The CEO of one of the nation’s leading privatized military housing companies has taken a leave of absence after being indicted by a New Jersey grand jury on racketeering charges unrelated to military properties.
The Michaels Organization announced June 18 that CEO John O’Donnell has temporarily resigned from his position in Monday’s filing “to focus on vigorously defending himself against allegations.” Military Times could not reach O’Donnell for further comment.
The Michaels Organization has been one of the Department of Defense’s privatized housing partners since 2004 and currently owns and manages more than 18,000 housing units in 11 installations across the country. Military housing is just one part of the residential real estate industry, which serves more than 200,000 residents in more than 600 communities in 39 states, the District of Columbia and the Virgin Islands.
O’Donnell, 61, of Newtown, Pennsylvania, is one of six co-defendants named in the indictment and charged with first-degree racketeering. The indictment alleges that through a criminal enterprise run by George Norcross III and his associates, the defendants committed unlawful acts to acquire property and ownership rights to New Jersey’s Camden waterfront, collected millions of dollars in government-issued tax credits, and “controlled and influenced government officials to advance the interests of the corporation,” 2012.
The indictment describes George Norcross as a member of the Democratic National Committee, the former chairman of the Camden County Democratic Committee, chairman of the board of trustees of Cooper University Health Care and executive chairman of the insurance company Conner Strong & Buckelew.
Dana Redd, who served as mayor of Camden from 2010 to 2018, is also named as a defendant.
“This indictment clearly demonstrates how a group of unelected, private businessmen used their power and influence to influence the government to support their criminal enterprise and advance its interests,” said New Jersey Attorney General Matthew Platkin , when the charges were announced. “The alleged conduct of the Norcross Company has caused great harm to individuals, businesses, non-profit organizations, the people of the State of New Jersey, and especially the City of Camden and its residents.”
The indictment does not name The Michaels Organization as being sued. The properties at the center of the allegations are two buildings along Camden’s waterfront: an office tower and a market-rate apartment building. O’Donnell is also a partner in the groups that own these Camden buildings. According to the indictment, Michaels built the residential building.
As of 2023, The Michaels Organization had received $12.6 million in tax benefits from New Jersey, which it sold for $11.6 million. From 2013 to 2023, O’Donnell received approximately $11.3 million in wages from The Michaels Organization, where he held a series of leadership positions, according to the indictment.
It is unclear whether the allegations could impact the company as a whole.
First-degree racketeering carries a penalty of 10 to 20 years in prison and, in New Jersey, a fine of up to $200,000. According to the indictment, the state plans to seek additional financial penalties, including the forfeiture of proceeds from criminal activities.
The 111-page, 13-count indictment was the result of a lengthy criminal investigation led by the New Jersey Attorney General’s office, with support from the FBI’s Newark and Philadelphia field offices, the New Jersey State Police and others .
The suspects’ arraignment is scheduled for July 9.
Mark Morgan, who has been with Michaels for more than 35 years, most recently as chief operating officer, has assumed the role of CEO, the company said. All business operations at Michaels will continue as normal, officials said in a news release.
“John O’Donnell has been a trusted colleague and industry leader for more than 30 years and has the full support of our organization during this difficult time,” Morgan said in the press release.
