CAMDEN, NJ — Indicted political powerbroker George E. Norcross III and two of his co-defendants will remain on Cooper Health’s Board of Trustees after being accused of a corruption scheme that brought the health network millions.
Norcross chairs Cooper University Health Care’s Board of Trustees. His brother, Philip, and Sidney Brown are board members. They were among six people charged last month with first-degree racketeering and various financial crimes.
George Norcross and his co-defendants used their political influence to push a nonprofit out of purchasing a Camden development, which Norcross eyed as a possible location for Cooper Health offices, according to a 111-page indictment. Members of the so-called “Norcross Enterprise” threatened the nonprofit CEO into a deal that allowed George Norcross’s chosen developer to purchase the building at a discounted price available to the nonprofit.
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As a result, Cooper Health obtained more than $27 million in tax credit from 2016-22, the indictment says.
For the time being, Cooper Health’s board will remain unchanged, said Wendy A. Marano, a Cooper Health spokesperson.
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“The Norcross family — George and Phil and before them their father — has collectively supported and helped lead Cooper for more than five decades,” Marano told Patch, “and their work is part of the reason why Cooper today is the leading academic and tertiary care health system in South Jersey and recognized as a top-performing regional hospital by U.S. News & World Report.
“The presumption of innocence is a fundamental American principle of justice. Accordingly, all members of the Cooper Board of Trustees will continue to serve in their current capacity.”
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Despite the indictment, George Norcross remains a face of Cooper Health administration, publicly commenting Monday on the health network’s acquisition of Cape Regional Health System.
A state court judge in Cape May County approved the merger on May 28 — about two weeks before three Cooper board members were indicted. The deal became official on Monday.
“We are ready to move forward and for our unified team to begin delivering the highest level of advanced health care to more people in shore communities and beyond,” Norcross said in a news release. “We are excited by the opportunity to build something extraordinary here.”
Since the indictment was unsealed June 17, several members of the “Norcross Enterprise” have lost board positions — both voluntarily and involuntarily. John O’Donnell, CEO of The Michaels Organization, took a leave of absence from the residential-housing developer to focus on fighting the charges.
A judge has removed William Tambussi from Rutgers University’s Board of Governors. The university’s faculty union sued to remove Tambussi from the post earlier this year, stating that he could no longer serve his position, which required Camden County residency. The union renewed their calls for Tambussi’s removal after he was indicted.
Norcross has long been considered one of the most powerful people in state politics, despite never holding elected office. For decades, he held significant sway over local Democratic parties and fundraising throughout New Jersey through a political machine that originated in Camden County.
The indictment accuses Norcross and allies of using their political influence to craft legislation tailored to his enterprise’s interests. Then, they corruptly obtained lucrative waterfront real estate in Camden, threatening and extorting victims who got in their way. Through those properties, they obtained millions of dollars in government-issued tax credits, authorities said.
Norcross has denied wrongdoing.
The scheme largely benefitted Cooper Health and insurance firm Conner, Strong & Buckelew, where Norcross is executive chair, the indictment says.
A decade ago, Norcross learned that a Camden nonprofit redevelopment organization sought to purchase the L3 complex, located near the city waterfront. Norcross saw the property as a possible site for Cooper offices, so he and his allies intervened to force the nonprofit to partner with the Norcross Enterprise’s chosen developer, the indictment says.
Before learning that the nonprofit’s prior agreement of sale, the Norcross Enterprise brought in the Camden Mayor’s office. The city office told the nonprofit’s leaders to regularly meet with Philip Norcross so he could monitor their organization.
Philip Norcross pushed the nonprofit’s CEO away from their chosen developer, implying that the organization would suffer repercussions if it didn’t use the Norcross Enterprise’s chosen developer, according to the indictment. The victim CEO was aware of the financial repercussions after the founder’s past disputes with George Norcross. With Philip Norcross advising the CEO that his job was in jeopardy, the nonprofit agreed to use the Norcross Enterprise’s chosen developer, losing out on millions, the indictment says.
In 2014, the nonprofit received about $125,000 for its rights to the L3 Complex, while Cooper Health obtained more than $27 million in tax credits from the building, authorities said.
Three years later, the Norcross Enterprise sought to remove the nonprofit’s CEO through threats to his reputation and economic harm. To do this, the CEO of the Cooper Foundation, which Philip Norcross chaired, was named as co-chair of the organization. The co-chair — unnamed in the indictment — threatened the CEO with termination and damage to his reputation if he didn’t resign, according to court documents.
After the victim resigned, the Norcross Enterprise replaced the CEO with a former university board CEO. Former Camden Mayor Dana Redd, a co-defendant, was then appointed to the university position, the indictment alleges.
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