Rendell's Abuse of Taxpayer Dollars To Solidify Political Base

The Pennsylvania Independent published a story about Ed Rendell distributing a disproportionate amount of Redevelopment Assistance Capital Program (RACP) funding to the City of Philadelphia.

Philadelphia County received $109.5 million in RACP funds for 12 projects, a little more than a third of the total funding doled out in the bill signed yesterday by Mr. Rendell, including $10 million for the Sen. Arlen Specter Library at Philadelphia University. Mr. Specter, who served as Philadelphia District Attorney from 1965 until 1974, was Mr. Rendell’s first employer.

“I think that’s been this governor’s mode of operation,” said state Rep. Daryl Metcalfe (R – Butler). “Dole out the goodies from Harrisburg that he can grab a hold of for his base, for the Philadelphia area especially.”

The Legal Intelligencer penned this story about the Feds appeal of the light sentence imposed on former Senator Vince Fumo after his conviction in what amounts to one of the worst corruption cases in Pennsylvania.

Weighing in at 281 pages and more than 53,000 words, the appellate brief filed by the Justice Department on Thursday to challenge the leniency of the 55-month sentence imposed on former state Sen. Vincent Fumo is like a Harry Potter novel for the judiciary -- highly anticipated, loaded with entertaining vocabulary, and chock full of talk about darkness and wicked ways.

What are the similarities between these two stories? Here is more information from the appeal by the Feds in the Fumo Case.

"The corruption exposed in this case was breathtaking," they wrote.

Fumo was a 30-year member of the Pennsylvania Senate, they wrote, who "used his control of a well-funded Senate committee and of a nonprofit organization he created and supported (Citizens Alliance), as well as his influence over another nonprofit institution, to support a lavish lifestyle and illegally amass political power."

The brief says Fumo used funds and resources of the Senate and of the nonprofit organizations "to provide him with staffers who served his every whim, from running political campaigns, to aiding his personal business ventures, to attending to his needs at the five homes he maintained."

Fumo used the funds of Citizens Alliance "for political purposes, and to acquire over $1 million of luxury vehicles, merchandise, farm equipment, and myriad other items," the brief says, noting that Buckwalter calculated more than $2 million in losses from Fumo's crimes when "in actuality, the loss was at least double that."

And "just as strikingly," the prosecutors wrote, "once the federal investigation began, Fumo embarked on a determined effort to obstruct justice, directing his public employees to destroy extensive computer evidence of his crimes."

In a previous post I highlighted the Ogontz Avenue Revitalization Corp, the tax-exempt, taxpayer-supported nonprofit group founded by State Rep. Dwight Evans, chairman of the all-powerful House Appropriations Committee and the waste of $1 million in Pennsylvania taxpayer's money on a jazz festival.

From Eachus's office Brett Marcy this comment back on May 09, 2010.

"We have worked hard to trim costs and find ways to improve efficiencies," said Brett Marcy, press secretary to House Majority Leader Todd Eachus, D-Luzerne.

Over at the Capitol Wire With John Micek he quotes House Majority Leader Todd Eachus about the budget:

"This is a responsible budget, and it's a win for Pennsylvania taxpayers. It holds the line on state taxes and it keeps our commitment to invest appropriately in our children's education and protect our local property tax payers from having to shoulder more of the burden for funding our schools."

How he can make that claim with the obvious waste of taxpayer money is beyond me.

Leighton And The Volunteers of America

Back in 2006 Tom Leighton was caught up in a real estate transaction involving the Volunteers of America. The organization purchased a building from North River Associates and Robert E. Marsh where Leighton's real estate business garnered a $51,500 commission. Luzerne County Commissioner Steve Urban questioned the transaction but Leighton dismissed his concerns as "pure politics" because Urban's wife was running against Leighton.

From the Wilkes Barre Politicial Scene archive

The problem is, according to Urban noted in an article in Aug 21 Times Leader, that the Mayor's Realty Company--CA Lehighton Real Estate--received $51,500 in commissions when the building was purchased in August 2006 from North River Associates and Robert E. Marsh, Jr. Urban noted that there is a clause from county procedures that are supposed to be followed in all federally funded community development projects. The clause lists those who cannot have an interest--direct or indirect--in these projects. This includes any member of a governing body of the locality in which the program is situated. Urban interprets this to mean the Mayor of Wilkes-Barre.

