Port Security Conference

April 21 2003

Feds probe ferry operator
The New York Times reported last week that Federal authorities are investigating allegations that New York Waterways defrauded the federal government of hundreds of thousands of dollars in the aftermath of the Sept. 11 attack, according to investigators involved in the case.

The story reports investigators as saying they are looking into whether New York Waterway submitted inflated bills to the Port Authority of New York and New Jersey for ferry services it provided to replace the commuter rail link between New Jersey and Lower Manhattan that was destroyed by the 9/11 terror attack.

According to the Times,, two investigators from the Inspector General's Office for the Port Authority served a seven-page federal subpoena at New York Waterway's headquarters in Weehawken, N.J. The subpoena demanded that the company provide all business records, internal memos, e-mail messages and credit card receipts relating to ferry operations financed by FEMA through the Port Authority.

In response to questions about the investigation, says the Times, New York Waterway issued a statement saying that it "was cooperating fully with the Justice Department in an inquiry concerning ferry service in the New York harbor. We are confident that this inquiry will confirm our good work."

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