Kids for cash scandal
![An image showing the large domed Luzerne County Courthouse in Wilkes-Barre as seen from across the Susquehanna River](http://upload.wikimedia.org/wikipedia/commons/thumb/c/c3/LuzerneCountyCourthouseRiverCommons.jpg/300px-LuzerneCountyCourthouseRiverCommons.jpg)
The kids for cash scandal centered on judicial kickbacks to two judges at the Luzerne County Court of Common Pleas in Wilkes-Barre, Pennsylvania, US.[1] In 2008, judges Michael Conahan and Mark Ciavarella were convicted of accepting money in return for imposing harsh adjudications on juveniles to increase occupancy at a private prison operated by PA Child Care.[2]
Ciavarella disposed thousands of children to extended stays in youth centers for offenses as trivial as mocking an assistant principal on
In the wake of the scandal, the Supreme Court of Pennsylvania overturned hundreds of adjudications of delinquency in Luzerne County.[9] The Juvenile Law Center filed a class action lawsuit against the judges and numerous other parties,[10] and the Pennsylvania state legislature created a commission to investigate juvenile justice problems in the county.[11]
Investigations
The FBI and the
The Pennsylvania Supreme Court decided to uphold Lokuta's removal from the bench in January 2011, finding she had received a fair trial, regardless of Conahan's testimony. It also ordered the expungements of the records of 2,401 of those juveniles who were affected.[21][22]
Charges and pleas
A statement from the
The U.S. Attorney charged that in 2002 Conahan, who at the time was President Judge of the court, used his authority to remove funding for the county-operated facility. The judges were alleged to have received "millions of dollars" in payments for the completion of a binding agreement between the court and the private facilities, co-owned by attorney Robert Powell, to use their services and the subsequent closing of the county facility.
Original, negotiated plea agreements called for both judges to serve up to seven years in prison, pay fines and restitution, and accept responsibility for the crimes.
Following the plea withdrawals, on September 9, 2009, a federal grand jury in Harrisburg, Pennsylvania returned a 48-count indictment
Robert Powell, an attorney at the time and co-owner of the two juvenile facilities at the heart of the scandal, pleaded guilty on July 1, 2009, to failing to report a felony and being an accessory to tax evasion conspiracy, in connection with $770,000 in kickbacks he paid to Ciavarella and Conahan in exchange for facilitating the development of his juvenile detention centers.[31][32][33] The Pennsylvania Supreme Court temporarily suspended Powell's law license on August 31, citing his criminal conviction.[34] Several years later, in early 2015, after tending his resignation on January 7, he was disbarred by the state supreme court in the state of Pennsylvania on 23 January, the disbarment was made retroactive to the date of his suspension on August 31, 2009.[35]
Robert Mericle, the prominent real estate developer who built the two juvenile facilities, pleaded guilty on September 3, 2009, to failing to disclose a felony. Mericle had failed to tell a grand jury he had paid $2.1 million to Ciavarella and Conahan as a finder's fee. As part of his plea, Mericle agreed to pay $2.15 million to fund local children's health and welfare programs. Mericle faced up to three years in prison and a $250,000 maximum fine.[36][32][37][38] Mericle was released from federal custody in 2015 after serving a one-year sentence.[39]
Sandra Brulo, the former deputy director of Forensic Services for the Luzerne County Juvenile Probation Office, agreed to plead guilty in March 2009 to federal obstruction of justice. Those charges stemmed from actions Brulo took after she became aware she had been named in the federal civil action. Brulo backdated her recommendation of a placement she made concerning a juvenile defendant in September 2007, and changed her original recommendation of placement to probation.[40]
Criminal verdicts and sentences
![](http://upload.wikimedia.org/wikipedia/commons/thumb/f/f8/Mark_Ciavarella.jpg/220px-Mark_Ciavarella.jpg)
On February 18, 2011, following a trial, a federal jury convicted Ciavarella on 12 of the 39 remaining counts he faced including racketeering, a crime in which prosecutors said the former judge used children "as pawns to enrich himself." In convicting Ciavarella of racketeering, the jury agreed with prosecutors that he and Conahan had taken an illegal payment of nearly $1 million from a youth center's builder, then hid the money.[41]
