2006 Pennsylvania General Assembly bonus controversy

{{Short description|none}} In 2007, Pennsylvania Attorney General Republican Tom Corbett began investigating $3.8 million in public bonuses which were paid to state legislative staffers in the Pennsylvania General Assembly to work on party politics and campaigns. While the bonuses themselves are not illegal, state law forbids state employees from performing campaign work while on the job and forbids payment for campaign work out of taxpayer funds.<ref name=autogenerated2>[http://www.philly.com/inquirer/politics/pa/20071218_DeWeese__7_aides_ousted_over_e-mail.html DeWeese: 7 aides ousted over e-mail | Philadelphia Inquirer | 12/18/2007]</ref><ref>[http://www.postgazette.com/pg/07350/842079-85.stm Dennis B. Roddy and Tracie Mauriello, ''E-mails show how Dems tied staffers' bonuses to campaign work'', Pittsburgh Post Gazette, 12/16/07]</ref>

Pennsylvania media referred to this scandal as "bonusgate."<ref>[http://www.pittsburghlive.com/x/pittsburghtrib/news/mostread/s_545058.html What rises to 'criminal level' in Bonusgate? - Pittsburgh Tribune-Review] {{webarchive|url=https://web.archive.org/web/20080103141722/http://www.pittsburghlive.com/x/pittsburghtrib/news/mostread/s_545058.html |date=2008-01-03 }}</ref> Originally the investigation centered on Democratic and Republican Caucuses (top state committees of each party) in each of the state's two chambers, the Senate and the House of Representatives. Democrats dominated the investigate in the highly (at that time) Democratic state.<ref>http://www.post-gazette.com | Bonusgate: How the statewide public corruption case unfolded | February 13, 2012 | [https://www.post-gazette.com/home/2012/02/12/Bonusgate-How-the-statewide-public-corruption-case-unfolded/stories/201202121900]</ref>

As the investigation continued other areas of concern arose, including findings of judicial corruption, nepotism, conflict of interest and Republican corruption in a subsidiary investigation dubbed "Computergate" by the press, in which Republicans used state monies to pay state employees to develop computer programs to find and target Republican voters.<ref name='Indited'>{{cite web|url=http://whyy.org/cms/news/government-politics/2009/11/12/former-pa-house-speaker-john-perzel-indicted/22864 |title=Former PA House Speaker John Perzel indicted |accessdate=2010-02-28 |last=Tu |first=Alan |date=2009-11-12 |url-status=dead|publisher=WHYY |archiveurl=https://web.archive.org/web/20120307155903/https://whyy.org/cms/news/government-politics/2009/11/12/former-pa-house-speaker-john-perzel-indicted/22864|archivedate=2012-03-07}}</ref>

Still later investigations discovered the Kids for cash scandal in 2008 which judges in Luzerne County Court of Common Pleas in Wilkes-Barre, were paid kickbacks to ensure juveniles were sent to for-profit facilities.<ref name="nyt-urbina-022609">{{cite news|url=https://www.nytimes.com/2009/02/27/us/27judges.html?_r=1|title=70 Youths Sue Former Judges in Detention Kickback Case|last=Urbina|first=Ian|date=February 26, 2009|work=New York Times|accessdate=2009-08-25}}</ref>

There was also a skimming operation in which two not-for-profit organizations in Beaver County, PA called Beaver Investment for Growth (BIG), had funds skimmed to fund political campaigns.<ref>{{Cite web|url=https://www.law360.com/articles/693628/pa-high-court-to-hear-ex-lawmaker-s-corruption-appeal|title = Pa. High Court to Hear Ex-Lawmaker's Corruption Appeal - Law360}}</ref>

This was followed by disciplinary action against politicians who sent or received raunchy, racist and misogynistic emails called "Porngate".<ref>{{cite news|last=Gambacorta|first=David|title=Is This The End of Porngate? – Taxpayers can finally see an independent report that cost them $385,000. But they won't glimpse the names of state employees who were caught emailing offensive messages|url=https://www.phillymag.com/news/2016/11/22/the-end-of-porngate/|publisher=Metro|website=phillymag.com|date=November 22, 2016|access-date=May 25, 2020}}</ref>

