C P M C P M G Feb 06 2013 11:07:19:563PM Post-Gazette G A-1 Y K Y K

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$1.00VTHURSDAY, FEBRUARY 7, 2013 OL. 86, NO. 191 2/7/13 ! FINAL. Police Come August, there will be no more letter delivery Saturdays, but indicative of the troubles besetting the Postal Service, Airport chief’s many people are just shrugging it off doing outside its best, business aviation questioned experts say By Mark Belko City officials say Pittsburgh Post-Gazette The Allegheny County Air- they didn’t know port Authority was doing every- of Harper’s venture thing it could to drum up more flights for Pittsburgh Interna- tional Airport before a shake- By Jonathan D. Silver, up Tuesday that resulted in the Liz Navratil and Rich Lord reassignment of its executive Pittsburgh Post-Gazette director, a top aviation expert said Wednesday. Last year, Pittsburgh police Michael Boyd, chairman of Chief Nathan E. Harper became Boyd Group International, a part of a private security con- Colorado-based aviation consul- sulting firm with a civilian tant, said he doubts that a new police clerk and three of his CEO will do any better than cur- officers, including a sergeant he rent executive director Bradley later promoted to commander. D. Penrod at attracting more Diverse Public Safety Consul- flights. tants LLC was organized Feb. “There isn’t a huge airport 28, 2012, with the chief, then- store out there that hasn’t been Sgt. Eric L. Holmes, Sgt. Barry tapped,” he said. “There aren’t Budd, Officer Tonya Ford and a lot of nonstop flights out there Tamara L. Davis, who works in Lake Fong/Post-Gazette that you haven’t tapped.” the police personnel and finance Mail carrier Ahmad Shareef delivers mail Wednesday in Pittsburgh’s Bloomfield neighborhood. Mr. Boyd, who has served as a office, all listed as organizers, Pittsburghers react to the decision to end Saturday mail delivery in a video at post-gazette.com consultant for Pittsburgh Inter- state documents show. ! national in the past and who According to its website, continues to follow its progress, Diverse Public Safety Consul- said Mr. Penrod is being made a tants provides a wide range scapegoat for frustrations over of services including training airport service levels. security guards, performing On Saturday, the mail will rest After serving as executive background checks, providing director since October 2007 over- executive protection and supply- seeing all aspects of the airport, ing interim police chiefs. By Joe Smydo Service’s announcement Postal Service’s declining fortunes Mr. Penrod is being moved into Chief Harper said Wednesday Pittsburgh Post-Gazette Wednesday that in August it evening that he did not initiate will permanently end Satur- OPERATING PROFITS SEE AIRPORT, PAGE A-3 the formation of the company, During a funding dispute day mail delivery prompted $4 billion it was not active, it was planned with Congress in 1957, U.S. little outcry locally or nation- -$15.9 billion for future use upon retirement Postmaster General Arthur wide — a reflection of the 0 and that it was organized merely E. Summerfield canceled profound cultural shifts in -4 to preserve its corporate name. mail delivery Saturday, recent decades that have left -8 Federally mandated “When they asked me about April 13, and threatened to the agency scrambling to employee benefit School panel doing consulting work I said, end Saturday service alto- find a new, more profitable -12 payments begin ‘Yeah, I agree to do some con- gether. business model. -16 sulting work,’ ” the chief said. Citizens flooded Congress Even senior citizens — ’12’11’10’09’08’07’06’05’04’03’02’01 backs plan Neither Pittsburgh Public with complaints, Summer- arguably the demographic Safety Director Mike Huss nor field got his money, and Sat- with the heaviest reliance TOTAL MAIL VOLUME the mayor’s office was aware of urday service resumed, all on the Postal Service — said 225 billion pieces for Schenley the company’s existence until within a week. “How often they can live without Satur- 200 159.9 billion being informed by the Pitts- does Congress turn on a day mail delivery. 175 burgh Post-Gazette. dime?” marveled Nancy “Keep all the bills till Mon- 150 apartments “Our official response is that Pope, historian and curator day,” quipped Linda Fedorek, none of the individuals on the for the Smithsonian National 66, a retired secretary from 125 incorporated list informed the Postal Museum in Washing- Greenfield. 100 By Eleanor Chute director of public safety of this ton, D.C. ’12’11’10’09’08’07’06’05’04’03’02’01 Pittsburgh Post-Gazette In comparison, the Postal SEE POSTAL, PAGE A-12 Source: U.S. Postal Service Associated Press SEE CHIEF, PAGE A-3 The historic former Pitts- burgh Schenley High School could become luxury apart- ments, if the school board agrees with a recommendation released Congress to get Wednesday to sell the building Corbett hits to PMC/Schenley HSB Associ- classified memo ates for $5.2 million. road selling PMC/Schenley HSB, which was the highest of four bidders, on drone strike will give a public presentation budget plan on its plans at 6 p.m. Feb. 18 at By Michael D. Shear board headquarters. and Scott Shane By Karen Langley Its proposal calls for spending The New York Times Post-Gazette Harrisburg Bureau $36.9 million to create 175 lux- ury apartments with a fitness WASHINGTON — The White HARRISBURG —A day center. The existing gym would House on Wednesday directed after unveiling his budget be used, but potential uses for the Justice Department to release proposal and a long-awaited the pool and auditorium would to the two congressional intel- plan for transportation infra- be determined later. ligence committees classified structure, Gov. Tom Corbett The school board, which documents discussing the legal went beyond the Capitol with is expected to vote Feb. 27, justification for the use of drones his pitch that two years of fis- reserved the right to reject any in targeting U.S. citizens abroad cal discipline — and an eye and all bids. who are considered terrorists. to deregulation — will allow The board will receive public The White House announce- Pennsylvania to increase comment at its regular hearing ment appears to refer to a long, spending. at 6 p.m. Feb. 25. detailed 2010 memo from the On Tuesday, Mr. Corbett, The potential sale has been Justice Department’s Office of Michael Henninger/Post-Gazette photos a Republican, called for a controversial, including the 5-4 Legal Counsel justifying the $28.4 billion state spending vote in September to market the killing of Anwar al-Awlaki, a DAPPER GUYS Pirates outfielder Andrew McCutchen, left, and retired Steelers plan, an increase of $679 mil- building and solicit bids. U.S.-born cleric who had joined receiver Hines Ward walk the red carpet Wednesday during the 77th Dapper Dan Dinner lion from the current fiscal Last month, board members al-Qaida in Yemen. He was killed & Sports Auction at the David L. Lawrence Convention Center, Downtown. Mr. McCutchen year, as well as a package voted 6-3 to hire two firms to get in a CIA drone strike in Septem- was the organization’s sportsman of the year and Mr. Ward received its lifetime designed to raise $5.4 billion an up-to-date estimate on the achievement award. Taylor Schram of Canonsburg, a junior midfielder on the Penn State SEE DRONES, PAGE A-3 soccer team, was sportswoman of the year. Sports, Page C-1, Video at post-gazette.com SEE CORBETT, PAGE A-12 SEE SCHENLEY, PAGE A-12

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direction.” But he noted that Congress the legal memo or memos were not being shared with either Harper’s outside venture questioned of the armed services commit- tees, which have jurisdiction to receive over Pentagon strikes, or the chief, FROM PAGE A-1 in financial interest forms. The Wilson, owner of Stanton Heights- judiciary committees, which “There’s a lot of disclosure forms for 2012 are not based Gold Shield Security. memo on oversee the Justice Depart- business,” said Joanna Doven, due until May 1. Mr. Lamb said Sgt. Hlavac drafted a special ment. spokeswoman for Mayor Luke people in the bureau the chief’s involvement in a ven- report accusing Gold Shield The public should be per- Ravenstahl. “Without having that already have ture with subordinates, though, employees of stepping over the drone strike mitted to see at least a redacted all of the facts, save for what was troubling. line into law enforcement terri- version of the relevant memos, you have informed me of, it is established consulting “Now you have someone in tory. That draft report said that drones, FROM PAGE A-1 Mr. Anders said. “Everyone something we will look into. It is and do consulting authority that has a business Cmdr. Holmes told Sgt. Hlavac has a right to know when the not illegal for employees to have relationship with city subordi- “to leave them alone, they have a ber 2011. Members of Congress government believes it can other businesses.” work. … I didn’t see nates, and I think it raises a lot contract.” have long demanded access to kill Americans and others,” Elizabeth Pittinger, executive of troublesome questions,” Mr. Mr. Wilson, a former city the memorandum. he said. director of the Citizen Police any issue with having Lamb said, regarding “favorit- detective, wrote his own report The decision to release the The Senate Intelligence Review Board, however, ques- them being part of ism, real or perceived” to those to the city’s Office of Municipal legal memos to the intelligence Committee is expected to tioned the arrangement involv- subordinates. Investigations claiming that Sgt. committees came under pres- closely question Mr. Brennan ing officers and their supe- looking at doing He said the promotion of Hlavac derisively called him “a sure, two days after a biparti- about his role in the drone pro- rior and said it was irrelevant consulting work.” Cmdr. Holmes was a good exam- friend of Nate Harper” while san group of 11 senators joined gram. Sen. Ron Wyden, D-Ore., whether the business was cur- ple of the kind of decision that ordering him off Zone 2 station a growing chorus asking for who sits on the committee, said rently operating. — Chief Nate Harper could prompt second-guessing. property. more information about the in a phone interview that he “I think it’s an unethical rela- “Whether it’s related to pay, Questions about the chief’s legal justification for targeted had been working in his office tionship and I think it’s com- promotion or even just basic relationships came to a head killings, especially of Ameri- on questions for Mr. Brennan pletely inappropriate,” she said. Cmdr. Holmes, who heads workplace rules, you kind of call after the November indictment cans. The announcement also about 6:30 p.m. Wednesday, “You have a question about the Zone 2 station, said, ‘I’m not all of those things into question of Arthur Bedway, longtime came on the eve of the con- when Mr. Obama called him using the accoutrements of your going to talk to you about that. when you have this kind of [busi- chairman of Victory Security, firmation hearing scheduled and said, “effective immedi- public position for private gain,” You need to talk to my attorney ness relationship] going on in the who was accused of mail fraud, today for John Brennan, Presi- ately, he was going to make the Ms. Pittinger said. “You have about that.” He did not go into workplace,” he said. bribery and conspiracy in rela- dent Barack Obama’s choice to legal opinions available, and the issue of creating a hostile further detail before ending the City Councilman Bill Peduto, tion to a 2007 city contract. be director of the CIA, who has he also hoped that there could work environment where you conversation. also a mayoral candidate, Federal prosecutors have said been the chief architect of the be a broader conversation.” have subordinates, and that’s Efforts to reach the other declined comment. that Mr. Bedway, 63, of Robinson, drone program as Mr. Obama’s Mr. Wyden has repeatedly very messy. That’s very, very organizers of the corporation “I have never heard of it,” said and former city systems analyst counterterrorism adviser. called upon the administra- messy. The question of a promo- Wednesday evening by phone, city Councilwoman Teresa Kail- Christine Kebr, 56, of Castle Until Wednesday night, the tion to release its legal memo- tion is based on what? Is there email and at their homes were Smith. “I wonder what our pol- Shannon, involved an unnamed administration had refused randums laying out the scope some quid pro quo thing going unsuccessful. icy is on that. If they don’t have a third person in the creation of even to officially acknowledge and limits of what the execu- on here?” Sgt. Budd, 47, is a 23-year vet- policy, maybe they should.” the firm Alpha Outfitters. the existence of the documents, tive branch believes it has the Chief Harper said he did not eran who works at headquar- News of the chief’s involve- That firm got a $327,000 con- which have been reported power to do in national secu- believe it was a problem to be ters on the North Side in police ment in a private security start- tract to install and maintain about in the media. This week, rity matters, including the involved in a private business intelligence. Officer Ford, 43, is up comes after more than a year computers and radios in city NBC News obtained an unclas- targeted killing of a citizen. venture with other officers. He a 23-year veteran who works for during which his relationships police vehicles. sified, shorter legal memo, Earlier Wednesday, at a Demo- also said the arrangement had Assistant Chief Maurita Bry- with that industry have drawn Ms. Kebr has pleaded guilty to described as a “white paper,” cratic retreat in Annapolis, nothing to do with Cmdr. Hol- ant. Chief Harper said he went scrutiny. conspiracy and admitted to tak- that officials said described the Md., he had vowed to “pull out mes’ promotion from sergeant in to high school with her mother, In September 2011, the Post- ing $6,000 in bribes in relation legal framework that officials all the stops to get the actual August. Kim Montgomery, another civil- Gazette reported that Cynthia to the contract, while Mr. Bed- follow in using the drones. legal analysis, because without “With their expertise, their ian who works in the police Harper, the chief’s wife, for a way has pleaded not guilty. Both Administration officials it, in effect, the administration teaching skills I didn’t see a bureau. Cmdr. Holmes, 43, has period of time had worked for appeared before the grand jury said Mr. Obama had decided to is, in effect, practicing secret reason not to,” the chief said. been on the job for 15 years. And Carnegie-based Victory Secu- in late January. take the action — which they law,” hinting at a potential fili- “There’s a lot of people in the Ms. Davis, 46, a chief clerk, has rity, and sometimes cited access Chief Harper has denied described as extraordinary buster of Mr. Brennan. [police] bureau that already worked for the city for 25 years. to the chief as a marketing point. receiving any money from Mr. — out of a desire to involve Mr. Wyden said committee have established consulting and Ms. Davis’ name appears Mrs. Harper previously worked Bedway or being involved in the Congress in development of members would have immedi- do consulting work. Once again, at the top of the incorporation as a Pittsburgh police officer formation of Alpha Outfitters. the legal framework for the ate access to the documents, I didn’t see any issue with hav- papers along with her email and until 2004. use of drones. Aides noted that and that there would be a pro- ing them being part of looking at her home address in the Hill Dis- In late September, some offi- Jonathan D. Silver: jsilver@ Mr. Obama had made a pledge cess for other senators to read doing consulting work.” trict. cers’ concerns over the chief’s rela- post-gazette.com or 412-263-1962. to do that during an appear- them eventually as well. It was The 59-year-old chief said When the incorporation tionship to private security firms Liz Navratil: lnavratil@post- ance on “The Daily Show” last not clear whether lawmak- he was unaware that a website papers first were sent to the came into the open when Sgt. gazette.com, 412-263-1438. Rich year. ers’ legal aides would also be was up and running. By early Pennsylvania Department Eugene Hlavac became involved Lord: [email protected] or “Today, as part of the presi- allowed to read them. Wednesday evening, the site had of State, they did not include in a confrontation with Donald 412-263-1542. dent’s ongoing commitment He said the administration’s been taken down. He also said Chief Harper’s name. The state to consult with Congress on decision to allow lawmakers he did not know why the address rejected the form because it national security matters, the “to finally see the legal opin- listed in state papers for the busi- lacked the signature page, state president directed the Depart- ions” was an “encouraging ness — 100 River Road in McKees department spokesman Ronald ALL-Wheel Drive. ment of Justice to provide the first step, and what I want to Rocks — was chosen. The phone Ruman said. congressional intelligence see is a bipartisan effort to number listed on the website is The form was resubmitted committees access to classi- build on it, particularly right disconnected, and a different Feb. 28, this time with Chief ALL Brands. fied Office of Legal Counsel now, when the lines are blur- business is at the address. Harper’s name typed in below advice related to the subject ring between intelligence Richard Mongiovi, who owns the others’ names. Ms. Davis’ Just $199/mo. of the Department of Justice agencies and the military.” 100 River Road, said he had never Burrows Street address is white paper,” said an adminis- The congressional intel- heard of the business nor did he crossed out, and the River Road tration official, who requested ligence committees were cre- know any of its organizers. He address is written in by hand. anonymity to discuss the han- ated in the late 1970s to exer- said he rents a building there to Five signatures by the “organiz- dling of classified material. cise oversight after a series of a lumber and building-supplies ers” appear — including Chief The official said intelligence scandals at the spy agencies. firm. Harper’s. No company titles committees members would The law requires that the “There’s been no earnings are attached to the organizers’ now get “access” to the docu- committees be kept informed basically in this and once again names. ments. of intelligence activities. But it’s basically just nothing there City Controller Michael Lamb, Christopher Anders, senior most administrations with- as of yet. Hopefully, in the future, who is running for mayor, said legislative counsel for the hold at least some legal opin- but as far as having clients going he knows of nothing forbidding American Civil Liberties ions, treating them as confi- out there, customers, there’s the chief from forming a busi- Union, called the president’s dential legal advice to the pres- nothing there,” Chief Harper ness, as long as it is disclosed move “a small step in the right ident and agency officials. said. AVAILABLE MODELS VARY BY BRAND. SEE DEALER FOR DETAILS. OFFER EXPIRES 02-28-13. Aviation leaders say frustration misdirected airport, FROM PAGE A-1 done in concert with the busi- retires the midfield terminal ness community and others. He debt. Macy’s Optical the new position of president said that is how the airport was Dennis Davin, an airport and chief strategy officer, where able to attract Southwest Air- authority board member, said he will concentrate on the opera- lines and JetBlue to Pittsburgh. that the changes at the top were tional side. “I don’t believe any one per- made to try to “increase the com- The authority plans to con- son can miraculously generate petitive position of the airport,” duct a national search for a CEO new air service unless there are particularly given the economic whose focus will be on attract- passengers to fill the aircraft,” development that is occurring ing flights. County Executive he said, adding that Pittsburgh there along with the anticipated Rich Fitzgerald said that the “has relatively good air service Marcellus Shale drilling and the % changes were made because for a community of its size.” millions of dollars in revenue it of frustration on the authority Part of the problem has been should bring. board and in the business com- that some businesses contin- He said it makes sense to hire * munity over the level of service, ued to support US Airways, someone to focus on attracting Reg. which has dropped dramatically the region’s dominant carrier, flights while all of that other prices since US Airways eliminated its when new airlines came into activity is taking place. off Pittsburgh hub in 2004. the market with lower fares, he But Mr. Boyd said the blame said. US Airways would match Mark Belko: mbelko@post- 5Owith complete pair purchase is being misplaced. the new carrier’s fare and busi- gazette.com or 412-263-1262. “Having a human sacrifice nesses would continue to use US will not bring you one more Airways rather than fly the new flight and that’s exactly what airline. • all frames just happened,” he said. Making it even more diffi- corrections For airlines, adding flights cult is that airlines are not in a &clarifications is strictly a bottom-line busi- growth pattern right now. Mr. • all lenses ness decision — either market Boyd said there will be 200 fewer demand justifies it or it doesn’t, airplanes and 2 percent fewer Page One. The solicitor for he and other experts said. seats in the sky this year than in the Allegheny County Airport • all lens options “You’ve got a free market 2012. In Pittsburgh, the number Authority is Mike Wojcik. that will make its own decisions of seats will drop by 1.7 percent His first name was incorrect about flights. That demand will compared to last year. Wednesday in a story about a ultimately drive carriers to fur- “Pittsburgh has done every- shake-up at the authority. plus receive an nish service,” said William R. thing it can to get as much ser- Lauer, an Allegheny Capital Inc. vice as it can. To imply that the extra 1O % off principal who has followed the current management is falling If you have a correction and airline industry for years. down on the job is entirely inac- cannot reach the responsible when you present this ad. While route adjustments by curate,” Mr. Boyd said. “The fact reporter or editor, please call airlines can be complicated, of the matter is that you have the the office of David M. Shrib- they are “often numbers-driven. service you can support there.” man, executive editor, 412-263- The numbers are basically cold In a statement, US Airways 1890. hard reality. They’re demand- praised Mr. Penrod: “We’re driven,” he noted. proud of the work Brad’s done ™ “I don’t know if you have an in Pittsburgh and consider him executive running the airport one of the nation’s premier air- Sun-Telegraph/The Pittsburgh Press Our doctor or yours – we fill all prescriptions. † who’s able to reach out and make port directors.” Copyright 2013, PG Convenient eye exam appointments available. a telephone call to an airline that Mr. Lauer said the airport Publishing Co. Pub- We accept most vision care plans. that will have much bearing.” may be able to pick up some lished daily and Sun- Kent George, who served as flights “at the margins” if it can day by PG Publishing Co. Pittsburgh Post-Gazette is a federally registered trademark and service mark. executive director of the airport reduce its per passenger cost, Seven-day home delivery for $4.95 a week; authority before Mr. Penrod, considered among the higher Sunday home delivery for $2.25 a week — Call said that attracting new service ones in the country. That should 1-800-228-NEWS (6397) or go to often is a collaborative effort, happen in 2018 when the airport post-gazette.com/pgdelivery South Hills Village, 412-831-1939 • Monroeville, 412-373-3107 FEEDING THE STOP CABLE PIG ONLY DISH GIVES YOU THE BEST CHANNELS LAKETON FOR LESS TV, Appliance & Satellite Center PROMOTIONAL PRICES START AT Giving you the best pricing since 1955 on all your New TV’s, Appliances, and Satellite needs. After the sale it’s the service that counts. 412-731-1748 REG. 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C P M C P M G G Y K Y K C P M C P M G Feb 19 2013 12:52:25:146AM Post-Gazette G A-1 Y K Y K

