Former state Senate Democratic Leader Robert J. Mellow steered Pennsylvania Turnpike contracts to favored vendors, required turnpike staff to tap vendors for campaign contributions and took unreported limousine rides to New York Yankees games paid for by PNC Bank, according to a grand jury presentment outlining new state charges he faces.
Mr. Mellow, 70, was part of a years-long pattern of corruption at the Pennsylvania Turnpike Commission spearheaded by his chief of staff, Tony Lepore, and the commission's former chief executive officer, Joseph Brimmeier, its former chief operating officer, George Hatalowich, and its former chairman, Mitchell Rubin.
Read the presentment HERE
Mr. Brimmeier, Mr. Rubin, Mr. Hatalowich and Mr. Mellow were among eight people charged in the case. Also charged were Melvin Shelton and Raymond Zajicek, two former turnpike commission employees; and two vendors, Dennis Miller, a vice president of Ciber Inc., a computer consulting firm, and Jeffrey Suzenski, owner of Commonwealth Consulting Services Inc. and part owner of Twin County Construction. Mr. Lepore received immunity from prosecution and is not charged.
The new charges were announced Wednesday at a Capitol news conference by state Attorney General Kathleen G. Kane and State Police Commissioner Frank Noonan, both from Lackawanna County, like Mr. Mellow.
"The grand jury found that these men were using the Turnpike to line their pockets and to influence elections," Mrs. Kane said. "That is stealing from the public, pure and simple."
Prosecutors said Mr. Mellow will probably return to Harrisburg next week for arraignment on the charges and a preliminary hearing.
The state grand jury investigation of the turnpike commission started in 2009 when now-Gov. Tom Corbett was the attorney general, Mr. Noonan said, and continued over 44 months and two grand juries.
Mr. Lepore's and the turnpike officials' mission was to ensure the commission hired vendors who contributed to the campaigns of Mr. Mellow and other top politicians such as former state Sen. Vincent Fumo of Philadelphia and former Gov. Ed Rendell, according to the presentment and campaign finance records.
Efforts to obtain comment from Mr. Mellow's lawyers were unsuccessful.
Mr. Mellow is serving a 16-month sentence in a South Carolina federal prison camp after pleading guilty last year to conspiracy to commit mail fraud and filing a false tax return. Mr. Fumo is serving a 61-month federal prison sentence on separate corruption charges.
On the state charges, Mr. Mellow faces up to 51 years in prison if convicted and sentenced to the maximum penalty on all charges. Such a sentence almost never happens.
Mr. Rendell issued a statement denying knowledge of what went on.
"I have not read the indictment nor was I aware of any inappropriate activity. I am saddened by this news, because Joe Brimmeier made significant improvements in the operation of the Pennsylvania Turnpike during his tenure," Mr. Rendell said.
Neither Mr. Rendell, nor Mr. Fumo nor any other politicians besides Mr. Mellow were named specifically in the presentment.
Mrs. Kane said they were not named because investigators did not come up with evidence of wrongdoing.
Mr. Noonan said Mr. Mellow is the only lawmaker charged because the grand jury heard evidence that Mr. Mellow personally made phone calls and heard Mr. Lepore's testimony.
"He's (Mellow) the one with evidence of a direct link," he said. "The people who were charged are the people we have evidence against."
The connections to Mr. Rendell and Mr. Fumo were the most prominent in the presentment and were gleaned by comparing campaign contributions referred to in the presentment to campaign finance records and by other descriptions in the presentment.
For example, Mr. Fumo is described as the "very, very powerful ... minority chairman of the Senate Appropriations Committee," the post he held for years before he was convicted and sent to prison. Mr. Rendell's identity is obvious because Mr. Brimmeier was appointed to his post by the governor on Feb. 4, 2003, two weeks after Mr. Rendell was sworn in as governor.
Mr. Mellow, as Senate leader, and Mr. Fumo, from his appropriations post, had enormous power over the turnpike because the Senate has a say in who is appointed to the commission, according to the presentment.
Mr. Mellow in particular used that power, sometimes through Mr. Lepore, sometimes himself, to raise tens of thousands of dollars in political contributions from turnpike officials and vendors, according to the presentment.
Mr. Lepore described the commission as "a cash cow."
"It's a huge organization with vendors with deep pockets and their commissioners are approved by the Senate," he told the statewide investigating grand jury that issued the presentment. "It's as simple as that."
