News

August 16, 2009

Federal probe in NEPA not over yet

Records of other public entities in region have been subpoenaed.

By Terrie Morgan-Besecker tmorgan@timesleader.com
Law & Order Reporter
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When former U.S. Attorney Martin Carlson stood before a room packed with reporters in January to announce charges against two Luzerne County judges, he stressed the investigation into corruption in Luzerne County was not over.

It was, Carlson commented, a sad day for Luzerne County. But he vowed his office would continue to vigorously investigate, to root out corruption and to hold those responsible accountable.

He wasn’t kidding.

Seven months later, it’s 11 down and counting.

On Thursday, local real estate developer Robert K. Mericle became the latest person to be charged in connection with the wide-ranging probe. He’s accused of taking part in the juvenile justice scandal that also resulted in charges against two judges and a prominent area attorney.

His arrest brings that portion of the corruption investigation one step closer to resolution as he and the other three key players – former judges Michael Conahan and Mark Ciavarella and attorney Robert Powell – have agreed to plead guilty.

But it’s clear that the work of federal prosecutors is far from over in Luzerne County.

In addition to completing the prosecution of the 11 defendants who have been charged, federal agents are continuing their probe of multiple other public entities that have been subpoenaed to provide records.

Those include: Luzerne County Community College; Wilkes-Barre Area Career and Technical Center; the Pittston Area, Wyoming Valley West and Wilkes-Barre Area school districts; the Scranton/Wilkes-Barre International Airport and the Wyoming Valley Sanitary Authority.

Investigators also are continuing to investigate allegations of bias in arbitration awards involving uninsured motorist insurance claims. The FBI in April seized 79 records from the county courthouse involving those awards.

A federal grand jury impaneled in Scranton to hear evidence of corruption also remains active. Several people with county connections recently testified before the panel, including Tom Marino, tipstaff for Judge Michael Toole; William Sharkey, former court administrator, and Greg Skrepenak, the father of commissioner Greg Skrepenak.

A source familiar with the corruption probe said agents are closing in on several more people. More arrests are expected soon.

Kickback kickoff

It all started on. Jan 26 with the announcement that Conahan and Ciavarella had agreed to plead guilty in connection with a more than $2.6 million kickback scheme tied to two juvenile centers the county utilized.

There had been some concern that the probe might falter after Carlson, who headed the investigation, resigned last week to take a position as a federal magistrate.

Acting U.S. Attorney Dennis Pfannenschmidt has done much to dispel those concerns, filing charges against three people – Mericle, Pittston Area School Board member Joseph Oliveri and Wyoming Valley Sanitary Authority employee Karen Holly – in the past two weeks.

Fred Martens, former head of the Pennsylvania Crime Commission, which investigated organized crime, credited the U.S. Attorney’s Office for the speed it’s shown in bringing charges and in obtaining guilty pleas. Of the 11 defendants charged, only one – Wilkes-Barre Area school director Brian Dunn – has not signed a plea agreement.

“They’ve obviously got some good sources who are feeding them a blueprint of where to look,” Martens said.

Martens, now a private criminal investigator, said he suspects investigators have been aided greatly by those who have already been charged, most of whom agreed to expose the wrongdoing of others as part of their plea deals.

“Once people start flipping and become a witness, everyone wants to jump on the ship and get a good deal that doesn’t involve much jail time. They’re all trying to get on the ship early before someone says ‘no more on the ship,’ ” he said.

Federal prosecutors are not the only people who have their hands full, however.

Two federal lawsuits filed against Conahan, Ciavarella, Powell, Mericle and multiple others involved in the juvenile scandal are in their infancy. The suits, filed on behalf of hundreds of juveniles, involve complex legal issues and are expected to take years to resolve.

The county court system is also dealing with the fallout of other scandals tied to Ciavarella and Conahan.

A special master appointed to review Ciavarella’s juvenile cases recommended last week that all convictions from 2003 to 2008 be vacated and that retrials be barred in all but a handful of those cases.

Senior Berks County Judge Arthur Grim based his ruling on evidence that the majority of youths who appeared before Ciavarella were not represented by an attorney, depriving them of a fair trial. The Supreme Court is now reviewing Grim’s report.

Two weeks ago, a Lehigh County judge recommended the Supreme Court overturn a $3.5 million defamation verdict against the Citizens’ Voice newspaper after determining there was evidence that Ciavarella was biased. The high court has not yet ruled on the matter.

In addition, there are at least two other cases now pending that have been sent back to Luzerne County Court for new hearings based on allegations of judicial bias in rulings issued by Ciavarella or Conahan.

In April, the Supreme Court ordered a new hearing to determine whether a $1 million verdict entered by Conahan in an invasion of privacy case filed by Linda Ferris against Asit Patel should be overturned. That case is still pending.

Just last week, the court directed Luzerne County President Judge Chester Muroski to hold a hearing to determine if there was evidence that Ciavarella was biased in a case involving a land dispute filed by Emil Malinowski.

Muroski said he plans to meet with attorneys in that case next week. A hearing date will then be scheduled.

In the interim, Muroski has taken several steps to ensure abuses under Conahan and Ciavarella don’t occur again.

The courts have revamped the uninsured motorist arbitration process and installed a new computerized system that randomly assigns cases to judges. Judge David Lupas, who now presides over juvenile court, also ensures all juveniles are fully apprised of their right to an attorney.

As the corruption investigation continues, Muroski said it would behoove others under the scrutiny of federal prosecutors to follow the county’s lead.

“Every entity involved in this has to look at itself and resolve the issues that created the problem,” he said. “We have, as best we can, addressed those areas we think allowed these travesties to occur. Every other institution is going to have to do the same thing,” Muroski said.

Last week, real estate developer Robert K. Mericle became the 11th person to be charged by federal authorities in connection with the ongoing public corruption probe.

Terrie Morgan-Besecker, a Times Leader staff writer, may be reached at 570-829-7179.

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