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The SCI concluded its public hearing with a statement by Chairman Patterson that summarized the three-day forum's highlights but emphasized the Commission's intention to propose reforms of the check casher regulatory system only after a review of the hearing record and exhibits. Patterson said that this record "leaves no doubt that organized crime has taken profitable advantage of New Jersey check cashers and that illegal and otherwise questionable transactions have become commonplace." His statement will be excerpted here as a recapitulation that should promote an understanding of the basis for the formal reform recommendations that follow:
CHAIRMAN PATTERSON: A recital at this point of merely a few of the revelations disclosed by witnesses confirms that the New Jersey check cashing industry's huge cash flow-it is a billion-dollar business conducted by only 80 or so licensed entrepreneurs-is being tapped at will by mobsters and other unscrupulous individuals, a number from New York, whose objectives include such notorious activities as money laundering, income tax evasion, embezzlement, loansharking, "bustouts" and other frauds.
For example:
- we have heard testimony about a factor facing bankruptcy because check cashers cashed phony business receivables amounting to over a million dollars that the factor purchased at a 10 per cent discount.
- We have heard witnesses describe how corporate checks cashed at check cashers were used to make kickbacks to a so-called WGA-the abbreviation for "wise guy association," wise guys being underworld jargon for organized crime operatives.
- We have heard witnesses describe how corporate checks were cashed at check cashers for the purpose-proven by the SCI's examination of books and records-of diverting "vigorish," the mob word for usurious interest, to underworld loansharks either in this state or across the Hudson River in New York.
We have heard an organized crime associate concede that he has operated for almost 20 years as an unlicensed check casher, all the while promoting schemes through friendly licensed check cashers that had all the elements of check kiting, money laundering and/or loansharking.
- We have identified through sworn testimony the operation of at least three Statelicensed check cashing outlets which are controlled by an individual with close ties to the Genovese organized crime family in New York.
- We have heard testimony linking New Jersey check cashing transactions to possible frauds by importing-exporting companies of a magnitude of a million dollars or more.
- We have heard New York mobsters talking-by means of tapes of their conversation
that were recorded during law enforcement surveillances-about utilizing New Jersey check cashers for certain fraudulent purposes and the need to enlist the assistance of a New Jersey check casher confederate.
- We have heard a witness concede that a known mob figure apparently tried to gain control of a check cashing entity by granting him a no-interest, no-pay-back loan and giving him office equipment with which to get started.
- Also, there was the case of the unlicensed check casher, a known organized crime associate, who exploited the State regulatory system as an employee of a licensed check casher.
These and other scenarios that were described under oath at this public forum belied a generally accepted view that the check cashing industry exists only to process the small transactions of people who need to cash government benefit checks or payroll checks but who don't use banks or other financial institutions. Instead, the testimony has confirmed the widespread use of licensed check
cashers' facilities by corporations and obviously cash-loaded individuals who want to avoid the more stringent-and more thoroughly enforced-regulations and laws that govern transactions at banks and other major financial institutions.
And almost all of the large transactions at check cashers spotlighted by public hearing testimony have been tainted by questions of impropriety at best and outright fraud at worst. Indeed, bad checks were accepted on such a repeated basis that some customers obtained easy loans amounting to hundreds of thousands of dollars, which could have been used to finance such mob activities as loansharking or kickbacks. And countless checks for more than $10,000 were processed without the submission of Currency Transaction Reports, or CTRs, which are required by law primarily to halt money laundering and income tax evasion. Further, countless corporate and other third-party checks have been cashed, an activity that has opened the door to embezzlement and other frauds.
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Drunken Jamie, Jersey City's Own Howard Stern Character
Bret Schundler's Big Win
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New Jersey Fact:
"New Jersey is a small state on the eastern seaboard halfway between Honest John Lindsay and the Liberty Bell. It is best known for its turnpike, Atlantic City, Imamu Baraka, Newark Airport and the Morro Castle disaster. Most of its leaders are in jail for stealing money...."
Over thirty years ago, this was how a New York Times writer described New Jersey. The only things that have changed are that now Bloomberg has Lindsay's old job and Amiri Baraka figured out somewhere along the line that it's not too swift for an atheist to use a religious title.
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For All Sorts of Unique New York City Information, Visit GET NY!
Brooklyn Politics: Due to the tireless efforts of Brooklyn District Attorney Charles "Joe" Hynes,
the people of New York City remain safe from that gang of marauding political reprobates – Sandra Roper, John O'Hara, and Judge John Phillips.
Hudson County, New Jersey is a place of many firsts - including genocide and slavery.
Political corruption is a tradition here.
First issue in a series by Anthony Olszewski – Click HERE to find out more.
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