Mr. Mellow, he said, played a key role in the process.
"Bob Mellow, on the other hand, would call (commission officials) up and say, 'Hey, guys, I need $20,000 for this event. I have a picnic. I need $12,000. You're going to buy three foursomes for my golf outing and five signs and furthermore, I want you to put a dinner together for me with some of your vendors and I'll be there next Tuesday,'" Mr. Lepore told the grand jury. "I mean there's no ifs, ands, or buts about it."
Mr. Brimmeier understood the relationship with Senate leaders, and played a pivotal role in awarding contracts and fundraising, Mr. Lepore said.
"He came to our office and said, 'Hey, you were with me when I was sort of down and out, and I'm going to be with you.'" Mr. Lepore testified. "He and I had a relationship. He said, 'Tony (Lepore), Bob Mellow, I'm your guy. You come to me.'"
Mr. Lepore regularly called Mr. Brimmeier's cellphone and they met at the turnpike offices or "most often would meet Brimmeier with Mellow in their Senate offices."
Mr. Brimmeier, whom the presentment said "carried a great deal of water for Sen. Mellow and the Senate Democrats," wasn't the only one who helped Mr. Mellow. Sometimes, the senator went to Mr. Rubin, who "would get a plum job for somebody," Mr. Lepore testified.
Mr. Mellow's other involvement in the pay-to-play scheme was when he and Mr. Lepore intervened to get PNC Bank a share of bond work issued by the commission, according to the presentment. Banks earn fees for underwriting the issuing of bonds, which are sold by banks to raise money for construction and other projects.
A PNC official had complained to Mr. Mellow in 2005.
"They had gone to Bob Mellow about this time and said, 'Hey, Bob Mellow, we've never got any work from the turnpike ever. We're the largest bank in Pennsylvania,'" Mr. Lepore told the grand jury.
"Bob Mellow was especially tight with one of the PNC regional presidents ... (Mr. Mellow said) 'Go to the turnpike and get PNC some work,'" Mr. Lepore said, according to the presentment. "He used a little different language. Sure enough, you start seeing in 2005, PNC Bank for the first time pops up on this and starts getting bigger and bigger bumps from the turnpike."
Unlike Mr. Lepore's quote, the presentment does not refer to a "PNC regional president," but instead refers to a regional vice president and an employee in PNC's capital markets division who met with Mr. Mellow on Nov. 30, 2005, with "subsequent meetings on March 20, 2009, and Feb. 20, 2010."
The PNC regional vice president testified that he and Mr. Mellow developed a "personal friendship" in 2003.
"They were basically best friends," Mr. Lepore said. "Bob Mellow was the biggest Yankee fan you ever met in your entire life. He lived and breathed it. (PNC) bought like a partial season pass to the Yankees, fifth row behind the dugout."
Mr. Lepore said he knew this because he went to a game once.
"He (the regional vice president) would take Mellow 10 times a year, maybe more," Mr. Lepore said. "He would put him in a limo, take some of Mellow's boys with him. They would go up to a game, eat and drink at the game ... He (the regional vice president) was a huge supporter of his and was rewarded in a big way."
Though Mr. Lepore testified that PNC would take Mr. Mellow to Yankees games 10 times a year, a summary of expense reports provided to the grand jury by PNC shows 10 games in all between April 2006 and April 2010. Based on the dates provided by PNC, an Aug. 19, 2006, game against the Boston Red Sox, was in Boston while another, April 27, 2009, was against the Detroit Tigers in Detroit, according to the online Baseball Almanac.
The 10 games cost PNC $3,084.85.
PNC also spent $153.25 on a limousine on Oct. 10, 2007, to New York City for a dinner honoring an unidentified "casino owner/Scranton area businessman"; $202.74 for an event at Sparks Steak House in New York on Dec. 7, 2007; $39 for a "Thanksgiving holiday order" in November 2008; and dinner at Mariano's Cucina on May 27, 2009, for $22.45.
The total for those events and the games was $3,502.29.
Besides those events, PNC also provided Mr. Mellow with tickets to Rod Stewart and Bryan Adams concerts and a Dancing with the Stars event at then-Wachovia Arena.
The bank also sponsored an event at Sparks Steak House honoring Mr. Mellow "to generate support for Mr. Mellow's contemplated (2010) run for governor." That cost the bank $7,082.34.
Between June 2006 and November 2012, PNC earned $2,480,677 in fees for underwriting turnpike bonds.
