NJ-Gov: Is Forrester's Self-Financing Illegal?

Doug Forrester can't catch a break. His attempt to position himself as a crusading Trenton outsider looking to reform the system has been thwarted at every turn. First, it turned out that his fortune came largely from no-bid contracts that would be banned by the very anti-pay-to-play laws he claims to champion. And now it's revealed that as a majority owner of an insurance company, Forrester may not be able to legally contribute to any political campaigns in New Jersey, much less his own.

The Philadelphia Inquirer has the story:

The law bars insurance companies and other state-regulated industries doing business in New Jersey - and individuals with majority ownership in the companies - from contributing to candidates or political organizations in the state.

Forrester holds a 51 percent ownership interest in an insurance company that sells most of its policies to governmental clients in New Jersey.
. . .
Forrester's company, Heartland Fidelity Insurance Co., was established by him in 2003 to sell health-benefits insurance. Heartland is managed by a second Forrester company - the New Jersey-based BeneCard Services Inc. - which brokers and administers the Heartland contracts. Forrester said he has made more than $50 million from his business, and he is financing his campaign for governor almost exclusively with his own money.

Since forming Heartland, Forrester has spent $11 million to win the GOP gubernatorial nomination and has said he will also personally finance his fall campaign against Democratic U.S. Sen. Jon S. Corzine.

In addition, Forrester has contributed several hundred thousand dollars to various GOP candidates and committees in the state since forming his insurance company.

Forrester is fast and furiously making excuses for his apparent flouting of state campaign law, claiming that Heartland is not regulated by New Jersey law since it's licensed in Washington, D.C. However, the article points out that it's not a matter of insurance regulation, but election law. Since Heartland does business in New Jersey, they're covered. And as majority owner of the insurance company, Doug Forrester is not allowed to contribute to any political campaigns in the state -- including his own.

In another state, this may not be such a big deal. Forrester could return the money he contributed to his own campaign and work to raise private donations from other people. However, one of the main reasons the state GOP primary voters nominated Forrester is that, as a multi-millionaire, he could largely self-finance his own campaign. Campaigning in New Jersey is notoriously expensive as the state has no real broadcast media of its own to speak of, instead relying on the gargantuan New York and Philadelphia markets. Therefore, television and radio advertising budgets eat up a huge chunk of campaign cash.

The Forrester campaign is in quite a bind here, as the more they try to spin their way out of this, the more they undercut their candidate's image as a good-government conservative. It's awfully hard to claim the reform mantle when you're a millionaire who's gotten rich off of government contracts and then illegally use those millions to self-finance a run for governor. Even by New Jersey standards, that's pretty sleazy.



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NJ-Gov (none / 0)

Small typo, but we're waiting for 2006 for our Senate race! :-)
by nathan on Mon Aug 08, 2005 at 04:52:15 PM EST

Re: NJ-Gov (none / 0)

DOH!
by Scott Shields on Mon Aug 08, 2005 at 05:11:33 PM EST
[ Parent ]

Yo! (none / 0)

Even by New Jersey standards, that's pretty sleazy.

Why always dump on Jersey...everyone knows that Rhode Island is by far sleazier and corrupt....

by Nazgul35 on Mon Aug 08, 2005 at 05:45:25 PM EST

Re: Yo! (none / 0)

For what it's worth, I've spent my whole life in New Jersey, with temporary stops in New York and Texas.

If a native can't end a post with a crack on Jersey, what's left in this world?

by Scott Shields on Mon Aug 08, 2005 at 05:51:08 PM EST
[ Parent ]

that's easy (none / 0)

talking about how bad drivers from Pennsy and NY are....
by Nazgul35 on Mon Aug 08, 2005 at 07:11:05 PM EST
[ Parent ]

Re: that's easy (none / 0)

Good call! Like how the PA drivers slow down to 5 MPH through the EZPass lanes, among other assorted offenses...
by Scott Shields on Tue Aug 09, 2005 at 02:38:35 AM EST
[ Parent ]

Is Someone Going to Sue? (none / 0)

They should get this in a courtroom as soon as possible.  It would not only hang up Forrester's campaign and maybe dry up the well, it would put this on the front pages everywhere.
by nathan on Mon Aug 08, 2005 at 07:24:46 PM EST

Did I read this right? (3.00 / 1)

He's made $50 million since starting his insurance company in 2003?  Selling health benefits insurance?  Jesus, why isn't THAT the lead on this story?  What a greedy SOB.
by CatherineAtlanta on Mon Aug 08, 2005 at 09:37:56 PM EST

if your going to take this to court you... (3.00 / 1)

better hurry The Bush admin. is doing all they can to destroy the courts nationwide and turn them into Right Wing Religous churches.
Running the Davis, Nelson Klein team in Florida.
by Liberal on Tue Aug 09, 2005 at 01:45:42 AM EST

Tax fraud (none / 0)

Not to mention, by licensing in DC even though the HQ is in NJ and almost every client is a NJ public body, he "saved" himself $1.4 to $2 million in taxes due to New Jersey each year.

After the record debt Gov. Whitman put NJ in with "bonding" (and the newspapers did a poor job of explaining this meant DEBT), that $2 million per year tax fraud to NJ residents is awesome.  They already are among the most property-taxed states in the country.

Serving in the Whitman administration is where Forrester "learned" all about insurance.  When the GOP was kicked out, he put that "knowledge" to work making a quick pot of gold from no-bid contracts from GOP-dominated school boards, municipal and county govmints, etc., only for this questionable "business" to give most of it to GOP campaigns far too numerous to name.

I can't find any legit business of Heartland or Benecard in or around DC, but it did have a contract at one time with Brevard Co., Fla. (home of the vote fraud), and even those commissioners are recorded in meeting minutes as saying Benecard gypped them, didn't deliver what they promised (whatever that is).

by Mabel on Tue Aug 16, 2005 at 03:53:48 PM EST


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