New Jersey Review

Party leader and the debatable donation:

A Union resident who hoped to develop a vacant property in the township said he gave then-Assembly candidate Joseph Cryan $2,000 in cash as a political contribution in 2001 -- a donation not reflected in the legislator's campaign finance reports.

Cryan, now the Assembly deputy majority leader and a favorite to soon be named chairman of the state Democratic Party, denied receiving the money. He characterized his accuser, Carol Segal, 65, as a "lunatic" looking for revenge because his development plans fell through.

However, Segal's former business partner said he saw Segal hand Cryan an envelope containing 20 $100 bills during the June 20, 2001, event at the Galloping Hill Inn in Union. Louis Papale, 52, who runs a car dealership in Union, said he watched Segal count the money and place it in a worn, white envelope.

Segal, who is suing the township over his property, said Cryan invited him to the fund-raiser about a month after they met at a Clifton diner to discuss development plans for the abandoned industrial site in Union. At the time, Cryan was the township's Democratic chairman and a Union County undersheriff -- positions he still holds.

Also at the meeting, Segal said, was a prospective developer for the property, Fred Daibes, and one of his executives, Michael Crilley, as well as Papale.

Papale said Cryan was briefed on Daibes' proposal to build a 240-apartment complex on the land, which Segal was in the process of obtaining by purchasing tax liens. Both Papale and Segal said Cryan was generally supportive of the idea.

But Cryan said he has no recollection of the meeting at the Tic Toc Diner, and said he has never heard of Papale, Daibes or Crilley.

Both Segal and Papale said they were willing to sign sworn statements and submit to polygraph tests. Asked if Cryan would do the same, his attorney, Tim Donohue, said: "We will not dignify their nonsense allegations with any further comment. Both men will become aware of our full response in the very near future."

Segal, a retired chemical engineer, purchased tax liens on 11 acres in the southern end of the township known as the Schaefer Salt Co. site. By the end of 2004, he had taken deed for the property.

A year ago, township officials drafted an ordinance to designate the property a redevelopment site and "work with the property owner" to build townhouses there. But in May, when the ordinance was introduced, that language had been removed. Instead, the plan called for the township to choose its own developer and reserve the right to seize the property through eminent domain.