News

November 10, 2009

Feds may question Ciavarella home sale

Under certain circumstances, government could challenge the sale, a lawyer says.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Former Luzerne County judge Mark Ciavarella’s daughter has put her Kingston townhouse on the market, raising questions about whether federal authorities will have an interest in the transaction.

Federal prosecutors noted in a September court hearing that Ciavarella, who faces corruption charges, transferred a “large sum” of money to his daughter, Lauren, in 2008. She then purchased a townhome in Kingston with her husband. Ciavarella and his wife reside there with Lauren and her husband. The prosecutors were concerned about depleting assets.

Ciavarella’s attorney, William Ruzzo, defended Ciavarella’s transfer of money to his daughter at the court hearing, indicating that Ciavarella made the transfer because she was getting married and wanted to purchase a home. Ruzzo also noted that prosecutors were aware of the transaction and that nothing was hidden.

William Costopoulos, a veteran defense attorney from Harrisburg, said the government would have to prove that “ill-gotten” money was tied up in the property – and that Lauren knew the money was “ill-gotten” – to prevent her from selling or to claim the proceeds.

“If the federal government can show that ill-gotten proceeds were transferred to his daughter and the purpose was to protect those monies, then the federal government would have a right to try to prevent the sale or to try to seize the proceeds of the sale,” Costopoulos said.

Lauren could challenge the government, which would mean a court would determine who prevails, he said.

“It’s not just a matter of the government simply prevailing, there are many issues involved here,” Costopoulos said.

Attorney Al Flora, who represents Ciavarella, said Monday that he was not aware of the property being sold, but he said the property belongs to Lauren and her husband.

“It’s her house and that’s it. She has a right to do what she wants with it,” Flora said.

Heidi Havens, spokeswoman for the U.S. Attorney’s Office, said the office would not comment on the matter.

The Rutter Avenue property is listed at $285,000.

The deed shows Lauren Ciavarella and Brian Stahl purchased the property for $225,000 in July 2008.

The couple obtained two mortgages on the property, according to the county Recorder of Deeds office: $180,000 in July 2008 and $30,000 in October 2008.

The property is assessed at $225,000, county assessment records show.

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