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$1.00 TUESDAY, FEBRUARY 19, 2013 VOL. 86, NO. 203 2/19/13  final .

Neighbors of the airport turn out to review Money trail plans for the county’s proposed gas drilling project leads to police credit union $5,675 Pitt check to city was deposited; officials cannot explain why or by whom

By Jonathan D. Silver officers — was deposited into and Liz Navratil the “I.P.F.” account at the credit Pittsburgh Post-Gazette union on Sept. 28, 2009. That same day, $4,000 was Giant Eagle expenses, airline withdrawn from the account. fees, hotel rooms and restau- The withdrawal slip appears rant bills in numerous cities to be signed by a police bureau were paid for out of at least two employee. Reached Monday accounts maintained through night by phone, the employee Pittsburgh police headquarters at the Greater Pittsburgh Police SEE accounts, PAGE A-6 Federal Credit Union, the sub- ject of an FBI search last week. One account is listed as belonging to “Special Events c/o Sandy Ganster,” according to documents obtained by the Pittsburgh Post-Gazette. Ms. Ganster is the manager of the police bureau’s office of per- sonnel and finance. A separate account is marked “I.P.F.” with Michael Henninger/Post-Gazette an address of 1203 Western Ave. — the North Side headquarters Stephen M. Toprani From right, Nick Volakis and Marion McKeegan of Imperial question Randy Forister, senior director of development for the of the police bureau. To start immediately Allegheny County Airport Authority, during an open house Monday at the Findlay Township Activity Center to talk about FBI and IRS officials last proposed Marcellus Shale gas drilling at Pittsburgh International Airport. week removed documents from the credit union in the West End. The financial institution’s Former DA president said the agents served subpoenas seeking records connected to a single account hired to review belonging to the office of Pitts- Drilling open house draws 150 burgh police Chief Nate Harper. police policies Pittsburgh solicitor Daniel Regan confirmed Monday that By Amy McConnell n A Pennsylvania company Allegheny County officials Forister. the Law Department has docu- By Moriah Balingit Schaarsmith says it has won a $1 million announced Feb. 7 that Consol Allegheny County Council is ments from one police account Pittsburgh Post-Gazette Pittsburgh Post-Gazette grant to study possible will pay an estimated $500 mil- expected to vote on the agree- maintained at the federal credit health impacts of natural lion over the next 20 years for ment tonight. Local munici- union and is seeking documents A former Washington County Residents of Findlay and gas drilling on the Marcellus the right to drill for shale gas palities, along with the airport tied to a possible second account. district attorney with a reputa- several other communities Shale. Local, Page B-2 on 9,263 acres surrounding the authority and the Federal Avia- “We are aware of at least one tion for cracking down on police near proposed Marcellus Shale airport, which is in Findlay tion Administration, will have account, and from the informa- corruption has been appointed to drilling sites at the Pittsburgh and Moon. The payment would control over where exactly the tion that we have that account review Pittsburgh Police Bureau International Airport lined up include an upfront bonus pay- wells are located and how their was active as early as 2004, and regulations that govern outside Monday night to peer at maps, Mamone of Findlay, who is ment of $50 million and an esti- construction will be managed. we’re in the process of trying to employment for officers follow- pore over chemical disclosure paying tuition for her 20-year- mated $450 million in royalties But while county, airport determine the purpose of that ing revelations about a private forms and ask questions about old son to attend college and over the next two decades. and Consol officials tout the account, what that account was business venture whose part- the drilling process used by already has leased gas rights County officials have said economic benefits of drilling, being used for and who used that ners included Chief Nate Harper Consol Energy Inc. on the family’s 243-acre prop- Cecil-based Consol also plans the proceeds of which would go account,” Mr. Regan said. and several police officers. Whether they oppose natu- erty to Range Resources. “I’m to invest another $500 million to lower gate fees and support Unclear until now is whether Mayor Luke Ravenstahl ral gas drilling, can’t wait for it getting to the point in my life in drilling-related infrastruc- infrastructure at the airport, federal investigators were look- announced Monday that Steven to start or simply worry about when I’d like to spend some ture and other costs. About 50 not all residents were con- ing at a link between city funds M. Toprani, who served one term what, if any, effects it might money.” wells would be drilled on the vinced. and the credit union account. as district attorney in Washing- have on their property values, But it’s not just about their property, which is zoned for Findlay resident Bill Hov- The Post-Gazette has learned ton County, would immediately few of the approximately 150 own personal finances, added heavy industrial, airport and anec, for one, questioned Con- that a Sept. 16, 2009 University of begin reviewing the bureau’s residents attending the open her son, Merico Mamone of business park use and would sol officials about the toll that Pittsburgh check for $5,675.52 to policies. He is charged with writ- house seemed undecided about Findlay. not need any rezoning for drill- construction of the drilling the City of Pittsburgh Bureau of ing a report and making recom- the drilling at the airport that “Why not do it here? Bring ing to take place, according to pads and possible leaks of the Police — meant to pay for work is likely to start next year. some jobs in, money in, tax rev- the airport authority’s senior performed by off-duty police SEE police, PAGE A-6 “We’re ready,” said Terry enue in,” Mr. Mamone said. development director, Randy SEE DRillinG, PAGE A-8

Consultants to scrutinize city schools’ issues Chinese army linked

Five-year- in cybersecurity study Nonprofits to work old Madison with community Guarna of Mount to hacking against U.S. to improve district Carmel, Pa., a kindergartner, By David E. Sanger, or “Shanghai Group” — to the By Eleanor Chute was suspended David Barboza and doorstep of the military unit’s Pittsburgh Post-Gazette from school Nicole Perlroth headquarters. The firm was for making a The New York Times not able to place the hackers It’s the $2.4 million question: “terroristic inside the 12-story building, Can an out-of-town consult- threat” last On the outskirts of Shang- but makes a case there is no ing firm — along with its out- month. Her hai, in a run-down neighbor- other plausible explanation of-town partner — help Pitts- mother, Kelly hood dominated by a 12-story for why so many attacks come burgh Public Schools address Guarna, said white office tower, sits a Peo- from that one small area. its financial and academic chal- she talked ple’s Liberation Army base “Either they are coming lenges? for China’s growing corps of from inside Unit 61398,” Man- Tonight, community mem- about shooting cyberwarriors. The building diant founder and chief execu- bers invited to serve on an advi- a Hello Kitty off Datong Road is the head- tive Kevin Mandia said in an sory group will soap bubble quarters of PLA Unit 61398. interview last week, “or the n The public have their first gun. A growing body of digital people who run the most-con- gets a look chance to meet forensic evidence — confirmed trolled, most-monitored Inter- at plans the consultants Jimmy May/Associated Press by U.S. intelligence officials net networks in the world are to convert and give their who say they have tapped into clueless about thousands of unused input at school the activity of the army unit people generating attacks Schenley board headquar- for years — leaves little doubt from this one neighborhood.” High ters in Oakland. that an overwhelming per- A recent classified National The school Kids’ suspensions renew debate on zero tolerance centage of the attacks on U.S. Intelligence Estimate, issued School into board has hired corporations, organizations as a consensus document for apartments. the nonprofit and government agencies all 16 U.S. intelligence agen- Page B-1 FSG — based in By Michael Rubinkam n Gun control legislation school official put it. originate in and around the cies, makes a strong case that Boston — for its Associated Press advances in Colorado, Kids with active imagina- white tower. many of these hacking groups “expertise and Page A-8 tions? Or potential threats to An unusually detailed are either run by PLA officers technical assistance.” Waiting in line for the bus, school safety? 60-page study, to be released or are contractors working for FSG will work with the a Pennsylvania kindergart- Some school officials are today by Mandiant, a U.S. com- commands such as Unit 61398, nonprofit Bellwether Educa- ner tells her pals she’s going to and robbers. In Massachusetts, taking the latter view, suspend- puter security firm, tracks for say officials with knowledge tion, based in Wellesley, Mass., shoot them with a Hello Kitty a 5-year-old boy attending an ing or threatening to suspend the first time individual mem- of its classified content. which focuses on improving toy that makes soap bubbles. In after-school program makes a younger children over behavior bers of the most sophisticated Mandiant provided an the achievement of low-income Maryland, a 6-year-old boy pre- gun out of Legos and points it at that their parents consider per- of the Chinese hacking groups advance copy of its report to tends his fingers are a gun dur- other students while “simulat- — known to many of its U.S. SEE schools, PAGE A-6 ing a playground game of cops ing the sound of gunfire,” as one SEE kiDs, PAGE A-3 victims as “Comment Crew” SEE china, PAGE A-4

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A-6 PITTSBURGH POST-GAZETTE  TuesdaY, FebruarY 19, 2013  WWW.POST-GAZETTE.COM Police money trail leads to credit union accounts, FROM PAGE A-1 events and personnel and finance offices at police headquarters one comment. week ago. Frank Amity, a retired city City Controller Michael Lamb homicide detective and president said last week that there are 15 of the credit union, could not be authorized depositories for all reached for comment. funds paid to the municipal gov- Former Pittsburgh police ernment, regardless of whether Chief Robert W. McNeilly Jr., who the money is for the police was in charge of the department bureau or any other department. through 2005, said Monday night The credit union is not one of the that he was unaware of such an approved depositories. account being opened. “If there were monies diverted “I don’t know anything about to a non-approved depository of that,” said Chief McNeilly, who is the city I’d have to think, well, This is a copy of a check from the University of Pittsburgh, made payable to the city but instead deposited into a police credit in charge of the Elizabeth Town- I don’t know what you would union account labeled I.P.F., which had as its address city police headquarters on the North Side. ship police. “I feel pretty confi- characterize that other than as a dent if it was sanctioned by the theft,” Mr. Lamb said. department I would have known Records from the I.P.F. Westin Tabor Center in Denver days. jobs up to 32 hours a week. undercutting each other. You had about it.” account, for instance, show ($1,107.93). Even as the federal probe is Work outside the regular work officers working details on oppo- Federal investigators have not charges in 2009 from transac- The other account, under Ms. ongoing, Mr. Lamb is auditing day for police officers has drawn site sides of the street who were spoken publicly about the visit to tions at a Bethesda, Md., gas sta- Ganster’s name, showed Visa the police bureau’s secondary much scrutiny of late. Federal having disputes. It was out of con- the credit union, which a source tion ($36.17), Restaurant Depot debit card activity and at least employment office. Records agents are collecting documents, trol. We wanted it to go through familiar with the probe said in Pittsburgh ($489.23), Giant one check being written. obtained by the Post-Gazette the controller is performing the city,” Chief McNeilly said. was linked to a similar removal Eagle ($737.81), Palm Restau- The debit charges in 2010, for show that in 2012 the office his audit and Pittsburgh Mayor “I think any time officers get of documents from the special rant in Denver ($140.67) and the example, include the Grandview brought in nearly $6.2 million Luke Ravenstahl has hired for- to run their own details or get Saloon in Pittsburgh ($49.13), two in money from private employ- mer Washington County District to schedule officers on details separate charges at the Westin ers that was to pay officers who Attorney Steven M. Toprani there’s a lot of chances for ethi- Tired of living with Peripheral Hotel in Alexandria, Va. (each worked while off-duty. Another to review the city’s secondary cal violations. Officers get to the NEUROPATHY? for $713.16), the Holiday Inn $792,000 went to the city as a employment practices. point where they feel they owe Key Bridge in Arlington, Va., “cost recovery fee” assessed to Chief McNeilly said toward the more to the company that sched- at the Speed of Light ($2,213.52), the Doubletree Crys- the private businesses. end of his tenure in Pittsburgh he uled them than they owe to the RELIEF tal City in Arlington ($705.60) Officers who moonlight in uni- worked to reform the way officer City of Pittsburgh.” ™ and Bistro Francais ($47.08) and form are assigned to lucrative off- moonlighting was handled by the The Total Peripheral Neuropathy Program Ming’s Restaurant ($72.70), both duty work using a computer sys- bureau. Jonathan D. Silver: jsilver@ offers a new solution. It’s not just an improvement in the in Washington, D.C. tem or through the use of other “In 2005, I was trying to get post-gazette.com or 412-263-1962. quality of your life, it’s getting your normal life back. Ms. Ganster has not responded officers who work as “schedul- them all going through the city Liz Navratil: lnavratil@post- to repeated messages left at her ers.” Officers are typically paid at because there were way too gazette.com, 412-263-1438 or on CALL TODAY office and home over the past 10 time-and-a-half and can work side many things going on. They were Twitter @LizNavratil. FORA CONVERSATION WITH THE DOCTOR Federal rules apply. 412.276.5394 Ex-district attorney hired to review city police policies Scott Township / Wexford police, FROM PAGE A-1 Harper apparently allowed then- those involved with Diverse distinguished himself as the Sgt. Holmes to work the job. Mr. Public Safety Consultants ever chief prosecutor by attempting mendations on how to change Ravenstahl called the arrange- performed any work in connec- to straighten up police depart- and strengthen the policies. ment “unacceptable.” tion with the company. But on ments in Washington County. www.scottmedicalcenter.com City solicitor Dan Regan said he The mayor has said that a website that has since been During his tenure, he initiated is still in talks with Mr. Toprani, Cmdr. Holmes’ employment with taken down, the company said it an audit of the California Bor- now a private defense attorney, Slippery Rock was improper, provides a wide range of services ough police record room, which about his compensation. regardless of whether it vio- including training security uncovered reams of mislabeled The mayor’s announcement lated city code or bureau policy. guards, performing background and missing drug evidence. came two weeks after the Pitts- He wants bureau policy to be checks, providing executive pro- Mr. Toprani empaneled the burgh Post-Gazette reported amended to ensure that officers tection and supplying interim county’s first-ever grand jury to that Chief Harper, Cmdr. Eric L. are prohibited from holding full- police chiefs. investigate police corruption. THERE’S A REASON Holmes, Sgt. Barry Budd, Offi- time jobs outside of the bureau. Both the company and Cmdr. Two years into his term, Mr. cer Tonya Ford and Tamara L. Bureau policy already is Holmes’ second job with Slip- Toprani had already charged WE SELL SOOOOOO MANY Davis, who works in the police restrictive regarding outside pery Rock University clearly five police officers from various personnel and finance office, employment for city police violate the policy, said Beth Pit- departments with corruption, SUBARUS. formed Diverse Public Safety officers. It permits only “out- tinger, executive director of the including one who was accused Consultants LLC in February side employment that will not Citizen Police Review Board. of selling drugs from his police 2012. The chief insists the com- require the use or potential use But it’s not just what the cruiser and tipping off drug pany was dormant and that they of law enforcement powers by company purported to do that dealers to upcoming raids. were reserving the name for the off-duty employee.” It also troubles her, it’s the fact that the “One of my goals has been to future use. stipulates that the “employ- chief formed a business with sev- come up with policies and pro- Cmdr. Holmes, who was pro- ment is of a non-police nature eral subordinates, including one cedures that elevate law enforce- moted last year from sergeant, in which police powers are not a — Cmdr. Holmes — whom he ment in this county,” he said in SUBARU also held a full-time job as the condition of employment and the later promoted. She believes it April of 2010. interim director of public safety work provides no real or implied could disturb the flow of author- 9545 Perry Highway, North Hills, PA 15237 for Slippery Rock University law enforcement service to the ity in the bureau. Moriah Balingit: mbalingit@ from August 2007 to July 2008, employer.” Mr. Toprani, who did not post-gazette.com, 412-263-2533 or BaierlSubaru.com earning $81,000 that year. Chief It’s unclear whether any of return phone calls for comment, on Twitter @MoriahBee.