The panel of six men and six women also found Ciavarella guilty of "
Following Ciavarella's conviction, he and his lawyer appeared on the steps of the courthouse to give an impromptu press conference. The press conference was interrupted by Sandy Fonzo, whose son Edward Kenzakoski died by suicide in June 2010 after Ciavarella adjudicated him to placement, despite Kenzakoski's first-time offender status.[42]
On August 11, 2011, Ciavarella was sentenced to 28 years in federal prison as a result of his conviction.[43] He is currently being held at the Federal Correctional Institution, Ashland, a low-security federal prison in eastern Kentucky.[44] He is scheduled for release on June 18, 2034, when he would be 84 years old.[45] Ciavarella appealed his conviction to the Third Circuit and it was rejected on July 25, 2013.[46]
However, Ciavarella has continued to appeal, contending that the Supreme Court's decision in the
On September 23, 2011, Conahan was sentenced to 17+1⁄2 years in federal prison after pleading guilty to one count of
On November 4, 2011, Powell was sentenced to 18 months in federal prison after pleading guilty to failing to report a felony and being an accessory to tax conspiracy. He was incarcerated at the Federal Prison Camp, Pensacola, a low-security facility in Florida, and was released from a halfway house on April 16, 2013.[50][51][52] On August 10, 2015, a judge approved a $4.75M settlement agreement for Powell, for having paid kickbacks related to the adjudication of at least 2,400 juveniles.[53]
Robert Mericle's sentencing in connection with his guilty plea for failing to report a felony was delayed pending his anticipated testimony in the bribery trial of former Congressman and Pennsylvania State Senator
On October 1, 2019, Ciavarella was disbarred on consent from the practice of law by the Commonwealth of Pennsylvania.[59]
Victim lawsuits
Acting under a rarely used power established in 1722 and reserved for extraordinary circumstances, known as "King's Bench jurisdiction",[60] the Pennsylvania Supreme Court appointed Senior Judge Arthur Grim of the Berks County Court of Common Pleas as special master to review all juvenile cases handled by Ciavarella on February 11, 2009.[61] He returned with his findings in an interim report dated March 11, 2009. He recommended that all adjudications handed down by Ciavarella from 2003 to 2008 be vacated, and that the affected juveniles' records be expunged. He concluded that due to Ciavarella's disregard for the juveniles' constitutional rights, as well as the kickbacks, no one who appeared before Ciavarella in that period had a truly impartial hearing.[62] On March 26, 2009, the Supreme Court approved Grim's recommendations and ruled that Ciavarella had violated the constitutional rights of thousands of juveniles, and initially hundreds of juvenile adjudications were ordered overturned.[63][64]
A class action lawsuit was filed by the Juvenile Law Center on behalf of the juveniles who were adjudicated delinquent by Ciavarella despite not being represented by counsel or advised of their rights. Besides naming Ciavarella and Conahan, the suit seeks damages under the civil portion of the Racketeer Influenced and Corrupt Organizations Act (RICO) against the judges' spouses and business associates, shell companies, youth center officials, and Luzerne County.[65][66] Three other federal lawsuits filed on behalf of the victims have been consolidated with the Juvenile Law Center lawsuit into a master class action.[67] An amended master complaint was filed on August 28, 2009.[68]
In June 2010, an injunction was filed on behalf of PA Child Care, Western PA Child Care, and Mid Atlantic Youth Services, the companies that provided treatment programs at the youth centers, to prevent the ordered destruction of thousands of juvenile records on the grounds the records are needed for the defense's case.[69]
On July 8, 2013, a three-judge panel of the
The builder and the owner of the private detention centers, Robert Mericle,
Interbranch Commission on Juvenile Justice
In the aftermath of the federal charges and defendant pleas, the
In signing the legislation on August 7, 2009, Governor
In popular culture
The scandal was featured in
The scandal has inspired several fictional works. The
See also
- Incarceration in the United States
- Judicial corruption
- Prison-industrial complex
- Private prison
- PA Child Care
References
- ^ a b Urbina, Ian (March 27, 2009). "Despite Red Flags, Judges Ran Kickback Scheme for Years". The New York Times. Retrieved January 25, 2018.
