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A former Pennsylvania mayor was indicted on 499 criminal charges

Jul 17, 2015, 02:56 IST

Harrisburg's former mayor Stephen Reed makes a statement to the press after his indictment on 499 criminal charges.Youtube / Pennlive Videos

In what Pennsylvania Attorney General Kathleen G. Kane is calling "one of the most disturbing cases of public corruption" that her office has ever investigated, former Harrisburg, Pennsylvania mayor Stephen Reed was indicted Tuesday on 499 criminal charges, including corruption, theft, bribery, and using public money to illicitly obtain antiques and other memorabilia.

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Reed is accused of using several pet projects to siphon money from Harrisburg, which made history by going bankrupt in 2013 and becoming the first ever city charged with securities fraud after Reed misrepresented the city's finances.

Reed's pet project included a bungled attempt to turn Harrisburg into a museum destination by creating a third museum in the city of about 50,000 residents. The museum Reed proposed would be Wild West themed, which is completely incongruous with Harrisburg's northeastern setting, or its civic needs.

The museum, which Harrisburg's current mayor called a "monument to corruption," is due to close. And the artifacts, many of which wound up in Reed's home, are to be sold at a considerable loss to the city. Agents from the Pennsylvania Attorney General's office had raided Reed's home in June and carted away antiques and boxes in an investigation tied to a secret grand jury proceeding.

The Pennsylvania Attorney General's website has photographs of the confiscated artifacts:

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Pennsylvania Attorney General

In a statement, Reed said, "I regard service as mayor to be a sacred trust and a calling to high and noble purpose," adding that he looks "forward to waging a vigorous fight against these charges."

The charges, as enumerated by the Pennsylvania Attorney General are as follows:

  • 2 counts of corrupt organizations (Felony).
  • 2 counts of dealing in proceeds of unlawful activities (Felony).
  • 2 counts of theft by deception (Felony).
  • 20 counts of theft by receiving stolen property (Felony).
  • 20 counts of theft by unlawful taking or disposition (Felony).
  • 1 count of theft by deception (Felony).
  • 7 counts of bribery in official and political matters (Felony).
  • 29 counts of theft by receiving stolen property (Felony).
  • 29 counts of theft by unlawful taking or disposition (Felony).
  • 3 counts of theft of services (Felony).
  • 1 count of theft by deception (Felony).
  • 110 counts of theft by receiving stolen property (Misdemenor).
  • 110 counts of theft by unlawful taking or disposition (Misdemenor).
  • 158 counts of misapplication of entrusted property and property of government or financial institutions (Misdemenor).
  • 1 count of deceptive business practices (Misdemenor).
  • 3 counts of criminal solicitation (Misdemenor).
  • 1 count of tampering with or fabricating physical evidence (Misdemeanor).

Pennlive.com reports that Reed, who was mayor of Harrisburg from 1982 to 2010, is currently free on a $150,000 unsecured bail, which will not require him to pay anything unless he misses his first court date.

For the past two years, judicial sources told Reuters, a state grand jury had been meeting in Pittsburgh to explore alleged financial misdeeds that in 2011 led to the financial downfall of Harrisburg, which is currently in state receivership.

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Reed's lawyer, Allen Welch, could not be immediately reached for comment outside regular business hours.

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