StrongStrong ReputationReputation Consultants to scrutinize city schools SolidSolid FoundationFoundation schools, FROM PAGE A-1 ine six areas: finance and bud- “We’re for high-performing get analysis; student outcomes schools that serve all kids really students. and effectiveness; organization well. I think we’re quite agnostic Earlier this month, represen- and human capital; informa- around whether that is the tradi- tatives from FSB and Bellwether tion technology and operations; tional public school setting or the met with the school district’s cen- stakeholder engagement and charter school setting,” she said. tral office staff and others. communication; and the types of Mr. Bernatek said FSG also is The process is called: “Envi- available schools and the exter- “fairly agnostic” on that issue as sioning Educational Excellence: nal landscape. well. A Plan for All of Pittsburgh’s Other community input will Ms. Wells said, “We want Children.” come from consultants’ inter- to come up with a plan that is The firms are being paid by a views with more than 100 people. actionable, one that people buy $2.4 million grant from the Fund “We went out of our way to into and that will focus on both for Excellence, which is a consor- include people who sometimes the academic and financial tium of local foundations and the have been very critical of the levers.” Bill & Melinda Gates Founda- work we’ve done,” Ms. Reed said. In the 56-page proposal, the tion. Other opportunities for public consultants state they “aim to Cate Reed, the district’s execu- input also may be arranged. bring you bold and innovative tive director for strategic pri- FSG works in a wide array of thinking that will build on PPS’ orities, said more than 70 people sectors, including looking at “col- strengths and current success — including parents, teachers, lective impact,” which “revolves while challenging the district to students, school leaders, commu- around the idea you need cross- transform itself into an organi- nity group representatives and sector solutions to complex social zation that can deeply, fully and other community members — problems,” FSG director Brad effectively deliver the best possi- have been invited. Bernatek said. ble outcomes for its students and At tonight’s meeting, she said, FSG has more than 100 employ- their families.” panel members will learn about ees; Bellwether has about 20. When the board voted on the the complexity of the district’s Mr. Bernatek said the two contract last month, superinten- problems and give their input. firms have “different skill sets” dent Linda Lane said the funders “This may sound cliche: We but “a lot of good overlap in the did not have any input into the actually believe the solutions to way we like to approach prob- consultants’ selection. these problems sit with the peo- lems.” The Gates Foundation has ple we’re talking to,” she said. Mary K. Wells, a co-founder funded other studies done by The advisory group will form and managing partner at Bell- FSG as well as Bellwether. subcommittees and meet as a wether, said Bellwether is not Ms. Reed said there likely will WeWe CanCan FixFix It!It! whole again in May and August. committed to a particular school be some short-term recommen- The subcommittees will exam- model. dations by summer that could potentially have an impact on the 2014 budget. She said longer-term recom- mendations could take place in the spring and in the following couple of years. The proposal submitted by 1 FSG calls for starting with 1 ⁄2 months of a “vision for impact,” Bowing Walls Wet Basement followed by three months of a “current state assessment” of the 1 JACKSON POINT COmmerCe PArK district, followed by 1 ⁄2 months of external research and bench- marking. 1 Then comes 2 ⁄ 2 months of developing “strategic options” after which implementation plan- 1 ning takes place for 2 ⁄2 months. From then through 2015, the plan — once the board gives nec- essary approvals —will be imple- mented, with support from the Nasty Crawl Space Settling Foundation consultants. Location: Along Route 19, directly off the Evans City exit (SR 528) of I-79 Unless spending or revenue changes, district officials expect Less than 30 minutes north of the City of Pittsburgh the district to run out of money Less than 10 minutes north of PA Turnpike acess in 2015. Interest-Free Ms. Reed said the district FREE Inspections! FINANCING In Butler County, PA doesn’t have the luxury of let- ting recommendations sit on the • Flex-Space Facility shelf. • Distribution Center “On Jan. 1, 2015, we have to • Office Center have a solution,” she said. • Light Assembly & Processing 1 (888)-691-0233 Education writer Eleanor Chute: [email protected] BakersWaterproofing.com PHONE: 412-422-9900 FAX: 412-422-3900 or 412-263-1955. PA License # 020614 www.buncher.com

C P M C P M G G Y K Y K C P M C P M G Feb 21 2013 12:17:27:559AM Post-Gazette G A-1 Y K Y K

2013 OSCARS DISCERNING NCAA SUES FACE OFF COFFEE DRINKERS PA. LEGISLATURE WEEKEND MAGAZINE BUSINESS, B-1 LOCAL, A-7

$1.00 THURSDAY, FEBRUARY 21, 2013 VOL. 86, NO. 205 2/21/13  final Harper out as chief Police office’s After meeting with FBI, mayor says accounting he’s compelled to ask for resignation gaps catch Ravenstahl says, eye of FBI ‘I am not a target’ investigators of investigation into By Moriah Balingit city police accounts Pittsburgh Post-Gazette Each year, millions of dollars Pittsburgh Post-Gazette flow from private companies to the Bureau of Police to pay offi- A two-hour meeting with cers who work private security federal investigators changed details arranged through the Mayor Luke Ravenstahl’s mind bureau’s Special Events Office. about his embattled police chief. But scour the city’s budget Mr. Ravenstahl said at a news and annual financial report conference Wednesday evening and you won’t find a line item that he had asked Chief Nate with the $7 million or so in pay- Harper, 60, to resign after a ments, nor a record of the nearly meeting with the FBI and U.S. $800,000 in city surcharges to attorney’s office a few hours businesses that employ police before. He said the bureau officers through the Special called for the meeting and gave Events Office. him information that made him There is rough accounting decide to force the chief out, just of that money elsewhere — on a day after he’d stood by him city ledgers that record “nega- publicly and cautioned against tive expenditures” and in the being “judge and jury” regard- bureau — but the picture of how ing allegations about the chief. that money moved from busi- Over the last week federal nesses, through the city and into investigators serving subpoe- officers’ paychecks is disjointed nas have taken paperwork from and incomplete. both police headquarters on That flow of money — from the North Side and the Greater dozens of bars, restaurants, con- Pittsburgh Police Federal Credit struction companies and other Union in the West End as part of businesses — to the bureau what appears to be a probe of the and to the city’s coffers is now bureau’s special events and per- under scrutiny as the FBI and sonnel and finance offices. Internal Revenue Service probe Neither the FBI nor the IRS the allegations that funds from has publicly explained what is the Special Events Office were being investigated, although Michael Henninger/Post-Gazette misappropriated. Federal inves- Deputy Chief Paul Donaldson tigators have visited the police has said he believes the inquiry Mayor Luke Ravenstahl speaks during a news conference Wednesday about the resignation of police chief Nate Harper, top. bureau’s North Side headquar- is in response to internal alle- ters and the Greater Pittsburgh gations of misappropriation of Police Credit Union in the West funds from the offices. End, where city money has been The mayor deposited in accounts not autho- SEE HARPER, PAGE A-4 named more coverage rized for such funds. Regina The lack of oversight means This story was written by McDonald, n Nate Harper’s n Timeline of On the Web that money meant to be handled Rich Lord of the Pittsburgh Post- 63, acting police career events that led Go to post-gazette. by the Special Events Office Gazette, based on his reporting chief. The spanned to Mr. Harper’s com for updates, could be diverted before it makes and that of Jonathan D. Silver, Liz police union 30 years in resignation. video coverage and it to the city, and that co-min- Navratil, Lexi Belculfine, Moriah criticized the Pittsburgh. Page A-4 past stories. Balingit and James O’Toole. appointment. Page A-4 SEE events, PAGE A-4

Republicans standing firm BRUCE W. DIXON | Nov. 3, 1938-Feb. 20, 2013 against additional tax hikes

By Jonathan Weisman and cuts to postpone the so- spread disruptions in govern- The New York Times called sequester, the House is ment services and even mili- moving forward on a legisla- tary operations in the weeks WASHINGTON — House tive agenda that assumes deep ahead. The president’s Janu- Republicans, shrugging off ris- and arbitrary cuts to defense ary fiscal win, which yielded ing pressure from President and domestic programs — once increases in income, capital Barack Obama, are resolutely considered unthinkable — will gains and dividend tax rates on opposing new tax increases to remain in place through the affluent families, has only bol- head off $85 billion in across- end of the year. stered Republican resolve. the-board spending reduc- Congressional Republicans “The president says he has tions, all but ensuring that the have relented in the most to have tax increases to head cuts will go into force March 1 recent fiscal showdowns with off the sequester. Well, he and likely remain in place for the White House. But lawmak- already got his tax increase,” months, if not longer. ers say they have no intention Rep. Martha Roby, R-Ala., said Despite new White House of surrendering in this one, in an interview Wednesday calls Wednesday to enact a even though Mr. Obama has combination of tax increases raised the potential of wide- SEE g o p, PAGE A-6 Steve Mellon/Post-Gazette 2002 Bruce Dixon, who died Wednesday, was head of the county Health Department for 20 years. City invited on the Olympic dream County health leader had personal touch By Ed Blazina pic Committee gauging the rooms (the region has 24,000 Pittsburgh Post-Gazette region’s interest in hosting the now), and venues the region By Michael A. Fuoco On the Web manner or some other kindness. Summer Games. doesn’t have yet such as a ten- Pittsburgh Post-Gazette Visit post-gazette.com for Which is not to say he wouldn’t Here’s what it would take for Because Pittsburgh staged nis stadium, an aquatics cen- an earlier video of Dr. Dixon dress down a patient for doing Pittsburgh to be the host of the world-class events such as the ter for swimming and diving Bruce W. Dixon strode the talking about his work. something stupid, for being dis- 2024 Summer Olympics: think- G-20 Summit and One Young events, a velodrome for cycling local halls of power in his trade- respectful or for committing a ing big and building bigger. World during the past four and a track-and-field stadium. mark Hush Puppies, never los- crime. And $3 billion. years, they say the region Oh, and an Olympic Village ing his common touch as a phys- became nationally known for He was revered by students Consider goal one accom- would consider an Olympic for the 16,500 competing ath- ical healer, medical teacher and his progressive public health he taught at the University of plished. Mayor Luke Raven- bid. letes to live in for two or three public health protector with the work and locally loved for his Pittsburgh Medical School and stahl, Allegheny County Goal two presents more weeks. less fortunate. medical ministry to the poor local doctors for his intelligence, Executive Rich Fitzgerald and challenges. Pittsburgh was among 35 As head of the Allegheny and disenfranchised. down-to-earth demeanor, humil- other community leaders say The U.S. Olympic Commit- U.S. cities to receive letters County Health Department for Everyone seemed to know ity and dedication to the profes- they won’t reject out of hand tee estimates it would cost $3 20 years — the longest-serving him, everyone seemed to have a a letter from the U.S. Olym- billion. It calls for 45,000 hotel SEE olympics, PAGE A-9 county director in history — he story about his calming bedside SEE dixon, PAGE A-8

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A-4 PITTSBURGH POST-GAZETTE  ThursdaY, FebruarY 21, 2013  WWW.POST-GAZETTE.COM harper is out

Timeline of events Harper’s career spanned over 30 years in city that led to By Joe Smydo with the bureau and streets. because of the January 2010 con- ment Project, expressed disap- mit in 2009 and for officer con- Nate Harper’s Pittsburgh Post-Gazette He pledged to beef up narcot- frontation between Jordan Miles, pointment with Mr. Harper’s duct that resulted in payouts in resignation ics investigations, increase the a black teenager, and three white departure. He said Mr. Harper police brutality cases. After being knocked off of his number of officers on the streets undercover officers on a Home- remained committed to improv- “We had our disagreements police motorcycle and skidding and have them spend more time wood street. ing police-community relations with Harper, but we always Oct. 31, 2006: Nate nearly 430 feet along the Parkway walking beats. Leaders of the black commu- and only recently made recom- found him to be a straight Harper, who had been as- East, Nate Harper picked himself There also was hope that nity sided with Mr. Miles, who mendations for improving a bro- shooter, which is something we sistant chief of investiga- up and chased after the driver. the selection of Mr. Harper, the said he was beaten without prov- chure on what a person should appreciated,” said Witold Walc- tions, is sworn in as police “I was more mad than any- first black chief in more than a ocation. Mr. Harper sided with do when stopped by the police. zak, Pennsylvania legal director chief. thing,” he said after the incident decade, would help to bridge a the officers, who said Mr. Miles He added that many members of for the American Civil Liberties in July 1983. divide with the city’s black com- appeared to be concealing a gun the black community took pride Union. Sept. 25, 2011: The Post- Mr. Harper, 60, known more munity and increase the diver- and ran when they confronted in Mr. Harper’s appointment. Mr. Walczak said Mr. Harper Gazette reports on the for his quiet demeanor than tem- sity of the police force. him. Councilman Ricky Burgess “We are saddened by the fact was “personally committed to relationship between Chief per during more than six years “I think Chief Harper came subsequently pushed through that this has happened and that diversity but, for whatever rea- Harper and Robinson en- as the city’s police chief, resigned with the support of the large seg- legislation requiring cameras the police chief is in the middle son, was unable to make it hap- trepreneur Arthur Bedway. Wednesday amid a federal inves- ment of the community … who in police cars, expansion of the of a very unfortunate and inap- pen.” The department in 2011 Mr. Bedway was involved tigation of the police bureau. felt that he had a sensitivity to bureau’s annual report to the propriate situation, and I was was 16 percent black. with the company Alpha Mr. Harper’s law enforcement the unique needs of the African- public and speedy completion of hoping he would not be found in Mr. Harper, a Schenley High career spanned more than 30 American community and the an accreditation process. the middle of all this and that he School graduate and Stanton Outfitters, which won a years, from days on motorcycle neighborhoods that are impov- Still, Ms. Pittinger believes would survive the scrutiny,” Mr. Heights resident, joined the $337,000 contract to details to his supervision of nar- erished,” said Beth Pittinger, the that the chief was able to deliver Stevens said. bureau in 1977. He was a patrol install radios and comput- cotics and vice investigations executive director of the Citizens on some of his promise of improv- Mr. Ravenstahl repeatedly has officer, K-9 officer and plain- ers in city police cars. Mr. to his October 2006 nomination Police Review Board. “The expe- ing community relations. He hailed the city’s low crime rates, clothes investigator before rising Bedway was also chair- as chief by Mayor Luke Raven- rience that he brought in seemed attended community meetings and Mr. Harper once threatened through the ranks and, at vari- man of Carnegie-based stahl, then the city’s fresh-faced to be more community-oriented and was more responsive to com- to shut down a youth football ous times, overseeing admin- Victory Security, which mayor. City council confirmed than what had preceded him.” munity members, she said. program if officials didn’t take istrative matters, the narcotics employed the chief’s wife, Mr. Ravenstahl’s choice. The bureau, however, still “He made an effort, and that increased safety precautions. unit and investigations. Cynthia, for a time. When he was named the struggles with a revolving door, was very positive in the dynamic The bureau, however, couldn’t department’s top officer — replac- losing many officers to higher- between the community and the escape negative publicity. In addi- Staff writer Moriah Bal- Nov. 16, 2012: Mr. Bed- ing Dominic Costa, who retired paying suburban departments. police,” she said. tion to the Miles case, the bureau ingit contributed. Joe Smydo: way, 63, and Christine Ann for health reasons — Mr. Harper Relations with the black com- Tim Stevens, chairman was criticized for mistreating [email protected] or 412- Kebr, a former systems was hailed for his familiarity munity remain delicate, partly of Black Political Empower- protesters during the G-20 Sum- 263-1548. analyst for the city, are charged in federal court with conspiring to rig the contract won by Alpha Out- what occurred today, and so the fitters. Ms. Kebr helped volume and the quality and the craft both the city’s selec- Harper corroboration of the totality of it tion process and Alpha — I don’t have those specifics,” Outfitters’ bid, then aided Mr. Del Greco said Wednesday the company in getting night. “I do know that through its inflated bills paid, and resigns the whole of this, Nate has con- was paid a bribe by Mr. tended that he did not engage in Bedway, according to a any criminality and has always criminal complaint. Mr. as police expressed a resolve to clear his Bedway is charged with good name.” conspiracy, bribery and Mr. Del Greco said he met mail fraud. with Mr. Harper as recently as chief Wednesday afternoon to discuss Dec. 6, 2012: Ms. Kebr, putting out a news release to 56, pleads guilty to con- HARPER, FROM PAGE A-1 announce his retirement effec- spiracy. She admitted to tive at 5 p.m. Friday. Mr. Del The mayor said he was told Greco said they settled on that taking two bribes, total- during his meeting with the fed- time because Mr. Del Greco will ing $6,000 and will be eral investigators that he wasn’t be attending a funeral today sentenced April 4. Mr. a target of their investigation. and Mr. Harper wanted him Bedway has pleaded not He also said he did not speak to be available to handle calls guilty to related charges to the investigators under any from the media. of mail fraud, bribery and grant of immunity. “Nate had contemplated conspiracy. FBI spokeswoman Kelly retirement even in advance of Kochamba declined comment this investigation and during Jan. 18, 2013: Mayor on the investigation. the whole of it on more than one Luke Ravenstahl ex- “At this point, it gave me occasion had contemplated retir- presses confidence in enough, and I learned enough ing,” Mr. Del Greco said. “That the chief despite federal to know that it was time to ask being said, this was immediate. criminal charges against Chief Harper to resign,” the Darrell Sapp/Post-Gazette 2009 It’s disconcerting to him. I know mayor said, adding that Mr. he’s distraught and upset.” Ms. Kebr and Mr. Bedway. Mayor Luke Ravenstahl had stood behind Nate Harper as recently as Tuesday, but after “Certainly [Chief Harper] Harper resigned and “is no lon- Mr. Ravenstahl said Assis- ger a city employee.” meeting with FBI investigators, he said Wednesday, “I learned enough to know that it was tant Chief Regina McDonald, has professed to me that time to ask Chief Harper to resign.” he’s done nothing wrong. Later in the evening, attor- 63, will be the acting chief “as ney Robert G. Del Greco Jr. of now.” And at this point he has released a statement on behalf Asked why Deputy Chief Paul my full confidence,” the of Mr. Harper: burgh effective immediately. ship and service he has always ago,” Mr. Del Greco said. He Donaldson won’t be elevated to mayor says. “It is apparent to me that the He has asked me to convey that valued and the citizens of Pitts- declined to provide details of the role, Mr. Ravenstahl said ongoing distractions and inves- God has blessed him and that burgh and Allegheny County the conversation but said he the deputy chief is on vacation, Jan. 25, 2013: Chief tigations make it no longer pos- he is truly appreciative to have for their support and coopera- did not think Mr. Harper had but it wasn’t clear Wednesday Harper says in an inter- sible for Nate Harper to dedi- been able to serve as a police tion during his tenure.” received a target letter or had whether he would become act- view he hasn’t received a cate the time and energy neces- officer for 36 years and as the In a brief interview later appeared before a federal grand ing chief when he returns. 1 target letter related to a sary to faithfully discharge his Chief of Police for the last 6 ⁄2 Wednesday, Mr. Del Greco said jury. He said he did not think Assistant Chief McDonald, federal probe of a 2007 duties as Police Chief. Conse- years. Chief Harper wants to that Mr. Harper had been inter- Mr. Harper received any offer a 35-year veteran and one-time city contract, and he didn’t quently, it is with a heavy heart thank Mayor Ravenstahl for viewed twice by FBI agents, but of immunity for speaking with school teacher with two mas- get money from Mr. Bed- that he has decided to retire as putting his trust in him, his fel- said it was not recently. the agents. way. Police Chief for the City of Pitts- low police officers whose friend- “It wasn’t a couple of weeks “I’m certainly not privy to SEE HARPER, PAGE A-5

