenile Justice Launch of the Reform School/Justice In August 2015, new legislation was signed into law – legislation not effective Partnership until March 2016 – that will result in a The New Jersey Council on Juvenile variety of changes to New Jersey’s juvenile Justice Improvement established an justice system. Among the changes is that Education Subcommittee in 2015 that has a juvenile whose case has been waived placed significant focus on the relationship up to adult criminal court will serve all or between education and the juvenile justice part of any sentence that results in a JJC system. Through the subcommittee’s facility, rather than at an adult Department efforts, preliminary data has been collected of Corrections (DOC) facility. The new law to examine school-based referrals to the also addresses other key aspects of juvenile juvenile justice system. In the upcoming justice including requirements related to year, the data will be reviewed to identify the transfer of juveniles to the custody of system barriers faced by youth leaving the DOC, and criteria for the use of room secure detention (and other out-of-home restriction in state and county juvenile placements) and re-enrolling in local facilities. The criteria rules out using room schools. This process is designed to develop restriction as a punitive measure. and implement solutions to address any issues or barriers young offenders engaged The juvenile reform legislation resulted in reentry may confront. from a multi-faceted effort involving many agencies, as well as individuals from a To further this objective, the JJC – in variety of professional disciplines. Reform partnership with the Council on Juvenile measures built into the law correlate with Justice Improvement, the Juvenile Justice modern adolescent brain development and Delinquency Prevention Committee, research. The research shows that brain Advocates for Children and the state development in service of such brain Department of Education – held a related functions as judgment, problem-solving forum in 2015 attended by more than 350 and decision-making is not complete until individuals. The forum was entitled, “Avoiding individuals reach their mid-twenties. the School to Prison Pipeline: Systems Working Together to Enhance Educational At this writing, JJC rules, policies and Opportunities for At-Risk Students.” procedures are undergoing revision to reflect the new reform law. In preparation for the March 2016 effective date, training will be provided to JJC secure care staff and county detention center staff to reinforce changes to the room restriction usage criteria, as well as other reforms. Modifications and enhancements to JJC and county-level information systems are also anticipated, as is the development of an improved resident disciplinary system. The JJC continues to liaison with various advocacy groups to ensure the agency’s policies and practices meet or exceed national best practices.

