Federal Officials Announce the Filing of a Criminal Indictment Charging a Member of the Luzerne County Housing Authority with Aiding and Abetting Payment of a Corrupt Reward/Bribe

Dennis C. Pfannenschmidt, United States Attorney for the Middle District of Pennsylvania; Janice Fedaryck, Special Agent in Charge, Federal Bureau of Investigation; and Don Fort, Special Agent in Charge, Internal Revenue Service-Criminal Investigation Division, jointly announced today that an Indictment was returned today by a federal grand jury in Scranton charging Gerald Bonner, a member of the Luzerne County Housing Authority, age 66, of Mountaintop, Pennsylvania, with aiding and abetting the payment of a corrupt reward/bribe to another member of the Housing Authority.

The charge returned by the grand jury today alleges that, earlier this year, Bonner passed a cash reward/bribe of less than $5,000 to another member of the Luzerne County Housing Authority. The Indictment charges the payment came from a business owner who had contracts with the Luzerne County Housing Authority valued at more than $5,000 during both 2008 and 2009. Bonner faces a maximum of ten years’ imprisonment and a fine of up to $250,000.

According to U.S. Attorney Pfannenschmidt, Bonner is the twelfth person charged with criminal conduct since late January of this year in an ongoing public corruption investigation targeting public corruption in Luzerne County. In January 2009, Mark Ciavarella and Michael Conahan, the former President Judges of the Court of Common Pleas of Luzerne County, were charged with engaging in honest services fraud and tax conspiracy. William Sharkey, the former Court Administrator of Luzerne County, has pleaded guilty to embezzlement charges and is awaiting sentencing. Sandra Brulo, the former Deputy Director of Forensic Programs for the Luzerne County Probation Office, has pleaded guilty to obstruction of justice and is awaiting sentencing.

In addition, On April 20, 2009, Brian Dunn, age 45, a member of the school board for the Wilkes-Barre Area School District, was charged in a criminal complaint with allegedly accepting cash in connection with the hiring of teachers and the awarding of contracts by the Wilkes-Barre Area School District. On May 18, James Height, age 53, of Wilkes-Barre, Pennsylvania, who resigned recently as President of the Wilkes-Barre Area School District Board of Education, was charged in a criminal information with allegedly accepting $2,000 in cash in connection with support he provided to a contractor in connection with an attempt by the contractor to obtain a contract with the Wilkes-Barre Area School District. On May 20, 2009 Dr. Ross Scarantino, age 63, of Duryea, who recently tendered his resignation as Pittston Area School District Superintendent, was charged in a criminal information with allegedly accepting $5,000 in cash in connection with support he provided to a contractor in connection with the contractor obtaining a contract with the Pittston Area School District. Scarantino and Height have both pleaded guilty to these charges and agreed to cooperate in the on-going investigation.

On June 9, 2009, Attorney Robert Powell was charged in a two-count information with misprision of a felony and being an accessory after the fact. Powell has pleaded guilty to the charges and is awaiting sentencing. On August 4, 2009, Karen Holly, age 51, of West Pittston, Pennsylvania, was charged in an information with theft of more than $5,000 from the Wyoming Valley Sanitation Authority, an agency receiving federal funds. On August 10, 2009, Joseph Oliveri, a former member of the school board for the Pittston Area School District, was charged in an information with the corrupt receipt of a reward for his official action concerning the awarding of a contract by the Pittston Area School District. On August 13, 2009, Robert K. Mericle was charged with misprision of a felony.

Also as a result of the investigation, former Luzerne County Prothonotary Jill Moran resigned from her office and voluntarily agreed to the entry of a court order directing her to cooperate with the ongoing federal public corruption probe looking into allegations of misconduct at the Luzerne County Courthouse.

On April 8, the FBI issued a statement requesting the public’s assistance in this ongoing investigation. Anyone with information is asked to call the public corruption task force toll free at 1-866-996-4320.

This case is part of an on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips and Criminal Division Chief Christian Fisanick. Pfannenschmidt praised this team of investigators and prosecutors for their tireless efforts on behalf of the people of Luzerne County.