Misleading Trenton Together

Misrepresentation and misstatement seem to be a family affair for Trenton Mayor Eric Jackson and his sister, Pamela Brooks. Their handling of Jackson’s Moving Trenton Together private foundation provides ongoing evidence that they have no idea about how to properly manage their affairs and have no problem trying to cover up by giving misinformation.

The foundation lost its tax-exempt status with the IRS for failing to file the required tax returns for three consecutive years. It has lost its New Jersey state business entity status for not filing the required annual reports for two consecutive years. MTT never registered with the state charitable organization directory. On top of all that, it appears as though MTT used Jackson’s title as mayor to get the “government” rate for renting the War Memorial for holiday concerts when they should have paid a higher, non-profit rate.  And then there is the possibility that individuals on the city of Trenton payroll may have been taking care of some MTT business while on the city’s clock.

Politicians often set up some sort of non-profit as a means to circumvent election campaign finance rules on who can give money, how much can be given (plus offering a tax deduction to donors) and what the money can be spent on. MTT was Formed in December of 2014 by Jackson, his wife, Denice, and his sister, Pam Brooks. In an article published that month, Times reporter Jenna Pizzi wrote, “The mayor said he wanted to form the group, rather than partner with the many nonprofits already registered in Trenton, because there are efforts he would like to move on that will compliment the activities of existing groups.”


While there is nothing overtly illegal or improper about setting up a non-profit like MTT, care should be taken to keep it separate from any official city business. No work should be performed for the corporation by city employees while on city time; no city resources expended in the execution of MTT work, etc.  (Just look at the recent scandal involving the Friends of Mercer County Parks non-profit and the Bannon brothers as an example of what can happen).

Corporations in New Jersey must file an annual report. At its most basic, it is a five-minute on-line exercise followed by a payment to the state. It keeps the business status active for a year. The state sends out notices of renewal to the registered agent of record three months prior to the due date. The website provides all current information and not only allows you to file the current report, but you can resolve any deficiencies in prior filing years. Failure to file for two consecutive years results in the state revoking the business’s status.


Moving Trenton Together never filed any annual reports and had its business registration revoked in July of 2016.

The registered agent for MTT is David Minchello. His name also appears on the application for IRS tax exempt status.  At the time of formation, Minchello was employed by the city of Trenton as it Law Director.  Did he prepare and submit the paperwork on city time or his own?  We really can’t say.

We do know this; Minchello used the address of his firm, Antonelli Minchello PC, in Union when registering MTT in December of 2014. In the spring of 2015, the partners closed their firm and joined the DeCotiis Fitzpatrick & Cole firm. Questions arose surrounding the fact that Minchello was the city law director and his new firm had a contract to work for the city as well. He left the city’s employ in the summer of 2015. 

When Minchello resigned as law director for the city, nobody thought to change the registered agent.  Renewal notices were likely sent to Minchello’s former address and not forwarded.  Had Jackson/MTT been an actual client of Minchello, would he not have taken care to see that the records were updated and/or a new agent listed? Or did Minchello feel this “duty” was no longer his responsibility because he was no longer a Jackson appointee/city employee?

Certainly, neither Jackson, his wife, nor his sister could be bothered to pay attention to the legal necessities of paperwork regarding their private foundation. It’s easily done, again, on line. But they couldn’t be bothered.  So the business registration has lapsed for failure to file.

Charities in New Jersey are supposed to register with the Division of ConsumerAffairs. There are exemptions for charities which receive less than $10,000 in annual gross receipts.  It is possible that MTT falls into the category, but we don’t know because they haven’t filed any tax returns (more on that in a minute). We do know that a search of the NJ Charitable Organization database turns up no filing for Moving Trenton Together. Doug Palmer’s Trenton First Initiative is there. So is the now defunct Tony Mack Cares Foundation. Even presumed Mayoral candidate Paul Perez’s “Partnerships for Trenton” non-profit has filed the required reports{Edited for clarity}. There is nothing from or about Jackson’s MTT.

The Trentonian reported in December of 2016 that MTT had yet to file any tax returns.  Indeed, in August, the IRS published the revocation of MTT’s   tax-exempt status for failing to file tax returns for three consecutive years. As a private foundation, MTT was required to file the 990-PF form. Yet they failed to do so for any of their first three years in existence…2014, 2015, or 2016.

Even after the published reports of December 2016, MTT failed to file their returns. As of May of this year the IRS deemed them delinquent and revoked the non-profits tax exempt status. Public notice was posted to the IRS website in August of this year.

