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Pennsylvania "Bonus-gate"

Pennsylvania "Bonus-gate" is the indictments of both democratic and republicanmembers of the Pennsylvania Legislature and their aides who received illegally $4 million in bonuses and allegedly used taxpayer money to create computer software programs designed to give an upper hand in elections.

In 2007, Pennsylvania Attorney General Tom Corbett began investigating $3.8 million in bonuses paid to legislative staffers in the Pennsylvania General Assembly. While the bonuses themselves are not illegal under state law, the Attorney General is investigating the possibility that the bonuses were handed out for campaign work. State law forbids state employees from performing campaign work while on the job and forbids payment for campaign work out of taxpayer funds. [1] [2]

Pennsylvania media refer to this scandal as "bonusgate." [3]

[edit] Attorney General's investigation

Critics have alleged that Attorney General Tom Corbett has tried to have it both ways as he ran two statewide campaigns — a re-election bid for attorney general in 2008 and his current campaign for governor — while prosecuting other elected officials for political activity on state time.[4] Some have said that Corbett has a double standard, engaging in the same activity of he was prosecuting. Two Bonusgate defendants filed a private criminal complaint against Corbett.[4] Corbetts' campaign spokesman said, "This is another attempt by two corrupt politicians to shift blame away from their own crimes."[4]

The House Democrats, House Republicans, Senate Democrats and Senate Republicans each have their own caucus, and the caucus hires all legislative staffers -- from party research specialists to the part-time secretary in a district office -- paid for by a lump sum of money given by the state to caucus leadership every year for the leaders then divide as they see fit.[5]

Bonuses to staffers were awarded by the four legislative caucuses in the Pennsylvania General Assembly with House Democrats handing out $2.3 million, House Republicans - $919,000, Senate Democrats - $41,000 and Senate Republicans $366,000. [6]

The investigation's early focus on the House Democratic caucus and Attorney General Corbett's 2010 gubernatorial aspirations have led to charges from that the investigation may be politically motivated.[7]

Democratic state representative Mark B. Cohen suggested an "apparent reluctance of Attorney General Tom Corbett to go after Republicans giving and getting bonuses after doing campaign work with the same zeal as Democrats..."[8]

[edit] Lawmakers and Aides

The following are the lawmakers and legislative staffers were initially charged in the scandal: [9]

  • House Minority Whip Mike Veon was arraigned on 59 counts of theft, criminal conspiracy and conflict of interest. He was found guilty of 14 criminal counts of theft, conflict of interest and conspiracy. He was found not guilty on 45 counts.[10] [11] Prosecutors argued that Veon should be made to pay nearly $2 million in restitution, the amount of taxpayer money he said Veon illegally diverted for political purposes, but the judge set his preliminary restitution amount at $100,000.[12] A judge increased his restitution amount to $1.9 million on Oct. 26, 2010.[13] Veon faces a second case in which prosecutors allege that he and co-defendant Annamarie Perretta-Rosepink misused state funds from grants to the non-profit organization they operated, Beaver Initiative for Growth.[14] Veon has pleaded not guilty to those 19 charges.[15] His second trial is set to begin on Jan. 31, 2011.[14]
  • Rep. Sean Ramaley, 33, of Economy, the Democratic nominee for a state Senate seat, faces six counts of theft, criminal conspiracy and conflict of interest.[9]
  • Brett Cott[9]
  • Earl Mosley[9]
  • Scott Brubaker[9]
  • Jennifer Brubaker[9]
  • Stephen Keefer, information technology director for the House Democratic caucus from 2002 to 2007, was acquitted on all 16 counts.[10] He wants his state job back and is suing for more than $2 million in punitive damages and back pay from state officials, attorneys and former colleagues.[16]
  • Aide Patrick J. LaVelle[9] Lavalle struck a deal with prosecutors who dropped four of the six charges against him in exchange for testimony. Lavalle pled guilty to conspiracy and conflict of interest. [17] He was sentenced to community service and probation and ordered to pay fines.[18]
  • Annamarie Perretta-Rosepink was convicted on 5 counts and acquitted of 17 counts.[10]
  • Jeff Foreman, chief counsel of Keith McCall, took $28,000 in bonuses from 2004 to 2006. He was also found working for his private firm while on state time.[19] After pleading guilty, he was sentenced to up to 23 months.[20]
  • Rachel Manzo, executive director of the House Democratic Policy Committee, was also indicted.[9]
  • House Majority Leader Bill DeWeese, D-Greene County.[9] He was ordered to stand trial on July 26, 2010.[21]
  • Sharon Rodavich, former district director for DeWeese, will also stand trial.[21]
  • Mike Manzo, former chief of staff to DeWeese.[9]
  • Former Rep. Sean Ramaley, D-Beaver, was acquitted in December 2009 of charges that he held a no-work legislative job in 2004 when he successfully ran for the House.[10]
  • Former Rep. Steve Stetler, D-York City[22] charged with theft, conflict of interest and conspiracy for allegedly employing Democratic legislative staffers to conduct opposition research work for House campaigns and other campaign assignments, and allegedly hiring a staffer in his Capitol office for political fundraising.[23] Corbett alleges Stetler, as chairman of the House Democratic Campaign Committee, directed public money and state resources towards Democratic political campaigns.[24]

