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Gold bars in baggies and cash crammed in boots: Prosecutors detail Menendez's hoarded riches • New Jersey Monitor

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Gold bars in baggies and cash crammed in boots: Prosecutors detail Menendez's hoarded riches • New Jersey Monitor


Peek into Sen. Bob Menendez’s closets and basement, and you’ll learn he’s secretly a slob, with his and his wife’s belongings strewn around as if a typhoon just blew through.

But in 2022, that chaos hid something worse, federal prosecutors said Thursday — proof of his corruption. Jammed into jackets and boots and crammed into bags and boxes were 13 gold bars and $486,461 in cash, the fruits of five years of bribes New Jersey’s senior senator and his wife took from three businessmen hungry for Menendez’s influence, prosecutors said.

On the fourth day of the Democratic senator’s corruption trial in Manhattan, prosecutor Lara Pomerantz spent several hours chronicling the cash, gold, and other items FBI agents found during a June 16, 2022, search of the couple’s Englewood Cliffs home.

Aristotelis Kougemitros, the FBI special agent who led the search, narrated photos of the senator’s home and its hoarded riches, and Pomerantz gave the confiscated cash and gold, sealed in evidence bags, to jurors for inspection.

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Investigators found so much money in envelopes — banded together in stacks or loose in bags — that they quit photographing it and Kougemitros called for backup, he testified. Two agents arrived with an automated cash counter.

“The sheer volume of bills that we encountered was too much to count by hand,” he said.

Thursday, Pomerantz and Kougemitros took so long to list all the loot investigators found around the Menendezes’ split-level home that U.S. District Judge Sidney H. Stein stood up to stretch his legs.

Menendez lawyer Avi Weitzman had told jurors on Wednesday that the senator’s wife, Nadine, took the cash, gold, and other bribes without her husband’s knowledge and stashed much of it in her deadbolted closet and the locked safe inside it.

The senator had a habit of keeping cash at home, rooted in his experience as the son of immigrants who fled Cuba with nothing, Weitzman added. Check the money’s date, he told jurors, saying they were older bills long out of circulation that would prove Menendez collected them over decades.

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On Thursday, Pomerantz clearly sought to deflate that defense. She showed seized stacks of hundred-dollar bills with April 2022 dates stamped on the bank’s band. She told jurors most of the money was found packed into pockets of the senator’s coats and in bags in the commonly accessible basement.

The closet in question became a point of debate, with Kougemitros insisting investigators found Menendez’s navy blazer and men’s ties hanging inside the closet, suggesting it was a shared space.

But Adam Fee, a Menendez attorney, pushed back on cross-examination, countering that the blazer was hanging on the back of the master bedroom door, not inside the closet, which he said was Nadine’s alone.

The men’s ties? They belonged to a teenager who used to live in the home, Fee said, pointing to the skulls and cheese-eating mice dotting several ties. Nadine Menendez had two children from a previous marriage, including a son named Andre.

Fee asked Kougemitros if he’d ever seen the senator wear such sassy ties.

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“In fairness, I haven’t really studied photos of Senator Menendez wearing ties,” Kougemitros responded.

In court, Menendez’s ties have leaned patriotic, every day a different variation of red and blue.

Cash aside, all the gold bars the FBI seized were found in the closet, Fee said. Whoever put them there didn’t worry about their storage, photos showed. One was wrapped in a paper towel, shoved in a Ziploc bag, and left on the floor beneath other detritus.

Beyond the cash, gold bars, jewelry, air purifier, and fitness machine the couple allegedly accepted as bribes, the FBI’s photos show the couple liked luxury brands, with bags branded Prada, Giorgio Armani, Burberry, and more making appearances in the pictures.

Menendez listened to the testimony without much of a reaction, occasionally resting his cheek in his palm.

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Criminalizing friendship?

Before Pomerantz called Kougemitros as the case’s first witness, the attorneys for Menendez’s two co-defendants — Wael “Will” Hana and Fred Daibes — delivered their opening statements.

Hana is an Egyptian-American businessman and longtime friend of Nadine Menendez who prosecutors say bribed the couple with gold and cash to help him gain a monopoly on exporting halal meat to Egypt, free up military arms and aid to Egypt, and supply sensitive U.S. government information to Egyptian officials.

Daibes is an Edgewater real estate developer who prosecutors say gave Menendez gold and cash to disrupt a bank fraud investigation into him by the U.S. Attorney’s Office in New Jersey and help him land a lucrative investment from a member of Qatar’s royal family.

