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When I start my tour of duty God
wherever crime may be,
As I walk the darkened streets alone,
let me be close to Thee.
WPXI: Alright. Who's doing the bond deal, who did the deal?
Dowd: The folks who were associated with that: Merrill Lynch and JPMorgan. Go back and look at the names of the people that pitched the deal to the city.
WPXI: No, I want you to tell me. I want you to...
Dowd: I believe the Zappalas and Mossie Murphy were people -- two people among others who were associated with that deal. Greg Zappala, Mossie Murphy, others. (video)
WPXI: Are you suggesting that something was wrong with the deal?
Dowd: I think people need to take a look at it. We need to look in to that. I've called for an audit, I hope we get a chance to review it. I think we need to think about who did that deal and why it was done... but most importantly, my number one concern and I've said this before, repeatedly, going forward. How are we going to solve the problem of that bond deal. It's going to end up costing taxpayers more and more money. (ibid)
JPMorgan turned to other politically connected friends to win contracts in Western Pennsylvania in 2003. That year, it bought Cranberry Township-based underwriter RRZ Public Markets Inc., near Pittsburgh.
Greg Zappala, the son of former Pennsylvania Supreme Court Chief Justice Stephen Zappala and the brother of the Allegheny County district attorney, brought his local government clients to the Wall Street bank. Along with them, according to two lawsuits, came windfall profits on derivative deals.
Zappala urged the Butler Area School District, in the countryside 40 miles (64 kilometers) north of Pittsburgh, to take cash out of bonds that couldn't be refinanced until 2008. (Bloomberg, Selway and Braun)
JPMorgan, which, like other banks, balances the swaps by selling similar derivative deals on the open market, took a fee of $1.23 million, according to data compiled by Bloomberg. That's almost 10 times the fair rate, according to a lawsuit filed by the (Erie) school district against JPMorgan and its adviser in federal court.
There had been no court-filed responses as of mid- October. DiCarlo, Zappala and IMAGE didn't return requests for comment. (ibid)
The residents in the neighborhood did not know what was being built at Front and Thurlow streets, and the sign that read Delaware County Resource Recovery Facility gave no real indication of what the facility actually was. They had no idea how enormous the facility would be, or how much it would affect their daily lives. By 1991 the construction of the incinerator was complete. In a feeble attempt to win over the residents, Westinghouse provided free hot dogs, sodas, and balloons at the grand opening celebration.
The towering furnace across the street was an imposing sight for the residents of Front, Thurlow, Booth, 2nd, and 3rd streets and Highland Avenue. As the 300+ trash trucks per day began rumbling down their neighborhood streets on their way into and out of the Westinghouse site, the residents of the west-end of Chester started to feel the full impact of their new unwanted neighbor: the truck traffic from LCA Leasing and Abbonizio was increased many times over, the trash odors began competing with DelCora's sewage odors as the worst in the neighborhood. (EJNet, Russell)
On December 18, 1992, all of the City Council members except for the mayor sent a letter to the governor and to the DER asking them to expedite the permitting of Thermal Pure. Holding no public hearing, the DER granted Thermal Pure a permit. State law instructs the DER to hold a public hearing as part of the permitting process when the permit is controversial or there is known public opposition. By not holding a public hearing, DER was saying that there was no known public opposition to Thermal-Pure, in spite of the 500+ signatures they had in opposition to BioMed.
In 1993, Thermal Pure Systems was permitted to sterilize 4 to 5 times the amount of infectious waste produced in the entire state of Pennsylvania -- 288 tons per day. Under state law, any incinerator or other disposer of medical waste can only take in 70% of the waste produced in that section of the state. This law suggests that Thermal Pure should only be able to process about 29 tons per day, or 10% of their permitted capacity. CRCQL sued the state on the basis of that claim, and the Commonwealth Court of Pennsylvania ruled in their favor. Thermal Pure was ordered to shut down because their permit was deemed invalid. (ibid)
But the Pennsylvania Supreme Court, using its King's Bench Power, snatched the case out of the Commonwealth Court and granted a stay on the order to shut down Thermal Pure. Recently, that same court overturned the Commonwealth Court's decision, re-validating Thermal Pure's permit.
Not coincidentally, one of the State Supreme Court Justices is named Stephen Zappala, brother of the partner in Russell, Rea, and Zappala. While Justice Zappala recused himself from the case, he clearly exercised his influence by convincing the court to use the outdated King's Bench statute.
While the Thermal Pure battle was underway, CRCQL had found out that Soil Remediations Services, a contaminated soil burning plant, was seeking a permit to operate behind Thermal Pure. SRS, the next in a seemingly endless line of waste industries trying to site in Chester, received immediate and intense opposition from the a now more organized CRCQL. Petitions, protests, and testimony at public hearing combined to send a clear message to SRS and DEP that the community did not want another polluter. In a strange twist of fate, the residents were able to convince all five members of City Council to oppose the permitting of SRS. (ibid)
Judge Mark A. Ciavarella and former Senior Judge Michael T. Conahan are accused of taking $2.6 million for sending children to two facilities owned by Pittsburgh businessman Greg Zappala.
