Report: SEC Launches Probe Into Port Authority Financial Books
NEW YORK (CBSNewYork/AP) -- Yet another agency is taking a closer look at the financial books of the Port Authority of New York and New Jersey, according to a published report.
As WCBS 880's Ginny Kosola reported Thursday, the Securities and Exchange Commission has launched an investigation into the Port Authority, according to the Bergen Record.
The probe is said to involve the diversion of $1.8 billion to pay for New Jersey road projects, including the Pulaski Skyway upgrade.
The SEC is said to be probing whether investors and bondholders were misled, the newspaper reported.
A Port Authority document said the Port Authority and people "related" to the agency has received several subpoenas – including some from the U.S. Attorney in New Jersey and the Manhattan District Attorney's office, the newspaper reported.
The Port Authority has also come under scrutiny from state and federal authorities in the wake of a scandal over lane closings at the George Washington Bridge last fall that were orchestrated by a Port Authority official.
Adding to the agency's potential problems, Manhattan District Attorney Cyrus Vance has reportedly began investigating the relationship between New Jersey Gov. Christie's administration and the Port Authority.
Vance's office has issued a subpoena for documents related to several projects, including the rebuilding of the World Trade Center and nearly $2 billion in road construction contracts, according to reports. The Pulaski Skyway, which is undergoing a two-year rehabilitation, is among the projects being scrutinized.
The DA's office is particularly interested in the voting records of Christie-appointed Port Authority commissioners and potential conflicts of interest, sources said.
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