Wednesday, October 10, 2018



RESPONSE TO TED SHERMAN'S ARTICLE "TWICE THE VICTIM"

On August 28, 2018 the Newark Star Ledger ran an article entitled "Twice the Victim" written about the New Jersey Crime Victim's Compensation Office (the "VCCO").  This is the first of three responding blog entries.
The article is a long overdue account of the disgrace and cruelty of the VCCO.  Unfortunately, it misses the real issue.  The VCCO is - and has been for ten years – failing to provide innocent victims of violent crime of the help they need.  The reasons have nothing to do with a shortage of money. The VCCO is funded by fines paid by those who break laws.  Every year millions of dollars flow into the agency from fines paid in New Jersey and to the federal government.  The VCCO has a computer system that is set up to “fail to capture” records of where the money is spent, so its an open invitation for corruption.

I was the head of the agency from December 2005 until July 2008.  The writer – Mr Sherman – referred to the time during which I was in charge, but he neither contacted me nor read my blog – edwerner@blogspot.com.
The bar graph near the end of the article illustrates the problem.  For the year 2007 the paid over Sixteen Million Dollars ($16,000,000) to New Jersey crime victims.  As soon as I was fired - in July 2008 - the agency slashed payments to victims.  In 2009 they paid less than Six Million Dollars ($6,000,000).  Last year it paid out only Eight Million Dollars ($8,000,000).  The agency is funded by a stream of funds from New Jersey and a federal government grant.  Since we know the money is not going to the victims where is it going? This may seam like a simple question, but the answer is never forthcoming.
For example, on May 19, 2008 I wrote a memo to my direct report at the time, James Ridolfino.  The memo explained in detail why an audit was essential.  There is a means of diverting funds through the system that leaves no trace – the catastrophic victims claims.  (See blog entry December 13, 2010 which has both my request to Mr. Ridolfino for an audit and his response).  As I was fired without notice shortly thereafter.   The need for this audit and the cover up by law enforcement is so obvious that there can be no explanation other than the system is hopelessly corrupt.  The Attorney General – the highest law enforcement officer in the state –  actively covered up embezzlement of funds set aside for the express purpose of providing essential help to innocent victims of violent crime.  
Given the dismal performance of the agency over the past ten years, a general audit is more glaringly necessary than ever.  Over the past ten years at least Twenty Million Dollars ($20,000,000) that should have been paid to crime victims is missing.  It is a matter not just of importance to crime victims, but of holding government accountable generally.  Why should any state agency be permitted to spend money without having to disclose where it was spent? 

This is an issue that illustrates several major problems.  In our system, the general rule is that a political group will establish itself by consistently delivering money, votes or some combination of the two to elected officials.  Once that group successfully works the system to get grant money, it’s common practice for that group to control how the grant money is spent.  There is a well organized  group ready to spend the money to its liking.  If anyone outside the group tries to take that money for his own purposes, the group will rise up to oppose him. 
Crime victims have no such organized lobby. In New Jersey they have nobody.  This makes the money allocated for their program attractive to the unscrupulous people who have influence in New Jersey state government.  
The May 19, 2008 memo explains in detail why an audit of the funds supposedly allocated for “catastrophic victims” is essential.  In spite of the fact that the agency was reassigned to the Office of the Attorney General – the highest law enforcement officer in the state – New jersey state government has failed to audit this agency.  
There is only one way for the New Jersey state government to establish a modicum of respectability. Audit the VCCO.  In particular – how much money has been spent for “catastrophic victims” and where has it gone?  Moreover, why was the internal computer system set up the “fail to capture” this information?
The article stated there is now an attempt by some members of the legislature to improve the agency.  Unless they begin with an audit, any such attempts will be futile.