SCRANTON — From his start as Scranton mayor in 2014, Bill Courtright used the highest office in City Hall for pay-to-play shakedowns, federal law enforcement officials charge.
Courtright brazenly directed unnamed city representatives to hold up licenses, permits or contracts to extort cash and campaign contributions from entities doing business in or with the city, according to those officials.
Over five years, tens of thousands of dollars of ill-gotten cash ended up in a safe in Courtright’s West Mountain home, delivered by intermediaries.
The corruption only came to a halt Jan. 9, when FBI agents raided Courtright’s home and City Hall.
The accusations were made public Monday in a federal charging document called a criminal information and its companion plea agreement. Courtright agreed to plead guilty today to felonies of criminal conspiracy, extortion and bribery.
In light of the FBI raids five months ago, the charges and plea did not come as a surprise to city officials. But they expressed shock as charging documents revealed an apparent culture of corruption.
“This is a terrible day for the city of Scranton,” Councilman Bill Gaughan said.
Councilman Kyle Donahue added, “It’s unprecedented and it’s a sad day. He came in (to office) and felt entitled to that, which is unbelievable, too.”
‘Quid pro quo’
Courtright and unindicted co-conspirators associated with the Friends of Bill Courtright Campaign Committee shook down individuals and entities conducting business in or with the city, federal officials charge.
Courtright threatened economic harm to those entities — and made good on his threats with adverse official actions — to obtain payments, campaign contributions and other property.
For example, Courtright demanded a $4,000 bribe from the firm that collects the city’s delinquent taxes and trash fees, called “Company No. 1,” in exchange for the city continuing the contract.
Northeast Revenue Service of Plains Twp. collects the city’s delinquent taxes and garbage fees. Efforts to reach John Rodgers, president of Northeast Revenue Service, were unsuccessful.
“At the direction of Courtright, the $4,000 cash payment was hand-delivered to an intermediary, who accepted the corrupt payment on behalf of Courtright,” the criminal information says.
Courtright also directed one or more city representatives to halt development projects of a friend and supporter of a former unspecified mayor, and who did not donate in 2013 to Courtright’s first mayoral campaign. That person was identified as “Person No. 2.”
The federal document says Person No. 2 was the owner and manager of a company that developed commercial and residential properties in the city and needed occupancy permits, contractor’s licenses and other official authorizations from the city’s Licensing, Inspections and Permits Department.
Several of Person No. 2’s projects were halted and only allowed to proceed after that person agreed to give financial support to Courtright.
The mayor demanded from Person No. 2 a payment of $5,000, which came in the form of $2,500 in cash and $2,500 in a campaign contribution. That campaign donation was made by check Jan. 4, 2018, as a “quid pro quo” for Courtright helping Person No. 2 obtain a contractor’s license from the LIP department, and for the mayor to assist with official actions “as specific opportunities arose.”
According to public campaign finance records, developer Arthur Russo was the only campaign contributor to give $2,500 on Jan. 4, 2018.
Russo issued a statement to The Times-Tribune saying, “As a lifelong city resident and a downtown business developer, I applaud the investigation and efforts of the U.S. Attorney’s Office and the FBI. We all have a civic duty to make our hometown a better place for families and businesses to thrive.”
‘Cash in a safe’
Courtright also targeted other unnamed people who owned or operated businesses that sought licenses, grants, services, contracts and other things of value from city offices, obtaining cash, campaign contributions and other valuable property, the court papers say.
During the raid of his home five months ago, federal agents said they discovered Courtright “stored thousands of dollars in cash in a safe at his residence,” part of which was ill-gotten money paid to the mayor.
Along with obtaining tens of thousands of dollars in cash, Courtright also obtained from unspecified persons and entities the use of property at an unspecified beach, installation of a staircase and framing at his business, Summit Karate Club in West Scranton, and landscaping at his West Mountain home.
As part of the conspiracy, Courtright insulated himself by using intermediaries to accept bribes, generally ranging from $1,000 to $4,000 at a time, and pass them to him.
The plea agreement calls for Courtright to forfeit $36,750. It’s not clear if this is the total amount illegally obtained.
Courtright’s attorney signed the plea agreement June 26; U.S. attorneys signed it June 27 and Monday.
‘It’s a mess’
City LIP Director Patrick Hinton said he was not surprised that his department figures into the situation.
“I’m sure part of it does deal with the (LIP) office,” Hinton said. “I wish I could give you more information, but I’m not going to comment (further). I’m not surprised.”
Asked if he conducted any illegal actions, Hinton said no.
“It certainly wasn’t me, I could assure you of that,” Hinton said.
He declined to comment on whether he had been aware of any corrupt acts. He said he cooperated with federal authorities in terms of answering any questions they had or providing any information they sought, but said he was not a behind the scenes cooperating witness.
“Some of the events have been very unpleasant. I certainly didn’t do any wrongdoing,” Hinton said. “Because of my position, unfortunately, I was kind of in the middle of this ugliness that was going on.”
“For me, doing the right thing, I paid the price for it,” Hinton continued.
He said he could not be more specific about the right thing he did. As for paying a price, he would only say it involved a lot of things that affect him outside of his job in City Hall.
Hinton also said he and the other cabinet members know they potentially could be let go from their positions by a new mayor.
“Yeah, I could sure be out of a job,” Hinton said. “It’s a mess. It’s a mess.”
‘Immense setback’
Monday’s developments began with Courtright informing city council in a letter delivered around 1:30 p.m. that he planned to resign.
