Montclair Progressive or Corrupt

The following narrative was filed with the Internal Revenue Service on February 13, 2024 as an attachment to Internal Revenue Service Form 211. The narrative and evidence is as of the date the claim was filed. The amounts of money transferred from the NJEA to Garden State Forward grew exponentially after that date and is explained on other website pages. At the time this was written, I had difficulty establishing the legitimacy of New Directions NJ. A future page devoted to Phil Murphy will delve into the details regarding New Directions NJ.

Introduction

Sean Spiller, Mayor of Montclair and President of New Jersey Education Association (‘’NJEA’’) has used his position of authority to fund his personal political ambitions despite the obvious conflict of interest.

NJEA has funded Garden State Forward (‘’GSF’’), a dark money super PAC since 2013.  For the 10 year period ended 12/31/22, a sum of $65,000,000 was reported on the NJEA Form 990 on Schedule I as if it is a grant and not a political contribution.  GSF is part of the corrupt democratic political machine buying elections and favors in New Jersey.

Count One

Sean Spiller, President of the NJEA has committed multiple acts of campaign financing violations in both 2020 and 2024 campaign for mayor of Montclair, NJ. 

Wayne Public School teacher dues withheld and paid to the Wayne Education Association are funneled into Community for Academic Excellence which funded both of Spiller’s 2020 and 2024 mayor campaign funds at Spiller’s direction. Sean Spiller is also the president of the Wayne Education Association.

Sean Spiller, President of the NJEA directed contributions from the NJEA PAC be made to his political campaign fund for mayor in both 2020 and 2024 elections. These contributions were made in direct violation of the NJEA conflict of interest policy and the NJEA PAC guidelines. [Attachments 1-5]

• Community for Academic Excellence summary of campaign contributions to Sean Spiller campaign for mayor of Montclair.
• Percentage of Wayne Public School teacher dues funneled to Community for Academic Excellence paid to Sean Spiller campaign funds.
• Summary of all contributions to Sean Spiller campaign funds from entities that he controls.
• NJEA conflict of interest policy that prohibits Sean Spiller from accepting campaign contributions from any entity that he controls.
• NJEA PAC Guidelines: Chapter 1 identifying Sean Spiller as controlling individual and Chapter 6 explanation of process to follow when requesting contributions to local campaigns.  The MEA (Montclair Education Association) never requested any contributions to Sean Spiller campaign funds from the NJEA PAC.

Count Two

Sean Spiller, Montclair mayor, with David Placek of BDP-Holdings, LLC, formed a cabal of nonprofits to provide a false narrative of support for David Placek’s redevelopment plan for Lackawanna Plaza (‘’the plan’’) that is opposed by most voters. 

The leadership of the same nonprofits which received substantial monetary contributions from David Placek/BDP-Holdings, LLC attended multiple town council meetings and voiced their approval of the plan all of which are on U-Tube. 

The documentation shows that nonprofit leadership accepted monetary contributions and there are meeting minutes instructing members to attend the town council meetings to voice their support for the plan.  These nonprofits are not the voters. 

David Placek is a member of the Montclair Center BID and paid the BID to write an opinion supporting the Lackawanna Plaza re-development plan that community members oppose. 

David Placek has no experience in real estate development.  The only projects he has been involved with are sale lease-back transactions.  He has no urban planning, development or construction experience. [Attachments 6-12]

• Tally of public comments sessions at meetings held between August and November 2023.  The data clearly shows the community opposes the re-development plan, but the town council lead by Sean Spiller ignores the voters.
• Screen shot of BDP Holdings LLC (owned by David Placek) advertising the local nonprofit organizations he had paid off to support his Lackawanna Plaza redevelopment plan.
• Advertisement for Montclair Jazz Festival produced by Jazz House Kids, executive director Melissa Walker who voiced support for the redevelopment plan in an public comment session.
• Montclair Center Corporation (BID) (a 501(c)(3) organization) September 19, 2023 meeting minutes encourage members to support the Lackawanna Plaza redevelopment plan by contacting their councilors (see next to last page).  David Placek is both a member and a major donor of the BID.
• Jazz House Kids Form 990, page 1 for the year ended June 30, 2022 showing Melissa Walker is the President.
• Montclair Center Corporation Form 990, page 1 for the year ended December 31, 2021.
• Montclair Center Corporation Form 990, page 7 showing David Placek is a board member.

Count Three

There has been reporting on the NJEA’s funding of Garden State Forward, a dark money super PAC that can potentially expose Phil Murphy’s collusion with the NJEA to embezzle over $65 million over the past decade. Phil Murphy signed a law in April 2023 in an effort to cover up his involvement in campaign finance fraud by reducing the statute of limitations for filing a campaign finance violation from 10 years to 2 years. [Attachments 13-14]

• Summary of NJEA contributions for Garden State Forward, a dark money PAC, reported as grants.
• Reporting by New Jersey Monitor on April 3, 2023 on Governor Phil Murphy signing controversial campaign finance overhaul into law.

