Wealthy Corzine's money dogs him on campaign trail (hid loan to union bedmate--disclosed two others)

Asbury Park Press & AP ^ | August 8, 2005 | Donna De La Cruz

[Liz]

WASHINGTON (AP) -- When Jon Corzine ran for the U.S. Senate in 2000, he was heavily criticized for spending more than $60 million of his own money on the race. Now as the Democrat campaigns to become New Jersey's next governor, his money is again the focus, but this time, it's what he has personally given and not disclosed.

Corzine has been criticized for lending a state union boss he was once romantically involved with $470,000 to buy a house. He later forgave the loan and received the union's gubernatorial endorsement.

Corzine's lawyer, Marc Elias, has said the senator did not have to disclose the loan to his former girlfriend, Carla Katz - president of Local 1034 of the Communications Workers of America - because it was a personal transaction. However, the senator did disclose two other personal loans to two other women on his Senate disclosure forms filed in 2000 and 2001.

Robert Walker, staff director and chief counsel for the U.S. Senate Ethics Committee, did not immediately return a telephone call Monday asking whether Corzine violated any ethics rules in not disclosing the Katz loan. The senator has said he took care of the gift tax. It does not appear that Corzine violated ethics rules, according to the Senate ethics manual.

Corzine loaned Avis Yates Rivers, president and CEO of Technology Concepts Group in Woodbridge, between $250,001 and $500,000, according to his 2000 disclosure form. During a telephone call Monday, Rivers said the loan was for business reasons but declined to comment further.

Corzine loaned Diane Kessenich, CEO of Winslow House International, a New York publishing company, between $250,001 and $500,000, according to his 2001 disclosure form. Kessenich did not return a telephone call seeking comment.

"It was strictly working to try to support small business in different instances," Corzine said Monday after an appearance in Atlantic City, N.J. "I knew them as human beings, but (there was) no romantic serious long-term relationship."

He said he gave the loans - he wouldn't say the amounts of either - for small businesses the women were involved in. The one to Rivers was never repaid; the Kessenich debt, which was part of Corzine's divorce settlement, was given to his ex-wife, Corzine said. He said he didn't know if it was ever repaid.

"The one to Avis Yates, I wrote it off," Corzine said. "There was no cash-flow. It was a business loan, it was unsuccessful."

When asked if there were any other loans he made that have not been reported, he said he wasn't aware of any.

Corzine has also attracted attention for his $7 million investment in a hedge fund owned and controlled by Icahn Partners LP, a state casino operator. He said again Monday that he would divest himself from Icahn's company if elected governor, to avoid the appearance of a conflict of interest. The company is headed by billionaire Carl Icahn, who is majority owner of the Sands Hotel & Casino.

Joseph Marbach, a political science professor at Seton Hall University, said the loan to Katz is troubling because it involves a powerful union official, but is not sure if voters will see that.

"It will be telling to see if this is a pattern or a one-time event," Marbach said of the loan. "It would probably behoove his camp to show this is the way he does things, that there's no calculation here, just a reflection of his generosity."

Peter Woolley, director of Fairleigh Dickinson University's PublicMind Poll, said he does not feel the issue of Corzine's loan will resonate with voters, especially since GOP gubernatorial candidate Douglas Forrester has had to defend whether he has violated a state law that prohibits individuals with majority ownership in insurance companies and other state-regulated industries from contributing to candidates or political organizations in New Jersey.

Forrester holds a 51 percent ownership interest in Heartland Fidelity Insurance Co., and is funding his campaign.

"They (Republicans) can only hurt Corzine if nothing else is going on with Forrester, and the bad news for Forrester is that this news about Corzine's loan was sandwiched into articles with news about Forrester's insurance company," Woolley said.

Woolley added that while Republicans are trying to paint Corzine as having a conflict of interest because of the loan and being morally and ethically challenged, the issue will most likely quickly fade with voters.

"The public generally doesn't hold it against people that they are wealthy and that they spend their money on all kinds of things, including their own campaigns," Woolley said.

Despite Forrester's financial fracas, Republicans were busy Monday attacking Corzine, even holding a news conference in front of the Hoboken condominium where the senator and Katz both live, albeit in separate apartments.

"The most fundamental threshold issue is that people have to be convinced that somebody is honest," said Tom Wilson, chairman of the New Jersey Republican State Committee. "Mr. Corzine represents all that is wrong with politics and government in New Jersey. He is part of the problem; he can't be part of the solution."

Corzine has said he remains friends with Katz, but their romantic relationship is over. The Dec. 18, 2002, loan from JSC Investments LLC, a company owned by Corzine, was given to Katz to help her buy her Alexandria Township home from her ex-husband.

Corzine met Katz in 1999 when he was campaigning for his 2000 U.S. Senate run. The Democrat said he forgave the loan after his romance with Katz ended in July 2004 because she did not have the means to repay it.

