A federal corruption investigation that has already targeted more than 20 people in Luzerne County has now moved into Lackawanna County.
A federal grand jury Tuesday morning returned that 40-count indictment against Bob Cordaro and A.J. Munchak, charging them with using their roles as county commissioners to make money illegally.
In a 56-page federal indictment former Lackawanna County Commissioner Cordaro and current Lackawanna County Commissioner A.J. Munchak are facing 40 criminal counts for allegedly using their official positions for illegal financial gain with both accepting at least $450,000.
"The indictment alleges that both Mr. Cordaro and Mr. Munchak engaged in racketeering, fraud, extortion, bribery and federal tax violations," said U.S. Attorney Dennis Pfannenschmidt. "The unethical behavior alleged in today's indictment will not be tolerated."
The charges were announced at 2 p.m. at the federal courthouse in Scranton to a packed room and followed a joint investigation involving the U.S. Attorney's office, the FBI and the Internal Revenue Service.
Investigators said dating back to 2003, when both Cordaro and Munchak were the county's majority commissioners, they took bribes from individuals or companies seeking contracts or business with the county.
Pfannenschmidt said the investigation started during the trial for Scranton businessman Charles Costanzo in 2007. He is serving time for stealing $600,000 from Lackawanna County. The indictment alleges Cordaro not only knew Costanzo stole the money, the two men used part of the cash for trip to the Playboy mansion in California in 2005.
From there, the FBI and the IRS began to investigate.
"Public officials must comply with the same laws as the citizens they were elected to serve," said Troy Stemen of the Internal Revenue Service.
The indictment also alleges Cordaro told the county's transit system, COLTS, to fire a company that was given a contract for the intermodal transportation system and hire another company instead. That new company paid $90,000 to Cordaro and Munchak.
The two are also accused of strategically using their votes as commissioners to buy the cell tower at the Lackawanna County 911 center in 2005 after entering an agreement with people who built the tower. Cordaro received $14,000 as a kickback, according to prosecutors.
The indictments state from 2003 to 2004 Cordaro also accepted thousands in cash for allowing companies to keep their contracts to do work at the Wilkes-Barre/Scranton International Airport.
"Mr. Cordaro and Mr. Munchak asked for the public's vote of confidence when they ran for office. The citizens gave them their trust and in return, their vow was to return honest services to citizens of Lackawanna County. This indictment alleges that they violated this trust," said U.S. Attorney Dennis Pfannenschmidt.
Outside the courthouse public outrage was heard.
"It makes me think that there's been a lot of hanky panky under cover here and it's coming to the forefront. I think it's long overdue," said Joe Talamini of Scranton.
FBI officials said corruption like this is becoming too common.
"It erodes public confidence, undermines the strength of our democracy and threatens the very integrity of our government," said Janice Fedarcyk of the FBI.
If convicted the maximum penalty Cordaro faces is a $7.8 million fine and 364 years in prison.
Munchak faces a maximum of a $3 million fine and 193 years in prison if he is convicted.
Late Tuesday afternoon Lackawanna County Commissioners Mike Washo and Corey O'Brien released the following statement: "What we learned today brings disappointment to our community. Now that it is a law enforcement matter that is in the court system, it is time for both the government and the defendants to have a fair opportunity to present their cases. It would be inappropriate for us to comment any further."
A federal grand jury Tuesday morning returned that 40-count indictment against Bob Cordaro and A.J. Munchak, charging them with using their roles as county commissioners to make money illegally.
In a 56-page federal indictment former Lackawanna County Commissioner Cordaro and current Lackawanna County Commissioner A.J. Munchak are facing 40 criminal counts for allegedly using their official positions for illegal financial gain with both accepting at least $450,000.
"The indictment alleges that both Mr. Cordaro and Mr. Munchak engaged in racketeering, fraud, extortion, bribery and federal tax violations," said U.S. Attorney Dennis Pfannenschmidt. "The unethical behavior alleged in today's indictment will not be tolerated."
The charges were announced at 2 p.m. at the federal courthouse in Scranton to a packed room and followed a joint investigation involving the U.S. Attorney's office, the FBI and the Internal Revenue Service.
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Pfannenschmidt said the investigation started during the trial for Scranton businessman Charles Costanzo in 2007. He is serving time for stealing $600,000 from Lackawanna County. The indictment alleges Cordaro not only knew Costanzo stole the money, the two men used part of the cash for trip to the Playboy mansion in California in 2005.
From there, the FBI and the IRS began to investigate.
"Public officials must comply with the same laws as the citizens they were elected to serve," said Troy Stemen of the Internal Revenue Service.
The indictment also alleges Cordaro told the county's transit system, COLTS, to fire a company that was given a contract for the intermodal transportation system and hire another company instead. That new company paid $90,000 to Cordaro and Munchak.
The two are also accused of strategically using their votes as commissioners to buy the cell tower at the Lackawanna County 911 center in 2005 after entering an agreement with people who built the tower. Cordaro received $14,000 as a kickback, according to prosecutors.
The indictments state from 2003 to 2004 Cordaro also accepted thousands in cash for allowing companies to keep their contracts to do work at the Wilkes-Barre/Scranton International Airport.
"Mr. Cordaro and Mr. Munchak asked for the public's vote of confidence when they ran for office. The citizens gave them their trust and in return, their vow was to return honest services to citizens of Lackawanna County. This indictment alleges that they violated this trust," said U.S. Attorney Dennis Pfannenschmidt.
Outside the courthouse public outrage was heard.
"It makes me think that there's been a lot of hanky panky under cover here and it's coming to the forefront. I think it's long overdue," said Joe Talamini of Scranton.
FBI officials said corruption like this is becoming too common.
"It erodes public confidence, undermines the strength of our democracy and threatens the very integrity of our government," said Janice Fedarcyk of the FBI.
If convicted the maximum penalty Cordaro faces is a $7.8 million fine and 364 years in prison.
Munchak faces a maximum of a $3 million fine and 193 years in prison if he is convicted.
Late Tuesday afternoon Lackawanna County Commissioners Mike Washo and Corey O'Brien released the following statement: "What we learned today brings disappointment to our community. Now that it is a law enforcement matter that is in the court system, it is time for both the government and the defendants to have a fair opportunity to present their cases. It would be inappropriate for us to comment any further."
