Updated Apr 12, 2019; Posted Apr 12, 2019

Ted Sherman reports for NJ.com

A special task force investigating New Jersey’s troubled Economic Development Authority says it uncovered evidence of “unregistered lobbying” in connection with the state’s tax incentive program and has referred the matter to law enforcement.

A spokesman for the task force would not provide any details on the nature of the alleged offense, who was being investigated, or where the matter had been referred to for criminal investigation. The task force’s special counsel said only that unregistered lobbying had “materially affected the legislation and regulations governing New Jersey’s tax incentives granted to businesses.”

Attorney Jim Walden, who serves as special counsel to the task force, outlined the evidence of those potential criminal violations in a referral letter which was sent on Thursday.

How those state EDA grants are awarded, and the regulations governing eligibility, can mean significant financial benefits to companies that qualify for those tax credits. The EDA program has given out tax credit incentives worth $11 billion since its inception.

Meanwhile, one unnamed company that was the beneficiary of an EDA incentive grant has voluntarily come forward to admit it was not in compliance with program requirements, and agreed to repay the payments it has received, saving taxpayers $1.5 million, officials disclosed.

The task force was formed by Gov. Phil Murphy in the wake of an audit by the state comptroller in January, which sharply criticized the EDA’s oversight of the state’s economic incentive program that hat offers lucrative tax credits to lure businesses to New Jersey, encourage them to stay or expand their operations.

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