Posted on 06/16/2009 11:08:06 AM PDT by Born Conservative
The state has denied pension benefits to two former Luzerne County judges who took kickbacks from a juvenile-detention provider and is seeking repayment of $4.3 million the judges' kids-for-cash scheme allegedly cost state taxpayers.
Reversing its earlier position Michael T. Conahan and Mark A. Ciavarella Jr. are eligible to receive benefits until they are sentenced, the State Employees' Retirement System ruled the former judges' guilty pleas to fraud and conspiracy in February provided sufficient grounds to deny them benefits.
In a letter to two state lawmakers who proposed bills to immediately rescind pension benefits when a judge or other state employee pleads guilty, retirement system board chairman Nicholas J. Maiale wrote his agency has changed its policy after consulting with staff and outside counsel.
The letter also noted the agency has refused to repay Mr. Ciavarella the $234,000 he contributed to the retirement system during his 13 years on the bench - money usually not subject to forfeiture - because the state claims he and Mr. Conahan are liable for $4.3 million in alleged overpayments it made to two juvenile detention centers implicated in the kids-for-cash scheme.
Mr. Ciavarella and Mr. Conahan conspired to close a county-owned detention center and used their political influence to win county contracts for the privately owned centers, federal prosecutors say.
Mr. Ciavarella, who presided over juvenile court for 12 years, is accused of jailing juveniles on minor charges, denying them the right to counsel and overruling court officials who recommended against detention to benefit the centers.
The state Department of Public Welfare, which partially reimburses counties for juvenile detention and treatment costs, claims it overcompensated Luzerne County by $4.3 million because of unnecessary detention costs and inflated charges in the centers' contracts with the county, according to Al Flora Jr., Mr. Ciavarella's attorney.
The department press office did not respond to a request for comment Monday.
Mr. Ciavarella, 59, plans to appeal the denial of his pension benefits and refusal to release his contributions, Mr. Flora said.
He applied for reimbursement of his pension contributions plus a monthly benefit of $5,150 in March, shortly after officially resigning. No payments were made because of the retirement system's review and subsequent change of policy, Mr. Maiale's letter said.
Mr. Conahan, 57, retired in January 2008. He withdrew the money he had contributed to the system in his 31 years as a magisterial district judge and county judge plus accrued interest - a total of about $300,000 - and began receiving $8,073 in monthly pension benefits. His last pension check was mailed in April, according to Mr. Maiale's letter. The state retirement system will seek repayment of all pension benefits received by Mr. Conahan since his guilty plea Feb. 12, the letter said. The $300,000 is now beyond the agency's reach.
Efforts to reach Mr. Conahan were unsuccessful. His attorney, Philip Gelso, declined to comment.
Mr. Ciavarella and Mr. Conahan face 87 months in prison for accepting $2.6 million in kickbacks from a former owner of the two juvenile detention centers and the contractor who built the centers, federal prosecutors say.
They are free on bail awaiting their formal sentencing, which has yet to be scheduled.
Good. Too bad they couldn’t recoup the rest.
That’s exactly what we need to do with all of our politicians.
I think that if forfeiture of pension is done with all felon government workers, it would be a good start at cutting down on corruption.
There is no other term for this, these two JUDGES are guilty of selling their offices and receiving money for CHILD ABUSE! They bought condos and boats and assuaged any ‘guilt’ with high time life styles. Hope they get good boyfriends but being former judges I think that they will be segregated from their fellow inmates. Oh BARF!
If they get lonely in prison, at least they’ll have each other....
Me too.
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