Nov 11, 2003 By Josh Krysak 4 min read

PERRY TWP. – After waiting for more than two years for action on alleged abuses found by an independent audit in 2000 of the township’s finances from 1997 to 1999, supervisors will finally get some satisfaction next week. According to Jim Garrett, a spokesperson for the U.S. District Attorney’s Office, the investigation was passed to the Federal Bureau of Investigation and that action is imminent.

“We do expect that there will be a proceeding in court pertaining to that matter on Tuesday, Nov. 18, at 1:30 in front of Federal Judge Cercone in this courthouse in Pittsburgh,” Garrett said. “I am not at liberty to give any specific information because it is not in the public record.”

The supervisors voted last week to hire Davis and Davis law firm as special counsel to the township in the fraud investigation, after not receiving word on the status of the investigation for over two years.

According to Supervisor A.J. Boni, after the audit was completed and abuses were found, the township turned the information over to District Attorney Nancy Vernon. He said it is imperative for the township’s budgets each year to know if the money can be recouped or if it is lost.

“Either clear the names or file the charges,” Boni said. “Someone has to make it happen or not happen.”

The audit, conducted by Cypher and Cypher public accountants in 2000, found that internal controls had failed, checks were paid out of incorrect funds and payroll taxes went unpaid. In addition, the report found that former Supervisor Rich Uhrin, in his capacity as secretary-treasurer, was overpaid $359,225 and current supervisor Adam Muccioli was overpaid $36,126 for his former position as township roadmaster. Muccioli has rarely attended township meetings since 2002 and his term will expire next year.

The township, which remains under investigation by the Internal Revenue Service for unpaid taxes, accrued a total debt of $1.3 million in the late 1990s.

This is the second time this year that the township has attempted to recoup the alleged misappropriated funds. In April, the township had Solicitor Mike Macko begin legal action to recover the overpaid money.

Boni said Davis and Davis will work for the township at a cost not to exceed $3,000 to see that charges are filed, but noted that if action is taken in federal court next week, the counsel could be dropped.

He said that a meeting is scheduled with the legal firm and Vernon for Wednesday, Nov. 12, to discuss the investigation. And while Boni said action should have been taken long ago, he realizes that Vernon has been hamstringed by government agencies.

“The district attorney has been trying to cooperate, but this thing is just like the Energizer rabbit, it keeps going and going,” Boni said.

Vernon said Friday that when the case was initially turned over to her, she contacted the White Collar Division of the state police and that the investigation then was passed to the FBI and the U.S. District Attorney’s office. She said that her role in the investigation became secondary after federal agencies assumed jurisdiction.

She said that she has been in contact with the township about the investigation and that she is writing letters to the U.S. Attorney’s office to try to discover what the status of the investigation is. She contends that she, just like the township, has not been privy to the specifics of the investigation and that criticism of her office about the length of the investigation has been unjustified.

“We try to run for public office and be honest and do our job,” Vernon said. “I have been working on this. I knew what they (federal agencies) were working on, but I did not know when an arrest would be made.”

Boni and current Supervisor Janet Galla have worked to gain control of the township’s finances after they spiraled out of control in the late 1990s. Last week, the township adopted a tentative budget that does not include a tax increase and one that provides for some new equipment and funding for the ambulance service for the first time. The township will still carry $41,000 in debt over into next year and remains in fiscal limbo with the IRS debt, which remains on appeal.