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Can a municipality be a victim, too?

We taxpayers get enraged when we find instances where the justice system is gamed by laws with loopholes.

The latest instance involves a state Supreme Court ruling last November that is having implications on a scam perpetrated by two Lackawanna County businessmen, who sold many local municipalities a bill of goods that could save them thousands, even millions, by buying streetlights instead of leasing them.State Sens. Lisa Boscola, D-Northampton, and Pat Stefano, R-Fayette, introduced bills recently to try to plug this unintended omission in a state law.The problem came to light last November when the state Supreme Court ruled in the case of former state Rep. Mike Leon, D-Beaver, that he did not need to make restitution for $136,000 he owed after being convicted of public corruption in Harrisburg's infamous Bonusgate scandal.The ruling also carried over to other convicted ex-lawmakers, and now two Scranton area men, who are accused of bilking area municipalities, are trying to use the same ruling to have their restitution orders scrapped.The state's high court ruled that Pennsylvania's Crime Victims Act defines a victim as "an individual" who suffers "physical or mental injury, death or loss of earnings." The law does not apply to state government, because it is not an individual, Justice David Wecht wrote in the opinion.In the opinion in Veon's case, Wecht wrote that every relevant noun or pronoun "unequivocally describes a human being, not a government agency." And, he added, "nowhere else is there a relevant definition that persuades us to broaden the common understanding of these words."Robert J. Kearns, 53, of Scranton, and co-defendant, Patrick J. McLaine, 67, of Elmhurst Township, were convicted in 2013 of bilking Bethlehem Township out of $832,000, an amount for which the two were ordered to make restitution. They are serving up to five years in prison for their crimes.The two were co-principals in Municipal Energy Managers, which was hired by Bethlehem Township a decade ago to help the township buy its streetlights from PPL. Rather than fulfill the terms of the contract with the township, the two pocketed the money, a Northampton County jury decided.Kearns' attorney, Brian Monahan of Easton, has petitioned the court to drop the restitution requirement, rationalizing that if the law does not apply to the state since it is not an individual, it can't apply to a municipality either. A hearing on Kearns' petition is scheduled for Aug. 29 before Northampton County Senior Judge Leonard Zito.In their bipartisan legislative effort, Boscola and Stefano said they are outraged by the Supreme Court ruling and want their colleagues in the General Assembly to take corrective action immediately. The Senate does not return to session until Sept. 18."There shouldn't be loopholes in our restitution laws," Stefano said. "It's obvious that we need to fix our law and do so quickly."The two defendants have been implicated in similar scams, including stealing $160,000 from the borough of Coplay, in Lehigh County, and from municipalities in Bucks and Cumberland counties. In these cases, they were placed under house arrest or probation with the understanding that they would make restitution.MEM bought streetlights from PPL for Hazleton, West Hazleton, Wilkes-Barre and Scranton. Seven area municipalities have filed civil suits against MEM, including Lansford, Coaldale, Tamaqua, Jim Thorpe, Nesquehoning, Stroudsburg and Mahanoy City.In 2008, Nesquehoning Borough Council signed with the company, taking out a loan for $431,200 over 30 years to cover the cost. After it sued, a court ruling in 2014 gave Nesquehoning $1,521,332. Tamaqua sued for $459,325; Coaldale is out $182,400; and Lansford, $306,000. None of these boroughs received anything before the company went bankrupt. The total restitution in all of these cases comes to $2.47 million. So far, the two have paid back just $2,205.We find the Supreme Court ruling was too narrow. After all, when we are talking about the "state" or a "borough," "township" or "city," aren't we the taxpayers living, breathing human beings - and the ones who, at the end of the day, are being scammed?Not only that, but what about businesses and nonprofits? Are they the next ones which must forfeit restitution?By Bruce Frassinelli |

tneditor@tnonline.com