Judge Peter Warshaw will rule whether to toss a 13-count indictment against George Norcross and five others who claim the document states no crime. (Photo by Hal Brown for New Jersey Monitor)
A Superior Court judge will rule on an initial motion to toss racketeering charges against Democratic power broker George Norcross and his allies, a case that was the focus of a seven-hour hearing in Trenton Wednesday.
Attorneys for Norcross and others accused in the 13-count indictment told Judge Peter Warshaw he must dismiss the case because prosecutors failed to show elements of a crime in the 111-page indictment lodged against the kingmaker and five others last June.
At root, the defendants argued prosecutors’ allegations of extortion, which they said formed the basis of the state’s case and underpinned other charges against what prosecutors called the “Norcross enterprise,” are in fact predicated on legally permissible threats made in the ordinary course of bargaining between sophisticated businesses.
“The bottom line is, from the state perspective, it’s really extortion or bust in this case,” said Norcross attorney Yaakov Roth, adding, “The New Jersey threat statutes don’t say it’s a crime to make these threats or even to make these threats knowingly. Instead, they use the word unlawfully. You can’t unlawfully make these threats.”
An unlawful threat might include a promise of violence, he said, but “hard bargaining” between businesses could not rise to that level.
Norcross and his co-defendants — attorneys Philip Norcross and Bill Tambussi, former Camden Mayor Dana Redd, former Michaels Organization CEO John O’Donnell, and NFI CEO Sidney Brown — also face charges of financial facilitation of criminal activity, official misconduct, and misconduct by a corporate official.
They are accused of strongarming Philadelphia-based developer Carl Dranoff into selling a view easement and other development rights in Camden so they could obtain, and then sell, millions of dollars in tax incentives from a state program Philip Norcross helped draft in 2013.
They are further accused of forcibly ousting Anthony Perno, then-CEO of the nonprofit Cooper’s Ferry, after demanding that he partner with Ira Lubert, a Pennsylvania real estate mogul with financial ties to George Norcross, over their preferred investors on redevelopment projects in Camden.
Prosecutors argued the defense understates the impact of threats from Norcross, saying his control over Camden government and targeting of Cooper’s Ferry and Dranoff business interests in which the alleged enterprise had no interest elevated the threats beyond bargaining.
“They essentially controlled the city of Camden. Whether the defendants exercised pure power or simply lots of influence, the point is the same: When you threaten other people that you’ll use that official power or influence against them if they don’t pay you off, it’s a crime,” said Assistant Attorney General Michael Grillo.
Defendants also argued the alleged actions detailed in the indictment are past the statute of limitations and must be dismissed out of hand.
“The crimes charged in this indictment are barred by the two statute of limitations at issue … the indictment against all of the defendants should be dismissed for that reason also,” said Gerald Krovatin, who represents O’Donnell.
The statute of limitations on charges included in the indictment range between five and seven years, and virtually all of the alleged misconduct had exceeded that time bar by the time Attorney General Matt Platkin announced the indictment last June.
Prosecutors argued the statute of limitations had not tolled because members of the alleged criminal enterprise continued to reap the rewards of their misconduct.
The Michaels Organization, NFI, and Conner Strong & Buckelew — where George Norcross was chair prior to being criminally charged — had received at least $29 million in tax credits under the now-defunct Grow NJ tax credit program when prosecutors unveiled their indictment.
“The Grand Jury properly charged defendants with participating in a RICO conspiracy whose objectives extended into the statute of limitations, most obviously by continuing to apply for and sell the tax credits that were the central goal,” said Grillo.
Prosecutors allege other benefits — like a CEO post at the Rowan University/Rutgers Camden Board of Governors awarded to Redd — were rewards from an illicit scheme that also extended the statute of limitations, though the defense contested the assertion.
“On the state’s theory, if you extort someone and acquire a pizzeria, essentially steal it from them, the statute of limitations runs forever as long as you sell pizza. That can’t be the case,” Krovatin said.
Warshaw did not say when he might rule on the motion to dismiss but set the case’s next return date for Feb. 27.
The motion to dismiss before the judge alleges only that the indictment does not state the elements of a crime and must be dismissed. If Warshaw rules the case can continue, defendants are expected to make another motion to dismiss on evidentiary grounds.