In 2014 still more bribery was discovered in the Pennsylvania Attorney General Sting.<ref>{{Cite web|url=http://www.phillytrib.com/news/waters-james-plead-guilty-to-bribery-lowery-brown-picks-trial/article_8d02addc-3e6f-575f-843a-ca9d7665127f.html|title=Waters, James plead guilty to bribery; Lowery Brown picks trial}}</ref>

==Attorney General's investigation== 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.<ref>{{Cite web |url=http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_543673.html |title=Brad Bumstead, ''GOP bonuses legit, Smith says'', Pittsburgh Tribune-Review, 12/20/07 |access-date=2008-01-11 |archive-url=https://web.archive.org/web/20100526045455/http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_543673.html |archive-date=2010-05-26 |url-status=dead }}</ref>

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.<ref>[http://www.philly.com/inquirer/breaking/news_breaking/20071013_More_subpoenas__more_details_in_Pa__bonus_probe.html Mario F. Cattabiani and Angela Couloumbis, More subpoenas, more details in Pa. bonus probe, Philadelphia Inquirer, 10/14/07]</ref>

==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 Leader Bill DeWeese or his Whip, former Rep. Mike Veon.<ref>{{Cite web |url=http://www.samadamsalliance.org/common_sense/id.3116/sense_detail.asp |title=The Sam Adams Alliance - Building a network for liberty - Bonusgate |access-date=2008-01-10 |archive-url=https://web.archive.org/web/20080108043307/http://www.samadamsalliance.org/common_sense/id.3116/sense_detail.asp |archive-date=2008-01-08 |url-status=dead }}</ref>

DeWeese initially attempted to block Pennsylvania Attorney General Tom Corbett's investigation into whether the House Democratic caucus made illegal payments to staffers with motions to quash subpoenas and exclude evidence seized.<ref>{{cite news| url=http://www.post-gazette.com/pg/07264/819368-85.stm | work=Pittsburgh Post-Gazette | first1=Tracie | last1=Mauriello | first2=Tom | last2=Barnes | title=Democrats attempting to block state probe of bonuses | date=September 21, 2007}}</ref> However, months later he abruptly fired several staffers<ref>{{cite web|url=https://www.scribd.com/doc/16343599/Inquirer-20071115 |title=Inquirer 20071115 | Democratic Party (United States) | United States Government |publisher=Scribd.com |date=2007-11-15 |accessdate=2017-05-09}}</ref> after turning over to Corbett self-selected documents and e-mails,<ref>{{cite web |url=https://www.scribd.com/doc/16343487/Agent-So-Op-Testimony-1 |title=Agent Soop Testimony 1 |publisher=Scribd.com |date= |accessdate=2017-05-09}}</ref> and dropped his legal challenges.<ref>{{cite web|url=http://www.pennlive.com/newsflash/pa/index.ssf?%2Fbase%2Fnews-56%2F119524974111020.xml%26storylist%3Dpenn |title=Archived copy |accessdate=2007-11-16 |url-status=dead |archiveurl=https://archive.today/20120907083101/http://www.pennlive.com/newsflash/pa/index.ssf?/base/news-56/119524974111020.xml&storylist=penn |archivedate=2012-09-07 }}</ref>

The documents DeWeese turned over to the Attorney General revealed that DeWeese acknowledged awarding bonuses for campaign work and used a state-paid consultant to perform political tasks.<ref>{{cite web|last=Ferrari|first=Signor|url=https://www.scribd.com/doc/16310986/Inquirer-20090406 |title=Bonusgate Records Contradict Deweese: By Mario F. Cattabiani And Angela Couloumbis Inquirer Staff Writers |publisher=Philadelphia Inquirer|via=Scribd.com |date=April 6, 2009 |accessdate=2017-05-09}}</ref> DeWeese has not been charged in connection with bonuses or the state-paid consultant.