The Attorney General's investigation also revealed that Republicans had used taxpayer money to create as many as a dozen computer software programs designed to give an upper hand in elections and Judge William Wenner said attorneys from the state Attorney General's Office had met the burden of proof to take the case to trial.[25] The following were ordered held for trial and Judge Wenner scheduled arraignment for July 8, 2010.[25]

  • Rep. John Perzel of Philadelphia[26] is charged with theft, conspiracy, obstruction of justice, and conflict of interest.[25] No trial date has been set.[27]
  • former state Rep. Brett O. Feese of Lycoming faces 58 criminal charges[26]
  • Jill Seaman, former secretary to former Rep. Brett O. Feese of Lycoming, faces 42 criminal charges.[26]
  • Brian Preski of Philadelphia, a former chief of staff to Mr. Perzel.[26]
  • Elmer "Al" Bowman of York County, a former Feese aide and former spokesman for the House Republican Campaign Committee.[26]
  • Samuel "Buzz" Stokes of Philadelphia, Mr. Perzel's brother-in-law and campaign manager who was purportedly a ghost employee on House payroll.[26]
  • Paul Towhey of Montgomery County, a former chief of staff to Mr. Perzel.[26]
  • Don McClintock of Voorhees, N.J.[26], Perzel's former campaign aide[28]
  • Eric Ruth of Boca Raton, Fla., Mr. Perzel's nephew and former deputy director of information technology for the House Republican caucus.[26]

[edit] Senate Republican Caucus

On January 31 2007, the Senate Republican became the first caucus to release a list of their staffers who received bonuses.[29] The next day, Senate Republicans ended the practice of giving bonuses altogether[30]

Out of sixteen Senate Republican staffers receiving bonuses, only three had worked on campaigns. [31] Mike Long, a former aide to Senate Pro Tempore Robert Jubelirer, received a $22,500 bonus in 2006 despite taking several weeks off to work on his boss's unsuccessful re-election bid.[32] Senate legal counsel Drew Crompton received a bonus of $19,647 despite working exclusively for Republican gubernatorial candidate Lynn Swann from July through October.[33] [34] Erik Arneson, chief of staff to Senator Chip Brightbill was paid $15,000 in bonus payments.[35]

On February 13 2008, Attorney General's office officially extended its investigation to the Senate Republican caucus. [36] The Senate Republicans have retained two Philadelphia law firms as legal advisers. [37]

