Judge hits pause on two 'phantom' South Jersey campaigns for the Legislature
In a case that will call into question the validity of a crucial campaign finance “reform” enacted this year, a Superior Court judge on Friday froze the assets of a shadowy campaign account that promoted so-called phantom candidates in two competitive South Jersey contests for the Legislature.
Judge Michael Blee ordered that Jersey Freedom, listed as an independent expenditure group, make no further election expenditures.
The ruling, however, came five days before the Nov. 7 election and would not put a halt to any campaign mailers or TV ads that were paid for and distributed before Friday’s decision. The case was first reported by the New Jersey Globe, a political website.
Emergence of 'phantom' candidates in South Jersey
At issue was the emergence of independent candidates in two key races, the 2nd Legislative District, in Atlantic County, and the 4th Legislative District, in Gloucester and Camden counties. Both are viewed as battleground races in this Tuesday’s election, in which all 120 seats in the Legislature are on the ballot.
Republican officials accused Jersey Freedom of enlisting and promoting “phantom” candidates who have little or no political profile for the sole purpose of siphoning off votes from the established Republican Senate candidates, incumbent state Sen. Vince Polistina in the 2nd District, and Christopher Del Borrello, who is seeking the 4th District seat in a hotly contested race against Democratic Assemblyman Paul Moriarty.
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In one instance, state Senate candidate Giuseppe Costanzo, 62, of Clementon appears not to have voted in the past decade and only recently reactivated his voting privileges in June before entering the race under the banner of “Conservatives South Jersey” in the 4th District race, according to a Republican legal filing in the case. One of the people circulating petitions for Costanzo was the daughter of a close political ally of Moriarty, the Republicans' filing said.
“I think that those independent candidates were put up as spoilers who have no intention of taking office if elected,” said Jason Sena, a Red Bank attorney representing the Republican State Committee and the Polistina and Del Borrello campaigns.
Sena also alleged that Jersey Freedom, which listed a Queens, New York, post office box as its address, began spending funds on behalf of the candidates before formally filing paperwork legally certifying that it is an established group.
Sena said Jersey Freedom also listed incomplete or fake addresses with the New Jersey Election Law Enforcement Commission and did not disclose from whom it raised the money. The group reported no donations in its Oct. 27 filing with ELEC but listed a $35,226 debt owed to a Maryland company for direct mail costs.
Blee’s ruling earned praise from across the political spectrum, ranging from Republican leaders to progressive activists who have long clamored to counter the rise of “dark money” independent groups, whose presence has grown with each passing campaign cycle.
"Democrats have been caught using dirty tactics and dark money to try to trick voters into supporting phantom candidates for office," state Senate Minority Leader Anthony Bucco said in a statement. "The Superior Court ruling today is a victory for election integrity and for voters who deserve to know that their ballots counted.”
Antoinette Miles, the interim director of the New Jersey Working Families Party, echoed similar sentiments but without pointing the finger at Democrats.
“The voters of New Jersey deserve fair elections where they can make a decision based on the issues and not be manipulated or deceived into supporting phantom candidates by a dark money group," she said in a statement.
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An Election Transparency Act loophole
But the case also spotlights a loophole in the Elections Transparency Act, the sweeping campaign finance reform pushed by the Democratic leadership and signed by Gov. Phil Murphy this year.
The law was widely criticized by progressive and civic groups for greatly expanding the size of campaign contributions and for creating new “housekeeping accounts” that further swelled the campaign war chests of each party’s leaders.
The new law’s defenders deflected criticism by pointing to another “reform” provision that would require some independent expenditure groups to disclose for the first time donations of $7,500 or more. This was heralded as a watershed moment in transparency.
But given less attention was a loophole that exempted these groups from reporting those donations (and expenditures) for 13 days before the election. Other campaigns and political action committees are required to report donations and expenditures with 48 hours in the final two weeks of a contest.
That loophole allows groups like Jersey Freedom to keep their campaign spending secret in the homestretch of the race.
In a white paper analysis published in September, interim ELEC Executive Director Joe Donohue called the new independent expenditure reporting requirements “insufficient” and recommended lowering the contribution threshold from from $7,500 to $5,000 and ending the 13-day pre-Election Day exemption.
Charlie Stile is a veteran New Jersey political columnist. For unlimited access to his unique insights into New Jersey’s political power structure and his powerful watchdog work, please subscribe or activate your digital account today.
Email: stile@northjersey.com
This article originally appeared on NorthJersey.com: NJ elections 2023: 'Phantom' South Jersey campaigns halted