The Trentonian reported the following from Jackson: “With the filing, you get an initial couple years to file it,” the first-term mayor said. “We had attempted to do it internally. There were some errors with it. It came back rejected and we didn’t get it back timely. Now, I have a certified public accountant (CPA) group that’s working on it as we speak to get it done so I can get my reinstatement. We’re curing that now.”Unfortunately, Jackson’s statement is incorrect. Organizations must file a tax return with the IRS each and every year. In fact, it says so very clearly in the IRS determination letter sent to Jackson’s home address advising him of MTT receiving tax exempt status:

“You’re required to file Form 990-PF, Return of Private Foundation or Section 4947 (a) (1) Trust Treated as Private Foundation, annually, whether or not you have income or activity during the year. If you don’t file a required return or notice for three consecutive years, your exempt status will be automatically revoked. “

There is nothing ambiguous about that statement. MTT was required to file. Period. There is no pass given for “an initial couple of years.” 

As for the statement that the returns were filed but had errors and came back rejected, we wanted to see if that was true. We submitted an FOIA request to the IRS for copies of any returns filed by MTT, erroneous or not. The response came back stating the 990s were "either unavailable, aren't open to public inspection under Section 6104 of the Internal Revenue Code, or destroyed (if it has been six years since the end of the processing year)".

We know that it hasn’t been six years since the end of the processing year because MTT was only founded in 2014 and thus ruled out that reason for no documents being available.

We checked Section 6104 of the Internal Revenue Code and determined that it wasn’t applicable to any returns filed by MTT.

That left open the possibility that there aren’t any records available because none were ever filed. To check on that, we called the IRS and spoke with a very nice fellow who answered a few questions with the adviso that he could only give general responses but that I could “read between the lines” to understand what he was saying.

First, we inquired if a tax-exempt organization is a Private Foundation but files the incorrect tax form three years running, would they have their status revoked. He answered in the affirmative.

Then we asked if, as in the case above, the wrong 990s had been filed would there still be records available. He answered in the affirmative.

Anticipating my next question regarding MTT specifically, he answered "At this time, there are no records available."

We take this to mean that there are no records of any 990s filed by MTT because none were filed.

This directly contradicts Jackson’s statement that they filed but the form had errors and was returned to him. That simply does not appear to be the case at all. (As of the date of publication, MTT's tax exempt status is still listed as revoked for failure to file on the IRS website).

In the off chance we are drawing an incorrect conclusion, all Mayor Jackson must do is produce copies of the forms that he says were filed in error and returned. And if they have really engaged a CPA who is “working on curing that now”, show proof.  It’s that simple.  

With no tax returns available that report income and expenditures for the non-profit, we decided to look more closely into the shows MTT put on at the Patriots Theater in December 2014, 2015, and 2016. We submitted an Open Public Records Act request for the contracts and correspondence related to the three events.

We found out that MTT paid the “government” rate of $1500 for renting the theater, a 50% savings over the published rate of $3000 for not-for-profit groups. Interestingly, on the War Memorial’s own website there is no“government” rate but rather a “State Agency” rate available “only to state agency clients conducting government business.” We find it hard to see how MTT meets the definition that would qualify them for the discounted rental rate.

First, MTT by design is supposed to be an entity separate and distinct from the city of Trenton. It is therefore NOT an agency of municipal, county or state government. Secondly, per its incorporation documents, MTT was created for the business purpose of [presenting] “cultural events”. Hardly government business.

We raised the question of the rental rates to individuals at the state and were told,

“As previously communicated, the City of Trenton was represented as the Lessee for these events, so in keeping with past practice, the government rate was charged accordingly.”“The payment arrangements that are made between the Lessee, a sponsor, or a 3^rd party does not impact the rental rate.”“Also, the identification of a concert for the Citizens of Trenton at no charge was deemed a municipal event.”

Indeed, on the three rental applications for the Patriots Theater, the listed organization/Presenter/Renter is listed as “Mayor Eric Jackson.” Was this done to subtly suggest that it was the City of Trenton renting the hall and thus qualify for the lower rental rate?

On the application for 2014, the check box for the renter’s non-profit status was not checked. On the 2015 and 2016 applications, the “Non-profit” box is checked, but not the government one. The War Memorial staff didn’t seem to pick up on the fact that it was not a government agency holding a government business event at the theater.

All the contact information regarding the rentals was directed to Ms. Brooks…we presume at either her or Jackson's home address and personal email (she’s not on the city payroll so there shouldn’t be a city email address for her). From the initial email correspondence in September of 2014 (before the non-profit was officially formed) Ms. Brooks identifies herself as working “on behalf of Trenton Mayor Eric Jackson” and often refers to the Mayor’s concert giving the impression it was a city event.

