Area lobbyist charged with stealing over $ 100K from businesses
Jacob Hanchar planned to double the size of his North Side company, Digital Dream Labs, after he learned last year that it was receiving more than $ 400,000 in state grants.
He would go from eight to 16 employees and be able to launch new products.
But early this year, when he had still not received any money, Mr. Hanchar became suspicious. He repeatedly asked his lobbyist, whom he had paid $ 17,000, what was happening.
“Is it safe to start hiring?” Mr. Hanchar said he asked Joseph Kuklis, of Wellington Strategies.
“Yeah, yeah, go ahead,” he said Mr. Kuklis answered. “Start growing your company.”
But Mr. Hanchar had an uneasy feeling. He contacted the Department of Community and Economic Development in March and learned there were no grants for him. In fact, the only record of any kind, Mr. Hanchar learned, was a grant application for the company in 2017 — and it had been denied.
Now, Mr. Kuklis, the lobbyist, has been charged by the state Attorney General’s office with stealing more than $ 100,000 from a number of small businesses, which also included Millie’s Homemade Ice Cream and Pittsburgh Technical College.
Other companies affected include Blank Concrete and Supplies, Innovatus Imaging and IRA Logix Inc.
Mr. Kuklis, 48, of Upper St. Clair, turned himself in Tuesday and was released on his own recognizance following arraignment. He faces a preliminary hearing Aug. 27.
He is charged with one count of running a corrupt organization, six counts of deceptive or fraudulent business practices, six counts of forgery, and four counts of theft by deception.
Phone and email messages left for Mr. Kuklis were not returned.
According to the AG’s office, Mr. Kuklis operates Wellington Strategies, which offers government consulting services. He is accused of charging several small business owners a consulting fee in exchange for a promise to obtain grant funding for them through DCED.
Mr. Kuklis then forged documents to make it appear the businesses applied for, and won, the grants, investigators said.
However, when the companies attempted to collect the grant funding, they learned from DCED that their applications had, in some cases, not even been submitted.
“He never acted like he was in over his head,” Mr. Hanchar said.
He said he was referred to Wellington by a friend who had received grant money because of Mr. Kuklis’ work.
“I thought this guy was legit,”
Mr. Hanchar said.
He checked Mr. Kuklis’ background and saw he’d once served as deputy state director for former U. S. Sen. Rick Santorum and that he’d been managing director of Duane Morris Government Strategies. Mr. Kuklis also previously owned GSP Consulting, a company that was acquired by Morris.
The affidavit of probable cause against Mr. Kuklis does not describe any motive or identify any use of the money he allegedly stole.
According to the affidavit, Pittsburgh Technical College received a letter from Nov. 30 announcing it had been awarded $ 500,000 in grant funding. When its officials attempted to collect, however, they learned no such grant had been awarded. The complaint stated another grant, from 2017 for $ 150,000, was also fraudulent.
Millie’s Homemade Ice Cream, according to the investigation, was supposed to be awarded a $ 50,000 grant, then learned in May that no such grant existed. IRA Logix was told there was $ 125,000 in grant funding but learned earlier this month that there was no such money.
Innovatus and Bland Concrete letter from DCED, dated May also were 1, 2019. It bore a fake signature told they of DCED Secretary Dennis had received Davin, according to the complaint. grants, the Michael Gerber, a spokesman complaint for DCED, said that said, although when the department became no aware of the allegations, specific it referred the issue to sums were listed. the Office of General Counsel.
All of the letters sent to “No DCED funding was the businesses announcing distributed due to the false the grant awards were fake, award letters,” he said. investigators said. According to the Pennsylvania
As part of the investigation, Department of State the case agent did a Lobbying Directory, Wellington trash pull at Mr. Kuklis’ residence. filed its registration papers Among the items March 18, 2016. The database found was what investigators lists 52 current or former determined was a fraudulent Wellington clients, including Phipps Conservatory, the Clemente Museum, Holy Family Institute, Mario Lemiuex Foundation, Mattress Factory, Mylan, Propel Schools Foundation, Robert Morris University and West Mifflin borough.
Mr. Hanchar, of Digital Dream Labs, said that Mr. Kuklis could have just told him the truth — that his company didn’t win any grants. But he never did.
“I work magic in Harrisburg,” he said Mr. Kuklis told him. “I have secret methods. I know what I’m doing.”
Even up until last week, after he’d been confronted by Mr. Hanchar repeatedly, Mr. Kuklis kept saying the money would come through, Mr. Hanchar said.
“He was just so happy and affable — not at all ruffled. Cool as a cucumber,” Mr. Hanchar said.
In the meantime, Digital Dream Labs, which sold its first product in 2015 and teaches STEM topics to children, is just squeaking by.
“I’m making very serious decisions — like life- changing, hire- and- fire decisions — based on this,” Mr. Hanchar said.