Webber's clone lost in LD26, spin won't change that.

There has been a big effort to re-write the history of what just happened in the Republican primary in Legislative District 26.  The origins of the battle just concluded there go back a few years, to when Daryn Iwicki was running Americans for Prosperity (AFP) in New Jersey. 

Then, things were well on the way to securing AFP's support for increasing the users tax on gasoline in order to end the disastrous cycle of debt and borrowing to fund basic repair and maintenance for the state's transportation system.  After 28 years without an adjustment for inflation -- and 25 years since the revenue from the gas tax produced enough to fund the state's transportation needs -- by 2015, the state was collecting just $750 million from the gas tax while incurring an annual debt cost of $1.1 billion.  Something had to be done.

Senator Steve Oroho (LD24) and others had the idea of getting rid of the estate tax as part of a deal to address the imminent bankruptcy of the state's Transportation Trust Fund (TTF), which funds most of the state's transportation needs.   One of those others was Assemblyman Jay Webber (LD26), who famously advocated such a deal in an opinion piece published in the Star-Ledger on October 14, 2014.  Its title was "Fixing transportation and taxes together." 

Assemblyman Webber advocated raising the gas tax to end the debt cycle and fund the TTF, while offsetting that tax increase with cuts to other taxes.  He zeroed in on the estate tax:

"NEW JERSEY leaders are grappling with three major problems: First, New Jersey has the worst tax burden in the nation. Two, New Jersey's economy suffers from sluggish growth. And third, our state's Transportation Trust Fund is out of money. There is a potential principled compromise that can help solve all of them.

Of the three problems, the Transportation Trust Fund has been getting the most attention lately, and for good reason: It's broke. There is just no money in it to maintain and improve our vital infrastructure. Without finding a solution, we risk watching our roads and bridges grow unsafe and unusable and hinder movement of people and goods throughout the state. That, of course, will exacerbate our state's slow economic growth.

...we should insist that if any tax is raised to restore the TTF, it be coupled with the elimination of a tax that is one of our state's biggest obstacles to economic growth: the death tax. By any measure, New Jersey is the most extreme outlier on the death tax, with worst-in-the-nation status...

New Jersey's death tax is not a concern for the wealthy alone, as many misperceive. We are one of only two states with both an estate and inheritance tax. New Jersey's estate-tax threshold of $675,000, combined with a tax rate as high as 16 percent, means that middle-class families with average-sized homes and small retirement savings are hit hard by the tax.

It also means the tax affects small businesses or family farms of virtually any size, discouraging investment and growth among our private-sector job creators. Compounding the inequity is that government already has taxed the assets subject to the death tax when the money was earned. Because of our onerous estate and inheritance taxes, Forbes magazine lists New Jersey as a place "Not to Die" in 2014.

That's a problem, and it's one our sister states are trying hard not to duplicate. A recent study by Connecticut determined that states with no estate tax created twice as many jobs and saw their economies grow 50 percent more than states with estate taxes. That research prompted Connecticut and many states to reform their death taxes. New York just lowered its death tax, and several other states have eliminated theirs.

The good news is that New Jersey's leaders finally are realizing that our confiscatory death tax is a big deal. A bipartisan coalition of legislators has shown its support for reforming New Jersey's death tax..."

Unfortunately, the leadership at AFP changed and decided to become part of a political strategy advocated by some GOP Senators.  This strategy argued that the gas tax was a game-changer that would result in a backlash that the GOP could harness to achieve power, much in the way they had in 1991-93.  Extensive polling by a well-respected survey research firm was produced in support of what by now had become a certainty in their minds.  The gas tax was a "third rail" (they said) that would end the career of any Republican foolish enough to vote for it and that would propel the GOP into majority status.

When the time came for Jay Webber to be counted as part of a bipartisan coalition to get the deal done, he couldn't be counted on.  Jay got scared off by AFP and people like NJ101.5's Bill Spadea.   Webber began to enthusiastically attack those who did what he advocated doing only a short time before.  One of those was his running mate, Assemblywoman BettyLou DeCroce. 

DeCroce found herself cut off from Webber and running alone -- facing two "anti-gas tax" opponents who made no bones about who they were targeting:  Assemblywoman BettyLou DeCroce.  Both opponents were Morris County Freeholders with generally conservative records.  One, Freeholder Hank Lyon, specifically identified with Assemblyman Webber and shared many of the same supporters, in addition to the same issues-grid and talking points.  Like Webber, Lyon billed himself a "movement conservative" despite the fact that the father of the modern conservative movement, Ronald Reagan, had not only endorsed the gas tax as a user tax -- he had doubled it as President.