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Attorney Lawrence Lustberg, who represents Hana, told jurors prosecutors were making innocent actions look sinister by criminalizing friendships, commercial success, and advocating for one’s homeland.

Hana had been close friends with Nadine Menendez for 15 years and gave her gifts out of friendship, Lustberg said. Gold is a gift people particularly from the Middle East like to give, he added.

“Will’s gifts got nicer as his business succeeded,” Lustberg said.

Prosecutors say Hana also gave Nadine Menendez a low- or no-show job at his meat exporting business as a bribe. Lustberg conceded Hana paid her three $10,000 checks to help him set up operations in other countries as his business expanded. But she didn’t do the work, so “he fired her,” he added.

“Ask yourself – is this what a briber does?” Lustberg said.

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Attorney Cesar de Castro, who represents Daibes, echoed Lustberg’s sentiment, saying prosecutors were “sensationalizing” gift-giving. This is the argument Menendez and his friend and co-defendant, Salomon Melgen, made during their 2017 corruption trial, which ended in a hung jury.

“Investing in precious metals like gold is normal and common … gold is even sold at Costco,” de Castro said. “There’s nothing criminal about being generous.”

Fee is expected to resume his cross examination of Kougemitros Friday. Prosecutors have indicated they plan to call an FBI agent to testify Monday to talk about Menendez’s actions in Egypt.

A cancer diagnosis

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While Menendez treks to Manhattan daily to fight his second corruption case in the past decade, his wife has been home battling a medical crisis that prompted Stein to postpone her trial to at least July.

Thursday, as de Castro was defending Daibes, Menendez’s Senate staff sent out a statement revealing that Nadine Menendez has stage III breast cancer and needs a mastectomy, follow-up surgery, and possibly radiation treatment.

In the statement, Menendez said his wife decided to ask him to disclose her medical condition “as a result of constant press inquiries and reporters following my wife.”

“We are of course, concerned about the seriousness and advanced stage of the disease,” he said in the statement. “We hope and pray for the best results. We ask the press and the public to give her the time, space and privacy to deal with this challenging health condition as she undergoes surgery and recovery.”

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New Jersey to Use AI to Score Standardized Writing Tests

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New Jersey to Use AI to Score Standardized Writing Tests


(TNS) — Artificial intelligence will be used to score most of the writing New Jersey students do on the new statewide standardized tests set to debut this spring, state education officials said.

The AI system will be used to grade student essays and short answers on the English Language Arts section of the statewide exams, according to a state-approved testing proposal. The “artificial intelligence” will be trained using scores generated by human scorers on practice tests that were given to students in October and November.

New Jersey is debuting a new type of state tests — called the New Jersey Student Learning Assessments-Adaptive — this spring. It will be given to students in grades 3 through 10 to test their knowledge of English, math and science.


There will also be a new version of the state’s high school exit exam for high school juniors, now called the New Jersey Graduation Proficiency Assessment-Adaptive.

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Like the previous version of the test, known as the NJSLA, the exams will be given via computer. But the new version will be “adaptive,” meaning students will get different questions based on their previous answers on the exam — a practice that is supposed to make scoring the tests more precise.

The AI system will be used to score the essays and written questions, but there will still be some human scorers, state Department of Education Spokesperson Michael Yaple said.

If a student’s written response is identified as “unusual” or “borderline” it will be “flagged for human review,” Yaple said.

“The system regularly conducts quality assurance checks to ensure that the scores assigned by the automated scoring engine match human scores through strict quality controls,” he added.

Cambium, the company overseeing the new tests, does not use generative AI — the version of artificial intelligence used in ChatGPT-type platforms that can create something new and are known to sometimes hallucinate false or inaccurate information, Yaple said.

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Instead, the automated scoring system will have strict parameters “with proven consistency, and human scoring remains the foundation of the process, validating accuracy at multiple checkpoints throughout the scoring workflow,” state education officials said in a statement.

Computerized scoring of New Jersey’s state tests is nothing new. Last year, about 90 percent of student essays on the NJSLA and the state high school exit exams were scored solely by an automated scoring system, Yaple said.

But some educators have concerns about the extensive use of AI to grade the new version of the tests that will eventually be taken by nearly all of New Jersey’s 1.3 million public school students.

