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Proposed federal deal

By Terrie Morgan-Besecker tmorgan@timesleader.com
Law & Order Reporter
Terrie Morgan-Besecker on Facebook   |   @TLTerrieMorgan on Twitter

SCRANTON – Federal prosecutors have agreed to allow a bank to sell attorney Robert Powell’s yacht – a move that could fetch the government roughly $100,000 if the vessel sells for the appraised value.

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In court papers filed Tuesday, Assistant U.S. Attorney Amy Phillips says Bank of America, the lien holder, wishes to sell the yacht because Powell has stopped making payments on the loan the bank issued for the vessel.

As of June 30, Powell owed $524,767.62 on the loan. The 56-foot, Ocean Super Sport yacht, which Powell purchased for $1.3 million in 2002, has a current appraised value of $625,000, according to the court papers.

Under the proposed agreement, which must be approved by a federal judge, the government would allow the bank to sell the yacht with the proceeds first going to pay off the lien. Any remaining money would be turned over to the IRS, which would hold the funds to pay any restitution Powell may be ordered to remit as part of his sentence on federal charges related to the Luzerne County corruption probe.

Powell pleaded guilty on July 1 to failing to report a felony and being an accessory after the fact to tax evasion.

Prosecutors say Powell paid former judges Mark Ciavarella and Michael Conahan $772,500 in kickbacks related to two juvenile detention centers Powell formerly co-owned, often disguising the payments as rental fees for docking the yacht at a condominium in Florida that was owned by the judges’ wives.

Powell contends the judges extorted the money from him – an allegation Ciavarella has publicly refuted. Regardless of the circumstances, prosecutors say Powell’s actions constituted a crime because he had a legal obligation to report the judges’ illegal activity.

Conahan and Ciavarella have also pleaded guilty to charges related to the kickback scheme and are awaiting sentencing.

Powell agreed to forfeit the yacht, dubbed “Reel Justice,” as well as a 1981 Saberline 65 jet, as part of his plea agreement. The government has not yet filed court papers seeking to seize the jet.

In asking a judge to approve the sale of the yacht, Phillips says the U.S. Attorney’s Office believes it is in the best interest of the government because it will preserve the vessel’s equity before it deteriorates further. The yacht was last known to be docked at the Castaway Marina in Jupiter, Fla., as of June 18.

The government reserves the right to withdraw its approval within 72 hours of the sale if it objects to the buyer. Bank of America has also agreed not to hold the government responsible if the yacht sells for less than the amount due on the loan.

Powell agreed to forfeit the yacht, dubbed “Reel Justice,” as well as a 1981 Saberline 65 jet, as part of his plea deal.