As union president, Katz represents more than 16,000 union members, including 9,000 state workers. The CWA is one of a handful of labor groups expected to press the state for billions of dollars in wage increases and pension and health fund bailouts. The current CWA contracts expire June 30, 2007.

A former CEO of Goldman Sachs, Corzine's personal wealth is estimated at up to $261 million. He split from his wife of 33 years in 2002, and their divorce became final in late 2003.

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[Liz]

Corzine's lawyer, Marc Elias, has said the senator did not have to disclose the loan to his former girlfriend, Carla Katz - president of Local 1034 of the Communications Workers of America - because it was a personal transaction. However, the senator did disclose two other personal loans to two other women on his Senate disclosure forms filed in 2000 and 2001.........

He spreads his own money around like birdseed. God knows what he'll do with public monies from the state treasury if elected governor.

Could be lines of women trailing out of the statehouse holding buckets.

[ncountylee]

Man this guy has one hell of an expensive lizard!

[JohnLongIsland]

boy does he pay his whores well.

[kcvl]

Avis Yates Rivers is President and CEO of Technology Concepts Group, Inc. (TCGI), an e-business solutions provider. Until 1985 she held a number of positions with Exxon Corporation and its New York subsidiaries. She has been named Entrepreneur of the Year, Top-25 African American Women in Business, and Top 10 Women in Technology. Ms. Yates Rivers holds a BA, Business Administration from City University of New York, and is a graduate of the Executive Management Programs at the Amos Tuck School of Business, the Kellogg Graduate School of Management, and the University of Wisconsin-Madison.

[kcvl]

Eight years ago entrepreneur Diane F. Kessenich, founder and CEO of Winslow House International (WHI), formerly Winslow Press, realized her vision. It hit at the very core of a critical need for children in today’s society - to connect the magic of a book with the wonder of the World Wide Web through her Web site www.ReadandClick.com. Her patented method - which applies to any book, any age - not only awakens the imaginations of young readers, but resolves the publishing problem of connecting books to the Internet. Recognizing that the education process starts when the child reads a book, Kessenich’s Web site enables one to expand on that experience by clicking onto interactive www.readandclick.com.

Prior to founding WHI and its Read&Click division, she started and ran an agency that represented authors and illustrators. An artist herself, Diane has shown her botanical watercolors locally. The Brave New Publishing Idea

Eventually, Winslow moved from their original home in Delray, Florida, to offices on East 23rd Street in Manhattan, where Kessenich assembled a first class team of professionals from the design, editorial, marketing, educational and technology worlds.

snip

Before Winslow House International went into Chapter 11, the Read&Click site was receiving a million hits a month. Today, 2-1/2 years later and without advertising, marketing or an active publishing house, the site averages half-a-million hits per month. Kessenich says that her backlist is still generating big orders. “The Web site has kept us alive, proving that a good book published with its own Web enhancement can generate an extended life of that title. We are keeping a backlist alive as a first in publishing.”

And, Kessenich is keeping her dream alive. This past summer, she was invited to present her curriculum to the dean of the college of education, the chair of instructional curriculum and the head of the technology department at Marywood University.

[mystery-ak]

He sounds like a rich Clinton..

[kcvl]

WINSLOW PRESS BANKRUPTCY REPORT

On June 13, Authors Guild legal staff attended the first creditors' committee meeting in the Winslow Press Chapter 11 bankruptcy. The publisher and CEO of Winslow, Diane Kessenich, was questioned under oath by representatives of the United States Trustee, the publisher's printing company, and the Authors Guild.

According to Ms. Kessenich and her attorney, Gabriel Del Virginia, the company is negotiating a deal to sell its assets (including its publishing contracts) to a major publisher. If that doesn't happen, the company will go into liquidation, which could mean that no creditors will get paid. On the other hand, if liquidation occurs, authors can then retrieve all rights they granted to Winslow and their contracts will terminate. The bankruptcy law requires that all debts owed by Winslow to the authors under the contracts must be paid in full before the contracts may be acquired by another publisher.

Kessenich expressed great willingness to work with any individual author who wants specific information about his or her titles. There are few remaining employees with the publisher, but Kessenich claims to have kept thorough records about the individual Winslow titles. She testified, and the representative of Winslow's printing company confirmed, that there are no copies of any Winslow books being held by the printer.

We learned at the meeting that there are no secured creditors. This is good news for authors and other unsecured creditors because there are no debts that must take priority over those of the unsecured creditors.

Winslow's deadline, which it had missed, to file legally required schedules of assets and liabilities was extended until June 27, 2002. Ms. Kessenich explained that her accountant had had a personal emergency that delayed his preparation of the required schedules. The trustee explained that the deadline extension would be the last one allowed. If the schedules are not filed by the deadline, the trustee will have to move to liquidate the company. Until the schedules are filed, no deadline for filing a proof of claim form can be set.

Kessenich acknowledged that royalty payments and statements to authors were late as of April 1 but said that she believes the authors will be paid by the end of the summer. Although Winslow is receiving payments from most or all of its foreign publishing and other licensees and is keeping "meticulous accounts" of those payments and the authors' shares of the money, others are not current on their payments to Winslow. Publishers Group West has apparently not made payments since March 30 because it is holding a reserve against returns.