In the end, Freeholder Lyon -- Assemblyman Webber's "clone" -- came up short. 

While some have noted the involvement of non-public, blue-collar, union money in the LD26 race, they neglect to mention the hundreds of thousands of dollars worth of prime radio time spent driving up the negatives of the "gas tax" and building momentum to specifically turn out of office legislators who voted for it.  The FCC is currently doing an analysis of the time spent on this campaign and its fair market value.  Add to this the cost of the petroleum lobby's efforts -- in particular AFP -- and we soon see that the working men and women were once again out-spent by corporate interests.

In closing, let us remind our readers that the most effective advertisement used against the Republican ticket in 2008 wasn't reported on any campaign finance or disclosure report.  It was simply a series of commercial broadcasts -- political attack ads, masquerading as comedy.

Ethics complaint to be filed against ELEC's Jeff Brindle

The "hit piece" was published on a website that was once the domain of David "Wally Edge" Wildstein.  That's before he sold it to Jared "to Russia with love" Kushner.  Yes, that Jared Kushner, the son of Governor Jim McGreevey's number one bagman and son-in-law of the sitting President of the United States, whose obscure and anything-but-transparent  business and financial dealings have led to a string of controversies.

Under the editorship of the late Peter Kaplan, the Observer newspaper was once a genuine instrument of reform in New York City.  But Kaplan left after Kushner bought the newspaper.  Later, Kushner would install establishment GOP political consultant Ken Kurson as editor.  Kurson, who ran political campaigns in New Jersey (in particular, Northwest New Jersey),  would transform the newspaper into a web-only publication that ruthlessly pushed the Kushner political agenda. 

And so Mr. Jeff Brindle, the Executive Director of the New Jersey Election Law Enforcement Commission, chose a most irregular venue for expounding on the benefits of campaign finance reform.  Of course, Mr. Brindle's arguments were not for the benefit of the general public or even the more specific electorate.  What Mr. Brindle presented in yesterday's Observer was a carefully crafted, opposition-research fueled, hit piece. 

Mr. Brindle argues that there should be more disclosure requirements covering organizations that spend money that could indirectly affect the outcome of an election.  We agree.  It is important to know the people behind organizations that have at their disposal mass amounts of cash and who seek to use that cash to influence the political process.  The Observer Media Group, for instance, which regularly endorses candidates and pushes a policy agenda (dare we say "lobby"?) that directly benefits the bottom line of its owners.

Or take Advance Publications -- an $8 billion corporate media giant owned by some of our region's richest -- and most politically liberal -- billionaires.  These guys hate labor unions, of course, because it means less for them and more for the people who work for them.  So they have successfully conducted a long-march through their work force.  First they came for the teamsters, then the printers, then the writers, and finally, the salesmen.  The billionaires who own Advance have a political and economic agenda.  They endorse candidates for public office and inject their opinions into elections.  And they have been so successful at lobbying that they have won for themselves a special state-mandated subsidy, directing millions in advertising to their businesses each year -- under penalty of the law.  Well, you know what they say:  Money comes to money.

In his "hit piece" in the Observer, Jeff Brindle takes aim at a group that has spent just over$275,000 on advertising in Northwest New Jersey.  Mr. Brindle hints strongly of a labor union connection with this group.  Now ask yourself, Mr. Brindle, why would working people, organized as a union, feel the need to become involved in the political process?  Perhaps they have heard about Advance Publications??  Maybe, just maybe, they seek to have some small measure of control over their personal economic well-being???  We're just guessing here... but maybe the great George Carlin has the answer...

What the Executive Director of the New Jersey Election Law Enforcement Commission leaves out of his discussion is his agency's own special "little rich boy" loophole that allows the very rich mommies and daddies of wannabe politicians to fund their campaigns for public office.  Look, rich people been cleaning up the lives of their more useless offspring for as long as any of us can remember.  Generally, when it comes to employment, daddy provides young Doofwhistle with a job at which he will not hurt the company or its employees... too much.  A bankruptcy here, a bankruptcy there -- it's all part of the fun of being a (very rich) parent!

But now -- thanks to the New Jersey Election Law Enforcement Commission -- young Doofwhistle can be shoved-off on the taxpayers.  Daddy can use his millions (or billions) to get his young incompetent elected to public office, where he will receive a salary (sometimes even with benefits) and make laws and run things and generallyJe help our civilization down that long road of post-democracy.

That's right!  Under NJELEC's "little rich boy" loophole, if a candidate still lives at home with his parents, their money is treated as if it was the candidate's own money.  We shit you not. 

