Both controller candidates have filed for bankruptcy
When Democratic Fayette County voters head to the polls on May 15 to choose between Fayette County Controller Mark Roberts and challenger Sean P. Lally, they will be selecting between two Uniontown Democrats who have each filed for bankruptcy. While Roberts’ 1998 bankruptcy filing initially came to light during his initial 1999 campaign, Lally’s 2004 bankruptcy filing was brought to the attention of the media earlier this week when a package containing the bankruptcy petition was mailed to a reporter at the Herald-Standard. Written in ink on the bottom of the first page of Lally’s 18-page mailed petition is CC: Mark Roberts.
When contacted to comment, Roberts said he did happen to “stumble across” Lally’s bankruptcy, but said he did not send it to the newspaper. Roberts said a copy of the document was also received at the controller’s office.
Roberts said he found it ironic that Lally’s supporters have been calling a local radio talk show to discuss Roberts’ bankruptcy and now it is revealed that Lally filed bankruptcy as well. “The hypocrisy is so thick you have to cut it with a knife,” Roberts said.
When called to discuss the issue, Lally confirmed he filed bankruptcy, but added that Roberts filed bankruptcy as well. Lally said he took a risk when he opened his own business (Lally Construction) and suffered financially after having a bad year without contracts. “I did what I had to do to protect my family. It was my constitutional right to protect a way of life,” Lally said.
Lally, who has a wife and three children, added that he doesn’t see what the correlation is between his and Roberts’ filing. Lally filed for Chapter 7 bankruptcy along with his wife Jill S. Lally.
Roberts, who is now married with a son, filed bankruptcy as an individual prior to his marriage. At the time, Roberts owned a home he was unable to sell or rent. Roberts’ bankruptcy initially came to light when current Democratic Fayette County Commissioner candidate John “Toots” Croftcheck, who was running and an Independent candidate against Roberts at the time, used Roberts’ filings to advance his claim that Roberts lived in Allegheny County during the one-year period that he was required to live in Fayette County in order to be a qualified candidate for the office. The Fayette County Election Bureau ruled that Roberts could remain on the ballot, and he won the election.
Both bankruptcies were filed in the United States Bankruptcy Court Western District of Pennsylvania. On the summary of schedules, Roberts’ petition listed total assets of $88,820 and total liabilities of $118,440. Lally’s petition stated $39,765 in total assets and $154,221 in total liabilities.
Roberts said one glaring difference between his and Lally’s petitions is the fact that his liability amount is one third greater than his assets, while Lally’s liabilities were nearly four times his assets. “My assets included a house I was unable to sell, while my opponent’s debts were nearly four times his assets and included no homes because he shielded seven properties that he owns,” Roberts alleged.
According to the Fayette County property assessment Web Site, Read Inc., which is listed on Lally’s bankruptcy as a company he is part owner in, owns five properties in the county, including Lally’s 21 Cleveland Ave. home.
Lally said he didn’t want to get negative. “Yes, it’s public record. Yes, I own rental properties but I am only a 33 percent owner and only have to list 33 percent of (those) assets,” Lally said.
On Lally’s petition, he lists that he owns “33 1/3 shares of stock in Read Inc. (1/3 interest with Charles and Clara Lally) Stock value is $0. Corporation has no equity in any rental properties which it owns.”
On the separate Schedule D listings for Roberts and Lally, which include creditors holding secured claims, Roberts listed a total amount of $90,000, including a two-bedroom townhouse and 1998 Jeep Grand Cherokee. Lally listed a 2002 Ford F-150 pickup truck and a 2003 Nissan Altima with values totaling $40,575 for his secured claims.
Robert’s total amount of unsecured nonpriority claims total $28,440, while Lally’s unsecured nonpriority claims total $113,646.
Roberts said Lally’s filing shows more than $70,000 in credit card debit alone. How do you run up over $70,000 in credit card debt before you file bankruptcy?” Roberts asked. He added that two government student loans of more than $32,000 are also listed on Lally’s bankruptcy.
Roberts, who unsuccessfully attempted to have Lally thrown off the ballot by challenging Lally’s nomination petitions earlier this year, said Lally can’t tell the truth. Roberts said Lally testified in court that he owns his home and has lived in it for 11 years, and yet the home was not listed on the bankruptcy petition. “The guy can’t tell the truth and yet he’s making me out to be the bad guy,” Roberts said.
Lally said his rental business does own his home and it was listed on his bankruptcy. He added that student loans must be listed on a bankruptcy, but they are not discharged. “I own my home as president of Read Inc. and it was listed under the business name. I’ve done nothing improper at all,” Lally said.
Lally admitted he had $70,000 in credit card debt, but said as a business owner sometimes you have to take a risk. “Sometimes things don’t work out. Does that make me a bad person?” Lally asked. He said all of his accounts are current and bankruptcy was the opportunity to regroup and move his business in a positive direction. “I’m not trying to hide anything,” Lally said.
Roberts said he knew that as Lally’s bankruptcy came to light, Roberts’ own problem in that area would be discussed as well. “I don’t want this hashed out in the newspaper but I think it’s time the voters learn what he’s about,” Roberts said. “It’s time for the naysayers to either admit filing bankruptcy has nothing to do with supervising tax dollars from a legal perspective or acknowledge that his is far worse than mine is.”
Lally pointed out that in 2004, the year he filed bankruptcy, 2,249 people filed bankruptcy in Fayette County alone, and nationally it was more than 66,000.
The controller is the chief financial officer of the county.