Grand jury testimony in the case revealed that DeWeese made bizarre personal demands of his staff, such as a small coffee in a big cup, a small salad in a big bowl, or "12 M&Ms."<ref>{{cite web|url=http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_658877.html |title=Grand jury testimony tells of DeWeese's demands on staff - Pittsburgh Tribune-Review |accessdate=2010-12-13 |url-status=dead |archiveurl=https://web.archive.org/web/20100213133338/http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_658877.html |archivedate=2010-02-13 }}</ref> His state-paid aides balanced his checkbook, bought condoms and arranged his dinner dates.

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's 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.<ref name=autogenerated3>[http://www.philly.com/philly/hp/news_update/20071023_Bonusgate_probe_spreads_to_Republicans_.html Bonusgate probe spreads to Republicans | Philadelphia Inquirer | 10/23/2007]</ref>

==House Republican Caucus== On October 22, 2007 House Republicans received subpoenas seeking personnel records.<ref name=autogenerated3 /> House Republican Leader Sam Smith said some House Republican staffers worked for campaigns, but also said they were not paid with taxpayers' money.<ref>{{Cite web |url=http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_543673.html |title=GOP bonuses legit, Smith says - Pittsburgh Tribune-Review |access-date=2008-01-11 |archive-url=https://web.archive.org/web/20100526045455/http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_543673.html |archive-date=2010-05-26 |url-status=dead }}</ref>

==Senate Republican Caucus== On January 31, 2007, the Senate Republican became the first caucus to release a list of their staffers who received bonuses.<ref name=autogenerated4>{{cite news| url=http://www.post-gazette.com/pg/07032/758486-85.stm | work=Pittsburgh Post-Gazette | title=GOP halts bonus practice | first=Tom | last=Barnes | date=February 1, 2007}}</ref> The next day, Senate Republicans ended the practice of giving bonuses altogether.<ref name=autogenerated4 />

Out of sixteen Senate Republican staffers receiving bonuses, only three had worked on campaigns.<ref>{{Cite web |url=http://www.pennlive.com/news/capitol/patriotnews/index.ssf?%2Fbase%2Fnews%2F120287220353500.xml&coll=1&thispage=2 |title=Pennsylvania Statehouse: News and commentary from the Patriot-News |access-date=2008-02-14 |archive-url=https://web.archive.org/web/20100526083606/http://www.pennlive.com/news/capitol/patriotnews/index.ssf?%2Fbase%2Fnews%2F120287220353500.xml&coll=1&thispage=2 |archive-date=2010-05-26 |url-status=dead }} </ref> 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.<ref name="autogenerated1">[http://www.pennlive.com/news/capitol/patriotnews/index.ssf?/base/news/120287220353500.xml&coll=1&thispage=1] {{webarchive|url=https://web.archive.org/web/20100526010922/http://www.pennlive.com/news/capitol/patriotnews/index.ssf?%2Fbase%2Fnews%2F120287220353500.xml&coll=1&thispage=1|date=2010-05-26}}</ref> Senate legal counsel Drew Crompton received a bonus of $19,647 despite working for Republican gubernatorial candidate Lynn Swann from July through October.<ref name=autogenerated1 /><ref name=party>[http://www.postgazette.com/pg/07351/842266-178.stm Tracie Mauriello and Dennis B. Roddy, ''Bonus pay spread over party lines in state Legislature'', Pittsburgh Post Gazette, 12/17/07]</ref> Erik Arneson, chief of staff to Senator Chip Brightbill was paid $15,000 in bonus payments.<ref>{{cite news |last = Fellinger |first = Richard |title = Bonusgate: Pa. legislative staff bonuses under microscope |publisher = The Evening Sun |date = 2008-02-15 |url = http://www.eveningsun.com/ci_8271272?source=most_emailed |accessdate = 2008-07-13 |archive-url = https://web.archive.org/web/20100525170756/http://www.eveningsun.com/ci_8271272?source=most_emailed |archive-date = 2010-05-25 |url-status = dead }}</ref> None were found guilty.