D. Use of Personal Funds  Use of a candidate’s personal funds on behalf of his or her campaign must be deposited into the campaign depository and must be reported as either contributions or loans to the campaign in the same manner as all other contributions or loans. If the candidate intends to be reimbursed fully or partially for personal funds used on behalf of his or her campaign, then the funds must be reported both as a loan and as an outstanding obligation to the campaign if still outstanding at the end of the reporting period. Once a candidate’s personal funds are reported as contributions, the funds cannot be later characterized as loans and be repaid to the candidate. There is no limit to the amount of personal funds a candidate may contribute or lend to his or her own campaign (except for publicly funded gubernatorial candidates). See Gubernatorial Public Financing Program Manual for more information.  Also, a corporation, of which one hundred percent of the stock is owned by the candidate, or by the candidate’s spouse, child, parent, or sibling residing in the candidate’s household, may make contributions without limit to a candidate committee established by that candidate, or to a joint candidates committee established by that candidate.

We all remember how Hank Lyon won a seat on the Morris County Freeholder Board in 2011.  He used NJELEC's "little rich boy" loophole to get a late infusion of cash from a corporation controlled by his father. 

That infusion of corporate cash was improperly reported.  A judge overturned a close election, a lawsuit followed, another judge overturned the first decision, while an appeal wasn't pursued after the opposing candidate received a gubernatorial appointment.   Lyon's campaign still owes a huge amount of money to this corporation -- $75,966.66 -- according to Mr. Brindle's own New Jersey Election Law Enforcement Commission.

Per NJELEC's "little rich boy" loophole, this large infusion of corporate cash is only legal while Freeholder Hank Lyon and his father reside in the same household (according to corporate records, Lyon's mother resides in Texas). 

And now it's happening again.  Freeholder Hank Lyon recently found himself before a judge again, accused -- once again -- of violating New Jersey election law.  Lyon, who is a candidate for the state Legislature in next week's Republican primary election, could face serious ethical and legal issues in the weeks and months ahead -- and could endanger the seat (even handing it over to a liberal Democrat) if a court finds that, as in 2011, he violated the law.

Hank Lyon has long chaffed at the idea of his political career simply depending on "daddy's money."  He's worked to appear to be outside his father's shadow, going as far as lying on his official Freeholder biography:

"He is a lifelong resident of Morris County, specifically the Towaco section of Montville Township, where he was a member of the Montville Housing Committee.  He now lives in Parsippany."

Lyon even pictured his new home in legislative campaign advertising, with the words:  "Recently bought his first house, pictured above."  But if Hank Lyon no longer lived at home with his father, then how is he still using his dad's corporate money and keeping to the law? 

In February 2016, Freeholder Lyon did purchase a residential property in the Lake Hiawatha section of Parsippany-Troy Hills.  However, Lyon never occupied the property.  Neighbors claim to have no idea who lives at 45 Manito Avenue.  Mail has piled up and apparently gone unanswered.  Repairs and renovations have been pursued in a more or less desultory manner.  Then, on April 3, 2017, Lyon executed a mortgage on this property -- borrowing $125,000. 

According to Mr. Brindle's New Jersey Election Law Enforcement Commission, Freeholder Hank Lyon loaned his legislative campaign $35,000 on May 12th and $83,000 on May 16th.  His campaign then purchased $99,997 in cable television advertising that began airing on May 19th.

The mortgage stipulates that the borrower (Freeholder Lyon) "shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument."  This Saturday, June 3rd, those 60 days are up.

When Freeholder Hank Lyon moves in three days' time, the loan his father's corporation has with him will go sour.  It was only allowed while Freeholder Lyon made his father's home his principle residence.  Freeholder Lyon should have paid off the loan that will clearly place him outside normal, ethical, campaign finance limits.  Instead, he borrowed more to finance another campaign for political office.

Now this drama is taking place in one of those legislative districts Mr. Brindle mentioned in his hit piece.  Shouldn't the Executive Director of the New Jersey Election Law Enforcement Commission -- maybe, just maybe -- be writing about this money too?  Shouldn't Mr. Brindle be demanding that his agency end its "little rich boy" loophole?  And if NJELEC can't do it, then shouldn't he be writing columns suggesting that the Legislature do it?

It's not like this isn't a growing problem.  We now have a candidate for Governor -- yes, for the job of chief executive of the state -- running around with nearly a million dollars to spend on a political campaign, courtesy of NJELEC's "little rich boy" loophole.  Do we really want elected officials whose main qualification for office is their ability to fan daddy's ass?  Like... aren't things kind of f'ed up enough all ready?