[edit] House Democratic Caucus

Eighty of the 100 Democratic House staffers who were awarded bonuses in 2006 either donated money to or worked on the campaigns of DeWeese or his Whip, former Rep. Mike Veon.[38]

DeWeese fired seven high ranking democratic staffers who were involved in the disbursement of bonuses, including his chief of staff.[39] On November 13 2007, some of these staffers were fired after it became known that they had destroyed records that were required to be turned over to the Attorney General Corbett. [40][41] One of the fired employees, Stephen Keefer, the caucus' former information technology director, filed a wrongful termination suit alleging that he was fired to draw attention and suspicion away from the legislature.[42][43] The other fired employees were Scott Brubaker, Brett Cott, Lauren McClure, Earl Moseley, Eric Webb, and Caucus Chief of Staff, Michael Manzo.

At least fourteen staffers from the House Democratic caucus have been subpoenaed to testify before a grand jury in Harrisburg. Agents for the state Attorney General's office have also seized 20 boxes of records from the House Democratic caucus' Legislative Research Office in August. The director of that office, Jennifer Brubaker, is married to Scott Brubaker, former director of Staffing and Administration, who was among those fired in November 2007. [44]

[edit] House Republican Caucus

On October 22 2007 House Republicans received subpoenas seeking personnel records. [45] House Republican Leader Sam Smith conceded there some House Republican staffers worked for campaigns, but said they were not paid with taxpayers' money.[46]

Rep. James Perzel and nine others affiliated with the House Republican Caucus were charged after an investigation revealed that Perzel spent nearly $10 million in taxpayer money to create as many as a dozen computer software programs designed to give him and fellow GOP politicians an upper hand in elections.[25]

[edit] LaGrotta guilty plea

Former State Representative Frank LaGrotta, who was working for the House Democratic caucus after losing his 2006 re-election bid, pleaded guilty to conflict of interest charges relating to hiring his relatives for no-work jobs.[47] The scheme was uncovered during inspection of personnel documents during the bonus investigation.[48]

[edit] Cott found guilty and sentenced

Brett Cott was convicted on three charges: conflict of interest, theft of services, and conspiracy.[49] He was acquitted on 39 of 42 charges brought against him.[49] Bonusgate defendants Mike Manzo and Jeff Foreman made a deal to cooperate with the state and testified against Cott.[49]

On May 21, 2010, Dauphin County Judge Richard Lewis sentenced Cott to 21 to 60 months in state prison.[49] The judge said "public money was used like monopoly money to run campaigns. Some potential candidates were scared off by this taxpayer funded juggernaut. The public was also victimized." He said probation was not an option because that "would demean the seriousness of the crimes."[49] He was the first of the Bonusgate defendants to be sentenced.[49]

State Attorney General Tom Corbett subpoenaed Twitter officials to appear before a grand jury and reveal the identity of "CasablancaPA," a blogger critical of Corbett’s prosecution of the Bonusgate scandal.[50] Corbett wanted Twitter to reveal Cott's identity so the prosecution could use that as evidence that Cott showed no remorse, which could be introduced at sentencing.[50] Corbett withdrew the subpoena and Judge Lewis mentioned at Cott's sentencing that the blog played absolutely no role in his decision.[50]

Cott requested that his sentence be reduced.[11]

[edit] Veon and Peretta sentenced

Former Rep. Mike Veon, the most senior former legislator to be convicted in the Bonusgate probe was sentenced to six to 14 years in prison for his part in orchestrating a scheme that used more than $1 million in taxpayer money to finance the campaigns of House Democrats.[10] "This was a clear and dramatic violation of the public trust and a flagrant, glaring abuse of power," said Dauphin County Judge Richard A. Lewis.[10] The appellate court denied Veon's request for bail while his appeal is pending.[51]

Veon will also face trial, slated for September 2010, in the Beaver Initiative case slated for September.[51]

Judge Lewis sentenced Annamarie Perretta-Rosepink, who had managed Veon's district office, to three to six months in prison.[10]