On February 13, 2008, Attorney General's office officially extended its investigation to the Senate Republican caucus.<ref name=autogenerated1 /> The Senate Republicans have retained two Philadelphia law firms as legal advisers.<ref name=autogenerated1 />

===Computergate=== Computergate was discovered as the Bonusgate investigation continued and found that the Republican Caucus was guilty of using public money to develop computer programs that would identify and specifically target Republican voters.<ref>[http://www.philly.com] | John Perzel charged in 'Bonusgate' by Ben Waxman | Updated: NOVEMBER 13, 2009 | [https://www.philly.com/philly/blogs/our-money/John_Perzel_charged_in_Bonusgate.html]</ref> (2007)

Brett O. Feese (R) State Representative was found guilty of corruption and sentenced to 4-12 months in prison and fined.<ref name="Indited"/><ref>{{cite web|url=https://www.pennlive.com/midstate/index.ssf/2012/02/ex-rep_brett_feese_gets_state.html|title=Ex-Rep. Brett Feese gets state prison term, ordered to pay $1 million restitution in corruption case|work=PennLive.com|date=10 February 2012|accessdate=25 October 2014}}</ref>

Jill Seaman (R) Staff to Freese was found guilty of corruption, sentenced to 9–23 months in prison, nine months of probation and fined.<ref>http://www.pennlive.com | Jill Seaman sentenced to 9 to 23 months in prison for Computergate case convictions by Matt Miller | January 13, 2012 | [https://www.pennlive.com/midstate/index.ssf/2012/01/jill_seaman_sentenced_to_9_to.html]</ref>

John M. Perzel (R) State Representative, as part of Computergate, pleaded guilty to conflict of interest, theft, and conspiracy, in a scheme to spend millions of taxpayer dollars on computer technology from Aristotle, Inc. for the benefit of Republican political campaigns. (2011)<ref name="boston.com">{{cite news|url=http://archive.boston.com/news/politics/articles/2011/09/01/former_speaker_of_pennsylvania_house_pleads_guilty_to_corruption/|title=Former speaker of Pennsylvania House pleads guilty to corruption|work=Boston.com|access-date=25 October 2014|date=1 September 2011}}</ref><ref>[http://tribune-democrat.com/latestnews/x1862285352/Perzel-gets-at-least-2-1-2-years-in-corruption-case] {{Webarchive|url=https://archive.today/20120722003706/http://tribune-democrat.com/latestnews/x1862285352/Perzel-gets-at-least-2-1-2-years-in-corruption-case|date=2012-07-22}}</ref> Brian Preski (R) Chief of Staff to Perzel was convicted of corruption, and sentenced to 2{{frac|1|2}} years. <ref>{{cite web|url=http://articles.mcall.com/2012-03-21/news/mc-pa-corruption-scandal-032112-20120321_1_house-speaker-john-perzel-brian-preski-corruption-case|archive-url=https://web.archive.org/web/20130926231207/http://articles.mcall.com/2012-03-21/news/mc-pa-corruption-scandal-032112-20120321_1_house-speaker-john-perzel-brian-preski-corruption-case|url-status=dead|archive-date=September 26, 2013|title=Former Pa. Speaker John Perzel sentenced in corruption case|work=The Morning Call|access-date=25 October 2014}}</ref><ref>{{cite news|url=http://articles.mcall.com/2012-03-21/news/mc-pa-corruption-scandal-032112-20120321_1_house-speaker-john-perzel-brian-preski-corruption-case|archive-url=https://web.archive.org/web/20130926231207/http://articles.mcall.com/2012-03-21/news/mc-pa-corruption-scandal-032112-20120321_1_house-speaker-john-perzel-brian-preski-corruption-case|url-status=dead|archive-date=September 26, 2013|title=Perzel gets at least 2 1/2 years in corruption case|date=21 March 2012|work=The Morning Call|access-date=14 December 2022|author=Peter Jackson}} </ref>

Paul Towhey Jr. (R) also CoS to John Perzel, pled guilty to conflict of interest and conspiracy and was given 5 years probation and fined.<ref>{{cite web |access-date=August 19, 2011 | title=Former Perzel chief of staff Paul Towhey pleads guilty in Computergate corruption case | author=Matt Miller | date=19 August 2011 |url=https://www.pennlive.com/midstate/index.ssf/2011/08/former_perzel_chief_of_staff_p.html}}</ref>