As the Executive Director of the New Jersey Election Law Enforcement Commission, Mr. Brindle's choice of opinion venues was highly questionable.  But it is what he wrote -- and his obvious bias against some and blindness towards others -- that should earn him a review.  And to that end, we have been made aware that someone intends to provide him with such a forum at which he can answer those questions. 

Hank Lyon: I lied, I didn't move from my parents' house

Freeholder Hank Lyon recently found himself before a judge again, accused -- once again -- of violating New Jersey election law.  Lyon, who is a candidate for the state Legislature in next week's Republican primary election, could face serious ethical and legal issues in the weeks and months ahead -- and could endanger the seat (even handing it over to a liberal Democrat) if a court finds that, as in 2011, he violated the law.

At issue is Freeholder Lyon's residency and the honesty and integrity of the voting process itself.

We all remember how Hank Lyon won a seat on the Morris County Freeholder Board in 2011.  A late infusion of cash from a corporation controlled by his father -- an infusion allowed only because of an election law loophole that says if a candidate still lives at home with his parents, their money is treated as if it was the candidate's own money.

D. Use of Personal Funds  Use of a candidate’s personal funds on behalf of his or her campaign must be deposited into the campaign depository and must be reported as either contributions or loans to the campaign in the same manner as all other contributions or loans. If the candidate intends to be reimbursed fully or partially for personal funds used on behalf of his or her campaign, then the funds must be reported both as a loan and as an outstanding obligation to the campaign if still outstanding at the end of the reporting period. Once a candidate’s personal funds are reported as contributions, the funds cannot be later characterized as loans and be repaid to the candidate. There is no limit to the amount of personal funds a candidate may contribute or lend to his or her own campaign (except for publicly funded gubernatorial candidates). See Gubernatorial Public Financing Program Manual for more information.  Also, a corporation, of which one hundred percent of the stock is owned by the candidate, or by the candidate’s spouse, child, parent, or sibling residing in the candidate’s household, may make contributions without limit to a candidate committee established by that candidate, or to a joint candidates committee established by that candidate.

That infusion of corporate cash was improperly reported.  A judge overturned a close election, a lawsuit followed, another judge overturned the first decision, while an appeal wasn't pursued after the opposing candidate received a gubernatorial appointment.   Lyon's campaign still owes a huge amount of money to this corporation -- $75,966.66 -- according to the New Jersey Election Law Enforcement Commission (NJELEC).

Per the NJ election law loophole, this large infusion of corporate cash is only legal while Freeholder Hank Lyon and his father reside in the same household (according to corporate records, Lyon's mother resides in Texas).  Here's where the story gets interesting. 

Hank Lyon has long chaffed at the idea of his political career simply depending on "daddy's money."  He's worked to appear to be outside his father's shadow, going as far as lying on his official Freeholder biography:

"He is a lifelong resident of Morris County, specifically the Towaco section of Montville Township, where he was a member of the Montville Housing Committee.  He now lives in Parsippany."

Lyon even pictured his new home in his legislative campaign's advertising, with the words:  "Recently bought his first house, pictured above."  But if Hank Lyon no longer lived at home with his father, then how is he still using his dad's corporate money and keeping to the law? 

In February 2016, Freeholder Lyon did purchase a residential property in the Lake Hiawatha section of Parsippany-Troy Hills.  However, Lyon never occupied the property.  Neighbors claim to have no idea who lives at 45 Manito Avenue.  Mail has piled up and apparently gone unanswered.  Repairs and renovations have been pursued in a more or less desultory manner.  Then, on April 3, 2017, Lyon executed a mortgage on this property -- borrowing $125,000. 

According to the New Jersey Election Law Enforcement Commission (NJELEC), Freeholder Hank Lyon loaned his legislative campaign $35,000 on May 12th and $83,000 on May 16th.  His campaign then purchased $99,997 in cable television advertising that began airing on May 19th.

The mortgage stipulates that the borrower (Freeholder Lyon) "shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument."  This Saturday, June 3rd, those 60 days are up.

When Freeholder Hank Lyon moves, in three days' time, the loan his father's corporation has with him will go sour.  It was only allowed while the candidate made his father's home his principle residence.  Freeholder Lyon should have paid off the corporate loan that will clearly place him outside normal, ethical, campaign finance limits.  Instead, he borrowed more to finance another campaign for political office.