65 New Jersey Office of The Attorney General • Department of Law & Public Safety

New Jersey Racing Commission New Jersey Racing Commission

The Racing Commission’s core mission is operated within Monmouth Park’s approved to govern, direct and regulate horse racing site location area, and represented the sixth and pari-mutuel wagering in New Jersey. The such facility in New Jersey. Commission conducts regular oversight of Existing legislation (N.J.S.A. 5:5-186) horse racing matters throughout the state authorizes wagering on horses through to ensure that racing is conducted in a fair, electronic wagering terminals located responsible and lawful manner, and to in a limited number of eligible taverns, ensure the safety of the sport’s participants. restaurants and similar venue. This law, To learn more about the Racing Commission known as the “Pilot Program,” limits the visit www.nj.gov/oag/racing. placement of electronic wagering terminals to no more than 12 locations in the northern part of the state – specifically Bergen, Overview/ Hudson, Essex, Passaic, Union, Morris, Somerset, Hunterdon, Warren, Sussex, Commission northern Middlesex and northern Ocean Structure counties. One application was received Horse racing in New Jersey is regulated for the Pilot Program from the New Jersey by Racing Commissioners who, by law, are Thoroughbred Horsemen’s Association appointed by the Governor with the advice and (NJTHA) that would open such a facility in consent of the Senate. Commissioners set Clifton, Passaic County. This application was policy and rule on all matters affecting racing, reviewed by the Racing Commission, and including the issuance of permits to conduct a license to operate was approved at the horse racing meets, approval of expenditures, Commission’s May 13, 2015 meeting. As of and adjudication of licensing matters. They December 31, 2015, the applicant has not also consider the issuance of licenses for implemented the Pilot Program, owing largely off-track wagering sites and are responsible to withdrawal from the program by a vendor for the oversight and regulation of account who was to supply the electronic wagering wagering, which includes telephone and terminals. At this writing, the NJTHA has Internet wagering in New Jersey. The following advised that it is in negotiations with another individuals served as Commissioners as of the vendor, and anticipates possibly beginning end of 2015: Anthony T. Abbatiello, Manny the program in 2016. Aponte, Dr. Michael Arnone, Pamela Clyne, Drug Testing Program: The Racing Peter J. Cofrancesco III, Anthony DePaola, Commission continued its comprehensive drug David Gruskos, Francis X. Keegan, Jr. and testing program throughout 2015. Truesdail Peter T. Roselle. Laboratory, LLC is under contract to conduct The Racing Commission employs such testing for the Commission. Truesdail is an staff to effect policy, including an accredited laboratory, and utilizes state-of-the- Executive Director who is responsible art equipment and methodologies to analyze for overseeing the day-to-day operations specimens. Instrumental testing is one such of the Commission in accordance with methodology applied to all specimens, and is accepted business and financial practices. capable of detecting a much broader array of Frank Zanzuccki serves as the Racing drugs at significantly lower levels. Commission’s Executive Director. In addition to its post-race testing program, New Jersey became one of the first states – in 2007 – to implement an 2015 Highlights/ out-of-competition testing program. The Commission collects specimens on non-race Key Issues days from horses located on grounds under Off-Track Wagering: In September 2015, the jurisdiction of the Commission, as well the Racing Commission approved an as from horses located in other states. This application for a new off-track wagering program is designed to detect the use of facility to be located in a former restaurant illegal drugs that can affect performance, but in Hillsborough Township, Somerset County. cannot be detected on race day. In 2015, The facility opened for business on October the Commission collected more than 128 23, 2015. The new site became the second specimens to be tested under this program. Off-Track Wagering facility owned and 67 New Jersey Office of The Attorney General • Department of Law & Public Safety

Exchange Wagering: On November 16, The incident began on March 1, 2014 2015, the Racing Commission voted to when an investigator for the Meadowlands grant an exchange wagering license to the Racetrack witnessed a horse trailer being New Jersey Sports & Exposition Authority. At pulled off into a secluded area at a New the same meeting, an exchange wagering Jersey Turnpike rest stop. The investigator management license was granted to Darby observed both Callahans entering the horse Development, LLC. Also, an exchange trailer while Hollingsworth stood by the wagering services agent license was tailgate, which was open at the bottom but granted to Betfair US LLC, subject to the closed at the top. terms and conditions contained in the Final The investigator witnessed Marvin Callahan Determination and Order. “Exchange” is a dispose of a white bag upon exiting the system operated by an exchange wagering trailer, and that bag was later found to licensee in which the exchange wagering contain syringes and hypodermic needles licensee maintains one or more markets with blood residue on them. Those items, in which residents of New Jersey may back along with specimens collected from the two or lay a selected outcome on horse races horses, were sent to a lab for analysis. The conducted within and outside of New Jersey. analysis determined that the drugs ACTH, “Exchange wagering” is a form of pari-mutuel Vitamin K, Flucort and Winstrol were injected wagering in which two or more persons into the race horses. place identically opposing wagers in a given market. Exchange Wagering regulations At a hearing conducted by the Board of became effective on April 20, 2015. Judges assigned to the Meadlowlands, the parties stipulated that they had been A.C. Race Course Closure: The Atlantic traveling to Meadowlands with race horses City Race Course permanently ceased “Twinscape” and “Dointimetogether,” as both all operations on January 16, 2015 at 4 were entered to race that day. In the trailer, p.m. By letter dated January 22, 2015, Marvin Callahan injected both horses with the Executive Director informed Atlantic foreign substances, including drugs referred City Racing Association (ACRA) that its to as Vitamin K, Glucor, and Estron. Alvin closure rendered the Racing Commission’s Callahan assisted Marvin Callahan, as did November 19, 2014 determination to issue Hollingsworth, who acted as a lookout. a thoroughbred racing permit for six race dates and a simulcasting license null, void The Board of Judges determined that Alvin and of no effect. ACRA continues to own and Callahan and Marvin Callahan had enaged operate the Favorites at Vineland off-track in conduct detrimental to racing as well as wagering facility. violation of medication rules and violation of trainer responsibility rules. They also were found to have engaged in 2015 Racing Related a conspiracy, and to have violated industry rules with regard to the possession of drugs Court Cases of Note or drug instruments. Hollingsworth was found Callahan, Callahn & Hollingsworth v. to have committed the same violations, with NJRC: Three horse racing industry licensees the exception of possessing drugs or drug were suspended and fined in 2015 as instruments. a result of their involvement in a 2014 The parties appealed the Board of Judges’ incident in which two horses were injected decision, and an Administrative Law Judge with medications while being transported to subsequently issued an initial decision a track where they were to race. Licensed upholding the suspensions and fines against trainer Alvin Callahan and licensed groom Alvin and Marvin Callahan. The ALJ also Marvin Callahan were both suspended for upheld Hollingsworth’s one-year suspension, five years and fined $5,000 as a result but reduced what had been an initial fine of of their stipulation of involvement in the $1,000 to $250. The Racing Commission incident. A third individual, licensed groom adopted the ALJ’s initial decision as its own John Hollingsworth, was suspended for a final agency decision on May 13, 2015. year and fined $250 for his role.