Samuel Stokes (R) GOP Staff and brother-in-law to Perzel (R) pled guilty to conflict of interest and conspiracy and was sentenced to 5 yrs probation and fined.<ref>[http://www.pennlive.com] | 2 former aides to John Perzel plead guilty to conspiring to defraud taxpayers | Matt Miller | August 17, 2011 | [https://www.pennlive.com/midstate/index.ssf/2011/08/2_computergate_defendants_plea.html]</ref>

Don McClintock (R) staff to John Perzel was found guilty of conflict of interest and conspiracy and also sentenced to five yrs probation and fined.<ref>{{cite web|last=Jackson|first=Peter|title=3 Pa. GOP corruption defendants get probation | url=https://www.delcotimes.com/article/DC/20120321/NEWS/30321998|date=March 21, 2012|publisher=Daily Times|website=delcotimes.com}}</ref>

==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.<ref>[https://www.philly.com/inquirer/local/pa/20080205_Ex-lawmaker_guilty_in_ghost-employee_scheme.html Ex-lawmaker guilty in Pa. 'ghost-employee' scheme | Philadelphia Inquirer | 02/05/2008]</ref> The scheme was uncovered during inspection of personnel documents during the bonus investigation.<ref>[http://www.phillyburbs.com/pb-dyn/news/103-11142007-1441033.html Mark Scolforo, Ex-lawmaker faces charges as corruption probes roil Pa. House, Associated Press, 11/14/07] {{webarchive|url=https://web.archive.org/web/20080203225217/http://www.phillyburbs.com/pb-dyn/news/103-11142007-1441033.html |date=2008-02-03 }}</ref>

==Veon guilty verdict== On March 23, 2010, after a week of deliberation, a Dauphin County jury found former Democratic State House Whip Mike Veon guilty on 14 counts related to using taxpayer-paid bonuses to reward state workers for campaign efforts, illegal campaign fundraising, other campaign efforts and a single count of conflict-of-interest for having aides drive two motorcycles to a North Dakota rally. On June 18, 2010, Veon was sentenced to six to fourteen years imprisonment by Common Pleas Judge Richard A. Lewis.<ref>[http://www.post-gazette.com/pg/10170/1066692-454.stm Veon given 6-14 years]</ref><ref>[https://www.philly.com/inquirer/local/pa/20100619_Veon_gets_six_to_14_years_in_Bonusgate.html Veon gets six to 14 years in Bonusgate]</ref> On appeal, the Supreme Court of Pennsylvania cited errors in the trial judges' instructions to the jury and called Veon's original conviction a "criminalization of politics" and a new trial on all counts was ordered(2016)<ref>[http://www.pennlive.com] | Former lawmaker Mike Veon granted new trial in corruption case | November 22, 2016 | Mark Scolforo, The Associated Press | [https://www.pennlive.com/news/2016/11/former_lawmaker_mike_veon_gran.html]</ref>

Also convicted were two former aides, Brett Cott, found guilty on three counts, and Annamarie Perretta-Rosepink, found guilty on five counts. A third aide, Stephen Keefer, was acquitted of all charges against him.<ref>[http://wearecentralpa.com/fulltext/?nxd_id=158615 Former Whip Mike Veon Found Guilty In Bonusgate] {{webarchive|url=https://web.archive.org/web/20110718005725/http://wearecentralpa.com/fulltext/?nxd_id=158615 |date=2011-07-18 }}</ref><ref>[http://www.businessweek.com/ap/financialnews/D9EKC4981.htm The Associated Press March 23, 2010, 9:29AM ET text size: TTEx-Pa. rep guilty of 14 counts in corruption case] {{webarchive|url=https://web.archive.org/web/20121023180127/http://www.businessweek.com/ap/financialnews/D9EKC4981.htm |date=October 23, 2012 }}</ref>

== References ==

{{DEFAULTSORT:2006 Pennsylvania General Assembly Bonus Controversy}} Pennsylvania General Assembly bonus controversy Pennsylvania Pennsylvania General Assembly Bonus Controversy, 2006 Category:2006 controversies in the United States