Little wonder then that as a candidate for the Legislature, Hank Lyon supported borrowing and debt to pay for basic road and bridge maintenance.  He opposed adjusting the revenue source of the Transportation Trust Fund (TTF) for inflation, despite it having failed to produce enough revenue to fund the state's transportation needs since 1990.  Because of this "credit card" policy -- endorsed by Lyon -- by 2015, the revenue source (the tax on gasoline) brought in just $750 million annually, but the interest on the debt to fund all that borrowing cost taxpayers $1.1 billion annually. 

Borrowing, paying your bills with a credit card, is not the way of the fiscal conservative... it is madness. 

Did Hank Lyon break NJ Election Law again?

Everyone remembers how Hank Lyon won a seat on the Morris County Freeholder Board.  A late infusion of cash from a corporation controlled by his father -- an infusion allowed because of an election law loophole that says if a candidate still lives at home with his parents, their money is treated as if it was the candidate's own money.

D. Use of Personal FundsUse of a candidate’s personal funds on behalf of his or her campaign must be deposited into the campaign depository and must be reported as either contributions or loans to the campaign in the same manner as all other contributions or loans. If the candidate intends to be reimbursed fully or partially for personal funds used on behalf of his or her campaign, then the funds must be reported both as a loan and as an outstanding obligation to the campaign if still outstanding at the end of the reporting period. Once a candidate’s personal funds are reported as contributions, the funds cannot be later characterized as loans and be repaid to the candidate. There is no limit to the amount of personal funds a candidate may contribute or lend to his or her own campaign (except for publicly funded gubernatorial candidates). See Gubernatorial Public Financing Program Manual for more information.  Also, a corporation, of which one hundred percent of the stock is owned by the candidate, or by the candidate’s spouse, child, parent, or sibling residing in the candidate’s household, may make contributions without limit to a candidate committee established by that candidate, or to a joint candidates committee established by that candidate.

That infusion of corporate cash was improperly reported.  A judge overturned a close election, a lawsuit followed, another judge overturned the first decision, while an appeal wasn't pursued after the opposing candidate received a gubernatorial appointment.   Lyon's campaign still owes a huge amount of money to this corporation: 

But apparently, this large infusion of corporate cash is only legal while Hank Lyon and his father reside in the same household.  So we find it strange that Freeholder Hank Lyon is so reticent about providing his legal address on personal financial disclosure statements as required by law:

And the financial disclosure statement he submitted to the New Jersey Election Law Enforcement Commission (NJELEC) claims his father's address as his own:

And yet, sloppily, Freeholder Hank Lyon's biography on his official Morris County website page provides this conflicting information:

"He is a lifelong resident of Morris County, specifically the Towaco section of Montville Township, where he was a member of the Montville Housing Committee.  He now lives in Parsippany."

What is up with this guy?

Lyon's father was his Freeholder campaign's treasurer and its principal financier.  The lawyer who won the case for him was an alumnus of the Brett Schundler for Governor campaign and a movement conservative.  Lyon tried to screw him:

Lawyer seeks $162,000 from Morris County Freeholder Hank Lyon

Bottom of Form

Morris County Freeholder William “Hank” Lyon has been accused of owing his former lawyer $162,000 in unpaid legal bills while Lyon also is battling with the state over alleged campaign violations.

“What a worm,”  said attorney Sean Connelly about his former client, Lyon. “We never expected to be in this position. We won precisely how we said we would win.”

Lyon, a Montville resident, did not return several calls for comment and an email to his freeholder address.

Connelly and the law firm of Barry, McTiernan and Wedinger of Edison represented Lyon during a nine-month court battle that ended up with Lyon winning the freeholder seat.

Lyon had won the 2011 Republican primary by four votes over Freeholder Margaret Nordstrom of Washington Township.  Nordstrom sued and won, gaining her seat back.

Lyon appealed the ruling and a state appeals court ruled in his favor in February 2012 and removed Nordstrom from the position. Lyon later won the freeholder post at a special election in November 2012.

Connelly said that after Lyon refused mediation and other offers to settle, the firm finally filed the suiton June 13 in Superior Court in Middlesex County against Lyon and his father, Robert A. Lyon, both of Montville, and their organization, “Lyon for Conservative Freeholder.” Connelly said Lyon has asked the court to dismiss the lawsuit.

Connelly said that before the court action, he had told Lyon that the lawsuit would be very costly.

“They said they were going to fund this to the end,” Connelly said.

The legal effort included extensive court representations and $18,000 for transcripts.

“We filed motions upon motions upon motions,” Connelly said. “It tied up my practice for six months.”

Connelly said his firm has offered several discounts on the outstanding legal bills.  “They kept ignoring us,” Connelly said. “We offered them great terms to pay over time.”

Connelly also said he filed the lawsuit in Middlesex County in an effort to limit publicity in Morris County.