[edit] Grand Jury Report

After 18 months of investigating[52], the grand jury impaneled by Attorney General Tom Corbett[53] to investigate the Bonsugate scandal issued a 34 page report in May 24, 2010.[54] The report stated that, for the Pennsylvania General Assembly's caucus system to function properly, the legislature must eliminate or dramatically reform the way it organizes and pays its staffers.[5] "The taxpayers of Pennsylvania elect individual members to public office," the grand jury wrote, "not an amorphous creature called a 'caucus' that consumes resources, is answerable to a select few and delivers no tangible benefits to the taxpayers."[5]

Duplicate Work

The grand jury also noted that the Democratic and Republican caucuses had separate departments to perform the same work. Duplicate print shops, IT and human resource departments were highlighted in the grand jury's 34-page report released last week, detailing what it said were wasteful and corrupt practices in the General Assembly. "To maintain separate print shops for the different caucuses is a gross misuse of public resources," the grand jury said.[55]

Unnecessary Staffers

The grand jury also said in its report, "One former high-ranking member of the (House Democratic caucus) told the grand jury that out of 911 staffers employed by his caucus, only about 350 of those employees were truly necessary for the daily operations of the caucus."[5] In addition, the grand jury's report noted that a former House Republican caucus staffer testified that only 289 of the 475 staffers employed by the HRC were necessary for government business, meaning that taxpayers foot the cost of approximately $11.2 million per year in salary and benefits for unnecessary employees.[5]

Size of Legislature

The report also suggested shrinking the size of the legislature. Pennsylvania has the largest full-time and second-most expensive legislative branch in the nation, according to the National Conference of State Legislatures.[56]

Full Time vs. Part Time

The grand jury recommended that the legislature could become a part-time body and still complete its work.[54]

Per Diems

The report also called for an end to per diems for lawmakers that do not require receipts.[56]

[edit] PennDOT

The grand jury aso found that many lawmakers have staff members who do nothing but handle constituents' problems at the Pennsylvania Department of Transportation ("PennDOT").[52] Lawmakers even had special employees in the Capitol who do such work. The report said the House Republican Caucus had about 20 such employees with a payroll of $895,500. The Democratic Caucus had 14 such staffers.[52] In response to the report, Gov. Rendell disband a special group of 35 state Transportation Department employees who handled PennDOT-related paperwork and problems from lawmakers' constituents.[53] Gov. Rendell said he didn't even know about the special PennDOT unit until he saw the grand jury report.[53] House Speaker Keith McCall criticized Rendell for disbanding the unit.[53]

[edit] Transparency legislation proposed

In response to "Bonus-gate" the Pennsylvania House has proposed a 12 point platform for reform which would limit perks for politicians, place more restrictions on lobbyists and bring transparency to political campaign funding.[57]

[edit] Proposed Public Integrity Commission

On July 26, 2010 a bipartisan group of state lawmakers introduced legislation to create the Public Integrity Commission. The proposed agency would be staffed by law enforcement personnel and would be overseen by a seven-member commission, have full investigatory powers including subpoena power and the ability to grant immunity for information that could aid in an investigation. The governor would select the seven member commission from a slate of 15 possible members nominated by a committee of law experts, district attorneys, and members of government advocacy groups. The governor's choices would then have to be confirmed by the State Senate with a two-thirds vote.[58]

The Public Integrity Commission would replace the State Ethics Commission and expand its role to root out corruption within all levels of government and all branches of government. [59] Its budget would be $4 million, double the State Ethics Commission's current budget.[58]

[edit] Voter doubt

In a recent polling by Quinnipiac University a majority of Pennsylvania voters have little confidence that the Pennsylvania Legislature will enact legislation to end political corruption.[60] However 76 percent believe a special session should be called to deal with the latest bought of government corruption.

