State charges five more people in Morristown-based ‘straw donor’ probe

This story has been updated with additional information about the amounts of alleged straw donations by individual defendants.

The state’s political corruption investigation of Morristown attorney Elizabeth Valandingham has led to charges against Valandingham’s sister, brother-in-law, and three others accused of being “straw donors” in the alleged scheme.

State Attorney General Gurbir S. Grewal on Friday alleged the defendants helped conceal illegal campaign contributions made by Valandingham’s law firm to secure municipal contracts.

Collectively, these straw donors personally paid $239,000 in contributions to various candidates, and were reimbursed by the firm, according to the attorney general’s office.

Each was charged with fourth-degree concealment or misrepresentation of contributions, an offense that carries sentences of up to 18 months in prison and fines of up to $10,000 upon conviction.

Charged along with Valandingham’s sister, Vanessa Brown, 40, of West Caldwell, were Brown’s husband, Christopher Brown, 37, of West Caldwell; Ricardo Balanzateguimaldo, 40, of Bogota; Erin O’Reilly, aka Erin DeMauro, 41, of Lincoln Park; and Suzanne P. Gayet, 63, of Boonton.

“New Jersey’s campaign finance and pay-to-play laws are designed to ensure that law firms and other contractors cannot purchase an unfair advantage in the competition for public contracts by making undisclosed or overly large campaign contributions,” Grewal said in a statement.

“We are determined to hold individuals accountable if they seek to distort the political process and public contracting by making illegal contributions through the type of straw donor scheme alleged here.”

Friday’s charges stem from a probe in which five former public officials or candidates in December were accused of taking thousands in bribes in exchange for promises to steer municipal business to the law firm of an unnamed “cooperating witness,” described by the state as a tax attorney.

That witness is widely believed to be Valandingham’s longtime law partner, Matt O’Donnell, former tax attorney for Morristown and numerous other municipalities.

O’Donnell has not been charged with any wrongdoing. But the alleged scheme has resulted in second-degree charges against former Morris County Freeholder candidate Mary Dougherty, who is married to Morristown Mayor Tim Dougherty; former county Freeholder John Cesaro; ex-Mt. Arlington Councilman John Windish; former state Assemblyman Jason O’Donnell of Bayonne; and former Jersey City school board President Sudhan Thomas.

All have denied the charges.

Valandingham, who skated for a Morristown roller derby team under the name “Lawless Lizzie,” was charged in June with making false representation for government contracts and misconduct by a corporate official, stemming from alleged activities between 2012 and 2017 related to municipal contracts in Bloomfield and Mt. Arlington.

When submitting proposals to win these contracts, authorities say, Valandingham deliberately failed to disclose local political contributions made by the firm in the prior year– disclosures required by law.

She indicated the firm made no reportable contributions, when in fact, straw donors she recruited with an “unnamed co-conspirator” had done so on the firm’s behalf, investigators contend.

Valandingham has denied the allegations. Earlier this month, she rejected a plea deal that would have sent her to jail for three years in exchange for a guilty plea.  If convicted, she could face up to 10 years in prison and $150,000 in fines for each of the second-degree charges.

Her sister and brother-in-law, the Browns, have made at least $107,000 in contributions to New Jersey candidates since 2010, reported the New Jersey Globe.

Campaign finance records show they made donations to the mayor of Morristown and politicians in numerous other towns where they were not eligible to vote in local elections.

Vanessa Brown wrote checks to various campaigns totaling $87,499, “only to be contemporaneously reimbursed with cash deposits into one or more of her bank or financial accounts,” according to a probable cause affidavit filed by the state.  Her occupation on campaign donor forms is listed as “artist.”

Election records show Vanessa Brown gave $2,600 to Mayor Dougherty’s re-election team in 2013. She gave a like amount to the Morris Township Republican Committee in 2015, and the next year, $500 to the Morris County Republican Committee, election records show.

Her illegal transactions allegedly occurred between October 2010 and October 2016. Two months later, in December 2016, law enforcement was tipped about a Morris County law firm using straw donors to contribute to candidates and public office holders, in amounts often exceeding legal limits, according to state documents.

Christopher Brown, Vanessa’s husband, allegedly made $53,050 in straw payments between October 2010 and December 2016.  Campaign filings variously list him as an employee of Valandingham’s firm, O’Donnell McCord, and of IBEW Local 102.

O’Reilly’s alleged straw donations amounted to $35,350 between October 2010 and May 2016.  Records show she gave gave $2,500 to Tim Dougherty’s first mayoral election campaign in 2009.

Balanzateguimaldo, who is listed as working for Home Depot in campaign filings, is alleged to have made $34,050 in illegal donations between September 2012 and December 2016.

Gayet allegedly made $30,050 in straw donations between September 2012 and May 2016. Campaign filings show she gave the maximum $2,600 to Mayor Dougherty’s re-election team in the 2013 primary, and again in the general election.

Deputy Attorneys General John A. Nicodemo and Anthony Robinson are prosecuting the cases for the state Office of Public Integrity and Accountability.