“I don’t want to embarrass him,” he said. “I want to get paid.”

Connelly said the freeholder avoided being served with the lawsuit summons, forcing him to hire a professional toserve him at Lyon’s freeholder office.

Connelly said he also named Lyon’s father, Robert, in the lawsuit because the elder Lyon initially had agreed to pay the legal bills.

Connelly said he believes Lyon and his family have significant assets, including real estate holdings and restaurants.

Lyon’s income includes $24,375 a year as a freeholder. He also works with his father in the family’s business, which owns four restaurants, including Qdoba Mexican Grill restaurants and Maggie Moo’s ice cream parlors.

Election Violations

The N.J. Election Law Enforcement Commission also has accused Lyon of four violations of campaign finance laws during the 2011 Republican primary. Each violation could result in a maximum $6,800 fine.

The same alleged violations were cited by Superior Court Assignment Judge Thomas Weisenbeck when he ruled against Lyon and in favor of Nordstrom.

The commission names Lyon and his father who was the campaign treasurer.

One alleged violation involves a $16,000 loan made to the campaign a week before the primary but not reported until July 8. The state says that because the contribution was more than $1,200, it should have been reported within 48 hours.

Another alleged violation occurred when Lyon and his father certified the information on the loan and campaign report was correct but that they changed it in a subsequent report. Initially, Lyons reported that he had made the loan but it was later changed to identify Robert Lyon as the contributor, the state said.

Additionally, the state claims the information about the contribution was submitted after the June 27 deadline.

Further, the complaint says that $16,795 in expenditures were listed on July 8 but were due on June 27.

(Editor Phil Garber, December 11, 2013, newjerseyhills.com)

The Lyon family operates a group of interconnected corporate entities out of the same office and same post office box they share with Hank Lyon's political campaign -- Post Office Box 193, 20 Indian Hill Road, Towaco, New Jersey.

Stay tuned...

Ice cream! Lyon didn't pay his refrigeration bill!

A recent political campaign mailer sent out by candidate Hank Lyon featured a double scoop of ice cream in a cone.  Yum.

But not if you are the poor soul who got stiffed for the refrigeration bill.  Ice cream needs to be kept cold, as we all know.  Lyon and his family own several restaurants, he and his campaign people are employed through these restaurants, and the corporations behind these restaurants have funded his campaigns.

Unfortunately, Tri-County Refrigeration had to sue Qdoba Restaurant Corporation (Case #DC 009143).  The case was filed on December 22, 2014.  The case resulted in a judgment against Qdoba for $2,142.35.   The judgment is numbered  004778 14.  The lien was filed on October 16, 2015.  The current status is open.

Here is a photograph from January 2013 of Freeholder Hank Lyon wearing the Qdoba Restaurant Corporation uniform.  Looks like he just had some ice cream.

Hank Lyon shouldn't talk about debt and taxes

We like Hank Lyon and wish him well.  Hank is an ideological conservative.  But it is his back story -- how he achieved public office, how he has maintained office, and how he seeks to advance himself up the ladder of public office -- that makes us uneasy.

It's a story of debt... and taxes.

Everyone remembers how Hank Lyon won a seat on the Morris County Freeholder Board.  A late infusion of cash from a corporation controlled by his father -- an infusion allowed because of an election law loophole that says if a candidate still lives at home with his parents, their money is treated as if it was the candidate's own money.

D. Use of Personal FundsUse of a candidate’s personal funds on behalf of his or her campaign must be deposited into the campaign depository and must be reported as either contributions or loans to the campaign in the same manner as all other contributions or loans. If the candidate intends to be reimbursed fully or partially for personal funds used on behalf of his or her campaign, then the funds must be reported both as a loan and as an outstanding obligation to the campaign if still outstanding at the end of the reporting period. Once a candidate’s personal funds are reported as contributions, the funds cannot be later characterized as loans and be repaid to the candidate. There is no limit to the amount of personal funds a candidate may contribute or lend to his or her own campaign (except for publicly funded gubernatorial candidates). See Gubernatorial Public Financing Program Manual for more information.  Also, a corporation, of which one hundred percent of the stock is owned by the candidate, or by the candidate’s spouse, child, parent, or sibling residing in the candidate’s household, may make contributions without limit to a candidate committee established by that candidate, or to a joint candidates committee established by that candidate.

That infusion of cash is improperly reported.  A judge overturns a close election, followed by a lawsuit, and another judge who reinstates the election results. 