Feb. 7, 2013: The Post- Gazette reports that in 2012, Chief Harper be- How the money flows came part of a private se- Police event office’s accounting has gaps curity consulting firm with Here is how payments from concerns that hire city police officers for security are supposed to flow back to the city. a civilian police clerk and events, FROM PAGE A-1 to either the City of Pittsburgh ditures for on-duty overtime three of his officers, in- or the "Invoice Treasurer cost of the City of and shift differentials. That’s cluding a sergeant he later gling of overtime pay and city Pittsburghrecovery and fee" send them to the because much of that money is 1 BAR, promoted to commander. surcharge money once it hits Special Events Office, which is actually owed to officers in the Police bureau’s Office of Special Events sends city coffers could make such located in the bureau’s Western form of wages for their off-duty RESTAURANT, a monthly invoice to the hiring concern diversions harder to catch. Avenue headquarters on the details, so it’s not technically CONSTRUCTION, Feb. 9, 2013: The Post- ETC. Gazette reports that in City controller Michael Lamb North Side. revenue, Mr. Lamb said. 2007, Chief Harper allowed said he would audit the Special Documents show that there But at no step in the process, MONTHLY INVOICE 2 Eric Holmes — the ser- Events Office after he learned is some accounting that is done from beginning to end, does The payment is made to the city’s accounting did not in the Special Events Office. A anyone compare invoices to geant whom he would later PAYMENT the Office of Special Events promote to commander segregate surcharge revenue printout from the secondary deposits to ensure that money from money due to officers. employment website used by and go into private busi- hasn’t gone missing. The Mr. Lamb in his investiga- the bureau, created by North Special Events Office, which 3 ness with — to work a sec- tion indicates that the city Carolina-based Cover Your receives the checks, does not Payments are ond full-time job as interim surcharge revenue generated Assets LLC, shows invoice send any documentation to the OFFICE forwarded to the head of Slippery Rock Uni- each year by the Special Events numbers, business names and controller’s office. police bureau’s versity’s police force. Office is recorded along with what those businesses owe, as This means that if money CONTROLLER’S OF Office of Personnel the money due the officers well as what they’ve paid. But goes missing in transit from OFFICE SPECIAL and Finance Feb. 12, 2013: FBI in a premium pay line item it’s unclear whether the office is that office to the bureau’s Office EVENTS PAYMENT agents seize documents intended to pay officers for off- recording the receipt of checks of Personnel and Finance, it from Pittsburgh police duty security details and on- or their deposit in the city’s won’t raise any red flags in the headquarters. Deputy duty overtime. bank accounts. Assistant Chief controller’s office. OFFICE OF Chief Paul Donaldson Neither the city controller, Regina McDonald, the newly “The question is if some bad No documentation PERSONNEL shared between says he believes the docu- the city finance director nor appointed acting chief who over- actor were pilfering checks out AND FINANCE Controller and Bureau ments are part of an in- the city treasurer were keep- sees the office, did not return of the bundle, is that something DEPOSIT SLIPS Special Events Office vestigation into allegations ing tabs on the millions of calls for comment. that we’re picking up?” Mr. that funds were being mis- dollars of checks received by Either way, Mr. Lamb said, Lamb said. PAYMENT the bureau’s Office of Special the process troubles him. The appropriated internally. The cost recovery fee 4 Events to ensure they were all staff issuing the bills should not 15 AUTHORIZED OFFICE OF being deposited into city coffers be handling the checks, he said. The $3.85 per hour cost recov- FINANCIAL DEPOSITS Payments are Feb. 13, 2013: City police MANAGEMENT or that the surcharge money “The goal is to segregate ery fee was established to help INSTITUTIONS AND BUDGET delivered to the city’s acknowledge they are in- was properly accounted for. [responsibilities],” he said, to cover administrative spending, Office of Management vestigating whether some And ask who’s responsible minimize the opportunity for and the costs of lawsuits and and Budget, which in officers were wrongfully for tracking that money, city theft. workers’ compensation claims 5 turn deposits the getting first crack at work- officials point fingers at each The checks then head to the stemming from police side jobs. Deposit slips from those transactions are funds in one of 15 ing various types of side other. bureau’s Office of Personnel According to an accounting forwarded to the city Controller’s Office authorized banks jobs, called “details.” Mr. Lamb has been critical of and Finance, where they are from the Special Events Office, the mayor for not having infor- recorded on spreadsheets and the cost recovery fee is generat- Feb. 14, 2013: The FBI mation on the accounts. The totaled. That office is headed by ing about $800,000 in city rev- Post-Gazette removes documents from mayor’s spokeswoman, Joanna Sandra Ganster, whose name enue a year. Mr. Lamb’s investi- the Greater Pittsburgh Po- Doven, Wednesday retorted appears on one of the credit gation indicates the money goes welder, a member of the Labor gate it, no one is checking to see lice Federal Credit Union, that Mr. Lamb, as controller, union accounts now under scru- into the premium pay line item Management Committee for the whether there is extra money, indicating the widening of should have come across the tiny by authorities. on the city’s ledgers. But the Fraternal Order of Police, Lodge officials said. discrepancies. City finance Checks are then sent to the money in that line item is only to 1. “We don’t want that money to In 2011, for example, the a federal probe into the director Scott Kunka said he City-County Building, where be used to pay officers’ on-duty be used for something it’s not city budgeted $7.3 million for Pittsburgh police bureau. was relying on others to ensure they make their way up to the overtime wages, in addition to supposed to be used for.” premium pay and then went the money was accounted for. city Office of Management and shift differentials and wages for Mr. Lamb said that the use of $1.56 million over budget. That Feb. 18, 2013: Mr. Ra- Budget. Mr. Kunka said his staff security details. If the fee money the fee money in this way would year, the city billed businesses venstahl appoints former The money trail takes the checks to a bank — one is flowing there, it’s not possible give the police bureau nearly a around $781,000 in surcharges. Washington County Dis- The trail starts in the Special of the 15 authorized depositors to separate it and make sure it’s million dollars in wiggle room, If that money made it to the trict Attorney Steven M. Events Office in the Pittsburgh — and deposits them. A deposit not being used to pay wages. It’s allowing it to go over what city’s coffers and was booked Toprani to review policies Bureau of Police, which orga- slip for the bundle of checks is also not possible to see if those it’s allocated without seeking in the premium pay line item, in the police bureau as nizes the jobs for officers and is then sent to Mr. Lamb. funds are covering for money approval from council. this means the bureau actually they relate to outside em- in charge of billing businesses, At the controller’s office, Mr. diverted before it made it to the Mr. Kunka said that when went around $2.3 million over ployment. including for a city surcharge Lamb said his staff compares City-County Building. his office writes budget propos- budget. for administrative costs. the deposit slips with the spread- “That cushion could have pro- als and allocates money to pre- This lack of accounting infu- The office issues a monthly sheets from the bureau’s Office vided an opportunity for some of mium pay, it does not factor in riates Officer Swartzwelder. Feb. 20, 2013: On the invoice to businesses for the of Personnel and Finance to those funds to be diverted,” said the $800,000 that appears to be “It’s outrageous and irrespon- same day he is inter- surcharge — called the cost ensure none of the checks were Mr. Lamb. supplementing that line item. sible,” he said. “We’re not talk- viewed by FBI agents and recovery fee — of $3.85 per offi- lost or stolen in transit from the The union has advocated set- “We don’t budget for the [Cost ing about $800 or $1,000 here. learns he is not the target cer per hour. Some businesses bureau to the bank. ting up a trust fund to segregate Recovery Fee] because it’s being We’re talking about more than a of an investigation, Mr. Ra- are also billed for the officers’ The controller’s office then the monies. accounted for by somebody half a million.” venstahl announces that wages, while other businesses records the deposit in the city’s “We’re concerned from a Fra- else,” he said. he asked for and received pay the officers directly — with ledgers as a “negative expen- ternal Order of Police view about Since the city isn’t anticipat- Moriah Balingit: mbalingit@ Chief Harper’s resignation. cash or a check. diture” in a line item that also how this money’s being used,” ing the revenue and doesn’t post-gazette.com, 412-263-2533 or Businesses then write checks represents other payroll expen- said Officer Robert Swartz- have a system in place to segre- on Twitter @MoriahBee.

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Friday’s announcement that Mayor Luke Ravenstahl Deficit will not seek re-election means a fresh group of candidates target will be jockeying for the city’s top job. Meanwhile, the police department is facing a cultural change in sight, in the wake of Nate Harper’s forced resignation. so are

Cardinal Donald Wuerl, traps New directions archbishop of Washington, D.C., and former Pittsburgh prelate, gives his take on Entitlement issues what he would look for in a still loom; economy new pope. Story on Page A-7 could stumble again

By Jackie Calmes The New York Times Brain scan WASHINGTON — The latest budget impasse ushered in a new round of austerity Saturday, shows how with the nation facing reduced federal services, canceled con- tracts, job furloughs and layoffs. Jane Austen But lost in the talk of Wash- ington’s dysfunction is this fact: On paper at least, President stimulates Barack Obama and Congress have reduced projected defi- cits by nearly $4 trillion over a By Mackenzie Carpenter decade — the widely embraced Pittsburgh Post-Gazette goal for stabilizing the national debt. “Mansfield Park” may be one The spending cuts that began of Jane Austen’s least-known to take effect Friday, known as novels, but it recently attracted sequestration and totaling about some new readers — inside a $1 trillion through 2023, come on brain-imaging scanner. top of $1.5 trillion in reductions Humanities scholar Natalie that Mr. Obama and Congress Phillips has conducted a study committed to in 2011, mainly at Stanford University that from the accord that averted the examined what effect reading nation’s first debt default. Austen had on the brain, and the Nearly $700 billion more will results, she hopes, may give new come from tax increases on polish to the battered reputation wealthy Americans, the product of a liberal arts degree. Ms. Phillips, a Fox Chapel SEE deficit, PAGE A-7 native and Michigan State Uni- versity professor, has received international media coverage for her study mapping the rela- tionship between reading, atten- tion and distraction. She places volunteers inside an MRI (mag- netic resonance imaging) scan- Michael Henninger/Post-Gazette Larry Roberts/Post-Gazette ner, hooks them up to eye-track- Luke Ravenstahl Nate Harper ing equipment and asks them to read — on a mirror above them — the second chapter of “Mans- mayor’s race police dept. SEE austen, PAGE A-10

By James O’Toole By Jonathan D. Silver Pittsburgh Post-Gazette Pittsburgh Post-Gazette North Catholic maintenance Cost cutting director John Marucci holds he aftershocks Until Friday’s hen Pitts- Over time, some a mock gun during a recent of Mayor Luke burgh Mayor may be in instructional session dealing Ravenstahl’s announcement, Luke Raven- observers say, with armed intruders. decision to the contest stahl tapped Nate Harper’s abandonT his re-election NateW Harper to be police store at Heinz bid continue to rumble was likely to chief, morale surged police bureau as the two existing can- be largely a among rank-and-file transformed By Len Boselovic Newtown’s didates for his job con- police officers, who saw Pittsburgh Post-Gazette front new tactical reali- referendum on the new boss as one of into a cliquish ties and would-be rivals the incumbent. them. realm where The private equity firm slated lesson: consider whether to The police bureau to be the next operator of the H.J. compete against them. Now it is wide had been led for a decade old colleagues Heinz Co. is no stranger to shak- On Saturday, former open, not just by Robert W. McNeilly got ahead, ing up historic U.S. companies security state Auditor General Jr., considered a by- founded by industrious families Jack Wagner released a in terms of the the-book disciplinar- discipline was that built powerhouse brands. statement saying that he identity of the ian under whom some lax and quiet In late 2008, the co-founders By Mary Niederberger was now considering a officers chafed. After of 3G Capital engineered the $52 Pittsburgh Post-Gazette late entry into the May players but on him came Dominic J. murmurs of billion takeover of Anheuser- 21 Democratic primary. how they will Costa, a career officer racial divisions Busch, whose Budweiser means On most weekdays, Greg Allegheny County Con- perceived as a political as much to beer drinkers and St. Evans is a soft-spoken, mild- troller Chelsa Wagner, distinguish animal who spent only at headquarters Louis as Heinz means to ketchup mannered religion teacher at his niece, said she was themselves. a 10-month blip run- emerged. lovers and Pittsburgh. North Catholic High School. optimistic that he would ning the department The acquisition of the King But one day last week, Mr. return from a current n until former Mayor Bob n of Beers spawned big changes Evans was transformed into trip to Israel to join the The mayor was O’Connor died in office. Civilian facing in St. Louis, where thousands an aggressive attacker, disarm- Democratic field — and a witness in police Personable albeit scrutiny over dealings collected a paycheck from ing an intruder pointing a gun added that she would probe, says his private reserved, widely consid- as police employee. Anheuser-Busch, where sup- in a classroom at the Troy Hill “definitely’’ consider attorney. Page A-8 ered a “cop’s cop,” Mr. Page A-9 pliers thrived on the brewer’s school. becoming a candidate Harper was viewed as growth and where charities ben- The intruder wasn’t real. He herself should Mr. Wag- already said that he a balm for a city striv- Robert Swartzwelder, a efited from the company’s gener- was Sam Rosenberg, a personal ner decide against a bid. would consider the race, ing to smooth racial 20-year veteran active in ous — and often times extrava- safety expert brought in to train Mr. Wagner had pre- as did Darlene Harris, divisions and eliminate the police union, whose gant — spending. teachers on how to confront a viously been focused on the president of Pitts- politics from the police comments echoed the Four years later, the beer gunman, keep students safe and the option of running burgh City Council. bureau. feelings of many in the maker employs fewer people in have their radar tuned in to the as an independent in Mr. Ravenstahl, “I was highly excited bureau. “He represented St. Louis, takes longer to pay potential for possible distur- November, one that his during his remarks and optimistic, because the interests that I felt its suppliers and donates less to bances created at the school. statement said was still on Friday, said he had Nate Harper came were of the everyday charity. The changes have made “I wouldn’t ever want to be a possibility. someone in mind to from the street. He was police officer, and he Anheuser-Busch InBev a finan- learning how to strike someone, State Sen. Jim Ferlo, a cycle cop. He was a cial success, but they could leave but I think defense is always a D-Highland Park, had SEE mayor, PAGE A-8 detective,” said Officer SEE police, PAGE A-8 Heinz employees and Pittsburgh SEE security, PAGE A-3 SEE heinz, PAGE A-3