- ^ "United States Court of Appeals for the Third Circuit No. 11-3277: United States of America v. Mark Ciavarella, Jr., Appellant" (PDF). United States Courts. May 24, 2013. Retrieved January 25, 2018.
- ^ Chen, Stephanie (February 23, 2009). "Pennsylvania rocked by 'jailing kids for cash' scandal". CNN. Retrieved January 25, 2018.
- ^ a b c "Federal Officials Announce the Filing of Federal Fraud and Tax Charges Against Two Luzerne County Common Pleas Courts Judges in an On-going Public Corruption Probe". U.S. Department of Justice. January 26, 2009. Archived from the original on September 1, 2009. Retrieved January 25, 2018.
- ^ a b Kosik, Edwin (July 30, 2009). "Memorandum and Order, United States District Court for the Middle District of Pennsylvania" (PDF). The New York Times. Retrieved September 14, 2018.
- ^ Morgan-Besecker, Terrie (September 10, 2009). "Ex-judges hit with 48 counts". Times Leader. Retrieved January 25, 2018.
- ^ "Former Luzerne judge Conahan sentenced to 17.5 years". The Scranton Times-Tribune. September 23, 2011. Archived from the original on September 25, 2011. Retrieved January 25, 2018.
- ^ "Pennsylvania judge gets 28 years in 'kids for cash' case". NBC News. August 11, 2011. Retrieved January 25, 2018.
- ^ "Court Tosses Convictions of Corrupt Judge". CBS News. Associated Press. March 26, 2009. Retrieved January 25, 2018.
- ^ "H.T. et al. v. Mark A. Ciavarella, Jr., et al". Juvenile Law Center. Retrieved January 25, 2018.
- ^ "Governor Rendell Signs Bill Creating Commission to Probe Juvenile Justice System". PR Newswire. August 7, 2009. Archived from the original on 2009-09-02. Retrieved January 25, 2018.
- ^ Echols, Noah (March 22, 2010). "State Failed to Investigate Complaints in Juvenile Court Kickback Scandal". Juvenile Justice Information Exchange. Retrieved December 7, 2016.
- ^ a b Sisak, Michael R. (December 12, 2009). "Lokuta says conduct board kept Conahan allegations under wraps". The Citizens' Voice. Archived from the original on December 14, 2009. Retrieved December 7, 2016.
- ^ "Luzerne County". Juvenile Law Center. April 27, 2009. Archived from the original on April 12, 2010. Retrieved May 2, 2009.
- ^ a b Hall, Peter; Strupczewski, Leo (January 28, 2009). "Judges to Serve More Than Seven Years in Prison After Pleading Guilty in Kickbacks Probe". The Legal Intelligencer. Retrieved August 26, 2009.
- ^ Strupczewski, Leo; Hall, Peter (February 9, 2009). "Rumors Intensify About Investigation Into Allegations of Luzerne County Case-Fixing". Pennsylvania Law Weekly. Archived from the original on January 31, 2013. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (November 5, 2008). "Board: Lokuta violated ethics". Times Leader. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (August 8, 2009). "Witnesses back Lokuta claim of conspiracy". Times Leader. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (March 26, 2009). "Ruling: Keep Lokuta seat off ballot". Times Leader. Retrieved August 27, 2009.
- ^ "Judge Michael T. Toole Sentenced in Federal Court". FBI Archive website. April 7, 2011.
