Former Harrisburg Mayor Stephen Reed spent millions of taxpayer dollars building a menagerie of obscure items — including a vampire-hunting kit and a buffalo head — as he ran a corrupt organization, Attorney General Kathleen Kane said during a news conference today.
Reed faces 499 counts in 17 categories:
- 2 counts of corrupt organizations
- 2 counts of dealing in proceeds of unlawful activities
- 2 counts of theft
- 20 counts of theft by receiving stolen property (second-degree felony)
- 20 counts of theft by unlawful taking or disposition (second-degree felony)
- 1 count of theft by deception (second-degree felony)
- 7 counts of bribery in official and political matters
- 29 counts of theft by receiving stolen property (third-degree felony)
- 29 counts of theft by unlawful taking or disposition (third-degree felony)
- 3 counts of theft of services
- 1 count of theft by deception (third-degree felony)
- 110 counts of theft by receiving stolen property (first-degree misdemeanor)
- 110 counts of theft by unlawful taking (first-degree misdemeanor)
- 158 counts of misapplication of entrusted property and property of government financial institutions
- 1 counts of deceptive business practices
- 3 counts of criminal solicitation
- 1 count of tampering with or fabricating physical evidence
Reed released a statement about the charges against him: “I am concerned that misperceptions and politics are intertwined in these accusations. I regard service as mayor to be a sacred trust and a calling to high and noble purpose. With the help of good staff and many people who love our city, major progress and projects were accomplished. I devoted my life to the city of Harrisburg, and I look forward to waging a vigorous fight against these charges.”
RELATED: Reactions to the Reed indictment
Here’s a summary of what Kane and her deputy attorneys general had to say during the news conference:
AG release calls this one of most disturbing cases of public corruption. #StephenReed
— Jason Scott (@JScottJournal) July 14, 2015
Grand jury found several instances where Reed used money available in muni debt market to create opportunities to raise money, divert funds
— Jason Scott (@JScottJournal) July 14, 2015
Used expenditure proceeds from public debt that touches several entities including authority, school district, HU and others
— Jason Scott (@JScottJournal) July 14, 2015
Evidence also that Reed made several attempts to sell at least 20 city owned firearms on consignment
— Jason Scott (@JScottJournal) July 14, 2015
Reed allegedly offered to bribe at least one city official, a former city council president, by offering him a position with the Senators
— Jason Scott (@JScottJournal) July 14, 2015
Kane talking about Reed’s tenure as mayor and illegal use of public money. pic.twitter.com/tKdp1QEA4J
— Jason Scott (@JScottJournal) July 14, 2015
Expect more charges in #stephenreed case
— Jason Scott (@JScottJournal) July 14, 2015
Reed was the mastermind and corruption occurred over 20 years, AG says
— Jason Scott (@JScottJournal) July 14, 2015
These charges are about accountability, Kane says. “It’s not about playing games with public debt and public issuances.”
— Jason Scott (@JScottJournal) July 14, 2015
Kane: this was a fraud on investors and the residents of Harrisburg who are paying for Reed’s schemes.
— Jason Scott (@JScottJournal) July 14, 2015
Why so long? It took 20 years to build this corrupt organization. It took two years to bring it all to light.
— Jason Scott (@JScottJournal) July 14, 2015
To recap, the Reed model was issuing public debt for one purpose and diverting some for another.
— Jason Scott (@JScottJournal) July 14, 2015
Agents raided the Reed’s home last month. Reed was arraigned on the charges this morning at District Justice William Wenner’s office and was released on $150,000 unsecured bail.
Harrisburg was declared financially distressed in 2010 and went into the state’s Act 47 program before eventually entering state receivership. The failed retrofit of the city’s incinerator was a leading cause of the financial collapse in Harrisburg.
The Business Journal will be updating this story throughout the day. Follow @JScottJournal on Twitter.
