Bryant verdict clouds pensions

One of the fraud allegations lodged against former state Sen. Wayne R. Bryant had never been considered a crime in New Jersey until 12 jurors convicted him of it Tuesday.

During the trial, prosecutors said Bryant had applied for state pension benefits for work he hadn't performed. As an attorney for the Gloucester County Board of Social Services, he sent young associates from his law firm to cover his duties at child-support and other hearings.

Bryant's defense vigorously pointed out that no law said he couldn't do that. And prosecutors admitted they weren't sure they could make the case.

The defense "had some very strong arguments on the pension because there was no prohibition," First Assistant U.S. Attorney Ralph Marra said, "but I think we were absolutely confident that the jury would use common sense. . . . Shouldn't a guy like Wayne Bryant know what he's doing is wrong?"

The pension fraud was the smallest aspect of the case against Bryant, a Camden County Democrat who was convicted on 12 counts, most of them for selling his political influence to an employer.

Prosecutors said he could face up to 15 years in prison at his sentencing, scheduled for March.

But the jury's decision on the pension fraud could have the biggest impact.

Testimony revealed that at least three other attorneys have applied for state pension benefits for work they farmed out to associates, and at least two other attorneys for the social services board occasionally had associates cover for them.

After Bryant was convicted, U.S. Attorney Christopher J. Christie said the case had "woken up" the state pension board.

"There are a lot of people who will be looking at these applications with a lot more scrutiny," he said.

Christie urged anyone who had already claimed pension benefits for work others had performed to "contact the pension board voluntarily."

"If you did it in the serial way that Wayne Bryant did, you should go to the pension board and make good on it now," he said.

The state Division of Pensions and Benefits "routinely . . . acts on information that comes to its attention" about those applying for benefits, and even seeks out information about service, spokesman Tom Vincz said.

There are "several active and ongoing investigations" into benefits that people have claimed, but he said he could not comment further.

Bryant applied for his pension at the end of 2006, but his application was shelved due to the criminal investigation, already under way.

Once the board has all the information from the criminal case, it will give Bryant's pension an "honorable service review" set out in state statutes, Vincz said, but he couldn't predict the outcome.

Christie said Bryant could be credited for years of service before the criminal activity began, which could be determined to be 2002. In 2001, Bryant's pension was worth $31,000 annually. In 2006, his pension would have been worth $81,000.

Bryant was an attorney for the social services board from 1996 until 2006. The board has since been dissolved and its duties taken over by the county government.

From 2002 to late 2006, Bryant worked fewer than 15 hours for the board, while his associates logged more than 3,800 hours.

The issue of lawyers farming out their public work came up in 2006 when a bipartisan legislative committee was considering changes in the pension system.

Frederick Beaver, the director of the Division of Pensions and Benefits, complained to lawmakers about the practice, calling it an abuse of the system.

The committee recommended excluding professionals, such as lawyers who contract with municipalities and other public bodies, from the state retirement system, and the recommendation was adopted. As of Feb. 1, professional-service contractors were no longer eligible for a pension.

"The intent of the pension system was to benefit . . . career public employees," said Assemblywoman Nellie Pou (D., Passaic), who sat on the commission. "It was clear there were abuses in the system."

But no one called it a crime until federal prosecutors did so in the Bryant trial.

Although jurors agreed, the defense most likely will appeal.

The presiding judge also must issue her written ruling on defense motions to find Bryant not guilty.

Those motions are standard practice at the conclusion of the government's case.

District Judge Freda Wolfson did not signal a willingness to acquit, but she did wonder aloud about the pension charge.

"We have issues here as to whether this is a crime or something else," she said.