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July 1, 2009

Powell pleads guilty to 2 charges in federal court

Attorney Robert Powell pleaded guilty to charges of accessory after the fact and misprision of a felony this morning at the William J. Nealon Federal Building and U.S. Courthouse in Scranton.

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Hazleton attorney Robert Powell is followed by the media as he leaves Federal Court in Scranton on Wednesday after he pleaded guilty to charges he failed to report a felony and after-the-fact tax conspiracy.

Don Carey / The Times Leader

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The charges stem from a plea agreement filed in June where Powell acknowledged he knew that former Luzerne County judges Michael Conahan and Mark Ciavarella were committing crimes, but he failed to report those activities, as required by law, to federal authorities.

He further admits he helped Conahan and Ciavarella conceal their crimes by creating false records designed to disguise the source of kickbacks he and another person have admitted paying the judges. Those actions included transferring tens of thousands of dollars in cash to Conahan so that the money could not be traced.

When Powell is sentenced, he faces up to 5 1/2 years for each offense and fines up to $500,000.

Powell has agreed to forfeit his 2002 yacht, “Reel Justice,” and a 1981 Saberline 65 corporate jet as part of the plea agreement.
While acknowledging Powell’s actions constituted a crime, his attorney, Mark B. Sheppard of Philadelphia, continued to insist on June 9 that Powell was more a victim than participant in the judicial corruption scandal.

Sheppard had spoken out on Powell’s behalf in February, issuing a press release that lambasted Conahan and Ciavarella, as well as media coverage he said unfairly portrayed Powell. Sheppard stood by his comments on June 9.

“I think Bob Powell was partly a victim here but he’s also aware he’s criminally responsible,” Sheppard said. “He gave into an extortion attempt. He should have reported it, but he didn’t. That’s why he’s pleading guilty.”

Conahan and Ciavarella pleaded guilty on Feb. 12 to depriving the public of their honest services and tax evasion. Federal prosecutors say Powell was one of two people who paid more than $2.6 million to the judges in exchange for rulings that benefited the Pa Child Care and Western Pa Child Care juvenile detention facilities, which were co-owned by Powell and Gregory Zappala.

Powell last year sold his interest to Zappala, who is not accused of any wrongdoing.

Prosecutors have not identified the second person who paid the kickbacks, but information contained in the charges against the judges indirectly identify him as local developer Robert Mericle.

Mericle, who built the two juvenile centers in question, has not been charged with any crime.

See Wednesday's edition of The Times Leader and timesleader.com to read the complete story.








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