- ^ Janoski, Dave (January 15, 2011). "Former judge Lokuta still off the bench". The Citizen's Voice. Retrieved December 7, 2016.
- ^ Lash, John (April 12, 2013). "Prisons are no Place for Profit". Juvenile Justice Information Exchange. Retrieved December 7, 2016.
- ^ "United States of America v. Michael T. Conahan and Mark A. Ciavarella, Jr., Defendants" (PDF). U.S. Department of Justice for the Middle District of Pennsylvania. January 26, 2009. Archived from the original (PDF) on October 19, 2012. Retrieved September 12, 2009.
- ^ Urbina, Ian (July 31, 2009). "Plea Agreement by 2 Judges Is Rejected In Pennsylvania". The New York Times. Retrieved August 27, 2009.
- ^ Strupczewski, Leo; Grezlak, Hank (August 21, 2009). "Former Pa. Judges Ask for Reconsideration of Rejected Pleas". The Legal Intelligencer. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (August 25, 2009). "Judges withdraw guilty pleas". Times Leader. Retrieved August 25, 2009.
- ^ "Indictment – USA v. Conahan and Ciavarella" (PDF). September 9, 2009. Archived from the original (PDF) on March 4, 2016. Retrieved April 1, 2021.
- ^ Morgan-Besecker, Terrie (September 10, 2009). "Ex-judges hit with 48 counts". Times Leader. Retrieved September 11, 2009.
- ^ "Two Former Luzerne County Court of Common Pleas Judges Indicted on Racketeering, Fraud, Money Laundering, Tax and Related Charges" (PDF). U.S. Attorney's Office, Middle District of Pennsylvania. September 9, 2009. Archived from the original (PDF) on March 4, 2011. Retrieved September 10, 2009.
- ^ Morgan-Besecker, Terrie (September 16, 2009). "Ex-jurists plea, still free Magistrate judge declines to raise bail. Federal prosecutors see Conahan, Ciavarella as flight risks". Times Leader. Retrieved October 5, 2009.
- ^ Sisak, Michael (July 1, 2009). "Powell pleads guilty". The Scranton Times-Tribune. Retrieved August 26, 2009.
- ^ a b Dale, Maryclaire (August 14, 2009). "Luzerne builder latest to admit guilt in scandal". The Morning Call. Associated Press. Archived from the original on September 3, 2009. Retrieved August 26, 2009.
- ^ "United States v. Robert Powell". The United States Attorney's Office, Middle District of Pennsylvania. Retrieved August 25, 2009.
- ^ Lewis, Edward (September 2, 2009). "Pa. court suspends Powell's law license". Times Leader. Retrieved September 6, 2009.
- ^ "Powell resigns, Disbarred in Pennsylvania" (PDF). January 23, 2015.
- ^ Janoski, Dave (August 14, 2009). "Mericle will plead guilty in kids-for-cash scandal". The Citizens' Voice. Retrieved 11 December 2015.
- ^ "United States v. Robert K. Mericle". The United States Attorney's Office, Middle District of Pennsylvania. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (September 3, 2009). "Mericle pleads guilty". Times Leader. Retrieved September 3, 2009.
- ^ "Robert Mericle released from federal prison". The Scranton Times-Tribune. April 30, 2015. Retrieved October 1, 2015.
- ^ "United States v. Sandra Bruno". The United States Attorney's Office, Middle District of Pennsylvania. Retrieved August 25, 2009.
- The Philadelphia Daily News. Archived from the originalon July 26, 2011. Retrieved February 21, 2011.
- ^ "Mom blames son's suicide on Luzerne County judge in 'kids for cash' case". The Patriot-News. Associated Press. February 22, 2011. Retrieved 17 September 2014.
- ^ Rubinkam, Michael (August 12, 2011). "Ex-judge given 28-year sentence". The Boston Globe. Associated Press. Retrieved September 14, 2018.
