John Ashcroft

TPG-Axon, the hedge fund that Gov. Jon Corzine has invested as much as $90 million of his own money, has a $332.2 million stake in Halliburton, a defense contractor that has become the devil to liberal Democrats nationally.  Corzine's ownership of Halliburton won't cost him any real votes -- anti-Halliburton voters dislike John Ashcroft even more - but it's still worth noting. 

Revelations yesterday that Christopher Christie did not report a personal loan he made to a former top deputy at the U.S. Attorney's office is the latest in a series of self-inflicted wounds that could cost him the race for governor.  Christie had solid lead over Gov. Jon Corzine in last week's Quinnipiac poll (51%), but his own mistakes are helping the Democrats regain some lost ground.  The conventional wisdom among many political insiders is that Corzine, enormously unpopular with voters, cannot win the election, but he can make Christie lose by spending enough to raise the negatives of his Republican rival.

Making a personal loan to a close family friend is not a political liability; indeed, Corzine has made plenty of financial gifts -- sometimes to people he doesn't even like.  Christie's problem here is that he did not report that loan on personal financial disclosure statements required by the Department of Justice.  News last week that Christie discussed his upcoming campaign for governor with former White House Deputy Chief of Staff Karl Rove helps Corzine paint Christie as a conservative Republican close to an unpopular former president.  Christie's decisions - apparently legal - to award no-bid public monitor contracts to: former U.S. Attorney General John Ashcroft; David Kelley, who was the U.S. Attorney in New York who decided not to prosecute Christie's brother for illegal trading violations; and to close political allies Herbert Stern and John Inglesino, who later made major contributions to Christie's campaign, are all self-inflicted wounds.  Christie's greatest attribute is his record taking down corrupt politicians.  His greatest problem, at least right now, is that Corzine can afford to turn each of these issues into 30-second TV ads. 

Updated: Christie did not report income from the loan on his federal tax return, according to a New York Times story.

Corzine's chutzpah is clear, although in blue New Jersey that might not matter.  The governor has not exactly been the poster child for full transparency.  Starting back in 2000, he lost ground when he refused to release his income taxes (he hid behind a Goldman Sachs partnership agreement that was less important a few years later when his ex-partner, Henry Paulsen, became U.S. Secretary of the Treasury.  He has declined to release his personal e-mail correspondence with Carla Katz, who was both his girlfriend and the president of the state's largest public employee union.  He even posted bail for a lobbyist who was accused to stalking one of his closest political allies.

The story of the day on Tuesday was not as much a new Quinnipiac University poll showing Christopher Christie with a nine-point lead over Jon Corzine in the race for governor, but rather the House Judiciary Committee's release of Karl Rove's testimony.   While Rove says that Christie never discussed his duties as U.S. Attorney, the two did chat about the 2009 campaign for governor.  The Corzine campaign is almost sure to turn Rove's interest in New Jersey politics into a TV ad that continues to tie Christie to George W. Bush, as they have with a mega million dollar federal monitor contract Christie gave to former Attorney General John Ashcroft.   And Rove's testimony is likely to fuel allegations by Democrats that he launched his statewide campaign from the Department of Justice.  Watch Democrats to renew their interest in statements made by Assemblyman Rick Merkt (R-Mendham) over an incident last summer, when other Republicans tried to push him out of the gubernatorial race.

Most of the attention of picking a Lt. Governor candidate has been on the Democratic incumbent, Jon Corzine.  But that doesn't mean Republican Christopher Christie is having an easy time either.  As a former U.S. Attorney, Christie was supposed to be the ethics candidate.  But a couple of self-inflicted wounds - mega million dollar federal monitor contracts for John Ashcroft, David Kelley and John Inglesino - have put Christie, who sent more  than 100 public officials to prison, on the defensive as Corzine and the Democratic Governor's Association have already spent more than $3 million basing Christie on ethics. 

Despite the heaving spending attacking him, Christie leads Corzine by twelve points in a Quinnipiac University poll and eight points in a Monmouth University/Gannett New Jersey poll.   He is the first Republican to be over 50% in an independent poll in 24 years, and some key Democratic insiders now believe Christie can win.  Imagine what the race might look like had Christie hired federal monitors not named Ashcroft and Kelley, and rejected campaign contributions from Inglesino and law partner Herbert Stern? 

Christie will have an easier time picking a running mate because he doesn't have influential officeholders from his own party putting extraordinary pressure on him to pick - or not pick - a particular candidate.  Christie has had to pay special attention to the vetting process, partly because as a former federal prosecutor the bar is set a little higher for him, and partly because he can't any more self-inflicted wounds.  Once Christie loses his lead in arguably the most Democratic state in the nation, it will be nearly impossible to get it back.

Christie may be favoring Kim Guadagno, a former federal prosecutor and state Director of Criminal Justice who has served short stints on the Monmouth Beach governing body and as the Monmouth County Sheriff.  Some say Guadagno is in Christie's comfort zone; she comes out of the same prosecutorial establishment world.  She also has no legislative voting record to pick apart, and may be relatively low-risk for the GOP candidate.  Steve Lonegan, the conservative who challenged Christie is the gubernatorial primary, sort of gave his blessing to Guadagno this week. 