The security deposit for the December 2014 concert was a “starter” check such as one gets when one first opens a checking account. It was handwritten with the Payer Name and address listed as “Eric E. Jackson, Mayor” and the mayor’s home address and signed by Gilbert K. Bell. Mr. Bell is (or was at the time – we don’t know if there’s been any changes since Jackson hasn’t filed any campaign reports in three years) the treasurer of the Mr. Jackson’s Election Campaign. A second check bore the handwritten Payer name and address of Moving Trenton Together, and was signed by Jackson himself. In either event, this was NOT a city event and we maintain it should not have qualified for the lower rental rate.

And there’s another question here…the security deposit check signed by Mr. Bell in October 22 of 2014 bears the handwritten number “008”.  The second check, signed by Jackson, was dated December 18, 2014 and hand numbered 0002. It is possible that Jackson was originally going to pay for this from his campaign treasury and then decided to form the non-profit to cover the expenses. Probably because of the fewer restrictions on the donations to and expenditures from a non-profit compared to an election campaign account.

The 2015 and 2016 concerts saw checks written on fully printed checks with the Payer name and address of Moving Trenton Together at the Melrose Ave address. The 2015 checks were drawn on an account at Wells Fargo (same as the 2014 checks) but signed by Jackson himself. The 2016 checks were drawn on an account at Investors Bank and signed by Ms. Brooks.

Despite lots of evidence to the contrary, the state seemed to accept that Mayor Eric Jackson’s name on the contracts somehow made this a city (government) activity. Ms. Brooks never appears to offer up the information that this was not an official city sponsored event. Was it deliberate? You decide.

In another email thread received via the same OPRA request we find that at the beginning of 2017, MTT still owed the state money for the 2014 and 2015 rentals. Starting on February 10 of this year, the CFO of the Department of State reported to Ms. Brooks that MTT still owed the state a little over $3200 dollars. It took nearly a month to resolve the problem. The balances were paid by credit card. The outstanding $1000 balance from the 2014 show stemmed from Brooks claiming she thought the security deposit check had been cashed to cover the balance and only found out it had been returned after going through the mayor’s records.

Ms. Brooks should have paid closer attention. On the second page of the standard lease agreement with the War Memorial, it is explained in paragraph 3 (Payment of Fees) that:

A security damage/cleaning deposit of $1000.00 shall also be paid no less than 14 days prior to the event. (Please make this a separate check). The building security deposit of $1000 will be held by the Lessor until after the Event and consequent inspection of the facility. After a satisfactory inspection of the facility, and the after the Lessee has satisfied any and all financial and other obligations under the contract, the building security deposit will be returned to the Lessee.

Yet again, neither Jackson or Brooks seem capable of reading, comprehending and/or following simple directions. The check was returned and not applied to the balance due, just as is spelled out in the rental documents.

Jackson and Brooks and company repeatedly fail to do the right thing in a timely manner. The explanations offered when questioned about their ineptitude are always weak and don’t appear to stand up to scrutiny. Jackson’s method of operating is sloppy at best and may border on the unethical. 

Trentonians, think about this if he decides to seek a second term.

Here's your timeline.

This morning, Trenton Mayor Tony Mack had a press release posted on the city website villifying those "rogue coalition" of members of city council who voted "No Confidence" in his leadership and want to cut his salary by 52%.

Over the course of three pages, the paranoid, delusional and obviously stressed out man that Kevin Moriarty has dubbed the "Current Occupant" (CO for short) of the mayor's office lays out a timeline of  quotes and actions of members of council that he is upset with.

"Their efforts to denigrate the Office of Mayor will not succeed. Our roots of commitment remain firmly planted and we are more than prepared to deal with the winds of political theater," stated Mayor Tony F. Mack.

 

Obviously, the CO (and/or his writer) have no more talent for written communication than he does for leading a city.

 

While he fumes and mumbles and mutters to himself about those plotting against him, let us take a look (yet again) at a timeline of the CO's focus "on moving the City of Trenton forward".