Kessenich said she would gladly give an accounting of the disposition of the copies of each title printed and of the licenses granted to any Winslow author who asks for the information. She says she prefers being contacted by telephone, and would "welcome" authors‚ calls and questions. Although Winslow will be canceling its lease and moving to smaller offices shortly, the telephone number will remain the same in the new office space. Authors who wish to make their request for information in writing should feel free to contact the Guild for help.

Winslow has laid off most of its employees and has contracts covering approximately 42 titles. Approximately 10 titles have already been sold individually and with the authors‚ consent. However, Kessenich anticipates no more individual title sales and hopes instead to sell the remaining Winslow titles together rather than piecemeal. Until the contracts are assigned, or a court order allows, Winslow authors will not be able to get a reversion of their rights from Winslow.

The trustee seems concerned that this case move forward promptly. The proceeding will continue on July 25, 2002.

[Liz]

Snort------that's not even the half of it. For sure, he's ponied up bigger bucks for rolls in the hay.

[PGalt]

Thanks.

[kcvl]

Tell-A-Bunny Teacher Guide

This Winslow Press Teacher Guide has been designed for the classroom teacher by offering enrichment activities and discussion materials to complement Tell-A-Bunny. These activities can help students to better understand and enjoy the story as well as assist teachers in implementing strategies and experiences that support their district’s learning standards for language arts.

snip

We hope this Teacher Guide will be a useful and positive part of your teaching experience!


Sincerely,

Diane F. Kessenich

Chief Executive Officer and Publisher

[ken5050]

Can we please parse this phrase...

"..but there was no serious long term romantic relationship...."

OK, people, now exactly WTF does that mean...? they were both short-term booty calls? It jumps off the page....and is surprisng that he even added it to his comments, as a "qualifier" of sorts..

[bkepley]

I hate to defend him cuz I don't like him but if he'd been up front about it I don't see anythng wrong with it. It's chump change to him.

[kcvl]

Honoring the Contributions of Diane F. Kessenich

Presentation of the John N. Forman Award, Forman School, New York, NY, October 5, 1995

Don Winkler spoke of the many contributions and accomplishments of Diane Kessenich, chairman emeritus of the Forman School. He spoke not only of her management skills, but of her extraordinary leadership in working with the trustees and staff of the Forman School to identify the school’s mission. She created an environment where new theories were tested and new techniques were born. Don added that Diane believed that everyone had greater potential then they thought and she encouraged them to act, to achieve. She was an inspiring leader and was honored for her many contributions.

******


NEW IMPRINT - WINSLOW PRESS

Winslow Press is a relatively new publishing imprint, begun in Fall 1998 by Diane Kessenich. The Florida resident started the imprint in conjunction with her charitable organization, The Foundation for Concepts in Education. The unique aspect of the imprint is the website, http://www.winslowpress.com, which has activities, teacher’s guides, and other information related to the books. The first season showed five books published; they are up to twenty books each year. At first the emphasis was on picture books, but the current list has also has novels for elementary school-age readers and young adults, as well as books for preschoolers. One of the first books from Winslow Press that gained starred reviews was Adrienne Yorinks’ The Alphabet Atlas, which features illustrations made of pieced fabric quilts.

Last year, Margery Cuyler was named Winslow’s vice president and editor-in-chief. Cuyler was an editor at Clarion Books for a long time before she decided to make the jump to Winslow. She had also worked at Holiday House and Henry Holt, so she brings a great deal of experience and knowledge to this new imprint.

[Liz]

Heheh....nice catch.

Hey, Corzine's a generous guy. That kind of money would indicate a couple cheapies.....one-night stands (smirk).


Maybe a quickie or two in his Senate office.

[kcvl]

"It was strictly working to try to support small business in different instances," Corzine said Monday after an appearance in Atlantic City, N.J. "I knew them as human beings, but (there was) no romantic serious long-term relationship."

That is kind of Clintonian, IMO.

[OldFriend]

How sad for Corzine's first wife and their two sons.

Father's a dirt bag. Gets booted from Goldman Sachs and then continues on with his snarky behaviour with no lesson learned.

Corzine, Toricelli, McSleazy ~ perfect for New Jersey

[CaptainK]

Chump change to him, but a pot of gold to the woman who will be negotiating the salaries of the State of NJ union employees.

[Brilliant]

If this guy is willing to give $470,000 of his own money to a union mole, then I'm sure he'd not hesitate to give his vote as well.

He's on the take.

[SouthCarolinaKit]

Oh no! A crooked, rich Liberal? Can't be!

[maro]

I agree. Everyone up in arms about this should take a breath. He forgave some loans to ex-girlfriends. He's rich; for him it's like forgiving a $1,000 loan, or a $100 loan. Just a gesture. Unless more facts turn up, there's nothing here.