If Corzine picks a Reality TV star, Guadagno can make the argument that she is the most experienced LG candidate.  If Corzine picks a Democrat with more gravitas, Guadagno could be seen as someone who held local office in a town half the size of Wasilla, and as Sheriff of a county about the size of Alaska.

U.S. Rep. Frank Pallone (D-Long Branch) is asking former U.S. Attorney Christopher Christie for a "clarification" of his testimony before the House Judiciary Commercial and Administrative Law Subcommittee in June.  Pallone is the co-sponsor of legislation to reform the process used to select federal monitors in deferred prosecution agreements.  Christie, who was New Jersey's federal prosecutor from 2002 to 2008, is now the Republican nominee for Governor.

Pallone wants Christie to address his role in setting legal fees for former U.S. Attorney General John Ashcroft's firm to monitor a DPA with Zimmer Holdings.  Christie had initially said that he was not involved, but e-mails show that had some involvement.

"I would like to offer you the opportunity to try to reconcile your remarks to the subcommittee about your selection of federal monitors," Pallone wrote in a letter to Christie today.

The full text of Pallone's letter:

WASHINGTON – In emails to former U.S. Attorney Chris Christie and First Assistant Michele Brown, an attorney for Zimmer Holdings, LLC complained about exorbitant fees charged by the monitor appointed by Christie to oversee his client.  

The monitor was a firm led by former Attorney General John Ashcroft, whose lucrative federal monitoring contract has been a liability for Christie.  In an email to Christie dated  October 17, 2007, attorney Frederick Robinson took exception to the $750,000 flat fee requested by Ashcroft’s firm.

“We believe that this request, in both concept and amount, is unreasonable,” Robinson wrote.  “Even if one assumed that these gentlemen, due to their vast experience, could command hourly rates of $1,000… that would translate into an aggregate effort level of 750 hours per month for 18 months.  We do not believe that such a level of effort will be required by these three individuals or that a guaranteed payment of any amount is appropriate.”

Today is an important moment in the 2009 race for Governor of New Jersey.  In Trenton, Gov. Jon Corzine seeks to get Legislative approval of his state budget.  In Washington, Republican Christopher Christie, a former U.S. Attorney, testifies before a House Judiciary subcommittee considering legislation to change the way federal monitors in deferred prosecution agreements are selected.

Corzine, with upside-down approval ratings in independent polls, especially on economic issues, needs a budget that he can sell as a success story.  Christie, criticized for lucrative federal monitor contracts to former U.S. Attorney General John Ashcroft, former New York U.S. Attorney David Kelley, and political allies Herbert Stern and John Inglesino, needs to get through the hearing without making any real news.  He wants to make sure voters care more about Corzine's handling of the economy.

It’s a big political news day for New Jersey, with three important stories playing out in Trenton and Washington.

Republican gubernatorial nominee Chris Christie will testify before a congressional subcommittee about the way he assigned deferred prosecution agreements as U.S. Attorney.  Also testifying will be his chief critics on the matter – U.S. Reps. Bill Pascrell (D-Paterson) and Frank Pallone (D-Long Branch) – who have authored legislation regulating the way federal monitoring contracts are assigned.  PolitickerNJ.com will be in Washington to cover it.  

The budget, now with another $400 million put towards property tax relief, is set for a vote in both the Assembly and state Senate.    

And the state Senate will vote on whether to give state Supreme Court Justice Barry Albin tenure.  Although Republicans have accused Albin of judicial activism and made a political issue out of his reappointment, the senate is widely expected to approve his him.  
Albin, 56, will then be able to serve on the court until his mandatory retirement at age 70.  

Republican gubernatorial candidate Christopher Christie's decision to testify in front of a congressional subcommittee next week was the logical choice, according to Monmouth University pollster Patrick Murray.

"It was clear he was going to have to do this at some point in time," he said.

Christie will testify about a type of corporate fraud settlement called deferred prosecution agreements, in which defendants can avoid prosecution by taking on monitors and making other types of restitution.  U.S. Reps. Frank Pallone (D-Long Branch) and Bill Pascrell (D-Paterson) have pending legislation reforming the way the agreements are given out, which is largely inspired by Christie.

Former U.S. Attorney and current Republican gubernatorial candidate Chris Christie is considering an invitation to testify before the House Judiciary Subcommittee on Commercial and Administrative Law on June 25.  

The committee originally scheduled the hearing and invited Christie for May 19, but put it off at the urging of Republican members, who argued that its timing could impact the GOP gubernatorial primary.  

The hearing’s focus will be on legislation co-authored by U.S. Reps. Frank Pallone (D-Long Branch) and Bill Pascrell (D-Paterson) that creates guidelines for how deferred prosecution agreements (DPAs) are awarded.  The political ramifications are obvious, however, as the legislation was inspired by Christie’s awarding of a lucrative federal monitoring contract to his former boss, ex-U.S. Attorney General John Ashcroft.