Confident Not Confident
24% 74%

[edit] See also

[edit] References

  1. ↑ DeWeese: 7 aides ousted over e-mail | Philadelphia Inquirer | 12/18/2007
  2. ↑ Dennis B. Roddy and Tracie Mauriello, E-mails show how Dems tied staffers' bonuses to campaign work, Pittsburgh Post Gazette, 12/16/07
  3. ↑ What rises to 'criminal level' in Bonusgate? - Pittsburgh Tribune-Review
  4. ↑ 4.0 4.1 4.2 The Patriot News "Bonusgate lawyer wants court to rule on private complaint filed against Attorney General Tom Corbett" Aug. 31, 2010
  5. ↑ 5.0 5.1 5.2 5.3 5.4 York Daily Record "Bonusgate grand jury: Caucuses employs hundreds more than needed" June 1, 2010
  6. ↑ Brad Bumstead, GOP bonuses legit, Smith says, Pittsburgh Tribune-Review, 12/20/07
  7. ↑ Mario F. Cattabiani and Angela Couloumbis, More subpoenas, more details in Pa. bonus probe, Philadelphia Inquirer, 10/14/07
  8. ↑ "How do we insure prosecutorial fairness", Philly.com. Retrieved on 2008-01-09. 
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 Pittsburgh Tribune Review, Veon, Ramaley charged in bonus scandal, July 11, 2008
  10. ↑ 10.0 10.1 10.2 10.3 10.4 10.5 10.6 Philadelphia Inquirer "Veon convicted in Bonusgate trial" March 22, 2010
  11. ↑ 11.0 11.1 Pittsburgh Post-Gazette "Bonusgate convict asks for reduced sentence" June 15, 2010
  12. ↑ The Patriot News "Veon is broke, can't afford restitution in Bonusgate convictions, lawyer says" Oct. 8, 2010
  13. ↑ York Daily Record "Judge ups Veon's restitution to $1.9M in Bonusgate case" Oct. 26, 2010
  14. ↑ 14.0 14.1 The Pittsburgh Post-Gazette "Veon's next trial postponed until late January" Aug. 31, 2010
  15. ↑ The Pittsburgh Tribune-Review "Veon pleads not guilty to alleged misuse by Beaver Initiative for Growth" April 9, 2010
  16. ↑ Pittsburgh Post-Gazette "Acquitted in Bonusgate, Keefer sues for job, $2 million" July 29, 2010
  17. ↑ "Lebanon Daily News", Bonusgate Defendant Points Finger
  18. ↑ The Pittsburgh Post-Gazette "Bonusgate defendant given probation; must repay $22,000" March 2, 2011
  19. ↑ WNEP News, State Representative, Aides Indicted, July 10, 2008
  20. ↑ The Philadelphia Inquirer "Top Veon aide going to prison in Bonusgate" Dec. 18, 2010
  21. ↑ 21.0 21.1 WHTM.com "Rep. DeWeese Ordered to Stand Trial" July 26, 2010
  22. ↑ The York Dispatch "Stetler's attorney expects Bonusgate case to go to trial" July 12, 2010
  23. ↑ The Patriot-News "Corruption charges against former Revenue Secretary Steve Stetler have his former colleagues scratching their heads" December 21, 2009
  24. ↑ York Daily Record "Stetler heads to district court in Bonusgate case" July 14, 2010
  25. ↑ 25.0 25.1 25.2 25.3 The Philadelphia Inquirer "Judge: Perzel ‘Bonusgate’ case can go to trial" May 27, 2010
  26. ↑ 26.0 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 Pittsburgh Post-Gazette "Perzel, 9 others with GOP, ordered to corruption trials" May 27, 2010
  27. ↑ The Philadelphia Inquirer "Corbett campaign-fund appeal sent to Perzel" Oct. 6, 2010
  28. ↑ The Patriot-News "John Perzel, 8 GOP staffers going to trial on Bonusgate charges" May 27, 2010
