George E. Norcross III, one of the most powerful political insiders in New Jersey, has been indicted for allegedly creating a criminal enterprise that used “threats and fear of economic and reputational harm” to obtain lucrative property rights along the Camden waterfront and influencing tailor-made legislation that came with bankable tax breaks for Norcross’ businesses and the non-profit Cooper University Health Care that he runs. The charges were announced by Attorney General Matt Platkin at a press conference this afternoon.
The 13-count indictment threatens to upend the political power structure in South Jersey, which Norcross has led for roughly 35 years, and will likely extend into next year’s gubernatorial and legislative primaries.
“The indictment unsealed today alleges that George Norcross has been running a criminal enterprise in this state for at least the last twelve years,” Platkin said. “On full display in this indictment is how a group of unelected, private businessmen used their power and influence to get government to aid their criminal enterprise and further its interests.”
Norcross’s attorney, Michael Critchley, dismissed the charges as a politically motivated hit driven by Platkin, whom he said has wanted to target Norcross for years.
“The charges are nothing more than a political vendetta packaged in an indictment,” Critchley told the New Jersey Globe. “[The indictment] regurgitates materials that have been investigated by multiple law enforcement agencies over the past six years, all of which resulted in non-prosecution… [Platkin] took all those allegations that had been rejected previously, and tried to package them in an indictment which is really a political vendetta.”
Also charged in the indictment are Norcross’s brother, Philip Norcross, who runs the politically potent Parker McCay law firm; Dana Redd, a former state senator and Camden mayor; and Norcross’ longtime attorney, Bill Tambussi. John J. O’Donnell, the president of The Michaels Organization, a real estate developer with ties to Norcross, and Sidney R. Brown, the CEO of NFI, a trucking company, and a business partner of Norcross associates, were indicted as well.
“The abandoned industrial sites along the Camden waterfront had the potential to serve as the city’s salvation,” Platkin said today. “But as the state alleges, the Norcross enterprise manipulated government programs and processes designed to attract development and investment to instead suit their own financial desires instead of contributing to the successes of the city of Camden. Through a series of criminal acts alleged in this case, the Norcross enterprise took the Camden waterfront all for themselves.”
The 111-page indictment lays out 13 specific charges against Norcross and his co-defendants, including racketeering, conspiracy to commit theft by extortion, financial facilitation of criminal activity, and official misconduct. Read the full indictment here.
Norcross himself attended Platkin’s press conference, sitting in the front row alongside Critchley and fellow defense attorney Kevin Marino. Norcross was asked to leave the front row prior to the beginning of the conference, but he declined to do so.
The indictment alleges that Norcross threatened a developer who owned property he needed to build the tallest building along the waterfront, Triad1828 Centre.
“When the developer would not relinquish his rights on terms preferred by (Norcross), he threatened the developer that he would, in substance and in part, ‘f**k you up like you’ve never been f**ked up before,’ and told the developer he would make sure the developer never did business in Camden again,” the indictment reads. “In a recorded phone call, (Norcross) later admitted to threatening the developer: ‘I said … ‘this is unacceptable. If you do this, it will have enormous consequences.’’”
The developer wound up selling the rights to $18 million worth of tax credits to an entity owned by persons connected to the Norcross enterprise. That allowed the enterprise to apply for additional tax credits worth more than $240 million.
Platkin said at his press conference today that the consequences of Norcross’s alleged misdeeds have been felt across the state, and especially by the people of Camden.
“This alleged conduct of the Norcross enterprise has caused great harm to individuals, businesses, nonprofits, the people of the state of New Jersey, and especially to the city of Camden and its residents,” Platkin said. “That stops today. With this indictment, the state of New Jersey intends to hold the Norcross enterprise accountable for the crimes alleged to have been committed by its members.”
Norcross has faced scrutiny for decades, but this is the first time criminal charges have been filed against him.
The task force convened by Gov. Phil Murphy to investigate tax incentives at the New Jersey Economic Development Authority awards found that the agency frequently handed out with the interests of the applicant companies in mind instead of the interests of New Jersey taxpayers. They found the tax incentives were often oversized and that the EDA employees were warned of for asking too many questions about companies’ applications.
The task force’s second report reveals new information about allegedly faulty applications that led to tax incentives worth millions of dollars to firms with ties to Norcross.
In testimony before a State Senate committee in 2019, Norcross criticized a task force investigating New Jersey’s tax incentive.
That year, the New York Times reported that Kevin Sheehan, an attorney at Parker McCay, where Philip Norcross, the kingmaker’s brother, is managing partner, had significant input on the bill, at times injecting verbatim passages that created carve-outs for specific businesses in Camden.
The task force later confirmed the report, releasing publicly draft versions of the bills that showed edits made by Sheehan, who ProPublica reported was in constant communication with Gov. Chris Christie’s administration during the drafting of the bill.
Norcross claimed the task force was singling out firms in Camden in its investigation.
Critchley told the New Jersey Globe that – as signaled by Norcross’s defiant presence at today’s press conference – his client intends to face the charges against him head-on.
“We’re not running away from this case, that’s for sure,” he said.
This story was updated at 5:07 p.m. with comment from Critchley.