Birdsall Settles With NJ Attorney General's Office

A settlement between Birdsall Services Group and State Division of Criminal Justice was reached on Monday afternoon for what was called a "civil forfeiture action," a press release from Attorney General Jeffrey S. Chiesa said. 

According to the settlement Birdsall will pay the state a total of $2.6 million including $2.5 million in forfeiture and $100,000 to cover the state's attorneys fees in the bankruptcy action.

Most of the funding for the payment will come from "the cash surrender of certain 'key man' life insurance policies," from officers and former officers who are under indictment, according to the release. The remainder will come from cash on hand.

Birdsall will also set up a $1 million fund that will be used to pay up to that amount in fines, penalties and restitution from the criminal action.

"Through this settlement, the state has gained a substantial sum in civil forfeiture from Birdsall and has secured its right to seek significant additional criminal penalties," Chiesa said in the release. "At the same time, Birdsall can continue to operate, to perform its contracts and to pay its employees.

"Our goal has consistently been to punish the guilty and protect the state's interests, without needlessly harming innocent employees or those doing business with the firm."

Elie Honig, the Director of the Division of Criminal Justice added, "As a result of extensive negotiations, which continued throughout the weekend, we have achieved a settlement that preserves the state's rights under its criminal and civial actions against Birdsall, while enabling the company to remain in business."

Last month indictments were handed up against former CEO Howard C. Birdsall and six other current and former executives for violating the state's Pay-to-Play Act.