Investigation of the Waterfront Commission of New York Harbor

Police Division. That testimony notwithstanding, Deutsch later admitted to knowing thebasic command structure of a police department.In early 2008, the Waterfront Commission conducted an internal investigation ofthis incident and found that Deutsch conveyed non-public information to Cernadas, Jr., inviolation of the Waterfront Commission’s Ethics Policy. As a result of this violation,Deutsch was suspended on March 5, 2008 and terminated on October 14, 2008.During the internal Waterfront Commission investigation regarding Deutsch’sdisclosure of non-public information to Cernadas, Jr., Lieutenant Politano and DetectiveBistacco made false statements to Acting Chief McGowan.When initially questioned, Politano falsely told McGowan that he had not spokento Deutsch about the Costa/Machado investigation. After Deutsch informed Politano thathe had already confessed to the conversation, Politano claimed to McGowan that he hadforgotten the conversation. Politano later admitted to internal Commission investigatorsthat he had lied to McGowan because he feared repercussions from Deutsch.Detective Bistacco, who conducted some of the inquiries surrounding thealtercation, contacted Deutsch to warn him of the internal investigation after beingquestioned by McGowan. Deutsch testified that Bistacco called him after speaking toMcGowan and told him, in substance, to “watch out” and that “this is De Maria’s doing.”Phone records corroborate that Bistacco phoned Deutsch shortly after his conversationwith McGowan about the incident. Bistacco lied under oath to Commissioninvestigators, denying that he had contacted anyone regarding the internal investigation.Politano and Bistacco were both suspended as a result of their false statements.Madonna refused to terminate Bistacco for the statements he made under oath. Instead,Bistacco’s duties have been restricted.B. LICENSING OF STEVEDORING COMPANIESThe Waterfront Commission’s Compact mandates that the agency licensestevedoring companies seeking to conduct business in the Port of New York. TheInspector General reviewed the files of all 53 stevedoring companies active in the portfor completeness and to assess compliance with the Waterfront Commission’s Compactand its written policies and procedures. The Inspector General interviewed formerLicensing Division Assistant Director Jeffrey Schoen, former Law Division Director JoyKelly, former Assistant Counsel Brian McCann, and the entire staff of the noweliminatedDivision of Audit and Control.Of the 53 stevedoring companies currently operating within the WaterfrontCommission’s jurisdiction, none holds a permanent license from the Commission. Forthe past 10 years, all of the companies have operated under temporary permits of varyingdurations. A temporary permit is supposed to be granted only under specialcircumstances: an ongoing investigation, or a request for additional supportingdocumentation. However, the Commission has been issuing only temporary permits for22