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eran Democratic activist who had been supporting the mayor, Questions abound said he had already received Mayor just a witness in police phone calls from the Lamb and Peduto camps seeking his sup- port. probe, says his private attorney after Ravenstahl Those factions and whoever may join them will be going over the mayor’s ample contri- By Rich Lord noting that the city is not pay- with Victory Security, has bution reports, courting his Pittsburgh Post-Gazette ing for his services. pleaded not guilty to federal financial backers. Mr. Porter said he “made the charges that he conspired with leaves mayor’s race Before the mayor dropped Prominent defense attorney effort to reach out to the U.S. and bribed former city systems out, Mr. Peduto and the mayor Charles Porter said Saturday attorney’s office [Friday] and analyst Christine Kebr to get had dominated the competi- that he is representing Pitts- was advised that nothing was a $337,000 contract to install mayor, FROM PAGE A-1 raising by the existing candi- tion among unions that had burgh Mayor Luke Ravenstahl changed, that [Mr. Ravenstahl] and maintain radios and dates, city Controller Michael made early endorsements. in connection with a federal was a witness.” computers in city police cars replace him. Senior Democrats Lamb and city Councilman Bill Now, many of them will be up investigation of the city’s The mayor’s statements for the firm Alpha Outfitters. have suggested that former Peduto. for grabs, for Mr. Lamb and Bureau of Police and empha- about the FBI meeting have Prosecutors have said that one Allegheny County Executive The questions on who will conceivably for whatever new sized that the mayor is only a suggested that a subject was meeting related to the contract Dan Onorato, a fellow North run will be answered within 10 candidates may materialize. witness. the federal probe of the flow of occurred at Victory Security’s Sider, is the mystery candidate. days. But a more fundamental Mr. Wagner — a former city Mr. Porter confirmed that money meant to pay for police offices. Mr. Onorato has done nothing question about the race may councilman and state sena- he accompanied Mr. Raven- secondary detail work into Mr. Porter said Ms. Bowman publicly to fan the continuing take longer to sort itself out — tor who served two terms as stahl, along with a city attor- the police federal credit union, is a witness in that case. He speculation. But neither has just what will this election be auditor general — has enjoyed ney, on Feb. 20 to a meeting and the use by police bureau said the credit union investiga- he done anything to quash it, about? strong union support in the with representatives of the FBI employees of debit cards tied to tion and the Alpha Outfitters failing to respond to repeated Until Friday’s unprece- past. and the U.S. attorney’s office. one account. case are separate, and that the attempts to reach him for com- dented announcement, the con- “We’re going to take a few “He was advised that he Mr. Porter said he also rep- U.S. attorney’s office has told ment. test was likely to be largely a days, sit back and let the smoke was a fact witness,” said Mr. resents Kathleen Bowman, him that it does not view his U.S. Rep. Mike Doyle, referendum on the incumbent. clear and see what comes Porter. “I routinely represent CEO of Victory Security, a representation of one witness D-Forest Hills, said he has not Now it’s wide open, not just in in front of us. The one great witnesses. I can’t discuss, Carnegie-based firm that is in each matter as a conflict of spoken with Mr. Onorato, who terms of the identity of the play- thing about Pittsburgh politics obviously, the contents of any- mentioned in court documents interest. ran for governor in 2010. ers but on how they will dis- is there’s always surprises thing.” describing the case against But Mr. Doyle added that he tinguish themselves from one around the corner,” said Darin He also declined to disclose Arthur Bedway. Rich Lord: rlord@post-ga- “just can’t imagine” that Mr. another in their appeals to the Kelly, who leads the politi- the payment arrangement he Mr. Bedway, 63, of Robinson, zette.com, 412-263-1542 or Twit- Onorato would leave his senior voters. What had been an argu- cal action committee for the has with the mayor, other than who has also been associated ter @richelord. position with Highmark, which ment dominated by the recent Pittsburgh firefighters union, he took in 2011 after choosing past — the mayor’s record — which had endorsed Mr. Raven- not to run for a third term as will shift emphasis to who has stahl, along with other locals executive. the most compelling vision of including the International Any would-be contender the future. Brotherhood of Electrical the support of two-thirds of both of the existing candidates. political base overlaps Mr. faces a tight deadline for a deci- Whatever opposition Workers and Operating Engi- members of its political com- The presence of Mr. Wagner or Peduto’s East End stronghold. sion. The last day to file nomi- research the Peduto and Lamb neers Local 66. mittee. Before the mayor’s Controller Chelsa Wagner on And while the city Urban nating petitions for the race is camps had compiled on the Mr. Peduto had early support withdrawal, it seemed possible the ballot would be particularly Redevelopment Authority March 12. Legally, the bar to incumbent now goes out the from unions, including SEIU that no candidate would be able problematic for Mr. Lamb, who board member is an ally of the enter the race is fairly low, but window. And just as the overall Local 32BJ and the Laborers’ to meet the two-thirds thresh- shares their South Hills politi- Ravenstahl administration, logistically it’s more daunting. competition is now scrambled, District Council. old. Jack Shea, who heads the cal base. Mr. Ferlo, who served 14 years Any candidate for the primary so are the accompanying bat- The Allegheny County ACLC, said that in the changed Similarly, if Mr. Ferlo were on Pittsburgh City Council, has needs to submit a nominating tles for related prizes, includ- Labor Council, the largest environment, the competition to run, he could be a worry strong traditional ties to the petition with the signatures of ing money, and activist and umbrella group of unions in for its backing remained wide in particular for Mr. Peduto. liberal wing of the party. 250 voters. But to join the field union support. the region, plans to meet Fri- open. While Mr. Ferlo’s redistricted now, they would face the chal- On Thursday night, even day to consider an endorsement Like Mr. Onorato, Mr. Wag- state Senate seat sprawls up Politics Editor James O’Toole: lenge of catching up with many before the mayor’s announce- in the mayoral primary. The ner’s entry and established the Allegheny Valley into Arm- [email protected] or 412- months of field work and fund- ment, Terry Matuszak, a vet- organization’s rules demand name would be a challenge to strong County, his longtime 263-1562.

missed. Some were minor and Gazette that the business was some were not minor.” meant to function in his retire- Harper’s tenure as police chief turns sour One person with whom the ment, that it was not currently former chief’s relationship generating revenue or soliciting is eyed with curiosity is Mr. clients and that there was a police, FROM PAGE A-1 Mr. Harper despite a barrage command staff began noticing note an influx of black officers Harper’s onetime friend, entre- desire to lay claim to its name. of revelations about the chief’s that the chief regularly social- into headquarters as a result preneur Arthur Bedway Jr. of But Mr. Harper did not men- understood the plight of the questionable practices — sought ized with a group of women, of Mr. Harper’s sphere of influ- Robinson. tion the venture to his bosses. everyday uniformed officer.” and received Mr. Harper’s res- insiders said. ence. Mr. Bedway, 63, has been And news of the business did But over time, some observ- ignation. There was Kim Montgom- Other people noted that any indicted federally and accused not sit well with them. ers say, Mr. Harper’s police Mr. Harper, 60, is not giving ery, an account clerk with the chief would surround himself of setting up a company called In recent weeks, the bad bureau transformed into a interviews. And Robert G. Del personnel and finance office with trusted subordinates; in Alpha Outfitters, which news piled up for Mr. Harper. cliquish realm where old col- Greco Jr., his attorney, says he with whom Mr. Harper had Mr. Harper’s case, he knew received a $337,000 contract to There was an FBI investigation leagues got ahead, discipline is not authorized to speak to the attended Schenley High School; many black officers. install and maintain computers of the bureau’s personnel and was lax and quiet murmurs of media. her daughter, Officer Tonya “I don’t think that Chief and radios in city police cars. finance office, secret chief’s racial divisions at headquarters Montgomery-Ford, who had Harper differentiated between A former city systems analyst, office accounts at the Greater emerged. A close look at Mr. ‘Very professional been Mr. Harper’s clerk while blacks and whites in that man- Christine Kebr, 56, of Castle Pittsburgh Police Federal Harper’s tenure reveals allega- and likable’ he was assistant chief of opera- ner,” Ms. Richard said. “If noth- Shannon, has pleaded guilty Credit Union that funded debit tions of character foibles — Mr. Fox knew the former tions; Tamara L. Davis, second- ing else, the chief prided him- to one count of conspiracy and cards belonging to the mayor’s mentioned even by his support- chief since Mr. Harper, a 1971 in-command of personnel self on being fair. He provided admitted to taking $6,000 in bodyguards, and the deposit of ers — and a method of operating Schenley High School graduate, and finance; and in 2007, Ms. many officers in the bureau the bribes from Mr. Bedway. a check from the University of that might have led the chief to joined the force in 1977. Mr. Fox Richard, the bureau’s spokes- opportunity to expand on their Federal prosecutors have Pittsburgh meant for the city his own doom. taught him in the academy. woman and sister of Assistant specialty or place officers in said in filings and statements into an unauthorized credit “Harper took care of his “He was very good in class Chief Maurita Bryant. Some say positions to gain experience and in court that a third, unnamed union account. friends,” one veteran lieutenant ... very attentive, ‘Yes sir, No retired Lt. Donna L. Sims also grow as an officer.” individual was involved in There has been no explana- said. ma’am.’ I’d see him from time was part of the group early on. A source with a police back- meetings leading to the Alpha tion from Mr. Harper. “Honestly,” Mr. Harper’s to time in uniform and then Sources say the women had ground who has known Mr. Outfitters contract. Mr. Harper After the FBI removed papers longtime spokeswoman Diane he came back to narcotics as a unusual access to Mr. Harper, Harper for more than 30 years has said he wasn’t involved in from the credit union and police Richard said in an email, sergeant. He was very good and entering his office at will. saw something else in how Mr. the company and didn’t get pay- headquarters, Sandra Ganster, “many would say he was too very competent at what he was There would be closed-door Harper ran the bureau: the ments from Mr. Bedway. Ms. Davis’ boss and the director nice.” doing, very professional and conversations among the group, shadow of former chief Earl Complicating matters, Mr. of personnel and finance, vis- Law enforcement sources likable. He never rubbed people perceived as innocent but some- Buford, who had his own inner Harper’s wife worked for a time ited the U.S. Attorney’s Office who have long known Mr. the wrong way.” what unprofessional. circle. Mr. Harper had worked as a consultant for Carnegie- and spoke with prosecutors and Harper — many would not Mr. Harper rode a motor- Warner Macklin III, a spokes- for Mr. Buford in narcotics. based Victory Security, with the FBI. speak for attribution because cycle in the traffic unit, worked man for Ms. Montgomery, Ms. “The overtime was flowing which Mr. Bedway has been After a two-hour meet- of concerns about their own narcotics, made sergeant and Davis and Officer Montgomery- like crazy, unfettered access for closely associated. The relation- ing Feb. 20 with the FBI, the futures — characterized him then skipped several ranks to Ford — all of whom acting the chosen few and no access for ship raised questions about details of which have not been as a man who could not say no, commander in 1995. It was his police Chief Regina McDonald the others. It was that kind of whether Mr. Harper favored his revealed, Mr. Ravenstahl loyal and trustworthy to a fault, springboard to assistant chief has put on paid administrative environment,” the source said friend’s firm. decided Mr. Harper had to go. and someone who might have the next year. Mr. Ravenstahl leave, without explanation — of the department under Mr. Herman Watson, a com- It is important to note been manipulated by people elevated him to the top post on downplayed the relationship his Buford. “[Perhaps] that is how munity relations specialist for that Mr. Harper has not been who did not have his best inter- Oct. 31, 2006. clients had with the chief. Ms. [Mr. Harper] thought it was OK Boston-based Winn Residential, charged with any crime and ests at heart. He was an appealing choice Sims declined comment. to supervise — emulate that. owners of the Maple Ridge that many questions remain. “He was not one of them look- for the politicians: a career “As far as my having access And he didn’t realize he could Apartments in East Hills, told But there seems to be univer- ing for the bad [in people]. He’s man, a religious man, a black to him — yes, I did have access be taken advantage of.” the Post-Gazette how Victory sal despair that the man who looking for the good in people man — in other words, an easy to him on a daily basis,” Ms. Security and Mr. Harper seem- seemed honorable and true left and trying to bolster them up,” sell who seemed to have every- Richard said, “but not in an ‘Discipline really ingly interacted. the public life in such an igno- said Barry Fox, a retired nar- thing going right. unprofessional basis or not went downhill’ Mr. Watson, the property minious way. cotics detective who worked “As far as I know he was an what I thought was unprofes- One of Mr. Harper’s more manager of Maple Ridge in 2009, “How heavy is my heart? under Mr. Harper. “Now if honest man. He came from a sional access to him.” controversial decisions was to said that year Victory Security Betrayed? Disappointed? Sur- those people he was with good family and he was a good Some of the women were push for the 2007 promotion of was vying to renew a contract prised? You know, the whole wanted to go the wrong way, I family man. Those were some involved in running initiatives George Trosky, an old friend for about $50,000 a year to pro- situation is sad,” said Elizabeth could see where they could have good attributes,” said M. Gayle under Mr. Harper that were from their traffic days together, vide guards for the apartments. Pittinger, executive director been able to persuade him. Not Moss, former head of the Pitts- considered good ideas but were from sergeant to commander Victory Security CEO Kath- of the Citizen Police Review something bad. But something burgh chapter of the NAACP. not universally embraced in despite a checkered past. leen Bowman arrived at Maple Board. that wasn’t particularly right.” . “I don’t have anything bad to practice, such as the Adopt-a- That promotion was an Ridge with Ms. Harper. Ms. “To a degree I think he was Seven years after reaching say about Nate. I think he’s got Block program and the Com- example of Mr. Harper’s loyalty, Bowman, said Mr. Watson, naive. And that sounds ridicu- the pinnacle of power at the great character. I think he did a munity Technical Investigative some say. “introduced her as, ‘This is lous when talking about some- bureau, Mr. Harper’s distin- pretty decent job.” and Preparedness Section, or “There was political heat Cynthia Harper, her husband is one who was a police officer guished 36-year career abruptly Mr. Harper’s only obvious “C-TIPS.” brought on him,” Mr. Fox said the chief of police.’ ” for 36 years. But I think on a ended in his forced resignation peccadillo: a less-than-clean Officers in C-TIPS were of the Trosky promotion. “Nate A few days later, Mr. Harper personal level he was trusting. Feb. 20. tax record. Mr. Harper and his handpicked and meant to be a stood by him.” showed up at Maple Ridge and And I think he could have been Mr. Harper’s departure wife, retired Pittsburgh police troubleshooting squad for the Critics say Mr. Harper stood likened the open-air drug deal- unwittingly exploited and taken seemed to be the culmination of officer Cynthia Harper, had chief. Their assignments ranged by too many people he should ing to “New Jack City” — a advantage of,” Ms. Pittinger concerns raised over a private issues with paying property from quickly addressing neigh- not have. reference to a 1991 film depict- said. business he had organized with taxes and sewage bills on time. borhood complaints to working “If you disciplined people, ing crack-induced urban chaos “He had a lot of pressure on subordinates, the promotion of Those problems were cleaned with the FBI and the Allegheny nothing would happen. You’d — Mr. Watson said. “Only thing him, too, because of his own one of them to the force’s upper up by the time Mr. Harper County Sheriff’s Office. In 2011, send the disciplinary reports he mentioned is he was going history. He came up through echelons, secret bank accounts became chief. they assisted with Operation down there. He’d just dismiss to talk with the [narcotics divi- the ranks. And in that environ- linked to Mr. Harper’s office That lack of attention to Stink Bug, cracking down on them. The discipline really sion’s] Impact Squad and try to ment they [police officers] trust and his friendship with a man detail with financial issues drug dealers using methadone went downhill when he took get this cleaned up.” everybody for a large part of under federal indictment in might have been a harbinger of clinics to recruit potential cli- over,” according to the veteran their existence — backing each connection with a police radio problems to come. ents. Other times, they helped lieutenant. The consulting other up. And I could see that contract. In 2007 he apparently per- enforce safety at youth football Former Chief McNeilly question happening. And he just ended Looming over it all: an FBI mitted then-Sgt. Eric Holmes games. agreed with that assessment In February 2012 Mr. Harper up being betrayed. investigation, described by act- to moonlight full-time as the C-TIPS initially answered to based on information from his made a fateful decision to sign “I’m not going to say he was ing Chief Regina McDonald as interim head of Slippery Rock Lt. Sims and then moved under wife, Catherine, a Pittsburgh paperwork for the state listing a victim. But I think it could targeting the police bureau’s University’s police force, a deci- Mr. Harper’s control. Over time police commander, and other him as one of five organizers of have been a calamity of circum- office of personnel and finance. sion now under scrutiny after it became a target of derision members of the command staff a private venture called Diverse stances and fate that brought Agents have removed boxes of it was brought to the mayor’s among some police officers who with whom he remains friendly. Public Safety Consulting LLC. him here.” documents from police head- attention by the Pittsburgh believed it was largely stocked “Discipline became much The other signatories were Ms. quarters on the North Side. Post-Gazette. with old friends of Mr. Harper more lax,” Chief McNeilly Davis, Officer Montgomery- Rich Lord and Liz Navratil Within hours of meeting Once Mr. Harper was as a vehicle for them to do light said. “My wife did disciplinary Ford, Cmdr. Holmes and Sgt. contributed. Jonathan D. Silver: with the FBI, the mayor — who ensconced at police headquar- work but make extra money. reports that when they got to Barry Budd in intelligence. [email protected] or 412- had stood steadfastly beside ters on Western Avenue, the Some white officers began to the chief’s office, they were dis- Mr. Harper told the Post- 263-1962. BARIATRICS We ight Loss & We ight Management We Take The Confusion Out Of We ight Loss! 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C P M C P M G G Y K Y K C P M C P M G Mar 07 2013 11:47:13:601PM Post-Gazette G A-1 Y K Y K

