"In the best interests of my family, I am choosing to withdraw as commissioner," Kushner said in a prepared statement. "The allegations aired in the press are baseless, and counsel has repeatedly confirmed my compliance with the law.

"I have too much respect and admiration for [Gov. McGreevey] to have these issues surround him, particularly at a time when consensus is needed in our state to deal with tough problems," the statement continued. "The Port Authority faces too many important goals and decisions to be distracted by the political nonsense and bickering generated by local partisan politics."

The legal problems that forced Kushner's hand include a suit, filed last year, by his brother and former business partner Murray Kushner, who heads the Bridgewater, NJ-based Schenkman Kushner Affiliates, charging misappropriation of funds. And late last year, Kushner Cos.' former chief accountant Robert Yontef filed a separate suit with the same allegations, and also charging wrongful termination and age discrimination. Yontef had been fired by Charles Kushner after providing testimony in support of Murray Kushner's earlier suit.

More recently, Charles Kushner's political contributions--he has given millions of dollars to the campaigns of McGreevey and others--have come under scrutiny based on questions of whether he owns more than 50% of Norcrown Bank. State law bars campaign donations by anyone who owns more than 50% of any banking institution.

Kushner's ascendance to the PA chairmanship was also called into question by state Sen. Bill Gormley (R-Atlantic County), who has sought subpoena power to force Kushner to testify before the Senate Judiciary Committee. And the resignation comes as the state attorney general's has launched an investigation into the campaign contribution matter.

McGreevey, who is a Democrat, has quickly announced his nomination of attorney Anthony R. Coscia of the law firm of Windels Marx Lane & Mittendorf to replace Kushner on the PA board and, by extension to be new next chairman. Coscia has also served as the chairman of the New Jersey EDA for the past decade.

"Mr. Kushner is among the most exceptional individuals I have ever had the honor of knowing and calling friend," McGreevey said in his own written statement. "Regrettably, [he] has made this decision to withdraw due to concerns regarding a private family financial matter, and I must respect that decision."