 

• July, 2010 -- The CO dismisses all of the department directors of the previous administration, thus losing the institutional knowledge and experience required to keep the city moving along. He also nominates a convicted felon to his director of Housing and Economic Development. He also hires a man with a criminal past to be the director of the municipal courts and appoints as head municipal judge a woman with financial problems, a history of writing bad checks, and who refused to submit to the required background check. A an experienced and knowledgable volunteer Business Administrator quits before the month is out because the CO "doesn't believe in good government."
• July-August 2010 -- Even though it is a known fact that the city is facing a huge budget deficit, the CO hires a full compliment of mayoral aides and puts other friends and allies on the payroll at places like the Trenton Water Works. Speaking of the TWW, the CO also saw to it that his half-brother was put in charge of the on call scheduling at the utility.
• September 2010 -- The CO cuts the appropriation to the the Trenton Free Public Library but demands they maintain full hours at the main building and four branches. He later blames the decision to close the branches on the TFPL board and not his lack of funding.
• October 2010 -- Heavy rains raise the turbidty and level of the Delaware river forcing the TWW filtration plant to go offline. Because of inadequate supervision by experienced personnel the switching from pump to reservoire and back results in several days of boil water advisories for the utility's customers. For the first two days, the communication from the city regarding the situation is infrequent and no clearer than the brown water coming from the taps.
• November 2010--At a press conference, the CO announces that he "saved public safety" by NOT laying off any police personnel. The fact that he didn't reduce the force at that time most likely figured into the city losing a federal COPS grant early the following year, putting those "saved" jobs at risk.  The chief municipal judge the CO appointed was told to resign by the presiding judge of the Mercer vicinage because of the ethical questions surrounding the appointment.
• December 2010 -- The CO's half-brother and accomplices were arrested for doing side jobs on TWW time using TWW materials and pocketing the payments for the work done.
• January-February 2011 --- A controversy arose over a contract given to the Cooper Levenson law firm to do work for the city because of a sizable campaign contribution made to the mayor. The contributions were passed through a political action committee to the CO's campaign in violation of the city's pay-to-play ordinance. At about the same time it was discovered that a Pennsylvania developer had made an excessive contribution to the CO's campaign and was in-line to receive some three dozne city properties for $1 each. Unfortunatley, most of those properties were NOT located in redevelopment areas and could only be sold via public auction.
• March 2011 --- A superior court judge strikes down a controversial contract issued to an IT consulting company citing the mayoral aide who made the decision on the vendor as "unqualified" to do so.
• April 2011 --- Paul Sigmund, hired in March as the city's Chief of Staff (Deputy Mayor), is caught speeding in a city vehicle. Sigmund's driving privilege had been suspended in California where he lived prior to taking the Trenton job and had not been reinstated at the time of the traffic stop. The Mack administration was made aware of the suspended driving privileges but issued a city vehicle to Sigmund none the less.
• May 2011 --- Chief of Staff Paul Sigmund was arrested after making a heroin purchase just blocks from city hall. The CO refused to dismiss Sigmund immediately, waiting instead for the Chief of Staff to resign. It was also revealed that there were payroll irregularities with some of the park rangers hired by the CO, including payment for time not worked, payment before the state approved the hires, handwritten time cards, etc.  In addition, it came to light that director of Public Property Harold Hall, a salaried, appointed position, was receiving overtime and paid comp time that he wasn't legally entitled to.
• June 2011 --- Against long odds and a very high standard for participation, a recall effort against the CO was launched by five citizens who had already had enough of the CO's foibles. Law Director Marc McKithen resigns rather than cooperate with the CO's administration in its attempts to avoid responding to Open Public Records requests.
• August 2011 --- A superior court judge finds that the Mack administration did not comply with the law regarding OPRA requests filed by two civic activists.
• September 2011 --- The CO proceeds with massive layoffs of city employees, including over 100 police officers. His friends and supporters who were hired last and should have gone first were left on the payroll (with the exception of one of his aides).  By the end of the month, the Mack administration is on its fourth Police Director in 14 months, its seventh (or was it eighth?) Business Administrator, its fourth Housing and Economic Development director. Two of his allies, Harold Hall and Carmen Melendez were elevated to acting director status over the objections of the NJ Department of Community Affairs. Reports surfaced of Ms. Melendez having been paid for unearned sick and holiday time and a very troubled business history that included having lost her realtor's license at one point, defaulted loans and unpaid taxes on her properties.
• October 2011 --- Former Recreation division employee Maria Richardson files a complaint alleging she was wrongfully dismissed because she wouldn't go along with the CO's improper procedures for purchasing, etc. Information surfaces about the "splintering" of contracts in order to circumvent the state public bidding laws. The CO jeopardizes a part of the state financial aid to the city by at first not agreeing to some of the terms of the MOU. He later agrees to modified terms but gives up recruitment and hiring authority to the state.
