BLOOMBERG:
New Jersey Governor-elect Jon Corzine will choose U.S. Representative Robert Menendez, the highest- ranking Hispanic in Congress, to fill his U.S. Senate seat, according to a Democratic Party official in Washington who requested anonymity. Corzine, 58, a former chief executive of Goldman, Sachs & Co., will be sworn in as governor Jan. 17. Menendez, 51, would serve the final year of Corzine's term and can run for a full six years in November.NYTIMES 12/02/05:
One issue that is clearly clinging to Mr. Menendez, at least within political circles, is his relationship with Kay LiCausi, his former state director who left his staff in 2002 and quickly began making hundreds of thousands of dollars as a consultant, lobbyist and fund-raiser.MORE HERE:
Mr. Menendez steered more than $200,000 worth of political consulting and fund-raising contracts to Ms. LiCausi, and several of her clients were businesses or organizations run by prominent supporters of Mr. Menendez, while others had interests that could be assisted by Mr. Menendez as a political leader and congressman.
Mr. Menendez said in an interview this summer that Ms. LiCausi's success as a lobbyist and consultant was solely the result of her talent and expertise. He refused to say whether he had a romantic relationship with her, despite the widespread belief in New Jersey that the two were dating during the time her consulting business took off.
Despite Mr. Menendez's insistence that there was nothing improper about their relationship, Republicans are trying to turn it into a scandal. In a Nov. 10 letter responding to Democratic criticisms of Republicans, nine Republican members of Congress included Mr. Menendez in a list of Democrats worthy of further scrutiny.
Among the signers of the letter was E. Scott Garrett, the congressman from northern New Jersey. "You have funneled $200,000 worth of political consulting and fund-raising contracts to Kay LiCausi, your former staffer," the letter said. "Do you think this fosters a culture of corruption?"
Matthew Miller, Mr. Menendez's press secretary, dismissed the letter as "false pathetic trash that's typical of House Republicans." But Republican leaders in New Jersey say Mr. Menendez's relationship with Ms. LiCausi is fair game. "This wasn't a personal issue. It was a business issue, a professional issue," said Tom Wilson, chairman of the state's Republican Party. "He will be pressed on that."
Monday, July 18, 2005 -- Subject: Menendez/Kenny scandal in Jersey City ...
Rep. Menendez is involved in a scandal in Jersey City. As reported in the New York Times, there is a widespread belief among elected officials and political consultants in Hudson County and former members of Mr. Menendez's staff that Ms LiCausi and the congressman had a romantic relationship. Menendez acknowledged that he awarded her a $130,000 contract to raise money for the Democratic Congressional Committee where he weilds enormous clout.
Ms. LiCausi is head of Hoboken based K.L Strategies, not far from where Menendez lives. Her office is located in a building owned by Applied. Ms. LiCausi was paid $7,500 by Liberty National, an affiliate of Applied Management, a major waterfront developer founded by Joseph Barry - a long time ally of Menendez, Mr. Barry is currently serving a 25 month sentence on a federal conviction for paying off a Hudson County official in connection with a Hoboken project.
She also received $10,000 a month from the Democratic Congressional Campaign Committee in 2003 and 2004, that Menendez acknowledged he encouraged the committee to hire her for.
Ms. LiCausi is also vice chairman of the Hudson County Democratic Party, an elected position. One of the politicians she lobbied, according to her own disclosure forms, was (guess who) State Senator Bernard Kenny - a confidante of Mr. Menendez - but Kenny rejected the notion of conflict of interest, saying he seperated her political and lobbying roles.
Talk about typical! And what rabbit hole is Corzine's head down on this one?
The original NYTIMES article exposing the Menedez-LiCausi corruption HERE. EXCERPT:
In January 1998, Kay Elizabeth LiCausi, a 26-year-old graduate of Rutgers University and a former Congressional intern, walked into the second-story office of a New Jersey congressman to start a job as scheduler. The work was not glamorous - sorting through invitations, checking Amtrak timetables and fetching breakfast. But Ms. LiCausi was working for Representative Robert Menendez, a rising star in Democratic Party politics and the de facto political leader of Hudson County, who was soon to become the highest-ranking Hispanic member of Congress. She quickly gained his trust, and less than three years later was promoted to director of his New Jersey headquarters.By making this appointment - in what will be his first act as Governor - Corzine has proved he is as corrupt as the Dem Machine in NJ. And scum. It's no surprise - more about Corzine's corruption HERE.
But in 2002, after helping Mr. Menendez win re-election to a sixth term, Ms. LiCausi left his staff. Since then, her influence has far exceeded that of a midlevel Congressional assistant. She has amassed hundreds of thousands of dollars in contracts as a consultant, lobbyist and fund-raiser.
Some of the work was orchestrated by Mr. Menendez, who steered more than $200,000 worth of political consulting and fund-raising contracts her way. Several of her clients are businesses and organizations run by prominent supporters of Mr. Menendez. Other clients need the assistance of the powerful congressman, and Ms. LiCausi has lobbied her former boss on their behalf.
But what has struck many seasoned politicians and consultants in New Jersey is the speed of Ms. LiCausi's ascent and the scope of her work, even in the state's forgiving political culture. She had little experience on Capitol Hill or in Trenton. In her highest position, she supervised a half-dozen members of Mr. Menendez's Jersey City staff. "This woman starts out as a midlevel staffer and then, all of a sudden, she's the greatest lobbyist on the East Coast?" said Bobby Jackson, the publisher of a small newspaper in Jersey City, who supported Glenn Cunningham, the former mayor of Jersey City, a political opponent of Mr. Menendez.
In an interview, Mr. Menendez praised Ms. LiCausi as an "incredibly talented individual" who was fluent in the nuances of politics, policy and process. He acknowledged that he recommended her for a $130,000 contract to raise money for the Democratic Congressional Campaign Caucus, an organization in which he wields enormous clout as the third-ranking Democrat in the House. He also said that he had recommended her, when asked, for lobbying and political work.
Ms. LiCausi declined repeated requests to be interviewed, though she provided a résumé and a statement, which said: "I am proud of my career and the quality of my work on behalf of all my clients. I have been successful for two reasons - I have worked hard and I'm good at what I do."
The tale of her swift success, however, is complicated by the widespread belief among elected officials and political consultants in Hudson County and former members of Mr. Menendez's staff that she and the congressman had a romantic relationship. Both Ms. LiCausi, who is 33 and single, and Mr. Menendez, 51 and recently divorced, refused to address any aspect of their nonprofessional lives. "That's strictly personal," Mr. Menendez said.
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