NJ Governor gave $15k to Turnpike firee Rocco Riccio - brother-in-law of ex-girlfriend Carla Katz

New Jersey Governor Jon Corzine is confirming that he gave $15k to Rocco Riccio after his aides persuaded him to resign from a position he had just been given at the New Jersey Turnpike, the Newark Star-Ledger reports. Riccio is the brother-in-law of the Governor's former girlfriend and high state union official Carla Katz. Riccio met the governor through Katz.

Riccio, 44, and an accountant was on the New Jersey Turnpike payroll at an annual $75k for just two weeks in January - appointed to the Turnpike under influence from the Governor's office, then forced out by the Governor's top aides, he says.

In the Star-Ledger piece Riccio is quoted as saying he agreed to resign after he was summoned to the governor's offices to a meeting with the Governor's chief of staff Tom Shea, the governor's chief counsel Ken Zimmerman and deputy counsel Matthew Boxer.

Told my career in government was over

Shea told him his career in government was "over" because of persistent press questions about him.

Riccio says Corzine's chief of staff told him: "Well, this is what you're going to do: You're going to resign your (Turnpike) position, effective immediately."

He says resigned because of a promise "We'll look after you" and specifically because he was told that he would be helped to get a private sector job, specifically with Citicorp and he thought the governor could pull that.

"Fell on my sword for this guy" (Corzine)

"I was made promises to step down (from the Turnpike that) were never kept. I fell on the sword for the guy (Corzine)."

Shea, Corzine's top aide tells the Ledger he did not force Riccio to resign from the Turnpike: "He chose to resign - be clear about that... It was becoming an issue. We didn't think it was worth it for him to be engaged in this sort of (media scrutiny) when we thought we could get him a private-sector job. It turned out we couldn't."

Corzine acknowledged to a reporter from the Ledger Thursday that he gave Riccio $10k in the spring and that his business manager Nancy Dunlap gave him another $5k in the summer. Corzine also acknowledged that he and his aides had promised Riccio help in getting a private sector job.

"He helped me. I have the ability to help him."

The governor told the Ledger that he gave money to Riccio out of a "sense of human reponsibility" seeing that he was going broke and facing foreclosure on his home:

"The guy is on the edge of losing his house. I know it. And I feel like he helped me. And I have the ability to help him. This is a guy that's in desperate financial straits. And I said (to aides), 'Take care of it and see what we can do to help. And don't have him lose his house.'"

Corzine said it was simply a gift without strings - not even the condition of not blabbing to the press, apparently.

Corzine said the gift was nothing to do with Riccio's relationship with Carla Katz: "There may be a perception. But I (just) know a guy is about (to) go into bankruptcy."

Republican for Corzine

Riccio met then-US Senator Corzine after Riccio married Corzine's then-girlfriend Carla Katz' sister Genise Katz in 2003. Carla Katz arranged a family dinner at a restaurant in Medford to introduce Riccio to Corzine. Riccio was a Republican supporter and former volunteer campaign worker for various state GOP officials. He was won over politically by Corzine and became part of a small group known as Republicans for Corzine.

Riccio said he also worked for Corzine politically, thinking it might help him get more senior positions in the state civil service.

The Republicans for Corzine raised money for Corzine. Riccio says he helped the then senator with political intelligence, telling him the stories Republicans were planting against him. Riccio has had a variety of positions in the state civil service from 1994 in the treasury and department of human services.

Accused of accessing records of political opponents

Last fall Riccio was accused of using his access to tax and contractor records to find information about political enemies of the governor. He said he had legitimate work-related reasons for accessing the records.

After he was appointed to the Turnpike journalists badgered the governor's office and the Turnpike about how he was appointed and what his job was there, seeing him being appointed to a sinecure at the governor's behest.

Corzine has said that he personally did not push Riccio at the Turnpike, but that his office recommended Riccio by sending his resume over to the Turnpike.

Michael Lapolla the present executive director, like most recent chief executives of the Turnpike is a political appointee with no prior experience in the toll industry, or for that matter in any business. He has a background as a lawyer, local government Democrat politician, and county government manager. He was county manager in Union County before being appointed CEO of the Turnpike in 2002.

It can't be said, however, that Riccio was given an unusual salary. His shortlived Turnpike salary of $75k was hardly an increase on his Treasury pay of $73.6k.

Corzine wealthy and generous

Corzine who made hundreds of millions as chief executive of Goldman Sachs in the 1990s has a history of helping friends with gifts of money. The New York Times reported this year that he had given girlfiend Carla Katz $6m. He said he had given her less than that.

Katz is president of the Communications Workers of America Local 1034, the largest state civil service union. Corzine and Katz met during Corzine's run for the US Senate in 1999. Corzine divorced in 2003 and between then and about 2005 Katz appeared with Corzine at many social and political events. They were described as "dating."

They have both said since Corzine became governor that they have no ongoing social or financial relationship. Republicans are suing the state for copies of "non-personal" emails between Katz and Corzine during last winter's state labor negotiations.

The New York Times reports Sept 3 that Gov Corzinee's gift to Riccio has caused a serious rift between Carla Katz and her sister Genise. Katz, now estranged from the governor "raised a big fuss" about the $15k gift according to Riccio saying they were being "set up" by Corzine. 

Money, unions, sex, patronage, tolls, politics, foreclosure, broken promises, a law suit - what more could reporters want? This story has legs.

Patronage common

Patronage is a common affliction of many of the older public toll authorities.

The excuse that patrons give for patronage is always: "We just sent them (the Turnpike) his resume. They decided he was qualified and filled a need."

They don't need to send an email like: "The Governor needs to get this useless sod out of here. The governor's instruction is to find him a position and pay him well so he keeps his mouth shut."

When a resume comes from the governor's office the sender's address carries with the implicit order "Hire this one." Any followup telephone call to confirm the importance of the "referral" is deniable.

One reason for the sensitivity is that patronage  - in  the sense of appointing employees to all but top policy positions based on their political affiliation - has been held to be unconstitutional and hence illegal under federal law.

See Supreme Court of the United States, 497US62, Rutan vs Republican Party of Illinois, 1990

http://www.law.cornell.edu/supct/html/historics/USSC_CR_0497_0062_ZS.html

http://supct.law.cornell.edu/supct/html/88-1872.ZO.html

Patronage in the form of deploying staff for personal benefit may also constitute self-dealing or fraud. It is likely to be seen at a minimum as an abuse of power.

TOLLROADSnews 2007-09-02 ADDITIONS 2007-09-03