Christie

Christie

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By ANGELA DELLI SANTI

TRENTON, N.J. (AP) — The Republican candidate for governor in New Jersey will tell a congressional subcommittee about white-collar crime settlements he approved as a federal prosecutor, including a deal potentially worth $52 million to his one-time boss, former U.S. Attorney John Ashcroft.

Chris Christie is to testify before the House panel in Washington on Thursday, one of seven witnesses being called in an ongoing investigation into deferred prosecution agreements.

The deals allow companies accused of crimes to avoid trials by agreeing pay fines, change their practices and submit to federal oversight. Monitors are paid millions to oversee the deals.

The number of agreements ballooned during George W. Bush's presidency, but fell back last year following increased scrutiny about whether the deferrals provide a break to corporate wrongdoers.

Appearing before the House Judiciary Committee in May, U.S. Attorney General Eric Holder defended the use of deferrals in cases where taking a company to trial would unduly punish shareholders or employees. He said the deals are struck within Justice Department guidelines, and that he would investigate concerns over monitor selection and compensation.

As New Jersey's top federal prosecutor, Christie approved seven such deals, but put deferred prosecutions on the national radar with the one involving Ashcroft.
Ashcroft's consulting firm stood to make $28 million to $52 million or more for 18 months of work monitoring a hip and knee replacement manufacturer accused of giving kickbacks to doctors. The contract, paid by the accused, Zimmer Holdings Inc., allowed Ashcroft's firm to bill monthly fees and expenses of $1.5 million to $2.9 million or more, including a base of $750,000, according to documents provided to congressional investigators.

During a contentious Congressional hearing last year, Ashcroft denied there was anything improper about the deal. Christie also has denied any conflicts.
The day before the hearing, the Justice Department announced revised guidelines that require monitors to be chosen by a committee and approved by a senior official in Washington rather than by a U.S. attorney in the field.

Another Christie deal led to additional reform.
The department announced last year that out-of-court settlement defendants could not be required to donate to a random charity, school or hospital. The guideline was in response to a requirement from Christie's office that Bristol-Myers Squibb endow a chair in business ethics at Seton Hall Law School, Christie's alma mater, as part of a 2006 agreement to avoid prosecution.

Democrats have criticized deferred prosecutions for being secret and lacking accountability. Reps. Frank Pallone and Bill Pascrell of New Jersey and Steve Cohen of Tennessee introduced legislation in April that would require federal judges to approve monitoring contracts and disclose terms of the deals.

The issue has spilled into the New Jersey governor's race, where Christie leads Gov. Jon S. Corzine in early polls. Democrats have tried to use the agreements to tarnish Christie's reputation as a corruption-buster.


http://www.philly.com/philly/wires/ap/news/state/new_jersey/20090624_ap_christiesdeferredprosecutionsinnj.html

New Jersey GOP gubernatorial candidate Chris Christie approved seven deferred prosecution agreements while U.S. Attorney for New Jersey. Here is a synopsis of the deals, which critics have questioned and Christie will testify about Thursday in Washington:

, John Ashcroft. Christie's former U.S. Justice Department boss made $28 million to $52 million or more in 18 months for monitoring Zimmer Holdings, one of five medical device manufacturers accused of giving kickbacks to surgeons for using their replacement hips and knees.
, David Kelley. A former U.S. attorney in Manhattan, Kelley investigated a stock fraud case involving Christie's younger brother, Todd, but declined to prosecute him. Kelley was later picked to monitor Biomet Orthopedics Inc., another of the medical device makers.
, Bristol-Myers Squibb. A $300 million fraud settlement Christie negotiated with the New York company included a provision that Bristol-Myers endow a professorship at Seton Hall Law School, his alma mater. The U.S. Justice Department subsequently issued guidelines barring such requirements as part of out-of-court corporate crime settlements.
, David Samson. The former Republican attorney general and party fundraiser was a monitor of medical device maker Smith & Nephew Inc. His firm is now on Christie's payroll for legal work: the candidate's pre-election finance report last month listed expenditures of $9,439.40 in legal fees/rent and $18,439.40 still owed to Wolff & Samson of West Orange.
, Herbert Stern. Christie mentor got $10 million contract to monitor University of Medicine and Dentistry of New Jersey, accused of double-billing for services covered by Medicare. Christie close friend and fundraiser John Inglesino, a partner in Stern's law firm, was paid $325 per hour for his work as counsel on the monitorship. Stern, Inglesino, another partner and their wives later gave $23,800 in donations to Christie's campaign for governor. The donations were matched, 2-1, under New Jersey's campaign finance laws, bringing the total amount to $71,400.
, Debra Wong Yang. Like Kelley, Yang, a former U.S. attorney in Los Angeles, is a former Christie colleague. The Republican-connected prosecutor and Gibson, Dunn & Crutcher partner, who had ties to former Attorney General Alberto Gonzales, was chosen to monitor Deputy Orthopaedics Inc.
, John Carley. A former Cendant Corp. vice president and Federal Trade Commission lawyer under President Reagan, Carley was on Sen. John McCain's 2008 New York fundraising team. He oversaw a nonprosecution agreement involving Stryker Orthopedics.