As released by the U.S. Department of Justice.

Peter J. Smith United States Attorney.

Middle District of Pennsylvania.

The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that criminal charges were filed against Pennsylvania Coin, LLC, a Pennsylvania corporation, in U.S. District Court in Williamsport yesterday.

According to United States Attorney Peter Smith, Pennsylvania Coin, LLC is charged in a one-count Information with conspiracy to commit money laundering between January 2007 and October 2012. Allegedly, Pennsylvania Coin, LLC maintained and operated illegal video gambling devices in establishments in Luzerne, Lackawanna, Susquehanna, Wayne and Wyoming counties in northeastern Pennsylvania. Patrons at the establishments received cash payments based on credits; Pennsylvania Coin LLC received fees from the owners of the establishments and allegedly split proceeds from the use of the gambling devices with owners of establishments.

Pennsylvania Coin, LLC allegedly used its share of the proceeds to pay employees and maintain the devices, established accounts at financial institutions where the proceeds were deposited and co-mingled the illegal funds with legitimate business income to conceal the nature, source and amount of the proceeds from the illegal gambling activity, in violation of the federal anti-money laundering statute.

The charge arises out of the seizure of 288 illegal gambling devices and over $77,000 in U.S. currency from 180 business establishments in October 2012 by agents of the Internal Revenue Service, Criminal Investigations Division in conjunction with the Pennsylvania State Police Bureau of Liquor Control Enforcement as part of a joint investigation.

Filed simultaneously with the Information is a plea agreement which is subject to approval of the Court. The plea agreement provides that Pennsylvania Coin, LLC will enter a guilty plea and forfeit to the government $1,427,866 and the 288 seized gambling machines.

Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.

In this case, the maximum penalty under the federal statute is a fine of $500,000 and a five-year term of probation. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors when sentencing. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence.

Photo/Natalie Cake

As released by the Office of the Governor.

Harrisburg – Governor Tom Corbett today announced that Department of Community and Economic Development (DCED) Secretary C. Alan Walker has determined that Westfall Township’s status as a distressed municipality is rescinded under Act 47.

“Today we recognize the positive steps taken by Westfall Township to get its fiscal house in order and exit Act 47,” Gov. Corbett said. “With fiscal distress in the rearview mirror, this community can look to the future as we continue to build healthy communities in a stronger Pennsylvania.”

The Westfall Board of Supervisors requested rescission from Act 47, stating that the township is able to meet its expenses and provide essential services to residents and therefore, is no longer a distressed municipality. Sec. Walker has determined that Westfall Township has met the criteria for a rescission of its Act 47 status as provided for in both Section 253 and the Policy Statement of the Act.

Westfall Township was designated as distressed under Act 47 on April 14, 2009. The determination followed the township filing a Voluntary Chapter 9 Bankruptcy Petition in the United States Bankruptcy Court for the Middle District of Pennsylvania on April 10, 2009 due to an unfavorable judgment to resolve 20 years of legal, financial, zoning and other disputes with local real estate developers in the amount of more than $20 million.

Working with the Act 47 Plan coordinator and DCED, the township and the real estate developers reached a settlement which required the township to fund a sewage pumping station for the developers and to incorporate several of the developers’ requests in their comprehensive plan. Additionally, judgment was reduced to $6 million, without interest, payable in 80 quarterly installments of $75,000 each.

Accordingly, on June 4, 2010, Judge Thomas of the United States Bankruptcy Court for the Middle District of Pennsylvania issued a Final Decree Closing Chapter 9 and discharging Westfall from bankruptcy. In the subsequent four years, DCED worked to stabilize the township as it continued to implement the plan for its financial recovery. Westfall Township continues to meet the terms of the settlement and has substantially implemented all provisions of its recovery plan. Therefore, all conditions which led to the earlier determination of municipal financial distress are no longer present in the Township of Westfall.

Sec. Walker made the decision after a thorough review of audits and financial data and the record from a public hearing held on June 9, 2014.

The Municipalities Financial Recovery Act, Act 47 of 1987, was enacted to provide a broad-based program of fiscal management oversight, technical assistance, planning and financial aid to municipalities experiencing severe fiscal distress. For more information on Act 47, visit www.newPA.com or call 1-866-466-3972.

Photo/Natalie Cake

Discussion on the cost of operating Capital Area Transit (CAT).

Chief Clerk Chad Saylor.

The general cost of operations has gone nowhere but up, since 2012..:

George Hartwick.

A top heavy part to the administration.

Chief Clerk Chad Saylor.

Capital Area Transit is the most expensive transit system, it has the biggest staff, and has some of the highest fares.