Lyon's father was his Freeholder campaign's treasurer and its principal financier.  The lawyer who won the case for him was an alumnus of the Brett Schundler for Governor campaign and a movement conservative.  They tried to screw him:

Lawyer seeks $162,000 from Morris County Freeholder Hank Lyon

Morris County Freeholder William “Hank” Lyon has been accused of owing his former lawyer $162,000 in unpaid legal bills while Lyon also is battling with the state over alleged campaign violations.

“What a worm,”  said attorney Sean Connelly about his former client, Lyon. “We never expected to be in this position. We won precisely how we said we would win.”

Lyon, a Montville resident, did not return several calls for comment and an email to his freeholder address.

Connelly and the law firm of Barry, McTiernan and Wedinger of Edison represented Lyon during a nine-month court battle that ended up with Lyon winning the freeholder seat.

Lyon had won the 2011 Republican primary by four votes over Freeholder Margaret Nordstrom of Washington Township.  Nordstrom sued and won, gaining her seat back.

Lyon appealed the ruling and a state appeals court ruled in his favor in February 2012 and removed Nordstrom from the position. Lyon later won the freeholder post at a special election in November 2012.

Connelly said that after Lyon refused mediation and other offers to settle, the firm finally filed the suiton June 13 in Superior Court in Middlesex County against Lyon and his father, Robert A. Lyon, both of Montville, and their organization, “Lyon for Conservative Freeholder.” Connelly said Lyon has asked the court to dismiss the lawsuit.

Connelly said that before the court action, he had told Lyon that the lawsuit would be very costly.

“They said they were going to fund this to the end,” Connelly said.

The legal effort included extensive court representations and $18,000 for transcripts.

“We filed motions upon motions upon motions,” Connelly said. “It tied up my practice for six months.”

Connelly said his firm has offered several discounts on the outstanding legal bills.  “They kept ignoring us,” Connelly said. “We offered them great terms to pay over time.”

Connelly also said he filed the lawsuit in Middlesex County in an effort to limit publicity in Morris County.

“I don’t want to embarrass him,” he said. “I want to get paid.”

Connelly said the freeholder avoided being served with the lawsuit summons, forcing him to hire a professional to serve him at Lyon’s freeholder office.

Connelly said he also named Lyon’s father, Robert, in the lawsuit because the elder Lyon initially had agreed to pay the legal bills.

Connelly said he believes Lyon and his family have significant assets, including real estate holdings and restaurants.

Lyon’s income includes $24,375 a year as a freeholder. He also works with his father in the family’s business, which owns four restaurants, including Qdoba Mexican Grill restaurants and Maggie Moo’s ice cream parlors.

Election Violations

The N.J. Election Law Enforcement Commission also has accused Lyon of four violations of campaign finance laws during the 2011 Republican primary. Each violation could result in a maximum $6,800 fine.

The same alleged violations were cited by Superior Court Assignment Judge Thomas Weisenbeck when he ruled against Lyon and in favor of Nordstrom.

The commission names Lyon and his father who was the campaign treasurer.

One alleged violation involves a $16,000 loan made to the campaign a week before the primary but not reported until July 8. The state says that because the contribution was more than $1,200, it should have been reported within 48 hours.

Another alleged violation occurred when Lyon and his father certified the information on the loan and campaign report was correct but that they changed it in a subsequent report. Initially, Lyons reported that he had made the loan but it was later changed to identify Robert Lyon as the contributor, the state said.

Additionally, the state claims the information about the contribution was submitted after the June 27 deadline.

Further, the complaint says that $16,795 in expenditures were listed on July 8 but were due on June 27.

(Editor Phil Garber, December 11, 2013, newjerseyhills.com)

The Lyon family operates a group of interconnected corporate entities out of the same office and same post office box they share with Hank Lyon's political campaign -- Post Office Box 193, 20 Indian Hill Road, Towaco, New Jersey.

We know this because a number of these corporate entities have filed for bankruptcy or have liens or judgments against them or owe taxes.

While serving as an elected Freeholder, at least three corporate entities operating from the same office and post office box as Hank Lyon's political campaign have filed for bankruptcy.  These are 275 Prospect Street Associates, LLC (Case #15-16683); High Prospects, LLC (Case #15-16684); and Zero Barnegat, LLC (Case #16-25213).  The creditors in the first bankruptcy cases included the following:

On the Zero Barnegat bankruptcy, the creditors included:

This is all very troubling for the career of such a young conservative.  And especially because his campaign has only grown more indebted to a corporate entity within this interconnected group.  Hank Lyon's corporate indebtedness jumped between October 15, 2013, and October 15, 2016:

Note the address of Imperial Management Company.  It is 275 Prospect Street in East Orange.  This is the property managed by another Lyon corporate entity, 275 Prospect Street Associates, the company that had to file for bankruptcy and owed debt to taxpayers and residents.  The principalsof this corporate entity are Hank Lyon's parents:

In addition to bankruptcy, 275 Prospect Street Associates, LLC, has only recently emerged from a state suspension:

There are two Lyon family controlled corporations that go by the name "Imperial Management" -- one is a corporation, the other is an LLC.  The corporation -- Imperial Management, Inc. --  is listed as the entity owed the debt by Hank Lyon's campaign.  Unfortunately for Lyon, the family corporation that his campaign is in debt to is currently under suspension by the state.

