News

November 21, 2009

Solicitor: Suspicious items link ex-HR head, N.Y. firms

E-mails connect Richards, who was fired, and firms probed by feds, says county solicitor.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Connections to two New York companies that are under investigation by federal agents were found in former Luzerne County human resources director Doug Richards’ e-mails, county Solicitor Vito DeLuca said Friday.

DeLuca found an Oct. 23, 2006 e-mail from Long Island-based B & M Investigations owner William Grub to Richards containing two documents – a company letterhead and a blank invoice.

DeLuca questioned why Richards would have either document. Companies normally complete invoices themselves on their company letterhead detailing the work that was performed for the county in order to receive payment.

“I’m not saying that Doug Richards completed any invoices. All I’m saying is that to me it raises suspicions as to why a vendor would send a blank invoice and blank letterhead with nothing on it,” DeLuca said.

The other questionable connection was found in an e-mail sent from Richards to county Workforce Investment Development Agency Director Richard Ammon at 10:41 a.m. on May 1, 2007, containing a copy of a contract from Continental Consultants Group.

DeLuca traced the origin of the contract document and found that it was created by Richards on April 30.

According to the e-mail, Richards told Ammon that then-county Solicitor Jim Blaum had reviewed the attached agreement. Richards instructed Ammon to sign the document and fax it to Richards’ human resources department.

“This raises a lot of questions,” DeLuca said.

DeLuca said federal investigators already have received copies of Richards’ e-mails.

Blaum could not be reached for comment Friday.

Richards was fired Wednesday for failing to answer Commissioner Maryanne Petrilla’s questions about his involvement with Continental Consultants.

Continental was hired without bids or public approval in April 2007 by the county’s Workforce Investment Development Agency to oversee temporary staff hired for a post-flood cleanup program.

Richards – it’s still unclear if he acted alone -- then started using Continental to oversee county retirees who continued to work as consultants, but that work was not bid out or publicly approved by commissioners as required.

Continental was paid $807,770 from May 2007 through July 2008, though that amount includes payments to retirees and flood workers.

Invoices for Continental Consultants filed in the controller’s office contained instructions that the company’s checks were to be delivered to Richards and, in one instance, former county employee William Maguire. Maguire is among those charged in the county corruption probe.

Checks would normally be delivered directly to the contractor or vendor.

A source said federal investigators are looking into whether Richards has a connection to Continental. Richards, who could not be reached for comment Friday, had not been charged or accused of any wrongdoing.

Continental Consultants was incorporated a month before Richards sent the contract to Ammon.

New York State corporation records for B & M and Continental list the same mailing address – the law firm of Miller, Apfel & Curran in Hauppauge, N.Y. Firm representative Dennis Apfel said Thursday that the firm assisted a client in setting up the corporations, but the firm has no connection to the companies and should not be identified as a mailing address.

B & M was hired by commissioners to perform background checks on employees, but the contract also allowed a $35,000 payment for a yet-to-be-found report on pre-employment procedure recommendations.

B & M President William Grub signed the contract.

A man named William Grub is security director at The Manhattan Club, a timeshare residence located between Broadway and Seventh Avenue. It’s unclear if this is the same person. He has not returned messages left at the timeshare and B & M on Wednesday and Thursday.

County Commissioner Greg Skrepenak and other county officials – including Richards – stayed at The Manhattan Club in 2006 and 2007 on trips funded by county taxpayers.

Skrepenak said Friday that the city trips were to study crime-fighting strategies and computer records systems.

Skrepenak said he met Grub through Maguire but did not know that Grub was connected to B & M.

The commissioner also said he played no role in selecting Continental and knew of no connection between Richards and that company.

B & M was paid $55,000 from January 2006 through October 2007, records show.

Attempts to reach Continental Consultants Group have been unsuccessful. The current occupants of New York addresses listed by the company deny any knowledge of or connection to the company.

DeLuca said he also has obtained copies of Continental’s cashed checks, which were on file in the treasurer’s office. However, the signatures on the checks are illegible, he said. He does not know if the county has authority to obtain the name of the person who holds the Bank of America account in which the funds were sometimes deposited. Federal authorities would have that authority, he said.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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