Investigation of the Waterfront Commission of New York Harbor

withdrew,” and that was a clue to me that I went and sawMcDermott's father, with my father, and said, “Your son lied on hisapplication,” and he -- he instructed his son -- and he said, “Well, youknow...” -- apologized, and I said, “He needs to withdraw hisapplication.” And he went to the Waterfront Commission andwithdrew his application.Axelrod stated that when he discovered the preferential treatment given toMcDermott, he spoke to Madonna and wanted Deutsch “severely written (up) andadmonished” for his involvement. According to Axelrod, Madonna would not agree todiscipline Deutsch. However, because of the incident, the Commission adopted a conflictpolicy. The policy, ironically written by Deutsch, establishes the General Counsel as thefinal arbiter of alleged violations.Deutsch Failed to Recuse Himself from an Investigation of Albert Cernadas, Sr.The Inspector General found that Deutsch improperly took a primary role in theinvestigation of Albert Cernadas, Sr., a union official and the father of Deutsch’s closefriend. Only after Cernadas, Sr. was indicted did Deutsch cease his role in theinvestigation.Prior to his employment at the Waterfront Commission, Deutsch served as aprosecutor in Union County, New Jersey, where he became friends with Albert Cernadas,Jr., who later became the First Assistant Prosecutor of Union County. Deutsch andCernadas, Jr. have known each other since approximately 1993 and have remainedfriends. Deutsch and Cernadas, Jr. meet regularly for lunch or dinner, and Deutschinvited Cernadas, Jr. to his daughter’s bat mitzvah. Both men sit on the board of CrimeStoppers of Union County.Beginning in 2000, when Deutsch headed the Commission’s Licensing Division,the United States Attorney’s Office, Eastern District of New York, and the WaterfrontCommission conducted a joint investigation into certain members of the InternationalLongshoremen’s Association, a 65,000-member union headquartered in New York. Atthe time, Albert Cernadas, Sr. was the executive vice-president of the union and was oneof the subjects of the investigation.In March 2000 and October 2003, under the authority of its Compact, theWaterfront Commission interviewed Cernadas, Sr. Despite his close personal ties toCernadas, Jr., Deutsch led both interviews. During the March 2000 interview, Deutschstated on the record “For simplistic purposes of the record, I will ask the questions.”Kevin McGowan, who participated in the October 2003 interview, stated that he knewDeutsch had worked with Cernadas, Jr., but Deutsch did not disclose the extent of theirrelationship. It was not until after Cernadas, Sr. was arrested that Deutsch recusedhimself from the Cernadas, Sr. case.When questioned by the Inspector General about his participation inthe joint investigation, Deutsch argued that a conflict of interest only aroseafter Cernadas, Sr. was indicted.17