Judges Ciavarella and Conahan each could face prison terms of up to seven and three months, according to the terms of plea agreements they signed last week.
No charges have been filed against Mr. Zappala, who is the brother of Allegheny County District Attorney Stephen A. Zappala Jr. and son of former state Supreme Court Justice Stephen A. Zappala Sr. (P-G, Tracie Mauriello)
Meanwhile, the state Supreme Court has agreed to review all juvenile cases adjudicated in Luzerne County during in the last five years.
That's good news to parents such as Susan Mishanski, whose 17-year-old son was sentenced by Judge Ciavarella last year to 90 days in a juvenile facility in Carbon County.
She said the punishment was excessive and that it traumatized her son, a first-time offender who was expecting community service or a fine for punishing another boy last year. Instead, he was taken from the courtroom in shackles and brought to Camp Adams, where he was beaten by other teenagers, forced to wear ripped clothes four sizes too big and permitted visitors only twice a month for an hour, she said.
"He was humiliated and he was scared," said Ms. Mishanski of Luzerne County. "I'm absolutely thrilled now that [these judges] got caught." (ibid)
Judge Ciavarella and a co-conspirator, former Luzerne County Senior Judge Michael T. Conahan, agreed in their plea deal to serve a little more than 7 years in prison and to be disbarred. (P-G, Tracie Mauriello 2)
Dan Fee, a spokesman for Greg Zappala, said Mr. Zappala had no knowledge of the payments to the judges. Mr. Zappala has not been accused of any wrongdoing and is not a target of the investigation, according to a source close to the federal probe.
Attorneys for Mr. Zappala's former partner in the centers, Hazleton attorney Robert Powell, have said Mr. Powell made payments to the Luzerne judges. But they also called Mr. Powell a victim of extortion, and said he ultimately reported the shakedown to authorities. (ibid)
But the vulgar silence on this issue is revolting. Have we become so self absorbed that we cannot see how those with influence continue to profit from our sheeple mentality, realizing that their crimes will go unpunished because either no one is paying attention, or the masses have become so accustomed to this type of behavior that even a horrific crime like this against children does not cause them to so much as raise an eyebrow let alone ask questions? If we don't challenge this type of abuse of power, then we deserve everything they do to us! (Meadville Tribune commenter)
"Taxpayer dollars are being wasted through mismanagement and cronyism," Dowd, who is challenging Ravenstahl in the May 19 Democratic primary, said as he stood over one of 250 steel trash receptacles the administration purchased for $1,010 apiece without seeking competitive bids. (Trib, Jeremy Boren)
"We have a desperate candidate with no plan of his own, showing himself to be just ridiculous," said Ravenstahl campaign manager Paul McKrell. (P-G, Rich Lord)
*-UPDATE: I should say, on camera more. (WTAE) The reason we have had "three balanced budgets" is A) the oversight boards have long made it the law to balance budgets on a piece of paper and B) the budgets are not actually balanced. Remember, the Finance Director said the five-year plan is "only a piece of paper"? It's a shell game between the "City" budget, the Authorities budgets and where we choose to notate our debt. Look at the condition of our streets and neighborhoods, total up all the vacant positions throughout city government, and tell me again we have a "balanced budget".
1. The Ethics board endorses the proposal of the working group.
2. The new rules detail what is acceptable in Pittsburgh. Pittsburgh was verbally italicized on at least half a dozen occasions -- apparently what is ethical in Pittsburgh differs rather significantly from what is ethical elsewhere, or from what appears in the City Ethics model code.
3. Often in close proximity to this Pittsburghism, it was noted that "at the neighborhood and city level", attendance at public events is "expected and encouraged".
4. There are updated, specific and "realistic" dollar figures of what defines "nominal" value.
5. For most categories of gifts, it is "recommended" that public officials "seek" "voluntary" "advice" from the Ethics board before acceptance.
6. Doug Shields now concedes that Ravenstahl's acceptance of UPMC's and the Penguins' offer to attend the Lemieux Invitational charity golf tournament was AOK. Bill Peduto disagrees on this point, saying that if the event host invited him it would be okay, but the minute UPMC writes a check to pay his way that event admission becomes a gift.
7. Ricky Burgess was taciturn and generally unenthused throughout. He said his "personal ethics" are "higher" than this and indeed one must do more than what is required. Yet at the same time he "wholeheartedly supports" this measure, it has his "complete and utter support".
8. Related to this, I think at some point it was implied that the Council is shooting for and expects unanimity on the measure.
9. Shields and Peduto seem to want to add penalties for the interested parties who offer things to, or "dangle things in front of" public officials.
10. As to penalties for public officials who accept untoward gifts, this seems to reside almost entirely through a "transparency mechanism" -- that being, gifts are "encouraged" to be declared officially, so that the public can make up their own minds. This is because elections happen so frequently, the public pays such close attention to city government, and what is ethical and what is unethical depends on whether or not one gets caught and can retain 51% of the vote.