68 New Jersey Racing Commission

Abrams v. NJRC: Licensee Ronald B. Abrams was suspended for 75 days and fined New Jersey Equine $1,000 in 2015 as the result of his being found in possession of a loaded hypodermic Testing Program syringe containing the drug Banamine on the 2015 Equine Testing: The New Jersey grounds of . The Racing Commission’s Equine Drug Testing Board of Stewards at Monmouth conducted a Program is administered by Racing hearing and found that Abrams had engaged Commission staff. Samples are tested at in a number of violations including acts Truesdail Laboratories in California. In 2015, detrimental to racing and possession of drugs a total of 27,735 equine samples were or drug instruments. Originally, the Board tested through the program, with 33 samples of Stewards determined Abrams should showing positive for banned substances. A be suspended for three months. Abrams total of 340 human samples were tested appealed that decision and the matter was during the year, with 10 showing positive for transferred to the Office of Administrative banned substances. Law as a contested case. Subsequently, the Among the substances detected through the parties entered into a settlement whereby testing program were: dimethyl sulfoxide (7); Abrams would be suspended for 75 days. The methylprednisolone (5); phenylbutazone (4); $1,000 fine amount remained unchanged. dexamethasone (2); flunixin (2); furosemide At its September 15, 2015 meeting, the (2); o-Desmethylpyrilamine (2); hydroxyl Racing Commission approved the Abrams xylazine (2); atropine (1); clenbuterol (1); settlement agreement as the agency’s final dextrorphan (1); isoxsuprine (1); omeprazole administrative decision. sulfide (1); scopolamine (1); stanozolol (1). Adrian Wisher v. NJRC: Licensed Standardbred trainer Adrian Wisher was program trainer for the mare “Love You 2015 New Jersey Always,” which won the seventh race at the on Friday, Racetracks May 17, 2013. However, a post-race urine sample tested positive for the drug 130 Park Avenue Methylhexanamine, a substance banned Freehold, New Jersey 07728 by the U.S. Food and Drug Administration. 732-462-3800 Wisher then requested that a split sample www.freeholdraceway.com be analyzed, and Industrial Laboratories Freeholder Raceway is owned and operated confirmed the presence of the drug. Following by Pennwood Racing, Inc. Pennwood Racing, a hearing before the Board of Judges at Inc. is a company 50 percent owned by the Meadowlands, the Board suspended Greenwood Limited Jersey, Inc. and 50 Wisher for a year, fined him $1,000 and percent owned by Penn National GSFR, Inc. ordered loss of the May 17, 2013 race purse. Wisher appealed the determination, and Meadowlands Racetrack the matter was transferred to the Office of 50 State Route 120 Administrative Law as a contested case. An East Rutherford, New Jersey 07073 Administrative Law Judge (ALJ) subsequently 201-935-8500 upheld the Meadowlands’ Board of Judges www.thebigm.com action, finding that the penalties it imposed were “reasonable and appropriate.” At its July 15, 2015 meeting, the Racing Commission voted to accept the ALJ’s ruling and adopt it as the agency’s final administrative decision.