• November 2011 --- The recall committee gathers some 8,500 signatures on petitions to recall the CO. While that was short of the 9,000 or so that was needed, it was more than voted for Tony Mack in the runoff election of June 2010.
• December 2011 --- It is revealed that the CO refuses to entertain an offer to from a non-profit to lease, renovate and reopen one of the closed and vacant library branches as a community center with a small learning resource component.
• January 2012 --- The Mack administration attempts to get the city council to pass a salary increase for the Mayor and Department Director positions. The CO announces grand plans for a "Commission" on international business affairs that is immediately downgraded to "committee" status and does nothing except hold a reception. He also announces a "Comprehensive Crime Initiative" that is neither comprehensive or much of an initiative. It is a document listing some vague ideas of ways to increase the city's crime fighting tactics, none of which were ever implemented.
• February 2012 --- The city council takes a scalpel to the CO's proposed budget, including reducing the salary line for all of the remaining mayoral aides. The CO's request for increased state aide is denied because of a lack of fiscally sound management. An impasse between the administration and council over the approval of a "stale" contract for paper supplies leaves city buildings without paper towels and toilet paper. The story makes international news. A second complaint alleging violation of the state Open Public Records Act is filed against the Mack administration. A group of citizens drafts an ordinance that would reduce the salary for the office of mayor and asks the city council to introduce it. It stalls after the first reading.
• March 2012 --- The CO incorrectly accuses the council of overstepping their legal bounds by cutting the salary budget for his staff. He alleges this will jeopardize the safety and security of the citizens. He was wrong on both counts. In his state of the city address, he announces plans to start reopening the closed library branches as "Learning Centers".
• April 2012 --- The first of the four Learning Centers is opened. The CO gives varying cost estimates for what it will take to operate these centers.  He also inappropriately spent general maintenance funds to repair and equip these buildings.  A boxing/martial arts program running out of a city owned building and funded by a county grant of state money is shut down based on allegations of "drug use." This results in the discovery that the entire TMAC grant was not being properly administered per the terms of the contract with Mercer County. The County takes back some of the control of the grant funds.
• May 2012 --- The CO continues to open his "Learning Centers." Two state legislators introduce a bill that would make recalling an elected official somewhat less difficult. (They must be part of a "rogue coalition" as well.)
• June 2012 --- The CO insists on spending approximately $75,000 on the poorly promoted and sparsely attended Heritage Days Festival. Some of the fees included paying people to "organize" the event, paying a city employee to perform at the event (against state law), and paying a sound and light company in full in advance for this festival and a later music festival that was ultimately cancelled and (at last check no refund had been received.)
• July 2012 --- The CO runs through a toll booth in Delaware while driving his city issued vehicle on a weekend. It is presumed he is using it for personal business since his son was playing in a baseball tournament in Delaware that weekend yet the city paid the delinquent toll and service charge. The FBI stages early morning raids of the CO's home and the residence of his brother Ralphiel, and campaign contributor/supporter JoJo Giorgianni. The next day, the FBI swarms city hall and removes files, computers, etc.
• August 2012 --- More information starts to surface about the investigation into the Tony Mack administration. All of the rumors of questionable business dealings and improper procedures start to make sense.
• September 2012 --- The CO is arrested, along with his brother and Mr. Giorgianni are arrested by the FBI on a criminal complaint alleging a conspiracy to use the CO's public office for personal gain. Mr. Giorgianni is also arrested on a complaint of running a drug distribution ring that has no relation to the activities of the CO.
• October 2012 --- a newly organized group called "Majority for a Better Trenton" drafted a resolution of "No Confidence" and asking the CO to resign and asked the city council to place it on the docket. Council approved the citizen initiated measure 4 - 3.  At the same time, the council introduced its own ordinance reducing the salary for the office of Mayor. It passed the first reading, 5 -2.  The CO told the council and the people gathered in chambers that reducing his salary was illegal and violated the MOU with the state of NJ. Neither was true. At the very end of the month, the city was hit by hurricane Sandy leaving many residents without power and such for two or three days. The CO stayed home, never venturing out to meet with the emergency management team, tour the city, etc.
• November 2012 --- The CO was absent from city hall while the BA and other directors gave reports to council about the implementation of the city's emergency plan. The CO knew the salary ordinance was up for second reading and was not present to defend against it. Four of the six individuals who spoke publicly about the ordinance before the vote were in favor reducing the salary. The ordinance passed on the second reading, 4 - 3. It is not veto proof, so the CO vetoed it and then posted the screed referenced above.

So, Mayor Mack, after reading through the timeline above, just who is engaging in "political theater?"