Former Aide Alleges Fulop Planned to Invest Pension Funds in Cryptocurrency

Former Aide Alleges Fulop Planned to Invest Pension Funds in Cryptocurrency

Jersey City attorneys are seeking to dismiss new allegations in a lawsuit filed by Jonathan Gomez Noriega, a former aide to Mayor Steve Fulop. Gomez Noriega claims he was terminated after raising concerns about Fulop’s purported intention to invest city retirement funds in cryptocurrency. The lawsuit, which originated following Gomez Noriega’s dismissal last year amid controversy surrounding his sister’s political campaign in Missouri, now includes fresh accusations of “improper” conduct by the mayor.

Allegations of Retaliation and Ethical Concerns

Gomez Noriega asserts that his firing was retaliatory, linked to his whistleblowing on Fulop’s “unilateral” announcement to allocate pension funds into cryptocurrency investments without notifying the retirement system’s oversight board. He further alleges that Fulop and a super PAC supporting his unsuccessful gubernatorial campaign received $77,000 in donations from the vice president of a cryptocurrency trading platform. These contributions, Gomez Noriega suggests, may violate state ethics laws and compromise the mayor’s impartiality.

In response, Fulop’s legal team and city attorneys have dismissed these claims as “entirely threadbare and implausible.” In a detailed 65-page court filing, they argue that the actions described do not qualify as protected whistleblowing. They contend that Fulop’s announcement was limited to updating paperwork to permit potential investments in Bitcoin funds, rather than committing city funds to cryptocurrency. The defense also emphasizes that the political donations cited were made over an eight-year period and that no evidence exists to suggest corrupt influence.

Legal Proceedings and Broader Implications

The federal judge overseeing the case previously dismissed four of the original six counts in April but permitted Gomez Noriega to amend his complaint. The ongoing litigation underscores the broader challenges public officials face when considering cryptocurrency investments, including regulatory scrutiny, public backlash, and reputational risks. Allegations of this nature can provoke market reactions, such as diminished political endorsements or intensified examination of Fulop’s credibility. Political rivals may also leverage the controversy to distance themselves from cryptocurrency-related issues or to bolster lobbying efforts aimed at influencing regulatory frameworks.

The inherent volatility of the cryptocurrency market further complicates the situation. Recent data indicates a 10.44% increase in NFT sales volume, driven by rising Bitcoin and Ethereum prices, highlighting both the potential rewards and risks associated with digital asset investments.

Political Context and Current Status

Mayor Fulop, a Democrat, maintains that Gomez Noriega’s termination was solely due to his support for his sister Valentina Gomez’s “controversial political campaign.” Valentina Gomez, noted for her anti-LGBTQ+ rhetoric and criticism of undocumented immigrants, was defeated in her Missouri election last year and is currently pursuing a House seat in Texas.

An attorney representing Gomez Noriega has not yet responded to requests for comment. The case remains active as the court evaluates whether the new allegations merit further legal proceedings.