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$1.00 FRIDAY, MARCH 8, 2013 VOL. 86, NO. 220 3/8/13  final . Comet Finance chief claims Harper coming told her to divert police funds our way, Manager went to safety director with concerns, her lawyer says but will By Jonathan D. Silver, Ganster, who, he said, reported On the Web would not speak for him. His Rich Lord and Liz Navratil her concerns about the account attorney Robert G. Del Greco we see it? Pittsburgh Post-Gazette to city Public Safety Direc- Go to post-gazette.com to Jr., said he was not authorized tor Michael Huss on Feb. 9. He read the timeline of events to speak on his client’s behalf. The attorney for the Pitts- said his client has since spoken that led to Nate Harper’s Mr. Huss declined to answer burgh Police Bureau’s finance twice to federal authorities. resignation, including links any questions pertaining to an Clouds, sunset may manager said Thursday his “The chief would tell her, to past stories. ongoing FBI investigation that obscure good look client was instructed by for- basically, keep roughly a $3,000 top police officials have said mer chief Nate Harper to open balance in this account,” Mr. targets Ms. Ganster’s office. at PanSTARRS a credit union account now Difenderfer said. “Like she said, to the credit union account Asked whether Ms. Gan- under federal scrutiny and fol- I guess the best way to describe since about 2008 or 2009 when ster came to him Feb. 9 with lowed his orders in diverting it was, ‘It had an odor, but the the account was opened. concerns about the diversion By Pete Zapadka tens of thousands of dollars to it chief directed me to do it, and I Mr. Harper could not be of funds into the credit union Pittsburgh Post-Gazette from funds meant for the City of did what he told me to do.’ She reached for comment. His wife, account, Mr. Huss said, “I can’t Pittsburgh. didn’t feel comfortable with it Cynthia Harper, contacted confirm it or deny it.” A bright comet is coming to William H. Difenderfer rep- … but obviously complied.” Thursday evening at their Two days after Ms. Ganster the skies over Pittsburgh, but resents police personnel and He estimated that between Stanton Heights home, said cloudy weather or lingering finance manager Sandra J. $28,000 and $37,000 was diverted Mr. Harper was not in and she SEE police, PAGE A-3 Sandra J. Ganster light from the sunset could dim the view of PanSTARRS, which may resemble a plane contrail. Comet PanSTARRS has been visible from the Southern Hemi- sphere for the past few months, where it exhibited a comet’s A dAy for women signature tail and could be seen Medical with the unaided eye. It initially gained star status shortly after it was discovered in June 2011, ethics showing promise that it would become dazzling. But earlier this year, its brightness was not meeting focus of expectations. Observations in late Febru- ary, though, when PanSTARRS insurance began closing on the sun, showed brightening and indicated it would be visible here, low in the west after sunset toward the dispute middle of March. While optical aid may not be necessary, binoc- ulars likely will help in locating the comet not long after sunset. UPMC declines Australian amateur astrono- Highmark group mer David Lee and his wife, Ali- son, were able to spot the comet easily early this week after bat- By Bill Toland tling a long stretch of cloudy Pittsburgh Post-Gazette weather at their home observing site near Maitland, New South Health law experts say UPMC Wales. is taking an unusually harsh “It was easy [to see] naked eye step — and a calculated pub- in the twilight with a short tail lic relations risk — by barring visible in binoculars,” Mr. Lee certain Highmark customers from visiting its physicians and SEE comet, PAGE A-16 clinics, even if they want to pay cash. But UPMC says its hands are tied by the language of the new Highmark group insurance product, called Community U.N. levies Blue, a “limited network” prod- uct that is offered at a lower cost stronger than Highmark’s typical group insurance policies, and achieves that cheaper price by excluding B.K. Bangash/Associated Press sanctions on much of the UPMC system from its list of “in-network” facilities. International Women’s Day is being observed today around the globe, including in Pakistan, above, where Halima And UPMC says it would be Bibi collects herbs that she sells to support her family in the suburbs of Islamabad. This year’s observance is North Korea “unethical … to overlook the dedicated to the effort to end violence against women. Thursday in Washington, President Barack Obama signed the reauthorization of the Violence Against Women Act, which expands protections for victims of domestic abuse SEE upmc, PAGE A-8 and sexual assault. Story, Page A-6 By Colum Lynch and Chico Harlan The Washington Post

UNITED NATIONS — The Senate No date chosen for voting U.N. Security Council approved Bin Laden’s son-in-law tough new sanctions Thursday confirmS to begin on selection of pope against North Korea over its lat- Brennan est nuclear test, brushing aside caught, turned over to U.S. Pyongyang’s threat of nuclear retaliation against the United States and other nations it labels By Greg Miller attacks like the mass murder of Garden awaits aggressors. and Peter Finn 9/11,” Preet Bharara, U.S. attor- Voting unanimously, the The Washington Post ney for the Southern District of 15-member council condemned New York, said after the Abu new papal shield North Korea for its Feb. 12 test WASHINGTON — A former Ghaith indictment was unsealed and imposed sanctions aimed spokesman for al-Qaida and son- Thursday. “Today’s action is the at making it more difficult for in-law of its founder, Osama bin latest example of our commit- By Ann Rodgers reporters during a news con- the country to finance its arms Laden, was captured overseas ment to capturing and punishing Pittsburgh Post-Gazette ference Thursday. programs and obtain materi- and secretly brought to New enemies of the United States, no No date has been chosen to als for them. Before the vote, the York this month to face a crimi- matter how long it takes.” VATICAN CITY — The begin voting for Pope Bene- North issued statements describ- nal trial for allegedly conspiring Mr. Abu Ghaith, believed to silent video, reminiscent of 8 dict’s successor in the Sistine ing Washington as a “criminal to kill Americans, U.S. officials be in his late 50s, was part of mm home movies of the 1960s, Chapel. But the last of 115 threatening global peace” and said Thursday. al-Qaida’s inner circle before showed a gardener hoeing a electors was expected to have threatening pre-emptive nuclear Sulaiman Abu Ghaith was the attacks of Sept. 11, 2001, and plot of earth, as if rooting out arrived Thursday from Viet- action. initially detained in Turkey last cemented his ties to the terror- spent plants and preparing for nam, shortly after Father Lom- Today, following the vote, month but was taken into U.S. ist network’s leader by marry- spring. bardi addressed the media. North Korea said it is canceling a custody in Jordan while he was ing bin Laden’s oldest daughter, But the garden was at According to Father Lom- hotline and a nonaggression pact in the process of being deported Fatima. In videos and statements the Vatican, where workers bardi, who attends the cardi- with South Korea and reiterating to Kuwait, according to U.S. offi- posted on websites, he celebrated destroyed a floral rendition of nals’ meetings and is permitted its past threats in anger over the cials. He is expected to appear in the success of the strikes on the the papal shield of Pope Bene- to give vague summaries, 13 Security Council vote. federal court today in the South- World Trade Center and Penta- dict XVI one week after his cardinals gave short talks on The North’s statement said ern District of New York. gon, and warned that al-Qaida abdication. topics that included relation- it would retaliate with “crush- “It has been 13 years since Abu was entitled to kill millions John Brennan will “So that is removed, waiting ships with other Christian tra- ing strikes” if enemies intrude Ghaith allegedly worked along- of additional Americans and assume command of for the new pope,” said the Rev. ditions and the Roman Catholic into its territory. It also said it side Osama Bin Laden in his employ chemical and biological the Central Intelligence Thomas Rosica, a Canadian Church’s charitable work and is voiding past nuclear disarma- campaign of terror, and 13 years weapons. Agency after a 63-34 priest providing English and efforts to help the poor. There ment statements between North since he allegedly took to the “The storms shall not stop, Senate vote and a French summaries for the are no designated themes, and and South Korea. It previously public airwaves, exhorting oth- especially the airplanes storm,” clarification about Rev. Federico Lombardi, the each of the 152 cardinals — said it would cancel a hotline ers to embrace al-Qaida’s cause targeted killings. Vatican spokesman. Father and warning of more terrorist SEE ABU GHAITH, PAGE A-4 Story, Page A-6 Lombardi showed the video to SEE pope, PAGE A-4 SEE korea, PAGE A-4

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C P M C P M G G Y K Y K C P M C P M G Mar 07 2013 11:59:14:173PM Post-Gazette G A-3 Y K Y K

PITTSBURGH POST-GAZETTE  FridaY, MarCh 8, 2013  WWW.POST-GAZETTE.COM A-3 Finance manager says Harper ordered diversion police, FROM PAGE A-1 known how expenses were paid. last month “and said they had week by acting Chief Regina ster was presented with state- stahl is only a witness, to his Warner Macklin III, a spokes- some questions for us regarding McDonald on involuntary paid ments from the I.P.F. account, knowledge. reportedly spoke to Mr. Huss, man for Officer Montgomery- some party and they didn’t give leave despite her desire to return he said. She told authorities that Mr. Difenderfer said Ms. federal agents “were knocking on Ford, said, “She has told me us any specifics on it.” to work. she had not seen them before Ganster believes her role in the her door,” Mr.Difenderfer said. directly she doesn’t know how He said the FBI later told them Mr. Huss would not say why because someone else received investigation is over and wants That week the FBI took boxes that promotion party was paid they didn’t need the information she was kept on leave. them at the bureau. to return to work. of documents from two offices for.” anymore. “It’s very disturbing to us “Did she have a duty to “There was no intent to do at police headquarters on the Following the party, Ms. Gan- Mr. Difenderfer said informa- [that she is on leave] for doing inquire [about the nature of the wrong. None,” Mr. Difenderfer North Side — personnel and ster asked whether it was funded tion about how the party was the right thing,” Mr. Difenderfer account]?” Mr. Difenderfer said said. “She was listening to the finance and special events — and through the I.P.F. account and paid for, plus other rumblings said. “What she needs is a tro- “My answer is ‘No.’ ” orders of the chief of police of the nonprofit Greater Pittsburgh was told no, Mr. Difenderfer about Mr. Harper’s business phy.” He said investigators “defi- this city and her boss, and she Police Federal Credit Union in said. She later saw paperwork dealings, prompted Ms. Ganster Chief McDonald could not be nitely asked … if she had any wants her job. She’s there for 30 the West End. that convinced her otherwise. to go to Mr. Huss. reached for comment. knowledge of the mayor’s involve- years, and she liked the guy.” The credit union, which pro- “It’s one thing to buy shields. “She clearly brought this Ms. Ganster met with the ment, and she said, ‘No.’ ” vides financial services to active It’s another to pay for a pro- to light. Whether or not this FBI, IRS and a federal prosecu- Mr. Ravenstahl met Feb. 20 Jonathan D. Silver: jsilver@ and retired police officers and motional party for the chief’s would’ve been discovered with- tor twice for a total of six hours, with the FBI for two hours. Later post-gazette.com or 412-263-1962. their families — but is not affili- buddy,” Mr. Difenderfer said. out her, I doubt it,” Mr. Difender- Mr. Difenderfer said. She did so that day he forced Mr. Harper’s [email protected], 412-263- ated with the city and is not one Jeff Wallace, operations man- fer said. under a “queen-for-a-day” agree- resignation. 1542 or Twitter @richelord. Liz of 15 authorized city deposito- ager at Olive or Twist, said he did Ms. Ganster went on volun- ment, according to him, which Attorney Charles Porter Jr. Navratil: lnavratil@post-gazette. ries — housed two accounts con- not remember the party. He said tary leave as the investigation provides limited immunity. represented the mayor at the com, 412-263-1438 or on Twitter @ nected to the police chief’s office. the FBI contacted the business blossomed, but was placed this During the meetings Ms. Gan- meeting and said Mr. Raven- LizNavratil. One account is listed as belonging to “Special Events c/o Sandy Ganster.” A separate account — the one that was the focus of Ms. Ganster’s meetings storeWIDe saVINGs & VaLUes! preVIeW Day FrIDay! with authorities — is marked “I.P.F.” with the same address as police headquarters. Mr. Difenderfer said his client told him that Mr. Harper autho- Super Saturday saLe rized the opening of the I.P.F. account without providing a rea- aLL FurNIture ON SaLe: aLL LIvINg rOOmS, bedrOOmS & dININg rOOmS son. The chief drafted a letter for Ms. Ganster to send to the credit union and “listed eight people to sale $599 be on the debit cards” associated KeNtON 88" wOOd with the account, Mr. Difender- baSe mIcrOFIber SOFa fer said. Save $300. Reg. $899. “That’s in a letter to the credit Only at Macy’s. In sage, union from the chief,” according parchment or grain polyester. to Mr. Difenderfer. 64" loveseat. Reg. $869. Ms. Ganster and at least one Sale $579. 88" queen sleeper. other person would steer checks Reg. $1299. Sale $899. no interest from private employers paying 45" chair. Reg. $649. Sale $439. Bixby lift-top cocktail table. if paid in full in for off-duty police services to Reg. $599. Sale $499. 12 months† plus the I.P.F. account, he said. Mil- End table. Reg. $599. Sale $449. lions of dollars each year flow H WebID 669880. no down payment into the police bureau’s special With a minimum $999 furniture purchase events office to pay for police on your macy’s card, subject to credit services. They are supposed to approval. interest will be charged to be deposited into authorized city your account from the purchase date accounts. if purchase is not paid in full within 12 months or if you Ms. Ganster would “go over make a late payment. to the girl’s desk … and the girl offer ends 3/10/2013. would have 25 checks that came in today,” said Mr. Difenderfer. Ms. Ganster, he said, would then identify enough checks sale $1599 whose total matched the amount eLLIOt 3-pc. Mr. Harper said was needed in 138" wOOd baSe the account. chaISe SectIONaL “This was something that Save $800. Reg. $2399. wasn’t done daily. This was Only at Macy’s. In vintage, something that was very spo- taupe or stone polyester radic,” Mr. Difenderfer said. microfiber. Reverse and smaller configurations also on sale. In 2009 a University of Pitts- Pelham cocktail table with burgh check for $5,675.52 that 4 storage ottomans on casters. was made out to the police Reg. $999. Sale $799. bureau was deposited in the I.P.F. H WebID 522838. account. The check was meant to pay officers for off-duty security work and the city for an admin- POWERMOTION istrative fee. sale $3499 It is not clear who made the rIcardO Leather deposit. pOwer-mOtION “On this whole account she SectIONaL was instructed by the chief. She Save $2298. Reg. $5797. didn’t come up with it, ‘Hey, let’s Only at Macy’s. take the money.’ Every question 3-pc. 146" in cognac or brown. by the feds was answered, ‘The 88" dual power-motion reclining chief told me,’ ” Mr. Difenderfer sofa, 65" dual power-motion reclining loveseat and 58" corner. said. Sofa. Reg. $2399. Sale $1599. Money from the account went Loveseat. Reg. $2199. Sale $1399. to pay for police-related items, 47" storage ottoman. Mr. Difenderfer said, such as riot Reg. $749. Sale $439. shields for officers during the H WebID 514715. G-20 summit in Pittsburgh in September 2009 as well as stand- ing ashtrays and outdoor furni- ture for the police bureau. “I analogize it to a petty cash drawer,” Mr. Difenderfer said. sale $1499 “Going out to dinner, you could aLmaFI 2-pc. argue that’s extravagant. But I Leather SOFa Set believe it would pass the smell Save $899. Reg. $2398. test for a private business. The Only at Macy’s. problem is, it’s a tax-paid body.” 79" sofa and 63" loveseat in Mr. Difenderfer said that green, yellow, orange or oyster. Ms. Ganster, 57, of Overbrook, Sofa. Reg. $1249. Sale $899. Loveseat. Reg. $1149. Sale $799. “always had a bad feeling about 38" oval bench. Reg. $399. these accounts, but she worked Sale $259. H WebID 251408. under the chief.” Her concern was that the account was unau- thorized, he said. Mr. Difenderfer also said there were pages of restaurant expenses associated with at least some of the debit cards connected smaLL sCaLe FUrNItUre to the account. Those cards were issued to Mr. Harper, Mayor Luke Ravenstahl’s three body- guards (one of whom is retired), Ms. Ganster, her second-in-com- mand, Tamara L. Davis, Deputy Chief Paul Donaldson and Assis- tant Chief Maurita Bryant. Mr. Difenderfer said Ms. Gan- ster never used her card. Mr. Difenderfer said the other account was already in exis- tence — the “c/o Sandy Ganster” account — since 2004. He did not know who opened that account smaLL sCaLe FUrNItUre or why but said it was not used as frequently as the I.P.F. account. He said that Ms. Ganster sale $1499 cONcOrde 3-pc. FuLL Or QueeN Set sale $1199 metrOpOLItaN 7-pc. dININg Set became angry when she learned Reg. $2397-$2497. Only at Macy’s. Bed, nightstand and your choice of dresser or Save $1050. Reg. $2249. Only at Macy’s. 44"x60" table opens to 96" with two 18" leaves; 6-drawer chest. Cherry veneers and hardwood solids. King set. Reg. $2897. Sale $1799. that the bill for a multi-thou- plus, 4 side chairs and 2 arm chairs. Anagre veneers with hardwood solids. Credenza. Storage options also on sale. Nightstand. Reg. $599. Sale $399. H WebID 499295. Reg. $999. Sale $799. 2-pc. china cabinet. Reg. $1799. Sale $1399. H WebID 252262. sand-dollar party to celebrate the August promotion of Eric Holmes to commander from sergeant was paid for from the shop IN store • CLICK oN maCys.Com • CaLL Us, 1-800-45-maCys funds. “Eric Holmes, his promo- tion party was paid out of this account, which really bothered her. And she knew her name was on it, and she knew it wasn’t right,” Mr. Difenderfer said. Lt. Larry Scirotto, a close friend of Cmdr. Holmes, said he attended the party at Olive or Twist, a Downtown martini bar and restaurant. He said the party was orga- nized by Officer Tonya Mont- ➤ Reg. pRices aRe offeRing pRices and savings may not be based on actual sales. supeRsatuRday sale pRices in effect 3/8-3/10/2013. items shown are part of a sale in gomery-Ford, one of four police progress. furniture must be delivered, and a delivery fee will apply. ask your sales associate for further information on delivery and restocking fees, and other policies. most furniture carries headquarters employees put on manufacturers’ warranties; to obtain a manufacturer’s warranty before purchasing, visit a store or write: macy’s Warranty dept., p.o. box 1026, maryland Heights, mo 63043, attn: consumer paid administrative leave in the Warranties. prices and merchandise may differ at macys.com. fuRnituRe not in all stoRes, foR locations, use tHe online stoRe locatoR at macys.com H enter the Webid course of the federal investiga- in the search box at macys.com to order. 3020005 tion. †INTEREST CHARGES accrue on the promotional balance from the transaction date and all accrued INTEREST CHARGES for the entire promotional period will be added to your account if the Lt. Scirotto did not know who promotional baballaanncece is nonott papaiidd in fufullll by ththee enendd of ththee prompromotiotionaonall peperriioodd or if yoyouu fafaiill to mamakkee a rereqquuirired papayymmeenntt on yoyouurr accoaccouunntt whwheenn duduee.. miminimumnimum momonnthlthlyy papayymmeennttss of ththee grgreeatater of $2$255..0000 or paid for the party or how much it 3.25% of yoyouurr prompromotiotionaonall baballaanncece (which cacallccuulalatiotionn is roroundeundedd up to ththee nearneareesstt dodollllaar)r) areare rereqquuirired plusplus ananyy miniminimummum papayymmeenntt otothheerwisrwise duduee.. mamakinkingg ththee miniminimummum momonnthlthlyy papayymmeenntt wiwillll nonott papayy ofofff your promotional balance in time to avoid INTEREST CHARGES. see below for details.†† cost — he said there were hors’ d’oeuvres and no beverages — ††NO INTEREST FOR ONE YEAR if paid in full by pRomotion eXpiRation date. Requires a minimum purchase of $999 in the furniture department charged to your macy’s card. subject to but said he and others made credit approval. INTEREST CHARGE will be determined by applying an ANNUAL PERCENTAGE RATE (“APR”) of up to 26.99% (but if your account has a variable apR, a variable apR of 24.50% as “significant” donations and that of february 1, 2013) to the account’s average daily balance with a minimum monthly INTEREST CHARGE of $2.00. ththee vavarriiaableble apR will vavarryy with ththee marmarket based onon the prime RatRate. dedefeferred ofofffeerr Cmdr. Holmes would not have good march 8-10, 2013. see credit card agreement for additional details.

