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memo b6 RE: b7C The article entitled uThe Outcast" by a staff reporter of "The Wall Street Journal" indicated that Detective JamesXChallender aueuubgsse oa' aodooae woxg passaxeoad pey aottor saeas"Kosaer Man aua J0 as a Detective with the prestigious major crimes unit and was responsible for cracking a number of big cases./In May, l97l, he determined that a check for $l,500 made out by a Butchers' union official to the l969 gubernatorial campaign of williamXcahill was cashed at the Garden. State Race Track and that hundrods of thousands of dollars of similart/ checks were cashed at the same Race Track, which happens to be owned/ by Eugene Mori, the son-in-law (and general manager of the track) of Joseph McCrane, whom/Goyernor Cahill appointed State Treasurer after the l969 election. Most of the checks came from contractors, engineers. and others who did business with the state. Detective Challender turned over his evidence to his superiors, but nothing was done. In February,. 1973, he was abruptly reassigned to menial turnpike duty. He requested. -Tasnaet uonadnnnon aya og buguaddey sem aeym pue paanagsueaa aem ay Ayy gation but, according to the article, Mr. Kelly never responded. took the documents Detective Challender had photocopied and preserved and instituted a Grand Jury proceeding. As a result, numerous indict- ments of state officials were handed down and most of them pleaded guilty or were convicted. The majority of the convictions related to tax fraud matters. Detective Challender considered the indictments a vindication of himself, but the Attorney General of New Jersey contended that Challender had violated regulations by going outside *. the State Police with this complaint and that his action was unwarranted. and unproductive. He indicated that the State had been investigating these campaign contributions in conjunction with the Internal Revenue Service but the U. S. Attorney, Mr. Stern, stated there had been no !. active state investigation in connection with the IRs. Detective Challender hoped that his situation would improve with the new Attorney General in January, l974, but it did not. The article concludes by. stating that in the heat of pubiicity over complaints by New Jersey. State Troopers and the Challender matter, the New Jersey State Police Superintendent resigned and took a job as head of security for A & P (Atlantic and Pacific Tea Company). Bufiles contain no information to amplify the article. The. Newark Office has been contacted regarding this matter and reported. b6 that Senator has a vendetta against Superintendent Kelly and b7C others involved in this matter. He has spent considerable time and effort in keeping the matter before the public. RECOMMENDATION - OVER