Cooper health system stands by George Norcross and two other indicted board members, while the nurses’ union stays silent

Cooper University Health Care, Camden’s largest employer, is standing by George E. Norcross III, the chair of the health system’s board of trustees, and two other board members who were indicted last week on racketeering charges, according to an email to Cooper staff obtained by The Inquirer.

The indictments were announced June 17 by the New Jersey Attorney General’s Office.

The Norcross family has decades-long ties to the nonprofit health system, which is anchored by a 635-bed teaching hospital in Camden and employs more than 8,500. Norcross’ father, the late union leader George Norcross Jr., was on Cooper’s board in the 1970s and ‘80s. Norcross himself has been on the board since 1990. Philip Norcross, a Mount Laurel-based attorney and George Norcross’ brother, is the chair of the Cooper Foundation, the health system’s philanthropic arm.

Cooper is not accused of wrongdoing, but its real estate is central to the racketeering indictment. Prosecutors allege that Norcross, a towering figure in South Jersey politics, and his allies used their influence to corruptly acquire tax credits and real estate that was intended to develop the Camden waterfront. Others indicted include Cooper board members Philip Norcross and Sidney Brown, CEO of NFI, a trucking and logistics company.

“All the individuals charged have emphatically denied any wrongdoing,” co-CEOs Kevin O’Dowd and Anthony Mazzarelli said in the June 18 staff note.

Cooper’s growth was central to Norcross’ vision for improving Camden by creating jobs for local residents as well as enticing professionals to move to the city.

During Norcross’ tenure as Cooper board chairman, the health system partnered with Texas’ MD Anderson Cancer Center to open a specialty facility in Camden and with Rowan University to open a Cooper-affiliated medical school.

But Norcross’ dealings with Cooper are also at the heart of the criminal charges. A transaction at the heart of the case involves Cooper’s headquarters.

The indictment alleges that Norcross and his allies strong-armed a local nonprofit out of a deal to buy the L3 building in 2013, steering the sale instead to an investor group they preferred. Cooper Health later gained a 49% ownership stake in 575,000-square-foot office complex on Federal Street, entitling it to nearly half the profits earned from its other tenants.

Cooper won $27 million in tax credits from the purchase between 2016 and 2022, then sold the tax credit for $25 million — enough to cover the system’s $3.8 million annual rental cost.

While Cooper was a party to a real estate transaction that is scrutinized in the indictment, neither the health system itself or any of its employees has been charged with a crime, O’Dowd and Mazzarelli who share leadership responsibilities at Cooper as co-CEOs, wrote to staff.

» READ MORE: George Norcross’ power: Real or imagined? Prosecutors highlight his reputation for hardball.

Echoing statements from Norcross’ lawyer, the co-CEOs said that law enforcement agencies have already reviewed Cooper’s receipt of tax credit from L3.

“None of those entities have ever accused Cooper of wrongdoing,” O’Dowd and Mazzarelli said.

In their note to Cooper employees, the CEOs call George Norcross, Philip Norcross and Sidney Brown “dedicated members” of the Cooper board and “longtime supporters of Cooper and prominent community leaders in the South Jersey region.”

Cooper said in a statement to The Inquirer that the Norcross family has supported the university for more than five decades.

“The presumption of innocence is a fundamental American principle of justice,” the statement said. “Accordingly, all members of the Cooper Board of Trustees will continue to serve in their current capacity.”

Staff working at Cooper were reluctant to speak to the media about the indictment outside of Cooper University Hospital on Friday.

The Health & Professional Allied Employees union, which represents 13,000 health-care workers in New Jersey including 1,500 nurses at Cooper, did not respond to a request for comment on the Norcross indictment.