NEW JERSEY HAS A RACE PROBLEM The inability of Black-owned companies to access capital is a driver of the state’s economic disparity. BY HELENE FOX PHOTOS COURTESY BLUEPRINT CAPITAL
I
n compelling and heartfelt testimony before DOI, BlackRock, Owl Rock Capital Corp., CliffwaNew Jersey’s Joint Committee on Economic ter LLC, and others. An amended complaint filed in Justice and Equal Employment Opportunity, November 2020 exposed a far more pernicious and Blueprint Capital Advisors (Blueprint) CEO damning racial bias, racketeering, and fraud scheme Jacob Walthour, Jr. laid bare a troubling his- playing out in the Governor’s office and the DOI. Walthour’s legal team at Brown Rudnick LLP tory of racial animus and retaliation existing at the New Jersey Division of Investment. For the alleges that Murphy and his aides ran a quid pro second time in a year, Walthour testified before the quo system and systematically discriminated against Joint Committee. In January 2020, he detailed the Blueprint, the only Black-owned asset management “embarrassingly wide” wealth and income dispari- company in the state. The amended complaint ties in his home state. Last week, “For almost 12 years, the NJ alleges racist abuse began he courageously detailed the racist in 2015 when the DOI misabuse he and his firm experienced Divsion of Investment has not had from Governor Phil Murphy’s ad- a single African American or Latino appropriated a proprietary ministration, the Division of Ininvestment program developed by Blueprint, then vestment (DOI), and other former investment officer, and the current and current individual plaintiffs staff threatened to quit if Governor launched the exact same program with BlackRock working for the DOI. Murphy hired one.” in 2016. After being quesAppearing before the commit—Jacob Walthour tioned about the misapprotee via Zoom, Walthour noted: “There is a level of animus that exists in the Divi- priation of Blueprint’s intellectual property, the sion of Investment toward people who do not look complaint alleges, the DOI reportedly: like them. For almost 12 years, that division has not • Ignored Blueprint after allegations of fraud and had a single African American or Latino investment misappropriation were levied. officer, and the current staff threatened to quit if • Intentionally delayed Blueprint’s contract negoGovernor Murphy hired one.” tiations for 18 months. Reportedly, every other His remarks came after a tumultuous five-year fund completes the contracting phase in three battle for equity, fairness, and justice. In June 2020, to five months Walthour filed a racial discrimination, theft, and fraud lawsuit against Governor Phillip Murphy, the cont’d on page Cont'd on page 30
28
The Positive Community December 2020
www.thepositivecommunity.com