C P M C P M G G Y K Y K C P M C P M G Mar 22 2013 11:21:58:031PM Post-Gazette G A-1 Y K Y K

AMERICAN EAGLE’S A TASTE FOR PENS RALLY SKINNY STUNT RENOVATION VS. ISLANDERS BUSINESS, A-8 HOME & GARDEN, B-1 SPORTS, D-1

$1.00 SATURDAY, MARCH 23, 2013 VOL. 86, NO. 235 3/23/13  final . Obama brokers Harper indicted resolution His attorneys say he will plead guilty with Israel, Turkey A federal grand jury charges the former Pittsburgh police chief on one count By Jodi Rudoren and Mark Landler of conspiracy and four counts of failing to file federal income tax returns The New York Times JERUSALEM — Under per- By Jonathan D. Silver, sistent prodding from President Liz Navratil and Rich Lord Barack Obama, Israel and Tur- Pittsburgh Post-Gazette key resolved a bitter three-year dispute Friday with a diplomatic Nate Harper began the How did thaw that will help a fragile year as a proud, robust and region confront Syria’s civil respected police chief running more than war, while handing the presi- a major metropolitan depart- dent a solid accomplishment ment and earning more than as he closed out his visit to the $100,000 a year. $70,000 in Middle East. But on Friday, Mr. Harper The breakthrough occurred in — ousted from his post — stood stolen checks the most improbable of surround- quietly before a federal judge ings: a trailer parked on the tar- as an accused criminal, look- mac of Ben-Gurion International ing defeated and shrunken in go unnoticed? Airport. Moments before Mr. his loose-fitting sport coat and Obama left for Jordan, Israeli slacks. By Moriah Balingit Prime Minister Benjamin Netan- A federal grand jury indicted Pittsburgh Post-Gazette yahu phoned Turkish Prime Mr. Harper on one count of con- Minister Recep Tayyip Erdogan spiracy to use public funds for As described by U.S. Attor- and apologized for deadly errors personal use and four counts ney David J. Hickton, the in Israel’s 2010 raid on a Turkish of failing to file federal income scheme that former Police Chief ship that was trying to bring aid tax returns. Nate Harper used to siphon to Palestinians in Gaza. Prosecutors said Mr. Harper thousands of dollars from the After years of angrily and other unnamed individu- Pittsburgh Bureau of Police demanding an apology, Mr. als diverted more than $70,000 was striking in its simplicity. Erdogan accepted Mr. Netan- meant for the City of Pittsburgh Businesses that hired police yahu’s gesture, and both sides to off-the-books accounts and officers as security guards agreed to dispatch envoys to tapped it with debit cards. through the special events each other’s nations, having The grand jury alleged Mr. office were billed for the offi- recalled them in 2011. Harper spent more than $30,000 Darrell Sapp/Post-Gazette cers’ wages and administra- The president’s involvement, a over a four-year span on meals, Then-Pittsburgh Police Chief Nate Harper at City Council’s chambers in March 2010. tive fees. The businesses sent senior U.S. official said, was cru- booze, a satellite radio system Below: U.S. Attorney David J. Hickton, left, and Robert G. Del Greco Jr. both addressed checks to the police bureau’s cial to both leaders, which is why for his car, movies from a Mon- the indictment Friday. Mr. Del Greco said client Mr. Harper would plead guilty to all counts. North Side headquarters. The Mr. Netanyahu scheduled the roeville porno shop, a 32-inch checks were meant to be for- LCD television, perfume and warded to the city’s finance SEE mideAs t, PAGE A-5 other personal expenses. fair indictment in that we are office, where employees would “The allegations represent certain that the allegations in deposit them into the city’s gen- the worst kind of public cor- the indictment would be proved eral fund at PNC Bank. ruption. These monies belong in a court of law.” Instead, then-Chief Harper to the taxpayers, and they Mr. Hickton pegged the max- “instructed” staff in the police have been taken by theft,” U.S. imum penalty for Mr. Harper bureau’s office of personnel and Attorney David J. Hickton said, at nine years in prison and a finance to deposit some of those flanked at a media briefing by fine of $650,000. checks into two unauthorized prosecutors and agents from But Mr. Del Greco’s co-coun- accounts at the Greater Pitts- the FBI and IRS. sel, Robert Leight, said based burgh Police Federal Credit In a news conference a short on Mr. Harper’s history and Union, according to the fed- time after Mr. Harper appeared reputation it is more likely he eral indictment and a whistle- before U.S. Magistrate Judge would serve 10 to 16 months — blower memo obtained by the Robert C. Mitchell, his attor- possibly under house arrest. Pittsburgh Post-Gazette. Over neys had a clear and surprising In a 13-page indictment the four years, around $70,000 was message: Mr. Harper intends to grand jury said Mr. Harper Darrell Sapp/Post-Gazette Michael Henninger/Post-Gazette deposited in the unauthorized plead guilty as charged. “instructed” police bureau accounts and nearly $32,000 Chinua aChebe “I think we’re prepared to employees to misappropri- of that ended up in the chief’s Africa’s literary titan plead to that indictment with- ate cash and checks totaling MORE COVERAGE At pOst-GAzEttE.COM own wallet, where he used it for has died at the age out modification,” Robert G. $70,628.92 between July 2008 ■ What the revelation that ■ View related video reports meals and electronics, among Del Greco Jr. said. “The evi- and November 2012. Nate Harper didn’t file taxes and an interactive graphic on other things. of 82. Obituary, dence is unambiguous and for four years means. Page the investigation that led to Page-A-11 overwhelming. I think it’s a SEE HArper, PAGE A-4 A-4 the indictment. SEE mOneY, PAGE A-3 Pennsylvania Former Pa. environmental senator secretary Lincoln to step down resigns pike Krancer praised, commission criticized for actions By Don Hopey Pittsburgh Post-Gazette By James O Toole Pittsburgh Post-Gazette Mike Krancer, director of the state Department of Environ- In the backwash of a damn- mental Protection who often ing grand jury report on the sparred with federal regulators, operations of the Pennsylvania Jack Winterbottom, state legislators and environmen- Turnpike, former state Sen. J. a Pittsburgh tal groups, will resign April 15. William Lincoln resigned Fri- paramedic with Gov. Tom Corbett’s office day as a member of its board of Rescue 2, buys announced the resignation Fri- commissioners. his lottery tickets day. Mr. Corbett, who appointed While he was not charged, Mr. from cashier Mr. Krancer to his Cabinet in Lincoln’s name and testimony Antoinette Sciulli January 2011, praised him for were cited in the recent grand at Smithfield taking the department “back jury presentment that depicted News, Downtown. to basics,” reorganizing it, and a corrupt culture of widespread John Heller/Post-Gazette overseeing the permit review bid-rigging and pressure on process and the permit decision the turnpike’s vendors and con- guarantee, which the governor tractors for quid pro quo politi- By Amy McConnell to the south of France and said made the DEP’s permitting cal contributions. The report Schaarsmith invest the rest of it,” said process more consistent and resulted in charges against eight Pittsburgh Post-Gazette Raymond Pierce, a 58-year- efficient. figures surrounding the turn- POWERBALL old Medicare grievance “I appreciate Mike’s unwav- pike, including another former With $320 million up analyst from Baldwin who ering commitment to this job, state senator, Robert Mellow, for grabs in tonight’s bought a Powerball ticket knowing that it took him away and Joseph Brimmeier, the toll Powerball jackpot, many inside Smithfield News, from spending quality time with road’s former executive director, FEVER residents of southwestern Downtown, on Friday night. his wife and children,” Mr. Cor- who was until the day before he Pennsylvania just can’t Why the south of France, bett said. “While I am sorry to was indicted, a member of the resist the temptation to as if one needed to ask? lose his expertise in the admin- board of the Allegheny County There’s a $320 million spend a few dollars — and “That’s where all the istration, I am glad this is an Port Authority. sometimes much more — beautiful women are at,” he opportunity for him to go back The grand jury noted that Mr. Powerball jackpot tonight, and on a dream. said with a laugh. home.” “I’d take care of my fam- SEE turnpike, PAGE A-3 people are chasing their dreams ily, and then go on a trip SEE pOwerbAll, PAGE A-2 SEE krAncer, PAGE A-3

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C P M C P M G G Y K Y K C P M C P M G Mar 22 2013 11:17:27:722PM Post-Gazette G A-4 Y K Y K

A-4 PITTSBURGH POST-GAZETTE  SaturdaY, MarCh 23, 2013  WWW.POST-GAZETTE.COM harper indicted Failing to file federal tax return is lesser of 2 evils

By Rich Lord to do with some personal issues man said then that it wasn’t “No public official gets a free that federal sentencing guide- lowing up on a non-filer if a tax- Pittsburgh Post-Gazette and procrastination,” said Rob- an issue, but media, including pass to ignore the tax law,” she lines suggest 10 to 16 months in payer is making an effort to file a ert Del Greco, one of two law- the Pittsburgh Post-Gazette, said. prison, given the crimes and return,” Mr. Nicola said. The IRS Nate Harper has long had yers representing Mr. Harper. reported the payment problems. Failure to file, however, isn’t the amounts of money involved. may take other steps, like obtain- trouble paying his taxes, an Losses of family members and From 1996 through 2007, legally as bad as fraudulently They plan to seek a sentence of ing bank records and filing a issue that came up when he was the April 4, 2009, fatal shooting Allegheny County filed 10 delin- filing. That’s especially true in house arrest. return for the taxpayer, based named Pittsburgh’s police chief. of three city police officers were quent tax actions against Mr. cases like Mr. Harper’s, when the There was no hint in public on assumptions favorable to the This time, that mistake may among the distractions that kept Harper for unpaid property bulk of the defendant’s income records, prior to Friday, that government, and then demand- have actually worked to his ben- him from filing returns, Mr. Del taxes. The city of Pittsburgh filed came through a paycheck from Mr. Harper was not filing tax ing payment for any taxes due. efit. Greco said. another three — two for unpaid which taxes were withheld. returns. Though the IRS can file “The wheels of the IRS and the Mr. Harper, 60, was indicted He called the failure to file property taxes, and one for a Federal sentences for filing public liens on a person’s house federal government sometimes Friday on one count of con- “indefensible,” but noted that delinquent sewer bill. The 13 fraudulent returns are based or bank account for unpaid move slowly,” Mr. Fellin said. “A spiracy, related to the diversion taxes were withheld from Mr. actions reflected $6,488 in unpaid on the difference between the taxes, it has never done that to lot of times it takes them years of funds into an off-the-books Harper’s city paycheck. “The taxes, which Mr. Harper usually actual income and the reported Mr. Harper. to catch up with somebody who account that he then tapped for amount [of unpaid taxes] isn’t a covered within a short time of income. There may be reasons the hasn’t filed a return.” $31,987 in personal expenses great amount.” the filings, but occasionally let But sentences for failure to file IRS didn’t seek to slap a lien on Mr. Nicola said it generally 1 including restaurant meals, an Mr. Harper, Pittsburgh’s fester for as long as five years. are based on the amount that the Mr. Harper’s property, even for takes 2 to 2 ⁄2 years of taxpayer XM radio, a 32-inch LCD televi- police chief until his forced There is no indication that defendant owed, but didn’t pay. unpaid taxes from as early as noncompliance for the IRS to file sion and more. Four other counts resignation Feb. 20, came into Mr. Harper continued to ignore That’s typically a fifth to a quar- 2008. a lien. had him willfully failing to file the office under something of a local levies after 2007. Instead, ter of the amount of income that When an employer sends a Though there is a time lag, the federal tax returns in 2008, 2009, financial cloud. he stopped filing 1040s, which wasn’t subject to withholding. W-2, but the employee doesn’t IRS’s computers will inevitably 2010 and 2011. When he was picked to be is a misdemeanor, his lawyers “Maybe he [failed to file] file a return, it usually takes the identify a non-filer, and agents Failure to file is a crime, but chief in late 2006, his property explained. as a mechanism,” said James IRS around a year to take action, will eventually get tough, he it brings a lesser penalty than taxes to the city and county were “He willfully chose not to file Fellin, a forensic accountant at said Joe Nicola, a tax partner said. “Simply not filing a return would submission of a fraudu- overdue. Records on file with his income tax returns for four a Downtown-based firm, The at Sisterson & Co. It then sends is a bad idea.” lent tax filing. It’s also easier to Allegheny County showed that years,” said IRS Special Agent Nottingham Group. “I can’t be notices and tries to meet with explain a forgotten return — or his Stanton Heights home was in Charge Akeia Conner, not- prosecuted for filing a false tax the taxpayer. Rich Lord: rlord@post-gazette. four — than a falsified one. regularly subject to liens for ing that his income was about return if I don’t file it.” “The service will hold off, cer- com, 412-263-1542 or Twitter @ “The chief’s explanation has delinquent levies. A city spokes- $475,000 over that span. Mr. Harper’s attorneys said tainly, examining a return or fol- richelord. Harper to plead guilty on 5 counts