Using a version of AI to score student writing is risky, said Steve Beatty, president of the New Jersey Education Association, the state’s largest teachers union.

He said he would hate to see “some student fail on a computer-graded test only to find out later on that there was some sort of error.”

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The NJEA is against high stakes testing in general, Beatty said. But if the tests are going to continue “then we want trained educators — humans — doing” the scoring.

If a student fails the AI-scored sections of the exams, there should be a plan to have the writing reassessed by a human, he said.

“They should go back to a person to be verified,” Beatty said.

NEW TESTING CONTRACT

New Jersey students will begin taking the new NJSLA-Adaptive exams during a month-long testing window between April 27 and May 29. The tests are usually given over several consecutive days.

The testing window for the new NJGPA-Adaptive high school exit exam for high school juniors will be from March 16 to April 1, according to a state Department of Education testing schedule.

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The new statewide NJSLA and NJGPA tests were developed by Cambium Assessment, a company that won a $58.7 million, two-year contract with the state.

According to the Cambium proposal, Measurement Incorporated, a company located in Durham, North Carolina, will be responsible for providing and training the people who will do the human “handscoring” when AI-generated essay and written response scores are flagged for review.

In its proposal to the state, Cambium said the company assumes “25 percent of the overall responses will be routed for trained handscoring.”

New Jersey officials said AI was not used to create test items on the new version of the tests and artificial intelligence will not be used to determine which questions students see on the adaptive assessments.

Jeffrey Hauger, who served as director of assessments for the state Department of Education from 2010 to 2018, said New Jersey has a long history of using computers to help score the written portion of state tests. He later worked as an adviser to Pearson, the company that previously had the contract to provide the state NJSLA tests.

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Around 2016, Hauger said the state started implementing a system that used one human and one automated scorer to assess each piece of student writing.

If a large discrepancy between the two scores was found, the essay would be read by a second human, he said.

“It was a tool for efficiency, but the human was always involved throughout the process back then,” Hauger said.

AI scoring is now more sophisticated, he said.

“Technology has improved. And so, it’s not as big of a leap now as maybe people think it is,” Hauger said.

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During Gov. Phil Murphy’s time in office, the department started relying more on automated scoring and moving away from having each piece of writing evaluated by both a machine and a human, he said.

FLAGGING PROBLEMS

AI scoring has been controversial in other states.

In Massachusetts, AI grading errors were blamed for 1,400 incorrect scores on the state’s Massachusetts Comprehensive Assessment System, known as the MCAS, last year.

In Texas, several districts questioned whether AI grading was fair on its statewide tests in recent years.

The Dallas Independent School District has challenged thousands of AI generated essay scores on Texas’ statewide STAAR standardized tests over the past two years.

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Cambium and Pearson, the companies involved in New Jersey’s testing, both contributed to Texas’ standardized testing system.

In 2024, the Dallas school district asked the state to rescore 4,600 tests, sending them to the state to be rescored by humans.

About 44 percent of the rescored tests came back with higher scores after a human read them, said Jacob Cortez, Dallas’ assistant superintendent in charge of evaluation and assessment.

The district also sent thousands of AI-scored tests for rescoring last year and nearly 40 percent came back with higher scores from humans, the district said.

The accuracy rate for the AI-scored third grade tests was the most troubling, with 85 percent of those sent back showing an improved score when humans read the students’ work.

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“That is not okay,” Cortez said.

The Dallas school district, which serves about 139,000 students, limited the number of tests it sent back for rescoring because it had to pay $50 for each test that did not receive an improved score, local officials said.

Cambium officials did not respond to requests for comment about the Dallas accuracy issues or the company’s AI scoring practices.

New Jersey officials declined to comment on questions about AI scoring accuracy in other states.

“New Jersey cannot comment on another state’s assessment and scoring process,” Yaple said.

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Lily Laux, New Jersey’s new commissioner of education, also did not respond to a request to comment. In her previous job as Texas’ deputy commissioner of school programs, she helped design the state’s standardized testing system, according to her LinkedIn profile.

The problems with AI scoring in Dallas raise questions about the system, said Scott Marion, principal learning associate at the Center for Assessment, a nonprofit, nonpartisan consulting firm.

“Is it not being trained well? Is it not being trained on a diverse enough population?” Marion asked.

AI scoring makes financial sense but states also need to be careful not to overly rely on it, he said. He’s comfortable with about 80 percent AI-scored writing because systems still need human backups.