  29. ↑ GOP halts bonus practice
  30. ↑ GOP halts bonus practice
  31. ↑ Patriot News
  32. ↑ Patriot News
  33. ↑ Patriot News
  34. ↑ Tracie Mauriello and Dennis B. Roddy, Bonus pay spread over party lines in state Legislature, Pittsburgh Post Gazette, 12/17/07
  35. ↑ Fellinger, Richard. "Bonusgate: Pa. legislative staff bonuses under microscope", The Evening Sun, 2008-02-15. Retrieved on 2008-07-13]]. 
  36. ↑ http://www.pennlive.com/news/capitol/patriotnews/index.ssf?/base/news/120287220353500.xml&coll=1&thispage=1
  37. ↑ http://www.pennlive.com/news/capitol/patriotnews/index.ssf?/base/news/120287220353500.xml&coll=1&thispage=1
  38. ↑ The Sam Adams Alliance - Building a network for liberty - Bonusgate
  39. ↑ DeWeese: 7 aides ousted over e-mail | Philadelphia Inquirer | 12/18/2007
  40. ↑ http://www.pennlive.com/newsflash/pa/index.ssf?/base/news-56/119524974111020.xml&storylist=penn
  41. ↑ State bonus investigation a step ahead of shredders
  42. ↑ http://www.postgazette.com/pg/08052/859373-100.stm
  43. ↑ Fired legislative staffer sues Pa. House | Philadelphia Inquirer | 02/22/2008
  44. ↑ Bonusgate probe spreads to Republicans | Philadelphia Inquirer | 10/23/2007
  45. ↑ Bonusgate probe spreads to Republicans | Philadelphia Inquirer | 10/23/2007
  46. ↑ GOP bonuses legit, Smith says - Pittsburgh Tribune-Review
  47. ↑ Ex-lawmaker guilty in Pa. 'ghost-employee' scheme | Philadelphia Inquirer | 02/05/2008
  48. ↑ Mark Scolforo, Ex-lawmaker faces charges as corruption probes roil Pa. House, Associated Press, 11/14/07
  49. ↑ 49.0 49.1 49.2 49.3 49.4 49.5 Pittsburgh Post-Gazette "Bonusgate defendant Brett Cott is sentenced" May 21, 2010
  50. ↑ 50.0 50.1 50.2 The Patriot News "Attorney General: Keep politics and Twitter out of it" May 26, 2010
  51. ↑ 51.0 51.1 The Pittsburgh Post-Gazette "Veon denied bail during appeal" July 12, 2010
  52. ↑ 52.0 52.1 52.2 York Daily Record "If it ain't broke, there's no benefit to lawmakers" June 3, 2010
  53. ↑ 53.0 53.1 53.2 53.3 Pittsburgh Post-Gazette "House leader criticizes Rendell for ending PennDOT unit" June 8, 2010
  54. ↑ 54.0 54.1 Philadelphia Inquirer "Grand jury calls for sweeping Pa. legislative change" May 25, 2010
  55. ↑ York Daily Record "Bonusgate grand jury slams wasteful duplication in Legislature" May 29, 2010
  56. ↑ 56.0 56.1 The Scranton Times Tribune "Onorato seeks legislative reforms" June 2, 2010
  57. ↑ CBS 21 News, Calling for government reform, July 16, 2008
  58. ↑ 58.0 58.1 "Leaders call for creating a new panel to fight Pennsylvania corruption" July 27, 2010
  59. ↑ The Patriot News "Bipartisan group of Pennsylvania lawmakers calls for creation of agency to root out public corruption" July 26, 2010
  60. ↑ Quinnipiac University, Voters Don't Think Lawmakers Will Stop Corruption, Quinnipiac University Pennsylvania Poll Finds; Chris Matthews Plays Hardball With Specter, August 5, 2008

Portions of this article were taken from Wikipedia.

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