A New Jersey appeals court ruled that a Teaneck political activist lacks standing to sue former Republican gubernatorial candidate Steve Lonegan under the state's False Claims Act.

A three-judge Appellate Division panel, in an April 27 published decision, affirmed a ruling that William Brennan could not pursue a qui tam action against Lonegan, a former Bogota mayor known for his very conservative political stances.

In his lawsuit, Brennan alleged that Lonegan improperly received $2.7 million in matching funds from the state Election Law Enforcement Commission during the 2009 gubernatorial primary because he failed to disclose his membership in Americans for Prosperity, a conservative political action group.

It was Brennan who also sought, unsuccessfully, to push official misconduct charges on Republican Gov. Chris Christie. Brennan alleged that Christie knew about the September 2013 George Washington Bridge lane closures, leading to the Bridgegate scandal, while they were underway. Bergen County Assignment Judge Bonnie Mizdol ultimately ruled that there was no conflict of interest when the prosecutor's office refused to refer the complaint to a grand jury.

In the Lonegan case, the Appellate Division agreed with a trial judge who had ruled that Brennan lacked standing because ELEC already had investigated the allegations against Lonegan and dismissed them, and because Brennan based his claim on information that was already publicly available, specifically, ELEC reports and media reports.

“Defendant argues plaintiff's complaint is barred … because plaintiff lacks any direct knowledge of the alleged false claims and relies solely on public information,” wrote Appellate Division Judge Richard Hoffman. “We find this argument persuasive.”

Appellate Division Judges Susan Reisner and Jessica Mayer joined in the ruling.

“The record clearly shows plaintiff is not the original source of the information supporting the allegations in the complaint,” Hoffman said. “Plaintiff lacks standing because the matter raised in the complaint was publicly known, investigated, and decided before he filed his FCA complaint.”

He added that Brennan “is not permitted to use the FCA to circumvent or re-litigate a commission decision he disputes.”

Under the New Jersey Campaign Contribution and Expenditure Reporting Act, candidates seeking matching funds must state on their applications that they are not involved with issues-advocacy groups.

Lonegan allegedly failed to disclose his involvement with Americans for Prosperity. ELEC stopped giving funds to Lonegan in February 2009 after a series of media reports about the issue. After an investigation, ELEC resumed giving matching funds to Lonegan in March 2009.

Lonegan eventually lost his primary bid to Christie, who went on to win the general election and his 2013 re-election bid.

Lonegan also ran unsuccessfully for governor in 2005, and lost to Democrat Cory Booker in the 2014 campaign for U.S. Senate. He also lost to U.S. Rep. Thomas MacArthur in the Republican primary.

He currently is a candidate in the primary for this year's election for the Fifth Congressional District.

Brennan's attorney, Donald Burke, who heads a firm in Brick, said the Attorney General's Office should agree to intervene and revive the lawsuit.

“This is intended to advance the important public policy of transparency in election financing,” Burke said. “Bill Brennan, on behalf of the state of New Jersey, sought recovery of the $2.7 million in public campaign funds Lonegan received, presenting facts showing Lonegan's participation in Americans for Prosperity, an issue advocacy organization.”

Lonegan's attorney, Woodbridge solo Steve Polinsky, said the appeals court “set a clear standard for the type of knowledge necessary to support a complaint under the False Claims Act.”

“ELEC has exclusive jurisdiction over reported act violations,” Polinsky said.