Attorney admits his guilt in judge case

By Terrie Morgan-Besecker tmorgan@timesleader.comLaw & Order Reporter

SCRANTON – Four months after publicly portraying himself as the victim of extortion by two rogue judges, attorney has admitted he was a willing participant in helping the disgraced jurists conceal part of their illegal activities.

The 56-foot yacht, ‘Reel Justice,’ tied up at its dock at the Castaways Marina in Jupiter, Fla., in February.

The Times Leader file photo

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In a plea agreement filed Tuesday, Powell, 49, acknowledged he knew that former 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.

Powell has agreed to forfeit his 2002 yacht, “Reel Justice,” and a 1981 Saberline 65 corporate jet as part of the plea agreement. He is scheduled to enter the guilty plea in federal court at 10 a.m. June 18.

While acknowledging Powell’s actions constituted a crime, his attorney, Mark B. Sheppard of Philadelphia, continued to insist Tuesday 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 on Tuesday stood by his comments.

“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. U.S. Attorney Martin Carlson declined to comment Tuesday on whether any other arrests are forthcoming.

Prosecutors have alleged that as part of the scheme, Ciavarella, the county’s long-time juvenile judge, improperly incarcerated juveniles in the centers in order to increase its occupancy. Powell and Ciavarella have adamantly denied that allegation.

“It was clear and it will be clear at sentencing that Bob Powell played no part in and had no knowledge of any activities by any judges regarding sentencing of juveniles to any juvenile facility,” Sheppard said.

The plea agreement calls for Powell to plead guilty to failing to report a crime and to being an accessory after the fact to tax evasion for assisting the judges in concealing the fact they had filed false tax returns.

Carlson said Powell’s boat and plane will be sold, with the proceeds first going toward restitution that may be ordered to victims. The value of the watercraft and aircraft have not yet been determined, he said.

There is no agreement regarding the status of Powell’s law license. Sheppard said Powell has reported his intention to enter a guilty plea to the state’s disciplinary board. He’s now in the discussions with the board regarding the “orderly surrender” of his license, Sheppard said.

Powell signed the plea agreement in April, but it was not filed until Tuesday. Carlson said the delay was caused, in part, by other corruption investigations that have led to charges against three local school officials and two other courthouse employees, William Sharkey and Sandra Brulo.Prosecutors also reached an agreement with former Luzerne County prothonotary Jill Moran, Powell’s law partner. The agreement called for her to resign from her office and cooperate with the ongoing investigation.

Moran voluntarily informed prosecutors that people she knew tried, without her full knowledge and consent, to use her to “facilitate frauds” that deprived county residents of their “right to honest services” by those people.

Carlson said prosecutors carefully reviewed Powell’s case before deciding which charges would be filed.

“Looking at all the facts and circumstances surrounding Mr. Powell’s alleged involvement, his cooperation with authorities and his willingness to forfeit significant assets, we felt the two charges were the appropriate charges in this case,” he said.

The charges carry a maximum sentence of 5� years in prison and $500,000 in fines. Prosecutors have agreed to seek a lesser prison sentence based on Powell’s cooperation with the investigation and willingness to plead guilty.

Sheppard said sentencing guidelines call for a sentence of 21 to 27 months, but that could be further reduced if Powell continues to provide substantial assistance to prosecutors. The presiding judge, Edwin M. Kosik, is not required to follow the guidelines, however, and could impose the maximum.

Sheppard said Powell regrets his actions. That’s why he agreed to enter the plea despite the “dire” consequences.

“I don’t consider pleading guilty to two federal felonies a slap on the wrist considering the consequences to Bob Powell, which include the possible incarceration, loss of his law license and livelihood,” Sheppard said.

“This is the next step in Bob Powell’s effort to try and redeem himself,” Sheppard continued. “He admits he made a mistake, and it was a bad mistake. He has tried to rectify the mistake by cooperating with the government in the ongoing investigation. I think the government will tell you his cooperation has been exceedingly important in their efforts.”