Investigation of the Waterfront Commission of New York Harbor

Police Division was lacking policies specific to its duties, including procedures forinvestigations and arrests, and conduct of detectives. Moreover, then-Executive DirectorDe Maria was unable or unwilling to address the Commission’s many failures or toconfront misconduct and abuse at the Commission, and Commissioners Axelrod andMadonna were often locked in a stalemate when issues of misconduct or discipline arose.In addition to these failures, the Inspector General identified numerous instancesof abuse by senior officials. Both former Commissioners Axelrod and Madonna abusedtheir positions to their own benefit and the benefit of others. The most egregiousinstances of misconduct were committed by former General Counsel Jon Deutsch. Mostsignificantly, Deutsch orchestrated a scheme to allow a company whose owner had beenconvicted of federal racketeering charges to continue to operate on the waterfront under ashell company nominally operated by the racketeer’s wife. Deutsch also used his officialposition to obtain favors for friends and acquaintances. The Inspector General also foundabuses by former Police Chief McGowan and former Audit and Control Director Nastasi,and that Comptroller Irving Wolf did not impose adequate fiscal controls at theCommission.A. REGISTRATION OR LICENSING OF LONGSHOREMEN, PIER GUARDS,HIRING AGENTS, AND SECURITY OFFICERSAccording to its Compact, the Waterfront Commission must license or register allindividuals who come in contact with waterborne freight. To assess the WaterfrontCommission’s compliance with its written policies and its Compact, the InspectorGeneral reviewed a random sample of 331 files – five percent of the 6,022 registered andlicensed deep sea longshoremen, A-type longshoremen, hiring agents, security officers,and pier superintendents. 10 Those who are registered, such as longshoremen, are held tothe standard that their presence on the piers or waterfront terminals must not “constitute adanger to the public peace or safety.” 11 Those who are licensed, such as port watchmen,hiring agents, and pier superintendents, are held to the higher standard of possessing“good character and integrity.” 12The Licensing Division also monitors the number of days worked by eachlongshoreman. Waterfront Commission regulations require that longshoremen work, ormake themselves available to work, at least 90 days out of every six months, and at least15 days in five of the six months. 13 Those individuals who do not meet this workrequirement are subject to “decasualization,” the revocation of their registration forfailure to work the required number of days.The Inspector General found that Waterfront Commission’s licensing andregistration of waterfront employees generally was in compliance with its mandate, but10 The 331 files were comprised of longshoremen, security officers, pier superintendents, hiring agents andtelecommunications officers. A random sample was selected by choosing every twentieth or eighteenthname on the list, depending on the registry.11 Waterfront Commission Act, Article VIII, §3(c).12 Waterfront Commission Act, Article X, §1(d); Article V, §3(a).13 Waterfront Commission Regulation 8.1.13