$4M uncollected by Buildings Department

Monday, October 29, 2007
By KEN THORBOURNE
JOURNAL STAFF WRITER

More than $4 million may have gone uncollected by the Jersey City Buildings Department over the past several years, according to a source familiar with an ongoing investigation by the Jersey City Police Department.

The uncollected money could be the result of computer glitches or employee oversight - or evidence of a crime, said the source, who spoke on condition of confidentiality. It's possible the money was collected but not deposited into the city's coffers, the source said.

There's so much missing money, and the existing records are so spotty, that an accounting firm hired by the city to conduct a forensic audit into the department is proposing to reconstruct the books from scratch dating back several years, the source said.

The investigation, which began in March, is being conducted by the police department's Special Investigations Unit.

So far, no city employee has been disciplined or referred for criminal prosecution in connection to the probe, city officials said.

The accounting firm hired by the city, Sax Macy Fromm & Co. of Clifton, has so far identified more than $1 million that should have been collected from various contractors, but apparently was never deposited into city accounts.

"We are awaiting those results and have the utmost confidence in the JCPD and the forensic accountant," Jersey City Mayor Jerramiah Healy said about the probe.

"And as soon as their investigation is completed and the results are in we will be more than happy to share those results with all interested parties, especially the residents of Jersey City," Healy added.

Police Chief Thomas Comey did not rule out administrative discipline or criminal prosecution.

"When all information is obtained and evaluated we will make the appropriate recommendation for either criminal or administrative action at that time," Comey said. "Any comment we make prior to that could impede the investigation and be inappropriate."