Investigation of the Waterfront Commission of New York Harbor

Table of ContentsI. Executive Summary......................................................................................................... 1II. Background .................................................................................................................... 6History......................................................................................................................... 6Organizational Structure ............................................................................................. 6Authority and Powers of the Waterfront Commission ............................................... 7Policies and Procedures .............................................................................................. 8Prior Review of the Waterfront Commission ........................................................... 10III. Allegations and Methodology..................................................................................... 11The Waterfront Commission’s Initial Non-Compliance and Challenge to anInspector General’s Subpoena .................................................................................. 11IV. Investigation ............................................................................................................... 12A. Registration or Licensing of Longshoremen, Pier Guards, Hiring Agents, andSecurity Officers ........................................................................................................... 13Abuses by Jon Deutsch as Licensing Director.......................................................... 14Licensing-Related Abuses by Deutsch as General Counsel ..................................... 19B. Licensing of Stevedoring Companies ...................................................................... 22In Accommodating a Stevedoring Company Owner, the Commission Subverted theWaterfront Commission Act..................................................................................... 25Recent Changes to Licensing and Registration ........................................................ 28C. Audit and Control Division...................................................................................... 29Failure to Address Violations ................................................................................... 29Inadequate Supervision of Audit Staff...................................................................... 30Audit and Control Director Frank Nastasi Offered Private Tax Preparation Servicesduring Commission Working Hours......................................................................... 31Nastasi Accessed Pornography on His Waterfront Commission Computer............. 31Recent Changes Regarding Commission Audits ...................................................... 32D. Police Division......................................................................................................... 32The Police Division Lacked Adequate Written Policies and Procedures................. 33New Detectives Received Inadequate Training........................................................ 33Waterfront Commission Police Officers Were Not Accurately Listed on the NewYork State DCJS Registry ........................................................................................ 34The Police Division Had Inadequate Storage Facilities for Its Evidence................. 34Madonna’s Position as President of the New Jersey State Policemen’s BenevolentAssociation Represented a Conflict with his Role as Commissioner....................... 35Recent Changes to the Police Division..................................................................... 36E. Abuses of Authority ................................................................................................. 38Commissioner Madonna Influenced Hiring for the Benefit of Friends andAcquaintances........................................................................................................... 38Madonna Improperly Interfered with an Internal Investigation and RetaliatedAgainst a Whistleblower........................................................................................... 42Abuse of Parking Placards........................................................................................ 43General Counsel Deutsch Obtained the Position through Political Influence andMadonna Resisted Disciplining Him........................................................................ 44F. Abuse of Public Resources ....................................................................................... 46