69 New Jersey Office of The Attorney General • Department of Law & Public Safety

Meadowlands is operated by NMRLLC Winners Bayonne Monmouth Park Racetrack 400 Route 440 North 175 Oceanport Avenue Bayonne, New Jersey 07002 Oceanport, New Jersey 07757 Winners Bayonne is a property owned 732-222-5100 by the New Jersey Sports and Exposition www.monmouthpark.com Authority and leased to New Meadowlands Monmouth Park Racetrack’s racing permit Racetrack LLC. is held by the New Jersey Thoroughbred Favorites at Gloucester Horsemen’s Association, and the track is 1300 Blackwood-Clementon Road operated by Darby Development. Clementon, New Jersey 08021 Atlantic City Race Course Favorites at Gloucester is a property in the (Ceased Operations in January 2015) Freehold Raceway site area. 4501 Black Horse Pike Mays Landing, New Jersey 08830 Favorites at Hillsborough 609-641-2190 150 Route 206 Hillsborough, New Jersey 08844 The Atlantic City Race Course is owned and operated by Greenwood ACRA, Inc. Favorites at Hillsborough is a property of the New Jersey Thoroughbred Horsemen’s Association in the Monmouth 2015 Off-Track Park Racetrack area. Wagering Facilities Favorites at Tom’s River Thoroughbred 1071 Highway 37 West Organizations Toms River, New Jersey 08755 The Thoroughbred Horsemen’s Association 732-240-1210 of New Jersey is a not-for-profit corporation Favorites at Toms River is a property owned that advocates for thoroughbred racing in by Freehold Raceway doing business as the state. It provides general administrative Freehold Raceway Off-Track, LLC services to its members, including a group Favorites at Vineland health benefits program. 1332 South Delsea Drive The Thoroughbred Breeders Association Vineland, New Jersey 08361 of New Jersey is an organization devoted 856-696-5290 to promoting and enhancing the breeding Favorites at Vineland is a property owned of New Jersey thoroughbreds. The Racing by Greenwood Racing, doing business as Commission administers the Breeders Award ACRA Turf Club, LLC. Program, which provides monetary incentives to owners and breeders by offering purse Favorites at Woodbridge enhancements for races involving New 3 Lafayette Road Jersey-bred horses. Fords, New Jersey 07095 Favorites at Woodbridge is a property owned by the New Jersey Sports and Exposition Authority and leased to the New Jersey Thoroughbred Horsemen’s Association.

70 New Jersey Racing Commission Standardbred Organizations The Standardbred Breeders and Owners Association of New Jersey is a not-for-profit organization dedicated to advancing the cause of standardbred racing in the state. It provides general administrative services to its members, including a group health benefits program. New Jersey Sires Stakes, an agency within the New Jersey Department of Agriculture, promotes the ownership and breeding of New Jersey standardbreds. Nearly $8 million in purse money is devoted to Sires Stake races, which are restricted to horses sired by stallions residing in New Jersey. The Sires Stakes program is funded by distributions from the pari-mutuel handle at harness tracks, and from nominating and sustaining payments by horse owners.

71 www.nj.gov/oag