“As of 4 p.m. today, I hereby resign from my position as Mayor of the City of Scranton,” Courtright wrote in the letter.
Efforts to contact Courtright and his attorney, Paul Walker, were unsuccessful.
Shortly after 3 p.m., the U.S. Attorney’s Office issued a statement saying Courtright is scheduled to appear in federal court at 9 a.m. today in Williamsport.
In that same statement, the U.S. Attorney’s Office also announced a press conference today at 2 p.m. at the William J. Nealon Federal Building and Courthouse in Scranton.
At City Hall on Monday, business mostly went on as usual, but some Courtright confidantes were visibly shaken.
Dabbing tears from their eyes, the mayor’s secretaries, Kay Garvey and Maureen McNichols, declined to comment.
City Business Administrator David Bulzoni said he was shocked and disappointed at the allegations in the indictment. Bulzoni has known Courtright for 45 years.
“We worked so hard to move the city forward, to really gain a measure of respect for the city throughout the state, which had been lacking for quite some time,” Bulzoni said. “This is an immense setback ... we still have to get up and go to work. There is still work to be done. Our jobs are to continue to improve the city.”
If the allegations regarding Northeast Revenue Service are true, the city must evaluate its relationship with the company, Bulzoni said.
JOSEPH KOHUT, TERRIE MORGAN-BESECKER, SARAH HOFIUS HALL and JON O’CONNELL, staff writers, contributed to this report.
Contact the writer:
jlockwood@timesshamrock.com;
570-348-9100 x5185;
@jlockwoodTT on Twitter
Scranton Mayor Bill Courtright agreed to plead guilty to the following charges:
• Attempt to obstruct commerce by extortion under color of official right, which carries a maximum sentence of 20 years in prison and a $250,000 fine.
• Bribery concerning programs receiving federal funds, which carries a maximum sentence of 10 years in prison and a $250,000 fine.
• Conspiracy to commit offenses against the United States, which carries a maximum sentence of five years in prison and a $250,000 fine.
Defendants rarely receive the maximum sentence, which typically is imposed only on those who have an extensive criminal record. There is no agreement on sentencing, but the government has agreed to recommend a lighter sentence.
A judge also can reject the plea deal. Courtright will not be permitted to withdraw his plea if he is unhappy with the sentence.
— TERRIE MORGAN-BESECKER
The rise and fall of Scranton Mayor Bill Courtright
Nov. 2003: Bill Courtright, a Democrat and owner of Summit Karate School, is top vote-getting in winning election to a four-year term on City Council to run 2004-2007. He and another newcomer, Janet Evans, form a new majority on council with then-current Councilman Gary DiBileo.
Nov. 2007: Courtright wins reelection to a second, four-year term on Scranton City Council, for the years 2008-11.
Nov. 2009: Courtright wins election to a four-year term as Scranton City Tax Collector, with the term to run 2010-13.
Nov. 2013: Incumbent Mayor Chris Doherty, a Democrat, does not seek reelection. Courtright wins election to a four-year mayoral term by easily defeating Republican Jim Mulligan.
Jan. 2014: Pledging to reinvent Scranton’s city government and asking for patience and cooperation during difficult times ahead, Courtright is sworn in as the city’s 30th person to serve as mayor since 1866. He introduces outside financial advisor Henry Amoroso of New Jersey, who was hired by the Greater Scranton Chamber of Commerce at the request of Courtright to assist the city at no cost to the city.
April 2014: Courtright calls his first 100 days baptism by fire, for being beset by various problems, including a big water main break, three sizable snowstorms, in quick succession, disagreements with city authorities, and a burst pipe in City Hall.
2015: Courtight and his administration renegotiate police and fire union contracts that finally resolves a long court battle over long overdue backpay the unions previously won a few years earlier in court against Doherty.
2016: Courtright and his administration complete monetizations of the parking and sewer systems, both major planks of the city’s Act 47 recovery plan. The parking deal also resolves the city’s disastrous 2012 default on Scranton Parking Authority debt.
2017: With major recovery initiatives either completed or underway, the city’s Act 47 recovery coordinator, Pennsylvania Economy League, eyes an eventual successful exit from Act 47 oversight. PEL also credits the city’s fiscal turnaround to the Courtright administration and newer councils, and the overall marked departure from the prior City Hall political war between Doherty and Janet Evans-led councils.
November 2017: Courtright wins reelection to a second, four-year mayoral term by again defeating Mulligan. This term is to run 2018-21.
Jan. 2019. The FBI raids City Hall and Courtright’s home on West Mountain. After a few days of swirling rumors, Courtright says he is not resigning and retained an attorney. That attorney, Paul Walker, issues a statement saying the mayor has fully cooperated with law enforcement authorities in the matter, which the mayor and Walker believe to be related to campaign finances.
June 2019: Courtright dispels rumors he will resign upon being indicted on June 18, 2019, three days after his daughter’s wedding on June 15, 2019.
July 1, 2019: Court documents posted on the federal court docket system at about 3:20 p.m. show that Courtright has agreed to plead guilty to charges of bribery, extortion and criminal conspiracy. Earlier, in a one-sentence letter, Courtright informed City Council around 1:30 p.m. that he will resign on July 1 at 4 p.m. Shortly after 3 p.m., the U.S. Attorney’s Office announced Courtright would appear in federal court in Williamsport on July 2 on a pending court matter. The U.S. Attorney’s Office and FBI also scheduled a press conference about Courtright for July 2 at 2 p.m. in Scranton.