News

August 1, 2008

Pa. House Dems spend $1.4M on bonus probe

Numbers include $618,000 to about a dozen lawyers and about $800,000 to a D.C. firm.

MARK SCOLFORO Associated Press Writer

HARRISBURG — The state House Democratic caucus disclosed Thursday that it has paid lawyers and consultants more than $1.4 million in public money for help responding to an investigation into whether government funds and resources were illegally used for political campaigns.

The figures obtained by The Associated Press include $618,000 the caucus has paid so far to about a dozen lawyers who represented more than 135 caucus employees and a small number of Democratic state representatives.

The caucus also has paid about $800,000 to Chadwick Associates Inc., a Washington, D.C., firm that is helping it respond to the attorney general’s investigation.

“We understand that this is a substantial expenditure of public funds, but we believe strongly that it was entirely appropriate under the circumstances to facilitate the truthful cooperation of the caucus’ staff with the attorney general’s investigation,” said Bill Chadwick, a lawyer and president of the firm that bears his name.

Caucus employees approached by investigators or subpoenaed could seek representation by contacting Bill Sloane, the caucus’ chief counsel and compliance and ethics director. Sloane, Chadwick and another lawyer worked together to determine which lawyer to provide.

Chadwick said the outside lawyers were selected, in part, for a willingness to be cooperative with the attorney general’s office, a “rapport” with state prosecutors and relevant expertise.

Caucus records show payments to 13 lawyers or law firms. The largest recipient was the Philadelphia firm Conrad, O’Brien, Gellman & Rohn, which has received $320,000.

Billing records show lawyers were paid to review documents and press accounts, attend meetings and legal proceedings and make phone calls. They were reimbursed for meals, travel and other expenses. Hourly rates varied considerably, in some cases reaching $400.

Conrad, O’Brien chairman Jim Rohn said the firm represented about 45 current and former caucus employees “and took them through the process of cooperating with the government and telling the truth.” He declined to identify the employees.

Earlier this month, 12 people associated with the House Democratic caucus were charged with theft, conflict of interest and conspiracy. Defendants include former Whip Mike Veon, current Rep. Sean Ramaley, the former chief of staff to Majority Leader Bill DeWeese and other high-ranking caucus employees. All the charged employees are either suspended without pay or were forced out in November.

At the heart of the case are allegations that legislative employees were paid bonuses for campaign work, often on state time, and that public equipment and contracts were used for electioneering purposes. A hearing is scheduled for October.

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