Joseph C. Salema

Joseph C. Salema is the former Chief of Staff to New Jersey Governor James Florio, a position he held from 1990 to 1993. Salema resigned in the Spring of 1993 amid intensifying media scrutiny during an investigation of illegal misconduct while serving the State of New Jersey.

He lives in Wenonah, New Jersey and is the married father of two children.

Armacon Securities Scandal Prior to becoming the Governor's Chief of Staff in 1990, Salema joined in a partnership with longtime friend and associate, Nicholas Rudi, within the Armacon Securities firm. Seven months after being named Governor James Florio's Chief of Staff, Salema engaged in a blind trust with Armacon Securities, in what was later speculated to be an attempt to conceal a personal interest.

Investigation In 1990, Mark Fitterman, the Associate Director of the U.S. Securities and Exchange Commission's Market Regulation division, led the investigation into whether the Merrill Lynch investment bank took part in an illegal pay to play scheme in the sale of $2.9 billion in New Jersey Turnpike bonds.

In the three years that Joseph Salema served as the Governor's Chief of Staff, Armacon Securities received over one million dollars in underwriting fees while lacking the necessities a firm would require to operate as an underwriter. Salema and his legal representation denied being the subject of the federal inquiry, claiming the resignation was a measure to spare Governor James Florio further political embarrassment.

Salema pleaded guilty to the federal charge of sharing in more than $200,000 in kickbacks. In August 1995, he was sentenced to six months in a halfway house and six months of home confinement. Salema was also fined $10,000 and required to serve 1,400 hours of community service. (His Armacon Securities partner, Nicholas Rudi, was later acquitted of all federal charges after going to trial in June 1996).