Mr. Mellow never reported that cost as an in-kind contribution as required, engaged in a conflict of interest by going to the games and other entertainment and "participated in a larger pattern of bid-rigging, improper influence and commercial bribery in his efforts to steer turnpike bond work to PNC Capital Markets," according to the presentment.
Contact the writer: bkrawczeniuk@timesshamrock.com-âNov 3, 1970: Robert J. Mellow elected to state Senate, defeating Republican incumbent Sen. Arthur Piasecki.
-âNov. 6, 1974: Mellow wins re-election to his state Senate seat, defeating F. Eugene Garvey.
-âJan. 8, 1975: Mellow opens a regional office at 541 Main St., Blakely.
-âNov. 7, 1978: Mellow wins re-election to his third term, beating Leona Lenczycka.
-âDec. 8, 1980: Mellow elected secretary of Senate Democratic Caucus.
-âJune 12, 1981: Mellow has been named as an interim member of Senate Ethics Commission.
-âNov. 2, 1982: Mellow wins re-election in an uncontested race.
-âMarch 25, 1984: Allied Services announces it would name an adult day care facility Robert J. Mellow Center.
-âSept. 5, 1984: Mellow named chairman of statewide Democratic committee.
-âNov 20, 1984: Mellow elected Senate Democratic Caucus chairman.
-âNov. 4, 1986: Mellow wins fifth term of office, beating Robert Castellani.
-âNov. 18, 1986: Mellow re-elected caucus chairman.
-âNov 14, 1988: Mellow elected Democratic minority leader.
-âMay 15, 1989: Mellow and Louis Pagnotti III are elected to board of directors of Old Forge Bank.
-âNov. 6, 1990: Mellow wins re-election over Donna Dunio.
-âNov. 23, 1992: Mellow elected Senate president pro tempore.
-âMarch 15, 1994: Mellow replaced as Senate president pro tem by Sen. Robert Jubelirer.
-âNov. 8, 1994: Mellow wins re-election.
-âNov. 3, 1998: Mellow re-elected to his eighth term in office by beating Glenn Cashuric.
-âFeb. 13, 1999: Lackawanna Junior College board announces school's theater will be named Mellow Theater in honor of state Sen. Robert and Diane Mellow.
-âNov. 5, 2002: Mellow wins re-election to his ninth term, defeating Frank J. Scavo III.
-âJuly 29, 2005: Mellow announces Northeastern Pennsylvania Medical Education Consortium has started a feasibility study for a medical school in Scranton.
-âSept. 15, 2006: Marywood University dedicated Robert J. Mellow Center for Athletics and Wellness.
-âNov. 7, 2006: Mellow wins re-election to his 10th term.
-âJuly 29, 2008: Mellow joins board of directors of Blue Cross of Northeastern Pennsylvania.
-âNov. 17, 2008: Group calls for an ethics investigation into Mellow's appointment to Blue Cross board.
-âJuly 13, 2009: Rent paid by Mellow on his district office in Blakely being questioned after it was discovered that his then-wife, Diane, was part owner of a business that owned property and then in 2007 he bought her ownership stake in business as part of their divorce.
-âSept. 20, 2009: A ethics probe started by state Ethics Commission to look into ownership of Mellow's Blakely office building.
-âDec. 21, 2009: Senate panel tosses ethics complaint made by RockTheCapital.org on Mellow being on Blue Cross board.
-âDec. 22, 2009: Senate panel tosses a request for an ethics probe into ownership of Blakely office.
-âFeb. 9, 2010: Mellow announces he will not seek re-election.
-âJune 18, 2010: FBI and IRS agents raid Mellow's office and home.
-âFeb. 18, 2011: 3rd U.S. Circuit Court of Appeals confirms that Mellow target of a federal grand jury investigation looking into fraud, money laundering and other offenses.
-âMarch 15, 2012: Mellow says he will plead guilty to mail fraud and filing a false tax return.
-âNov. 30, 2012: Mellow sentenced to 16 months in a federal prison and to repay $79,806.17 and $40,000 fine and a $100 special assessment.
-âJan 18, 2013: Mellow reports to a federal correctional institution in Williamsburg, S.C to begin serving his sentence.
-âMarch 13, 2013: Mellow indicted along with seven other individuals by State Attorney General Kathleen Kane for "pay to play" scheme involving Pennsylvania Turnpike.