- ^ Halpin, James. "Ciavarella requests hearing in effort to get new trial". The Citizen's Voice. Retrieved December 15, 2015.
- ^ "Mark A. Ciavarella". Federal Bureau of Prisons. Archived from the original on October 4, 2013. Retrieved July 8, 2012.
- ^ "Court Denies Ciavarella Appeal". The Scranton Times-Tribune. July 25, 2013. Retrieved September 17, 2014.
- ^ D'Annunzio, P. J. (August 8, 2017). "Ciavarella Wants to Use 'McDonnell' in Acquittal Bid". The Legal Intelligencer. Retrieved August 9, 2017.
- ^ Halpin, James (January 9, 2018). "Judge rules in Ciavarella's favor in kids-for-cash appeal". The Citizens' Voice.
- ^ "Kids-for-cash judge released from prison over virus concerns". AP News. June 23, 2020. Retrieved July 11, 2020.
- ^ "Kids-for-cash financier Powell assigned to Fla. prison camp". The Scranton Times-Tribune. December 28, 2011. Archived from the original on April 26, 2012. Retrieved July 8, 2012.
- ^ "Robert J. Powell". Federal Bureau of Prisons. Retrieved July 8, 2012.[permanent dead link]
- ^ "Powell released from Florida halfway house". The Citizen's Voice. April 16, 2013. Archived from the original on May 29, 2014. Retrieved April 27, 2013.
- ^ "Pennsylvania jail owner to pay youths $4.75m". The Boston Globe. August 13, 2015. Retrieved September 14, 2018.
- ^ Morgan-Besecker, Terrie (November 23, 2010). "Grand jury indicts Sen. Raphael Musto for allegedly accepting kickbacks". Times Leader. Retrieved April 28, 2018.
- ^ Mocarsky, Steve (November 23, 2010). "Musto denies any wrongdoing". Times Leader. Retrieved April 28, 2018.
- ^ "Obituary: Senator Raphael J. Musto". Times Leader. May 28, 2014. Retrieved May 28, 2014.
- ^ "Robert Mericle Sentenced to One Year in Prison". U.S. Attorney's Office. April 25, 2014. Retrieved May 28, 2014.
- ^ "Raphael J. Musto". Bureau of Prisons Inmate Locator.
- ^ "Court document" (PDF). pacourts.us. 1 October 2019. Retrieved 27 June 2023.
- ^ "AOPC Chief Counsel Testifies on "King's Bench" Authority as an Important Safety Valve" (PDF). Administrative Office of Pennsylvania Courts. August 3, 1995. Archived from the original (PDF) on September 26, 2011. Retrieved August 27, 2009.
- ^ Morgan-Besecker, Terrie (February 12, 2009). "Judge picked to review Ciavarella juvenile cases". Times Leader. Retrieved August 27, 2009.
- ^ Grim, Arthur (March 11, 2009). "First Interim Report and Recommendations of the Special Master" (PDF). Supreme Court of Pennsylvania. Retrieved August 27, 2009. [dead link]
- ^ "Court Tosses Convictions Of Corrupt Judge". CBS News. March 26, 2009. Retrieved May 2, 2009.
- ^ Learn-Andes, Jennifer (March 27, 2009). "Juvenile records to be erased". Times Leader. Retrieved August 27, 2009.
- ^ "Juvenile Law Center Files Federal Class Action Complaint on Behalf of Affected Luzerne County Children and Families". Juvenile Law Center. February 26, 2009. Archived from the original on September 1, 2009. Retrieved August 26, 2009.
- ^ "Juvenile Law Center Adds Luzerne County as a Defendant in Federal Class Action Lawsuit". Juvenile Law Center. April 27, 2009. Archived from the original on September 1, 2009. Retrieved August 26, 2009.
