Pocono News Section

Feds Charge Cordaro, Munchak with Corruption

Feds Charge Cordaro, Munchak with Corruption - Tuesday, March 16, 2010 at 04:04AM EST

Reported by: Eyewitness News
Tuesday March 16 2010
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SCRANTON, LACKAWANNA COUNTY -- The U. S. Attorney, IRS & FBI have announced the indictment of current Lackawanna County Minority Commissioner A. J. Munchak & former commissioner Bob Cordaro on federal corruption charges.

The 56-page indictment includes 40 counts against both Munchak and Cordaro and most of the charges stem from their time as majority commissioners beginning in early 2004.

The charges include racketeering, fraud, extortion, bribery and federal tax violations. The feds say both men are guilty of "improper actions" and received hundreds of thousands of dollars in illegal payments and benefit as commissioners. Investigators say the two each profited at least $450,000 from their positions.

Cordaro also faces charges of money laundering and conspiracy. He faces a maximum of 364 years in prison and fines of $7.75 million dollars. Munchak faces up to 193 years in prison and $3.25 million dollars in fines.

The investigation centered on both mens' roles in the new terminal built at the Wilkes-Barre/Scranton Airport, the Lackawanna County 9-1-1 center, renovations at the Lackawanna County Courthouse, and dealings with the county-owned baseball stadium and franchise. Investigators say both received kickbacks from the projects.

Cordaro allegedly accepted a trip to the Playboy mansion, a trip to Monte Carlo and five tickets to a Major League Baseball playoff tickets on separate occasions from contractors with the county or those who where seeking county contracts.

The information was released by the U. S. Attorney's office at press conference this afternoon to brief the media on "developments in a public corruption probe in Lackawanna County."

The briefing included members of the U. S. Attorney's office, the FBI and the IRS. The last time these three groups came together for a press conference was January, 2009 when indictments were announced against Luzerne County ex-judges Mark Ciavarella and Michael Conahan for their part in a kids-for-cash juvenile detention scheme.

The I-Team told you late last year that the corruption probe appeared to be shifting from Luzerne County into Lackawanna County. Rumors have been swirling for months about possible indictments involving former Lackawanna County Commissioner Bob Cordaro.

Eyewitness News I-Team Lead Investigator Andy Mehalshick spoke with Cordaro's attorney, William Costopoulos, in mid-February. He said then he expected his client to be charged within several weeks. The I-Team also spoke with Cordaro Monday afternoon. When asked about possible charges, he responded, "I have no idea. I haven't heard anything."

A month earlier on January 20th, Commissioner A. J. Munchak was interviewed by the FBI. Upon leaving the federal courthouse that day his attorney told reporters that he did not expect any charges against his client, but did say that Munchak was one of several people interviewed by the FBI.

The I-Team also confirmed that the FBI subpoenaed records pertaining to the Wilkes-Barre/Scranton Airport's terminal renovation and from PNC Field, home of the Scranton/Wilkes-Barre Yankees. Cordaro was a big part of both the $45-million dollar airport project and was the lead negotiator in bringing the Yankees organization to Northeast PA. The FBI was also looking at renovations done at the Lackawanna County Courthouse.

The corruption probe, which began in Luzerne County in 2008, has now expanded into Lackawanna County. We're expecting to learn the latest on that part of the investigation Tuesday afternoon.

Of course check back with PAHomePage. com and Eyewitness News for the latest as we get it.