Count Four

GSF falsified its application as an Independent expenditure committee.  GSF is just a front for the NJ Democratic party to buy elections and political favors in the state of NJ supported by the NJEA.

Count Five

The NJEA funded GSF which funds democrat Governor Phil Murphy’s multiple PACs, spent over $6.9 million in the 2017 senate race in the 3^rd legislative district to promote the Republican candidate, Fran Grenier, over the incumbent democrat Steve Sweeney who won anyway. [Attachments 15-16]

• Reporting by WHYY on October 25, 2017, Race to defeat NJ Senate President Sweeney sets spending record.
• Summary of Garden State Forward expenditures to defeat NJ Senate President Sweeny.

Count Six

The NJEA funded GSF funded New Directions NJ, democrat Governor Phil Murphy’s PAC over $9.5 million between 2018 and 2020.  No spending has been reported on NJelec.  Since it’s Murphy’s PAC and he’s the governor, I guess it doesn’t matter. [Attachment 17-19]

• Summary of Garden State Forward expenditures reported by Open Secrets listing $9.5 million paid to New Directions NJ.
• Reporting by Insider NJ on December 23, 2020 on New Directions New Jersey voluntary release of donor list describing the entity as a 501(c)(4).
• Print out of search on the Internal Revenue Service that there is no tax exempt organization by the name of New Direction New Jersey registered.

Count Seven

The NJEA funded GSF which funded Prosperity Rising which funded democratic candidates for assembly and senate in the 11th, 16th and 38th districts.  Two candidates in the 16th district, Andrew Zucker and Mitchelle Drulis are both endorsed by the NJEA in the Nov. 7, 2023 election. [Attachments 20-22]

• Formation of new super PAC, Prosperity Rising
• Form 72/24-HR Prosperity Rising NJ Inc. reporting contributions from Garden State Forward and funds disbursed on behalf of candidates.
• Reporting by New Jersey Globe on April 26, 2023 on NJEA endorsements for candidates listed on Form 72/24-HR (see previous bullet point).

Count Eight

NJEA has mis-reported $65 million of payments to GSF on Schedule I as ‘’Grants and Other Assistance to Organizations, Governments and Individuals in the United States’’ over the past decade. I have a spreadsheet documenting every payment from the NJEA to GSF from 2013, inception to 2022.  Figures for 2023 are not currently available. These payments should have been reported on Schedule C and the section 527(f) tax should have been paid. [Attachments 23-24]

• NJEA Form 990 Schedule I 2019 listing grants to Garden State Forward in the amount of $12,066,320
• NJEA Form 990 Schedule I 2020 listing grants to Garden State Forward in the amount of $11,586,850
• NJEA Form 990 Schedule I 2021 listing grants to Garden State Forward in the amount of $6,000,000

Count Nine

My investigation offers further evidence that the NJEA does not conform to the Internal Revenue Services’ standards of good governance and behaves instead as an authoritarian regime. 

• NJEA is a section 501(c)(5) organization and is required to either provide notice to its members regarding the percentage of dues paid that are applicable to lobbying activities or pay a proxy tax. No notice has been given to members.
• The exempt purposes of a labor organization do not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. A section 501(c)(5) labor or agricultural organization may engage in some political activities, however, so long as that is not its primary activity. However, any expenditures it makes for political activities may be subject to tax under section 527(f). NJEA is engaging in substantive political activities, in fact the entity revolves around controlling politics in the state of New Jersey.
• It is prohibited to exploit the assets of a tax-exempt organization for personal benefit. Sean Spiller’s use of local union member dues for his local mayor campaign is exploitation of exempt purpose assets for personal benefit. 

Count Ten

NJEA is unresponsive to whistle blowers and exploits its union members to support its authoritarian regime. This is based upon several meetings with NJEA members.

• NJEA ‘’uses’’ union members for ‘’committee’’ work outside during hours not covered by the Collective Bargaining Agreement (‘’CBA’’).   Those meetings are held outside of school hours and have nothing to do with the union members actual jobs or related in any way to the local unions. People are on these committees – unpaid – while the committees are always headed by people who are NJEA employees whose salaries are all in excess of six (6) figures plus fully funded pension benefits. (see third bullet point below).
• Local districts and NJEA are unresponsive to members who have filed complaints about multiple CBA violations. 
• Many union members are working without contracts for over two years and don’t know how much their retirement benefits are.  Isn’t the purpose of the NJEA to represent the interests of its members? It doesn’t even do that.

Final Points

I have many more reports on file, but include the following to further demonstrate that Sean Spiller, mayor of Montclair and president of NJEA is committing fraud.  Where are the guard rails to protect the voters, community members, taxpayers, teachers, students, the future? [Attachments 25-27]

• Reporting by NJ.com on February 4, 2024 Gov. Sean Spiller, not until he explains all this
• Reporting by NorthJersey.com on November 3, 2023 on the politicization of education in New Jersey
• Reporting by the Sunlight Policy Center of NJ on February 9, 2024 on Sean Spiller’s lack of accountability.