- ^ Sisak, Michael (June 11, 2009). "Attorneys agree to a consolidated lawsuit against Ciavarella, Conahan". The Citizen's Voice. Retrieved September 6, 2009. [dead link]
- ^ "Amended Master Complaint" (PDF). Juvenile Law Center. August 27, 2009. Archived from the original (PDF) on September 21, 2010. Retrieved September 9, 2009.
- ^ "Juvie papers' destruction blocked". Times Leader. June 10, 2010. Retrieved July 2, 2010.
- ^ "Opinion of the Court Nos. 12-2016, 12-2132" (PDF). United States Court of Appeals for the Third Circuit. June 28, 2013. Retrieved August 1, 2013.
- ^ "Former Judges in Pennsylvania 'Kids for Cash' Scandal Must Pay $206 Million in Damages". www.prisonlegalnews.org.
- ^ Rubinkam, Michael (August 18, 2022). "Two 'kids for cash' judges from Pennsylvania ordered to pay more than $200 million". The Philadelphia Inquirer. Lenfest Foundation. Retrieved 18 August 2022.
- ^ "House Bill No. 1648". The Pennsylvania General Assembly. June 25, 2009. Retrieved August 26, 2009.
- ^ a b "Governor Rendell Signs Bill Creating Commission to Probe Juvenile Justice System". Pennsylvania Office of the Governor. August 7, 2009. Archived from the original on September 2, 2009. Retrieved August 26, 2009.
- ^ Swift, Robert (August 21, 2009). "Juvenile justice commission's first meeting set for next week". The Citizen's Voice. Archived from the original on September 2, 2009. Retrieved August 26, 2009.
- ^ "Democratic leaders name nationally recognized expert to Interbranch Commission on Juvenile Justice". Pennsylvania House Democratic Caucus. August 17, 2009. Archived from the original on February 22, 2014. Retrieved August 28, 2009.
- ^ Swift, Robert (August 7, 2009). "Rendell to sign legislation creating corruption commission". The Citizen's Voice. Archived from the original on September 2, 2009. Retrieved August 26, 2009.
- ^ Drees, Rich (February 18, 2011). "Judge Featured In Moore's 'Capitalism: A Love Story' Found Guilty Of Racketeering". Film Buff Online. Retrieved February 6, 2014.
- ^ "The 'Kids for Cash' Scandal from 'Capitalism: A Love Story'". Vimeo. Retrieved September 14, 2018.
- ^ "Kids for Cash (2013)". IMDb. Retrieved September 17, 2014.
- ^ Rickey, Carrie (February 4, 2014). "Movie Review: Kids for Cash". Phillymag.com. Retrieved May 1, 2014.
- ^ "Kids For Cash: Inside One of the Nation's Most Shocking Juvenile Justice Scandals". Democracy Now!. February 4, 2014. Retrieved May 1, 2014.
- ISBN 9781595586841.
- ^ "CNBC's 'American Greed' will feature kids-for-cash scandal". The Citizen's Voice. January 10, 2014. Retrieved June 3, 2014.
- ^ Trongo, Rachel (2012). "Review: CSI: New York — 'Crossroads'". CSI Files.com. Retrieved September 14, 2018.
- ^ "One Big Happy Family". IMDb. Retrieved April 15, 2019.
- ^ Brasch, Walter (December 21, 2009). "Ripped from the Headlines: Greed, Corruption, and Hate Crimes in Northeastern Pennsylvania". The Public Record. Archived from the original on October 12, 2013. Retrieved November 16, 2012.
- ^ "TV show mirrors area legal headlines". Times Leader. May 7, 2009. Retrieved November 16, 2012.
- Standard-Speaker. Retrieved November 16, 2012.
- ^ Alston, Joshua (March 28, 2016). "Bobby buries one of his own in a solid but empty Billions". The AV Club. Retrieved March 28, 2016.
- ISBN 9781250104618.
External links
- Mid Atlantic Youth Services official website
- Luzerne County Update Center, Juvenile Law Center
- Interbranch Commission on Juvenile Justice, archive of activities including final report