County officials disputed Urban's claims saying that Lehighton is not covered by this clause as it is a county project.

Say what you want but Urban is on to something here. This blog has been on the record many months ago asking the lazy and Lehighton friendly press to look at Lehighton's real estate dealings during his mayorality. They have not done so and will not because the local press walks in lock step with Chamber of Commerce and Lehighton does their bidding which makes him their darling.

Leighton tries to defend himself that is recounted in a document on the Mayor's campaign website.

Leighton said he is mayor “24 hours a day, seven days a week. I don’t spend any time at my business during regular business hours. I have people working for me that handle that.” Mr. Leighton, if you are a mayor 24/7 exactly when are your business hours? Last time I checked our calendar doesn't provide for more than 24/7. Do you have posted hours for the Mayor's office or are you like your friends in Luzerne County who make them up as they go along?

The Mayor made many pronouncements that he was above reproach in this deal. Again from the Mayor's campaign website.

Luzerne County appropriated a $500,000 Community Development Block Grant from HUD and obtained a $400,000 grant from HUD for the project. The county also obtained a $425,000 grant from the state Department of Community and Economic Development to fund
renovations.

The mayor said the real estate commission went to his office and proceeds were used to pay staff or other business-related expenses.

“The bottom line is my integrity and ethical upbringing would have forced me to walk away if something was inappropriate,” Leighton said Monday. “If something had been wrong, I would have never have been involved.”

The third entry from his Mayoral campaign website.

But Leighton and county Community Development Director Andy Reilly say there was no impropriety because the city had no oversight or involvement in the project.

Leighton believes Urban is trying to drum up a negative report about him because Leighton is running against Urban’s wife, Linda Stets, in November.

Leighton, a Democrat, is a first-term mayor running against Stets, who garnered the Republican nomination.

“I’m an honest guy, and I value my integrity and ethics,” Leighton said. “It’s pure politics so he can advance his wife’s candidacy. Let’s face it.”

Mayor Leighton do you have some 'splainin to do? Using your words that "It's pure politics" please justify this donation listed
in this Winter 2007-2008 brochure from the Volunteers of America.

Pacesetters -
$1,000 to $2,499
Angeline Elizabeth Kirby Memorial
Health Center
The Bergman Foundation
The Black Horse Foundation, Inc.
Committee To Elect Tom Leighton <--------

You weren't trying to play politics with that donation were you?

Why isn't that donation from your real estate firm if the transaction with Volunteers of America had nothing to do with city business or your official capacity as Mayor? Basically you kept the money that came from the taxpayers for your own business use but used political campaign money to donate back to the organization that your real estate firm participated with in a private transaction. And you don't see a potential conflict of interest in any of this?

According to this 2008 2nd Friday Pre-Election campaign finance committee report you gave Ed Rendell $5,000.00 from your committee. This same report lists the donation to Volunteers of America for $1,000.00 on page 22 dated 05/13/2008.

In the interest of clearing up this matter why didn't you donate the entire proceeds back to Volunteers of America? Too cheap huh? Evidently politicians are worth more than volunteers in your eyes. What's that Tom? Your actions are so loud I can't hear what you are saying.

Leighton lost the arbitration award case which amounts to about $13,000.00 per Wilkes Barre firefighter but he defends a payment to his real estate firm for $51,500. Maybe the firefighters should consider a real estate career.

Kanjorski PAC Gives To Leighton

Steve Urbanski at the Scranton Public Policy Examiner is reporting that Paul Kanjorski gave Tom Leighton $20,000.00 through his Citizens For Action PAC.

Lewis Wetzel Donated To Paul Kanjorski

Judge Lewis Wetzel
On March 16, 2010 Attorney Lewis Wetzel as unaminmously confirmed by the Pennsylvania Senate to assume a judgeship on the Luzerne County Court of Common Pleas.

In this article written by Andrew Seder of the Times Leader Senator Lisa Baker was quoted regarding Attorney Lewis's qualifications and integrity.

Baker told the committee that “Gov. Rendell has nominated two individuals with extensive experience, quality credentials and the proper justice-first approach required during these unusual and unsettling times. Each is committed to restoring the reputation of the Luzerne County Court, rather than enhancing their personal reputation. Neither is positioning for a next life in electoral politics.”

