Grand jury report discovers questionable hiring, conflicts involving Penn Hills solicitor
PENN HILLS SCHOOLS FINANCIAL CRISIS
An Allegheny County grand jury that looked into decisions that led to the Penn Hills School District’s financial maelstrom also found questionable conduct by school board members and the district solicitor, according to a separate report.
As the district’s finances declined more than a decade ago, the school board swapped its longtime solicitor for a law firm that provided free legal services and gifts to board members, according to the 22-page second grand jury report that emerged from the initial investigation into the district’s finances.
Board members with potential conflicts failed to abstain from votes or disclose ties to Bruce E. Dice & Associates when they hired the firm in 2007 and in later votes involving the solicitor, the grand jury found.
While the conduct “raises ethical concerns which may rise to potential criminal liability,” the report said, the grand jury did not recommend charges because it said it chose to prioritize the financial investigation, which it described as more pressing. The report instead referred solicitor Craig E. Alexander and his firm to the Pennsylvania Disciplinary Board for investigation.
Jesse Hereda, executive director of the state’s Disciplinary Board, said that the board could not comment on a specific ongoing investigation.
“Should it be determined that sufficient evidence to support
criminal charges exists, we expect these matters will be fully investigated and pursued by the appropriate authorities,” the grand jury report said.
The grand jury also recommended that the current school board adopt a conflict of interest policy requiring members to complete a form disclosing potential conflicts and disclose any violations at a public board meeting.
In response to the report, Chris Capozzi, an attorney representing Dice & Associates, wrote that there was nothing improper about the firm’s hiring, the fees were reasonable and the services posed no conflict. And Mr. Alexander “categorically denies any wrongdoing whatsoever,” Mr. Capozzi wrote in the response.
In December 2007, board member Erin Vecchio began the push to replace the former solicitor, leaving a note on then-superintendent Patricia Gennari’s desk directing her to tell the firm it was fired, the report said.
“Ironically, [Ms.] Vecchio cited a conflict of interest as the reason to terminate the former solicitors, yet the conflict of interest to hire their replacement was ignored by both the board and [Mr.] Alexander,” the report said.
Ms. Vecchio said Wednesday that she did not put that note on the superintendent’s desk and denied any wrongdoing related to the district’s solicitor.
Nevertheless, Ms. Vecchio advocated for Dice & Associates, whose namesake she had seen at political functions, the report said. The board hired the firm without discussing it with all members, the report said.
The district paid numerous types of monthly fees to Dice & Associates, including charges for representation at tax appeal hearings that Mr. Alexander did not attend, the report said.
Several witnesses testified that Mr. Alexander had represented board members and their family members at little or no charge while working for the district, according to the report.
Mr. Dice told investigators that his firm sometimes provided those types of free services but said that he did not believe it posed a conflict as long as the matters did not relate to the district, the report said.
Investigators found that Mr. Alexander represented board members Carolyn Faggioli, Cathy Mowry, Jennifer BurgessJohnson, Don Kuhn Jr. and two of his relatives, the grand jury found. The investigation found only one invoice from those cases, the report said.
The board members could not be reached for comment Wednesday.
In March 2017, Mr. Kuhn was arrested after he ignored a subpoena to appear before the grand jury, the report said. Mr. Alexander went to the judge’s chambers to ask about the arrest, despite his position as district solicitor, according to the report.
Mr. Alexander represented Mr. Kuhn in his divorce between 2007 and 2010 and received a total of $200 for his services, the report said. Mr. Kuhn never disclosed that relationship, the grand jury found.
Ms. Faggioli, who received immunity from prosecutors for her testimony, relied on Mr. Alexander for free legal help after her husband died and later to prepare a will, the report said.
In 2008, Mr. Alexander gave $1,000 to Ms. Faggioli, she told the grand jury. He “told her he was giving her the money because they were ‘friends,’” Ms. Faggioli testified, the report said.
Ms. Faggioli said board members knew they did not have to pay for his services, the report said.
“He knew that by doing favors for members of the board, they would renew his annual contract or vote in his favor,” she said, according to the report. “Although this arrangement was never explicitly discussed, Faggioli testified that it was understood.”
Members said Mr. Alexander provided free counsel to individual members for other legal matters, including a dispute with a credit card company and questions about the restoration of a revoked firearm license, according to
“Based on the appearance of improprieties, we cannot help but question if this fee would have been lower, but for [Mr.] Alexander doing personal business for board members or their families gratis.” — Grand jury report
the report.
From 2007 to December 2017, the firm received more than $1.8 million for its services — “on the higher end of industry standards,” the report said.
“Based on the appearance of improprieties, we cannot help but question if this fee would have been lower, but for [Mr.] Alexander doing personal business for board members or their families gratis,” the report said.