As for the other Imperial Management Company owned by the Lyon family, it has recently emerged from a suspension by the state:

This is an unholy mess and until Freeholder Lyon can sort it out and extricate his campaign from it, he has no business running for higher office.  Trying to move up the political ladder, with a campaign so deeply in debt to dodgy corporations who are in debt as well, is just crazy.   It is an open invitation to a well-financed Democrat, backed up by a free-spending gubernatorial candidate and super-PACs loaded with cash. 

There is also the matter of ideology to be cleared-up.  How can one claim to be a "conservative" when he is existentially wrapped around such a convoluted mess of debt, bankruptcy, and fiscal irresponsibility?  If you cannot keep from being suspended by the state or fined by NJELEC or having your rents garnished, then how can you hope to address the budget of the State of New Jersey?

Lyon supporter claims Reagan "destroyed" the GOP

Those of a certain age (GOP primary voters?) may remember the movie "Wild in the Streets."  The soundtrack from the 1968 cult classic included "Shape of Things to Come" and other hits.

The movie covers the events leading up to and after the election of a 25-years-old Republican as President of the United States.  He embarks on a campaign of intergenerational warfare that transforms America into "the most truly hedonistic society the world has ever known."

"Wild in the Streets" came to mind after reading an opinion piece by yet another Morris County YR.  This one has turned his personal Facebook page into a homage to Freeholder Hank Lyon, a candidate for Assembly in legislative district 26. 

The title of the young man's column was:  " Why Reagan Destroyed the Republican Party."  Yep, you read that right.  We kid you not.

First of all, for anyone with sensory perception, the Republican Party is not "destroyed."  It controls the White House, the Senate, and the House of Representatives.  There are 33 Republican Governors to 16 Democrats and one Independent.  As for State Legislatures, the map below illustrates how tilted to the GOP that is:

Destroyed???  Is this strange perception due to this young man coming from a state like New Jersey?

Perhaps.  But we believe that what is at work here has more to do with age.  The young man who wrote this did not live in that time before Reagan, when the Democrat congressional softball team was called "The Permanent Majority."  After Reagan, that boast would never be heard again.

And thanks to President Ronald Reagan, that young man was born into a world in which the Soviet Union was a memory, not a menace.  That's not the case for most Republican primary voters.  For them, the Soviet Union was a very real psychological disturbance, always in the background, hovering, waiting.  The civil defense drills and the threat of nuclear war, was something to be absorbed and then compartmentalized, away from daily life but always someplace there.

The 1950's...

The 1960's...

The 1970's...

The 1980's...

Today's young Republicans never experienced any of that, because Ronald Reagan beat the Soviet Union, destroying their economy along with their ideology, and doing it so thoroughly that even "Red" China went capitalist.  Reagan's greatness is assured because he kept his most important promise -- to leave Marxism/Leninism on the "ash heap of history" -- and he did so without it costing a million American lives.

The young Hank Lyon supporter's indictment against Ronald Reagan is that the President did not sufficiently rein in spending.  Lyon's supporter appears to forget what President Reagan was spending that money on:  The largest peacetime military buildup in history, whose goal it was to overtax the Soviet economy into oblivion.  With the alternative a nuclear exchange, it was money well spent.

To write a critique of Ronald Reagan's presidency without mentioning the Cold War or the Soviet Union, is like writing about Abraham Lincoln and leaving out slavery and the Civil War.  It's a non-starter.

The Lyon supporter who so cavalierly trashed the memory of President Ronald Reagan can do so because he has never held any form of public responsibility at all.  Once he holds public office of some kind, and we sincerely hope he does, he will gain some humility.  He will learn that in a representative democracy, perfection is unachievable.  That there are always trade-offs and muddle-throughs.  The young writer will learn this from life as well.  He will learn that no marriage goes exactly as wished for, or children, or career.  He will learn that the expectation of perfection is the enemy of happiness. 

Time and that river, life, will work away his stoney sharpness and his certainties.  And he will be a better human for it.