“Given the depth and breadth of the appalling wrongdoing revealed, community trust in the basic integrity and fairness of judges will be hard to re-establish. Their willingness to serve is commendable; their enthusiasm for the undertaking is encouraging. We have had an extremely painful reminder that the fair administration of justice is not a sure thing. Securing justice takes effort on the part of many, but it clearly depends most of all on ethical judges.”

The ink wasn't dry on that article before Wetzel made a quiet political donation. According to a Federal Election Commission filing by Pennsylvanians For Kanjorski Attorney Wetzel made a donation to the campaign of Paul Kanjorski in the amount of $500.00 on March 18, 2010 found on page 19.

Lewis was sworn in as judge the very next day. In this Times-Tribune article the author writes Afterward, Judge Wetzel said he had been disheartened by questions involving corruption charges - such as, "Are you next?" - and said it will take time for the court to restore its image.
"I seriously think it will take my two years and then maybe then some to make people feel all is well with the court," he said. Doesn't it seem odd that right before he is sworn in Wetzel feels the need to make a donation to Paul Kanjorski just under the wire?

Although Judge Wetzel was not a judge at the time of the donation, its timing seems to be suspect. If Attorney Wetzel was truly engaged to restore the court's image does he honestly believe that his action shows a step in the right direction?

Canon 7. Judges should refrain from political activity inappropriate to their judicial office.

(1) A judge or a candidate for election to judicial office should not:
(c) solicit funds for or pay an assessment or make a contribution to a political organization or candidate

Strictly speaking Attorney Wetzel was not a candidate in the sense he had to run for office but he certainly was a nominee for a position on the court. The reasoning for the first prohibition would probably be difficult to divorce from the second situation.

Your honor, with all due respect, it will take much longer when "Politics As Usual" prevails on the bench. One has to wonder whether Judge Burke would support this action on his watch.

One more question, your honor. If a Republican comes before your bench against a Democrat are you willing to recuse yourself due to an apparent bias toward one party?

Leighton's Campaign Finances- Ethical Issues

The Times Leader ran an article about donations from Marvin Slomowitz and William Rinaldi in reference to the dredge project in Hazleton. For some unknown reason reporter Andrew Seder brought State Rep. John Yudicahk into the donation picture without doing a similar look at Wilkes Barre Mayor Tom Leighton. Of course those on the inside know that Rep. Todd Eachus and Congressman Paul Kanjorski are supporting Leighton's efforts against Yudichak in the Senate race to replace retiring Senator Ray Musto's seat.

A look at Leighton's campaign finance records on the Luzerne County website reveals some interesting information.

Within the 6th Tuesday Pre-Election Campaign Finance Report the following donations bring up some curious questions. Diamond Manufacturing Company is listed as a $400.00 donor on 06/246/2009 found on page 16. Diamond Manufacturing is listed as a corporation on the state's Corporation Bureau. Pennsylvania prohibits direct corporate donations to campaigns.

In the 2nd Friday Pre-Election CFR in 2008 West Side Hammer Electric Inc, another corporate donor, of Bethlehem is listed as a donor in the amount of $300.00 on 07/09/2008.

Seder failed to point out Marvin Slomovitz's donation to Leighton on 05/27/2009 in the amount of $300.00 found on page 12.

Falzone Realty is listed with a donation of $300.00 on 03/27/2009 (and 06/12/2008) found on page 12 but a search for that entity failed to produce any results on the Corporate Bureau, Department of State licensing or Switchboard.com.

Oddly enough Falzone Towing Service, Inc., another Pennsylvania corporation, is listed at the address, 365 Pierce Street, Kingston, on the CFR and the Corporate Bureau. Since there is no listing at the Department of State for a realtor there seems to be a huge question about the validity of that donation.

Kane for District Justice is listed as a donor on page 10 in the total amount of $500.00 listed as $300.00 on 06/11/2009 and $200.00 on 06/29/2009. According to the Judicial Cannon 7 District Justices are not permitted to engage in political activity of this type. (1) A judge or a candidate for election to judicial office should not: (c) solicit funds for or pay an assessment or make a contribution to a political organization or candidate.

