After nearly four years of investigations into the Connecticut Port Authority, Attorney General Tong has announced the conclusion of a whistleblower investigation conducted by his office.
Tong’s office released a report on Thursday announcing they uncovered violations of the Code of Ethics for Public Officials and Code of Ethics for Lobbyists, but nothing illegal.
The investigation found significant deficiencies in the management and oversight of the Connecticut Port Authority, including a lack of financial controls and accountability. The investigation also revealed that the Port Authority engaged in questionable contracting practices with Seabury Securities.
The Attorney General’s office investigation solidified what was already known: Seabury Securities and an employee of the company gave gifts to a Connecticut Port Authority staffer as an incentive for the Port Authority to do business with them.
Auditors first received allegations from a whistleblower in January 2020 regarding potential improper and unethical conduct by Port Authority employees, board members, and a Seabury contractor.
In April 2020, the Connecticut Auditors of Public Accounts reviewed the allegations and reported the findings to the Office of the Attorney General, which launched an investigation.
Tong’s office conducted interviews and reviewed over 223,000 pages of records as part of the initial investigation.
Seabury’s Henry W. Juan III had a conflict of interest as he was both a Port Authority Board member and an Officer, Managing Director, and employee of Seabury.
“The investigation developed evidence of several potential violations of Code of Ethics, which were referred to the Office of State Ethics and Office of the Chief State’s Attorney,” the press release stated. “Those referrals formed the basis of four enforcement actions by the Office of State Ethics, including two against Seabury, and actions against former Port Authority Board Member and Seabury employee Henry W. Juan III, and former Port Authority employee Andrew Lavigne.”
The Connecticut Port Authority issued a statement on Thursday saying the public should have confidence in them because of its operations in more recent years.
“While the Connecticut Port Authority has no comment regarding the Attorney General’s press release, the CPA is proud of the professional administration of its policies, procedures, and financial management over the past few years, which should give the public confidence that the foundation for success is in place,” the statement said.
The Connecticut Port Authority has been scrutinized for its handling of various projects, including the State Pier redevelopment project in New London which has seen a price tag increase from $93 to more than $350 million. The investigation led by Attorney General Tong shed light on the potential issues within the organization that may have impacted the Port Authority’s operations and decision-making process.
“While the investigation did not develop evidence of illegal conduct for which the OAG has enforcement authority, we stand ready to implement and utilize our enforcement jurisdiction whenever violations of law giving rise to that authority occurs,” Tong states in the report.
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