“We’ve been doing this for so long,” he said referring to the use of AI to score student writing.

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Many students, teachers and parents may be surprised to know how much of writing in school is already scored by AI, education advocates said.

Many “parents have no idea this is a thing,” said Julie Borst, executive director of community organizing for Save Our Schools New Jersey, a statewide advocacy group.

She is concerned that students with unique writing styles might end up with lower scores on tests because AI is looking for specific words and phrases or a standard number of sentences for top scores.

Borst, whose organization has long-opposed high stakes standardized testing, said in the end, it will still be up to teachers to know where students are doing well and where they are struggling.

“The teacher is going to know where those weaknesses are. They’re going to know where those strengths lie,” she said. “You cannot tell that — at the student level — from a standardized test.”

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©2026 Advance Local Media LLC. Distributed by Tribune Content Agency, LLC.





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NJ’s new budget is coming. How will state finances affect your taxes?

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NJ’s new budget is coming. How will state finances affect your taxes?



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Gov. Mikie Sherrill is set to present her first state budget proposal in a Tuesday, March 10, address to the New Jersey Legislature. It’s clear the proposal will make some hard choices as state finances face major headwinds.

Late last month, Sherrill said her budget plan will include some “tough choices” because of the looming uncertainty of a structural deficit for state finances.

The governor explained that if projections stay on the current path, the state would have a structural deficit of about $3 billion by the end of June, when her proposed budget would be in the final stages of negotiations with the Legislature.

Uncertainty due to federal funding cuts, along with the end of pandemic relief funding, has already forced Sherrill to consider all of her options when crafting her plan for New Jersey’s fiscal year 2027.

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The governor wouldn’t give particulars about what to expect in her upcoming fiscal plan but instead said she is “setting the table so people can anticipate that this is going to be a tough budget season.”

What does a structural deficit mean for New Jersey taxpayers?

A structural deficit, simply put, means New Jersey spends more than it earns.

Among the costliest tax relief programs in the state’s history, Stay NJ was introduced legislatively in the run-up to the fiscal year 2024 budget and received funding for three years without paying anything out.

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The first Stay NJ checks are being sent out to qualifying New Jersey seniors, but the accumulated $1.2 billion covers only the first six months of the program for this year. Roughly $900 million will need to be added to the line item in Sherrill’s first fiscal plan to maintain the program.

The law that created Stay NJ requires full pension payments, full school funding payments and a surplus of at least 12% to be built into the budget as prerequisites for funding the program. The surplus was not 12% when the budget was signed during the last two years, but budget language allowed for a work-around.

Sherrill would not commit to requiring the prerequisites before she would be willing to sign a budget bill in late June.

Increasing costs for the State Health Benefits Program, which is already a contentious topic, could also be a concern for the new governor, as payments are about $2 billion annually and the 10% increase needed in this year’s budget added more than $180 million.

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How does New Jersey’s budget process work?

New Jersey’s $58.8 billion budget for fiscal year 2026 is the largest in history and is set to expire at the end of June.

The plan for fiscal year 2027 — which will run from July 1, 2026, through June 30, 2027 — is a major factor in how New Jersey state government will function by dictating which state departments and programs are funded.

After Sherrill’s address in March, her proposed spending and revenue plan will be analyzed and shaped in the Legislature through the spring. Negotiations will heat up as the current fiscal year winds to a close in June. If the budget cycle is normal, a final budget bill will land on Sherrill’s desk hours before the current fiscal year ends at 11:59 p.m. on June 30.

Though it would be unlikely — given Democratic control of both chambers of the Legislature and the governor’s office — in the event the budget bill does not get signed, state government shuts down. There have been two shutdowns in state history: for 10 days in 2006 and three days in 2017.

Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com

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Woman fatally struck by NJ Transit train in Ramsey

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Woman fatally struck by NJ Transit train in Ramsey


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A woman was fatally struck by a train in Ramsey on the morning of March 8.

The unidentified woman was hit by the train at 10:49 a.m., just west of the Main Street crossing near the main Ramsey station, said John Chartier, director of media relations for NJ Transit.

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Rail service was suspended in both directions between Allendale and Port Jervis but has since resumed, with delays of up to 30 minutes.

The train came from Port Jervis and was heading to Hoboken, and 150 people were on board at the time, Chartier said.

NJ Transit police are leading the investigation. No additional information about the circumstances of the death was available.



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