HARPER, FROM PAGE A-1 Instead they went into either the “I.P.F.” account — with an The indictment listed 14 address at police headquarters diverted checks, 23 withdrawals The indicTmenT — or the “Special Events c/o by Mr. Harper and 56 Visa card Sandy Ganster” account at the purchases — only a sampling of Pages 7, 8 and 9 of the 13-page credit union. The credit union is the total diversions and transac- indictment of Nathan E. Harper by not an authorized depository for tions, Mr. Hickton said. a federal grand jury detail some of city funds. Mr. Harper’s attorneys said the funds accessed by Mr. Harper Sandra J. Ganster, the police federal agents met with him five in the Special Events Account and bureau’s personnel and finance times — at his Stanton Heights the IPF Account via two Visa cards manager, is on paid administra- home, his chief’s office and his for his personal use. tive leave. Since February Ms. attorney’s office — between ■ Ganster has met twice with fed- October 2012 and last week. See the full version of the eral investigators under a grant The investigation had pub- indictment at post-gazette.com of limited immunity. lic and private moments. Last She also appeared Friday month, federal agents carried morning before the grand jury, boxes of documents from the again under immunity. police bureau, drawing the “She had limited knowledge attention of the media. More qui- of the accounts,” said her attor- etly, a few weeks ago investiga- ney, William H. Difenderfer. tors executed a search warrant “She never saw the invoices.” for paperwork at Mr. Harper’s Mr. Difenderfer said he is house. waiting for the bureau to bring Over the months the inves- Ms. Ganster back to work. tigation’s focus shifted from a “We’re waiting for the phone questionable city contract for call about when she can come the police bureau to Mr. Harp- back or a damn good explana- er’s tax returns to his personal tion as to why she’s not [there],” use of funds meant for the city. he said. Friday morning, the grand Mr. Difenderfer has said his jury put the finishing touches client told investigators that Mr. on its indictment after two piv- Harper directed her to open the otal police bureau civilians I.P.F. account and that she fol- appeared before it at the Down- lowed his orders in diverting town federal courthouse. the funds. “This is a sad day for most Also appearing Friday before of us,” Mr. Hickton said, not- the grand jury was police ing that Mr. Harper cooperated bureau civilian Karen Palmer, with many federal law enforce- who figured prominently in a ment efforts. “He worked with January 2013 internal police us on [the] G-20 [Summit]. He memo obtained by the Post- helped us when we were try- Gazette. ing to find out who was making In the memo, a police offi- bomb threats at the University charges of noTe cer in special events told her of Pittsburgh. This is puzzling supervisor that Ms. Palmer and baffling behavior.” Vendor Amount confided in her that checks And, Mr. Hickton said, it is Purchase were being taken off her desk illegal. by Ms. Ganster and her second- “It is not proper to divert the Terry Poe Auto $235.40 in-command, civilian employee money in the first place, and XM Radio Tamara Davis. it was not proper to spend the The Post-Gazette first money on himself. We are com- Houston-Starr $700.85 reported that a $5,675.52 check mitted to follow the evidence Oven upgrade from the University of Pitts- wherever it leads us.” Little Giant Ladders $54.00 burgh — meant to pay for offi- Mr. Hickton declined to dis- Ladder accessories cers guarding a mobile science cuss specifics of the investiga- truck — was deposited into the tion, which he said was ongo- Sam’s Club $391.38 I.P.F. account at the credit union ing. 32” LCD TV + other on Sept. 28, 2009. Mr. Harper’s attorneys said On the same day, Ms. Davis their client initially used the Monroeville News $74.88 withdrew $4,000 from the accounts for what he believed Movies account for reasons that neither were legitimate police bureau she nor her attorney or spokes- expenses. But over time his use man have explained. Ms. Davis shifted. has not been charged with any “I think the lure of the crimes. unmonitored accessibility In the memo, Officer Christie of that account proved to be Gasiorowski writes that when an irresistible temptation for she learned in 2009 that the Nate,” Mr. Del Greco said. “It’s check had been diverted, she a felony, it’s a federal offense. It had been preparing for the possi- Chief Paul Donaldson said. alerted then-Assistant Chief cost him his career, possibly his bility that Mr. Harper would be Mr. Harper resigned under Regina McDonald, who at the pension.” indicted in the Bedway matter. pressure Feb. 20 — the same day time oversaw special events and “As he told both of us,” Mr. They said they had no indica- Pittsburgh Mayor Luke Raven- personnel and finance. Leight said, “it’s just bad judg- tion until this year that inves- stahl met with federal authori- City officials, including ment on his part.” tigators were looking into the ties who revealed information acting Chief McDonald, have As for Mr. Harper’s failure flow of funds through the Pitts- about the investigation. refused to say what she was told to file income tax returns from burgh Bureau of Police and, spe- The federal probe into the at that time and who, if anyone, 2008 through 2011 — during cifically, through Mr. Harper’s diversion of funds became public she notified. which time he earned more than office. Feb. 12, when the FBI removed Former U.S. Attorney Mary $400,000 from the city — his The attorneys described documents from police head- Beth Buchanan, who served attorneys had a simple answer. themselves as “heartened” that quarters. It was Mr. Harper’s in that position until Novem- “The chief’s explanation has Friday’s indictment steered 60th birthday. ber 2009, said she did not recall to do with some personal issues clear of implicating Mr. Harper Throughout that week, the anyone alerting her to the and procrastination,” Mr. Del in anything to do with Alpha FBI and the IRS appeared at the diverted check but would have Greco said. Outfitters. Greater Pittsburgh Police Fed- “certainly” been interested in A possible indictment had In carefully worded remarks eral Credit Union in the West investigating if she had known been in the wind for weeks, if not announcing the charges against End. about it. months, ever since Mr. Harper’s Mr. Harper, Mr. Hickton said The credit union serves active Mr. Harper’s attorneys did former friend, Art Bedway Jr., his office continues to investi- and retired Pittsburgh police not detail how or when their cli- was charged in November with gate both the Alpha Outfitters officers and their families. It is ent decided to begin using the conspiracy, bribery and mail contract and the alleged misap- Darrell Sapp/Post-Gazette not affiliated with the city or the credit union funds for personal fraud. propriation of funds at the police police bureau. expenses. They also did not say Prosecutors said Mr. Bed- bureau’s North Side headquar- Suspended police finance manager Sandra J. Ganster walks Federal agents were tracing a whether Mr. Harper instructed way formed a company called ters. along Grant Street, Downtown, after appearing at the Federal money trail that led from private his subordinates to take the spe- Alpha Outfitters LLC that won He would not say whether Courthouse on Friday morning. businesses to the credit union. cial events checks and deposit an allegedly rigged bid to install other indictments are expected. As outlined Friday by Mr. them in the credit union. equipment in Pittsburgh police Mr. Harper, typically reti- Hickton, who used a large paste- “I think he was led to believe cars by bribing former city sys- cent, said few words to Judge rassed and distraught and sim- Public Safety Director board chart on an easel as a this conduct was OK,” Mr. tems analyst Christine Kebr. Mitchell as he agreed to turn ply declined to show,” Mr. Del Michael Huss said he was “dis- prop, private businesses hire off- Leight said, declining to specify Ms. Kebr pleaded guilty in over his passport and pleaded Greco said. Mr. Leight said Mr. appointed, a little bit disgusted.” duty police officers to moonlight who gave him that impression. December to one count of con- “not guilty” as a formality. He Harper has not taken the inves- Police brass took pains to as security. “He’s humbled. He’s 60 years spiracy. was released on $100,000 unse- tigation well. note that the alleged acts by the Most businesses pay the offi- old. He has to put the pieces back Documents and statements cured bond and, ever the dapper “He’s lost 20 pounds in the former chief did not tarnish the cers through the police bureau’s together,” Mr. Del Greco said. by federal prosecutors have dresser, left the courthouse with last month,” Mr. Leight said. bureau as a whole. special events office, which “He’ll end up a convicted felon.” indicated that Mr. Bedway and his overcoat and hat. “He’s very upset. He’s humbled. “What message we have to schedules and bills for the ser- Ms. Kebr met with a third indi- Mr. Harper originally He’s affected. It has affected his instill in the other people in the vices. Jonathan D. Silver: jsilver@ vidual about the bids. intended to appear for the news mental health.” bureau of police is: ‘You did noth- Millions of dollars flow post-gazette.com or 412-263-1962. Mr. Harper told the Pitts- conference at Mr. Del Greco’s Mr. Del Greco said there have ing wrong. You have no reason to through the office each year. Liz Navratil: lnavratil@post- burgh Post-Gazette — and his offices at PPG Place, Downtown, been no discussions of a plea be ashamed of who you are, what The funds go to the bureau’s gazette.com, 412-263-1438 or on attorneys reiterated Friday — an hour after his arraignment, bargain. you are or what you do, and we personnel and finance office, Twitter @liznavratil. Rich Lord: that he did not take any money but did not. Public officials commented encourage you to continue to do and from there are to be placed [email protected], 412-263- from Mr. Bedway. “We had expected and hoped about the end of Mr. Harper’s your duties and not be impacted in one of the city’s 15 authorized 1542 or on Twitter @richelord. Mr. Del Greco and Mr. Leight that he would but he’s embar- long and distinguished career. by these goings-on,’ ” Deputy depositories. Moriah Balingit contributed.

C P M C P M G G Y K Y K C P M C P M G Mar 23 2013 12:10:39:340AM Post-Gazette G A-3 Y K Y K

PITTSBURGH POST-GAZETTE  SaturdaY, MarCh 23, 2013  WWW.POST-GAZETTE.COM A-3 Environmental secretary harper indicted if it was done, it was not done beyond the level of the police resigning to rejoin law firm bureau,” Mr. Lamb said. Representatives from Giant Eagle and Promowest North- krancer, FROM PAGE A-1 that’s how he approached shore, two other companies decisions at the agency,” Mr. whose checks were diverted into Prior to his DEP appoint- Jugovic said. “The secretary illegal accounts, said they had ment, Mr. Krancer, 55, of Bryn should be setting policy at the not been contacted by authorities Mawr, Montgomery County, 10,000-foot level, not be down in about the checks. As far as they was chief judge on the state’s the weeds, adjudicating deci- knew, the money ended up in the Environmental Hearing Board sions about enforcement in city’s hands, they said. and an unsuccessful candidate Washington County.” City officials, including Mr. for the Pennsylvania Supreme John Hanger, DEP secretary Lamb and Public Safety Director Court in 2007. He will rejoin his under former Gov. Ed Rendell Mike Huss, have said the way the former law firm, Blank Rome and a candidate for the Demo- funds are accounted for in the LLP, an international law and cratic nomination for governor, city’s ledgers was also problem- lobbying firm that has clients said Marcellus Shale gas regu- atic and may have hidden the fact in the natural gas industry, as Michael Krancer lation has suffered under the that money was going missing. a partner in its Philadelphia Corbett administration and The special events office issues office and will chair the firm’s the DEP has been demoralized a monthly invoice to businesses energy, petrochemical and nat- property owners should be under Mr. Krancer. for the surcharge — called the ural resources practice. notified of water well contami- “Morale at DEP is at devas- cost recovery fee — of $3.85 per Kathryn Klaber, chief execu- nation related to Marcellus tatingly low levels,” Mr. Hanger Darrell Sapp/Post-Gazette officer per hour. The surcharge tive officer of the Marcellus Shale operations. said. “Corbett’s DEP has failed is meant to cover lawsuits, work- Shale Coalition, an industry Mr. Krancer also has been to adequately regulate gas “How the money was diverted.” U.S. Attorney David J. Hickton ers’ compensation claims, court lobbying organization, said Mr. criticized for the incomplete drilling and taken combative points to a diagram at his news conference Friday. time and other expenses that Krancer’s regulatory approach reporting of well water test stances when citizens present might be incurred by having an has emphasized “constructive- results to property owners, the agency with legitimate con- officer work a side job and last ness and pragmatism” to good and recently for being evasive cerns and problems.” year generated nearly $800,000. effect. at a state House appropria- Mr. Krancer is the third Cab- Some businesses are also billed “Under his leadership, Penn- tions committee meeting when inet secretary to resign during Follow the money: for the officers’ wages, while sylvania has implemented questioned about his views on the past several months. other businesses pay the officers world-class regulatory require- climate change and its human The public welfare director, directly — with cash or a check. ments for the industry, and causes. Gary Alexander, resigned last All of that money, including responsible natural gas produc- “Gov. Corbett now has an month. And in October, Health The simple scheme the hundreds of thousands of dol- tion has soared, resulting in opportunity to appoint a quali- Secretary Eli N. Avila quit his lars a year generated by the fee, more local jobs, cleaner air and fied and appropriate leader who post after less than two years is booked as a “negative expen- strengthened American energy understands the risk of climate in the job. that had evaded diture” in the premium pay line security,” Ms. Klaber said. disruption and will protect the G. Terry Madonna, a Frank- item, the line item that pays an But Mr. Krancer’s man- air our kids breathe and the lin and Marshall College officer’s wages for the side jobs. agement style made him few water our families drink,” said professor and pollster, said The money generated by the fee friends among Democratic Jeff Schmidt, Sierra Club Penn- businessmen who join govern- detection for years has the effect of “padding” the legislators, environmentalists sylvania Chapter director. ment tend to move on more fre- line item, Mr. Lamb said, and and even some DEP staffers, Mr. Krancer chaffed at scru- quently than career politicians, may have obscured the fact that as he sought to concentrate tiny by the U.S. Environmental but noted, too, that the DEP sec- money, FROM PAGE A-1 at a PNC Bank — the bank that money was being diverted. enforcement power within a Protection Agency, which in retary has been an extremely holds the city’s general fund — “That would have enabled small circle of administrators May 2011 requested that the high-profile position in recent But how did no one notice and the deposit slip is sent to Mr. police officers to still get paid in Harrisburg. DEP do a better job of sam- years. that money the bureau billed for Lamb’s office. even if checks were being taken Just two months after he pling, monitoring and regulat- “There isn’t any doubt the wasn’t ending up in the city’s In the controller’s office, out,” he said. “I think that’s part was appointed, he required ing Marcellus Shale drilling DEP job is one of the three or bank accounts? How did such employees compare the deposit of the reason that it was able to department field inspectors wastewater discharges near four most highly visible and brazen misappropriation go on slip to the spreadsheet generated occur.” and regional directors to get public drinking water sources. controversial Cabinet posi- for years without detection? by the police bureau to ensure Mr. Huss, who’s looking into approval from his office before The EPA and Mr. Krancer tions,” Mr. Madonna said, “There is something very they were deposited. reforming the special events issuing Marcellus Shale drill- also clashed over the federal particularly during periods of wrong with this system,” said “Right now, all they’re getting office, said money due to officers ing permits, enforcing regu- agency’s involvement in assess- expanding energy and conser- Controller Michael Lamb, who is is a list of checks that’s getting for wages and the money due to lations or issuing violation ing water contamination vation efforts. “Now we have auditing the special events office. sent over,” Mr. Lamb said. The the city in the fee should have notices. related to shale gas drilling in another energy expansion with “That’s part of what we’re look- problem is, he said, the list was never been mingled. “I don’t Staffers internally criticized Dimock, Susquehanna County, Marcellus Shale, which has all ing into.” generated “after the checks were know why it was ever done that the policy, and a DEP adminis- in January 2012. Mr. Krancer led into a myriad of controver- Those are the questions many getting misdirected.” way,” he said. “That needs to trator had to send an apology to wrote that the EPA’s under- sies,” he said. city officials are asking them- But no one — not in the police change.” regional directors for the “sig- standing of the well water con- E. Christopher Abruzzo, dep- selves as they craft legislation and bureau, not in the city’s finance nificant confusion and conster- tamination issues there was uty chief of staff for the gover- policy to plug the holes in over- office and not in the controller’s A fix? nation” it caused. “rudimentary.” nor, was appointed acting DEP sight that allowed theft within office — compares invoices to Ms. Kail-Smith has proposed Also in March 2011, and The DEP justified all of those secretary. The governor’s news the walls of the police bureau to deposits. And no one is verify- legislation to direct all money that without public notice, Mr. changes in the name of enforce- release announcing the change go unnoticed. ing that the checks that arrive at came into the special events office Krancer gave top administra- ment consistency, but his judi- said Mr. Abruzzo has worked “We’re going to use this as a the bureau’s special events office into a separate trust fund, where it tors in Harrisburg sole power cial temperament and need for closely with Mr. Krancer and learning experience to move the actually make it to the bank. would get extra scrutiny. to approve violation notices control played a role, too, said the DEP staff in his position as city forward and make sure that “How did this happen?” Coun- “We want to know for certain and enforcement actions in George Jugovic Jr., an attorney deputy chief of staff and would we’re addressing the issues that cilman Patrick Dowd said. “How where those funds go,” she said. cases involving other state or who was DEP southwest region hold both positions until a suc- we can,” said Councilwoman The- did they deposit money into a “Now there’s a way to direct federal agencies. director in the Rendell admin- cessor is named. resa Kail-Smith, the chairwoman city bank account and not know where those funds go, and how And in September 2012 — istration. He now is president of the public safety committee. what they were and were not they’re reviewed.” again without public notice — and CEO of Citizens for Penn- Don Hopey: dhopey@post- She’s proposing legislation that depositing?” Though the finer points of the he transferred decisions from sylvania’s Future, an environ- gazette.com or 412-263-1983. would provide more oversight of This process, called recon- bill are still being worked out, field offices to Harrisburg mental organization. Karen Langley contributed to the special events office funds. ciliation, would have likely Ms. Kail-Smith hopes to move the administrators about when “He likes being judge, and this report. turned up something amiss. entire administration of special Bad accounting The indictment lists 14 checks events office out of the bureau. and fuzzy numbers that were deposited in the unau- “We’re going to use this as a Whether Mr. Harper knew thorized account, some of which learning experience to move the it or not, the system of pilfering have invoices in corresponding city forward and make sure that proud of my time as a commis- checks appears to have exploited amount listed on documentation we’re addressing the issues that sioner and believe that lasting some striking weaknesses in the from the special events office. we can,” she said. Ex-senator improvements made to the way the city handled the millions For example, one of the checks Mr. Huss endorses the plan, turnpike network in Western of dollars of cash paid to the spe- stolen from the bureau and saying he believes a trust fund Pennsylvania and on the Mon cial events office every year. deposited in the illicit account will make it easier for them to Lincoln Fayette Expressway and the A check’s journey begins at was for $2,804.17 from Fibertech, track the money than if it’s being Southern Beltway will prove to the bureau’s special events office, a fiber optic network firm. The recorded in a premium pay line be invaluable to the future eco- housed in a room in the ground printout from the special events item. quitting nomic health of the region.” floor of the bureau’s North Side office indicates the police bureau “We want to identify, to break Anthony Lepore, a Senate headquarters on Western Ave- billed Fibertech for that amount out not only the hourly rate, but Democratic aide, also testi- nue across from the chief’s office. and records a payment from the any fee,” he said. “We want to turnpike fied before the grand jury There is some accounting of the firm. count that money separately. We under a grant of immunity and funds that occurred within those No one apparently verified want to be able to use it for those J.William Lincoln described the workings of the walls. A printout from the office that the money Fibertech was legitimate expenses.” commission toll road’s pay-to-play opera- shows invoice numbers, business billed for ended up in the city’s tions. He remains on the pay- names and what those businesses bank account . Moriah Balingit: mbalingit@ career in public service to the roll of the Democratic caucus. owe, as well as what they’ve paid. “There doesn’t appear to have post-gazette.com, 412-263-2533 or turnpike, FROM PAGE A-1 people of the Commonwealth of “Tony continues to work But it’s unclear whether the been any periodic reconciliation on Twitter @MoriahBee. Alex Pennsylvania.” with us,” said state Sen. Jay office is recording the receipt of invoices versus payments or Zimmerman contributed. Lincoln, 72, testified under a In a statement, the commis- Costa, the minority leader. “We of checks or their deposit in the grant of immunity. sion chairman, William K. Lie- view his role as a little differ- city’s bank accounts. At one point in its exten- berman, said, “We respect Sen. ent than the role of some of the From there, bundles of checks sive report, the grand jury Lincoln’s decision to resign; other people mentioned.” are taken to the police bureau’s described an incident in which given the circumstances, he He noted that Mr. Lepore’s office of personnel and finance, one vendor gave $6,100 in gift made the right choice.” dealings with the turnpike located in a large room about 30 certificates to Mr. Lincoln and Mr. Lincoln, of Connells- involved conveying the instruc- feet down the hallway, adjacent George Hatalowich, a turnpike ville, represented a Uniontown- tions of his superior — he was to the chief’s office. There, the official who was charged in based district from 1979 to 1994. the former chief of staff for Mr. bundles are recorded in a spread- the case. The jurors state that, He served in the state House Mellow — rather than orches- sheet and then taken by patrol “Commissioner J. William Lin- from 1973 to 1978. He was suc- trating any of the activities that car to the city’s Finance Depart- coln testified before the grand ceeded as Democratic leader in drew the turnpike prosecution. ment, located in the City-County jury pursuant to a grant of the Senate by Mr. Mellow, who Building on Grant Street. immunity. Commissioner Lin- was indicted in the cash-for- Politics Editor James An employee in the Finance coln admitted that he received contracts scheme. O’Toole: jotoole@post-gazette. Department, accompanied by a HAPPY SUMMER, the gift certificates and failed In the conclusion of its report com or 412-263-1562. police officer, deposits the checks to report them on his annual the grand jury found that the Statement of Financial Inter- turnpike commission had been ests.” “corrupted by improper politi- HEALTHY FUN! 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Tom Corbett, the for- contributions to designated and most comfortable leather furniture. programs at mer state senate Democratic public officials, and political leader said, “Given the addi- organizations, by private ven- Our Big Mess Sale. Ycamps.org tional personal stress over the dors and their consultants who events of the past two weeks, have sought and been rewarded Going on now and my already difficult battle with multimillion-dollar Turn- with maintaining my health, pike contracts, have tainted at PerLora Leather. I am no longer able to perform and thoroughly corrupted the Every child deserves a the duties required of a mem- system.” ber of the commission. It is on In his resignation letter, summer to remember. this note that I end my 40-year Mr. Lincoln said that, “I am Financial assistance is available for day camps and overnight camps. Lowest Subaru Inquire at a Y near you. Prices. PERIOD. Get ready for summer. PAY NO FEE FOR DAY CAMP REGISTRATION ! 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