Robert Mericle gave a $300.00 donation on 06/10/2009 listed on page 19 and was charged by the U.S. Attorney's office on 08/13/2009. It had been common knowledge that Mr. Mericle was Participant No. 2 in a complaint filed by the U.S. Attorney on January 31, 2009 in the Luzerne County corruption scandal. Why did Tom Leighton accept the donation and why wasn't it returned?

On the in-kind contributions list are donations from Rodano's Restaurant and Patt Patte. If you read this Legal Opinion from the Chief Counsel of the Pennsylvania Liquor Control Board gift certificates awarded as prizes must be for food only, as the awarding of gift certificates that include alcoholic beverages would be prohibited for the reasons provided in response to your first question. Was there a disclaimer on those gift certificates?

In the 2nd Pre-Primary 2008 CFR Leighton lists a loan to himself from the campaign on 01/17/2008 in the amount of $2,000.00 found on page 6. He repays the loan back to the campaign on 04/01/2008 found on page 5. Loans to committees are permissable but loans from a campaign committee to oneself is another question.

In the 2nd Friday Pre-Election CFR from 2008 the report lists a fee for a bounced check on 07/25/2008 found on page 25.

One suspects Leighton felt comfortable with his reports and didn't anticipate Ray Musto's retirement or the scrutiny his candidacy would cause.

The FBI Removes Items From Senator Musto's Home

Unlike the veteran reporters who are writing about the FBI's visit to Senator Ray Musto's home in Pittston Township SOP will not say that "evidence" was removed from the premises. As far as we know there was no crime committed at the residence. The most that should be responsibly said is that "items" were removed from the residence in accordance with the provisions of the search warrant.

In this article from the Times Leader the caption under the photograph reads FBI agents carry plastic garbage bags of evidence they gathered Thursday during a search of state Sen. Ray Musto’s Pittston Township house and cars. Another article that appeared in the Citizen's Voice reads State Sen. Raphael Musto said he sat on his back porch and "enjoyed the sun" Thursday as federal agents spent more than two hours searching his Pittston Township home, removing three trash bags of evidence from the house and a satellite radio from his car.

At best the agents removed articles of interest that will be appropriately processed to see if they support the commission of a crime. In law, evidence are various things presented in court for the purpose of proving or disproving a matter brought before it for judgement. Evidence includes testimony, documents, photographs, maps and video tapes. Items can be excluded or stricken which is not evidence.

Musto said the agents contacted him at his Pittston district office about a half-hour before they arrived at his home. He said he had no prior contact with the agents beforeThursday. Speculation abounds over the search but the fact of the matter is not one person other than the agents really know why they executed the visit.

Somewhere in the near future we may glean the probable cause that justified the issuance of the search warrant. According to Wikipedia:
The most well-known definition of probable cause is "a reasonable belief that a person has committed a crime".[1] Another common definition is "a reasonable amount of suspicion, supported by circumstances sufficiently strong to justify a prudent and cautious person's belief that certain facts are probably true".[2]

In either case probable cause is a long way from actual charges. To date Senator Musto has not been charged by any authority. Only time will play out the scenes in this drama to reveal the need for the search to the public.

Senator Ray Musto To Retire

Ray Musto Citizen's Voice Photo
In a surprise move Senator Ray Musto is retiring from the Senate after 40 years of service to his constituents in the 14th Senate district according to the Times Leader. His term expires in 2010.

You can read more from Senator Musto's press release by clicking here.

"For many years, my wife and family have had to endure long periods when I've been away from home in Harrisburg and they did so without complaint," Musto said.

The veteran lawmaker served in the state House from 1971 to 1980. He began his career when he was elected in a special election in 1971 to fill his late father James Musto's unexpired term. Musto was then elected to Congress in a special election in 1980. In 1982, he was elected to the state Senate. Musto has the distinction of being among only a few public servants to serve in the U.S.Congress, the state House and state Senate.

"My father was an inspiration to me and still is to this day," Musto said. "He taught me the value of hard work, good friends and that in public service you don't have to dislike others because you disagree with them."

"It is my hope that the result of my long years of service is that the northeast and all Pennsylvania will be a better place to live, work and raise a family," Musto said. "I could not have served as long as I have without the support of a loving family, a dedicated and professional staff both in Harrisburg and the district as well as colleagues who listened and appreciated my efforts."